Venture Lending & Leasing IX 10Q 2024 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


[X]			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


[ ]			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ______________

Commission file number 814-01253

Venture Lending & Leasing IX, Inc.

(Exact Name of Registrant as specified in its charter)


Maryland			82-2040715
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

104 La Mesa Drive, Suite 102, Portola Valley, CA			94028
(Address of principal executive offices)			(Zip Code)

(650) 234-4300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]

Accelerated filer [ ]

Non-accelerated filer [x]

Smaller reporting company [ ]

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


Class						Outstanding as of November 13, 2024
Common Stock, $0.001 par value						100,000

VENTURE LENDING & LEASING IX, INC.

INDEX


PART I — FINANCIAL INFORMATION

Item 1.			Financial Statements

			Condensed Statements of Assets and Liabilities (Unaudited)
			As of September 30, 2024 and December 31, 2023

			Condensed Statements of Operations (Unaudited)
			For the three and nine months ended September 30, 2024 and 2023

			Condensed Statements of Changes in Net Assets (Unaudited)
			For the three and nine months ended September 30, 2024 and 2023

			Condensed Statements of Cash Flows (Unaudited)
			For the nine months ended September 30, 2024 and 2023

			Condensed Schedules of Investments (Unaudited)
			As of September 30, 2024 and December 31, 2023




			Notes to Condensed Financial Statements (Unaudited)

Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.			Quantitative and Qualitative Disclosures About Market Risk

Item 4.			Controls and Procedures

PART II — OTHER INFORMATION

Item 1.			Legal Proceedings

Item 1A.			Risk Factors

Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.			Defaults Upon Senior Securities

Item 4.			Mine Safety Disclosures

Item 5.			Other Information

Item 6.			Exhibits

SIGNATURES

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023


	September 30, 2024		December 31, 2023
ASSETS
Loans, at estimated fair value
(cost of $231,635,951 and $350,627,997, respectively)	$	174,506,078	$	302,804,781
Derivative assets	996,110		3,049,177
Cash and cash equivalents	12,980,293		21,517,408
Dividend and interest receivables	1,821,588		3,869,697
Other assets	1,545,488		2,233,766

Total assets	191,849,557		333,474,829

LIABILITIES
Borrowings under debt facility	58,000,000		142,500,000
Accrued management fees	690,000		1,035,000


Accounts payable and other accrued liabilities	480,510		1,249,996
Total liabilities	59,170,510		144,784,996

NET ASSETS	$	132,679,047	$	188,689,833

Analysis of Net Assets:

Capital paid in on shares of capital stock	$	407,125,000	$	407,125,000
Cumulative return of capital distributions	(221,298,068)		(172,512,838)
Total distributable losses	(53,147,885)		(45,922,329)
Net assets (equivalent to $1,326.79 and $1,886.90 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)	$	132,679,047	$	188,689,833

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023


	For the Three Months Ended September 30, 2024		For the Three Months Ended September 30, 2023		For the Nine Months Ended September 30, 2024		For the Nine Months Ended September 30, 2023

INVESTMENT INCOME:
Interest on loans	$	6,070,788	$	15,211,971	$	26,588,056	$	54,269,708
Other income	128,091		302,652		701,867		1,828,538
Total investment income	6,198,879		15,514,623		27,289,923		56,098,246

EXPENSES:
Management fees	690,000		1,035,000		2,760,000		3,910,000
Interest expense	1,562,311		4,180,091		6,477,729		13,429,987
Banking and professional fees	80,023		38,558		401,223		239,214
Other operating expenses	75,798		55,084		303,374		150,080
Total expenses	2,408,132		5,308,733		9,942,326		17,729,281
Net investment income	3,790,747		10,205,890		17,347,597		38,368,965

Net realized loss from loans	—		(438,580)		(4,482,099)		(437,324)
Net realized gain from derivative instruments	516,347		1,444,268		2,383,856		7,135,561
Net change in unrealized loss from loans	(2,246,401)		(12,428,521)		(9,306,656)		(14,636,112)
Net change in unrealized loss from derivative instruments	(774,938)		(1,066,795)		(2,053,067)		(5,374,984)
Net realized and change in unrealized loss from loans and derivative instruments	(2,504,992)		(12,489,628)		(13,457,966)		(13,312,859)

Net increase (decrease) in net assets resulting from operations	$	1,285,755	$	(2,283,738)	$	3,889,631	$	25,056,106

Amounts per common share:
Net increase (decrease) in net assets resulting from operations per share	$	12.86	$	(22.84)	$	38.90	$	250.56
Weighted average shares outstanding	100,000		100,000		100,000		100,000

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023


	Common Stock
	Shares	Par Value		Additional Paid-in Capital		Return of Capital Distributions		Total Distributable Losses		Net Assets
Balance at June 30, 2023	100,000	$	100	$	407,124,900	$	(133,014,765)	$	(29,234,004)	$	244,876,231
Net decrease in net assets resulting from operations	—	—		—		—		(2,283,738)		(2,283,738)
Distribution of income to shareholder	—	—		—		—		(11,211,578)		(11,211,578)
Return of capital to shareholder	—	—		—		(39,143,898)		—		(39,143,898)

Balance at September 30, 2023	100,000	$	100	$	407,124,900	$	(172,158,663)	$	(42,729,320)	$	192,237,017

Balance at June 30, 2024	100,000	$	100	$	407,124,900	$	(221,298,068)	$	(54,260,715)	$	131,566,217
Net increase in net assets resulting from operations	—	—		—		—		1,285,755		1,285,755
Distribution of income to shareholder	—	—		—		—		(172,925)		(172,925)


Balance at September 30, 2024	100,000	$	100	$	407,124,900	$	(221,298,068)	$	(53,147,885)	$	132,679,047








Balance at December 31, 2022	100,000	$	100	$	407,124,900	$	(116,194,481)	$	(22,718,224)	$	268,212,295
Net increase in net assets resulting from operations	—	—		—		—		25,056,106		25,056,106
Distribution of income to shareholder	—	—		—		—		(45,067,202)		(45,067,202)
Return of capital to shareholder	—	—		—		(55,964,182)		—		(55,964,182)

Balance at September 30, 2023	100,000	$	100	$	407,124,900	$	(172,158,663)	$	(42,729,320)	$	192,237,017

Balance at December 31, 2023	100,000	$	100	$	407,124,900	$	(172,512,838)	$	(45,922,329)	$	188,689,833
Net increase in net assets resulting from operations	—	—		—		—		3,889,631		3,889,631
Distributions of income to shareholder	—	—		—		—		(11,115,187)		(11,115,187)
Return of capital to shareholder	—	—		—		(48,785,230)		—		(48,785,230)

Balance at September 30, 2024	100,000	$	100	$	407,124,900	$	(221,298,068)	$	(53,147,885)	$	132,679,047

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023


	For the Nine Months Ended September 30, 2024		For the Nine Months Ended September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	3,889,631	$	25,056,106
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net realized loss from loans	4,482,099		437,324
Net realized gain from derivative instruments	(2,383,856)		(7,135,561)
Net change in unrealized loss from loans	9,306,656		14,636,112
Net change in unrealized loss from derivative instruments	2,053,067		5,374,984
Amortization of deferred costs related to borrowing facility	421,517		797,974
Origination of loans	(545,652)		(27,562,500)
Principal payments on loans, net of accretion	106,197,183		152,674,104
Proceeds from sale of loan	—		1,043,138
Acquisition of equity securities	—		(750,786)
Change in operating assets and liabilities:
Net decrease in dividend and interest receivables	2,048,109		2,034,665
Net decrease in other assets	266,761		1,367,210
Net decrease in accounts payable, other accrued liabilities and accrued management fees	(1,114,486)		(1,729,687)
Net cash provided by operating activities	124,621,029		166,243,083

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to shareholder	(51,042,000)		(97,992,000)

Borrowings under debt facility	—		6,500,000
Repayments of borrowings under debt facility	(84,500,000)		(73,500,000)

Payments received from derivative instruments	2,383,856		7,135,561

Net cash used in financing activities	(133,158,144)		(157,856,439)

Net increase (decrease) in cash and cash equivalents	(8,537,115)		8,386,644

CASH AND CASH EQUIVALENTS:
Beginning of period	21,517,408		7,074,657
End of period	$	12,980,293	$	15,461,301

SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE PERIOD:
Interest - Debt facility	$	6,719,012	$	12,652,909
NON-CASH OPERATING AND FINANCING ACTIVITIES:
Distributions of equity securities to shareholder	$	8,858,417	$	3,039,384
Receipt of equity securities as repayment of loans	$	8,858,417	$	2,288,598

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF SEPTEMBER 30, 2024


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Biotechnology
	Calysta, Inc.		Senior Secured	11.8%		$	2,105,527	$	2,072,176	$	2,072,176	6/1/2025
	Genomic Prediction, Inc.		Senior Secured	11.0%		148,171		146,787		146,787		1/1/2025
	GLO Pharma, Inc.		Senior Secured	10.5%		222,215		221,228		221,228		12/1/2024
	GLO Pharma, Inc.		Senior Secured	10.5%		333,154		332,260		332,260		12/1/2024
	GLO Pharma, Inc. Subtotal					555,369		553,488		553,488
	Ukko Inc.		Senior Secured	11.5%		2,444,684		2,370,050		2,370,050		5/1/2026
Biotechnology Total		3.9%				$	5,253,751	$	5,142,501	$	5,142,501

Computers & Storage
	Canary Connect, Inc.		Senior Secured	13.8%		$	9,719,635	$	9,719,635	$	9,719,635	3/1/2026
	Proto, Inc.		Senior Secured	12.8%		650,711		650,710		650,710		10/1/2025
	Proto, Inc.		Senior Secured	12.5%		649,637		631,020		631,020		10/1/2025
	Proto, Inc. Subtotal					1,300,348		1,281,730		1,281,730
Computers & Storage Total		8.3%				$	11,019,983	$	11,001,365	$	11,001,365

Enterprise Networking
	Diamanti, Inc.		Senior Secured	11.0%		$	5,404,212	$	3,404,643	$	3,404,643	*
Enterprise Networking Total		2.6%				$	5,404,212	$	3,404,643	$	3,404,643

Internet
	10club Pte Ltd. ** ^		Senior Secured	12.0%		$	5,350,238	$	4,838,562	$	3,243,319	*
	D2C Store, Inc.		Senior Secured	10.0%		1,355,572		977,688		977,688		*
	Good Counsel, Inc.		Senior Secured	12.3%		1,919,630		1,779,689		1,779,689		4/1/2026
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		3,001,339		2,976,443		2,096,843		*
	Miami Labs, Inc.		Senior Secured	13.3%		6,387,929		6,206,977		6,206,977		5/1/2026
	OneLocal, Inc. ** ^		Senior Secured	12.0%		895,869		884,031		884,031		1/1/2025
	Quantcast Corp.		Senior Secured	12.0%		9,529,103		9,134,951		9,134,951		7/1/2026
	Residently USA, LLC ** ^		Senior Secured	12.0%		405,040		385,447		385,447		4/1/2026
	RetailerX, Inc.		Senior Secured	11.3%		5,527,786		5,450,354		5,450,354		*
	Serface Care, Inc.		Senior Secured	12.3%		597,411		344,785		—		*
	Stay Alfred, Inc.		Senior Secured	18.0%		4,921,822		3,408,326		—		*
	Usual Beverage Co.		Senior Secured	12.0%		1,652,823		1,256,063		—		*
	Verishop, Inc.		Senior Secured	12.6%		299,944		299,444		299,444		12/1/2024
	Vinvesto, Inc.		Senior Secured	15.0%		176,964		176,964		176,964		5/1/2026
	Vinvesto, Inc.		Senior Secured	14.8%		176,798		166,309		166,309		5/1/2026
	Vinvesto, Inc. Subtotal					353,762		343,273		343,273
Internet Total		23.2%				$	42,198,268	$	38,286,033	$	30,802,016

Medical Devices
	Anutra Medical, Inc.		Senior Secured	18.0%		$	398,742	$	346,750	$	—	*
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,837,164		—		*
	Siren Care, Inc.		Senior Secured	13.5%		388,670		388,065		388,065		1/1/2025
Medical Devices Total		0.3%				$	10,787,412	$	9,571,979	$	388,065

