Financial Performance - Total assets increased by 12.1% to $90,789,069 as of June 30, 2024, compared to $81,021,982 at December 31, 2023[142] - Net assets rose by 12.7% to $68,558,616 at June 30, 2024, up from $60,815,213 at the end of 2023[142] - The net asset value per share (NAV) was $26.56 at June 30, 2024, compared to $23.56 at December 31, 2023[142] - Total investments at fair value increased by 12.9% to $87,070,967 as of June 30, 2024, from $77,125,712 at December 31, 2023[145] - Unrealized appreciation, net, surged by 55.8% to $13,648,836 at June 30, 2024, compared to $8,760,106 at the end of 2023[145] - Total investment income for the three months ended June 30, 2024, was $2,136,149, representing a 17.7% increase from $1,815,432 in the same period of 2023[149] - Total investment income for the six months ended June 30, 2024, was $4,203,368, representing a 14.6% increase from $3,666,930 in the same period of 2023[168] - Net investment income for the six months ended June 30, 2024, was $322,390, a significant decrease from $1,207,546 in the same period of 2023[175] Investment Activities - New investments totaled $10,945,497 during the six months ended June 30, 2024[148] - The company liquidated investments in Ares, Carlyle, Knoa, and Pennantpark during the three months ended June 30, 2024[161] - The company funded approximately $10,945,000 in new or follow-on portfolio company investments during the same period[190] Dividends and Expenses - The company declared quarterly cash dividends of $0.25 and $0.29 for the first and second quarters of 2024, respectively[139] - Total expenses rose significantly by 103.0% to $2,652,782 in Q2 2024, up from $1,306,741 in Q2 2023, primarily driven by a $1,150,000 increase in capital gains incentive fee expense[152] - Total expenses rose by 64.8% to $3,879,638 for the six months ended June 30, 2024, up from $2,354,586 in 2023, primarily due to increased capital gains fee expenses and interest expenses[172] Cash Flow and Liquidity - As of June 30, 2024, total liquidity consisted of approximately $2,293,000 in cash and $7,800,000 available on the Credit Facility[186] - The company entered into a $25 million Credit Facility with an outstanding balance of $17.2 million as of June 30, 2024, leaving an unused line of credit of $7.8 million[187] - For the six months ended June 30, 2024, the company experienced a net decrease in cash of approximately $1,002,000, primarily due to $558,000 used in operating activities and $444,000 in financing activities[190] Financial Risks and Management - The company is subject to financial market risks, including interest rate changes that may affect its interest expense on the debt outstanding under the Credit Facility[192] - A hypothetical 1% increase in interest rates could decrease net investment income by approximately $172,000, while a 1% decrease could increase it by the same amount[194] - The company does not currently engage in hedging activities but may consider them in the future to manage interest rate fluctuations[195] Future Outlook - SciAps announced a definitive purchase agreement for acquisition with total consideration of up to $260 million, expected to close later in 2024[162] - SciAps announced a definitive purchase agreement for up to $260 million, with closing expected later in 2024, which may impact future valuations[181] Investment Strategy - The company’s investment objective focuses on generating current income and capital appreciation through investments in lower middle market companies[146] - The company has co-investment opportunities with affiliates under an SEC exemptive order, enhancing investment diversification[140] Performance Metrics - Interest from portfolio companies increased by 35.4% to $1,995,227 in Q2 2024, compared to $1,473,540 in Q2 2023, due to additional interest-yielding investments[150] - Interest from portfolio companies increased by 37.5% to $3,808,875 for the six months ended June 30, 2024, compared to $2,770,443 in 2023, due to additional interest-yielding investments[169] - The net increase in net assets from operations for the three months ended June 30, 2024, was $7,737,773, compared to $2,671,890 in the same period of 2023[164] - The net increase in net assets from operations for the six months ended June 30, 2024, was $9,137,154, compared to $4,842,167 in 2023[185] - The change in unrealized appreciation of investments was $7,779,026 for Q2 2024, a significant improvement from a depreciation of ($1,367,270) in Q2 2023[159] - The change in unrealized appreciation of investments before income taxes for the six months ended June 30, 2024, was $4,888,730, compared to $34,703 in 2023, indicating a substantial increase[179]

