Greetings and welcome to Rand Capital Corporation Third Quarter Fiscal Year 2024 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, Mr. Craig Mychajluk, Investor Relations. Thank you, Mr. Mychajluk, you may begin.

Thank you and good afternoon, everyone. We appreciate your interest in Rand Capital and for joining us today for our third quarter 2024 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're following along with the slide deck, please turn to Slide 2, 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'll also discuss some non-GAAP financial measures, we believe these will be useful in evaluating our performance, 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 3 and I'll hand the discussion over to Dan. Dan?

Thank you, Craig and good afternoon everyone. Rand delivered note a strong quarter of performance, driven by disciplined execution and strategic positioning in a complex market environment. We achieved robust growth in total investment income, increasing 27% over the prior year period to $2.2 million. The success was fueled by our commitment to building a well-diversified income-generating portfolio which included 5 new debt instruments over the year and enhanced fee income. Our net asset value per share rose 3% from the prior quarter, and 16% year-to-date, reaching $27.29 at the end of the third quarter. This growth reflects our careful management of a $75 million portfolio, now concentrated 74% in debt investments with an overall yield of 13.8%. These results underscore our focus on creating value through a balanced mix of assets, checking whether today is economic headwinds, while driving attractive returns. Additionally, we successfully exited several key investments this quarter, including a notable sale of SciAps which provided us with $13.1 million in proceeds. We have also sold our final positions in 2 public BVCs [ph] realizing proceeds of $1.3 million; this further strengthens our balance sheet and also increases our capacity for future investments. We initially allocated this capital to reducing our outstanding bank debt, lowering it by $13.3 million, leaving us with a balance of $3.9 million outstanding at quarter-end. We have benefited from recent Fed rate reduction and our debt paydowns, and are seeing lower interest expenses and improved profitability; a positive trend that supports our overall financial performance. With $24 million in total liquidity, we remained strategically positioned to capitalize on market dynamics as they unfold making selective, higher return investments that will further drive growth in long-term value. Our success in achieving strategic objectives over the past few years has translated into real benefits…

Thanks, Dan and good afternoon, everybody. I will start on Slide 10 which provides an overview of our financial summary for the third quarter of 2024. Total investment income for the quarter was $2.2 million, reflecting a 27% increase compared with the same quarter last year. This growth was primarily driven by a 27% rise in interest income attributed to 5 new interest-yielding investments made over the past year. Additionally, we experienced a $165,000 increase in fee income, largely due to the SciAps sale that Dan mentioned. In total, 21 portfolio companies contributed to our investment income during the quarter. On the expense side, total expenses for the third quarter amounted to approximately $1.3 million, up from $810,000 in the prior quarter. This increase included a $533,000 increase in incentive fees expense during the quarter. We did, however, benefit from a $46,000 decrease in interest expenses due to debt paydowns during the quarter. Incentive fees are comprised of 2 components: an income-based fee and a capital gains fee, both of which are contingent on meeting specified benchmarks. The income-based fee is calculated quarterly based on the pre-incentive fee net investment income with a hurdle rate of 1.75% per quarter or 7% annualized. For the 3 months ending September 30, 2024, this fee accrued at $178,000 with no similar expense incurred in the prior year period. The second component of the incentive fee is the capital gains fees. According to GAAP, we are required to accrue a capital gains incentive fee based on all our realized and unrealized gains and losses. Given the recent performance of our portfolio and realized gains, we recognized a higher accrual this quarter. When we adjust for accrued capital gains incentive fees, our adjusted expenses which is a non-GAAP financial measure, were $1 million this quarter…

Thanks, Margaret. Moving on to Slide 13. As we look ahead, our strategy remains clear and we are energized by the multiple pathways we have to enhance both our income and value creation. First, we continue to see significant potential in further expanding our debt portfolio, although we will always have the equity exposure which will provide future long-term gain potential. By building on our history of successful debt investments, we are positioned to drive income growth through targeted strategic originations that align with our long-term objectives. We are also committed to deploying available capital efficiently to fuel our growth. Our revolving credit facility provides essential flexibility and recent reductions in Fed interest rates and hopefully some more down the road, combined with debt paydowns, are already lowering our borrowing costs. These factors together set the stage for what we hope are strengthened profitability and increased dividend potential both of which are important pillars of our commitment to our shareholders. Optimizing our portfolio holdings is another priority as we assess current market conditions rather to refine positions and maximize future returns. Additionally, we recognize that our portfolio companies face a complex landscape with inflationary pressures, fluctuating interest rates and M&A challenges. Our role is to support the resilience, helping them navigate these headwinds so they can emerge even stronger. Finally, our commitment to driving shareholder returns is at the core of every decision we make. By growing our investment income, we aim to support increased dividends, contributing to sustainable long-term value for our investors. We are excited about the opportunities ahead and confident in our strategic direction to achieve these goals. Thank you for joining us today and your ongoing interest in Rand Capital. We look forward to updating you on 2 matters, the first is our fourth quarter dividend announcement expected in December and also our quarter and full year 2024 results which will be reported in March. Have a great day. End of Q&A: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.