Other Healthcare
	Elysium Health, Inc.		Senior Secured	12.0%		$	1,195,908	$	1,177,354	$	1,177,354	2/1/2025
	Hello Heart Inc.		Senior Secured	11.0%		650,973		648,759		648,759		6/1/2025
	Honeybee Health, Inc.		Senior Secured	11.0%		894,235		870,927		870,927		9/1/2025
	Julie Products Inc.		Senior Secured	15.8%		303,015		298,203		298,203		6/1/2026
	Julie Products Inc.		Senior Secured	13.0%		481,232		467,349		467,349		9/1/2025


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Julie Products Inc.		Senior Secured	15.3%		277,119		272,975		272,975		4/1/2026
	Julie Products Inc. Subtotal					1,061,366		1,038,527		1,038,527
	KBS, Inc.		Senior Secured	14.0%		184,103		173,296		173,296		6/1/2026
	Minded, Inc.		Senior Secured	11.2%		2,224,305		2,008,841		—		*
	Open Inc.		Senior Secured	13.5%		320,228		309,929		309,929		3/1/2026
	Open Inc.		Senior Secured	14.8%		322,057		318,790		318,790		3/1/2026
	Open Inc. Subtotal					642,285		628,719		628,719
	PrecisionOS Technology Inc. ** ^		Senior Secured	12.0%		367,485		360,024		360,024		7/1/2025
	Therapydia, Inc.		Senior Secured	12.5%		478,040		331,037		331,037		*
	Vessel Health, Inc.		Senior Secured	12.0%		711,734		618,971		471,310		*
	Yuva Biosciences, Inc.		Senior Secured	13.3%		175,797		164,008		164,008		5/1/2026
Other Healthcare Total		4.4%				$	8,586,231	$	8,020,463	$	5,863,961

Other Technology
	Airspeed, Inc.		Senior Secured	11.0%		$	1,101,447	$	1,020,819	$	1,020,819	5/1/2027
	Azumo, Inc.		Senior Secured	12.8%		957,356		913,213		548,094		*
	Bankroll Club, LLC		Senior Secured	12.9%		4,262,576		3,955,801		1,051,870		*
	Beautiful Beanfields, Inc.		Senior Secured	6.0%		275,000		255,543		125,523		*
	BloomTech Inc.		Senior Secured	11.3%		291,150		291,150		291,150		5/1/2026
	Brave Care Technologies, Inc.		Senior Secured	12.0%		738,617		665,361		665,361		6/1/2026
	Bryte, Inc.		Senior Secured	10.0%		1,694,943		1,708,964		1,088,694		*
	Candy Club Holdings, Inc.		Senior Secured	8.5%		750,000		734,522		366,152		*
	Ceres Imaging, Inc.		Senior Secured	12.0%		2,843,184		2,781,445		2,781,445		*
	Content Adjacent, Inc.		Senior Secured	12.0%		1,370,177		1,275,059		1,275,059		10/1/2027
	Copia Global Inc. ** ^		Senior Secured	12.0%		7,745,971		7,693,807		—		*
	CornerUp, Inc.		Senior Secured	15.0%		392,046		359,248		—		*
	Creoate Limited ** ^		Senior Secured	14.0%		160,480		158,763		158,763		3/1/2026
	Creoate Limited ** ^		Senior Secured	11.8%		402,917		392,116		392,116		12/1/2025
	Creoate Limited ** ^		Senior Secured	15.5%		486,410		478,746		478,746		2/1/2027
	Creoate Limited Subtotal ** ^					1,049,807		1,029,625		1,029,625
	Daybase, Inc.		Senior Secured	11.0%		2,018,671		1,798,943		—		*
	Digital. Thing(s), Inc.		Senior Secured	12.0%		390,777		334,715		334,715		10/1/2025
	Eguana Technologies, Inc. ** ^		Senior Secured	12.0%		2,950,130		2,970,310		2,797,875		*
	Fanimal, Inc.		Senior Secured	11.8%		129,122		119,671		119,671		2/1/2026
	Fanimal, Inc.		Senior Secured	11.8%		244,921		241,649		241,649		7/1/2026
	Fanimal, Inc.		Senior Secured	11.8%		357,616		350,890		350,890		7/1/2027
	Fanimal, Inc.		Senior Secured	11.8%		214,354		210,710		210,710		3/1/2027
	Fanimal, Inc. Subtotal					946,013		922,920		922,920
	Heading Health Inc.		Senior Secured	12.5%		1,208,548		955,616		253,305		*
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,978,486		1,958,262		1,958,262		6/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		801,329		796,139		796,139		2/1/2025
	Higher Ground Education, Inc. Subtotal					2,779,815		2,754,401		2,754,401
	Hint, Inc.		Senior Secured	12.0%		2,408,347		2,295,196		2,295,196		5/1/2025
	Holo, Inc.		Senior Secured	13.5%		535,877		393,888		393,888		*
	Hyphen Technologies, Inc.		Senior Secured	11.5%		1,903,711		1,858,863		1,858,863		3/1/2026
	Intuition Robotics, Inc. ** ^		Senior Secured	12.0%		1,261,768		1,239,202		1,239,202		11/1/2025
	Invert Robotics Group, Ltd.		Senior Secured	13.0%		450,579		444,164		444,164		5/1/2025
	Joy Memories, Inc		Senior Secured	12.0%	6.9%	895,307		813,293		813,293		6/1/2027
	Kibeam Learning, Inc.		Senior Secured	11.5%		342,370		335,728		335,728		6/1/2025
	Lacuna Technologies, Inc.		Senior Secured	12.0%		3,432,568		3,240,601		—		*
	LendTable Inc.		Senior Secured	13.5%		1,280,911		1,243,214		1,243,214		3/1/2026


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	LendTable Inc.		Senior Secured	14.8%		1,243,568		1,225,611		1,225,611		9/1/2026
	LendTable Inc. Subtotal					2,524,479		2,468,825		2,468,825
	Logistech Solutions Pte. Ltd. ** ^		Senior Secured	12.8%		855,090		844,346		844,346		10/1/2026
	Logistech Solutions Pte. Ltd. ** ^		Senior Secured	11.5%		268,218		244,829		244,829		12/1/2025
	Logistech Solutions Pte. Ltd. Subtotal ** ^					1,123,308		1,089,175		1,089,175
	Mavenform, Inc.		Senior Secured	11.1%		1,448,622		1,436,035		1,135,633		10/1/2025
	Merlin Labs, Inc.		Senior Secured	11.0%		836,350		826,066		826,066		6/1/2025
	MinoMonsters, Inc. ** ^		Senior Secured	11.5%		94,373		94,185		94,185		10/1/2024
	Noteleaf, Inc.		Senior Secured	18.0%		2,277,124		1,836,011		—		*
	Ocho Holdings Co.		Senior Secured	11.3%	44.1%	150,239		332,263		332,263		12/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		327,042		303,594		303,594		*
	Plant Prefab, Inc.		Senior Secured	11.6%		2,887,000		2,739,956		2,402,579		*
	PlantBaby, Inc.		Senior Secured	14.3%		88,232		86,215		86,215		5/1/2026
	PlantBaby, Inc.		Senior Secured	13.8%		72,074		67,105		67,105		1/1/2026
	PlantBaby, Inc.		Senior Secured	12.0%		58,863		58,174		58,174		10/1/2025
	PlantBaby, Inc.		Senior Secured	12.0%		45,936		45,511		45,511		7/1/2025
	PlantBaby, Inc.		Senior Secured	12.0%		74,232		72,261		72,261		5/1/2025
	PlantBaby, Inc. Subtotal					339,337		329,266		329,266
	Platform Science, Inc.		Senior Secured	12.5%		3,187,590		3,158,500		3,158,500		3/1/2026
	Platform Science, Inc.		Senior Secured	12.5%		3,026,423		2,913,349		2,913,349		2/1/2026
	Platform Science, Inc. Subtotal					6,214,013		6,071,849		6,071,849
	Reali Inc.		Senior Secured	12.5%		11,275,525		8,533,922		23,751		*
	Rise Gardens, Inc.		Senior Secured	11.8%		1,380,944		1,201,703		616,757		*
	Romaine Empire, Inc.		Senior Secured	13.5%	4.1%	8,887,530		8,717,489		8,717,489		12/1/2027
	SISU Aesthetics Clinic, Inc. ** ^		Senior Secured	13.5%		672,463		656,983		656,983		4/1/2026
	SISU Aesthetics Clinic, Inc. ** ^		Senior Secured	14.0%		528,895		526,108		526,108		5/1/2026
	SISU Aesthetics Clinic, Inc. Subtotal ** ^					1,201,358		1,183,091		1,183,091
	SMS OPCO LLC		Senior Secured	8.0%		29,942		11,192		—		*
	Supplant, Inc. ** ^		Senior Secured	13.0%		1,529,322		1,484,096		1,484,096		7/1/2026
	Supplant, Inc. ** ^		Senior Secured	16.0%		458,715		452,053		452,053		12/1/2026
	Supplant, Inc. Subtotal ** ^					1,988,037		1,936,149		1,936,149
	Sustainable Living Partners, LLC		Senior Secured	12.5%		13,926,305		13,053,386		10,885,490		*
	The Farm Project, PBC.		Senior Secured	15.0%		2,272,202		2,246,507		1,910,368		6/1/2026
	TheSquareFoot, Inc.		Senior Secured	18.0%		628,478		325,058		—		*
	Titan Health & Security Technologies, Inc.		Senior Secured	12.0%		603,234		593,002		593,002		8/1/2025
	TLNT Inc.		Senior Secured	15.0%		1,068,549		1,011,697		—		*
	Umbra Lab, Inc.		Senior Secured	13.5%		3,362,317		3,295,205		3,295,205		4/1/2026
	Velo Holdings Limited		Senior Secured	12.0%		2,471,720		1,139,974		1,139,974		*
	Virtuix Holdings, Inc.		Senior Secured	12.3%		218,838		216,172		216,172		9/1/2025
	Wheels Labs, Inc. **		Senior Secured	12.0%		700,000		700,000		336,687		*
	Zeno Technologies, Inc.		Senior Secured	10.0%		251,129		233,996		233,996		*
	Zimeno Inc.		Senior Secured	11.5%		5,331,510		5,264,626		5,264,626		10/1/2026
	Zimeno Inc.		Senior Secured	11.5%		3,559,943		3,463,205		3,463,205		1/1/2026
	Zimeno Inc. Subtotal					8,891,453		8,727,831		8,727,831
Other Technology Total		60.0%				$	122,376,203	$	113,695,996	$	79,556,739

Security
	Axiado Corporation		Senior Secured	10.5%		$	1,136,161	$	1,103,068	$	1,103,068	10/1/2025
	Axiado Corporation		Senior Secured	10.5%		1,136,161		1,136,155		1,136,155		10/1/2025
	Axiado Corporation Subtotal					2,272,322		2,239,223		2,239,223


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Popily, Inc.		Senior Secured	12.5%		1,998,517		1,559,440		50,721		*
Security Total		1.7%				$	4,270,839	$	3,798,663	$	2,289,944