Investment Performance - Total investment income increased by 18% to $2.1 million for Q2 2024, driven by a 35% increase in interest from portfolio companies[3] - Total investment income increased by 18% to $2,136,149 for the three months ended June 30, 2024, compared to $1,815,432 for the same period in 2023[16] - Adjusted net investment income per share was $0.44, a 16% increase from $0.38 per share in Q2 2023[5] - Basic and diluted net increase in net assets from operations per share was $3.00 for the three months ended June 30, 2024, compared to $1.04 for the same period in 2023[17] - Net investment (loss) income per share for the three months ended June 30, 2024, is $(0.20), a decrease from $0.19 for the same period in 2023[22] - Excluding expenses for capital gains incentive fees, net investment income per share was $0.64 for the three months ended June 30, 2024, up from $0.19 in the same period of 2023[22] - For the six months ended June 30, 2024, net investment (loss) income per share was $0.12, down from $0.47 for the same period in 2023[22] - The adjusted net investment income per share for the six months ended June 30, 2024, was $0.80, compared to $0.77 in the same period last year[22] Financial Position - Net asset value per share rose to $26.56 at June 30, 2024, reflecting an 11% increase from March 31, 2024, and a 13% increase from year-end 2023[1] - As of June 30, 2024, Rand's portfolio had a fair value of $87.1 million, a 13% increase from December 31, 2023[6] - Net assets at the end of the period were $68,558,616 as of June 30, 2024, compared to $61,402,028 at the same time in 2023[18] Expenses and Costs - Total expenses for Q2 2024 were $2.7 million, up from $1.3 million in the same period last year, primarily due to a $1.2 million increase in capital gains incentive fees[4] - Total expenses for the three months ended June 30, 2024, were $2,652,782, compared to $1,306,741 for the same period in 2023[20] - Adjusted total expenses, excluding capital gains incentive fees, were $1,011,782 for the three months ended June 30, 2024[20] Debt Management - Rand reduced its debt balance by $2.0 million during the quarter, with an additional $2.3 million repaid subsequent to quarter-end[1] - The annualized weighted average yield of debt investments was 13.8% at June 30, 2024, compared to 13.6% at the end of 2023[6] Dividends - A quarterly dividend of $0.29 per share was announced for Q3 2024, consistent with previous distributions[1] - The company declared a dividend of $(748,496) for the three months ended June 30, 2024, compared to $(645,255) in the same period last year[18] Investment Gains and Losses - Net investment (loss) income before income taxes was $(516,633) for the three months ended June 30, 2024, compared to $508,691 for the same period in 2023[16] - Net realized gain on sales and dispositions of investments was $428,108 for the three months ended June 30, 2024, down from $3,480,089 in the same period last year[18] - The company reported a net change in unrealized appreciation on investments of $7,826,860 for the three months ended June 30, 2024[18] Future Outlook - The company expects to leverage capital from the pending sale of portfolio investment company SciAps, anticipated to close later this year[2] - Rand's total debt and equity investment in SciAps had a fair value of $10.8 million at quarter-end[7]

Financial Data and Key Metrics Changes - Total investment income for Q1 2024 was $2.1 million, a 12% increase from the previous year's first quarter, driven by a 40% increase in interest income [17] - Net investment income increased 17% to $840,000 or $0.33 per share compared to $715,000 or $0.28 per share in Q1 2023 [18] - Total expenses were approximately $1.2 million in Q1 2024, up from $1 million in the prior year's first quarter [9] - Net assets at March 31, 2024, were $61.6 million, a 1% increase from the end of 2023 [31] Business Line Data and Key Metrics Changes - The portfolio comprised approximately 70% in debt investments, up from 64% at the end of 2023, with an annualized weighted average yield of 13.7% [14][25] - The company completed one follow-on and two new investments during the quarter, including a $5.5 million debt investment in Madison Avenue Holdings [14][26] - The fair value of the portfolio increased to $82.8 million across 30 portfolio businesses, up $5.6 million or 7% from the end of 2023 [26] Market Data and Key Metrics Changes - The company observed growth in sectors such as professional services, consumer products, and distribution, while declines were noted in manufacturing and software industries [7] - The company liquidated approximately $3 million worth of BDC stocks post-quarter end to safeguard accrued gains [22] Company Strategy and Development Direction - The company aims to maximize shareholder value through sustained growth of dividends and strategic investments in income-generating debt instruments [34] - The strategic shift towards a higher proportion of debt investments is expected to support increased dividend levels over time [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to replicate historical achievements and deliver compelling returns for shareholders [22] - The company highlighted the importance of maintaining a strong and flexible balance sheet for future investments [19] Other Important Information - The company declared total dividends of $0.54 per share year-to-date, including a cash dividend of $0.25 per share for Q1 2024, with a subsequent increase to $0.29 per share for Q2 2024 [13][20] - Total outstanding borrowings were $19.2 million with an interest rate of approximately 8.8% at quarter end [32] Q&A Session Summary Question: What is the outlook for future dividends? - Management indicated that the strategic focus on income-generating investments is expected to support an increase in dividends over time [34] Question: How has the portfolio composition changed? - The portfolio now consists of 70% debt investments, reflecting a strategic shift from previous years [25] Question: What were the key drivers of investment income growth? - The increase in investment income was primarily driven by a significant rise in interest income [17]

