# EDGAR Filing Document

**Accession Number:** 0001495584
**File Stem:** 0001437749-26-010331
**Filing Date:** 2026-3
**Character Count:** 306726
**Document Hash:** c7fe9045c48c8ef5d7807f4634b7ad48
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-010331.hdr.sgml**: 20260330

**ACCESSION NUMBER**: 0001437749-26-010331

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260330

**DATE AS OF CHANGE**: 20260330

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Firsthand Technology Value Fund, Inc.
- **CENTRAL INDEX KEY:** 0001495584

**ORGANIZATION NAME:**
- **EIN:** 273008946
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-00830
- **FILM NUMBER:** 26813511

**BUSINESS ADDRESS:**
- **STREET 1:** 150 ALMADEN BLVD.
- **STREET 2:** SUITE 1250
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95113
- **BUSINESS PHONE:** 408-886-7096

**MAIL ADDRESS:**
- **STREET 1:** 150 ALMADEN BLVD.
- **STREET 2:** SUITE 1250
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95113

?xml version='1.0' encoding='ASCII'? sccv20251231_10k.htm

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**UNITED STATES**

 **SECURITIES AND EXCHANGE COMMISSION**

 **Washington, D.C. 20549** 

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**Form 10-K**

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**(Mark One)**

**☒** **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended December 31, 2025

or

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from to

Commission file number: 814-00830

**Firsthand Technology Value Fund, Inc.** 

***(Exact name of registrant as specified in its charter)*** 

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| | |
|:---|:---|
| **Maryland**<br> ***(State or other jurisdiction of***<br> ***incorporation or organization)*** | **27-3008946** <br> ***(I.R.S. Employer***<br> ***Identification No.)*** |

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**150 Almaden Boulevard, Suite 1250** 

 **San Jose, California 95113**

 ***(Address and zip code of principal executive offices)***

**(408) 886-7096** 

 ***(Registrant***'***s telephone number, including area code)*** 

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**Securities registered pursuant to Section 12(b) of the Act:** 

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| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| **Common Stock, $0.001 par value** | **The NASDAQ Global Market** |

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**Securities registered pursuant to Section 12(g) of the Act:**

 **None** 

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp;☐ Yes &nbsp;&nbsp;&nbsp;&nbsp;☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;☐ Yes &nbsp;&nbsp;&nbsp;&nbsp;☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;☒Yes &nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒Yes &nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in the definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ | Smaller reporting company ☐ |
| Emerging growth company ☐ |  |  |  |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).&nbsp;&nbsp;&nbsp;&nbsp;☐Yes &nbsp;&nbsp;&nbsp;&nbsp;☒ No

The aggregate market value of the Common Stock held by non-affiliates of the registrant as of December 31, 2025 was approximately $84,000 (computed using the closing price of $0.02 per share of Common Stock on December 31, 2025, as reported by OTC Markets Group.

As of March 1, 2026, Firsthand Technology Value Fund had 6,892,540 shares of common stock, par value $0.001 per share, outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE** 

Portions of the registrant's definitive proxy statement prepared in connection with the Annual Meeting of Stockholders to be held in 2026 are incorporated by reference in Part III of this Form 10-K.

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [**<u>PART I</u>**](#Part) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 1. Business</u>](#item1) | <u>[2](#item1)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 1A. Risk Factors</u>](#item1a) | [16](#item1a) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 1B. Unresolved Staff Comments</u>](#item1b) | [22](#item1b) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 1C.</u>](#item1c)<u>[Cybersecurity](#item1b)</u> | [23](#item1c) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 2. Properties</u>](#item2) | [24](#item2) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 3. Legal Proceedings</u>](#item3) | [24](#item3) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 4. Mine Safety Disclosures</u>](#item4) | [24](#item4) |
| [**<u>PART II</u>**](#part2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities</u>](#item5) | [24](#item5) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 6. Selected Financial Data</u>](#item6) | [25](#item6) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item7) | [28](#item7) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 7A. Quantitative And Qualitative Disclosures About Market Risk</u>](#item7a) | [38](#item7a) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 8. Financial Statements and Supplementary Data</u>](#item8) | [41](#item8) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 9. Changes In And Disagreements With Accountants On Accounting And Financial Disclosure</u>](#item9) | [78](#item9) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 9A. Controls and Procedures</u>](#item9a) | [78](#item9a) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 9B. Other Information</u>](#item9b) | [79](#item9b) |
| [**<u>Part III</u>**](#part3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 10. Directors, Executives Officers And Corporate Governance</u>](#item10) | [79](#item10) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 11. Executive Compensation</u>](#item11) | [79](#item11) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item12) | [79](#item12) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 13. Certain Relationships and Related Transactions, and Director Independence</u>](#item13) | [80](#item13) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 14. Principal Accountant Fees and Services</u>](#item14) | [80](#item14) |
| [**<u>Part IV</u>**](#part4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>Item 15. Exhibits, Financial Statements Schedules</u>](#item15) | [80](#item15) |

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PART I

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| | |
|:---|:---|
| **Item 1.** | **Business**  |

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FORWARD LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements, which relate to future events or our future performance or financial condition. We use words such as "anticipates," "believes," "expects," "plans," "will," "may," "continues," "seeks," "likely," "intends," and similar expressions to identify forward-looking statements. The forward-looking statements contained in this Annual Report on Form 10-K involve risks and uncertainties, including forward-looking statements as to:

● our future operating results,

● our business prospects and the prospects of our prospective portfolio companies,

● the impact of investments that we expect to make,

● our contractual arrangements and relationships with third parties,

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

● the ability of our prospective portfolio companies to achieve their objectives,

● our expected financings and investments,

● the adequacy of our cash resources and working capital, and

● the timing of cash flows, if any, from the operations of our prospective portfolio companies.

Our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in "Risk Factors" and elsewhere in this Annual Report on Form 10-K. In addition, several factors that could materially affect our actual results are the ability of the portfolio companies in which we invest to achieve their objectives; our ability to source favorable private investments; changes in the securities markets, especially the markets for technology companies including those that may be early stage or micro-cap companies; the dependence of our future success of the general economy and its impact on the industries in which we invest and other factors discussed in our periodic filings with the Securities and Exchange Commission (the "SEC").

Unpredictable or unknown factors could also have material adverse effects on us. Since our actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements, we cannot give any assurance that any of the events anticipated by the forward-looking statements will occur, or, if any of them do, what impact they will have on our results of operations and financial condition. All forward-looking statements included in this Annual Report on Form 10-K are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements or the risk factors contained in this Annual Report on Form 10-K, whether as a result of new information, future events or otherwise, except as may be required under the federal securities laws. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC.

**GENERAL** 

Firsthand Technology Value Fund, Inc. ("we," "us," "our," the "Company", the "Fund," or "SVVC") is an externally managed, closed-end, non-diversified management investment company organized as a Maryland corporation that has elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). As such, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70 percent 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 a RIC and will be taxed as a C corporation for tax purposes. Firsthand Capital Management, Inc. (the "Investment Adviser", the "Adviser", or "FCM") serves as our investment adviser and manages the investment process on a daily basis.

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We were incorporated under the Maryland General Corporation Law in April 2010 and acquired our initial portfolio of securities through the reorganization (the "Reorganization") into us of Firsthand Technology Value Fund ("TVF"), an open-end mutual fund and a series of Firsthand Funds, which is a Delaware statutory trust. The reorganization was completed on April 15, 2011 and we commenced operations on April 18, 2011.

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 percent of our total assets for investment purposes in technology companies. We consider technology companies to be those companies that derive at least 50 percent of their revenues from products and/or services within the information technology sector and 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 percent of our assets in privately held companies and public companies with market capitalizations 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 may also invest in micro-cap publicly traded companies. In addition, we may invest up to 30% 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. 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.

Neither our investments nor an investment in us are intended to constitute a balanced investment program. We expect to be risk-seeking rather than risk-averse in our investment approach. There is no assurance that our investment objective will be achieved.

We invest a substantial portion of our assets in securities that we consider to be private venture capital equity investments. These private venture capital equity investments usually do not pay interest or dividends and usually are subject to legal or contractual restrictions on resale that may adversely affect the liquidity and marketability of such securities. We expect to make speculative venture capital investments with limited marketability and a greater risk of investment loss than less-speculative investments. We are not limited by the diversification requirements applicable to a regulated investment company ("RIC"), which means that we may commit all of our assets to only a few investments.

Subject to continuing to meet the compliance tests applicable to BDCs, there are no limitations on the types of securities or other assets in which we may invest. Investments may include the following:

● Venture capital investments, whether in corporate, partnership, or other form, including development-stage or start-up entities;

● Equity, equity-related securities (including options and warrants), and debt with equity features from either private or public issuers;

● Debt obligations of all types having varying terms with respect to security or credit support, subordination, purchase price, interest payments, and maturity;

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● Foreign securities;

● Intellectual property or patents or research and development in technology or product development that may lead to patents or other marketable technology; and

● Miscellaneous investments.

The table below provides a summary of our investments as of December 31, 2025.

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| | | |
|:---|:---|:---|
| **INVESTMENT** | **BUSINESS DESCRIPTION** | **FAIR VALUE<sup>1</sup>** |
| Fidelity Investments Money Market Treasury Portfolio - Class I <sup>2</sup> | Investment Company | $56271 |
| IntraOp Medical Corp. | Medical Devices | 1523 |
| Lyncean Technologies, Inc. | Semiconductor Equipment | 0 |
| Revasum, Inc. | Semiconductor Equipment | 0 |
| UCT Coatings, Inc. | Advanced Materials | 167642 |
| Wrightspeed, Inc. | Automotive | 0 |

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| | |
|:---|:---|
| *1* | *Fair value for our private company holdings was determined in good faith by our Board of Directors (the "Board" or "Board of Directors") on December 31, 2025.* |
| *<sup>2</sup>* | *Public company.* |

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**INVESTMENTS AND STRATEGIES** 

The following is a summary description of the types of assets in which we may invest, the investment strategies we may use, and the attendant risks associated with our investments and strategies.

**VENTURE CAPITAL INVESTMENTS** 

We define venture capital as the money and resources made available to privately held start-up firms and privately held and publicly traded small businesses with exceptional growth potential. These businesses can range in stage from pre-revenue to generating positive cash flow. Most of our long-term venture capital investments are in thinly capitalized, unproven, small companies focused on commercializing risky technologies. These businesses also tend to lack management depth, have limited or no history of operations, and have not attained profitability. Because of the speculative nature of these investments, these securities have a significantly greater risk of loss than traditional investment securities. Some of our venture capital investments will never realize their potential, and some will be unprofitable or result in the complete loss of our investment.

We acquire our investments through direct investments in private companies, negotiations with selling shareholders, and in organized secondary marketplaces for private securities. Our current focus is on investing in late-stage private companies, particularly those with potential for near-term realizations by way of initial public offering ("IPO") or acquisition.

In connection with our venture capital investments, we may participate in providing a variety of services to our portfolio companies, including the following:

● Recruiting management,

● Formulating operating strategies,

● Formulating intellectual property strategies,

● Assisting in financial planning,

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● Providing management in the initial start-up stages, and

● Establishing corporate goals.

We may assist in raising additional capital for these companies from other potential investors and may subordinate our own investment to that of other investors. We typically find it necessary or appropriate to provide additional capital of our own. We may introduce these companies to potential joint venture partners, suppliers, and customers. In addition, we may assist in establishing relationships with investment bankers and other professionals. We may also assist with mergers and acquisitions ("M&As"). We do not currently derive income from these companies for the performance of any of the above services.

We may control, be represented on, or have observer rights on the board of directors of a portfolio company through one or more of our officers or directors, who may also serve as officers of the portfolio company. We indemnify our officers and directors for serving on the board of directors or as officers of portfolio companies, which exposes us to additional risks. Particularly during the early stages of an investment, we may, in rare instances, in effect be conducting the operations of the portfolio company. Our goal is to assist each company in establishing its own independent capitalization, management, and board of directors. As a venture capital-backed company emerges from the developmental stage with greater management depth and experience, we expect that our role in the portfolio company's operations will diminish.

**EQUITY, EQUITY-RELATED SECURITIES AND DEBT WITH EQUITY FEATURES** 

We may invest in equity, equity-related securities, and debt with equity features. These securities include common stock, preferred stock, debt instruments convertible into common or preferred stock, limited partnership interests, other beneficial ownership interests and warrants, options, or other rights to acquire any of the foregoing.

We may make investments in companies with operating histories that are unprofitable or marginally profitable, that have negative net worth, or that are involved in bankruptcy or reorganization proceedings. These investments would involve businesses that management believes have potential through the infusion of additional capital and management assistance. In addition, we may make investments in connection with the acquisition or divestiture of companies or divisions of companies. There is a significantly greater risk of loss with these types of securities than is the case with traditional investment securities.

Warrants, options, and convertible or exchangeable securities generally give the investor the right to acquire specified equity securities of an issuer at a specified price during a specified period or on a specified date. Warrants and options fluctuate in value in relation to the value of the underlying security and the remaining life of the warrant or option, while convertible or exchangeable securities fluctuate in value both in relation to the intrinsic value of the security without the conversion or exchange feature and in relation to the value of the conversion or exchange feature, which is like a warrant or an option. When we invest in these securities, we incur the risk that the option feature will expire worthless, thereby either eliminating or diminishing the value of our investment.

Most of our current portfolio company investments are in the equity securities of private companies. Investments in equity securities of private companies often involve securities that are restricted as to sale and cannot be sold in the open market without registration under the Securities Act of 1933, as amended or pursuant to a specific exemption from these registrations. Opportunities for sale are more limited than in the case of marketable securities, although these investments may be purchased at more advantageous prices and may offer attractive investment opportunities. Even if one of our portfolio companies completes an IPO, we are typically subject to a lock-up agreement for 180 days, and the stock price may decline substantially before we are free to sell.

We may also invest in publicly traded securities of whatever nature, including relatively small, emerging growth companies that management believes have long-term growth potential. These investments may be through open-market transactions or through private investments in public equity ("PIPE transactions"). Securities purchased in PIPE transactions are typically subject to a lock-up agreement for 180 days, or are issued as unregistered securities that are not freely available for six months.

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Even if we have registration rights to make our investments in privately held and publicly traded companies more marketable, a considerable amount of time may elapse between a decision to sell or register the securities for sale and the time when we are able to sell the securities. The prices obtainable upon sale may be adversely affected by market conditions or negative conditions affecting the issuer during the intervening time. We may elect to hold formerly restricted securities after they have become freely marketable, either because they remain relatively illiquid or because we believe that they may appreciate in value, during which holding period they may decline in value and be especially volatile as unseasoned securities. If we need funds for investment or working capital purposes, we might need to sell marketable securities at disadvantageous times or prices.

**DEBT OBLIGATIONS** 

We may hold debt securities, including in privately held and thinly traded public companies, for income and as a reserve pending more speculative investments. Debt obligations may include U.S. government and agency securities, commercial paper, bankers' acceptances, receivables or other asset-based financing, notes, bonds, debentures, or other debt obligations of any nature and repurchase agreements related to these securities. These obligations may have varying terms with respect to security or credit support; subordination; purchase price; interest payments; and maturity from private, public, or governmental issuers of any type located anywhere in the world. We may invest in debt obligations of companies with operating histories that are unprofitable or marginally profitable, that have negative net worth or are involved in bankruptcy or reorganization proceedings, or that are start-up or development-stage entities. In addition, we may participate in the acquisition or divestiture of companies or divisions of companies through issuance or receipt of debt obligations. As of December 31, 2025, the debt obligations held in our portfolio consisted of convertible bridge notes and term notes. These notes generally do not generate cash payments to us, nor are they held for that purpose. Our convertible bridge notes and the interest accrued thereon are held for the purpose of potential conversion into equity at a future date.

Our investments in debt obligations may be of varying quality, including non-rated, unsecured, highly speculative debt investments with limited marketability. Investments in lower-rated and non-rated securities, commonly referred to as "junk bonds," including our venture debt investments, are subject to special risks, including a greater risk of loss of principal and non-payment of interest. Generally, lower-rated securities offer a higher return potential than higher-rated securities, but involve greater volatility of price and greater risk of loss of income and principal, including the possibility of default or bankruptcy of the issuers of these securities. Lower-rated securities and comparable non-rated securities will likely have large uncertainties or major risk exposure to adverse conditions and are predominantly speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligation. The occurrence of adverse conditions and uncertainties to issuers of lower-rated securities would likely reduce the value of lower-rated securities held by us, with a commensurate effect on the value of our shares.

The markets in which lower-rated securities or comparable non-rated securities are traded generally are more limited than those in which higher-rated securities are traded. The existence of limited markets for these securities may restrict our ability to obtain accurate market quotations for the purposes of valuing lower-rated or non-rated securities and calculating net asset value or to sell securities at their fair value. Any economic downturn could adversely affect the ability of issuers' lower-rated securities to repay principal and pay interest thereon. The market values of lower-rated and non-rated securities also tend to be more sensitive to individual corporate developments and changes in economic conditions than higher-rated securities. In addition, lower-rated securities and comparable non- rated securities generally present a higher degree of credit risk. Issuers of lower-rated securities and comparable non-rated securities are often highly leveraged and may not have more traditional methods of financing available to them, so that their ability to service their debt obligations during an economic downturn or during sustained periods of rising interest rates may be impaired. The risk of loss owing to default by these issuers is significantly greater because lower-rated securities and comparable non-rated securities generally are unsecured and frequently are subordinated to the prior payment of senior indebtedness. We may incur additional expenses to the extent that we are required to seek recovery upon a default in the payment of principal or interest on our portfolio holdings.

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The market value of investments in debt securities that carry no equity participation usually reflects yields generally available on securities of similar quality and type at the time purchased. When interest rates decline, the market value of a debt portfolio already invested at higher yields can be expected to rise if the securities are protected against early call. Similarly, when interest rates increase, the market value of a debt portfolio already invested at lower yields can be expected to decline. Deterioration in credit quality also generally causes a decline in market value of the security, while an improvement in credit quality generally leads to increased value.

**FOREIGN SECURITIES** 

We may make investments in securities of issuers whose principal operations are conducted outside the United States, and whose earnings and securities are stated in foreign currency. In order to maintain our status as a BDC, our investments in non-qualifying assets, including the securities of companies organized outside the U.S., would be limited to 30 percent of our assets.

Compared to otherwise comparable investments in securities of U.S. issuers, currency exchange risk of securities of foreign issuers is a significant variable. The value of these investments to us will vary with the relation of the currency in which they are denominated to the U.S. dollar, as well as with intrinsic elements of value such as credit risk, interest rates, and performance of the issuer. Investments in foreign securities also involve risks relating to economic and political developments, including nationalization, expropriation of assets, currency exchange freezes, and local recession. Securities of many foreign issuers are less liquid and more volatile than those of comparable U.S. issuers. Interest and dividend income and capital gains on our foreign securities may be subject to withholding and other taxes that may not be recoverable by us. We may seek to hedge all or part of the currency risk of our investments in foreign securities through the use of futures, options, and forward currency purchases or sales.

**INTELLECTUAL PROPERTY** 

We believe there is a role for organizations that can assist in technology transfer. Scientists and institutions that develop and patent intellectual property perceive the need for and rewards of entrepreneurial commercialization of their inventions. Our form of investment may be:

● Funding research and development in the development of a technology,

● Obtaining licensing rights to intellectual property or patents,

● Acquiring intellectual property or patents, or

● Forming and funding companies or joint ventures to commercialize further intellectual property.

Income from our investments in intellectual property or its development may take the form of participation in licensing or royalty income, fee income, or some other form of remuneration. Investment in developmental intellectual property rights involves a high degree of risk that can result in the loss of our entire investment as well as additional risks, including uncertainties as to the valuation of an investment and potential difficulty in liquidating an investment. Further, investments in intellectual property generally require investor patience, as investment return may be realized only after or over a long period. At some point during the commercialization of a technology, our investment may be transformed into ownership of securities of a development-stage or start-up company, as discussed under "Venture Capital Investments" above.

**REPURCHASE OF SHARES** 

Our shareholders do not have the right to compel us to redeem our shares. We may, however, purchase outstanding shares of our common stock from time to time, subject to approval of our Board of Directors and in compliance with applicable corporate and securities laws. The Board of Directors may authorize public open-market purchases or privately negotiated transactions from time to time when deemed to be in the best interest of our shareholders. Public purchases would be conducted only after notification to shareholders through a press release or other means. The Board of Directors may or may not decide to undertake any purchases of our common stock.

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Our repurchases of our common shares would decrease our total assets and would therefore likely have the effect of increasing our expense ratio. Subject to our investment restrictions, we may borrow money to finance the repurchase of our common stock in the open market pursuant to any tender offer. Interest on any borrowings to finance share repurchase transactions would reduce our net assets. If, because of market fluctuations or other reasons, the value of our assets falls below the required 1940 Act coverage requirements, we may have to reduce our borrowed debt to the extent necessary to comply with the requirement. To achieve a reduction, it is possible that we may be required to sell portfolio securities at inopportune times when it may be disadvantageous to do so.

**PORTFOLIO COMPANY TURNOVER** 

Changes with respect to portfolio companies will be made as our management considers necessary in seeking to achieve our investment objective. The rate of portfolio turnover will not be treated as a limiting or relevant factor when circumstances exist that are considered by management to make portfolio changes advisable.

Although we expect that many of our investments will be relatively long term in nature, we may make changes in particular portfolio holdings whenever it is considered that an investment no longer has substantial growth potential or has reached its anticipated level of performance, or (especially when cash is not otherwise available) that another investment appears to have a relatively greater opportunity for capital appreciation. We may also make general portfolio changes to increase our cash to position us in a defensive posture. We may make portfolio changes without regard to the length of time we have held an investment, or whether a sale results in profit or loss, or whether a purchase results in the reacquisition of an investment that we may have only recently sold. Our investments in privately held companies are illiquid, which limits portfolio turnover. The portfolio turnover rate may vary greatly during a year as well as from year to year and may also be affected by cash requirements.

**COMPETITION** 

We compete for investments with a number of BDCs and other investment funds (including private equity funds and venture capital funds), reverse merger and special purpose acquisition company ("SPACs") sponsors, investment bankers that underwrite initial public offerings, hedge funds that invest in PIPEs, traditional financial services companies such as commercial banks, and other sources of financing. Many of these entities have greater financial and managerial resources than we do. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act will impose on us as a BDC. We believe we compete with these entities primarily on the basis of our willingness to make smaller, non-controlling investments, the experience and contacts of our investment professionals within our targeted industries, our responsive and efficient investment analysis and decision-making processes, and the investment terms that we offer. We do not seek to compete primarily on the deal terms we offer to potential portfolio companies. We use the industry information available to FCM to assess investment risks and determine appropriate pricing for our investments in portfolio companies. In addition, we believe that the relationships of Kevin Landis (FCM's President and Chief Investment Officer), and the other senior investment professionals FCM retains, enable us to learn about, and compete effectively for, financing opportunities with attractive companies in the industries in which we seek to invest. For additional information concerning the competitive risks we face, see "Risk Factors—Risks relating to our business and structure—We operate in a highly competitive market for investment opportunities."

**REGULATION** 

The Small Business Investment Incentive Act of 1980 added the provisions of the 1940 Act applicable only to BDCs. BDCs are a special type of investment company. After a company files its election to be treated as a BDC, it may not withdraw its election without first obtaining the approval of holders of a majority of its outstanding voting securities. The following is a brief description of the 1940 Act provisions applicable to BDCs, qualified in its entirety by reference to the full text of the 1940 Act and the rules issued thereunder by the Securities and Exchange Commission ("SEC").