Software
	Abacum Inc. ** ^		Senior Secured	13.5%		$	1,284,466	$	1,227,536	$	1,227,536	10/1/2026
	BackboneAI Inc.		Senior Secured	12.3%		82,500		82,262		—		*
	Bizly, Inc.		Senior Secured	12.5%		1,636,014		1,589,589		1,589,589		3/1/2027
	BlueCart, Inc.		Senior Secured	14.1%		1,177,871		1,031,569		1,031,569		12/1/2026
	Canopy Technology Corp.		Senior Secured	15.0%		644,843		636,883		636,883		3/1/2026
	Canopy Technology Corp.		Senior Secured	13.5%		764,151		741,532		741,532		11/1/2025
	Canopy Technology Corp. Subtotal					1,408,994		1,378,415		1,378,415
	Chowbus, Inc.		Senior Secured	12.0%		1,075,984		1,043,474		1,043,474		3/1/2025
	Common Sun, Inc		Senior Secured	11.0%		975,747		944,373		944,373		7/1/2026
	Common Sun, Inc		Senior Secured	11.0%		402,883		402,880		402,880		1/1/2027
	Common Sun, Inc Subtotal					1,378,630		1,347,253		1,347,253
	Eskalera, Inc.		Senior Secured	12.0%		1,263,656		1,232,443		1,232,443		10/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		267,432		255,840		255,840		12/1/2025
	Form Remodel, Inc.		Senior Secured	11.0%		300,357		298,071		298,071		2/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		364,407		361,011		361,011		6/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		395,422		391,371		391,371		8/1/2026
	Form Remodel, Inc. Subtotal					1,327,618		1,306,293		1,306,293
	FutureProof Technologies, Inc.		Senior Secured	13.5%		735,155		705,041		705,041		6/1/2026
	Grokker, Inc.		Senior Secured	11.5%		285,591		280,681		280,681		4/1/2026
	Grokker, Inc.		Senior Secured	11.5%		189,366		187,901		187,901		3/1/2025
	Grokker, Inc. Subtotal					474,957		468,582		468,582
	HaystacksAI, Inc.		Senior Secured	12.3%		809,810		782,843		782,843		6/1/2027
	Hoken Holdings Inc.		Senior Secured	13.0%		439,073		412,728		412,728		5/1/2026
	Ketch Kloud, Inc.		Senior Secured	13.0%		6,931,112		6,689,676		6,689,676		4/1/2027
	Ocurate, Inc.		Senior Secured	11.5%	25.9%	638,958		695,716		150,000		10/1/2025
	Ratio Technologies, Inc.		Senior Secured	11.0%		141,842		122,867		122,867		1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		339,003		335,259		335,259		1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		937,577		927,362		927,362		1/1/2027
	Ratio Technologies, Inc. Subtotal					1,418,422		1,385,488		1,385,488
	Safe Securities Inc.		Senior Secured	11.5%		2,208,996		2,177,668		2,177,668		9/1/2025
	Safe Securities Inc.		Senior Secured	11.5%		564,210		559,483		559,483		4/1/2026
	Safe Securities Inc. Subtotal					2,773,206		2,737,151		2,737,151
	SF Insuretech, Inc.		Senior Secured	13.5%		874,712		874,712		874,712		11/1/2026
	SF Insuretech, Inc.		Senior Secured	13.5%		816,029		816,029		816,029		9/1/2026
	SF Insuretech, Inc.		Senior Secured	13.5%		1,389,523		1,274,101		1,274,101		5/1/2026
	SF Insuretech, Inc. Subtotal					3,080,264		2,964,842		2,964,842
	Swiftly Systems, Inc.		Senior Secured	11.5%		318,579		316,620		316,620		1/1/2025
	Swiftly Systems, Inc.		Senior Secured	11.5%		161,560		160,117		160,117		10/1/2024
	Swiftly Systems, Inc. Subtotal					480,139		476,737		476,737
	Terragon, Inc. ** ^		Senior Secured	12.0%		74,798		76,108		76,108		*
	Traction Apps, Inc. ** ^		Senior Secured	12.0%		669,230		687,621		420,442		*
	UCM Digital Health, Inc.		Senior Secured	12.5%		1,298,906		1,219,569		1,219,569		10/1/2026
	Vesta Housing, Inc.		Senior Secured	11.8%		861,184		826,607		826,607		6/1/2026
	Vesta Housing, Inc.		Senior Secured	11.8%		861,184		848,881		848,881		6/1/2026
	Vesta Housing, Inc. Subtotal					1,722,368		1,675,488		1,675,488
	WorkRails, Inc.		Senior Secured	12.0%		417,122		288,063		288,063		*
Software Total		23.0%				$	32,599,253	$	31,504,487	$	30,609,330


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Technology Services
	Klar Holdings Limited ** ^		Senior Secured	11.8%		$	1,983,725	$	1,939,018	$	1,939,018	8/1/2025
	Loansnap Holdings Inc. **		Senior Secured	10.3%		3,982,300		3,782,385		2,020,078		*
Technology Services Total		3.0%				$	5,966,025	$	5,721,403	$	3,959,096

Wireless
	Juvo Mobile, Inc. **		Senior Secured	12.0%		$	1,143,492	$	1,108,813	$	1,108,813	7/1/2026
	Juvo Mobile, Inc. **		Senior Secured	15.5%		385,218		379,605		379,605		7/1/2026
	Juvo Mobile, Inc. Subtotal **					1,528,710		1,488,418		1,488,418
Wireless Total		1.1%				$	1,528,710	$	1,488,418	$	1,488,418

	Grand Total	131.5%				$	249,990,887	$	231,635,951	$	174,506,078


	Ticker Symbol	Percent of Net Assets	Cost		Fair Value
Cash Equivalents
First American Government Obligations Fund - Class Z	FGZXX	9.4%	$	12,480,293	$	12,480,293
Total Cash Equivalents		9.4%	$	12,480,293	$	12,480,293


Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	Notional Amount		Fair Value		Upfront payments/receipts		Unrealized appreciation (e)
Derivative Instruments - Interest Rate Collar

Floating interest rate of USD-SOFR with a cap rate of 1.36% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.42% to be paid monthly	Zions Bancorporation, N.A.	6/30/2025	$	50,000,000	$	996,110	$	—	$	996,110
Total Derivative Instruments				$	50,000,000	$	996,110	$	—	$	996,110

*As of September 30, 2024, loans with a cost basis of $100.1 million and a fair value of $44.2 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets.” As of September 30, 2024, 14.6% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an “eligible portfolio company,” as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the fair value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(a) The percentage of net assets that each industry group represents is shown with the industry totals (the sum of the percentages does not equal 100% because the percentages are based on net assets as opposed to total loans).

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

(c) The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are generally the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

(d) There is no readily available market price or secondary market for the Fund’s loan investments, hence the Manager determines fair value of all loan investments presented in the Condensed Schedule of Investments based on a most advantageous market and the estimates may include the use of significant unobservable inputs.

(e) The unrealized appreciation was valued using prices or valuation based on observable inputs other than quoted price in active markets for identical assets and liabilities. See “Note 3. Fair Value Disclosures” for more information.

As of September 30, 2024, all loans were made to non-affiliates.

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF DECEMBER 31, 2023


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Biotechnology
	Calysta, Inc.		Senior Secured	11.8%		$	4,034,272	$	3,915,776	$	3,915,776	6/1/2025
	Genomic Prediction, Inc.		Senior Secured	11.0%		462,427		450,632		450,632		1/1/2025
	GLO Pharma, Inc.		Senior Secured	10.5%		855,052		842,954		842,954		12/1/2024
	GLO Pharma, Inc.		Senior Secured	10.5%		1,281,930		1,270,942		1,270,942		12/1/2024
	GLO Pharma, Inc. Subtotal					2,136,982		2,113,896		2,113,896
	Ukko Inc.		Senior Secured	11.5%		3,398,473		3,253,318		3,253,318		5/1/2026
Biotechnology Total		5.2%				$	10,032,154	$	9,733,622	$	9,733,622

Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.0%		$	225,469	$	224,872	$	224,872	3/1/2024
	Canary Connect, Inc.		Senior Secured	12.0%		901,528		896,305		896,305		3/1/2024
	Canary Connect, Inc.		Senior Secured	11.8%		13,521,618		13,193,287		13,193,287		3/1/2026
	Canary Connect, Inc. Subtotal					14,648,615		14,314,464		14,314,464
	Proto, Inc.		Senior Secured	12.5%		1,049,740		1,001,515		1,001,515		10/1/2025
	Proto, Inc.		Senior Secured	12.8%		1,050,540		1,050,539		1,050,539		10/1/2025
	Proto, Inc. Subtotal					2,100,280		2,052,054		2,052,054
Computers & Storage Total		8.7%				$	16,748,895	$	16,366,518	$	16,366,518

Enterprise Networking
	Diamanti, Inc.		Senior Secured	11.0%		$	5,404,212	$	3,687,334	$	3,687,334	*
Enterprise Networking Total		2.0%				$	5,404,212	$	3,687,334	$	3,687,334

Internet
	10club Pte Ltd. ** ^		Senior Secured	12.0%		$	5,264,876	$	4,762,966	$	2,801,583	11/1/2025
	Ainsly, Inc. ** ^		Senior Secured	12.5%		133,826		133,821		133,821		7/1/2025
	Ainsly, Inc. ** ^		Senior Secured	12.5%		200,739		153,231		153,231		7/1/2025
	Ainsly, Inc. Subtotal ** ^					334,565		287,052		287,052
	D2C Store, Inc.		Senior Secured	10.0%		1,905,572		1,572,688		1,572,688		*
	Good Counsel, LLC		Senior Secured	12.3%		2,707,456		2,431,880		2,431,880		4/1/2026
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		3,001,339		2,997,442		2,790,190		*
	Kings Mountain I LLC		Senior Secured	11.5%		94,770		76,620		71,768		*
	Miami Labs, Inc.		Senior Secured	13.3%		7,500,000		7,162,069		7,162,069		5/1/2026
	OneLocal, Inc. ** ^		Senior Secured	12.0%		1,245,475		1,201,210		1,201,210		1/1/2025
	Osix Corporation		Senior Secured	12.3%		3,679,812		3,369,724		3,369,724		*
	Pixalate, Inc.		Senior Secured	12.5%		3,389,495		3,271,244		3,271,244		4/1/2025
	Quantcast Corp.		Senior Secured	12.0%		12,500,000		11,779,146		11,779,146		7/1/2026
	RenoFi, Inc.		Senior Secured	11.5%		988,490		929,802		929,802		7/1/2025
	RenoFi, Inc.		Senior Secured	11.5%		1,082,499		1,070,622		1,070,622		9/1/2025
	RenoFi, Inc. Subtotal					2,070,989		2,000,424		2,000,424
	Residently USA, LLC ** ^		Senior Secured	12.0%		422,364		389,326		389,326		4/1/2026
	RetailerX, Inc.		Senior Secured	11.3%		5,769,455		5,446,191		5,446,191		7/1/2026
	Serface Care, Inc.		Senior Secured	12.3%		597,411		344,785		—		*
	Stay Alfred, Inc.		Senior Secured	18.0%		4,921,822		3,408,326		—		*
	Usual Beverage Co.		Senior Secured	12.0%		1,699,532		1,629,519		284,813		*
	Verishop, Inc.		Senior Secured	12.6%		1,145,286		1,139,192		1,139,192		12/1/2024
	Vinvesto, Inc.		Senior Secured	15.0%		243,054		243,054		243,054		5/1/2026
	Vinvesto, Inc.		Senior Secured	14.8%		243,033		223,116		223,116		5/1/2026
	Vinvesto, Inc. Subtotal					486,087		466,170		466,170
Internet Total		24.6%				$	58,736,306	$	53,735,974	$	46,464,670


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Medical Devices
	Anutra Medical, Inc.		Senior Secured	18.0%		$	398,742	$	346,750	$	—	*
	CytoVale, Inc.		Senior Secured	12.0%		1,217,661		1,205,201		1,205,201		1/1/2025
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,932,603		—		*
	Norbert Health, Inc.		Senior Secured	12.3%		222,648		217,849		217,849		6/1/2024
	Siren Care, Inc.		Senior Secured	13.5%		606,861		604,374		604,374		1/1/2025
Medical Devices Total		1.1%				$	12,445,912	$	11,306,777	$	2,027,424