Investment Income and Portfolio Performance - Total investment income increased by 12% to $2.1 million for Q1 2024, driven by a 40% rise in interest from portfolio companies [4]. - Net investment income grew 17% to $840,000, or $0.33 per share, compared to $715,000, or $0.28 per share, in Q1 2023 [6]. - Total investment income for the first quarter of 2024 increased by 12% to $2,067,219 compared to $1,851,498 in the same period of 2023 [24]. - Net investment income for the first quarter of 2024 was $839,585, up from $714,916 in the first quarter of 2023 [25]. - The annualized weighted average yield of debt investments was 13.7% at March 31, 2024, slightly up from 13.6% at the end of 2023 [7]. - The investment portfolio consisted of 70% interest-yielding debt instruments at quarter-end, up from 64% at the end of 2023, enhancing portfolio yield and net interest income [4]. Asset and Dividend Information - The net asset value per share (NAV) was $23.85 at March 31, 2024, reflecting a 1% increase from year-end 2023 [4]. - Regular quarterly dividend increased by 16% to $0.29 per share for Q2 2024, up from $0.25 per share [14]. - Net assets at the end of the first quarter of 2024 were $61,569,339, an increase from $59,375,393 at the end of the first quarter of 2023 [25]. - The company declared a dividend of $645,255 in the first quarter of 2024, up from $516,204 in the same quarter of 2023 [25]. Investment Activities - New and follow-on investments totaled $10.8 million during the first quarter, including a $5.5 million investment in Mattison Avenue Holdings [4]. - The company realized a gain of $3.5 million from the sale of ACV Auctions stock, with the shares sold at an average price of $18.02 each [12]. - Net realized gain on sales and dispositions of investments reached $3,450,092, significantly higher than $53,388 in the same quarter of the previous year [25]. Expenses and Financial Metrics - Total expenses for the first quarter of 2024 were $1,226,856, compared to $1,047,845 in the first quarter of 2023 [28]. - Adjusted total expenses, excluding capital gains incentive fees, were $1,114,556 for the first quarter of 2024, compared to $756,845 in the same period of 2023 [28]. - Net increase in net assets from operations was $1,399,381 for the first quarter of 2024, down from $2,170,277 in the same quarter of 2023 [25]. - Basic and diluted net increase in net assets from operations per share decreased to $0.54 from $0.84 year-over-year [23]. - Outstanding borrowings on the senior secured revolving credit facility were $19.2 million, with an interest rate of 8.8% at quarter-end [9]. - Adjusted net investment income per share for the first quarter of 2024 was $0.37, compared to $0.39 in the same period of 2023 [30].

Financial Position - Total assets increased by $3,333,148, or 4.1%, from $81,021,982 on December 31, 2023, to $84,355,130 on March 31, 2024[157]. - Total liabilities rose by $2,579,022, or 12.8%, from $20,206,769 to $22,785,791 during the same period[157]. - Net asset value per share (NAV) was $23.85 at March 31, 2024, compared to $23.56 at December 31, 2023[157]. Investment Income - Total investment income for the three months ended March 31, 2024, was $2,067,219, an increase of $215,721, or 11.7%, from $1,851,498 in the same period of 2023[165]. - Interest from portfolio companies increased by $516,745, or 39.8%, from $1,296,903 to $1,813,648 year-over-year[165]. - Interest from portfolio companies increased by approximately 40% during the three months ended March 31, 2024, compared to the same period in 2023, due to more interest-yielding investments originated[166]. - Total dividend and other investment income for the three months ended March 31, 2024, was $151,835, a decrease from $474,743 in the same period in 2023[168]. - Net investment income for the three months ended March 31, 2024, was $839,585, compared to $714,916 for the same period in 2023[175]. Expenses and Liabilities - Total expenses for the three months ended March 31, 2024, were $1,226,856, representing a 17.1% increase from $1,047,845 in the same period in 2023[169]. - Interest expense rose to $390,020 for the three months ended March 31, 2024, from $158,400 in the same period in 2023, reflecting higher average outstanding debt balances[170]. - The company has a $25 million senior secured revolving credit facility with $19,200,000 drawn as of March 31, 2024, with an applicable interest rate of 8.84%[159]. - The outstanding balance drawn on the Credit Facility at March 31, 2024, was $19,200,000, with an applicable interest rate of 8.84%[185]. Unrealized Gains and Losses - Unrealized appreciation, net decreased by $2,890,296, or 33.0%, from $8,760,106 to $5,869,810 during the same period[161]. - The change in unrealized depreciation of investments for the three months ended March 31, 2024, was $(2,890,296), compared to an appreciation of $1,401,973 in the same period in 2023[178]. - The company recognized a net realized gain of $3,450,092 on the sale of 194,934 shares of Class A common stock of ACV during the three months ended March 31, 2024[176]. Cash and Liquidity - As of March 31, 2024, cash approximated 1.2% of net assets, down from 5.4% at December 31, 2023[158]. - As of March 31, 2024, total liquidity consisted of approximately $759,000 in cash and $5,800,000 remaining availability on the Credit Facility[183]. Interest Rate Sensitivity - As of March 31, 2024, all debt investments had fixed interest rates, insulating them from market interest rate changes[193]. - A 1% increase in interest rates could lead to a decrease in net investment income by $192,000, while a 1% decrease could increase net investment income by $192,000[195]. - The company’s net investment income is dependent on the difference between borrowing rates and the rates earned on invested proceeds[194]. - Changes in interest rates can impact the company's ability to acquire loans and securities, as well as the value of its investment portfolio[194]. - The analysis of interest rate sensitivity does not account for changes in credit quality or other business developments that could affect net investment income[195]. - Future interest rate fluctuations may limit the company's ability to benefit from lower interest rates if hedging is implemented[196]. - The company does not currently engage in any hedging activities but may consider using standard hedging instruments in the future[196]. - The company is currently not engaged in any hedging activities to mitigate interest rate risks[196]. Fair Value Determination - Fair value of investments is determined by RCM and approved by the Board, with inherent risks in valuation due to market uncertainties[197]. - The company may face material risks associated with fair value determinations, which could differ significantly from actual liquidation values[197].

