Welcome to the Rand Capital Corporation First Quarter 2021 Financial Results. At this time, all participants are in a listen-only mode. A 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, Deborah Pawlowski, Investor Relations for Rand Capital. Thank you. You may begin.

Thank you and good afternoon everyone. We appreciate your interest in Rand Capital and for joining us today for our first quarter 2021 financial results conference call. On the line with me are Pete Grum, our Chief Executive Officer; and Dan Penberthy, our Executive Vice President and Chief Financial Officer. You should have a copy of the release that crossed the wires this morning as well as the slides that will accompany our conversation today. If not, they are available on our website at www.randcapital.com. If you are following along on the slide deck and would turn to Slide 2, I would like to point out some important information. As you are likely aware, we may make some forward-looking statements during this presentation and during the question-and-answer session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ from where we are today. You can find a summary of these risks and uncertainties and other factors in the earnings release as well as in other documents filed by the company with Securities and Exchange Commission. These documents can be found on our website or at sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today’s release With that please turn to Slide 3 and I will hand the discussion over to Pete to begin. Pete?

Thank you, Deb, and good afternoon everyone. We've started the year on a strong note as we continue to transform our portfolio from equity investments to income producing investments. For the quarter, the number of companies contributing to investment income nearly doubled over the prior year period, resulting in total investment income growing approximately 60% to $1 million, or $0.39 per share. Net asset value was up 16.9% to $20.87 per share. And this was primarily attributable to the increase in fair value of our investment in ACV Auctions, which completed their IPO at the end of March. We did report at a GAAP net investment loss of $0.84 per share. This is because during the quarter we accrued $2.6 million in non-cash expenses related to capital gains incentive fees, which were primarily attributed to ACV's unrealized appreciation. Absent this expense, adjusted net investment income was $0.16 per share demonstrating the success of our transformation into an income producing dividend paying BDC. As you know we announced to paying our first regular quarterly dividend of $0.10 per share during the first quarter. This was the combination of our transformation that began in 2019. At the end of April, we announced our second quarter dividend also at $0.10 per share. This year we have paid out $1.53 per share in dividends, including the $1.33 per share declared at the end of last year. Please turn to Slide 4. Now, we can discuss the progress we have made regarding our evolution of our investment portfolio to support our strategy. The 31% increase in fair value as shown here demonstrates the impact of ACV's IPO. We first invested 163,000 in ACV in 2016, and now have a fair value of over $15.8 million. Our shares are now restricted until September 20, 2021. At…

Thanks, Pete and good afternoon, everyone. Slide 9 provides an overview of our financial summary and operational highlights. Total investment income for the quarter was $1 million, an approximate 60% increase over last year and reflects a shift in our portfolio profile to more interest yielding assets as Pete explained. The quarter's income also benefited from approximately $180,000 of OID income, original issue discount, which resulted from loan payoffs, as well as a large annual dividend received from a portfolio company. Total expenses in the quarter were $3.2 million, up $2.6 million, which reflected the addition of accrued capital gains incentive fees during the quarter. These were primarily attributable to ACV’s unrealized depreciation. A capital gains incentive fee accrual under GAAP is calculated using the cumulative aggregate realized capital gains and losses, and then adjusting for the aggregate net change in unrealized capital appreciation or depreciation at the close of the period. It's important to highlight that while we record the GAAP expense related to the capital gains fee, no liability or payment is actually due or payable to the external manager until an actual realized exit occurs. Net investment loss was $2.2 million or $0.84 per share compared with income of $538,000 or $0.33 per share in the prior period. Last year’s first quarter included a $419,000 income tax benefit due to Rand's conversion to a RIC, or Regulated Investment Company, as well as a tax benefit received under the federal CARES Act. Excluding the accrued capital gains incentive fees, adjusted net investment income per share was $0.16 for the first quarter of 2021. Even with the increase in expenses, net assets from operations increased $8 million or $3.11 per share, again, largely impacted by ACV’s valuation change. Slide 10 provides a waterfall graph for the change in NAV…

Thank you, ladies and gentlemen, at this time, we will be conducting a question-and-answer session. [Operator Instructions] : :

There are no questions in the queue. I like to hand the call back to Mr. Grum for closing remarks.

Thank you for joining us today and for your interest in Rand Capital. We look forward to updating all of you on our second quarter results in August. Have a great day and stay safe.

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