Generally, to be eligible to elect BDC status, a company must primarily engage in the business of furnishing capital and making significant managerial assistance available to companies that do not have ready access to capital through conventional financial channels. Such companies that satisfy certain additional criteria described below are termed "eligible portfolio companies." In general, in order to qualify as a BDC, a company must: (i) be a domestic company; (ii) have registered a class of its securities pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); (iii) operate for the purpose of investing in the securities of certain types of portfolio companies, including early-stage or emerging companies and businesses suffering or just recovering from financial distress (see following paragraph); (iv) make available significant managerial assistance to such portfolio companies; and (v) file a proper notice of election with the SEC.

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An eligible portfolio company generally is a domestic company that is not an investment company or a company excluded from investment company status pursuant to exclusions for certain types of financial companies (such as brokerage firms, banks, insurance companies, and investment banking firms) and that: (i) has a fully diluted market capitalization of less than $250 million and has a class of equity securities listed on a national securities exchange, (ii) does not have a class of securities listed on a national securities exchange, or (iii) is controlled by the BDC by itself or together with others (control under the 1940 Act is presumed to exist where a person owns at least 25 percent of the outstanding voting securities of the portfolio company) and the BDC has a representative on the Board of Directors of such company.

We may be examined periodically by the SEC for compliance with the 1940 Act.

As with other companies regulated by the 1940 Act, a BDC must adhere to certain substantive regulatory requirements. A majority of our directors must be persons who are not "interested persons", as that term is defined in the 1940 Act. Additionally, we are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the BDC. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our shareholders arising from willful malfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of such person's office.

The 1940 Act provides that we may not make an investment in non-qualifying assets unless at the time at least 70 percent of the value of our total assets (measured as of the date of our most recently filed financial statements) consists of qualifying assets. Qualifying assets include: (i) securities of eligible portfolio companies; (ii) securities of certain companies that were eligible portfolio companies at the time we initially acquired their securities and in which we retain a substantial interest; (iii) securities of certain controlled companies; (iv) securities of certain bankrupt, insolvent, or distressed companies; (v) securities received in exchange for or distributed in or with respect to any of the foregoing; and (vi) cash items, U.S. government securities, and high quality short-term debt. The SEC has adopted a rule permitting a BDC to invest its cash in certain money market funds. The 1940 Act also places restrictions on the nature of the transactions in which, and the persons from whom, securities can be purchased in some instances in order for the securities to be considered qualifying assets.

We are permitted by the 1940 Act, under specified conditions, to issue multiple classes of debt and a single class of preferred stock if our asset coverage, as defined in the 1940 Act, is at least 200 percent after the issuance of the debt or the preferred stock (i.e., such senior securities may not be in excess of our net assets). Under specific conditions, we are also permitted by the 1940 Act to issue warrants.

Except under certain conditions, we may sell our securities at a price that is below the prevailing net asset value per share only during the 12-month period after (i) a majority of our directors and our disinterested directors have determined that such sale would be in the best interest of us and our stockholders, and (ii) the holders of a majority of our outstanding voting securities and the holders of a majority of our voting securities held by persons who are not affiliated persons of ours approve our ability to make such issuances. A majority of the disinterested directors must determine in good faith that the price of the securities being sold is not less than a price that closely approximates the market value of the securities, less any distribution discount or commission.

Certain transactions involving certain closely related persons of the Company, including its directors, officers, and employees, may require the prior approval of the SEC. However, the 1940 Act ordinarily does not restrict transactions between us and our portfolio companies.

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**TAX STATUS** 

We are subject to corporate income tax under state and federal law, including under Subchapter C of the Code. This is the same tax status as applies to ordinary operating corporations with publicly traded stock.

**INVESTMENT OPPORTUNITY** 

SVVC invests primarily in equity securities of private technology companies in the United States. We believe that the growth potential exhibited by private technology companies, including cleantech companies, creates an attractive investment environment for SVVC.

The last 25 years has been marked by dramatic changes in the initial public offering ("IPO") market. Since the dot-com bubble burst in 2000, emerging technology companies have often chosen to stay private longer. The combination of volatile equity markets, increased regulatory requirements (such as the Sarbanes-Oxley Act of 2002), and a lack of investment research coverage has made it less attractive for companies to access the public markets through an IPO. We believe the result is an environment with more opportunities to invest in relatively mature private companies, either directly via primary investments or by purchasing shares in the growing secondary market.

At the same time we believe there are a number of powerful trends creating opportunities for innovative companies and investors alike. The dramatic growth of social networking, cloud computing, and powerful, connected mobile computing devices has enabled new ways of communicating, doing business, and accessing information anytime, anywhere. The Company was established to benefit from convergence of exciting technologies and the growth of private investment opportunities.

**COMPETITIVE ADVANTAGES** 

We believe that we have the following competitive advantages over other capital providers in technology and cleantech companies:

**MANAGEMENT EXPERTISE** 

Kevin Landis, our Chief Executive Officer and Chief Financial Officer, has principal management responsibility for Firsthand Capital Management, Inc. as its owner, President and Chief Investment Officer. Mr. Landis has more than 30 years of experience in technology sector investing, and he intends to dedicate a substantial portion of his time to managing the Company. Mr. Landis controls FCM and is a trustee of Firsthand Funds and a director of the Company.

**DISCIPLINED INVESTMENT APPROACH** 

The Investment Adviser employs a disciplined approach in selecting investments. The Investment Adviser's investment philosophy focuses on ensuring that our investments have an appropriate return profile relative to risk. When market conditions make it difficult for us to invest according to our criteria, the Investment Adviser intends to be highly selective in deploying our capital. We believe this approach enables us to build an attractive investment portfolio that meets our return and value criteria over the long term.

We believe it is critical to conduct extensive due diligence on investment targets. In evaluating new investments we, through the Investment Adviser, conduct a rigorous due diligence process that draws from the Investment Adviser's investment experience, industry expertise, and network of contacts.

**FOCUSING ON INVESTMENTS THAT CAN GENERATE POSITIVE RISK-ADJUSTED RETURNS** 

The Investment Adviser seeks to maximize the potential for capital appreciation. In making investment decisions the Investment Adviser seeks to pursue and invest in companies that meet several of the following criteria:

● outstanding technology,

● barriers to entry (i.e., patents and other intellectual property rights),

● experienced management team,

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● established financial sponsors that have a history of creating value with portfolio companies,

● strong and competitive industry position, and

● viable exit strategy.

Assuming a potential investment meets most or all of our investment criteria, the Investment Adviser intends to be flexible in adopting transaction structures that address the needs of prospective portfolio companies and their owners. Our investment philosophy is focused on internal rates of return over the life of an investment. Given our investment criteria and due diligence process, we structure our investments so they correlate closely with the success of our portfolio companies.

**ABILITY TO SOURCE AND EVALUATE TRANSACTIONS THROUGH THE INVESTMENT ADVISER**'**S RESEARCH CAPABILITY AND ESTABLISHED NETWORK** 

FCM's investment management team has overseen investments in dozens of private companies across various industries while employed by FCM and its affiliates since 1994. We believe the expertise of the Investment Adviser's management team enables FCM to identify, assess, and structure investments successfully across all levels of a company's capital structure and to manage potential risk and return at all stages of the economic cycle.

We seek to identify potential investments both through active origination and through dialogue with numerous management teams, members of the financial community, and corporate partners with whom Mr. Landis has long-standing relationships. We believe that the team's broad network of contacts within the investment, commercial banking, private equity and investment management communities in combination with their strong reputation in investment management, enables us to attract well-positioned prospective portfolio companies.

**LONGER INVESTMENT HORIZON WITH ATTRACTIVE PUBLICLY TRADED MODEL** 

Unlike private equity and venture capital funds, we are not subject to standard periodic capital return requirements. Such requirements typically stipulate that funds raised by a private equity or venture capital fund, together with any capital gains on such invested funds, must be returned to investors after a pre-agreed time period. These provisions often force private equity and venture capital funds to seek returns on their investments through mergers, public equity offerings, or other liquidity events more quickly than they otherwise might, potentially resulting in both a lower overall return to investors and an adverse impact on their portfolio companies. While we are required to distribute substantially all realized gains, we believe that with our dividend reinvestment plan and our flexibility to make investments with a long-term view and without the capital return requirements of traditional private investment vehicles provide us with the opportunity to generate returns on invested capital and at the same time enable us to be a better long-term partner for our portfolio companies.

**INVESTMENTS** 

FCM seeks to create a diversified portfolio of equity securities by making initial investments of approximately $1 million to $10 million of capital, on average, in the securities of micro-cap public and private companies.

Our portfolio consists primarily of equity securities of private companies and cash and we expect that our portfolio will continue to consist primarily of, equity positions in private companies and cash. These investments include holdings in several private technology and cleantech companies. Moreover, we may acquire investments in the secondary market and, in analyzing such investments, we will employ the same analytical process as we use for our primary investments. For description of our current investments, see "Portfolio Investments."

We generally seek to invest in companies from the broad variety of industries in which the Investment Adviser has expertise. The following is a representative list of the industries in which we may elect to invest.

● Advanced Materials

● Advertising Technology

● Automotive

● Biofuels

● Cloud Computing

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● Computer Hardware

● Computer Peripherals

● Computer Software

● Electronic Components

● Energy Efficiency

● Fuel Cells

● Medical Devices

● Mobile Computing

● Semiconductors

● Social Networking

● Solar Photovoltaics

● Solid-state Lighting

● Telecommunications

● Water Purification

● Wearable Technology

● Wind-Generated Electricity

We may invest in other industries if we are presented with attractive opportunities.

We may on a limited basis purchase or sell options on indexes or securities. We may engage in these transactions to manage risks or otherwise protect the value of the portfolio, and to use these strategies to a limited extent on an opportunistic basis.

**INVESTMENT SELECTION** 

The Investment Adviser seeks to maximize the potential for capital appreciation.

**PROSPECTIVE PORTFOLIO COMPANY CHARACTERISTICS** 

We have identified several criteria that we believe are important in identifying and investing in prospective portfolio companies. These criteria provide general guidelines for our investment decisions; however, we caution you that no single portfolio company (or prospective portfolio company) will meet all of these criteria. Generally, we use our experience and access to market information generated to identify investment candidates and to structure investments quickly and effectively.

<u>Outstanding Technology</u> 

Our investment philosophy places a premium on identifying companies that have developed disruptive technologies, that is, technologies with the potential to dramatically alter the economics or performance of a particular type of product or service.

<u>Barriers to Entry</u> 

We believe having defensible barriers to entry, in the form of patents or other intellectual property rights, is critically important in technology industries, in which change happens very rapidly. We seek out companies that have secured protection of key technologies through patents, trademarks, or other means.

<u>Experienced management and established financial sponsor relationship</u> 

We generally require that our portfolio companies have an experienced management team. We also require the portfolio companies to have in place proper incentives to induce management to succeed and to act in concert with our interests as investors, including having significant equity interests. In addition, we focus our investments in companies backed by strong financial sponsors that have a history of creating value and with whom members of our investment adviser have an established relationship.

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<u>Strong and defensible competitive market position in industry</u> 

We seek to invest in target companies that have developed leading market positions within their respective markets and are well positioned to capitalize on growth opportunities. We seek companies that demonstrate significant competitive advantages versus their competitors, which should help to protect their market position and profitability.

<u>Viable exit strategy</u> 

We seek to invest in companies that we believe will provide a steady stream of cash flow to reinvest in their respective businesses. In addition, we also seek to invest in companies whose business models and expected future cash flows offer attractive exit possibilities. These companies include candidates for strategic acquisition by other industry participants and companies that may repay our investments through an initial public offering of common stock or another capital market transaction. In today's market environment, we believe that a strategic sale is more likely than an IPO for many of our portfolio companies, although IPOs cannot be ruled out. We believe that an acquisition by a strategic buyer is possible at any time for any of our companies.

**DUE DILIGENCE** 

We believe it is critical to conduct extensive due diligence on investment targets. In evaluating new investments, we, through the Investment Adviser, conduct a rigorous due diligence process that draws from the Investment Adviser's investment experience, industry expertise, and network of contacts. The Investment Adviser conducts extensive due diligence investigations in their investment activities. In conducting due diligence, the Investment Adviser uses publicly available information as well as information from its relationships with former and current management teams, consultants, competitors, and investment bankers.

Our due diligence typically includes:

● review of historical and prospective financial information;

● review of technology, product, and business plan;

● on-site visits;

● interviews with management, employees, customers, and vendors of the potential portfolio company;

● background checks; and

● research relating to the company's management, industry, markets, products and services, and competitors.

Upon the completion of due diligence, the Investment Adviser's investment committee determines whether to pursue the potential investment. Additional due diligence with respect to any investment may be conducted on our behalf by attorneys and accountants prior to the closing of the investment, as well as other outside consultants, experts, and/or advisers, as appropriate. To the extent unaffiliated, third-party consultants, experts, and/or advisers are used, we will be responsible for those expenses.

**INVESTMENT STRUCTURE** 

Once we have determined that a prospective portfolio company is suitable for investment, we work with the management of that company and its other capital providers to structure an investment. We negotiate among these parties to agree on how our investment is expected to perform relative to the other capital in the portfolio company's capital structure.

**MANAGERIAL ASSISTANCE** 

As a BDC, we offer, and must provide upon request, managerial assistance to certain of our portfolio companies. This assistance could involve, among other things, monitoring the operations of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies, and providing other organizational and financial guidance. We may receive fees for these services. FCM will provide such managerial assistance on our behalf to portfolio companies that request this assistance. For a description of relationships between us and our portfolio companies, please see "Portfolio Companies."

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**ONGOING RELATIONSHIPS WITH PORTFOLIO COMPANIES** 

<u>Monitoring</u> 

FCM monitors our portfolio companies on an ongoing basis. Specifically, FCM monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action for each company.

FCM has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

● Assessment of success in adhering to portfolio company's technology development, business plan and compliance with covenants;

● Periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements, and accomplishments;

● Comparisons to other portfolio companies in the industry, if any;

● Attendance at and participation in board meetings; and

● Review of monthly and quarterly financial statements and financial projections for portfolio companies.

<u>Valuation Process</u> 

The following is a description of the steps we take each quarter to determine the value of our portfolio. Investments for which market quotations are readily available are recorded in our financial statements at such market quotations. With respect to investments for which market quotations are not readily available, our Board of Directors undertakes a multi-step valuation process each quarter, as described below under "Determination of Net Asset Value." Currently, our Board of Directors solicits valuation recommendations from a third-party valuation firm on a quarterly basis.

We expect that all of our portfolio investments will be recorded at fair value as determined under the valuation process discussed above. As a result, there will be uncertainty with respect to the value of our portfolio investments.

**INVESTMENT MANAGEMENT AGREEMENT** 

**MANAGEMENT SERVICES** 

FCM has entered into an Investment Management Agreement (the "Investment Management Agreement") with us whereby FCM provides investment management services. Subject to the overall supervision of our Board of Directors, the Investment Adviser manages the day-to-day operations of, provides investment management services to, and serves as portfolio manager for us. Mr. Landis, FCM's President and Chief Investment Officer, has been primarily responsible for our portfolio management since our inception. Under the terms of the Investment Management Agreement, FCM will:

● determine the composition of our portfolio, the nature and timing of the changes to our portfolio, and the manner of implementing such changes;

● identify, evaluate and negotiate the structure of the investments we make (including performing due diligence on our prospective portfolio companies); and

● close and monitor the investments we make.

FCM's services under the Investment Management Agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired. FCM currently serves as investment manager to Firsthand Funds, a family of open-end mutual funds.

**INVESTMENT MANAGEMENT FEE** 

Pursuant to the Investment Management Agreement, we pay FCM a fee for investment management services consisting of two components—a base management fee and an incentive fee.

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The base management fee will be calculated at an annual rate of 2.00% of our gross assets. For services rendered under the Investment Management Agreement, the base management fee will be payable quarterly in arrears. The base management fee will be calculated based on the average of (1) the value of our gross assets at the end of the current calendar quarter and (2) the value of our gross assets at the end of the preceding calendar quarter; and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. Base management fees for any partial month or quarter will be pro-rated. The incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date), and equals 20% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fees.

Mathematically, the formula for computing the annual incentive fee can be written as:

![a1.jpg](a1.jpg)

For the purposes of calculating realized capital gains, the cost basis of each security acquired in the Reorganization shall be equal to the greater of the original purchase price of that security by Firsthand Funds or the fair market value of the security at the time of the Reorganization.

**EXAMPLE INCENTIVE FEE CALCULATION** 

**EXAMPLE: INCENTIVE FEE ON CAPITAL GAINS:** 

<u>Assumptions</u> 

Year 1 = no net realized capital gains or losses

Year 2 = $50,000 realized capital gains and $20,000 realized capital losses and unrealized capital depreciation. Capital gain incentive fee = 20% x (realized capital gains for year computed net of all realized capital losses and unrealized capital depreciation at year end)

<u>Calculation of Incentive Fee</u> 

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| | |
|:---|:---|
| Year 1 incentive fee | = 20% x (0)<br> = 0 (no incentive fee) |
| Year 2 incentive fee | = 20% x ($50,000 - $20,000) - 0<br> = 20% x $30,000<br> = $6,000 |

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**AVAILABLE INFORMATION** 

Additional information about us, including quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, are available free of charge on our website at www.firsthandtvf.com. Information on our website is not part of this Annual Report on Form 10-K.

**EMPLOYEES** 

We do not currently have any direct employees. Mr. Landis, our Chief Executive Officer, is the majority owner and Chief Investment Officer of the Investment Adviser. The Investment Adviser currently employs a staff of 5, including investment, legal, and administrative professionals.

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| | |
|:---|:---|
| **Item 1A.** | **Risk Factors**  |

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Investing in the Company involves a number of significant risks relating to our business and investment objective. As a result, there can be no assurance that we will achieve our investment objective.

**RISKS RELATING TO OUR BUSINESS AND STRUCTURE** 

**WE ARE DEPENDENT UPON FCM**'**S KEY PERSONNEL FOR OUR FUTURE SUCCESS.** 

If the Investment Adviser is unable to hire and retain qualified personnel, or if it loses any key member of its management team, our ability to achieve our investment objective could be significantly impaired.

We depend on the diligence, skill, and access to the network of business contacts of the management of FCM, including Mr. Landis, the owner, President and Chief Executive Officer of FCM. We also depend, to a significant extent, on FCM's access to the investment information and deal flow generated by Mr. Landis and any other investment professionals of FCM. Mr. Landis and other management personnel of FCM evaluate, negotiate, structure, close, and monitor our investments. Our future success depends on the continued service of Mr. Landis and other management personnel of FCM. The resignation of FCM, or the departure of Mr. Landis or any other key managers hired by FCM could have a material adverse effect on our ability to achieve our investment objective. In addition, we can offer no assurance that FCM will remain the Investment Adviser.

**THE INVESTMENT ADVISER AND ITS MANAGEMENT MANAGE OTHER FUNDS.** 

In addition to managing SVVC, FCM is also the investment adviser to two open-end mutual funds in the Firsthand Funds family: Firsthand Technology Opportunities Fund and Firsthand Alternative Energy Fund. Mr. Landis, who has primary responsibility for SVVC, also serves as portfolio manager of Firsthand Alternative Energy Fund and Firsthand Technology Opportunities Fund. This may reduce the time FCM and its investment management team have to devote to the affairs of SVVC. The other funds managed by FCM have stated investment objectives which differ from our own. Accordingly, there may be times when the interests of FCM's management team differ from our interests.

**THE INVESTMENT ADVISER MAY NOT BE ABLE TO ACHIEVE THE SAME OR SIMILAR RETURNS TO THOSE ACHIEVED BY ITS INVESTMENT PROFESSIONALS WHILE THEY WERE EMPLOYED AT PRIOR JOBS.** 

Although Mr. Landis has been a portfolio manager of a number of open-end mutual funds in the Firsthand Funds family, Mr. Landis's track record and achievements are not necessarily indicative of future results that will be achieved by FCM on our behalf. FCM and its investment professionals' skills and expertise may not be as well suited to our objectives, strategies and requirements as they are for certain other funds. FCM and many of its investment professionals are relatively inexperienced in managing closed end funds and our investment objectives, policies and regulatory limitations differ substantially from the other funds FCM and its investment professionals have managed. Similarly, while the research and operational professionals that support Mr. Landis in his management of Firsthand Funds are substantially the same individuals that will be supporting us, there is no assurance that they will be able to provide the same level of services to us as they did (or currently do) for Firsthand Funds.

**OUR FINANCIAL CONDITION AND RESULTS OF OPERATION WILL DEPEND ON OUR ABILITY TO MANAGE FUTURE GROWTH EFFECTIVELY.** 

Our ability to achieve our investment objective will depend on our ability to grow, which will depend, in turn, on FCM's ability to identify, invest in, and monitor companies that meet our investment criteria.

Accomplishing this result on a cost-effective basis will be largely a function of FCM's structuring of the investment process, its ability to provide competent, attentive, and efficient services to us and our access to financing on acceptable terms. The management team of FCM will have substantial responsibilities under the Investment Management Agreement. In addition, the employees of FCM may also be called upon to provide managerial assistance to our portfolio companies as the principals of our administrator. Such demands on their time may distract them or slow our rate of investment. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition, and results of operations.

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**WE OPERATE IN A HIGHLY COMPETITIVE MARKET FOR INVESTMENT OPPORTUNITIES.** 

A number of entities will compete with us to make the types of investments that we plan to make. We will compete with other venture capital firms and venture capital funds, various public and private investment funds, including hedge funds, other BDCs, commercial and investment banks, commercial financing companies, and various technology and alternative energy companies' internal venture capital arms. Many of our potential competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a stronger network of contacts and better connections for deal flows or have access to funding sources that are not available to us. In addition, some of our competitors have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act will impose on us as a BDC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective.

**REGULATIONS GOVERNING OUR OPERATION AS A BUSINESS DEVELOPMENT COMPANY WILL AFFECT OUR ABILITY TO, AND THE WAY IN WHICH WE, RAISE ADDITIONAL CAPITAL.** 

We are not generally able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock at a price below the current net asset value of the common stock, or sell warrants, options, or rights to acquire such common stock, at a price below the current net asset value of the common stock if our Board of Directors determines that such sale is in the best interests SVVC, and our stockholders approve SVVC's policy and practice of making such sales. Our stockholders have not approved a policy or practice of selling our common stock below our net asset value per share. However, our Board of Directors may ask our stockholders to vote on such a policy and practice at upcoming stockholders meetings. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our Board of Directors, closely approximates the market value of such securities (less any distributing commission or discount).

**ANY FAILURE ON OUR PART TO MAINTAIN OUR STATUS AS A BUSINESS DEVELOPMENT COMPANY WOULD REDUCE OUR OPERATING FLEXIBILITY.** 

If we do not remain a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially more regulatory restrictions under the 1940 Act and correspondingly decrease our operating flexibility and increase our cost of doing business. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us or expose us to claims of private litigants.

**IF WE DO NOT INVEST A SUFFICIENT PORTION OF OUR ASSETS IN QUALIFYING ASSETS, WE COULD FAIL TO QUALIFY AS A BUSINESS DEVELOPMENT COMPANY OR BE PRECLUDED FROM INVESTING ACCORDING TO OUR CURRENT BUSINESS STRATEGY.** 

As a BDC, we may not acquire any assets other than "qualifying assets" unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. See "Regulation" above.

We may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could lose our status as a BDC, which would have a material adverse effect on our business, financial condition, and results of operations. Similarly, these rules could prevent us from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inappropriate times in order to comply with the 1940 Act. If we need to dispose of such investments quickly, it would be difficult to dispose of such investments on favorable terms. For example, we may have difficulty in finding a buyer and, even if we do find a buyer, we may have to sell the investments at a substantial loss.

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**WE ARE A NON-DIVERSIFIED INVESTMENT COMPANY WITHIN THE MEANING OF THE 1940 ACT, AND THEREFORE WE ARE NOT LIMITED WITH RESPECT TO THE PROPORTION OF OUR ASSETS THAT MAY BE INVESTED IN SECURITIES OF A SINGLE ISSUER.** 

We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market's assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our income tax diversification requirements, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies.