Other Healthcare
	Elysium Health, Inc.		Senior Secured	12.0%		$	3,204,172	$	3,083,630	$	3,083,630	2/1/2025
	GoForward, Inc.		Senior Secured	11.5%		690,974		688,087		688,087		6/1/2024
	Grayce, Inc.		Senior Secured	11.8%		215,439		213,798		213,798		12/1/2024
	Grayce, Inc.		Senior Secured	14.0%		664,671		631,909		631,909		2/1/2026
	Grayce, Inc.		Senior Secured	11.8%		327,838		322,236		322,236		9/1/2024
	Grayce, Inc. Subtotal					1,207,948		1,167,943		1,167,943
	Hello Heart Inc.		Senior Secured	11.0%		440,421		434,449		434,449		6/1/2024
	Hello Heart Inc.		Senior Secured	11.0%		1,250,622		1,242,667		1,242,667		6/1/2025
	Hello Heart Inc. Subtotal					1,691,043		1,677,116		1,677,116
	Honeybee Health, Inc.		Senior Secured	11.0%		1,503,502		1,438,883		1,438,883		9/1/2025
	Julie Products Inc.		Senior Secured	15.3%		375,000		366,817		366,817		4/1/2026
	Julie Products Inc.		Senior Secured	15.8%		375,000		366,153		366,153		6/1/2026
	Julie Products Inc.		Senior Secured	13.0%		802,628		764,447		764,447		9/1/2025
	Julie Products Inc. Subtotal					1,552,628		1,497,417		1,497,417
	KBS, Inc.		Senior Secured	14.0%		250,000		229,967		229,967		6/1/2026
	Minded, Inc.		Senior Secured	11.2%		2,224,305		2,008,841		—		*
	Open Inc.		Senior Secured	14.8%		457,878		451,414		451,414		3/1/2026
	Open Inc.		Senior Secured	13.5%		457,247		436,107		436,107		3/1/2026
	Open Inc. Subtotal					915,125		887,521		887,521
	Oula Health, Inc.		Senior Secured	12.0%		56,647		56,322		56,322		2/1/2024
	Oula Health, Inc.		Senior Secured	12.0%		90,275		89,868		89,868		7/1/2024
	Oula Health, Inc. Subtotal					146,922		146,190		146,190
	PrecisionOS Technology Inc. ** ^		Senior Secured	12.0%		667,730		643,612		643,612		7/1/2025
	Therapydia, Inc.		Senior Secured	12.0%		1,777,402		1,753,942		1,753,942		2/1/2027
	Tia, Inc.		Senior Secured	11.8%		371,042		364,011		364,011		5/1/2024
	Tia, Inc.		Senior Secured	11.8%		818,984		815,087		815,087		9/1/2024
	Tia, Inc. Subtotal					1,190,026		1,179,098		1,179,098
	Vessel Health, Inc.		Senior Secured	12.0%		711,734		588,211		553,968		1/1/2026
	Yes Health, Inc.		Senior Secured	12.0%		1,773,262		1,705,392		—		*
	Yuva Biosciences, Inc.		Senior Secured	13.3%		242,902		220,407		220,407		5/1/2026
Other Healthcare Total		8.0%				$	19,749,675	$	18,916,257	$	15,167,781

Other Technology
	8i Corporation		Senior Secured	12.0%		$	390,777	$	386,909	$	243,768	10/1/2025
	Aclima, Inc.		Senior Secured	12.0%		321,219		298,126		298,126		*
	Airspeed, Inc.		Senior Secured	11.0%		532,573		505,660		505,660		1/1/2026
	Airspeed, Inc.		Senior Secured	11.0%		625,000		625,000		625,000		7/1/2026
	Airspeed, Inc. Subtotal					1,157,573		1,130,660		1,130,660
	Azumo, Inc.		Senior Secured	12.8%		1,282,604		1,203,696		1,203,696		1/1/2026
	Bankroll Club, LLC		Senior Secured	12.9%		4,262,576		3,955,801		970,983		*
	Beautiful Beanfields, Inc.		Senior Secured	6.0%		275,000		255,324		127,662		*
	BloomTech Inc.		Senior Secured	11.3%		267,698		267,698		267,698		5/1/2026
	Brave Care Technologies, Inc.		Senior Secured	12.0%		738,617		724,173		649,416		9/1/2024
	Bryte, Inc.		Senior Secured	10.0%		1,680,936		1,640,717		1,640,717		9/1/2025
	Candy Club Holdings, Inc.		Senior Secured	12.0%		6,166,737		5,802,074		1,550,346		*
	Ceres Imaging, Inc.		Senior Secured	12.0%		1,127,835		1,088,832		1,088,832		4/1/2025


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Ceres Imaging, Inc.		Senior Secured	12.0%		1,630,476	1,602,801	1,602,801	4/1/2026
	Ceres Imaging, Inc. Subtotal					2,758,311	2,691,633	2,691,633
	Content Adjacent, Inc.		Senior Secured	12.0%		1,370,177	1,246,061	1,246,061	10/1/2027
	Copia Global Inc. ** ^		Senior Secured	12.0%		7,699,044	7,542,825	7,542,825	1/1/2027
	CornerUp, Inc.		Senior Secured	15.0%		229,002	196,822	196,822	3/1/2026
	CornerUp, Inc.		Senior Secured	15.0%		236,122	232,070	232,070	4/1/2026
	CornerUp, Inc. Subtotal					465,124	428,892	428,892
	Creoate Limited ** ^		Senior Secured	11.8%		617,298	592,002	592,002	12/1/2025
	Creoate Limited ** ^		Senior Secured	15.5%		500,000	488,425	488,425	2/1/2027
	Creoate Limited ** ^		Senior Secured	14.0%		228,750	225,211	225,211	3/1/2026
	Creoate Limited Subtotal ** ^					1,346,048	1,305,638	1,305,638
	Daybase, Inc.		Senior Secured	11.0%		2,018,671	1,798,943	—	*
	EasyKnock, Inc.		Senior Secured	11.5%		1,902,781	1,763,129	1,763,129	10/1/2025
	EasyKnock, Inc.		Senior Secured	11.5%		2,056,477	2,016,015	2,016,015	12/1/2025
	EasyKnock, Inc.		Senior Secured	11.5%		2,427,481	2,369,344	2,369,344	5/1/2026
	EasyKnock, Inc. Subtotal					6,386,739	6,148,488	6,148,488
	Eguana Technologies, Inc. ** ^		Senior Secured	12.0%		1,410,524	1,339,264	1,339,264	4/1/2025
	Eguana Technologies, Inc. ** ^		Senior Secured	12.0%		1,729,692	1,696,603	1,696,603	8/1/2025
	Eguana Technologies, Inc. Subtotal ** ^					3,140,216	3,035,867	3,035,867
	Fanimal, Inc.		Senior Secured	11.8%		189,126	169,116	169,116	2/1/2026
	Fanimal, Inc.		Senior Secured	11.8%		250,000	244,279	244,279	3/1/2027
	Fanimal, Inc.		Senior Secured	11.8%		330,628	324,581	324,581	7/1/2026
	Fanimal, Inc.		Senior Secured	11.8%		375,000	364,987	364,987	7/1/2027
	Fanimal, Inc. Subtotal					1,144,754	1,102,963	1,102,963
	Hadrian Automation, Inc.		Senior Secured	11.5%		1,366,697	1,342,175	1,342,175	2/1/2025
	Heading Health Inc.		Senior Secured	13.2%		1,065,032	981,214	793,209	*
	Higher Ground Education, Inc.		Senior Secured	12.5%		2,143,133	2,109,187	2,109,187	2/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		3,780,792	3,708,955	3,708,955	6/1/2025
	Higher Ground Education, Inc. Subtotal					5,923,925	5,818,142	5,818,142
	Hint, Inc.		Senior Secured	12.0%		4,898,181	4,458,792	4,458,792	5/1/2025
	Holo, Inc.		Senior Secured	13.5%		826,350	769,711	769,711	12/1/2025
	Holo, Inc.		Senior Secured	15.5%		486,194	472,810	472,810	5/1/2026
	Holo, Inc. Subtotal					1,312,544	1,242,521	1,242,521
	Hyphen Technologies, Inc.		Senior Secured	11.5%		2,737,343	2,644,141	2,644,141	3/1/2026
	Hyphen Technologies, Inc.		Senior Secured	12.0%		644,888	635,125	635,125	7/1/2024
	Hyphen Technologies, Inc. Subtotal					3,382,231	3,279,266	3,279,266
	Intuition Robotics, Inc. ** ^		Senior Secured	12.0%		1,982,991	1,927,316	1,927,316	11/1/2025
	Invert Robotics Group, Ltd. ** ^		Senior Secured	13.0%		935,240	900,588	900,588	1/1/2025
	Joy Memories, Inc		Senior Secured	12.0%		1,235,303	1,158,922	1,158,922	12/1/2025
	Kibeam Learning, Inc.		Senior Secured	11.5%		656,577	633,002	633,002	6/1/2025
	Lacuna Technologies, Inc.		Senior Secured	12.0%		3,432,568	3,240,601	—	*
	LendTable Inc.		Senior Secured	13.5%		1,828,989	1,751,544	1,751,544	3/1/2026
	LendTable Inc.		Senior Secured	14.8%		1,500,000	1,469,096	1,469,096	9/1/2026
	LendTable Inc. Subtotal					3,328,989	3,220,640	3,220,640
	Literati, Inc.		Senior Secured	11.3%		6,548,474	6,397,107	6,397,107	3/1/2026
	Logistech Solutions Pte. Ltd. ** ^		Senior Secured	12.8%		1,000,000	981,817	981,817	10/1/2026


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Logistech Solutions Pte. Ltd. ** ^		Senior Secured	11.5%		411,295	357,702	357,702	12/1/2025
	Logistech Solutions Pte. Ltd. Subtotal ** ^					1,411,295	1,339,519	1,339,519
	Mavenform, Inc.		Senior Secured	11.0%		375,896	372,103	372,103	10/1/2025
	Mavenform, Inc.		Senior Secured	11.5%		221,127	218,898	218,898	6/1/2024
	Mavenform, Inc.		Senior Secured	11.5%		313,405	310,943	310,943	6/1/2025
	Mavenform, Inc.		Senior Secured	11.0%		986,918	966,038	966,038	7/1/2025
	Mavenform, Inc. Subtotal					1,897,346	1,867,982	1,867,982
	Merlin Labs, Inc.		Senior Secured	11.0%		1,606,760	1,570,011	1,570,011	6/1/2025
	MinoMonsters, Inc. ** ^		Senior Secured	11.5%		904,417	894,738	894,738	10/1/2024
	Momentus Space LLC **		Senior Secured	12.0%		2,292,963	2,285,030	2,285,030	2/1/2024
	Natomas Labs, Inc.		Senior Secured	13.3%		4,407,183	4,167,612	4,167,612	9/1/2025
	Noteleaf, Inc.		Senior Secured	18.0%		2,277,124	1,836,011	—	*
	Ocho Holdings Co.		Senior Secured	11.3%		482,259	499,616	499,616	12/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		151,028	150,032	150,032	2/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		151,109	150,780	150,780	2/1/2024
	OnePointOne, Inc. Subtotal					302,137	300,812	300,812
	Phase Four, Inc.		Senior Secured	11.5%		645,144	631,219	631,219	12/1/2024
	Phase Four, Inc.		Senior Secured	11.5%		690,634	682,050	682,050	8/1/2025
	Phase Four, Inc. Subtotal					1,335,778	1,313,269	1,313,269
	Plant Prefab, Inc.		Senior Secured	11.0%		789,927	784,016	784,016	11/1/2024
	Plant Prefab, Inc.		Senior Secured	12.4%		1,236,363	1,174,111	1,174,111	12/1/2025
	Plant Prefab, Inc.		Senior Secured	11.0%		873,346	858,280	858,280	8/1/2024
	Plant Prefab, Inc. Subtotal					2,899,636	2,816,407	2,816,407
	PlantBaby, Inc.		Senior Secured	13.8%		107,087	96,231	96,231	1/1/2026
	PlantBaby, Inc.		Senior Secured	12.0%		95,285	93,485	93,485	10/1/2025
	PlantBaby, Inc.		Senior Secured	12.0%		150,836	143,047	143,047	5/1/2025
	PlantBaby, Inc.		Senior Secured	14.3%		121,495	117,614	117,614	5/1/2026
	PlantBaby, Inc.		Senior Secured	12.0%		83,466	82,084	82,084	7/1/2025
	PlantBaby, Inc. Subtotal					558,169	532,461	532,461
	Platform Science, Inc.		Senior Secured	12.5%		4,421,154	4,179,690	4,179,690	2/1/2026
	Platform Science, Inc.		Senior Secured	12.5%		4,567,377	4,506,939	4,506,939	3/1/2026
	Platform Science, Inc. Subtotal					8,988,531	8,686,629	8,686,629
	Privoro Holdings, Inc.		Senior Secured	12.0%		275,766	273,403	273,403	4/1/2024
	Reali Inc.		Senior Secured	12.5%		11,275,525	8,533,922	23,751	*
	Rise Gardens, Inc.		Senior Secured	11.8%		500,000	491,113	343,184	10/1/2026
	Rise Gardens, Inc.		Senior Secured	11.8%		792,662	769,831	537,948	11/1/2025
	Rise Gardens, Inc. Subtotal					1,292,662	1,260,944	881,132
	Romaine Empire, Inc.		Senior Secured	13.5%		8,887,530	8,586,100	8,586,100	12/1/2027
	Setex Technologies, Inc.		Senior Secured	12.3%		367,247	356,513	356,513	8/1/2024
	SISU Aesthetics Clinic, Inc. ** ^		Senior Secured	13.5%		943,438	912,621	912,621	4/1/2026
	SISU Aesthetics Clinic, Inc. ** ^		Senior Secured	14.0%		728,903	723,510	723,510	5/1/2026
	SISU Aesthetics Clinic, Inc. Subtotal ** ^					1,672,341	1,636,131	1,636,131
	SMS OPCO LLC		Senior Secured	8.0%		29,942	11,192	—	*
	Supplant, Inc. ** ^		Senior Secured	16.0%		500,000	489,453	489,453	12/1/2026
	Supplant, Inc. ** ^		Senior Secured	13.0%		2,000,000	1,917,423	1,917,423	7/1/2026
	Supplant, Inc. Subtotal ** ^					2,500,000	2,406,876	2,406,876
	Sustainable Living Partners, LLC		Senior Secured	12.5%		13,689,730	12,816,811	12,816,811	*
	The Farm Project, PBC.		Senior Secured	12.0%		2,617,147	2,575,221	2,575,221	1/1/2025
	The Safe and Fair Food Company LLC		Senior Secured	12.3%		758,271	731,681	731,681	9/1/2024
	TheSquareFoot, Inc.		Senior Secured	18.0%		628,478	325,058	—	*


