Princeton Capital Corporation - Company Summary

Overview & Core Activities:

• Princeton Capital Corporation is a non-diversified, closed-end investment company that operates as a Business Development Company (BDC) under the Investment Company Act of 1940.
• Managed externally by House Hanover, LLC since January 1, 2018.
• Focuses on providing debt and equity financing to private small and lower middle-market companies primarily in the United States.

Investment Focus:

• Invests mainly through first lien loans, second lien loans, unsecured loans, unitranche and mezzanine debt financings, frequently with corresponding equity investments.
• The objective is to maximize total returns for stockholders via current income and capital appreciation.

Assets & Portfolio:

• As of December 31, 2024, the company held investments in 4 portfolio companies with a total fair value of approximately $19.2 million.
• Historical investments in 2023 included 5 portfolio companies with a total fair value of approximately $29.7 million.
• The current investment portfolio is primarily concentrated in the US (over 91%).
• Sector allocations include casual dining, staffing, energy services, and manufacturing (nickel pipe and fittings).

Revenue & Income:

• For the year ended December 31, 2024, total investment income was approximately $1.38 million, mainly from interest income on debt investments.
• Interest income included PIK (payment-in-kind) interest of about $318,417 in 2024.
• Operating expenses for 2024 totaled about $1.52 million, including management fees, legal, audit, and administrative costs.
• Net investment loss after tax for 2024 was approximately $138,637, compared to a net income of about $816,574 in 2023.
• The company recognized a net realized loss of about $5.55 million in 2024, and unrealized losses of approximately $5.17 million, leading to an overall decline in net assets for the year.

Financial Position:

• As of December 31, 2024, net assets totaled approximately $21.04 million, down from about $31.9 million at the end of 2023.
• The company does not currently pay dividends; it last paid one in 2022.
• As of April 1, 2025, the company had 120,486,061 shares of common stock outstanding, primarily beneficially owned (~95%) by partnerships.

Management & Operations:

• Managed by House Hanover, LLC under an advisory agreement.
• No direct employees; operational and managerial activities are delegated to House Hanover.
• Does not currently have an equity incentive plan.

Additional Details:

• The company’s stock trades sporadically on the OTC Pink Market under the symbol “PIAC”.
• The stockholders include approximately 38 record holders, with a significant concentration (about 95%) held beneficially by partnerships.
• The company is taxed as a C corporation for 2024, not qualifying as a RIC due to net operating losses and strategic considerations.

Legal & Regulatory:

• No material legal proceedings as of December 31, 2024.
• The company’s investment activities involve risks related to credit, illiquidity, and market value fluctuations, particularly in private, non-publicly traded securities.

Summary:
Princeton Capital Corporation primarily finances small and lower middle-market private companies in the US through debt and equity investments. Its investment portfolio is concentrated, and its financial performance in 2024 showed net losses driven by realized and unrealized investment declines. The company is managed externally, with no direct employees, and does not currently pay dividends. Its stock is thinly traded on the OTC Pink Market, and it continues a strategic review process to explore future options.