**WE WILL NEED TO RAISE ADDITIONAL CAPITAL TO GROW.** 

We will need additional capital to fund growth in our investments once we have fully invested the cash (and other liquid assets, if any) received, we may issue equity securities in order to obtain this additional capital. A reduction in the availability of new capital could limit our ability to grow or pursue business opportunities. During the years that we have elected and maintained our status as a RIC, we will be required to distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, to our stockholders to maintain our RIC status. As a result, if stockholders opt out of reinvesting those distributions back into SVVC, these earnings will not be available to fund new investments. If we fail to obtain additional capital to fund our investments, this could limit our ability to grow, which may have an adverse effect on the value of our securities.

**MANY OF OUR PORTFOLIO INVESTMENTS WILL BE RECORDED AT FAIR VALUE AS DETERMINED IN GOOD FAITH BY OUR BOARD OF DIRECTORS. AS A RESULT, THERE WILL BE UNCERTAINTY AS TO THE VALUE OF OUR PORTFOLIO INVESTMENTS.** 

A large percentage of our portfolio investments will be 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 will value these securities quarterly at fair value according to our written valuation procedures and 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.

**THE LACK OF LIQUIDITY IN OUR INVESTMENTS MAY ADVERSELY AFFECT OUR BUSINESS.** 

We primarily make investments in private companies. Substantially all of these securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments. In addition, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

**WE MAY EXPERIENCE FLUCTUATIONS IN OUR QUARTERLY RESULTS.** 

We could experience fluctuations in our quarterly operating results due to a number of factors, including the performance of the portfolio securities we hold; the level of our expenses; variations in, and the timing of the recognition of, realized and unrealized gains or losses; the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

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**THERE ARE SIGNIFICANT POTENTIAL CONFLICTS OF INTEREST THAT COULD IMPACT OUR INVESTMENT RETURNS.** 

Our executive officers and directors may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do or of investment funds managed by affiliates of FCM that may be formed in the future. Accordingly, if this occurs, they may have obligations to investors in those entities, the fulfillment of which might not be in the best interests of us or our stockholders.

In the course of our investing activities, we will pay investment management and incentive fees to FCM, and will reimburse FCM for certain expenses it incurs. As a result, investors in our common stock will invest on a "gross" basis and receive distributions on a "net" basis after expenses, resulting in a lower rate of return than an investor might achieve through direct investments. Accordingly, there may be times when the management team of FCM has interests that differ from those of our stockholders, giving rise to a conflict.

The members of our Board of Directors are also trustees of the Board of Trustees of Firsthand Funds. We believe such a commonality of the board brings continuity of oversight and allows our Board to maintain the institutional knowledge and experience of overseeing illiquid securities and their pricing methods.

**OUR INCENTIVE FEE MAY INDUCE FCM TO MAKE SPECULATIVE INVESTMENTS AND THESE FEES WILL, IN EFFECT, BE BORNE BY OUR COMMON STOCKHOLDERS.** 

The incentive fee payable by us to FCM may create an incentive for FCM to make investments on our behalf that are risky or more speculative than would be the case in the absence of such compensation arrangement. The incentive fee payable to the Investment Adviser is calculated based on a percentage of our return on invested capital. This may encourage the Investment Adviser to invest in higher risk investments in the hope of securing higher returns.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, as well as other special purpose vehicles set up by third parties for investment in a particular private company. To the extent we so invest, we will bear our ratable share of any such investment company's expenses, including management and incentive fees. We will also remain obligated to pay investment advisory fees, consisting of a base management fee and incentive fees, to FCM with respect to the assets invested in the securities and instruments of other investment companies under the Investment Management Agreement. With respect to any such investments, each of our stockholders will bear his or her share of the investment advisory fees of FCM as well as indirectly bearing the investment advisory fees and other expenses of any investment companies in which we invest.

**CHANGES IN LAWS OR REGULATIONS GOVERNING OUR OPERATIONS MAY ADVERSELY AFFECT OUR BUSINESS.** 

We and our portfolio companies will be subject to regulation by laws at the local, state, and federal levels. These laws and regulations, as well as their interpretation, may be changed from time to time. Accordingly, any change in these laws or regulations could materially and adversely affect our business.

**PROVISIONS OF THE MARYLAND GENERAL CORPORATION LAW AND OF OUR CHARTER AND BYLAWS COULD DETER TAKEOVER ATTEMPTS AND HAVE AN ADVERSE IMPACT ON THE PRICE OF OUR COMMON STOCK.** 

The Maryland General Corporation Law, our charter, and our bylaws contain provisions that may discourage, delay or make more difficult a change in control of the Company or the removal of the Company's directors. We are subject to the Maryland Business Combination Act, the application of which is subject to any requirements of the 1940 Act. Our Board of Directors has adopted a resolution exempting from the Maryland Business Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our Board, including approval by a majority of our disinterested directors. If the resolution exempting business combinations is repealed or our Board does not approve a business combination, the Maryland Business Combination Act may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. We are also subject to the Maryland Control Share Acquisition Act. With certain exceptions, the Maryland General Corporation Law provides that a holder of "control shares" of a Maryland corporation acquired in a "control share acquisition" has no voting rights with respect to those shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares owned by the acquiring person or by our officers or by our directors who are our employees. The Maryland Control Share Acquisition Act also may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such an offer.

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We have also adopted other measures that may make it difficult for a third party to obtain control of us, including provisions of our charter classifying our Board of Directors in three classes serving staggered three-year terms and until their successors are duly elected and qualify, and provisions of our charter authorizing our Board of Directors (all without stockholder approval) to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, and to amend our charter to increase or decrease the number of shares of stock that we have authority to issue. These provisions, as well as other provisions of our charter and bylaws, may delay, defer, or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders.

**OUR BOARD OF DIRECTORS MAY CHANGE OUR INVESTMENT OBJECTIVE, OPERATING POLICIES, AND STRATEGIES WITHOUT PRIOR NOTICE OR STOCKHOLDER APPROVAL.** 

Our Board of Directors has the authority to modify or waive certain of our operating policies and strategies without prior notice and without stockholder approval (except as required by the 1940 Act). However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results, and value of our stock. Nevertheless, the effects may adversely affect our business and impact our ability to make distributions.

**RISKS RELATED TO OUR INVESTMENTS** 

**OUR INVESTMENTS IN PROSPECTIVE PORTFOLIO COMPANIES MAY BE RISKY, AND YOU COULD LOSE ALL OR PART OF YOUR INVESTMENT.** 

Equity Investments. We make equity investments primarily in equity securities and equity derivatives (such as options, warrants, rights, etc.) of privately placed venture capital stage technology and alternative energy companies as well as publicly traded micro-cap companies (those with market capitalizations of less than $250 million). Our goal is ultimately to dispose of these equity interests and realize gains upon our disposition of such interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value or lose all value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

In addition, investing in privately placed technology and clean tech companies involves a number of significant risks, including that private companies generally have limited operating history and are not as well capitalized as public companies. In addition, private company valuations may fluctuate more dramatically than those of public companies and they frequently have less diverse product lines and smaller market presence than larger competitors. These factors could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies.

**WE MAY INVEST IN MICRO-CAP PUBLIC COMPANIES AND COMPANIES WE MAY HOPE WILL HAVE SUCCESSFUL INITIAL PUBLIC OFFERINGS.** 

Although micro-cap companies may have potential for rapid growth, they are subject to wider price fluctuations due to factors inherent in their size, such as lack of management experience and financial resources and limited trade volume and frequency. To make a large sale of securities of micro-cap companies that trade in limited volumes, SVVC may need to sell portfolio holdings at a discount or make a series of small sales over an extended period of time.

We have invested in, and we expect to continue to invest in, companies that we believe are likely to issue securities in initial public offerings ("IPOs"). Although there is a potential the pre-IPO securities that we buy may increase in value if the company does issue securities in an IPO, IPOs are risky and volatile and may cause the value of our securities to fall dramatically. Also, because securities of pre-IPO companies are generally not freely or publicly tradeable, we may not have access to purchase securities in these companies in the amounts or at the prices we desire. Securities issued by these privately-held companies have no trading history, and information about such companies may be available for very limited periods. The companies that we anticipate holding successful IPOs may not ever issues shares in an IPO and a liquid market for their securities may never develop, which may negatively affect the price at which we can sell any such securities and make it more difficult to sell such securities, which could also adversely affect our liquidity.

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**WE EXPECT TO PURCHASE SECURITIES IN IPOS, WHICH INVOLVE SIGNIFICANT RISKS FOR US, AND WE MAY NOT BE ABLE TO PARTICIPATE IN OFFERINGS TO THE EXTENT DESIRED OR AT ALL.** 

Securities purchased in IPOs are often subject to the general risk associated with investments in companies with smaller market capitalizations, and typically to a heightened degree. Securities issued in IPOs have no trading history, and information about companies may be available for very limited periods. In addition, under certain market conditions, a relatively small number of companies may issue securities in IPOs. Our investment performance during periods when we are unable to invest significantly or at all in IPOs may be lower than during periods when we are able to do so.

IPO securities may be volatile, and we cannot predict whether investments in IPOs will be successful. If the Company grows in size, the possible positive effects of IPO investments on the Company may decrease.

**WE HAVE NOT YET IDENTIFIED ALL OF THE PORTFOLIO COMPANY INVESTMENTS WE INTEND TO ACQUIRE.** 

The Investment Adviser will select our investments, and our stockholders will have no input with respect to such investment decisions. These factors increase the uncertainty, and thus the risk, of investing in our shares.

**ECONOMIC RECESSIONS OR DOWNTURNS COULD IMPAIR OUR PORTFOLIO COMPANIES AND HARM OUR OPERATING RESULTS.** 

Many of our portfolio companies are susceptible to economic slowdowns or recessions and may fail or require additional capital investments from us during those periods. Therefore, our non-performing assets are likely to increase and the value of our portfolio is likely to decrease during these periods. These events could harm our operating results.

**OUR FAILURE TO MAKE FOLLOW-ON INVESTMENTS IN OUR PORTFOLIO COMPANIES COULD IMPAIR THE VALUE OF OUR PORTFOLIO.** 

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as "follow-on" investments, in order to:

● increase or maintain in whole or in part our equity ownership percentage; or

● exercise warrants, options, or convertible securities that were acquired in the original or subsequent financing.

We have the discretion to make any follow-on investments, subject to the availability of capital resources and the availability of securities in the applicable public company. We may elect not to make follow-on investments in a portfolio company and we may lack sufficient funds to make those investments. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our concentration of risk, because we prefer other opportunities, or because we are inhibited by compliance with BDC requirements or the desire to maintain our tax status.

**WE SOMETIMES DO NOT HOLD CONTROLLING EQUITY INTERESTS IN OUR PORTFOLIO COMPANIES AND WE MAY NOT BE IN A POSITION TO EXERCISE CONTROL OVER OUR PORTFOLIO COMPANIES OR TO PREVENT DECISIONS BY MANAGEMENT OF OUR PORTFOLIO COMPANIES THAT COULD DECREASE THE VALUE OF OUR INVESTMENTS.** 

Although we have held control and will continue to do so for some instruments, we do not anticipate always taking controlling equity positions in our portfolio companies. As a result, we will be subject to the risk that a portfolio company may make business decisions with which we disagree, and the stockholders and management of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity for the equity investments that we will typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company, and may therefore suffer a decrease in the value of our investments.

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**AN INVESTMENT STRATEGY FOCUSED PRIMARILY ON PRIVATELY HELD COMPANIES PRESENTS CERTAIN CHALLENGES, INCLUDING THE LACK OF AVAILABLE INFORMATION ABOUT THESE COMPANIES, A DEPENDENCE ON THE TALENTS AND EFFORTS OF ONLY A FEW KEY PORTFOLIO COMPANY PERSONNEL, AND A GREATER VULNERABILITY TO ECONOMIC DOWNTURNS.** 

We invest primarily in privately held companies. Generally, little public information exists about these companies, and we will be required to rely on the ability of FCM's investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments. Also, privately held companies frequently have less diverse product lines and a smaller market presence than larger competitors. These factors could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies.

**OUR PORTFOLIO COMPANIES MAY ISSUE ADDITIONAL SECURITIES OR INCUR DEBT THAT RANKS EQUAL OR SENIOR TO OUR INVESTMENTS IN SUCH COMPANIES.** 

We also invest primarily in equity securities issued by our portfolio companies. The portfolio companies may be permitted to issue additional securities or incur other debt that ranks equally with, or senior to, the equity securities in which we invest. By their terms, such other securities (especially if they are debt securities) may provide that the holders are entitled to receive payment of interest or principal before we are entitled to receive any distribution from the portfolio companies. Also, in the event of insolvency, liquidation, dissolution, reorganization, or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our equity investment in that portfolio company would typically be entitled to receive payment in full before equity investors like us may receive any distribution in respect of our investment. After repaying such senior creditors, the portfolio company may not have any remaining assets to distribute to us.

**WE MAY PURCHASE OR SELL OPTIONS ON SECURITIES AND INDEXES, WHICH MAY EXPOSE US, AND YOUR INVESTMENT IN OUR COMMON STOCK, TO CERTAIN RISKS.** 

We may on a limited basis purchase or sell options on indexes or securities. The use of options has risks and our ability to successfully use these techniques depends on our ability to predict pertinent market movements, which cannot be assured. The use of options may result in losses greater than if they had not been used, may require us to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation we can realize on an investment or may cause us to hold a security we might otherwise sell.

**OUR INVESTMENTS IN FOREIGN SECURITIES MAY INVOLVE SIGNIFICANT RISKS IN ADDITION TO THE RISKS INHERENT IN U.S. INVESTMENTS.** 

Our investment strategy involves potential investments in equity securities of foreign companies. Investing in foreign companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations; political and social instability; expropriation; imposition of foreign taxes; less liquid markets and less available information than is generally the case in the United States; higher transaction costs; less government supervision of exchanges, brokers and issuers; less developed bankruptcy laws; difficulty in enforcing contractual obligations; lack of uniform accounting and auditing standards; and greater price volatility.

Although most of our investments will be U.S. dollar-denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation, and political developments. We may employ hedging techniques to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk, or, if we do, that such strategies will be effective.

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|:---|:---|
| **Item 1B.**  | **Unresolved Staff Comments**  |

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None.

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| **Item 1C.**  | **Cybersecurity** |

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Our Board of Directors (the "Board") is responsible for overseeing our risk management program, and cybersecurity is a critical element of this program. Management is responsible for the day-to-day administration of the Company's risk management program and its cybersecurity policies, processes, and practices. In general, the Adviser seeks to address material cybersecurity threats through a company-wide approach that addresses the confidentiality, integrity, and availability of the Adviser's information systems or the information that the Adviser collects and stores, by assessing, identifying and managing cybersecurity issues as they occur.

<u>Cybersecurity Risk Management and Strategy</u>

The Adviser's cybersecurity risk management strategy focuses on several areas:

● **Identification and Reporting:** The Adviser has implemented a comprehensive, cross-functional approach to assessing, identifying and managing material cybersecurity threats and incidents. The Adviser's program includes controls and procedures to properly identify, classify and escalate certain cybersecurity incidents to provide management visibility and obtain direction from management as to the public disclosure and reporting of material incidents in a timely manner.

● **Technical Safeguards:** The Adviser implements technical safeguards that are designed to protect the Adviser's information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence, as well as assistance from third party experts where necessary.

● **Incident Response and Recovery Planning:** The Adviser has established and maintains comprehensive incident response, business continuity, and disaster recovery plans designed to address the Adviser's response to a cybersecurity incident. The Adviser conducts occasional tabletop exercises to test these plans and ensure personnel are familiar with their roles in a response scenario.

● **Third-Party Risk Management:** The Adviser maintains a comprehensive, risk-based approach to identifying and overseeing material cybersecurity threats presented by third parties, including vendors and service providers

● **Education and Awareness:** The Adviser provides periodic training for all levels of personnel regarding cybersecurity threats as a means to equip the Adviser's personnel with effective tools to address cybersecurity threats, and to communicate the Adviser's evolving information security policies, standards, processes, and practices.

The Adviser conducts periodic assessment and testing of its policies, standards, processes, and practices in a manner intended to address cybersecurity threats and eventsThe results of such assessments and reviews are evaluated by management and reported to the Board, and the Adviser adjusts its cybersecurity policies, standards, processes, and practices as necessary based on the information provided by these assessments and reviews.

<u>Governance</u>

The Board, in coordination with the Adviser, oversees the Company's risk management program, including the management of cybersecurity threats. The Board receives regular updates and reports on developments in the cybersecurity space, including risk management practices, recent developments, vulnerability assessments, third-party and independent reviews, the threat environment, and information security issues encountered by the Company. The Board also receives prompt and timely information regarding any material cybersecurity risk, as well as ongoing updates regarding any such risk. On an annual basis, the Board and the Adviser discuss the Company's approach to overseeing cybersecurity threats.

<u>Material Effects of Cybersecurity Incidents</u>

Risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.

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|:---|:---|
| **Item 2.** | **Properties**  |

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Under the terms of the Investment Management Agreement, Firsthand Capital Management, Inc. is responsible for providing office space to the Company and for the costs associated with providing such space. Our offices are located at 150 Almaden Blvd., Suite 1250, San Jose, CA 95113.

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|:---|:---|
| **Item 3.**  | **Legal Proceedings**  |

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As of 12/31/2025, the Fund was engaged in multiple legal proceedings as described below.

*<u>VestedCap v. IntraOp Medical Corp., et. al.</u>*

On September 5, 2023, VestedCap, LLC ("VestedCap") filed a complaint in Superior Court for the State of California. The case is venued in Santa Clara County (Case No. 23-CV-422238.) As originally filed, the lawsuit asserted claims against one of the Fund's portfolio companies, IntraOp Medical Corporation. VestedCap also named Kevin Landis as a co-defendant. In the original complaint, VestedCap asserted claims for breach of contract, fraud and deceit, conversion, unjust enrichment, and judicial foreclosure. IntraOp and Kevin Landis denied all claims against them.

On January 22, 2025, VestedCap ame

nded its complaint and added the Fund as an additional co-defendant. In the amended complaint, VestedCap has asserted the following claims against the Fund: wire fraud, violations of the RICO Act, fraud and deceit, conversion, and declaratory relief. VestedCap has also asserted that the Fund is the alter ego of co-defendants IntraOp Medical Corporation and Kevin Landis and therefore should be a party to the case. On January 16, 2026, VestedCap filed a Second Amended Complaint. The Second Amended Complaint asserts no new causes of action but does contain revised factual allegations in connection with the previously asserted fraud claims.

The Fund believes that the allegations in the operative complaint lack merit and has filed an answer denying all wrongdoing. The Fund intends to vigorously defend itself. The parties have exchanged documents and written discovery responses. Some depositions have been taken and others will occur during March and April 2026. The case has not been set for trial but the Court has scheduled a trial setting conference for late-April 2026. A trial in 2027 is expected.

*<u>Star Equity Fund L.P. v. Firsthand Capital Management, Inc., et al.</u>*

On February 28, 2025, Star Equity Fund, L.P., an investor in Firsthand Technology Value Fund, filed a lawsuit against the Fund, Firsthand Capital Management Company, and various individual defendants. The lawsuit asserts derivative claims on behalf of the Fund. Specifically, it asserts counts against the Management Company for alleged violations of Section 10(b) of the Securities Exchange Act of 1934; (II) violations of Section 20(a) of the Securities Exchange Act of 1934; (III) breach of fiduciary duties; (V) appointment of a receiver; and (VI) aiding and abetting breaches of fiduciary duties. Star Equity has also asserted a direct cause of action against the Management Company (Count IV) as a purported third-party beneficiary of the management agreement between the Management Company and the Fund. The Fund and the Management Company deny all allegations of wrongdoing.

On September 18, 2025, the Fund and the Management Company filed motions to dismiss Star Equity's Complaint. In response, Star Equity voluntarily dismissed its direct and derivative breach of fiduciary duty claim, its direct and derivative breach of contract claim, and its aiding and abetting the breach of fiduciary duty claim. The dismissals were without prejudice and the claims may be re-filed. The other asserted claims remain subject to the pending motion to dismiss. That motion will likely be decided in March or April 2026.

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|:---|:---|
| **Item 4.**  | **Mine Safety Disclosures**  |

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Not applicable.

PART II

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| | |
|:---|:---|
| **Item 5.**  | **Market for Registrant**'**s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities** |

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**MARKET INFORMATION** 

Our common stock is quoted on the OTCQB market under the symbol "SVVC." The following table sets forth the range of the high and low closing sales prices of the Company's shares during each quarter during the last fiscal year, as reported by the OTC Markets Group. The quarterly stock prices quoted represent interdealer quotations and do not include markups, markdowns, or commissions.

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| | | |
|:---|:---|:---|
| **2025 Quarter Ending** | **Low** | **High** |
| March 31 | $0.05 | $0.08 |
| June 30 | $0.05 | $0.08 |
| September 30 | $0.05 | $0.07 |
| December 31 | $0.02 | $0.06 |

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**SHAREHOLDERS** 

As of March 1, 2026, there were approximately 900 shareholders of record and approximately 6,800 beneficial owners of the Company's common stock.

**DIVIDENDS** 

There were no distributions in 2025.

**RECENT SALES OF UNREGISTERED SECURITIES** 

The Company did not issue any unregistered securities during the year ended December 31, 2025.

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**PERFORMANCE GRAPH** 

The graph and table below compares the cumulative total return of holders of our common stock (market price) and of the Fund's NAV with the cumulative total returns of the S&P 500 Index and the NASDAQ Composite Index. There is a difference between the market price of our common stock and the Fund's NAV because the stock may trade at a discount or premium to the NAV in the secondary market. The comparison assumes that the value of the investment in our common stock (using both market price and NAV) and in the index (including reinvestment of dividends) was $10,000 on April 18, 2011 (our inception date), and tracks it through December 31, 2025.

![pegraph.jpg](pegraph.jpg)

**STOCK TRANSFER AGENT** 

Computershare Investor Services, 462 South 4th Street, Suite 1600 Louisville, KY 40202 (1.800.331.1710) serves as our transfer agent.

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|:---|:---|
| **Item 6.**  | **Selected Financial Data**  |

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The information below was derived from the audited Consolidated Financial Statements included in this report. This information should be read in conjunction with those Consolidated Financial Statements and Supplementary Data and the notes thereto. These historical results are not necessarily indicative of the results to be expected in the future.