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Titan Health & Security Technologies, Inc.		Senior Secured	12.0%		1,048,969		1,018,428		1,018,428		8/1/2025
	TLNT Inc.		Senior Secured	15.8%		312,500		304,453		190,530		2/1/2027
	TLNT Inc.		Senior Secured	14.3%		353,987		325,391		203,633		4/1/2026
	TLNT Inc.		Senior Secured	15.3%		312,500		305,936		191,458		8/1/2026
	TLNT Inc.		Senior Secured	14.8%		118,039		115,912		72,539		4/1/2026
	TLNT Inc. Subtotal					1,097,026		1,051,692		658,160
	Umbra Lab, Inc.		Senior Secured	13.5%		4,717,188		4,583,466		4,583,466		4/1/2026
	Umbra Lab, Inc.		Senior Secured	12.0%		1,110,816		1,101,946		1,101,946		6/1/2024
	Umbra Lab, Inc.		Senior Secured	12.0%		1,110,412		1,102,605		1,102,605		6/1/2024
	Umbra Lab, Inc. Subtotal					6,938,416		6,788,017		6,788,017
	Velo Holdings Limited		Senior Secured	12.0%		2,471,720		1,362,429		1,362,429		*
	Virtuix Holdings, Inc.		Senior Secured	12.3%		365,971		358,553		358,553		9/1/2025
	Wellth, Inc.		Senior Secured	12.0%		705,341		676,303		676,303		4/1/2025
	Wellth, Inc.		Senior Secured	12.0%		423,265		416,804		416,804		4/1/2025
	Wellth, Inc. Subtotal					1,128,606		1,093,107		1,093,107
	Wheels Labs, Inc. **		Senior Secured	12.0%		700,000		700,000		498,994		*
	World Wrapps II, Inc.		Senior Secured	12.0%		111,028		105,072		105,072		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		111,036		111,036		111,036		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		111,166		111,166		111,166		6/1/2024
	World Wrapps II, Inc. Subtotal					333,230		327,274		327,274
	Zeno Technologies, Inc.		Senior Secured	10.0%		165,526		165,525		165,525		7/1/2025
	Zeno Technologies, Inc.		Senior Secured	10.0%		165,526		155,757		155,757		7/1/2025
	Zeno Technologies, Inc. Subtotal					331,052		321,282		321,282
	Zimeno Inc.		Senior Secured	11.5%		5,331,391		5,114,486		5,114,486		1/1/2026
	Zimeno Inc.		Senior Secured	11.5%		6,250,000		6,136,157		6,136,157		10/1/2026
	Zimeno Inc. Subtotal					11,581,391		11,250,643		11,250,643
Other Technology Total		75.8%				$	178,296,191	$	167,462,148	$	142,995,711

Security
	Axiado Corporation		Senior Secured	10.5%		$	1,849,112	$	1,762,565	$	1,762,565	10/1/2025
	Axiado Corporation		Senior Secured	10.5%		1,849,112		1,849,098		1,849,098		10/1/2025
	Axiado Corporation Subtotal					3,698,224		3,611,663		3,611,663
	Lassen Peak, Inc.		Senior Secured	11.0%		109,199		107,258		107,258		8/1/2024
	Popily, Inc.		Senior Secured	12.5%		1,998,517		1,559,440		50,722		*
Security Total		2.0%				$	5,805,940	$	5,278,361	$	3,769,643

Software
	Abacum Inc. ** ^		Senior Secured	13.5%		$	1,500,000	$	1,404,738	$	1,404,738	10/1/2026
	Afero, Inc.		Senior Secured	12.3%		95,118		94,408		94,408		1/1/2024
	BackboneAI Inc.		Senior Secured	12.3%		134,312		133,684		130,791		8/1/2024
	Bizly, Inc.		Senior Secured	12.5%		1,636,661		1,600,527		1,600,527		12/1/2025
	BlueCart, Inc.		Senior Secured	14.8%		221,804		216,774		216,774		2/1/2026
	BlueCart, Inc.		Senior Secured	12.5%		1,326,346		1,263,830		1,263,830		2/1/2026
	BlueCart, Inc. Subtotal					1,548,150		1,480,604		1,480,604
	Canopy Technology Corp.		Senior Secured	13.5%		1,194,573		1,139,432		1,139,432		11/1/2025
	Canopy Technology Corp.		Senior Secured	15.0%		916,006		899,683		899,683		3/1/2026
	Canopy Technology Corp. Subtotal					2,110,579		2,039,115		2,039,115
	Chowbus, Inc.		Senior Secured	12.0%		2,625,783		2,449,576		2,449,576		3/1/2025
	Common Sun, Inc		Senior Secured	11.0%		500,000		499,995		499,995		1/1/2027
	Common Sun, Inc		Senior Secured	11.0%		1,320,637		1,262,731		1,262,731		7/1/2026
	Common Sun, Inc Subtotal					1,820,637		1,762,726		1,762,726
	Eskalera, Inc.		Senior Secured	12.0%		1,481,557		1,428,773		1,428,773		10/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		410,822		383,743		383,743		12/1/2025
	Form Remodel, Inc.		Senior Secured	11.0%		441,105		436,137		436,137		2/1/2026


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Form Remodel, Inc.		Senior Secured	11.0%		500,000		493,526		493,526		6/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		500,000		492,701		492,701		8/1/2026
	Form Remodel, Inc. Subtotal					1,851,927		1,806,107		1,806,107
	FutureProof Technologies, Inc.		Senior Secured	13.5%		1,000,000		943,769		943,769		6/1/2026
	Grokker, Inc.		Senior Secured	11.5%		453,850		445,992		445,992		3/1/2025
	Grokker, Inc.		Senior Secured	11.5%		403,473		393,586		393,586		4/1/2026
	Grokker, Inc. Subtotal					857,323		839,578		839,578
	HaystacksAI, Inc.		Senior Secured	11.0%		426,099		426,099		426,099		1/1/2026
	HaystacksAI, Inc.		Senior Secured	11.0%		426,099		404,188		404,188		1/1/2026
	HaystacksAI, Inc. Subtotal					852,198		830,287		830,287
	Hoken Holdings Inc.		Senior Secured	13.0%		607,201		556,766		556,766		5/1/2026
	Journey Builders, Inc.		Senior Secured	12.5%		942,299		901,246		901,246		8/1/2026
	Ketch Kloud, Inc.		Senior Secured	13.0%		7,000,000		6,739,524		6,739,524		10/1/2026
	Ocurate, Inc.		Senior Secured	11.5%		380,556		367,489		367,489		10/1/2025
	Ocurate, Inc.		Senior Secured	11.5%		380,556		376,162		376,162		10/1/2025
	Ocurate, Inc. Subtotal					761,112		743,651		743,651
	Overalls, Inc.		Senior Secured	13.5%		471,719		442,548		442,548		4/1/2026
	Overalls, Inc.		Senior Secured	15.5%		236,209		236,209		236,209		4/1/2026
	Overalls, Inc. Subtotal					707,928		678,757		678,757
	Parkoursc, Inc.		Senior Secured	12.0%		226,953		226,084		226,084		9/1/2024
	Ratio Technologies, Inc.		Senior Secured	11.0%		430,449		424,310		424,310		1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		180,104		149,795		149,795		1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		1,190,488		1,173,736		1,173,736		1/1/2027
	Ratio Technologies, Inc. Subtotal					1,801,041		1,747,841		1,747,841
	Safe Securities Inc.		Senior Secured	11.5%		797,813		788,287		788,287		4/1/2026
	Safe Securities Inc.		Senior Secured	11.5%		3,707,507		3,620,387		3,620,387		9/1/2025
	Safe Securities Inc. Subtotal					4,505,320		4,408,674		4,408,674
	SF Insuretech, Inc.		Senior Secured	13.5%		988,750		988,750		988,750		11/1/2026
	SF Insuretech, Inc.		Senior Secured	13.5%		1,920,296		1,701,661		1,701,661		5/1/2026
	SF Insuretech, Inc.		Senior Secured	11.8%		878,326		866,253		866,253		8/1/2024
	SF Insuretech, Inc.		Senior Secured	13.5%		988,431		988,431		988,431		9/1/2026
	SF Insuretech, Inc. Subtotal					4,775,803		4,545,095		4,545,095
	Swiftly Systems, Inc.		Senior Secured	11.5%		992,459		975,741		975,741		1/1/2025
	Swiftly Systems, Inc.		Senior Secured	11.5%		1,548,309		1,475,261		1,475,261		10/1/2024
	Swiftly Systems, Inc. Subtotal					2,540,768		2,451,002		2,451,002
	Terragon, Inc. ** ^		Senior Secured	12.0%		93,038		87,637		87,637		5/1/2024
	Traction Apps, Inc. ** ^		Senior Secured	12.0%		676,801		650,923		650,923		6/1/2026
	Truthset, Inc.		Senior Secured	12.5%		316,907		291,452		291,452		9/1/2024
	UCM Digital Health, Inc.		Senior Secured	12.5%		1,482,990		1,399,404		1,399,404		4/1/2026
	Vesta Housing, Inc.		Senior Secured	11.8%		1,178,533		1,155,197		1,155,197		6/1/2026
	Vesta Housing, Inc.		Senior Secured	11.8%		1,178,533		1,113,411		1,113,411		6/1/2026
	Vesta Housing, Inc. Subtotal					2,357,066		2,268,608		2,268,608
	WorkRails, Inc.		Senior Secured	12.0%		455,117		369,727		68,278		*
	Workspot, Inc.		Senior Secured	12.0%		112,755		112,008		112,008		3/1/2024
Software Total		23.7%				$	46,877,344	$	44,992,291	$	44,687,949

Technology Services
	iLearningEngines Inc.		Senior Secured	11.5%		$	927,277	$	910,395	$	910,395	1/1/2025
	iLearningEngines Inc.		Senior Secured	11.5%		2,109,706		2,063,191		2,063,191		1/1/2026
	iLearningEngines Inc.		Senior Secured	11.5%		904,731		600,569		600,569		10/1/2024
	iLearningEngines Inc.		Senior Secured	11.5%		1,407,609		1,360,828		1,360,828		4/1/2025
	iLearningEngines Inc.		Senior Secured	11.5%		1,770,172		1,733,026		1,733,026		6/1/2024
	iLearningEngines Inc.		Senior Secured	11.5%		1,727,221		1,695,265		1,695,265		8/1/2025
	iLearningEngines Inc. Subtotal					8,846,716		8,363,274		8,363,274


