Greetings, and welcome to the Horizon Technology Finance Corporation Second Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Megan Bacon, Marketing Support Manager. Thank you. You may begin.

Thank you, and welcome to the Horizon Technology Finance second quarter 2019 conference call. Representing the company today are Rob Pomeroy, Chairman and Chief Executive Officer; Gerry Michaud, President; and Dan Trolio, Chief Financial Officer.I would like to point out that the Q2 earnings press release and Form 10-Q are available on the company’s website at horizontechfinance.com.Before we begin our formal remarks, I remind everyone that during this conference call, Horizon Technology Finance will make certain forward-looking statements, including statements with regard to the future performance of the company. Words such as believes, expects, anticipates, intends, or similar expressions are used to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions.Certain factors could cause actual results to differ on a material basis from those projected in these forward-looking statements. And some of these factors are detailed in the risk factor discussion in the company’s filings with the Securities and Exchange Commission, including the company’s Form 10-K for the year ended December 31, 2018. The company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.At this time, I would like to turn the call over to Rob Pomeroy.

Good morning, and thank you all for joining us. Today, we highlighted our second quarter results, which showed strong performance across the Board. In the quarter, we grew our portfolio for the fifth consecutive quarter and ended with a total portfolio of $275 million, including $242 million in venture debt investments.We recorded net investment income per share of $0.37, $0.07 above our distribution. NII was aided by a larger earning portfolio and an active quarter for liquidity events, which is an integral part of the design of our predictive pricing strategy. We had a record weighted average debt investment yield for the quarter of 16.8%, which takes into account regularly scheduled interest and fee income, as well as income from liquidity events.Our NAV as of June 30 was $11.60, up $0.05 from the prior quarter-end, driven by our net investment income performance and stable credit quality. We maintained stability in terms of our asset quality, as we continue to proactively manage our portfolio. And based upon our earnings and outlook, our Board declared monthly distributions of $0.10 per share through the end of the year.Overall, our current portfolio continues to perform well, and we remain positioned to build on our success in the second-half of 2019 and beyond.Turning to our investment activity. In the second quarter, we funded eight new loans, totaling $55 million and increased our portfolio on a net basis by $9 million from March 31. We also closed on $79 million in new approvals and commitments and maintained the committed backlog of $58 million at the end of the quarter.While the summer months are normally slower in terms of funding new investments, our overall pipeline remains robust, demand for venture debt continues to be strong, and we look forward to growing the Horizon portfolio and our joint…

Thanks, Rob. Good morning, everyone. Our second quarter reflected continued momentum towards disciplined quality and profitable growth. We added eight new floating rate transactions to our portfolio, totaling $55 million. Thus far in the third quarter, we funded an additional $5 million venture loan.We achieved an onboarding yield in the second quarter of 12%, as we maintained our disciplined underwriting approach. We experienced seven loan portfolio exits during the quarter, totaling $31.5 million. The prepayment and accelerated income from these events resulted in a loan portfolio yield for the quarter of 16.8%, our highest quarterly portfolio yield since our inception.In addition, our joint venture funded portions of two portfolio investments totaling $10 million in Q2, which was fully funded by our New York Life debt facility. We continue to maintain a premium yielding debt portfolio, as reflected by our leading yield position in the BEC industry, which generates a predictable income stream, where we continue to grow our portfolio and add investments with new ATPs, prepayment opportunities and warrants.We closed $79 [ph] million in new loan commitments and approvals and ended the second quarter with a committed backlog of $58 million, roughly in line with a backlog of $60 million at the end of the first quarter of 2019.Our committed, approved and awarded backlog as of June 30 was $70.7 million to 12 companies and a pipeline of new opportunities of over $600 million. This robust committed backlog and pipeline sets us up well to execute on growing our portfolio and income stream, while continuing to enhance NII with prepayment and accelerated income.As of June 30, we held warrant and equity positions in 74 portfolio companies, with a fair value of $12.8 million. In Q2, we received proceeds in connection with the termination of our warrants and Powerhouse Dynamics and…

Thanks, Gerry, and good morning, everyone. Let’s turn to our financial results for the second quarter of 2019. Horizon earned total investment income of $10.5 million for the second quarter of 2019, a 43% increase compared to $7.3 million in the prior period. This increase was primary due to higher interest income on investments, given the larger average size of our loan portfolio, as well as the income generated from a higher level of prepayments.As of June 30, 2019, our debt investment portfolio had grown to $242 million, a 3% increase from March 2019 and 12% growth from the year-end in 2018. For the second quarter of 2019, we achieved onboarding yields of 12%, a slight increase compared to 11.9% in the first quarter of 2019. Our loan portfolio yield was a record 16.8% for the second quarter of 2019, compared to 14.4% in the first quarter of 2019 and 15.3% for last year’s second quarter.Turning to our expenses. For the second quarter, total net expenses were $5.5 million, compared to $4 million in the second quarter of 2018. Our interest expense was up $660,000 compared to the prior year period due to additional average borrowings and the increase in the one-month LIBOR.Our net incentive fee increased $430,000, due primarily to higher pre-incentive fee net investment income. While our base management fee rose $280,000, driven by an increase in the average size of our portfolio. As a reminder, under the new Investment Management Agreement, Horizon pays a two-tiered management fee, which includes a management fee of 1.6% of gross assets less cash above $250 million in assets.With our successful deployment of our most recent equity raise, we have exceeded the asset hurdle and our shareholders are benefiting from the lower management fee rate. As a note, with the $700,000 of…

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Mr. Pomeroy, it appears we have no further questions at this time. I would like to turn the call back over to you for closing comments.

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

Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.