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**Firsthand Technology Value Fund, Inc.**

**Consolidated Statement of Assets and Liabilities**

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| | | |
|:---|:---|:---|
|  | **AS OF<br> DECEMBER 31, 2025** | **AS OF<br> DECEMBER 31, 2024** |
| **ASSETS** |  |  |
| Investment securities: |  |  |
| Unaffiliated investments at acquisition cost | $1,056,271\* | $1,745,224\* |
| Affiliated investments at acquisition cost | 662235 | 662235 |
| Controlled investments at acquisition cost | 88196024 | 114275039 |
| Total acquisition cost | $89914530 | $116682498 |
| Unaffiliated investments at market value | $56,271\* | $745,224\* |
| Affiliated investments at market value | 167642 | 260497 |
| Controlled investments at market value | 1523 | 54753 |
| Total Market value (Note 6) | 225436 | 1060474 |
| Foreign currency at value (cost $0 and $2,629) |  | 2512 |
| Receivable for securities sold |  | 325000 |
| Receivable from dividends and interest | 505 | 2871 |
| Other assets | 44220 | 404756 |
| Total Assets | 270161 | 1795613 |
| **LIABILITIES** |  |  |
| Due to Custodian |  | 127478 |
| Payable to affiliates (Note 2) | 21010 | 27587 |
| Deferred directors' fees payable (Note 2) | 33384 | 214172 |
| Consulting fee payable | 3000 |  |
| Accrued taxes | 268701 | 139154 |
| Accrued expenses and other payables | 179194 | 226543 |
| Total Liabilities | 505289 | 734934 |
| **NET ASSETS** | $(235128) | $1060679 |
| Net Assets consist of: |  |  |
| Common Stock par vale $0.01 per share 100,000,000 shares authorized | 6893 | 6893 |
| Paid-in-capital | 176770722 | 176770722 |
| Total distributable earnings (loss) | (177012743) | (175716936) |
| **NET ASSETS** | $(235128) | $1060679 |
| Shares of Common Stock outstanding | 7016432 | 7016432 |
| Shares of Treasury Stock outstanding | (123892) | (123376) |
| Total Shares of Common Stock outstanding | 6892540 | 6893056 |
| Net asset value per share (Note 2) | $0.00 | $0.15 |

---

*\** *Includes Fidelity Investment Money Market Treasury Portfolio - Class I, which invests primarily in U.S. Treasury securities. The yields as of 12/31/25 and 12/31/24 were 3.66% and 4.34%, respectively. Please see https://fundresearch.fidelity.com/mutual-funds/summary/316175504 for additional information.*

**See accompanying notes to financial statements** 

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Statements of Operations** 

---

| | | | |
|:---|:---|:---|:---|
|  | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2025** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2024** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2023** |
| **INVESTMENT INCOME** |  |  |  |
| Unaffiliated interest | $13754 | 29836 | $37275 |
| Affiliated/controlled interest |  | 80000 | 85356 |
| TOTAL INVESTMENT INCOME | 13754 | 109836 | 122631 |
| **EXPENSES** |  |  |  |
| Investment advisory fees (Note 4) | 21010 | 88487 | 455559 |
| Administration fees | 118014 | 115001 | 116785 |
| Custody fees |  | 4464 | 8743 |
| Transfer agent fees | 19585 | 26629 | 33296 |
| Registration and filing fees | 16556 | 4782 | 35300 |
| Professional fees | 810267 | 454285 | 398882 |
| Printing fees | 1000 | 2000 | 299958 |
| Directors' fees | 50000 | 50000 | 68750 |
| Deferred Directors' fees (Note 2) | (150227) | 200281 | (24909) |
| Compliance fees | 110336 | 112844 | 110336 |
| Insurance expense | 82952 | 70562 | 11216 |
| Miscellaneous fees | 35282 | 54412 | 69852 |
| TOTAL GROSS EXPENSES | 1114775 | 1183747 | 1583768 |
| Less waiver and/or reimbursement (Note 4) |  | (3088487) | (2542716) |
| TOTAL NET EXPENSES | 1114775 | (1904740) | (958948) |
| **NET INVESTMENT INCOME/(LOSS), BEFORE TAXES** | (1101021) | 2014576 | 1081579 |
| Tax Expense | 185047 | 139154 |  |
| **Net Investment Income/(Loss), net of taxes** | (1286068) | 1875422 | 1081579 |
| **Net Realized and Unrealized Gain (Loss) on Investments:** |  |  |  |
| Net realized gains (losses) from security transactions on: |  |  |  |
| Affiliated/controlled | (25942914) | (11686668) | (7864998) |
| Foreign currency | 82 |  | 16 |
| Net realized (Losses) | (25942832) | (11686668) | (7864982) |
| Net change in unrealized appreciation (depreciation) on: |  |  |  |
| Affiliated/controlled investments and foreign currency | 25933093 | 9611554 | (21615371) |
| Affiliated/controlled warrants investments (1) |  |  | (950446) |
| Net change in unrealized appreciation (depreciation) | 25933093 | 9611554 | (22565817) |
| **Net Realized and Unrealized Loss on Investments** | (9739) | (2075114) | (30430799) |
| **Net Decrease In Net Assets Resulting From Operations** | $(1295807) | $(199692) | $(29349220) |
| **Net Decrease In Net Assets Per Share Resulting From Operations (2)** | $(0.15) | $(0.03) | $(4.26) |

---

*(1)* *Primary exposure is equity risk.*

*(2)* *Per share results are calculated based on weighted average shares outstanding for each period.*

**See accompanying notes to financial statements** 

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| | |
|:---|:---|
| **Item 7.** | **Management**'**s Discussion and Analysis of Financial Condition and Results of Operations**  |

---

The information contained in this section should be read in conjunction with our 2025 Consolidated Financial Statements and notes thereto.

**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 have elected to be treated as a RIC under Subchapter M of the Code. 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.

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The following table summarizes the fair value of our investment portfolio by industry sector as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Medical Devices | (0.6)% | 2.4% |
| Automotive | 0.0% | 0.0% |
| Semiconductor Equipment | 0.0% | 0.0% |
| Equipment Leasing | 0.0% | 2.8% |
| Advanced Materials | (71.3)% | 24.5% |
| Investment Companies | (23.9)% | 70.3% |
| Other Liabilities in excess of Other Assets | 195.8% | 0.0% |
| Net Assets | 100.0% | 100.0% |

---

Certain trends in the technology industry may have an impact on the portfolio in coming quarters. In particular, the Fund will be sensitive to growth rates in industrial use of nickel boron coatings, as well as the speed of adoption of electron radiation for cancer treament.

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**RESULTS OF OPERATIONS** 

The following information is a comparison for the year ended December 31, 2025, December 31, 2024, and December 31, 2023.

**INVESTMENT INCOME** 

For the year ended December 31, 2025, we had investment income of $13,754 primarily due to interest interest accrued from money market fund.

For the year ended December 31, 2024, we had investment income of $109,836 primarily attributable to interest on convertible/term note investments with Hera Systems.

For the year ended December 31, 2023, we had investment income of $122,631 primarily attributable to interest on convertible/term note investments with Hera Systems.

The lower level of investment income in the year ended December 31, 2025 compared to December 31, 2024 was due to reduction in interest bearing notes.

The lower level of investment income in the year ended December 31, 2024 compared to the year ended December 31, 2023 was due to interest accrued on Hera Systems.

**OPERATING EXPENSES** 

Operating expenses totaled approximately $1,114,775 during the year ended December 31, 2025, $1,183,747 during the year ended December 31, 2024, and $1,583,768 during the year ended December 31, 2023.

Significant components of operating expenses for the year ended December 31, 2025, were professional fees (audit, legal, accounting, and consulting) of $810,267, directors' fees of $(100,227), administration fees of $118,014, and compliance fees of $110,336.

Significant components of operating expenses for the year ended December 31, 2024, were professional fees (audit, legal, accounting, and consulting) of $454,285, and directors' fees of $250,281.

Significant components of operating expenses for the year ended December 31, 2023, were a management fee expense of $455,559, and professional fees (audit, legal, accounting, and consulting) of $398,882.

The lower level of operating expenses for the year ended December 31, 2025 compared to the year ended December 31, 2024 is primarily attributable to a decrease in director fees.

The lower level of operating expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily attributable to a decrease in total net assets, on which the investment advisory fees are based.

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**NET INVESTMENT INCOME(LOSS)**

The net investment income/(loss) was $(1,286,068) for the year ended December 31, 2025, $1,875,422 for the year ended December 31, 2024, and $1,081,579 for the year ended December 31, 2023.

The net investment loss for the year ended December 31, 2025 compared to the net investment gain for the year ended December 31, 2024 is primarily attributable to a waiver of investment advisory fees in 2024.

The greater net investment income before taxes in the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily attributable to a waiver of investment advisory fees (see Note 4).

**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 years ended December 31, 2025, December 31, 2024, and December 31, 2023, is shown below.

---

| | |
|:---|:---|
|  | **Year Ended<br> December 31, 2025** |
| Realized losses | $(25942832) |
| Net change in unrealized depreciation on investments | $25933093 |
| Net realized and unrealized loss on investments | $(9739) |

---

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2025** |
| Gross unrealized appreciation on portfolio investments | $0 |
| Gross unrealized depreciation on portfolio investments | $(89689094) |
| Net unrealized depreciation on portfolio investments | $(89689094) |

---

---

| | |
|:---|:---|
|  | **Year Ended<br> December 31, 2024** |
| Realized losses | $(11686668) |
| Net change in unrealized depreciation on investments | $9611554 |
| Net realized and unrealized loss on investments | $(2075114) |

---

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2024** |
| Gross unrealized appreciation on portfolio investments | $0 |
| Gross unrealized depreciation on portfolio investments | $(115622024) |
| Net unrealized depreciation on portfolio investments, warrants, and other assets | $(115622024) |

---

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---

| | |
|:---|:---|
|  | **Year Ended<br> December 31, 2023** |
| Realized losses | $(7864982) |
| Net change in unrealized depreciation on investments | $(22565817) |
| Net realized and unrealized loss on investments | $(30430799) |

---

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2023** |
| Gross unrealized appreciation on portfolio investments | $0 |
| Gross unrealized depreciation on portfolio investments | $(125233890) |
| Net unrealized depreciation on portfolio investments, warrants, and other assets | $(123233890) |

---

During the year ended December 31, 2025, we recognized net realized losses of $25,942,832 from the sale of investments. Realized losses were higher compared to the Fund's realized losses in 2024 due to the sale of investments, primarily the maturity of Wrightspeed Notes in 2025.

During the year ended December 31, 2025, net unrealized depreciation on total investments decreased by $25,933,093. The change in net unrealized appreciation/(depreciation) of our private investments is based on portfolio asset valuations determined in good faith by our Board of Directors. The decrease in unrealized depreciation on total investments during the year is due primarily to the liquidation of Wrightspeed in 2025.

During the year ended December 31, 2024, we recognized net realized losses of $11,686,668 from the sale of investments. Realized losses were lower compared to the Fund's realized losses in 2025 due to the sale of investments, primarily Hera Systems in 2024.

&nbsp;&nbsp;&nbsp;&nbsp; During the year ended December 31, 2024, net unrealized depreciation on total investments decreased by $9,611,554. 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. The decline in unrealized depreciation on total investments during the year is due primarily to the the liquidation of our investment in Hera Systems in 2024.

During the year ended December 31, 2023, we recognized net realized losses of $7,864,982 from the sale of investments. Realized losses were higher compared to the Fund's realized gains in 2022 due to the sale of investments, primarily SiGen in 2023.

During the year ended December 31, 2023, net unrealized depreciation on total investments increased by $22,565,817. 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. The increase in unrealized depreciation on total investments during the year is due primarily to the decrease in value of our investments, most notably, IntraOp Medical, and Wrightspeed.

**INCOME AND EXCISE TAXES** 

Beginning on June 30, 2018, we were no longer able to qualify as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). This change in tax status resulted from the increase in the value of a single holding, Pivotal Systems Corp., which meant that we were no longer able to satisfy the diversification requirements for qualification as a RIC. As a result of this change, we will be taxed as a corporation for our fiscal year ended December 31, 2018, and will continue to be taxed in that manner for future fiscal years, paying federal and applicable state corporate taxes on our taxable income, unless and until we are able to once again qualify as a RIC, based on changes in the composition of our portfolio. Consequently, at the close of each fiscal quarter beginning with the quarter ended June 30, 2018, we will record a deferred tax liability for any net realized gains and net ordinary income for the year-to-date period plus net unrealized gains as of the end of the quarter.

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

For the year ended December 31, 2025, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $1,295,807 and the basic and fully diluted net change in net assets per share for the year ended December 31, 2025 was $(0.15).

For the year ended December 31, 2024, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $199,692 and the basic and fully diluted net change in net assets per share for the year ended December 31, 2024 was $(0.03).

For the year ended December 31, 2023, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $29,349,220 and the basic and fully diluted net change in net assets per share for the year ended December 31, 2023 was $(4.26).

The greater decrease in net assets resulting from operations (net of deferred taxes) for the year ended December 31, 2025 as compared to the year ended December 31, 2024, is due primarily to no management fee waiver in 2025.

The smaller decrease in net assets resulting from operations (net of deferred taxes) for the year ended December 31, 2024 as compared to the year ended December 31, 2023, is due primarily to a smaller decrease in the asset valuations of our holdings, which are determined in good faith by our Board of Directors.

The smaller decrease in net assets resulting from operations (net of deferred taxes) for the year ended December 31, 2023 as compared to the year ended December 31, 2022, is due primarily to a smaller decrease in the asset valuations of our holdings, which are determined in good faith by our Board of Directors.

**FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES** 

Our liquidity and capital resources are generated primarily from sales or liquidation proceeds of our investments. Our primary uses of cash are to make investments, pay our operating expenses, and make distributions to our stockholders. For the years ended December 31, 2025, 2024, and 2023, our operating expenses were $1,114,775, $1,183,747, and $1,583,768, respectively.

For the year ended December 31, 2025, our total cash reserves and liquid securities decreased approximately 92%, primarily due to cash needed for operating expenses.

For the year ended December 31, 2024, our total cash reserves and liquid securities decreased approximately 80%, primarily due to the sale of portfolio securities and operating expenses. We believe that our current liquid assets are sufficient to meet the Company's short-term financing needs.

At December 31, 2025, we had investments in public and private securities totaling approximately $0.2 million which includes approximately $56 thousand in a money market fund. We primarily invest cash on hand in money market treasury portfolios. We expect the portion of our portfolio consisting of cash and cash equivalents to decrease.

As of December 31, 2025, net assets totaled approximately $(0.2) million, with an NAV per share of $0.00. Our primary use of funds will be payments of fees and other operating expenses we incur.

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**PORTFOLIO INVESTMENTS** 

**PRIVATE INVESTMENTS** 

We make investments in securities of both public and private companies. December 31, 2025, we had investments in the following private companies:

<u>IntraOp Medical Corp.</u>

IntraOp Medical Corporation ("IntraOp"), Sunnyvale, California, manufactures and markets the Mobetron, a medical device for delivering Intra Operative Electron Radiation Therapy to cancer patients.

At December 31, 2025, our investment in IntraOp consisted of 26,856,187 shares of Series C preferred stock, $3,000,000 par value term note, $2,000,000 par value term note, $1,300,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $1,000,000 par value convertible note, $400,000 par value convertible note, $750,000 par value convertible note, $1,000,000 par value convertible note, $1,000,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $200,000 par value convertible note, $150,000 par value convertible note, $350,000 par value convertible note, $700,000 par value convertible note, a $10,961,129 par value convertible note, with a combined aggregate fair value of $1,523.

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<u>Lyncean Technologies, Inc.</u>

Lyncean Technologies, Inc. ("Lyncean"), Fremont, CA, is a developer X-ray and extreme ultraviolet (EUV) light sources for laboratory and commercial use.

At December 31, 2025, our investment in Lyncean consisted of 869,792 shares of Series B preferred stock with a combined fair value of $0.

<u>Revasum, Inc.</u> 

Revasum, ("Revasum"), San Luis Obispo, California, designs CMP and grinding technology for the semiconductor equipment industry.

At December 31, 2025, our investment in Revasum consisted of 39,774,889 shares of CDIs with an aggregate fair value of approximately $0.

<u>UCT Coatings, Inc.</u>

UCT Coatings, Inc. ("UCT"), Stuart, Florida, is a leader in the development of metal coatings that reduce friction and improve efficiency in mechanical systems.

At December 31, 2025, our investments in UCT consisted of 1,500,000 shares of common stock with a combined fair value of $167,642.

<u>Wrightspeed, Inc.</u>

Wrightspeed, Inc. ("Wrightspeed"), San Jose, California, is a supplier of electric drivetrains for heavy-duty commercial vehicles.

At December 31, 2025, our investments in Wrightspeed consisted of 69,102 shares of common stock, 60,733,693 shares of Series AA preferred stock with a fair value of $0.

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**PUBLIC INVESTMENTS** 

At December 31, 2025, we had investments in the following public securities:

<u>Fidelity Investments Money Market Treasury Portfolio - Class I</u>

Fidelity Investments Money Market Treasury Portfolio - Class I ("Money Market") is a money market portfolio that invests primarily in U.S. treasury securities.

At December 31, 2025, our investment in Money Market consisted of 56,271 shares of the money market fund with a market value of approximately $56 thousand.

**DISTRIBUTION POLICY** 

Our board of directors will determine the timing and amount, if any, of our distributions. For each year in which the Fund has qualified as a RIC, we intend to pay distributions on an annual basis out of assets legally available therefore. In order to qualify as a RIC and to avoid corporate-level tax on our income, we must distribute to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, on an annual basis. In addition, we also intend to distribute any realized net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) at least annually.

**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.

<u>Valuation of Portfolio Investments</u> 

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.

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<u>Revenue Recognition</u> 

We record interest income on an accrual basis and dividend income on the ex-dividend date 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.

<u>Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation</u> 

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.

<u>Recently Issued Accounting Standards</u> 

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.

<u>Inflation</u> 

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** 

Management has evaluated the impact of all subsequent events on the Company through the date the financial statements were issued.

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| | |
|:---|:---|
| **Item 7A.**  | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**  |

---

The Fund's business activities contain elements of risk. We consider the principal types of market risk to be valuation risk and small company investment risk.

**VALUATION RISK** 

Value, as defined in Section 2(a)(41) of the 1940 Act, is (i) the market price for those securities for which market quotations are readily available and (ii) fair value as determined in good faith by, or under the direction of, the Board of Directors for all other assets.

Because there is typically no public market for our interests in the small privately-held companies in which we invest, the valuation of the securities in that portion of our portfolio is determined in good faith by our Board of Directors with the assistance of our Valuation Committee, comprised of the independent members of our Board of Directors, in accordance with our Valuation Procedures. In addition, the Board of Directors may use the services of a nationally recognized independent valuation firm to aid it in determining the fair value of some of these securities. In the absence of a readily ascertainable market value, the determined value of our portfolio of securities may differ significantly from the values that would be placed on the portfolio if a ready market for such securities existed. Determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment, although our valuation policy is intended to provide a consistent basis for determining fair value of the portfolio investments. 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.

Furthermore, changes in valuation of any of our investments in privately-held companies from one period to another may be volatile.

Investments in privately held, immature companies are inherently more volatile than investments in more mature businesses. Such immature businesses are inherently fragile and easily affected by both internal and external forces.

Our portfolio companies can lose much or all of their value suddenly in response to an internal or external adverse event. Conversely, these immature businesses can gain suddenly in value in response to an internal or external positive development.

The values assigned to our assets are based on available information and do not necessarily represent amounts that might ultimately be realized, as these amounts depend on future circumstances and cannot be reasonably determined until the individual investments are actually liquidated or become readily marketable. Upon sale of investments, the values that are ultimately realized may be different from what is presently estimated. This difference could be material.

**PRIVATELY PLACED SMALL COMPANIES RISK** 

The Fund invests in small companies, and its investments in these companies are considered speculative in nature. The Fund's investments often include securities that are subject to legal or contractual restrictions on resale that adversely affect the liquidity and marketability of such securities. As a result, the Fund is subject to risk of loss which may prevent our shareholders from achieving price appreciation, dividend distributions and return of capital.

**WE MAY HOLD A PORTION OF OUR ASSETS IN CASH** 

As of December 31, 2025, we have a significant portion of the Fund's assets invested in cash and/or cash equivalents. We may, however, from time to time hold a substantial portion of our assets in cash and/or cash equivalents, which are expected to earn low yields. Given the current low interest rate environment, to the extent the management fee and other operating expenses exceed interest income on the cash holdings of the Fund, the Fund may experience losses. Furthermore, the investment advisory fee payable by us will not be reduced while our assets are invested in cash-equivalent securities.

In some cases, particularly for primary transactions, it is to our advantage to hold sufficient cash reserve so that we can make additional subsequent investments in these companies in order to (a) avoid having our earlier investments become diluted in future dilutive financings, (b) invest additional capital into existing portfolio companies in case additional investments are necessary, and/or (c) exercise warrants, options, or convertible securities that were acquired as part of the earlier transactions. For this reason, in the case of primary transactions (as opposed to secondary transactions where we do not buy the securities from the issuing companies but instead from existing stockholders), we typically reserve cash in an amount at least equal to our initial investment for such follow-on opportunities. Cash reserves held with respect to a particular investment should, therefore, decline as it is held longer, and will typically not be needed once that portfolio company becomes public or we determine it is no longer in our best interest to make investments in such portfolio company.

We may from time to time liquidate various investments. We are required to distribute substantially all of our net realized gains to stockholders on an annual basis and, therefore, will generally hold the proceeds of liquidated investments in cash pending its distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

**To the Board of Directors and Shareholders**

**of Firsthand Technology Value Fund, Inc.**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of assets and liabilities of Firsthand Technology Value Fund, Inc. (the "Company"), including the consolidated schedules of investments, as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in net assets, and cash flows for each of the years in the three-year period ended December 31, 2025, and the consolidated financial highlights for each of the years in the five-year period ended December 31, 2025, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, the results of its operations, the changes in its net assets, and its cash flows for each of the years in the three-year period ended December 31, 2025, and the financial highlights for each of the years in the five-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Company's auditor since 1997.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of December 31, 2025 by correspondence with the custodian and portfolio companies. We believe that our audits provide a reasonable basis for our opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

**To the Board of Directors and Shareholders** 

**of Firsthand Technology Value Fund, Inc.** 

**Page Two**

**Emphasis of Matter Regarding Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 14 to the financial statements, the Company's total liabilities exceeds the Company's total assets and as a result the Company is insolvent. As stated in Note 14, this event or condition, along with other matters as set forth in Note 14, indicate that a material uncertainty exists that may cast substantial doubt on the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 14. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 **Emphasis of Matter Regarding BDC Liquidation**

As discussed in Note 1, the Company issued a press release seeking approval to withdraw its BDC election and pursue liquidation.

Our opinion is not modified with respect to these matters.

