Greetings. Welcome to Rand Capital Corporation Fourth Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Craig Mychajluk, Investor Relations. Thank you again. You may begin.

Yeah. Thank you, and good morning, everyone. We appreciate your interest in Rand Capital and for joining us today for our fourth quarter and full year 2022 financial results conference call. On the line with me are Dan Penberthy, our President and Chief Executive Officer; and Margaret Brechtel, our Executive Vice President and Chief Financial Officer. A copy of the release and slides that accompany our conversation is available at randcapital.com. If you are following along the slide deck, please turn to slide two, where I’d like to point out some important information. As you are likely aware, we may make some forward-looking statements during this presentation. 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 and other documents filed by the company with the 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 in accordance with Generally Accepted Accounting Principles. We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today’s earnings release. With that, please turn to slide three and I will hand the discussion over to Dan. Dan?

Thank you, Craig, and good morning, everyone. The fourth quarter capped off a strong year for Rand as we continue to execute our strategy by focusing on current cash yields in order to achieve our income producing goals. We advanced our investment portfolio composition towards more debt instruments with the addition of four interest-yielding investments over the past year. In total, our debt portfolio now makes up more than half of our total portfolio mix sitting at 56%, compared with 46% at the end of 2021. We delivered total investment growth of 40% for the quarter and over 41% for the full year period, which reflected increase in interest income from portfolio companies and higher portfolio dividends. While we have made great strides building out our portfolio that is delivering strong total investment income growth, we are equally focused on prudent expense management, which was demonstrated in the measurable improvement of our net investment income per share of $0.48 for the quarter, up 4 times from last year’s fourth quarter. For the full year, net investment income per share was $1.72 compared with the loss of $1.01 per share in 2021. These improved results enabled us to increase our return to shareholders. During 2022, we paid out total dividends of $0.83 per share, which represents an increase of nearly 90% over 2021 distributions. This included raising our quarterly dividend cash by 33% or $0.05 per share bringing it to $0.20 per share for the fourth quarter of 2022, and at the same time, paying a supplemental dividend of $0.18 per share. During the year, we invested over $7 million across seven transactions, which largely consisted of interest-yielding assets. I will highlight our fourth quarter investments in a moment. If you turn to slide four, you can see our portfolio mix…

Thanks, Dan, and good afternoon, everyone. I will start on slides nine and 10, which provide an overview of our financial summary and operational highlights for the 2022 fourth quarter and full year period. Total investment income for the quarter was over $1.7 million, up 40% over last year, driven by increased interest income from the four new debt instruments originated over the last year and higher dividend income. For the full year, total investment income grew over 41% to $5.8 million for similar reasons as the quarter. The number of portfolio companies contributing to an investment income was 24% at year end. Total expenses were approximately $371,000 during the fourth quarter, compared with $923,000 in the prior year quarter. This decrease reflects lower interest expense and a credit of accrued capital gain incentive fees given the decrease in unrealized depreciation on our publicly traded securities and Open Exchange and ITA valuation changes. As a reminder, a capital gain on our fee accrual under GAAP is calculated using the cumulative, aggregate realized capital gains and losses and the aggregate net change in unrealized capital appreciation and depreciation at the close of the period. Excluding the capital gains incentive fee, adjusted expenses, a non-GAAP financial measures were approximately $539,000, down 36% from the prior year period, due to continued expense management and lower interest expense. Full year 2022 total expenses decreased to $1.1 million from $6.7 million, largely due to an approximate $5.3 million swing within the capital gains incentive fee accrual. Specifically, 2021 included $4.2 million of capital gain incentive fees, whereas in 2022, it included a reversal of $1 million of these fees. The total expense decrease also reflects the elimination of interest expense payments for the SBA obligation, which was paid in full in November of 2021. When…

Thanks, Margaret. We entered 2023 with momentum on our side. We believe we have a strong and flexible balance sheet that is supported by multiple sources of capital. Beyond our cash on hand, our line of credit availability, we also still have highly liquid publicly traded ACV and our BDC stocks, potential proceeds from portfolio exits, and of course, our prospective investment income. We are actively building a pipeline of investment opportunities in order to put this capital to work. We are focused on investing in higher yielding debt instruments and related equity investments in these privately held lower middle market companies, which have a committed and experienced management team across a broad variety of industries. This may include follow-on investments in existing portfolio companies as well that continue to demonstrate and perform and exhibit great and exceptional growth potential. Overall, we are excited about our future and believe we can continue to execute our strategy to drive investment income growth in order to enable us to further grow our distributable dividends over time. Thank you for joining us today and for your continued interest in Rand Capital. We look forward to updating you on all of our first quarter 2023 results, which will be reported in May. We hope you have a great day.

Thank you. This does conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.