Financial Data and Key Metrics Changes - The company reported total investment income for Q4 2023 of $1.9 million, an increase of 11% year-over-year, driven by a 47% rise in interest income [28] - Full-year total investment income grew 27% to $7.3 million, reflecting new debt instruments [28] - Net investment income per share for Q4 2023 was $0.37, down from $0.48 in Q4 2022, while adjusted net investment income per share increased 11% to $1.46 for the full year [13][14] Business Line Data and Key Metrics Changes - The portfolio consisted of 64% debt investments, up from 56% at the end of 2022, resulting in improved portfolio yield [22] - The company invested a total of $20.3 million across nine transactions in 2023, primarily in interest-yielding assets [9] - The largest industry concentration, Professional Services, increased to 42% of the total portfolio, while Automotive and Consumer Products saw declines [10] Market Data and Key Metrics Changes - The company held investments with a fair value of $77.1 million at year-end, an increase of 25% from December 31, 2022 [24] - The top five portfolio companies represented 45% of the total portfolio at year-end, with Tilson as the largest investment at $10.6 million [27] Company Strategy and Development Direction - The company aims to grow by focusing on debt and related equity investments in privately held lower middle market companies to drive investment income growth and increase dividends [39] - Future investments are expected to range from $2 million to $4 million, targeting opportunities with favorable risk-adjusted returns [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong balance sheet and significant liquidity position, which positions the company well for future investments [30] - The company anticipates that its portfolio transformation towards more income-producing investments will support increased dividend levels over time [14] Other Important Information - Total dividends paid in 2023 were $1.33 per share, a 60% increase over 2022, including a special dividend of $0.38 per share in Q4 [6][7] - The net asset value at December 31, 2023, was $60.8 million, up 5% from the end of 2022, with net asset value per share increasing to $23.56 [37] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session [1]

($ in thousands, except per share data) • Driven by a 47% increase in interest from portfolio companies 10 Total investment income grew 27% © 2023 Rand Capital Corporation Nasdaq: RAND Net assets at 12/31/2022 Net investment income Net realized gain on sales and dispositions Net change in unrealized Cash dividend Net assets at 12/31/2023 $57,721 $2,968 $691 $2,868 ($3,433) $60,815 of investments appreciation on investments $57,721,320 $60,815,213 STRONG AND FLEXIBLE BALANCE SHEET 13 2024 OBJECTIVES • Levera ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [ x ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 [ ] 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: 814-00235 Rand Capital Corporation (Exact name of registrant as specified in its charter) New York 16-0961359 (S ...

Exhibit 99.1 NEWS RELEASE 14 Lafayette Square, Suite 1405 ● Buffalo, New York 14203 FOR IMMEDIATE RELEASE Rand Capital Reports 27% Increase in Total Investment Income for 2023 BUFFALO, NY, March 5, 2024 – Rand Capital Corporation (Nasdaq: RAND) ("Rand" or the "Company"), a business development company providing alternative financing for lower middle market companies, announced its results for the fourth quarter and full year ended December 31, 2023. Daniel P. Penberthy, President and Chief Executive Officer ...

| --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------|-------|--------|-------|--------| | Net investment income per share $ 0.31 $ 0.39 \nExclude (credits)/expenses for capital gains incentive fees (0.02) | | | | 0.01 | | Adjusted net investment income per share | | $ 0.29 | | $ 0.40 | *In addition to reporting Net Investment Income per Share, which is a U.S. generally accepted accounting principle ("GAAP") fin ...