**/S/ TAIT, WELLER & BAKER LLP** **PCAOB ID 445**

**Philadelphia, Pennsylvania March 25, 2026**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40

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---

| | |
|:---|:---|
| **Item 8.**  | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**  |

---

**Firsthand Technology Value Fund, Inc.**

**Consolidated Statement of Assets and Liabilities**

---

| | | |
|:---|:---|:---|
|  | **AS OF<br> DECEMBER 31, 2025** | **AS OF<br> DECEMBER 31, 2024** |
| **ASSETS** |  |  |
| Investment securities: |  |  |
| Unaffiliated investments at acquisition cost | $1,056,271\* | $1,745,224\* |
| Affiliated investments at acquisition cost | 662235 | 662235 |
| Controlled investments at acquisition cost | 88196024 | 114275039 |
| Total acquisition cost | $89914530 | $116682498 |
| Unaffiliated investments at market value | $56,271\* | $745,224\* |
| Affiliated investments at market value | 167642 | 260497 |
| Controlled investments at market value | 1523 | 54753 |
| Total Market value (Note 6) | 225436 | 1060474 |
| Foreign currency at value (cost $0 and $2,629) |  | 2512 |
| Receivable for securities sold |  | 325000 |
| Receivable from dividends and interest | 505 | 2871 |
| Other assets | 44220 | 404756 |
| Total Assets | 270161 | 1795613 |
| **LIABILITIES** |  |  |
| Due to Custodian |  | 127478 |
| Payable to affiliates (Note 2) | 21010 | 27587 |
| Deferred directors' fees payable (Note 2) | 33384 | 214172 |
| Consulting fee payable | 3000 |  |
| Accrued taxes | 268701 | 139154 |
| Accrued expenses and other payables | 179194 | 226543 |
| Total Liabilities | 505289 | 734934 |
| **NET ASSETS** | $(235128) | $1060679 |
| Net Assets consist of: |  |  |
| Common Stock, par value $0.001 per share 100,000,000 shares authorized | $6893 | $6893 |
| Paid-in-capital | 176770722 | 176770722 |
| Total distributable earnings (loss) | (177012743) | (175716936) |
| **NET ASSETS** | $(235128) | $1060679 |
| Shares of Common Stock outstanding | 7016432 | 7016432 |
| Shares of Treasury Stock outstanding | (123892) | (123376) |
| Total Shares of Common Stock outstanding | 6892540 | 6893056 |
| Net asset value per share (Note 2) | $0.00 | $0.15 |

---

*\** *Includes Fidelity Investment Money Market Treasury Portfolio - Class I, which invests primarily in U.S. Treasury securities. The yields as of 12/31/25 and 12/31/24 were 3.66% and 4.34%, respectively. Please see https://fundresearch.fidelity.com/mutual-funds/summary/316175504 for additional information.*

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments** 

 ***DECEMBER 31, 2025***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **INTRAOP MEDICAL CORP.** |  |  |  |  |  |  |
| **((0.6%))**<br> **Medical Devices**<br> Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 10/11/2019 | 500000 | $500000 | $27 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 10/22/2021 | 1000000 | 1000000 | 55 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 10/29/2019 | 500000 | 500000 | 28 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 10/6/2021 | 500000 | 500000 | 27 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 11/12/2021 | 500000 | 500000 | 27 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 11/29/2021 | 500000 | 500000 | 27 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 12/31/2018 | 10961129 | 10961129 | 600 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 2/27/2020 | 1000000 | 1000000 | 55 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 2/28/2022 | 200000 | 200000 | 11 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 3/25/2020 | 500000 | 500000 | 28 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 3/30/2022 | 150000 | 150000 | 8 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 3/8/2020 | 400000 | 400000 | 22 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 4/20/2021 | 1000000 | 1000000 | 55 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 4/6/2022 | 350000 | 350000 | 19 |

---

**See accompanying notes to financial statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *42*

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[**Table of Contents**](#toc)

**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments - continued**

 ***DECEMBER 31, 2025***

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY**<br> **(% OF NET**<br> **ASSETS)**<br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **INTRAOP MEDICAL CORP. (continued)** |  |  |  |  |  |  |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 6/10/2021 | 500000 | $500000 | $28 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 6/10/2022 | 700000 | 700000 | 38 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 7/12/2019 | 1300000 | 1300000 | 71 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 7/16/2021 | 500000 | 500000 | 27 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 7/31/2020 | 500000 | 500000 | 28 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 8/28/2020 | 750000 | 750000 | 41 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 15% | 9/22/2021 | 500000 | 500000 | 27 |
| Preferred Stock - Series C <sup>\*(1)(2)(4)</sup> |  |  | 7/12/2013 | 26856187 | 26299939 | 0 |
| Term Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | &nbsp;&nbsp;&nbsp;8&nbsp;&nbsp;&nbsp;% | 2/10/2017 | 2000000 | 2000000 | 110 |
| Term Note <sup>(1)(2)(4)(6)</sup> | December 31, 2026 | 8% | 2/28/2014 | 3000000 | 3000000 | 164 |
|  |  |  |  |  |  | **1523** |
| **LYNCEAN TECHNOLOGIES, INC.**<br> **(0.0%)**<br> **Semiconductor Equipment**<br> Preferred Stock - Series B <sup>\*(1)(4)</sup> |  |  | 7/3/2018 | 869792 | 1000000 | **0** |
| **REVASUM, INC.**<br> **(0.0%)**<br> **Semiconductor Equipment**<br> CDIs <sup>\*(2)(4)</sup> |  |  | 11/14/2016 - 10/3/2022 | 39774889 | 9268218 | **0** |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *43*

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[**Table of Contents**](#toc)

**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments - continued**

 ***DECEMBER 31, 2025***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY**<br> **(% OF NET**<br> **ASSETS)**<br> **AND INDUSTRY** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **UCT COATINGS, INC.**<br> **((71.3%))**<br> **Advanced Materials**<br> Common Stock <sup>\*(1)(3)(4)</sup> | 4/18/2011 | 1500000 | $662235 | $**167642** |
| **WRIGHTSPEED, INC.** |  |  |  |  |
| **(0.0%)**<br> **Automotive**<br> Common Stock <sup>\*(1)(2)(4)</sup> | 6/7/2019 | 69102 | 7460851 | 0 |
| Preferred Stock - Series AA <sup>\*(1)(2)(4)</sup> | 6/7/2019 -- 7/20/2020 | 60733693 | 17355887 | 0 |
|  |  |  |  | **0** |
| **INVESTMENT COMPANY**<br> **((23.9%))**<br> Fidelity Investments Money Market Treasury Portfolio - Class I 3.66%<sup>(5)(7)</sup> | *Various* | 56271 | 56271 | **56271** |
| **TOTAL INVESTMENTS**<br> **(Cost $89,914,530)**<br> — **(95.8%)** | **TOTAL INVESTMENTS**<br> **(Cost $89,914,530)**<br> — **(95.8%)** |  |  | **225436** |
| **OTHER LIABILITIES IN EXCESS OF OTHER ASSETS** — **195.8%** | **OTHER LIABILITIES IN EXCESS OF OTHER ASSETS** — **195.8%** |  |  | **(460564)** |
| **NET ASSETS** — **100.0%** | **NET ASSETS** — **100.0%** |  |  | $**(235128)** |

---

All investments except the Fidelity Investments Money Market Portfolio are considered qualifying investments.

---

| | |
|:---|:---|
| *CDI:* | *CHESS Depositary Interests.* |
| \* | Non-income producing security. |
| (*1*) | Restricted security. Fair Value is determined in good faith by Firsthand Capital Management, Inc. ("FCM" or the "Advisor") as the valuation designee under Rule *2a*-*5* under the *1940* Act, subject to oversight by the Board (see Note *3*). At *December 31, 2025,* we held $169,165 or (71.9)% of net assets) in restricted securities (see Note *2*). |
| (*2*) | Controlled investments. |
| (*3*) | Affiliated issuer. |
| (*4*) | Fair Value Level *3* security (-71.9% of net assets). |
| (*5*) | The Fidelity Investments Money Market Treasury Portfolio invests primarily in U.S. Treasury securities. |
| (*6*) | Security whose interest accrues until maturity however, based on *December 31, 2025* valuation *no* such interest accrued during period ended *December 31, 2025.* |
| (*7*) | The rate shown is the *7* day annualized yield at *December 31, 2025* |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *44*

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[**Table of Contents**](#toc)

**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments** 

 ***DECEMBER 31, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST**<br> **RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **EQX CAPITAL, INC.** |  |  |  |  |  |  |
| **(2.8%)**<br> **Equipment Leasing**<br> Common Stock <sup>\*(1)(2)(4)</sup> |  |  | 6/10/2016 | 100000 | $20000 | $0 |
| Preferred Stock - Series A <sup>\*(1)(2)(4)</sup> |  |  | 6/10/2016-11/7/2016 | 1930000 | 1930000 | 29466 |
|  |  |  |  |  |  | **29466** |
| **INTRAOP MEDICAL CORP.** |  |  |  |  |  |  |
| **(2.4%)**<br> **Medical Devices**<br> Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 10/11/2019 | 500000 | 500000 | 454 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 10/22/2021 | 1000000 | 1000000 | 909 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 10/29/2019 | 500000 | 500000 | 454 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 10/6/2021 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 11/12/2021 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 11/29/2021 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 12/31/2018 | 10961129 | 10961129 | 9966 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 2/27/2020 | 1000000 | 1000000 | 909 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 2/28/2022 | 200000 | 200000 | 182 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 3/25/2020 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 3/30/2022 | 150000 | 150000 | 136 |

---

**See accompanying notes to financial statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *45*

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[**Table of Contents**](#toc)

**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments - Continued**

 ***DECEMBER 31, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST** <br> **RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **INTRAOP MEDICAL CORP. (continued)** |  |  |  |  |  |  |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 3/8/2020 | 400000 | $400000 | $364 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 4/20/2021 | 1000000 | 1000000 | 909 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 4/6/2022 | 350000 | 350000 | 318 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 6/10/2021 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 6/10/2022 | 700000 | 700000 | 636 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 7/12/2019 | 1300000 | 1300000 | 1182 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 7/16/2021 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 7/31/2020 | 500000 | 500000 | 455 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 |  | 8/28/2020 | 750000 | 750000 | 682 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 15% | 9/22/2021 | 500000 | 500000 | 455 |
| Preferred Stock - Series C <sup>\*(1)(2)(4)</sup> |  |  | 7/12/2013 | 26856187 | 26299939 | 0 |
| Term Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 8% | 2/10/2017 | 2000000 | 2000000 | 1818 |
| Term Note <sup>(1)(2)(4)(6)</sup> | 12/31/2025 | 8% | 2/28/2014 | 3000000 | 3000000 | 2728 |
|  |  |  |  |  |  | **25287** |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *46*

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[**Table of Contents**](#toc)

**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments - continued**

 ***DECEMBER 31, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST** <br> **RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **LYNCEAN TECHNOLOGIES, INC.**<br> **(0.0%)**<br> **Semiconductor Equipment**<br> Preferred Stock - Series B <sup>\*(1)(4)</sup> |  |  | 7/3/2018 | 869792 | $1000000 | $**0** |
| **REVASUM, INC.**<br> **(0.0%)**<br> **Semiconductor Equipment**<br> CDIs <sup>\*(2)(4)</sup> |  |  | 11/14/2016-10/3/2022 | 39774889 | 9268218 | **0** |
| **UCT COATINGS, INC.**<br> **(24.5%)**<br> **Advanced Materials**<br> Common Stock <sup>\*(1)(3)(4)</sup> |  |  | 4/18/2011 | 1500000 | 662235 | **260497** |
| **WRIGHTSPEED, INC.** |  |  |  |  |  |  |
| **(0.0%)**<br> **Automotive**<br> Common Stock <sup>\*(1)(2)(4)</sup> |  |  | 6/7/2019 | 69102 | 7460851 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 1/10/2023 | 100000 | 100000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 10/20/2021 | 1000000 | 1000000 | 0 |
| Convertible Note<sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 10/21/2022 | 135000 | 135000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 10/23/2020 | 1050000 | 1050000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 10/5/2021 | 700000 | 700000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 11/11/2020 | 400000 | 400000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 11/14/2022 | 165000 | 165000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 11/23/2021 | 1000000 | 1000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 11/24/2020 | 375000 | 375000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 12/23/2020 | 2000000 | 2000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 12/11/2020 | 400000 | 400000 | 0 |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *47*

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments - continued**

 ***DECEMBER 31, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST** <br> **RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **WRIGHTSPEED, INC. (continued)** |  |  |  |  |  |  |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 12/28/2021 | 1000000 | $1000000 | $0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 12/9/2022 | 125000 | 125000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 2/23/2021 | 1400000 | 1400000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 2/23/2022 | 200000 | 200000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 3/11/2022 | 185000 | 185000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 4/12/2021 | 1200000 | 1200000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 4/14/2022 | 65000 | 65000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 5/10/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 5/18/2021 | 1000000 | 1000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 5/26/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 6/10/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 6/22/2021 | 1000000 | 1000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 6/28/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 6/7/2019 | 4929015 | 4929015 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 7/13/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 7/26/2021 | 1000000 | 1000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 7/28/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 8/12/2020 | 750000 | 750000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 8/12/2022 | 250000 | 250000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 8/19/2021 | 1000000 | 1000000 | 0 |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 9/10/2022 | 900000 | 900000 | 0 |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *48*

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Schedule of Investments -continued**

 ***DECEMBER 31, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **PORTFOLIO**<br> **COMPANY** <br> **(% OF NET**<br> **ASSETS)** <br> **AND INDUSTRY** | **MATURITY DATE** | **INTEREST**<br> **RATE** | **ACQUISITION**<br> **DATE** | **SHARES/PAR<br> VALUE ($)**  | **COST BASIS** | **VALUE** |
| **WRIGHTSPEED, INC. (continued)** |  |  |  |  |  |  |
| Convertible Note <sup>(1)(2)(4)(6)</sup> | 6/30/2025 | 12% | 9/22/2021 | 300000 | $300000 | $0 |
| Preferred Stock - Series AA <sup>\*(1)(2)(4)</sup> |  |  | 6/7/2019 - 7/20/2020 | 60733693 | 17355887 | 0 |
|  |  |  |  |  |  | **0** |
| **INVESTMENT COMPANY**<br> **(70.3%)**<br> Fidelity Investments Money Market Treasury Portfolio - Class I 4.34% <sup>(5)(7)</sup> |  |  | *Various* | 745224 | 745224 | **745224** |
| **TOTAL INVESTMENTS**<br> **(Cost $116,682,498)**<br> — **100.0%** | **TOTAL INVESTMENTS**<br> **(Cost $116,682,498)**<br> — **100.0%** |  |  |  |  | **1060474** |
| **OTHER ASSETS IN EXCESS OF LIABILITIES** — **0.0%** | **OTHER ASSETS IN EXCESS OF LIABILITIES** — **0.0%** |  |  |  |  | **205** |
| **NET ASSETS** — **100.0%** | **NET ASSETS** — **100.0%** |  |  |  |  | $**1060679** |

---

All investments except the Fidelity Investments Money Market Portfolio are considered qualifying investments.

---

| | |
|:---|:---|
| *CDI:* | *CHESS Depositary Interests.* |

---

\* Non-income producing security.

(*1*) Restricted security. Fair Value is determined by or under the direction of the Company's Board of Directors (see Note *3*). At *December 31, 2024,* we held $315,250 (or 29.7% of net assets) in restricted securities (see Note *2*).

(*2*) Controlled investments.

(*3*) Affiliated issuer.

(*4*) Fair Value Level *3* security (29.7% of net assets).

(*5*) The Fidelity Investments Money Market Treasury Portfolio invests primarily in U.S. Treasury securities.

(*6*) Security whose interest accrues until maturity however, based on *December 31, 2024* valuation *no* such interest accrued during period ended *December 31, 2024.*

(*7*) The rate shown is the *7* day annalized yield at *December 31, 2024.*

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *49*

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Statements of Operations**

---

| | | | |
|:---|:---|:---|:---|
|  | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2025** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2024** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2023** |
| **INVESTMENT INCOME** |  |  |  |
| Unaffiliated interest | $13754 | 29836 | $37275 |
| Affiliated/controlled interest |  | 80000 | 85356 |
| TOTAL INVESTMENT INCOME | 13754 | 109836 | 122631 |
| **EXPENSES** |  |  |  |
| Investment advisory fees (Note 4) | 21010 | 88487 | 455559 |
| Administration fees | 118014 | 115001 | 116785 |
| Custody fees |  | 4464 | 8743 |
| Transfer agent fees | 19585 | 26629 | 33296 |
| Registration and filing fees | 16556 | 4782 | 35300 |
| Professional fees | 810267 | 454285 | 398882 |
| Printing fees | 1000 | 2000 | 299958 |
| Directors' fees | 50000 | 50000 | 68750 |
| Deferred Directors' fees (Note 2) | (150227) | 200281 | (24909) |
| Compliance fees | 110336 | 112844 | 110336 |
| Insurance expense | 82952 | 70562 | 11216 |
| Miscellaneous fees | 35282 | 54412 | 69852 |
| TOTAL GROSS EXPENSES | 1114775 | 1183747 | 1583768 |
| Less waiver and/or reimbursement (Note 4) |  | (3088487) | (2542716) |
| TOTAL NET EXPENSES | 1114775 | (1904740) | (958948) |
| **NET INVESTMENT INCOME/(LOSS), BEFORE TAXES** | (1101021) | 2014576 | 1081579 |
| Tax Expense | 185047 | 139154 |  |
| **Net Investment Income/(Loss), net of taxes** | (1286068) | 1875422 | 1081579 |
| **Net Realized and Unrealized Gain (Loss) on Investments:** |  |  |  |
| Net realized gains (losses) from security transactions on: |  |  |  |
| Affiliated/controlled | (25942914) | (11686668) | (7864998) |
| Foreign currency | 82 |  | 16 |
| Net realized (Losses) | (25942832) | (11686668) | (7864982) |
| Net change in unrealized appreciation (depreciation) on: |  |  |  |
| Affiliated/controlled investments and foreign currency | 25933093 | 9611554 | (21615371) |
| Affiliated/controlled warrants investments (1) |  |  | (950446) |
| Net change in unrealized appreciation (depreciation) | 25933093 | 9611554 | (22565817) |
| **Net Realized and Unrealized (Loss) on Investments** | (9739) | (2075114) | (30430799) |
| **Net Decrease In Net Assets Resulting From Operations** | $(1295807) | $(199692) | $(29349220) |
| **Net Decrease In Net Assets Per Share Resulting From Operations (2)** | $(0.15) | $(0.03) | $(4.26) |

---

*(1)* *Primary exposure is equity risk.*

*(2)* *Per share results are calculated based on weighted average shares outstanding for each period.*

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Statements of Cash Flows** 

---

| | | | |
|:---|:---|:---|:---|
|  | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2025** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2024** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2023** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |
| Net increase (decrease) in Net Assets resulting from operations | $(1295807) | $(199692) | $(29349220) |
| Purchases of investments |  | (2441) | (140000) |
| Proceeds from disposition of investments | 176101 | 6272667 | 498425 |
| Net purchases/sales from short-term investments | 649198 | (672035) | 598921 |
| (Increase) decrease in dividends, interest, and reclaims receivable | 2366 | 5290 | 6302 |
| Increase (decrease) in due to Custodian | (127478) | 127478 |  |
| (Increase) decrease in receivable in investment sold | 325000 | (325000) |  |
| Increase (decrease) in payable to affiliates | (6577) | (7156195) | (2004405) |
| (Increase) decrease in other assets | 360536 | (341107) | 417 |
| Increase (decrease) in accrued expenses and other payables | (95590) | 215668 | (41878) |
| Net realized (gain) loss from investments | 25942832 | 11686668 | 7864982 |
| Net unrealized (appreciation) depreciation from investments | (25933093) | (9611554) | 22565817 |
| **Net cash provided by (used in) operating activities** | (2512) | (253) | (639) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |
| **Net cash provided by financing activities**  |  |  |  |
| Net increase (decrease) in cash | (2512) | (253) | (639) |
| Cash and foreign currency - beginning of year | 2512 | 2765 | 3404 |
| **Cash and foreign currency - end of year** | $— | $2512 | $2765 |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Statements of Changes in Net Assets** 

---

| | | | |
|:---|:---|:---|:---|
|  | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2025** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2024** | **FOR THE<br> YEAR ENDED<br> DECEMBER 31, 2023** |
| **FROM OPERATIONS:** |  |  |  |
| Net investment (loss) income, net of deferred taxes | $(1286068) | $1875422 | $1081579 |
| Net realized (loss) from security transactions, foreign currency and warrants transactions, net of deferred taxes | (25942832) | (11686668) | (7864982) |
| Net change in unrealized appreciation (depreciation) on investments net of deferred taxes | 25933093 | 9611554 | (22565817) |
| Net decrease in net assets from operations | (1295807) | (199692) | (29349220) |
| **FROM CAPITAL SHARE TRANSACTIONS:** |  |  |  |
| Value for shares redeemed |  |  |  |
| **TOTAL DECREASE IN NET ASSETS** | (1295807) | (199692) | (29349220) |
| **NET ASSETS:** |  |  |  |
| Beginning of year | 1060679 | 1260371 | 30609591 |
| End of year | $(235128) | $1060679 | $1260371 |
| **COMMON STOCK ACTIVITY:** |  |  |  |
| Shares redeemed | (516) |  |  |
| Net increase (decrease) in shares outstanding | (516) |  |  |
| Shares outstanding, beginning of year | 6893056 | 6893056 | 6893056 |
| Shares outstanding, end of year | 6892540 | 6893056 | 6893056 |

---

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 52

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**Firsthand Technology Value Fund, Inc.** 

**Consolidated Financial Highlights**

 ***Selected per share data and ratios for a share outstanding throughout each year***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **FOR THE<br> YEAR ENDED DECEMBER 31, 2025** | **FOR THE<br> YEAR ENDED DECEMBER 31, 2024** | **FOR THE<br> YEAR ENDED DECEMBER 31, 2023** | **FOR THE<br> YEAR ENDED DECEMBER 31, 2022** | **FOR THE<br> YEAR ENDED DECEMBER 31, 2021** |
| Net asset value at beginning of year | $0.15 | $0.18 | $4.44 | $13.75 | $14.82 |
| Income from investment operations: |  |  |  |  |  |
| Net investment income gains/(losses)<sup>(1)</sup> | (0.19) | 0.27 | 0.16 | (1.81) | 0.44 |
| Net realized and unrealized gains/(losses) on investments | 0.04\* | (0.30) | (4.42) | (7.50) | (1.51) |
| Total from investment operations | (0.15) | (0.03) | (4.26) | (9.31) | (1.07) |
| *Distributions from:* | *Distributions from:* | *Distributions from:* | *Distributions from:* | *Distributions from:* | *Distributions from:* |
| Realized capital gains |  | *—* |  |  |  |
| Anti-dilutive effect from capital share transactions |  | *—* |  |  |  |
| Net asset value at end of year | $0.00 | $0.15 | $0.18 | $4.44 | $13.75 |
| Market value at end of year | $0.02 | $0.06 | $0.30 | $0.95 | $4.01 |
| Total Return |  |  |  |  |  |
| Based on Net Asset Value | (100.00)% | (16.67)% | (95.95)% | (67.71)% | (7.22)% |
| Based on Market Value | (66.67)% | (80.00)% | (68.42)% | (76.31)% | (10.29)% |
| Net assets at end of year (millions) | $(0.2) | $1.1 | $1.3 | $30.6 | $94.8 |
| Ratio of total expenses to average net assets: |  |  |  |  |  |
| Before tax (benefit)/expense | 195.30% | (195.48)% | (7.21)% | 4.11% | 3.12% |
| Tax expense<sup>(2)(3)</sup> | 32.42% | 14.28% |  |  |  |
| Total expenses | 227.72% | (181.20)% | (7.21)% | 4.11% | 3.12% |
| Total expenses, excluding incentive fees and deferred tax expense | 195.30% | (195.48)% | (7.21)% | 4.11% | 3.12% |
| Total expenses, excluding incentive fees and deferred tax expense and fee waiver | 195.30% | 121.49% | 11.91% | 4.11% | 3.12% |
| Ratio of net investment income (loss) to average net assets: |  |  |  |  |  |
| Net investment income (loss) | (225.32)% | 206.76% | 8.13% | (20.96)% | 2.94% |
| Net investment income (loss) before fee waiver | (225.32)% | (110.22)% | (10.99)% | (20.96)% | 2.94% |
| Portfolio turnover rate | 0% | 0% | 1% | 15% | 16% |

---

*(*1*)* *Calculated using average shares outstanding.*

*(*2*)* *Tax expense estimate is derived from net investment income (loss), and realized and unrealized gains (losses).*

*(*3*)* *The tax expense and tax benefit are based on average net assets.*

\* *Includes an adjustment of 0.04 to increase the NAV to 0.00*

**See accompanying notes to financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53

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**Firsthand Technology Value Fund, Inc.** 

**Notes to Consolidated Financial Statements** 

**DECEMBER 31, 2025**

**NOTE *1.* THE COMPANY** 

Firsthand Technology Value Fund, Inc. (the "Company," the "Fund," "us," "our," and "we"), is a Maryland corporation and an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company ("BDC") under the Investment Company Act of *1940,* as amended (the *"1940* Act"). The Company acquired its initial portfolio of securities through the reorganization of Firsthand Technology Value Fund, a series of Firsthand Funds, into the Company. The reorganization was completed on *April 15, 2011.* The Company commenced operations on *April 18th,* 2011. Under normal circumstances, the Company will invest at least 80% of its assets for investment purposes in technology companies, which are considered to be those companies that derive at least 50% of their revenues from products and/ or services within the information technology sector or 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 will invest at least 70% of our assets in privately held companies and in public companies with market capitalizations 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 have generally ranged between $1 million and $10 million each, although the investment size will vary proportionately with the size of the Company's capital base. The Company's shares as of *September 30. 2023* were listed on the NASDAQ Global Market under the symbol "SVVC." Subsequent to *September 30,* on *October 6, 2023,* the Company notified NASDAQ of the fund's intention to voluntarily delist. As of the date these financial statements were issued the Company's shares are quoted on the OTCQB market under the symbol "SVVC." Firsthand Capital Management, Inc., which was previously known as SiVest Group, Inc. ("FCM" or the "Advisor"), serves as the investment adviser to the Company.