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Klar Holdings Limited ** ^		Senior Secured	12.0%		555,388		547,459		547,459		6/1/2024
	Klar Holdings Limited ** ^		Senior Secured	12.0%	3.0%	798,776		794,348		794,348		8/1/2024
	Klar Holdings Limited ** ^		Senior Secured	11.8%		3,455,849		3,323,072		3,323,072		8/1/2025
	Klar Holdings Limited Subtotal ** ^					4,810,013		4,664,879		4,664,879
	Loansnap Holdings Inc. **		Senior Secured	10.3%		3,982,300		3,782,386		2,537,800		*
Technology Services Total		8.2%				$	17,639,029	$	16,810,539	$	15,565,953

Wireless
	AirVine Scientific, Inc.		Senior Secured	10.8%		$	137,457	$	136,703	$	136,703	6/1/2024
	AirVine Scientific, Inc.		Senior Secured	10.8%		137,388		135,628		135,628		6/1/2024
	AirVine Scientific, Inc. Subtotal					274,845		272,331		272,331
	Juvo Mobile, Inc. **		Senior Secured	15.5%		500,000		489,833		489,833		7/1/2026
	Juvo Mobile, Inc. **		Senior Secured	12.0%		1,500,000		1,436,390		1,436,390		7/1/2026
	Juvo Mobile, Inc. Subtotal **					2,000,000		1,926,223		1,926,223
	MeshPlusPlus, Inc.		Senior Secured	12.5%		84,976		84,148		84,148		3/1/2024
	MeshPlusPlus, Inc.		Senior Secured	12.5%		55,783		55,474		55,474		6/1/2024
	MeshPlusPlus, Inc. Subtotal					140,759		139,622		139,622
Wireless Total		1.2%				$	2,415,604	$	2,338,176	$	2,338,176

	Grand Total	160.5%				$	374,151,262	$	350,627,997	$	302,804,781


	Ticker Symbol	Percent of Net Assets	Cost		Fair Value
Cash Equivalents
First American Government Obligations Fund - Class Z	FGZXX	11.1%	$	21,017,408	$	21,017,408
Total Cash Equivalents		11.1%	$	21,017,408	$	21,017,408


Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	Notional Amount		Fair Value		Upfront payments/receipts		Unrealized appreciation (e)
Derivative Instruments - Interest Rate Collar

Floating interest rate of USD-SOFR with a cap rate of 1.36% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.42% to be paid monthly	Zions Bancorporation, N.A.	6/30/2025	$	50,000,000	$	2,187,231	$	—	$	2,187,231
Floating interest rate of USD-SOFR with a cap rate of 2.11% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.53% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	90,000,000		861,946		—		861,946
Total Derivative Instruments				$	140,000,000	$	3,049,177	$	—	$	3,049,177

* As of December 31, 2023, loans with a cost basis of $77.7 million and a fair value of $32.9 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets.” As of December 31, 2023, 13.3% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an “eligible portfolio company,” as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the fair value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

(c) The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

As of December 31, 2023, all loans were made to non-affiliates.

See notes to condensed financial statements (unaudited).

(Intentionally left blank)

VENTURE LENDING & LEASING IX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

1.ORGANIZATION AND OPERATIONS OF THE FUND

Venture Lending & Leasing IX, Inc. (the “Fund”) was incorporated in Maryland on June 28, 2017 as a non-diversified, closed-end management investment company that elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and is managed by Westech Investment Advisors LLC (the “Manager” or “Management”). All of the issued and outstanding membership interests of the Manager were acquired by P10 Intermediate Holdings LLC, a Delaware limited liability company whose ultimate parent is P10, Inc., a Delaware corporation (together, “P10”) on October 13, 2022 (the “Transaction”). The management of day-to-day operations of the Manager remains substantially unchanged and continues to be directed by the Manager’s personnel following the closing of the Transaction.

The Fund will be dissolved on December 31, 2028 unless the Board of Directors (the “Board”) opts to elect early dissolution. One hundred percent of the stock of the Fund is held by Venture Lending & Leasing IX, LLC (the “Company”). Prior to commencing operations on May 2, 2018, the Fund had no operations other than accruing organizational expenses and the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in June 2017. This issuance of stock was a requirement to apply for a finance lender’s license from the California Commissioner of Corporations, which was obtained on September 22, 2017.

The Fund’s investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies, most of which are private. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt, or soon thereafter. The Fund also has guidelines for the percentages of total assets that are invested in different types of assets. The portfolio investments of the Fund primarily consist of debt financing to early and expansion stage venture capital-backed technology companies.

In the Manager’s opinion, the accompanying condensed interim financial statements (hereafter referred to as “financial statements”) include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of financial position and results of operations for interim periods. Certain information and note disclosures normally included in audited annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been omitted; however, the Fund believes that the disclosures made are adequate to make the information presented not misleading. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of what the results would be for a full year. These financial statements should be read in conjunction with the financial statements and the notes included in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2023.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As an investment company, the Fund follows accounting and reporting guidance as set forth in Topic 946 (“Financial Services - Investment Companies”) of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, as amended (“ASC”).

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of, or the ability to redeem or liquidate holdings, within 90 days or less. Cash and cash equivalents are held in three bank accounts with two financial institutions, Mitsubishi UFJ Financial Group, Inc. ("MUFG Bank") and U.S. Bank National Association ("US Bank"), and as a result are subject to custodial concentration risk for cash and cash equivalents. Any cash held at US Bank in excess of the Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000 is uninsured by the FDIC, while all cash held at MUFG Bank is uninsured by the FDIC. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value. Within cash and cash equivalents, as of September 30, 2024, the Fund held 12,480,293 units in the First American Government Obligations Fund Class Z (Ticker Symbol: FGZXX) valued at $1 per unit at a yield of 4.78% and $500,000 in cash, which together represented 9.78% of the net assets of the Fund. Within cash and cash equivalents, as of December 31, 2023, the Fund held 21,017,408 units in the First American Government Obligations Fund Class Z (Ticker Symbol: FGZXX) valued at $1 per unit at a yield of 5.26%, and $500,000 in cash, which together represented 11.40% of the net assets of the Fund.

Interest on Loans

Interest income on loans is recognized on an accrual basis using the effective interest method including amounts resulting from the accretion of discount on loans included as additional compensation as part of the loan agreements. Additionally, fees received as part of the transaction are added to the loan discount and accreted over the life of the loan.

Realized Gains and Losses from Loans

Realized gains or losses on the sale of loans are computed using the difference between the amortized cost and the sales proceeds. Realized losses on loan write-offs are recognized when management determines that a loan is uncollectible.

Investment Valuation

The Fund accounts for loans for which market quotations are not readily available at fair value as determined in good faith by the Manager, who has been appointed as the Fund's valuation designee, pursuant to Rule 2a-5 under the 1940 Act. Subject to the oversight of the Fund's Board, all valuations are determined under the direction of the Manager, in accordance with the valuation methods described below and Rule 2a-5.

As of September 30, 2024 and December 31, 2023, the financial statements included nonmarketable investments of $174.5 million and $302.8 million, respectively (or 91.0% and 90.8% of total assets, respectively), with the fair values determined by the Manager in the absence of readily determinable market values. Because of the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the fair values that would have been used had a readily available market for the securities existed, and the differences could be material. Below is the information used by the Manager in making these estimates.

Loans

The Fund defines fair value as the price that would be received to sell an asset or paid to lower a liability in an orderly transaction between market participants at the measurement date. Because there is no readily available market price and no secondary market for substantially all of the debt investments made by the Fund in its borrowing portfolio companies, Management determines fair value based on a transaction that would occur in the most advantageous market, and on several factors related to each borrower, including, but not limited to, the borrower’s payment history, available cash and “burn rate,” revenues, net income or loss, the likelihood that the borrower will be able to secure additional financing in the future, and an evaluation of the general interest rate environment. The amount of any valuation adjustment considers the estimated amount and timing of cash payments of principal and interest from the borrower and/or liquidation analysis and is determined based upon a credit analysis of the borrower and an analysis of the expected recovery from the borrower, including consideration of factors such as the nature and quality of the Fund’s security interests in collateral, the estimated fair value of the Fund’s collateral, the size of the loan, and the estimated time that will elapse before the Fund achieves a recovery. Where the risk profile is consistent with the original underwriting, the cost basis of substantially all of the loans approximates fair value. Management has evaluated these factors and has concluded that the effect of deterioration in the quality of the underlying collateral, increase in size of the loan, increase in the estimated time to recovery and increase in the market coupon rate would have the effect of lowering the fair value of the current portfolio of loans.

Non-Accrual Loans

The Fund’s policy is to classify a loan as non-accrual when the portfolio company is delinquent for three consecutive months on its monthly loan payment or for a lesser timeframe, if, in the opinion of Management, the portfolio company either ceases or drastically curtails its operations and Management deems that it is unlikely that the loan will return to performing status. When a loan is placed on non-accrual status and the related interest is determined to not be collectible, all interest previously accrued but not collected is reversed. Any future interest received by the Fund on non-accrual loans will be recognized as interest income if and when the proceeds exceed the book value of the respective loan.

If a borrower of a non-accrual loan resumes making regular payments and Management believes that such borrower has regained the ability to service the loan on a sustainable basis, the loan is reclassified back to accrual or performing status. Interest that would have been accrued during the time a loan was classified as non-accrual will be added back to the remaining payment schedule, causing a change in the effective interest rate.

As of September 30, 2024 and December 31, 2023, loans with a cost basis of $100.1 million and $77.7 million and a fair value of $44.2 million and $32.9 million, respectively, were classified as non-accrual.

Warrants and Equity Securities

Warrants and equity securities received in connection with loan transactions are considered to be free standing contracts that are both legally detachable and separately exercisable from the related loan transactions and are measured at fair value at the time of acquisition. Warrants are valued based on a Black-Scholes option pricing model which considers, among several factors, the underlying stock value, expected term, volatility, and risk-free interest rate. It is anticipated that such securities will be distributed by the Fund to the Company simultaneously with, or shortly following, their acquisition.

The underlying asset value is estimated based on available information.

Volatility, or the amount of uncertainty or risk about the size of the changes in the warrant price, is based on an index of publicly traded companies grouped by industry and which are similar in nature to the underlying portfolio companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the portfolio company’s industry for a period of time approximating the expected life of the warrants. An increase in the volatility of the warrants used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants.

The remaining expected lives of warrants are based on historical experience of the average life of the warrants, as warrants are often exercised in the event of acquisitions, mergers, or initial public offerings and terminated due to events such as bankruptcies, restructuring activities, or additional financings. These events cause the expected term to be less than the remaining contractual term of the warrants. As of September 30, 2024 and December 31, 2023, the Fund assumed the average duration of a warrant is four years. The effect of an increase in the estimated initial term of the warrants used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants. However, the estimated initial term of the warrants is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the results of operations.

The risk-free interest rate is derived from the constant maturity tables issued by the U.S. Treasury Department. The effect of an increase in the estimated risk-free rate used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants.

Other Assets and Liabilities

Other assets include costs incurred in conjunction with borrowings under the Fund’s debt facility. These costs are amortized over the term of the facility using the straight-line basis. The amortization of these costs is recorded as interest expense in the Condensed Statements of Operations.

The fair values of other assets and accrued liabilities are estimated at their carrying values because of the short-term nature of these assets and liabilities.

The carrying value of the borrowings under the debt facility approximates their fair value based on the borrowing rates available to the Fund.

Commitment Fees

Unearned income and commitment fees on loans are recognized using the effective-interest method over the term of the loan. Commitment fees are carried as liabilities when received for commitments upon which no draws have been made. When the first draw is made, the fee is treated as unearned income and is recognized as described above. If a draw is never made, the forfeited commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires.

Derivative Instruments

The Fund uses derivative instruments to manage its exposure to changes in interest rates on expected borrowings under its debt facility, as the Fund originates fixed rate loans (see Note 8).