On *October 13, 2023,* the Fund issued a press release announcing a plan to seek shareholder approval to withdraw its BDC election and pursue liquidation.

The Company is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic *946.*

**CONSOLIDATION OF SUBSIDIARIES.** On *May 8, 2015,* the Board of Directors of the Company approved the formation of a fully owned and controlled subsidiary (as defined by the *1940* Act) of the Company named Firsthand Venture Investors ("FVI"), a California general partnership formed on *March 30, 2015.* After the close of business on *June 30, 2015,* the Company contributed substantially all of its assets to FVI in return for a controlling general partner ownership interest in FVI. The transaction was completed on *July 1, 2015.* Under this structure, we have all or substantially all of our investment activities conducted through our fully owned subsidiary, FVI.

During the fiscal years ended *December 31, 2016* and *2017,* with the approval of its Board of Directors, the Company organized three separate fully owned and controlled subsidiaries (as defined by the *1940* Act). Each subsidiary was a Cayman Islands corporation and the financial statements of each subsidiary were reported on a consolidated basis with the Company. Each subsidiary was formed for the purpose of holding *one* or more investments made by the Company, and was treated as a controlled foreign corporation under the Internal Revenue Code *not* separately subject to U.S. federal income tax. FVI was treated as the sole U.S. shareholder of each subsidiary.

The Board of Directors of the Company approved the liquidation of those three Cayman subsidiaries on *November 2, 2018.* That liquidation was completed on *December 27, 2018.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *54*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**NOTE *2.* SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

The following is a summary of significant accounting policies followed in the preparation of the Company's financial statements included in this report:

**BASIS OF PRESENTATION.** The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the requirements on Form *10*-K. ASC *946, Financial Services*—*Investment Companies* ("ASC *946"*), and Articles *6, 10* and *12* of Regulation S-*X.* In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of the financial statements for the periods presented, have been included.

Under the *1940* Act, ASC *946,* and the regulations pursuant to Article *6* of Regulation S-*X,* we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us. Consequentially, as of *December 31, 2018,* the Company consolidated some special purpose entities. These special purpose entities only hold investments of the Company and have *no* other significant asset and liabilities. All significant intercompany transactions and balances have been eliminated in consolidation.

**USE OF ESTIMATES.** The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

**PORTFOLIO INVESTMENT VALUATIONS.** Investments are stated at "value" as defined in the *1940* Act and in the applicable regulations of the Securities and Exchange Commission and in accordance with GAAP. Value, as defined in Section *2*(a)(*41*) of the *1940* Act, is (i) the market value of those securities for which a market quotation is readily available and (ii) the fair value as determined in good faith by the Advisor as the valuation designee appointed by the Board of Directors, and subject to oversight by the Board of Directors. On *December 31, 2025,* our financial statements include venture capital investments valued at approximately $0.2 million. The fair values of our venture capital investments were also determined by the Advisor as the valuation designee. Upon sale of these investments, the values that are ultimately realized *may* be different from what is presently estimated. The difference could be material. Also see note *6* regarding the fair value of the company's investments.

**CASH AND CASH EQUIVALENTS.** The Company considers liquid assets deposited with a bank, investments in money market funds, and certain short-term debt instruments with maturities of *three* months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay our expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates market value.

**RESTRICTED SECURITIES.** At *December 31, 2025,* we held $169,165 in restricted securities. At *December 31, 2024,* we held $315,250 in restricted securities.

**INCOME RECOGNITION.** Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Other non-cash dividends are recognized as investment income at the fair value of the property received. When debt securities are determined to be non-income producing, the Company ceases accruing interest and writes off any previously accrued interest. These write-offs are recorded as an adjustment to interest income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *55*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**SHARE VALUATION.** The net asset value ("NAV") per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent.

**REALIZED GAIN OR LOSS AND UNREALIZED APPRECIATION OR DEPRECIATION OF PORTFOLIO INVESTMENTS.** A realized gain or loss is recognized when an investment is disposed of and is computed as the difference between the Company's cost basis in the investment at the disposition date and the net proceeds received from such disposition. Realized gains and losses are calculated on a specific identification basis. Unrealized appreciation or depreciation is computed as the difference between the fair value of the investment and the cost basis of such investment.

**INCOME TAXES.** The Company provides for state and federal corporate income tax, as appropriate, because it is regarded as a corporation under Subchapter C of the Code. The Company recognizes interest and penalties in income tax expense.

**FOREIGN CURRENCY TRANSLATION.** The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the foreign exchange rate on the date of valuation. The Company does *not* isolate that portion of the results of operation resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company's investments in foreign securities *may* involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social, or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

**SECURITIES TRANSACTIONS.** Securities transactions are accounted for on the date the transaction for the purchase or sale of the securities is entered into by the Company (i.e., trade date).

**CONCENTRATION OF CREDIT RISK.** The Company places its cash and cash equivalents with financial institutions and, at times, cash held in checking accounts *may* exceed the Federal Deposit Insurance Corporation insured limit.

**OPTIONS.** The Company is subject to equity price risk in the normal course of pursuing its investment objectives and *may* enter into options written to hedge against changes in the value of equities. The Company *may* purchase put and call options to attempt to provide protection against adverse price effects from anticipated changes in prevailing prices of securities or stock indices. The Company *may* also write put and call options. When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written.

Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Company has realized a gain or loss. The Company as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *56*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**DEFERRED COMPENSATION.** On *December 26, 2022,* the Company adopted a deferred compensation plan (the "Plan") for its eligible directors which allows such directors to defer some or all of their fees for services as Directors to the Fund. Under the terms of the Plan, deferred compensation withheld is notionally invested in the Fund's common stock using the net asset value per share on the date such compensation would have otherwise been payable. The amounts deferred are booked as a liability on the Company's balance sheet, and the value of that liability will track the net asset value of the Company's common stock, as if it were invested in that common stock. The payments due to eligible participants are valued using the net asset value of the fund at the time the payments are due. As of *December 31, 2025,* each of the Fund's eligible directors has deferred 50% of their *2026* and *2025* compensation to the earlier of *January 1, 2027,* and *January 1, 2026,* respectively, or their separation of service from the Fund. Since the value of the notional shares track the Fund's NAV on a quarterly basis, the accrued liability and expense for directors' fees *may* fluctuate significantly quarter to quarter in response to fluctuations in the Fund's NAV. It is intended and expected that any eventual payout of the accrued liability calculated based on the notional shares shall be commensurate with the deferred portion of director compensation and would only be greater if the Fund's NAV increased subsequent to the date(s) of the quarterly compensation deferral.

**SEGMENT REPORTING** In accordance with the FASB Accounting Standards Update *2023*-*07,* Segment Reporting (Topic *280*): Improvements to Reportable Segment Disclosures ("ASU *2023*-*07"*), the Fund has evaluated its business activities and determined that it operates as a single reportable segment. The Fund's investment activities are managed by the Principal Financial Officer, which serves as the Chief Operating Decision Maker ("CODM"). The Principal Officer is responsible for assessing the Fund's financial performance and allocating resources. In making these assessments, the Principal Financial Officer evaluates the Fund's financial results on an aggregated basis, rather than by separate segments, As such, the Fund does *not* allocate operating expenses or assets to multiple segments, and accordingly, *no* additional segment disclosures are required. There were *no* intra-entity sales or transfer during the reporting period.. The Fund primarily generates income through dividends, interest, and realized/unrealized gains on its investment portfolio. Expenses incurred, including management fees, fund operating expenses, and transaction costs, are considered general Fund-level expenses and are *not* allocated to specific segments or business lines. Management has determined that the Fund does *not* meet the criteria for disaggregated segment reporting under ASU *2023*-*07* and will continue to evaluate its reporting requirements in accordance with applicable accounting standards.

**NOTE *3.* BUSINESS RISKS AND UNCERTAINTIES** 

We invest a substantial portion of our assets in privately-held companies, the securities of which are inherently illiquid. We also seek to invest in small publicly-traded companies that we believe have exceptional growth potential and to make opportunistic investments in publicly-traded companies, both large and small. In the case of investments in small publicly-traded companies, although these companies are publicly traded, their stock *may not* trade at high volumes, and prices can be volatile, which *may* restrict our ability to sell our positions. We *may* also be subject to contractual restrictions or securities law limits on our ability to sell portfolio holdings because of, for example, our affiliation with a portfolio company or the relative size of our holding in a company. These privately held and publicly traded businesses tend to lack management depth, have limited or *no* history of operations and typically have *not* attained profitability. Because of the speculative nature of our investments and the lack of public markets for privately held investments, there is greater risk of loss than is the case with traditional investment securities.

We do *not* choose investments based on a strategy of diversification. We also do *not* rebalance the portfolio should *one* of our portfolio companies increase in value substantially relative to the rest of the portfolio. Therefore, the value of our portfolio *may* be more vulnerable to events affecting a single sector, industry or portfolio company and, therefore, *may* be subject to greater volatility than a company that follows a diversification strategy.

Because there is typically *no* public or readily-ascertainable market for our interests in the small privately-held companies in which we invest, the valuation of those securities is determined in good faith by the Valuation Committee, comprised of all members of the Board who are *not* "interested persons" of the Company, as such term is defined in Section *2*(a)(*19*) of the *1940* Act, in accordance with our Valuation Procedures and is subject to significant estimates and judgments. The determined value of the securities in our portfolio *may* differ significantly from the values that would be placed on these securities if a ready market for the securities existed. Any changes in valuation are recorded in our Statement of Operations as "Net increase (decrease) in unrealized appreciation on investments." Changes in valuation of any of our investments in privately-held companies from *one* period to another *may* be volatile.

The Board has engaged an independent valuation firm to provide it with valuation assistance with respect to certain of our portfolio investments. The Company intends to continue to engage an independent valuation firm to provide us with assistance regarding our determination of the fair value of select portfolio investments each quarter unless directed by the Board to cancel such valuation services. The scope of the services rendered by an independent valuation firm is at the discretion of the Board. The Board is ultimately and solely responsible for determining the fair value of the Company's investments in good faith.

With respect to investments for which market quotations are *not* readily available or when such market quotations are deemed *not* to represent fair value, the Board has approved a multi-step valuation process to be followed each quarter, as described below:

(*1*) each quarter the valuation process begins with each portfolio company or investment being initially valued by the Advisor's Valuation Committee or the independent valuation firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *57*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

(*2*) the Valuation Committee of the Board on a quarterly basis reviews the preliminary valuation of the Advisor's Valuation Committee and that of the independent valuation firms and makes the fair value determination, in good faith, based on the valuation recommendations of the Advisor's Valuation Committee and the independent valuation firms; and

(*3*) at each quarterly Board meeting, the Board considers the valuations recommended by the Advisor's Valuation Committee and the independent valuation firms that were previously submitted to the Valuation Committee of the Board and ratifies the fair value determinations made by the Valuation Committee of the Board.

**NOTE *4.* INVESTMENT MANAGEMENT FEE** 

The Company has entered into an investment management agreement (the "Investment Management Agreement") with FCM pursuant to which the Company will pay FCM a fee for providing investment management services consisting of *two* components—a base management fee and an incentive fee.

The base management fee will be calculated at an annual rate of 2.00% of our gross assets. For services rendered under the Investment Management Agreement, the base management fee will be payable quarterly in arrears. The base management fee will be calculated based on the average of (*1*) the value of our gross assets at the end of the current calendar quarter and (*2*) the value of the Company's gross assets at the end of the preceding calendar quarter; and will be appropriately adjusted for any share issuances or repurchases during the current calendar quarter. Base management fees for any partial month or quarter will be pro-rated.

The incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date), commencing on *April 15, 2011,* and equals 20% of the Company's realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fees, provided that the incentive fee determined as of *December 31, 2025,* will be calculated for a period of shorter than *twelve* calendar months to take into account any realized gains computed net of all realized capital losses and unrealized capital depreciation from inception. For the year ended *December 31, 2025,* there were no Incentive fee adjustments. For the year ended *December 31, 2024,* there were no incentive fee adjustments. For the year ended *December 31, 2023,* there were no incentive fee adjustments.

Effective *September 30, 2023,* the Company entered into a fee waiver agreement with FCM (the "Fee Waiver Agreement"). Pursuant to the terms of the Fee Waiver Agreement, FCM agreed to (*1*) waive future accruals of the base management fee starting *October 1, 2023,* through *December 31, 2024,* with future recoupment to the extent permitted by the Investment Management Agreement, and (*2*) waive $2.5 million of base management fee that has been accrued but unpaid prior to but unpaid as of *September 30, 2023.* Any accrued base management fee waived under section (*2*) *may* be recouped by FCM within *ten* years.

Effective *March 31, 2024,* the Company entered into a fee waiver agreement with FCM (the "Fee Waiver Agreement"). Pursuant to the terms of the Fee Waiver Agreement, FCM agreed to waive $3.0 million of base management fee that has been accrued but unpaid prior to but unpaid as of *March 31, 2024.* Any accrued base management fee waived *may* be recouped by FCM within *ten* years.

**NOTE *5.* DEBT** 

The Company currently has *no* plan to use leverage and does *not* have any significant outstanding debt obligations (other than normal operating expense accruals).

**NOTE *6.* FAIR VALUE** 

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.

Securities and other assets that do *not* have market quotations readily available are valued at their fair value as determined by FCM, as the Board's valuation designee under SEC rule *2a*-*5.* Those valuations are determined in accordance with the Valuation Procedures used by FCM, subject to oversight by the Board.

In pricing illiquid, privately placed securities, FCM, as the valuation designee, is responsible for (*1*) determining overall valuation guidelines and (*2*) ensuring that the investments of the Company are valued within the prescribed guidelines.

FCM and the Board receive information and recommendations from an independent valuation firm.

The values assigned to these investments are based on available information and do *not* necessarily represent amounts that might ultimately be realized when that investment is sold, as such amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated or become readily marketable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *58*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**APPROACHES TO DETERMINING FAIR VALUE. GAAP.** defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In effect, GAAP applies fair value terminology to all valuations whereas the *1940* Act applies market value terminology to readily marketable assets and fair value terminology to other assets.

The main approaches to measuring fair value utilized are the market approach, the income approach, and the asset-based approach. The choice of which approach to use in a particular situation depends on the specific facts and circumstances associated with the company, as well as the purpose for which the valuation analysis is being conducted. Firsthand and the independent valuation firm rely primarily on the market approach. We also considered the income and asset-based approaches in our analysis because certain of the portfolio companies do *not* have substantial operating earnings relative to the value of their underlying assets.

- Market Approach (M): The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. For example, the market approach often uses market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range each appropriate multiple falls requires the use of judgment in considering factors specific to the measurement (qualitative and quantitative).

- Income Approach (I): The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. Those valuation techniques include present value techniques; option-pricing models, such as the Black-Scholes-Merton formula (a closed-form model) and a binomial model (a lattice model), which incorporate present value techniques; and the multi-period excess earnings method, which is used to measure the fair value of certain assets.

- Asset-Based Approach (A): The asset-based approach examines the value of a company's assets net of its liabilities to derive a value for the equity holders.

**FAIR VALUE MEASUREMENT.** In accordance with the guidance from the Financial Accounting Standards Board on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level *1* measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level *3* measurements).

The guidance establishes *three* levels of the fair value hierarchy as follows:

---

| | |
|:---|:---|
| **Level *1* -** | Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the date of measurement. |

---

---

| | |
|:---|:---|
| **Level *2* -** | Observable inputs other than quoted prices included in Level *1* that are observable for the asset or liability, either directly or indirectly. These inputs *may* include quoted prices for the identical instrument in an inactive market, prices for similar instruments in an active or inactive market, interest rates, prepayment speeds, credit risks, yield curves, default rates, and similar data. |

---

---

| | |
|:---|:---|
| **Level *3* -** | Unobservable inputs for the asset or liability, to the extent relevant observable inputs are *not* available, representing the Company's own assumptions about the assumptions a market participant would use in valuing the asset or liability based on the best information available. |

---

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and *not* yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level *3.*

The inputs used to measure fair value *may* fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are *not* necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Company's net assets as of *December 31, 2025:*

---

| | | | |
|:---|:---|:---|:---|
| **ASSETS** | **LEVEL 1<br> QUOTED PRICES** | **LEVEL 2 OTHER<br> SIGNIFICANT<br> OBSERVABLE INPUTS** | **LEVEL 3 SIGNIFICANT<br> OBSERVABLE INPUTS** |
| Common Stocks |  |  |  |
| Advanced Materials | $— | $— | $167642 |
| &nbsp;&nbsp;&nbsp;Automotive |  |  | 0 |
| Total Common Stocks |  |  | 167642 |
| Preferred Stocks |  |  |  |
| &nbsp;&nbsp;&nbsp;Automotive |  |  | 0 |
| &nbsp;&nbsp;&nbsp;Medical Devices |  |  | 0 |
| &nbsp;&nbsp;&nbsp;Semiconductor Equipment |  |  | 0 |
| Total Preferred Stocks |  |  | 0 |
| Convertible Notes and Non-Convertible Notes |  |  |  |
| &nbsp;&nbsp;&nbsp;Automotive |  |  | 0 |
| Medical Devices |  |  | 1523 |
| &nbsp;&nbsp;&nbsp;Semiconductor Equipment |  |  | 0 |
| Total Convertible and Non-Convertible Notes |  |  | 1523 |
| Investment Companies | 56271 |  |  |
| Total | $56271 | $— | $169165 |

---

At the end of each calendar quarter, management evaluates the Level *2* and Level *3* assets and liabilities for changes in liquidity, including but *not* limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from *third* party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level *1* and Level *2* assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *59*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

The following is a summary of the inputs used to value the Company's net assets as of *December 31, 2024.*

---

| | | | |
|:---|:---|:---|:---|
| **ASSETS** | **LEVEL 1<br> QUOTED PRICES** | **LEVEL 2 OTHER<br> SIGNIFICANT<br> OBSERVABLE INPUTS** | **LEVEL 3 SIGNIFICANT<br> OBSERVABLE INPUTS** |
| Common Stocks |  |  |  |
| Advanced Materials | $- | $- | $260497 |
| &nbsp;&nbsp;&nbsp;Automotive |  |  | 0 |
| &nbsp;&nbsp;&nbsp;Equipment Leasing |  |  | 0 |
| Total Common Stocks |  |  | 260497 |
| Preferred Stocks |  |  |  |
| &nbsp;&nbsp;&nbsp;Automotive |  |  |  |
| Equipment Leasing |  |  | 29466 |
| &nbsp;&nbsp;&nbsp;Medical Equipment |  |  | 0 |
| &nbsp;&nbsp;&nbsp;Semiconductor Equipment |  |  | 0 |
| Total Preferred Stocks |  |  | 29466 |
| Convertible and Non-Convertible Notes |  |  |  |
| &nbsp;&nbsp;&nbsp;Automotive |  |  | 0 |
| Medical Devices |  |  | 25287 |
| &nbsp;&nbsp;&nbsp;Semiconductor Equipment |  |  | 0 |
| Total Convertible and Non-Convertible Notes |  |  | 25287 |
| Investment Companies | 745224 |  |  |
| Total | $745224 | $- | $315250 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *60*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

Following is a reconciliation of Level *3* assets (at either the beginning or the ending of the period) for which significant unobservable inputs were used to determine fair value.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INVESTMENTS AT FAIR VALUE USING SIGNIFICANT UNOBSERVABLE INPUTS**<br> **(LEVEL 3)** | **BALANCE<br> AS OF 12/31/24** | **NET PURCHASES/<br> CONVERSIONS** | **NET<br> SALES/<br> CONVERSIONS** | **NET<br> REALIZED GAINS/<br> (LOSSES)** | **NET<br> UNREALIZED APPRECIATION (DEPRECIATION)<sup>(1)</sup>** | **TRANSFERS IN (OUT) OF LEVEL 3** | **BALANCE<br> AS OF 12/31/25** |
| **Common Stocks** |  |  |  |  |  |  |  |
| Advanced Materials | $260497 | $— | $— | $— | $(92855) | $— | $167642 |
| Equipment Leasing |  |  |  | (20000) | 20000 |  |  |
| Total Common Stocks | 260497 |  |  | (20000) | (72855) |  | 167642 |
| **Preferred Stocks** |  |  |  |  |  |  |  |
| Equipment Leasing | 29466 |  | (8623) | (1921377) | 1900534 |  |  |
| Total Preferred Stocks | 29466 |  | (8623) | (1921377) | 1900534 |  |  |
| **Convertible and Non-Convertible Notes** |  |  |  |  |  |  |  |
| Automotive |  |  |  | (24129015) | 24129015 |  |  |
| Medical Devices | 25287 |  |  |  | (23764) |  | 1523 |
| Total Convertible and Non-Convertible Notes | 25287 |  |  | (24129015) | 24105251 |  | 1523 |
| Total | $315250 | $— | $(8623) | $(26070392) | $25932930 | $— | $169165 |

---

*(*1*)* *The net change in unrealized appreciation (depreciation) from Level *3* instruments held as of *December 31, 2025* was $(116619).*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *61*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

Following is a reconciliation of Level *3* assets (at either the beginning or the ending of the period) for which significant unobservable inputs were used to determine fair value as of *December 31, 2024.*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INVESTMENTS AT FAIR VALUE USING SIGNIFICANT UNOBSERVABLE INPUTS**<br> **(LEVEL 3)** | **BALANCE<br> AS OF 12/31/23** | **NET PURCHASES/<br> CONVERSIONS** | **NET<br> SALES/<br> CONVERSIONS** | **NET<br> REALIZED GAINS/<br> (LOSSES)** | **NET<br> UNREALIZED APPRECIATION (DEPRECIATION)(1)** | **TRANSFERS IN (OUT) OF LEVEL 3** | **BALANCE<br> AS OF 12/31/24** |
| **Common Stocks** |  |  |  |  |  |  |  |
| Advanced Materials | $299932 | $- | $- | $- | $(39435) | $- | $260497 |
| Equipment Leasing | 55 |  |  |  | (55) |  |  |
| Semiconductor Equipment |  |  |  |  | (3862405) | 3862405 |  |
| Total Common Stocks | 299987 |  |  |  | (3901895) | 3862405 | 260497 |
| **Preferred Stocks** |  |  |  |  |  |  |  |
| Aerospace |  | 2441 | (156405) | (11083138) | 11237102 |  |  |
| Equipment Leasing | 110172 |  | (20000) |  | (60706) |  | 29466 |
| Total Preferred Stocks | 110172 | 2441 | (176405) | (11083138) | 11176396 |  | 29466 |
| **Convertible and Non-Convertible Notes** |  |  |  |  |  |  |  |
| Advanced Materials | 100000 |  | (100000) |  |  |  |  |
| Aerospace | 4200000 |  | (5956261) | (603530) | 2359791 |  |  |
| Automotive |  |  | (40000) |  | 40000 |  |  |
| Medical Devices | 87713 |  |  |  | (62426) |  | 25287 |
| Total Convertible and Non-Convertible Notes | 4387713 |  | (6096261) | (603530) | 2337365 |  | 25287 |
| Total | $4797872 | $2441 | $(6272666) | $(11686668) | $9611866 | $3862405 | $315250 |

---

*(*1*)* *The net change in unrealized appreciation (depreciation) from Level *3* instruments held as of *December 31, 2024* was $9,611,866.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *62*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

The table below represents quantitative disclosure about significant unobservable inputs for Level *3* fair value measurements at *December 31, 2025:*

---

| | | | |
|:---|:---|:---|:---|
|  | **FAIR** <br> **VALUE AT** <br> **12/31/25** | **VALUATION TECHNIQUES<sup>(1)</sup>** | **RANGE** <br> **(WEIGHTED AVG.)(2)** |
| Direct venture capital investments: Advanced Materials | $0.2M | Market Comparable Companies <br> Option Pricing Model<br> Revenue Multiple<sup>(3)</sup> <br> Years to Maturity<sup>(3)</sup><br> Volatility<sup>(3)</sup><br> Risk-Free Rate<sup>(3)</sup><br> Discount for Lack of Marketability<sup>(4)</sup> | 0.8x – 0.9x (0.9x)<br> 5 years (5 years)<br> 50.0% (50%)<br> 3.73% (3.73%)<br> 22.8% (22.8%) |
| Direct venture capital investments: Automotive | $0.0M | *Liquidation Value* Market Value of Invested Capital<sup>(3)</sup> | $0 ($0) |
| Direct venture capital investments: Medical Devices | $0.0M | Market Comparable Companies<br> Market Comparable Transactions<br> Revenue Multiple<sup>(3)</sup> <br> Risk Free Rate<sup>(3)</sup><br> Going Concern Probability<sup>(2)</sup><br> Volatility<sup>(3)</sup>  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.4x – 0.5x (0.5x)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.55% (3.55%)<br> 5% (5%)<br> 55% (55%) |
| Direct venture capital investments: Semiconductor Equipment | $0.0M | *Recent Transactions* Equity Proceeds from Private Transactions<sup>(3)</sup> | $0 ($0) |

---

*(*1*)* *There were *no* changes to the valuation techniques applied between *December 31, 2024* and *December 31, 2025.*

*(*2*)* *Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.*

*(*3*)* *An increase in the input would result in an increase in the security*'*s valuation; a decrease in the input would result in a decrease in the security*'*s valuation.* 

*(*4*)* *An increase in the inputs would result in a decrease in the securities valuation; a decrease in the input would result in an increase in the security's valuation.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *63*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

Changes in any of our unobservable inputs, individually, *may* change the fair value of certain of the Company's investments.