Derivative instruments are primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality of the interest rate terms. The valuation of the derivative instruments also considers the future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. Valuation pricing models consider inputs such as forward rates, anticipated interest rate volatility relating to the reference rate, as well as time value and other factors underlying derivative instruments.

The Fund is a party to master netting arrangements with Zions Bancorporation, N.A., however, the Fund has elected not to offset assets and liabilities under these arrangements for financial statement presentation purposes. Contracts are recorded at gross fair value in either derivative assets or derivative liability in the Condensed Statements of Assets and Liabilities, depending on whether the fair value of the contract is in favor of the Fund or the counterparty. The changes in fair value are recorded in net change in unrealized gain (loss) from derivative instruments in the Condensed Statements of Operations and the monthly interest received or paid on the contract, if any, is recorded in net realized gain (loss) from derivative instruments in the Condensed Statements of Operations.

The interest rate collar instrument is contractually scheduled to terminate on June 30, 2025.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This change is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures and providing new disclosure requirements for entities with a single reportable segment, among other new disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Fund is currently evaluating the impact of adopting this guidance with respect to the financial statements and disclosures.

3. FAIR VALUE DISCLOSURES

The Fund provides asset-based financing primarily to start-up and emerging growth venture-backed companies pursuant to commitments whereby the Fund agrees to finance assets and provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. Even though these loans are generally secured by the assets of the borrowers, the Fund in most cases is subject to the credit risk of such companies. As of September 30, 2024 and December 31, 2023, the Fund’s investments in loans were primarily to companies based within the United States and were diversified among borrowers in the industry segments shown in the Condensed Schedules of Investments. All loans are senior to unsecured creditors and other secured creditors, unless otherwise indicated in the Condensed Schedules of Investments.

The Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. Because there is no readily available market price and no secondary market for substantially all of the loan investments made by the Fund to borrowing portfolio companies, Management determines fair value (or estimated exit value) based on a transaction that would occur in the most advantageous market, and several factors related to each borrower.

Loan balances in the Condensed Schedules of Investments are listed by borrower. Typically, a borrower’s balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded. Each loan drawn under a commitment has a different maturity date and amount.

The following tables show the weighted-average interest rate of the performing loans and all loans:


	For the Three Months Ended				For the Nine Months Ended
Performing Loans	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Weighted-Average Interest Rate – Cash	13.23	%	14.33	%	14.54	%	14.44	%
Weighted Average Interest Rate – Non-Cash	2.99	%	3.46	%	3.45	%	3.56	%
Weighted-Average Interest Rate	16.22	%	17.79	%	17.99	%	18.00	%


	For the Three Months Ended				For the Nine Months Ended
All Loans	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Weighted-Average Interest Rate – Cash	10.52	%	12.97	%	12.29	%	13.58	%
Weighted Average Interest Rate – Non-Cash	2.36	%	3.11	%	2.90	%	3.34	%
Weighted-Average Interest Rate	12.88	%	16.08	%	15.19	%	16.92	%

Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs, volatility of values ascribed to warrants and new loans funded during the period. Warrants and equity securities received in connection with loan transactions are measured at fair value at the time of acquisition; the non-cash portion of interest income represents the accretion of the discount of these warrants over the life of the loan.

The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and loan as discussed in the Fund’s loan accounting policy. Such changes result in the fair value adjustments made to the individual loans, which in accordance with U.S. GAAP, would be based on the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. Where the risk profile is consistent with the original underwriting, the cost basis of substantially all of the loans approximates fair value.

All loans as of September 30, 2024 and December 31, 2023 were pledged as collateral for the debt facility, and the Fund’s borrowings are generally collateralized by all assets of the Fund.

Valuation Hierarchy

Under the FASB ASC Topic 820 (“Fair Value Measurement”), the Fund categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Fund’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of the fair value hierarchy are defined as follows:


Level 1						Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2						Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3						Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

There were no transfers in or out of Level 1, 2 or 3 during the nine months ended September 30, 2024 and 2023.

The Fund’s cash equivalents were valued at the traded net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Fund’s derivative instruments are based on quotes from the market makers that derive fair values from market data, and therefore, are classified as Level 2. The Fund’s borrowings under the debt facility are also classified as Level 2, because the carrying values of the borrowings are based on rates that are observable at commonly quoted intervals, which are Level 2 inputs, and that approximate fair values. The Fund’s loan investments are individually negotiated and unique, and because there is little to no market in which these assets trade, the unobservable inputs for these assets are valued using estimated exit values. As a result, the Fund's loan investments are classified as Level 3.

(Intentionally left blank)

The following tables provide quantitative information about the Fund’s Level 3 fair value measurements of the Fund’s investments by industry as of September 30, 2024 and December 31, 2023. In addition to the techniques and inputs noted in the tables below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements.

Investment Type - Level 3

Loan Investments

Fair Value at

September 30, 2024

Valuation Techniques / Methodologies

Unobservable Input

Range

Weighted Average (a)

Biotechnology

$5,142,501

Most advantageous market analysis

Most advantageous market coupon rate

13% - 16%

15%

Computers & Storage

11,001,365

Most advantageous market analysis

Most advantageous market coupon rate

14% - 16%

14%

Enterprise Networking

3,404,643

Asset Recovery

Probability weighting of alternative outcomes

10% - 50% *

Internet

30,802,016

Most advantageous market analysis

Most advantageous market coupon rate

14% - 22%

18%

Asset Recovery

Probability weighting of alternative outcomes

5% - 100%^

Medical Devices

388,065

Most advantageous market analysis

Most advantageous market coupon rate

14%*

14%

Asset Recovery

Probability weighting of alternative outcomes

100%^

Other Healthcare

5,863,961

Most advantageous market analysis

Most advantageous market coupon rate

12% - 22%

17%

Asset Recovery

Probability weighting of alternative outcomes

45% - 100%^

Other Technology

79,556,739

Most advantageous market analysis

Most advantageous market coupon rate

11% - 54%

17%

Asset Recovery

Probability weighting of alternative outcomes

5% - 100%^

Security

2,289,944

Most advantageous market analysis

Most advantageous market coupon rate

13%*

13%

Asset Recovery

Probability weighting of alternative outcomes

100%*

Software

30,609,330

Most advantageous market analysis

Most advantageous market coupon rate

13% - 26%

17%

Asset Recovery

Probability weighing of alternative outcomes

5% - 100%^

Technology Services

3,959,096

Most advantageous market analysis

Most advantageous market coupon rate

16%*

16%

Asset Recovery

Probability weighing of alternative outcomes

13% - 50%*

Wireless

1,488,418

Most advantageous market analysis

Most advantageous market coupon rate

16%*

16%

Total Loan Investments

$174,506,078

(a) The weighted-average most advantageous market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within this industry that utilizes this valuation technique.

^ Probability weightings vary among loan investments within each industry based on different potential future outcomes.

Investment Type - Level 3

Loan Investments

Fair Value at December 31, 2023

Valuation Techniques / Methodologies

Unobservable Input

Range

Weighted Average (a)

Biotechnology

$9,733,622

Most advantageous market analysis

Most advantageous market coupon rate

13% - 16%

15%

Computers & Storage

16,366,518

Most advantageous market analysis

Most advantageous market coupon rate

14% - 16%

14%

Enterprise Networking

3,687,334

Asset Recovery

Probability weighting of alternative outcomes

10% - 50% *

Internet

46,464,670

Most advantageous market analysis

Most advantageous market coupon rate

14% - 33%

17%

Asset Recovery

Probability weighting of alternative outcomes

5% - 100%^

Medical Devices

2,027,424

Most advantageous market analysis

Most advantageous market coupon rate

14% - 20%

15%

Asset Recovery

Probability weighting of alternative outcomes

100%^

Other Healthcare

15,167,781

Most advantageous market analysis

Most advantageous market coupon rate

13% - 22%

17%

Asset Recovery

Probability weighting of alternative outcomes

18% - 100%^

Other Technology

142,995,711

Most advantageous market analysis

Most advantageous market coupon rate

11% - 74%

16%

Asset Recovery

Probability weighting of alternative outcomes

5% - 100%^

Security

3,769,643

Most advantageous market analysis

Most advantageous market coupon rate

13% - 16%

14%

Asset Recovery

Probability weighting of alternative outcomes

100%*

Software

44,687,949

Most advantageous market analysis

Most advantageous market coupon rate

13% - 37%

17%

Asset Recovery

Probability weighing of alternative outcomes

20% - 80%^

Technology Services

15,565,953

Most advantageous market analysis

Most advantageous market coupon rate

16% - 22%

20%

Asset Recovery

Probability weighting of alternative outcomes

10% - 60%*

Wireless

2,338,176

Most advantageous market analysis

Most advantageous market coupon rate

14% - 17%

16%

Total Loan Investments

$302,804,781

(a) The weighted-average most advantageous market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within this industry that utilizes this valuation technique.

^ Probability weightings vary among loan investments within each industry based on different potential future outcomes.

The following tables present the balances of assets and liabilities as of September 30, 2024 and December 31, 2023 measured at fair value on a recurring basis:


As of September 30, 2024
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	174,506,078	$	174,506,078
Derivative assets	—		996,110		—		996,110
Cash equivalents	12,480,293		—		—		12,480,293
Total	$	12,480,293	$	996,110	$	174,506,078	$	187,982,481

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	58,000,000	$	—	$	58,000,000

Total	$	—	$	58,000,000	$	—	$	58,000,000


As of December 31, 2023
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	302,804,781	$	302,804,781
Derivative assets	—		3,049,177		—		3,049,177
Cash equivalents	21,017,408		—		—		21,017,408
Total	$	21,017,408	$	3,049,177	$	302,804,781	$	326,871,366

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	142,500,000	$	—	$	142,500,000
Total	$	—	$	142,500,000	$	—	$	142,500,000

† For a detailed listing of borrowers comprising this amount, please refer to the Condensed Schedules of Investments.

The following tables provide a summary of changes in Level 3 assets measured at fair value on a recurring basis:


	For the Three Months Ended September 30, 2024
	Loans		Warrants
Beginning balance	$	203,128,872	$	—
Acquisitions and originations	—		172,925
Principal payments on loans, net of accretion	(26,376,393)		—

Distributions to shareholder	—		(172,925)

Net change in unrealized loss from loans	(2,246,401)		—
Ending balance	$	174,506,078	$	—
Net change in unrealized loss from loans relating to loans still held at September 30, 2024	$	(2,241,856)


	For the Nine Months Ended September 30, 2024
		Loans		Warrants		Stocks		Convertible Notes and Others
Beginning balance		$	302,804,781	$	—	$	—	$	—
Acquisitions and originations		545,652		1,060,639		4,527,204		3,270,574
Principal payments on loans, net of accretion		(115,055,600)		—		—		—

Distributions to shareholder		—		(1,060,639)		(4,527,204)		(3,270,574)
Net realized loss from loans		(4,482,099)		—		—		—
Net change in unrealized loss from loans		(9,306,656)		—		—		—
Ending balance		$	174,506,078	$	—	$	—	$	—
Net change in unrealized loss from loans relating to loans still held at September 30, 2024		$	(11,007,504)


	For the Three Months Ended September 30, 2023				For the Nine Months Ended September 30, 2023
	Loans		Warrants		Loans		Warrants
Beginning balance	$	406,252,272	$	—	$	489,691,665	$	—
Acquisitions and originations	2,250,000		359,476		27,562,500		3,039,384
Principal payments on loans, net of accretion	(48,417,144)		—		(154,962,702)		—
Proceeds from sale of loan	(1,043,138)		—		(1,043,138)		—
Distributions to shareholder	—		(359,476)		—		(3,039,384)
Net realized loss from loans	(438,580)		—		(437,324)		—
Net change in unrealized loss from loans	(12,428,521)		—		(14,636,112)		—
Ending balance	$	346,174,889	$	—	$	346,174,889	$	—
Net change in unrealized loss from loans relating to loans still held at September 30, 2023	$	(12,883,539)			$	(15,248,678)

4. EARNINGS PER SHARE

Basic earnings per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding. Diluted earnings (loss) per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g., stock options). The Fund has no instruments that would be potential common shares; thus, reported basic and diluted earnings (loss) per share are the same.