Due to the inherent uncertainty of determining the fair value of investments that do *not* have a readily available market value, the fair value of the Company's investments *may* fluctuate from period to period. Additionally, the fair value of the Company's investments *may* differ significantly from the values that would have been used had a ready market existed for such investments and *may* differ materially from the values that the Company *may* ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it.

In addition, changes in the market environment and other events that *may* occur over the life of the investments *may* cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. The below chart represents quantitative disclosure about significant unobservable inputs for Level *3* fair value measurements at *December 31, 2024:*

---

| | | | |
|:---|:---|:---|:---|
|  | **FAIR** <br> **VALUE AT** <br> **12/31/24** | **VALUATION TECHNIQUES<sup>(1)</sup>** | **RANGE** <br> **(WEIGHTED AVG.)(2)** |
| Direct venture capital investments: Advanced Materials | $0.3M | Market Comparable Companies <br> Option Pricing Model<br> Revenue Multiple<sup>(3)</sup> <br> Years to Maturity<sup>(3)</sup><br> Volatility<sup>(3)</sup><br> Risk-Free Rate<sup>(3)</sup><br> Discount for Lack of Marketability<sup>(4)</sup> | 0.8x – 1.0x (1.0x)<br> 5 years (5 years)<br> 50.0% (50%)<br> 4.38% (4.38%)<br> 22.8% (22.8%) |
| Direct venture capital investments: Automotive | $0.0M | *Liquidation Value*<br> Market Value of Invested Capital<sup>(3)</sup> | $0 ($0) |
| Direct venture capital investments: Equipment Leasing | $0.0M | Cash Value<br> Option Pricing Model<br> Years to Maturity<sup>(3)</sup> <br> Volatility<sup>(3)</sup> <br> Risk-Free Rate<sup>(3)</sup>  | 5 years (5 years)<br> 50.0% (50.0%)<br> 4.38% (4.38%) |
| Direct venture capital investments: Medical Devices | $0.0M | Market Comparable Companies<br> Market Comparable Transactions<br> Revenue Multiple<sup>(3)</sup> <br> Risk Free Rate<sup>(3)</sup><br> Going Concern Probability<sup>(2)</sup><br> Volatility<sup>(3)</sup>  | 0.7x – 1.1x (0.9x)<br> 4.27% (4.27%)<br> 10% (10%)<br> 55% (55%) |
| Direct venture capital investments: Semiconductor Equipment | $0.0M | *Recent Transactions*<br> Equity Proceeds from Private Transactions<sup>(3)</sup>  | $0 ($0) |

---

*(*1*) There were *no* changes to the valuation techniques applied between *December 31, 2024* and *December 31, 2025.*<br>

*(*2*)* *Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.*

*(*3*)* *An increase in the input would result in an increase in the security*'*s valuation; a decrease in the input would result in a decrease in the security*'*s valuation.* 

*(*4*)* *An increase in the inputs would result in a decrease in the securities valuation; a decrease in the input would result in an increase in the security's valuation.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *64*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**NOTE *7.* FEDERAL INCOME TAXES** 

Beginning in *2018,* we were *no* longer able to qualify as a RIC under Subchapter M of the Code. The increase in value that resulted from the initial public offerings (IPOs) of Pivotal Systems and Revasum meant that we were *no* longer able to satisfy the diversification requirements for qualification as a RIC. As a result of this change, we were taxed as a corporation for our fiscal year ended *December 31, 2018,* and will continue to be taxed in that manner for future fiscal years, paying federal and applicable state corporate taxes on our taxable income, unless and until we are able to once again qualify as a RIC, based on changes in the composition of our portfolio. Consequently, at the close of each fiscal quarter beginning with the quarter ended *June 30, 2018,* we will record a deferred tax liability for any net realized gains and net ordinary income for the year-to-date period plus net unrealized gains as of the end of the quarter.

The reorganization described in Note *1* (the formation of FVI as a fully owned subsidiary for investment activities) was structured to avoid any adverse tax consequences for the Company and its shareholders. For the fiscal years which the Company operates as a RIC, we believe Company's engaging in investment activities through FVI did *not,* in our view, jeopardize the Company's ability to continue to qualify as a RIC under the Code at that time when the Company was eligible to be treated as a RIC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *65*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | |
|:---|:---|
| The following information is based upon the U.S. federal income tax cost of portfolio investments as of December 31, 2025. | The following information is based upon the U.S. federal income tax cost of portfolio investments as of December 31, 2025. |
|  | **FEDERAL INCOME<br> TAX COST:** |
| Gross unrealized appreciation |  |
| Gross unrealized depreciation | $(89689094) |
| Net unrealized depreciation | $(89689094) |
| Federal income tax cost, Investments | $89914530 |

---

The Company did *not* qualify as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code, therefore it is taxed as a corporation. As a corporation, the Company is obligated to pay federal and state income tax on taxable income. The Company's net deferred tax asset balance has a full valuation allowance based on management's estimate of future realization of such assets. The Company is currently using an estimated tax rate of 21% for Federal and 6.98% for state taxes.

The Company's income tax provision consists of the following as of *December 31, 2025* and *2024:*

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Deferred tax (expense)/benefit |  |  |
| Federal | $- | $- |
| State |  |  |
| Total deferred tax (expense)/benefit | $- | $- |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Such temporary differences are principally: (i) taxes on unrealized gains/(losses), which are attributable to the temporary difference between fair market value and tax basis, and (ii) the net tax benefit of accumulated net operating losses and capital loss carryforwards. Deferred tax assets and liabilities are measured using effective tax rates expected to apply to taxable income in the years such temporary differences are realized or otherwise settled.

Components of the Company's deferred tax assets and liabilities as of *December 31, 2025* and *2024* are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Deferred tax assets: |  |  |
| Net operating loss carryforward | $3886290 | $3243806 |
| Capital loss carryforward | 13605036 | 8449388 |
| Net unrealized losses (gains) on investment securities | 25095009 | 32351042 |
| Total deferred tax assets, net | 42586335 | 44044236 |
| Valuation allowance | (42586335) | (44044236) |
| Net | $- | $- |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *66*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

For the year ended *December 31, 2025,* the Company had an effective tax rate of 0% and a statutory tax rate of 21% (27.98% with state income tax) with the difference being attributable to changes in the components of the deferred tax assets and the valuation allowance account. For the year ended *December 31, 2024,* the Company had an effective tax rate of 0% and a statutory tax rate of 21% (27.98% with state income tax) with the difference being attributable to changes in the components of the deferred tax assets and the valuation allowance account.

To the extent the Company has a deferred tax asset or if a portion of the deferred tax liability is offset by a tax asset resulting from net operating losses, consideration is given to whether or *not* a valuation allowance is required against the deferred tax asset amount. A valuation allowance is required if, based on the evaluation criterion provided by Accounting Standard Codification ("ASC") *740,* Income Taxes (ASC *740*), it is more-likely-than-*not* that some portion or all of the deferred tax asset will *not* be realized. Among the factors considered in assessing the Company's valuation allowance are: the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of the statutory carryforward periods, and the associated risks that operating and capital loss carryforwards *may* expire unused. Based on the Company's assessment, it has determined that in the future it is more likely than *not* that the Company will *not* generate the necessary appropriate character of income within the carryforward periods to realize its deferred tax assets, and as such, has placed a full allowance on the deferred tax assets.

From time to time, and as new information becomes available, the Company will modify its forecasts, estimates or assumptions regarding its deferred tax liability or asset.

Modifications of the Company's estimates or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any), and changes in applicable tax law could result in increases or decreases in the Company's NAV, which could be material. Such changes could have a material impact on the Company's NAV and results of operations with respect to the Company's shareholders in the period it is recorded, even though the shareholders at such time might *not* have held shares in the Company at the time the deferred tax asset or liability had been established.

The Company's policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statement of Operations. As of *December 31, 2025,* the Company had approximately $8,850 of interest and penalties associated with the underpayment of income taxes.

The Company files income tax returns in the U.S. federal jurisdiction and California. The Company has reviewed all major jurisdictions and concluded that there is *no* significant impact on the Company's net assets and *no* tax liability resulting from unrecognized tax benefits relating to uncertain tax positions expected to be taken on its tax returns. Furthermore, management of the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next *12* months.

As of *December 31, 2025,* the Company had net operating loss carryforwards for federal and state of income tax purposes of $13,889,528 which *may* be carried forward indefinitely.

As of *December 31, 2025,* the Company had net capital loss carryforwards for federal and state income tax purposes, which *may* be carried forward for 5 years, as follows:

---

| | |
|:---|:---|
| **EXPIRATION DATE** | **AMOUNT** |
| 12/31/27 | $3129665 |
| &nbsp;&nbsp;&nbsp;12/31/28 | 7864982 |
| &nbsp;&nbsp;&nbsp;12/31/29 | 11686668 |
| &nbsp;&nbsp;&nbsp;12/31/30 | 25942832 |
| Total | $48624147 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *67*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**NOTE *8.* INVESTMENT TRANSACTIONS** 

Investment transactions (excluding short-term investments) were as follows for the year ended *December 31, 2025.*

---

| | |
|:---|:---|
| **PURCHASES AND SALES** |  |
| Purchases of investment securities | $— |
| Proceeds from sales and maturities of investment securities | $176101 |

---

The Fund *may* purchase securities from, or sell securities to, an affiliated Fund under specific conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another Fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Trustees, and/or common officers complies with Rule *17a*-*7* of the *1940* Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended *December 31, 2025,* Firsthand Technology Value Fund did *not* purchase or sell securities to an affiliated fund.

**NOTE *9.* SHARE BUYBACKS** 

**SHARE BUYBACKS.** On *April 26, 2016,* the Board of Directors of the Fund approved a discretionary share repurchase plan (the "Plan"). Pursuant to the Plan, the Fund was authorized to purchase in the open market up to $2 million worth of its common stock. The Plan allowed the Fund to acquire its own shares at certain thresholds below its NAV per share, in accordance with the guidelines specified in Rule *10b*-*18* of the Securities Exchange Act of *1934,* as amended (the "Exchange Act"). The intent of the Plan was to increase NAV per share and thereby enhance shareholder value. The Fund completed the repurchase plan in *September 2016,* having repurchased and retired a total of 272,008 shares of stock, at a total cost of approximately $2 million.

On *November 10, 2017,* the Board of Directors of the Fund approved a discretionary share purchase plan (the "Plan"). Pursuant to the Plan, the Fund was authorized to purchase in the open market up to $2 million worth of its common stock. The Plan allowed the Fund to acquire its own shares in accordance with the guidelines specified in Rule *10b*-*18* of the Exchange Act. The intent of the Plan was to increase NAV per share and thereby enhance shareholder value. As of *December 31, 2017,* the Fund had repurchased and retired 128,551 shares of stock at a total cost of approximately $1.1 million. The Fund had 7,302,146 shares outstanding as of *December 31, 2017.*

On *August 31, 2018,* the Fund announced a plan to repurchase up to $2 million worth of SVVC stock in the open market by *March 31, 2019.* The Fund completed this open market repurchase plan on *October 24, 2018.* Through that date, the Fund repurchased 123,376 shares at an average price of $16.21 per share, for total consideration of $2.0 million. As of *December 31, 2018,* the Fund had 7,178,770 shares outstanding.

**TENDER OFFERS.** On *December 22, 2014,* pursuant to our agreement with a shareholder, the Fund commenced a tender offer to purchase up to $20 million of its issued and outstanding common shares for cash at a price per share equal to 95% of the Company's NAV per share determined as of the close of ordinary trading on the NASDAQ Global Market on *December 31, 2014 (*$23.2702 per share). The tender offer, which expired on *January 22, 2015* at *12:00* midnight,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *68*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

New York City time, was oversubscribed. Because the number of shares tendered exceeded the maximum amount of its offer, the Fund purchased shares from tendering shareholders on a pro-rata basis based on the number of shares properly tendered. Of the 5,044,728 shares properly tendered, the Fund purchased 859,468 shares of common stock pursuant to the tender offer.

On *December 16, 2019,* the Fund announced the commencement of a "modified Dutch auction" tender offer to purchase up to $2 million of its common stock at a price per share *not* less than $6.00 and *not* greater than $8.00, in $0.10 increments. The tender offer expired on *February 14, 2020,* and resulted in the purchase by the Fund of 285,714 shares of common stock at a price of $7.00 per share. As of *March 31, 2020,* the Fund had 6,893,056 shares outstanding.

**NOTE *10.* INVESTMENTS IN AFFILIATES AND CONTROLLED INVESTMENTS** 

Under the *1940* Act, the Company is required to identify investments where it owns greater than *5%* (but less than *25%*) of the portfolio company's outstanding voting shares as an affiliate of the Company. Also, under the *1940* Act, the Company is required to identify investments where it owns greater than *25%* of the portfolio company's outstanding voting shares as a controlled investment of the Company. A summary of the Company's investments in affiliates and controlled investments for the period from *December 31, 2024,* through *December 31, 2025,* is noted below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/24** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/25** | **SHARES HELD AT<br> 12/31/25** |
| **Equipment Leasing** |  |  |  |  |  |  |  |  |
| EQX Capital, Inc. Common Stock\* | $— | $— | $— | $— | $(20000) | $20000 | $— |  |
| EQX Capital, Inc. Series A Preferred Stock\* | 29466 |  |  | (8623) | (1921377) | 1900534 |  |  |
| Total Equipment Leasing | $29466 |  | $— | *(8623*) | $(1941377) | $1920534 | $— | *—* |
| **Aerospace** |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Convertible Note\* |  |  |  | (11116) | 11116 |  |  |  |
| Hera Systems, Inc. Series C Preferred\* |  |  |  | (156362) | 156362 |  |  |  |
| Total Aerospace |  |  |  | (167478) | 167478 |  |  |  |
| **Medical Devices** |  |  |  |  |  |  |  |  |
| IntraOp Medical Corp. Convertible Note\* | 9966 |  |  |  |  | (9366) | 600 | 10961129 |
| IntraOp Medical Corp. Convertible Note\* | 1182 |  |  |  |  | (1111) | 71 | 1300000 |
| IntraOp Medical Corp. Convertible Note\* | 454 |  |  |  |  | (426) | 28 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (427) | 28 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 682 |  |  |  |  | (641) | 41 | 750000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (427) | 28 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 909 |  |  |  |  | (854) | 55 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 454 |  |  |  |  | (426) | 28 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 364 |  |  |  |  | (342) | 22 | 400000 |
| IntraOp Medical Corp. Term Note\* | 2728 |  |  |  |  | (2564) | 164 | 3000000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 909 |  |  |  |  | (854) | 55 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 909 |  |  |  |  | (854) | 55 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 455 |  |  |  |  | (428) | 27 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 182 |  |  |  |  | (171) | 11 | 200000 |
| IntraOp Medical Corp. Convertible Note\* | 636 |  |  |  |  | (598) | 38 | 700000 |
| IntraOp Medical Corp. Convertible Note\* | 136 |  |  |  |  | (128) | 8 | 150000 |
| IntraOp Medical Corp. Convertible Note\* | 318 |  |  |  |  | (299) | 19 | 350000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *69*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/24** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/25** | **SHARES HELD AT<br> 12/31/25** |
| IntraOp Medical Corp. Series C Preferred Stock\* | $— | $— | $— |  | $— | $— | $— | 26856187 |
| IntraOp Medical Corp. Term Note\* | 1818 |  |  |  |  | (1708) | 110 | 2000000 |
| Total Medical Devices | $25287 |  | $— |  | $— | $(23764) | $1523 |  |
| **Semiconductor Equipment** |  |  |  |  |  |  |  |  |
| Revasum, Inc. CDIs\*(1) |  |  |  |  |  |  |  | 39774889 |
| Total Semiconductor Equipment | $— |  | $— |  | $— |  | $— |  |
| **Advanced Materials** |  |  |  |  |  |  |  |  |
| UCT Coatings, Inc. Common Stock | 260497 |  |  |  |  | (92855) | 167642 | 1500000 |
| Total Advanced Materials | $260497 |  | $— |  | $— | $(92855) | $167642 |  |
| **Automotive** |  |  |  |  |  |  |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (200000) | 200000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (185000) | 185000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (65000) | 65000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (2000000) | 2000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (135000) | 135000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (165000) | 165000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (40000) |  |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (700000) | 700000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  | (300000) | 300000 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *70*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/24** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/25** | **SHARES HELD AT<br> 12/31/25** |
| Wrightspeed, Inc. Convertible Note\* | $— | $— | $– |  | $(1000000) | $1000000 | $— |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1000000) | 1000000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1200000) | 1200000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1400000) | 1400000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (250000) | 250000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (400000) | 400000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (375000) | 375000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (400000) | 400000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (1050000) | 1050000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (900000) | 900000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (750000) | 750000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (4929015) | 4929015 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (125000) | 125000 |  |  |
| Wrightspeed, Inc. Convertible Note\* |  |  | – |  | (100000) | 100000 |  |  |
| Wrightspeed, Inc. Common Stock\* |  |  | – |  |  |  |  | 69102 |
| Wrightspeed, Inc. Series AA Preferred Stock\* |  |  | – |  |  |  |  | 60733693 |
| Total Automotive | $— |  | $– |  | $(24169015) | $24129015 | $— |  |
| Total Affiliates and Controlled Investments | $315250 |  | $– $| (176101) | $(25942914) | $25932930 | $169165 |  |
| Total Affiliates | 260497 |  | – |  |  | (92855) | 167642 |  |
| Total Controlled Investments | $54753 |  | $– $| (176101) | $(25942914) | $26025785 | $1523 |  |

---

\* Controlled Investments.

(*1*) CDI: CHESS Depositary Interests

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *71*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

A summary of the Company's investments in affiliates and controlled investments for the period from *December 31, 2023,* through *December 31, 2024,* is noted below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/23** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/24** | **SHARES HELD AT<br> 12/31/24** |
| **Equipment Leasing** |  |  |  |  |  |  |  |  |
| EQX Capital, Inc. Common Stock\* | $55 | $- | $- | $- | $- | $(55) | $- | 100000 |
| EQX Capital, Inc. Series A Preferred Stock\* | 110172 |  |  | (20000) |  | (60706) | 29466 | 1930000 |
| Total Equipment Leasing | $110227 |  | $- |  | $- | $(60761) | $29466 |  |
| **Aerospace** |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Convertible Note\* | 3431683 |  |  | (4866666) | (493125) | 1928108 |  |  |
| Hera Systems, Inc. Convertible Note\* | 768317 |  | 80000 | (1089594) | (110406) | 431683 |  |  |
| Hera Systems, Inc. Series A Preferred\* |  |  |  | (4) | (1999996) | 2000000 |  |  |
| Hera Systems, Inc. Series B Preferred\* |  | 2441 |  | (144249) | (6445294) | 6587102 |  |  |
| Hera Systems, Inc. Series B Warrants\* |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Series B Warrants\* |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Series B Warrants\* |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Series B Warrants\* |  |  |  |  |  |  |  |  |
| Hera Systems, Inc. Series C Preferred\* |  |  |  | (12153) | (2637847) | 2650000 |  |  |
| Total Aerospace | $4200000 |  | $80000 |  | $(11686668) | $13596893 | $- |  |
| **Medical Devices** |  |  |  |  |  |  |  |  |
| IntraOp Medical Corp. Convertible Note\* | 34570 |  |  |  |  | (24604) | 9966 | 10961129 |
| IntraOp Medical Corp. Convertible Note\* | 4100 |  |  |  |  | (2918) | 1182 | 1300000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1123) | 454 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1123) | 454 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 3154 |  |  |  |  | (2245) | 909 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 1261 |  |  |  |  | (897) | 364 | 400000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 2365 |  |  |  |  | (1683) | 682 | 750000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *72*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT**<br> **12/31/23** | **PURCHASE/**<br> **MERGER** | **INTEREST** | **SALES/**<br> **MATURITY/**<br> **EXPIRATION** | **REALIZED**<br> **GAIN (LOSS)** | **CHANGE IN APPRECIATION/**<br> **DEPRECIATION** | **VALUE**<br> **12/31/24** | **SHARES HELD AT**<br> **12/31/24** |
| IntraOp Medical Corp. Convertible Note\* | $1577 | $- | $- | $- | $- | $(1122) | $455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 3154 |  |  |  |  | (2245) | 909 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Convertible Note\* | 631 |  |  |  |  | (449) | 182 | 200000 |
| IntraOp Medical Corp. Convertible Note\* | 2208 |  |  |  |  | (1572) | 636 | 700000 |
| IntraOp Medical Corp. Convertible Note\* | 473 |  |  |  |  | (337) | 136 | 150000 |
| IntraOp Medical Corp. Convertible Note\* | 1104 |  |  |  |  | (786) | 318 | 350000 |
| IntraOp Medical Corp. Convertible Note\* | 3154 |  |  |  |  | (2245) | 909 | 1000000 |
| IntraOp Medical Corp. Convertible Note\* | 1577 |  |  |  |  | (1122) | 455 | 500000 |
| IntraOp Medical Corp. Series C Preferred\* |  |  |  |  |  |  |  | 26856187 |
| IntraOp Medical Corp. Term Note\* | 6308 |  |  |  |  | (4490) | 1818 | 2000000 |
| IntraOp Medical Corp. Term Note\* | 9461 | *-* |  |  |  | (6733) | 2728 | 3000000 |
| Total Medical Devices | $87713 |  | $- |  | $- | $(62426) | $25287 |  |
| **Semiconductor Equipment** |  |  |  |  |  |  |  |  |
| Revasum, Inc. CDI\*(1) | 3862405 |  |  |  |  | (3862405) |  | 39774889 |
| Total Semiconductor Equipment | $3862405 |  | $- |  | $- | $(3862405) | $- |  |
| **Advanced Materials** |  |  |  |  |  |  |  |  |
| UCT Coatings, Inc. Common Stock | 299932 |  |  |  |  | (39435) | 260497 | 1500000 |
| Total Advanced Materials | $299932 |  | $- |  | $- | $(39435) | $260497 |  |
| **Automotive** |  |  |  |  |  |  |  |  |
| Wrightspeed, Inc. Common Stock\* |  |  |  |  |  |  |  | 69102 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 200000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 250000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 100000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 125000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 165000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 135000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 250000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 250000 |
| Wrightspeed, Inc. Convertible Note\* |  |  |  |  |  |  |  | 1000000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *73*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/23** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/24** | **SHARES HELD AT<br> 12/31/24** |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 250000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 700000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 250000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 250000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 250000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 65000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 185000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 300000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 400000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 2000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1400000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1200000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 250000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1050000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 400000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 375000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 900000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 750000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 4929015 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – |  | – |  | – | 1000000 |
| Wrightspeed, Inc. Convertible Note\* | – |  | – | (40000) | – | 40000 | – |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *74*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AFFILIATE/CONTROLLED INVESTMENTS\*** | **VALUE AT<br> 12/31/23** | **PURCHASE/<br> MERGER** | **INTEREST** | **SALES/<br> MATURITY/<br> EXPIRATION** | **REALIZED<br> GAIN (LOSS)** | **CHANGE IN APPRECIATION/<br> DEPRECIATION** | **VALUE<br> 12/31/24** | **SHARES HELD AT<br> 12/31/24** |
| Wrightspeed, Inc. Series AA Preferred\* | $- | $- | $- | $- | $- | $- | $- | 60733693 |
| Total Automotive | $- |  | $- |  | $- | $40000 | $- |  |
| Total Affiliates and Controlled Investments | $8560277 |  | $80000 |  | $(11686668) | $9611866 | $315250 |  |
| Total Affiliates | 299932 |  |  |  |  | (39435) | 260497 |  |
| Total Controlled Investments | $8260345 |  | $80000 |  | $(11686668) | $9651301 | $54753 |  |

---

\* Controlled Investments.

(*1*) CDI: CHESS Depositary Interests

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *75*

------

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

As of *December 31, 2025,* Kevin Landis, the Company's Chairman, President and Chief Executive Officer, represented the Company and sat on the boards of directors of IntraOp Medical Corp., Revasum, Inc. and Wrightspeed, Inc. As of *December 31, 2025,* Mr. Landis served as interim CEO at IntraOp Medical Corp. and Wrightspeed, Inc. Serving as a director or officer of portfolio companies *may* cause conflicts of interest. The Advisor has adopted various procedures to ensure that the Company will *not* be unfavorably affected by these potential conflicts

**Unconsolidated Significant Subsidiaries** 

Our investments are generally in small companies in a variety of industries. In accordance with Rules *3*-*09* and *4*-*08*(g) of Regulation S-*X* ("Rule *3*-*09"* and "Rule *4*-*08*(g)," respectively), we must determine which of our unconsolidated controlled portfolio companies are considered "significant subsidiaries," if any as defined by S-*X* Rule *1*-*02*(w)(*2*). In evaluating these investments, there are *two* tests utilized to determine if any of our controlled investments are considered significant subsidiaries: the investment test, and the income test. Rule *3*-*09* requires separate audited financial statements of an unconsolidated majority-owned subsidiary in an annual report if any of the *three* tests exceeds *20%.* Rule *4*-*08*(g) requires summarized financial information in an annual report if any of the *three* tests exceeds *10%* and summarized financial information in a quarterly report if any of the *three* tests exceeds *20%.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *76*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firsthand Technology Value Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements - continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *DECEMBER 31, 2025*

**NOTE *11.* MARKET DISRUPTION AND GEOPOLITICAL RISKS** 

Certain local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on a security or instrument. Since *2020,* the novel strain of coronavirus (COVID-*19*) has negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in general in significant and unforeseen ways. Following Russia's large-scale invasion of Ukraine, the President of the United States signed an Executive Order in *February 2022* prohibiting U.S. persons from entering transactions with the Central Bank of Russia and Executive Orders in *March 2022* prohibiting U.S. persons from importing oil and gas from Russia as well as other popular Russian exports, such as diamonds, seafood and vodka. The duration of the coronavirus outbreak and the Russian-Ukraine conflict could adversely affect the Company's performance. The ultimate impact of COVID-*19* and Russia invasion on the financial performance of the Company's investments is *not* reasonably estimable at this time.

**NOTE *12.* BENEFICIAL OWNERSHIP** 

The beneficial ownership, either directly or indirectly, of more than *25%* of the voting securities of a portfolio creates a presumption of control of the Portfolio under Section *2*(a)(*9*) of the *1940* Act. As of *December 31, 2025,* Star Equity Fund L.P. held 29.45% of the voting securities of the Fund.

**NOTE *13.* NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY UPDATES**

In *December 2023,* the FASB issued Accounting Standards Update *2023*-*09* ("ASU *2023*-*09"*), Income Taxes (Topic *740*) Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments are effective for annual periods beginning after *December 15, 2024.* The Fund has adopted ASU *2023*-*09* and all required disclosures have been made.

**NOTE *14.* LEGAL PROCEEDINGS**

As of *12/31/2025,* the Fund was engaged in multiple legal proceedings as described below.

*<u>VestedCap v. IntraOp Medical Corp., et. al.</u>*

On *September 5, 2023,* VestedCap, LLC ("VestedCap") filed a complaint in Superior Court for the State of California. The case is venued in Santa Clara County (Case *No. 23*-CV-*422238.*) As originally filed, the lawsuit asserted claims against *one* of the Fund's portfolio companies, IntraOp Medical Corporation. VestedCap also named Kevin Landis as a co-defendant. In the original complaint, VestedCap asserted claims for breach of contract, fraud and deceit, conversion, unjust enrichment, and judicial foreclosure. IntraOp and Kevin Landis denied all claims against them.

On *January 22, 2025,* VestedCap ame

nded its complaint and added the Fund as an additional co-defendant. In the amended complaint, VestedCap has asserted the following claims against the Fund: wire fraud, violations of the RICO Act, fraud and deceit, conversion, and declaratory relief. VestedCap has also asserted that the Fund is the alter ego of co-defendants IntraOp Medical Corporation and Kevin Landis and therefore should be a party to the case. On *January 16, 2026,* VestedCap filed a Second Amended Complaint. The Second Amended Complaint asserts *no* new causes of action but does contain revised factual allegations in connection with the previously asserted fraud claims.

The Fund believes that the allegations in the operative complaint lack merit and has filed an answer denying all wrongdoing. The Fund intends to vigorously defend itself. The parties have exchanged documents and written discovery responses. Some depositions have been taken and others will occur during *March* and *April 2026.* The case has *not* been set for trial but the Court has scheduled a trial setting conference for late- *April 2026.* A trial in *2027* is expected.

*<u>Star Equity Fund L.P. v. Firsthand Capital Management, Inc., et al.</u>*

On *February 28, 2025,* Star Equity Fund, L.P., an investor in Firsthand Technology Value Fund, filed a lawsuit against the Fund, Firsthand Capital Management Company, and various individual defendants. The lawsuit asserts derivative claims on behalf of the Fund. Specifically, it asserts counts against the Management Company for alleged violations of Section *10*(b) of the Securities Exchange Act of *1934;* (II) violations of Section *20*(a) of the Securities Exchange Act of *1934;* (III) breach of fiduciary duties; (V) appointment of a receiver; and (VI) aiding and abetting breaches of fiduciary duties. Star Equity has also asserted a direct cause of action against the Management Company (Count IV) as a purported *third*-party beneficiary of the management agreement between the Management Company and the Fund. The Fund and the Management Company deny all allegations of wrongdoing.

On *September 18, 2025,* the Fund and the Management Company filed motions to dismiss Star Equity's Complaint. In response, Star Equity voluntarily dismissed its direct and derivative breach of fiduciary duty claim, its direct and derivative breach of contract claim, and its aiding and abetting the breach of fiduciary duty claim. The dismissals were without prejudice and the claims *may* be re-filed. The other asserted claims remain subject to the pending motion to dismiss. That motion will likely be decided in *March* or *April 2026.*

**NOTE *15.* GOING CONCERN**

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and settle its liabilities in the normal course of business for the foreseeable future. During the year ended *December 31, 2025,* the Company incurred a net loss of $1,286,068 and had negative cash flows from operations of $2,512. As of that date, the Company's liabilities exceeded its assets by $235,128. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern.

Management's plans to mitigate these conditions include sale of assets, liquidation of Company, infusion of cash from Advisor, raising capital, and reducing overhead costs. While management believes these plans are probable, there is *no* guarantee they will be successful. These financial statements do *not* include any adjustments that might be necessary should the Company be unable to continue as a going concern.

**NOTE *16.* SUBSEQUENT EVENTS** 

Management has evaluated the impact of all subsequent events on the Company through the date the financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *77*

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[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Item 9.**  | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**  |

---

None

---

| | |
|:---|:---|
| **Item 9A.**  | **CONTROLS AND PROCEDURES**  |

---

**DISCLOSURE CONTROLS AND PROCEDURES** 

Our Chief Executive Officer and Chief Financial Officer performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of December 31, 2025, and, based on that evaluation, have concluded that the disclosure controls and procedures are effective.

**REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING** 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive and financial officer, or persons performing similar functions, and effected by our Board of Directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.

Our management evaluated as of December 31, 2025, the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

**INHERENT LIMITATIONS OF EFFECTIVENESS OF CONTROLS** 

Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78

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**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING** 

There have been no changes in our internal control over financial reporting that occurred during our fourth quarter ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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| | |
|:---|:---|
| **Item *9B.***  | **OTHER INFORMATION**  |

---

*None*

Part III

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| | |
|:---|:---|
| **Item *10.***  | **DIRECTORS, EXECUTIVES OFFICERS AND CORPORATE GOVERNANCE**  |

---

Information required by this item will be contained in the Company's proxy statement to be filed with the SEC, in connection with the Company's annual meeting of shareholders to be held in *2025* (the *"2025* Proxy Statement"), which information is incorporated herein by reference.

The Company has adopted a code of ethics that applies to the Company's chief executive officer, a copy of which is posted on our website http://www.firsthandtvf.com.

Our CEO certifies the accuracy of the financial statements contained in our periodic reports, and so certified in this Form *10*-K through the filing of Section 302 certifications as exhibits to this Form *10*-K.

*Section *16*(a) Beneficial Ownership Reporting Compliance* 

Section *16*(a) of the Securities Exchange Act of *1934* requires the Company's officers and directors, and persons who own more than *ten* percent of a registered class of the Company's equity securities, to file with the Securities and Exchange Commission and the Nasdaq Stock Market reports of ownership of the Company's securities and changes in reported ownership. Officers, directors and greater than *ten* percent shareholders are required by SEC rules to furnish the Company with copies of all Section *16*(a) reports they file.

Based solely on a review of the reports furnished to the Company, or written representations from reporting persons that all reportable transaction were reported, the Company believes that during the fiscal year ended *December 31, 2025,* the Company's officers, directors and greater than *ten* percent owners timely filed all reports they were required to file under Section *16*(a).

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| | |
|:---|:---|
| **Item 11.**  | **EXECUTIVE COMPENSATION**  |

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Information required by this item will be contained in the *2026* Proxy Statement, which information is incorporated herein by reference.

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| | |
|:---|:---|
| **Item 12.**  | **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**  |

---

Information required by this item will be contained in the 2026 Proxy Statement, which information is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 79

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| | |
|:---|:---|
| **Item 13.**  | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**  |

---

Information required by this item will be contained in the 2026 Proxy Statement, which information is incorporated herein by reference.

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| | |
|:---|:---|
| **Item 14.**  | **PRINCIPAL ACCOUNTANT FEES AND SERVICES**  |

---

Information required by this item will be contained in the 2026 Proxy Statement, which information is incorporated herein by reference.

Part IV

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| | |
|:---|:---|
| **Item 15.**  | **EXHIBITS, FINANCIAL STATEMENTS SCHEDULES**  |

---

**1. Financial Statements** 

The following financial statements of the Company are filed as part of this report:

---

| | |
|:---|:---|
| **AUDITED FINANCIAL STATEMENTS** |  |
| [Report of Independent Registered Public Accounting Firm](#Reportofirpaf) | [39](#Reportofirpaf) |
| [Statement of Assets and Liabilities as of December 31, 202](#item8)[5](#consi) | [41](#item8) |
| [Schedule of Investments as of December 31, 202](#consi)5 | [42](#consi) |
| [Statement of Operations as of December 31, 202](#conssops)[5](#Sof_Op) | [50](#Sof_Op) |
| [Statement of Cash Flows as of December 31, 2025](#conscashflow) | [51](#conscashflow) |
| [Statement of Changes in Net Assets as of December 31, 2025](#consnetassests) | [52](#consnetassests) |
| [Financial Highlights](#consfinhigh) | [53](#consfinhigh) |
| [Notes to Financial Statements](#notes) | [54](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 80

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**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| **Exhibit Number** | **Descriptions** |
| 3.1 | [Registrant's Articles of Amendment and Restatement are incorporated by reference to Exhibit (a)(2) of Pre-Effective Amendment No. 1 to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2a2.htm) |
| 3.2 | [Certificate of Correction to Registrant's Articles of Amendment and Restatement is incorporated by reference to Exhibit (a)(2) of the Registrant's Registration Statement on Form N-2 (File No. 333-179606) as filed with the Securities and Exchange Commission on February 21, 2012.](http://www.sec.gov/Archives/edgar/data/1495584/000139834412000645/fp0004286_ex2a2.htm) |
| 3.3 | [Registrant's Amended and Restated Bylaws – is incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K as filed with the Securities and Exchange Commission on October 29, 2021.](http://www.sec.gov/Archives/edgar/data/1495584/000139834422006240/fp0074411_ex9933.htm) |
| 10.1 | [Registrant's Dividend Reinvestment Plan is incorporated by reference to Exhibit (e) of Pre-Effective Amendment to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2e.htm) |
| 10.2 | [Form of Investment Management Agreement between Registrant and SiVest Group, Inc. (now known as Firsthand Capital Management, Inc.) is incorporated by reference to Exhibit (g) of Pre-Effective Amendment to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2g.htm) |
| 10.3 | [Form of Custodian Services Agreement between Registrant and PFPC Trust Company is incorporated by reference to Exhibit (j) of Pre-Effective Amendment to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2j.htm) |
| 10.4 | [Form of Administration and Accounting Agreement between Registrant and BNY Mellon Investment Servicing (US), Inc. is incorporated by reference to Exhibit (k)(1) of Pre-Effective Amendment to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2k1.htm) |
| 10.4.1 | [Form of Amendment to Administration and Accounting Agreement between Registrant and BNY Mellon Investment Servicing (US), Inc. as filed with the Securities and Exchange Commission on March 18, 2019.](http://www.sec.gov/Archives/edgar/data/1495584/000110465919015604/a19-3435_1ex10d4d1.htm) |
| 10.5 | [Notice of Assignment dated February 9, 2011 by PFPC Trust Company assigning Custodian Services Agreement is incorporated by reference to Exhibit (j)(2) of the Registrant's Registration Statement on Form N-2 (File No. 333-179606) as filed with the Securities and Exchange Commission on February 21, 2012.](http://www.sec.gov/Archives/edgar/data/1495584/000139834412000645/fp0004286_ex2j2.htm) |
| 10.6 | [Form of Transfer Agency Services Agreement between Registrant and BNY Mellon Investment Servicing (US), Inc. is incorporated by reference to Exhibit (k)(2) of Pre-Effective Amendment to the Registrant's Registration Statement on Form N-2 (File No. 333-168195) as filed with the Securities and Exchange Commission on September 24, 2010.](http://www.sec.gov/Archives/edgar/data/1495584/000139834410001236/fp0002071_ex2k2.htm) |
| 14.1 | [Registrant's Code of Ethics for Principal Executive and Senior Financial Officers is incorporated by reference to Exhibit 14 to the Registrant's Form 10-K as filed with the Securities and Exchange Commission on March 21, 2012.](http://www.sec.gov/Archives/edgar/data/1495584/000139834412001100/fp0004528_ex14-1.htm) |
| 24.1 | [Power of Attorney is incorporated by reference to Exhibit 24 to the Registrant's Form 10-K as filed with the Securities and Exchange Commission on March 21, 2012.](http://www.sec.gov/Archives/edgar/data/1495584/000139834412001100/fp0004528_ex24-1.htm) |
| 31.1 | [Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. – filed herewith](ex_914957.htm) |
| 32.1 | [Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. – filed herewith.](ex_914958.htm) |
| 101.INS | Inline XBRL Instance Document – The Instance Document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81

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Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp; FIRSTHAND TECHNOLOGY VALUE FUND, INC. |
| &nbsp;&nbsp; Date: March 30, 2026 | &nbsp;&nbsp; By: | ![fp0081632-2_100.jpg](fp0081632-2_100.jpg) |
|  |  | &nbsp;&nbsp; Kevin Landis<br> President |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Company and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Signatures** | &nbsp;&nbsp; **Title** | &nbsp;&nbsp;&nbsp; **Date** |
| &nbsp;&nbsp; /s/ Kevin Landis | &nbsp;&nbsp; Chairman of the Board, Chief Executive Officer, and Chief Financial Officer | &nbsp;&nbsp;&nbsp;March 30, 2026 |
| &nbsp;&nbsp; Kevin Landis |  |  |
| &nbsp;&nbsp; \* | &nbsp;&nbsp; Director | &nbsp;&nbsp;&nbsp;March 30, 2026 |
| &nbsp;&nbsp; Greg Burglin |  |  |
| &nbsp;&nbsp; \* | &nbsp;&nbsp; Director | &nbsp;&nbsp;&nbsp;March 30, 2026 |
| &nbsp;&nbsp; Kimun Lee |  |  |

---

\* Signed by Kevin Landis pursuant to powers of attorney.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82

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**Privacy Notice** 

**FIRSTHAND TECHNOLOGY VALUE FUND, INC.** 

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| | |
|:---|:---|
| &nbsp;&nbsp; **FACTS** | &nbsp;&nbsp; **WHAT DOES FIRSTHAND TECHNOLOGY VALUE FUND, INC. DO WITH YOUR PERSONAL INFORMATION?** |
| &nbsp;&nbsp; Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| &nbsp;&nbsp; What? | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The types of personal information we collect and share depend on the product or service you have with us. This information can include:<br> ► Social Security number<br> ► Banking information<br> ► Account transactions<br> ► Retirement assets |
| &nbsp;&nbsp; How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Firsthand Capital management, Inc. chooses to share; and whether you can limit this sharing. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does Firsthand Technology**<br> **Value Fund, Inc. share?** | **Can you limit this sharing?** |
| **For our everyday business purposes**—such as to process your transactions, maintain your account(s), respond to court orders and legal investigations | Yes | No |
| **For our marketing purposes**—to offer our products and services to you | No | N/A |
| **For joint marketing with other financial companies** | No | N/A |
| **For our affiliates**' **everyday business purposes**—information about your transactions and experiences | No | N/A |
| **For our affiliates**' **everyday business purposes**—information about your creditworthiness | No | N/A |
| **For our affiliates to market to you** | No | N/A |
| **For nonaffiliates to market to you** | No | N/A |

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| | |
|:---|:---|
| **Who we are** | |
| Who is providing this notice? | Firsthand Technology Value Fund, Inc. is a publicly traded venture capital fund, listed on NASDAQ, that is a business development company under the Investment Company Act of 1940 |

---

---

| | |
|:---|:---|
| **What we do** | |
| How does Firsthand Technology Value Fund, Inc. protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| How does Firsthand Technology Value Fund, Inc. collect my personal information? | &nbsp;&nbsp;&nbsp;&nbsp; We collect your personal information, for example, when you<br> ► open an account or deposit money |
| Why can't I limit all sharing? | &nbsp;&nbsp;&nbsp;&nbsp; Federal law gives you the right to limit only<br> ► sharing for affiliates' everyday business purposes—information about your creditworthiness<br> ► affiliates from using your information to market to you<br> ► sharing for nonaffiliates to market to you<br> State laws and individual companies may give you additional rights to limit sharing. |

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| | |
|:---|:---|
| **Definitions** | |
| Affiliates | &nbsp;&nbsp;&nbsp;&nbsp; Companies related by common ownership or control. They can be financial and nonfinancial companies.<br> ► Firsthand Capital Management, Inc. and Firsthand Funds |
| Nonaffiliates | &nbsp;&nbsp;&nbsp;&nbsp; Companies not related by common ownership or control. They can be financial and nonfinancial companies.<br> ► BNY Mellon Investment Servicing (U.S.) Inc. (Transfer Agent for Firsthand Technology Value Fund, Inc. and Firsthand Funds) |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |

---

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| |
|:---|
| **Other important information** |
| This notice applies to individual consumers who are customers or former customers. This notice replaces all previous notices of our consumer privacy policy, and may be amended at any time. We will keep you informed of changes or amendments as required by law. |

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|:---|
| **Additional Information for California Residents** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This section supplements the information contained in the other sections of this Privacy Notice and applies solely to clients, visitors, users, and others who reside in the state of California ("consumers" or "you") and for whom we have data that is subject to the California Consumer Privacy Act of 2018 as may be amended or supplemented from time to time ("CCPA"). This Privacy Notice, including this additional information, is provided to comply with the CCPA and other California privacy laws. Any terms defined in the CCPA have the same meaning when used in this section.<br>Depending upon how you interact with us, you may have various rights in connection with our processing of your personal information, each of which is explained below.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Access.** You may have the right to confirm with us whether your personal information is processed, and if it is, to request access to that personal information including the categories of personal information processed, the purpose of the processing and the recipients or categories of recipients. We do have to consider the interests of others though, so this is not an absolute right and there are additional exceptions under the CCPA. Also, we are not obligated to respond to more than two access requests for the same individual's personal information within a 12-month period.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Deletion.** You may have the right to ask us to erase personal information concerning you, except we are not obligated to do so if we need to retain such data in order to comply with a legal obligation or to establish, exercise, or defend legal claims or under other exceptions under the CCPA.<br>You have a right to receive non-discriminatory treatment for the exercise of the privacy rights conferred by the CCPA.<br>To exercise one or more of these rights, please contact us as explained below. Please note that we may need to verify your identity before we can fulfill your request.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● You can submit your request by calling us at (800) 331-1710.<br>When we tell you that we need additional information to verify your identity, you must get us the information within ten (10) calendar days or we may deny your request. We will endeavor to respond to a verified request within 45 days, unless there are grounds for extending our response timeframe by up to an additional 45 days. In the event of an extension, we will explain to you why the extension is necessary. In some cases, your ability to access or delete your personal information will be limited, as required or permitted by applicable law, even when the CCPA applies to the personal information we have for you. |

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## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer**

**Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)**

I, Kevin Landis, certify that:

1. I have reviewed the Annual Report on Form 10-K of Firsthand Technology Value Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement or a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kevin Landis<br>

Name: Kevin Landis

Title: Chief Executive Officer

Dated: March 30, 2026

------

**Certification of Chief Financial Officer**

**Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)**

I, Kevin Landis, certify that:

1. I have reviewed the Annual Report on Form 10-K of Firsthand Technology Value Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement or a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kevin Landis<br>

Name: Kevin Landis

Title: Chief Financial Officer

Dated: March 30, 2026

## Exhibit 32.1

**Exhibit 32.**

**Certification of Chief Executive Officer and Chief Financial Officer Pursuant to** <br> **18 U.S.C. Section 1350,** 

**As Adopted Pursuant to**<br> **Section 906 of the Sarbanes-Oxley Act of 2002** 

In connection with the Quarterly Report on Form 10-K of Firsthand Technology Value Fund, Inc. (the "Company") for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Kevin Landis as Chief Executive Officer and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 134; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| ![sig01.jpg](sig01.jpg)<br>|
| &nbsp;&nbsp; Name: Kevin Landis<br> Title: Chief Executive Officer and Chief Financial Officer<br> Dated: March 30, 2026 |

---