5. CAPITAL STOCK

As of both September 30, 2024 and December 31, 2023, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding. Total committed capital of the Company, which had been fully called and received as of both September 30, 2024 and December 31, 2023, was $460.0 million, of which $407.1 million was contributed to the Fund.

The chart below shows the distributions of the Fund for the nine months ended September 30, 2024 and 2023.


	For the Nine Months Ended September 30, 2024		For the Nine Months Ended September 30, 2023
Cash distributions	$	51,042,000	$	97,992,000
Distributions of equity securities	8,858,417		3,039,384
Total distributions to shareholder	$	59,900,417	$	101,031,384

Final classification of the distributions as either a return of capital or a distribution of income is an annual determination made at the end of each year dependent upon the Fund’s current year cumulative earnings and profits.

6. DEBT FACILITY

The 1940 Act requires a BDC to meet certain levels of asset coverage with respect to its outstanding “senior securities,” which typically consist of outstanding borrowings under credit facilities and other debt instruments. BDCs are generally required to have an asset coverage of at least 200% but are permitted to increase the amount of indebtedness they may incur by lowering the asset coverage requirement from 200% to 150% if they make certain disclosures and obtain the approval by either (1) a “required majority,” as defined in Section 57(o) of the 1940 Act, of the BDC’s board of directors, including a majority of disinterested directors, with effectiveness one year after the date of such approval or (2) a majority of votes cast at a special or annual meeting of the BDC’s shareholders at which a quorum is present, which is effective the day after such stockholder approval.

On April 24, 2019, the Fund’s sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. As of September 30, 2024 and December 31, 2023, the Fund’s asset coverage for borrowings was 327% and 231%, respectively.

The Fund is a party to a loan and security agreement (as amended and restated from time to time) with MUFG Union Bank Ltd. acting as the administrative agent and other lenders named therein, that established a secured revolving credit facility with a commitment size of $79.5 million as of September 30, 2024.

On October 26, 2023, the Fund entered into a Third Amendment to the Amended and Restated Loan and Security Agreement (the “Third Amendment”) with lenders named therein. The Third Amendment provides for, among other modifications (i) a decrease in the size of the facility to $185.0 million with a scheduled reduction in commitments on a quarterly basis by an amount equal to 10% (subject to adjustment), commencing with the calendar quarter ending December 31, 2023 until the maturity date, (ii) an increase in the margin paid on SOFR Rate Loans (as defined in the Third Amendment) and Reference Rate Loans (as defined in the Third Amendment), and (iii) an extension of the term of the facility to March 31, 2026.

Borrowings of the Fund are collateralized by all of the assets of the Fund. In the event of default, the Manager's right to receive management fees from the Fund is subordinate to the liens of the lenders. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan or a SOFR Rate Loan (calculated at Daily Simple SOFR or another applicable Term SOFR Reference Rate). As of September 30, 2024, the Fund’s outstanding borrowings were entirely based on the Daily Simple SOFR Rate Loan. The facility terminates on March 31, 2026, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments.

The Fund pays interest on its borrowings and a fee on the unused portion of the facility. Interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate equal to either (i) the Reference Rate plus 1.50% and 1.75%, respectively, (ii) for a SOFR Rate Loan with an interest period of one month, SOFR plus 2.60% and 2.85%, respectively or (iii) for a SOFR Rate Loan with an interest period of three months, SOFR plus 2.65% or 2.90%, respectively. When the Fund is using 50.00% or more of the maximum amount available under the Loan Agreement, the applicable commitment fee is 0.25% of the unused portion of the loan facility; otherwise, the applicable commitment fee is 0.50% of the unused portion. The Fund pays the unused credit line fee quarterly. As of September 30, 2024 and December 31, 2023, $58.0 million and $142.5 million, respectively, was outstanding under the facility.

As of September 30, 2024, the SOFR rate was as follows:


Overnight	4.9600	%
Daily Simple SOFR	4.8300	%
30-day Average SOFR	5.1633	%
90-day Average SOFR	5.3094	%

Bank fees and other costs of $5.0 million incurred in connection with the acquisition and amendment of the facility have been capitalized and are amortized to interest expense on a straight-line basis over the expected life of the facility. As of September 30, 2024 and December 31, 2023, the remaining unamortized fees and costs of $0.8 million and $1.3 million, respectively, are being amortized over the expected life of the facility, which is expected to terminate on March 31, 2026.

The facility is revolving and as such does not have a specified repayment schedule, although advances are secured by the assets of the Fund and thus repayments will be required as assets decline. The facility contains various covenants including financial covenants related to: (i) minimum debt service coverage ratio, (ii) interest coverage ratio, (iii) unfunded commitment ratio, (iv) maximum quarterly loan loss reserve ratio, (v) maximum annual loan loss reserve ratio and (vi) maximum loan loss test. There are also various restrictive covenants, including limitations on: (i) the incurrence of liens, (ii) consolidations, mergers and asset sales and (iii) capital expenditures. The Fund is also required to maintain derivative instruments covering a notional principal amount equal at all times to at least 50% of the outstanding borrowings if outstanding principal balance is greater than $40 million (see Note 8). As of September 30, 2024 and December 31, 2023, Management is not aware of instances of non-compliance with financial covenants.

The following is the summary of the outstanding facility draws as of September 30, 2024 and December 31, 2023:

September 30, 2024

December 31, 2023

Maturity Date

All-In Interest Rate(a)

SOFR Rate Loan

$58,000,000

$142,500,000

March 31, 2026

Variable based on Daily Simple SOFR rate

Total Outstanding

$58,000,000

$142,500,000

(a)Inclusive of 2.85% applicable SOFR Rate Loan margin plus Daily Simple SOFR rate.

7. MANAGEMENT FEE AND RELATED PARTIES

Management Fee

On October 13, 2022, in connection with the Transaction, the Fund entered into a new investment management agreement (the “Current Agreement”), by and between the Fund and the Manager, that replaced the previous investment management agreement entered into between the Fund and the Manager (the “Previous Agreement”). The closing of the Transaction constituted a change of control of the Manager which caused the Previous Agreement to terminate. Significant terms of the Current Agreement are the same as those of the Previous Agreement, including the fee rates described below.

As compensation for its services to the Fund, from the date of the first capital call, May 1, 2018, the Manager receives a management fee (“Management Fee”). The aggregate annual amount of Management Fee for each annual period (which is comprised of four whole fiscal quarters and which, in the case of the first year, commenced on the first day of the first fiscal quarter following the first capital contribution) calculated as a percentage of committed capital, is as follows:


						Management Fee
Year 1						1.575%
Year 2						1.600%
Year 3						1.575%
Year 4						1.500%
Year 5						1.250%
Year 6						0.900%
Year 7						0.600%
Year 8						0.350%
Year 9						0.150%

For the period from January 1, 2024 through June 30, 2024, Management Fees were calculated at 0.90% of the Company's committed capital and for the period from July 1, 2024 through September 30, 2024, Management Fees were calculated at 0.60%. For the period from January 1, 2023 through June 30, 2023, Management Fees were calculated at 1.25% of the Company's committed capital and for the period from July 1, 2023 through September 30, 2023, Management Fees were calculated at 0.90%.

Management Fees of $0.7 million and $1.0 million were recognized as expenses for the three months ended September 30, 2024 and 2023, respectively. Management Fees of $2.8 million and $3.9 million were recognized as expenses for the nine months ended September 30, 2024 and 2023, respectively.

Related Parties

Certain officers and directors of the Fund also serve as officers and directors of the Manager. The Amended and Restated Articles of Incorporation of the Fund provide for indemnification of directors, officers, employees and agents (including the Manager) of the Fund to the fullest extent permitted by applicable state law and the 1940 Act, including the advance of expenses and reasonable counsel fees. The Amended and Restated Articles of Incorporation of the Fund also contain a provision eliminating personal liability of a Fund director or officer to the Fund or its shareholder for monetary damages for certain breaches of their duty of care. For this reason, the Fund has acquired a directors and officers insurance policy.

Transactions with Venture Lending & Leasing VIII, Inc. (“Fund VIII”)

The Manager also served as the investment manager for Fund VIII. So long as Fund VIII had capital available to invest in loan transactions with final maturities earlier than December 31, 2025, the Fund was able to invest in each portfolio company in which Fund VIII invested, subject to the approval of the Fund's Board. The Manager’s allocation process was designed to allocate investment opportunities fairly and equitably among the Fund and Fund VIII over time, and subject to board approval, was based on a methodology taking into account investment pace, the remaining commitment periods and other relevant factors. The Fund co-invested with Fund VIII through March 31, 2021, which was the end of Fund VIII's investment period. Fund VIII was deregistered as a BDC with the Securities and Exchange Commission ( “SEC”) on October 12, 2023 and distributed all of its remaining assets to its parent, Venture Lending & Leasing VIII, LLC during the year ended December 31, 2023.

Transactions with WTI Fund X, Inc. ("Fund X")

The Manager also serves as the investment manager for Fund X. So long as Fund X had capital available to invest in loan transactions with final maturities earlier than December 31, 2028 (the date on which the Fund's term of existence automatically expires), the Fund was able to invest in each portfolio company in which Fund X invested, subject to the approval of the Fund's Board. The Manager’s allocation process was designed to allocate investment opportunities fairly and equitably among the Fund and Fund X over time, and subject to board approval, was based on a methodology taking into account investment pace, the remaining commitment periods and other relevant factors. The Fund co-invested with Fund X through December 31, 2023, which was the end of the Fund’s investment period.

The ability of the Fund to co-invest with Fund VIII, Fund X, and other clients advised by the Manager, was subject to the conditions (the “Conditions”) with which the funds were complying while seeking certain exemptive relief from the SEC from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. To the extent that clients, other than Fund VIII and Fund X, advised by the Manager (but in which the Manager had no proprietary interest) invested in opportunities available to the Fund, the Manager allocated such opportunities among the funds and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Intercreditor Agreements

In all transactions in which the Fund and other funds managed by the Manager invest or those in which another lender(s) has either invested or may later invest (or in the event a successor fund is raised, in which the Fund and the successor fund invest), it is expected that the Fund and, other funds managed by the Manager (or the successor fund as the case may be), and/or the other lender(s) will enter into an intercreditor agreement pursuant to which the Fund and, other funds managed by the Manager (or the successor fund), and/or the other lender(s), along with any predecessor funds which still have a balance outstanding, will cooperate in pursuing their remedies following a default by the common borrower. Generally, under such intercreditor agreements, each party would agree that its security interest would be treated in parity with the security interest of the other party, regardless of which security interest would have priority under applicable law. Accordingly, proceeds realized from the sale of any collateral or the exercise of any other creditor’s rights will be allocated between the Fund and, other funds managed by the Manager, and any predecessor funds as described above, pro rata in accordance with the amounts of their respective investments. An exception to the foregoing arrangement would occur in situations where, for example, one of the lenders financed specific items of equipment collateral; in that case, usually the lender who financed the specific assets will have a senior lien on that asset, and the other lenders will have a junior priority lien (even though they may ratably share liens of equal priority on other assets of the common borrower). As a result of such intercreditor agreements, the Fund may have less flexibility in pursuing its remedies following a default than it would have had had there been no intercreditor agreement, and the Fund may therefore realize fewer proceeds. In addition, because the Fund and other funds managed by the Manager (or the successor fund) invest at the same time in the same borrower, such borrower would be required to service two loans rather than one. Any additional administrative costs or burdens resulting therefrom may make the Fund a less attractive lender and may make it more difficult for the Fund to acquire such loans.

8. DERIVATIVE INSTRUMENTS

The Fund uses derivative instruments to manage its exposure to interest rates on expected borrowings under its debt facility (see Note 6), as the Fund originates fixed rate loans.

Interest Rate Collar

The Fund has an interest rate collar derivative contract with Zions Bancorporation, N.A. dba California Bank & Trust with an effective date of May 31, 2022. The aggregate notional principal amount of the interest rate collar is $50.0 million, with a cap of 1.36% and floor of 0.42% on floating rate based upon a 1-Month USD-SOFR rate. The interest rate collar is expected to expire on June 30, 2025.

The interest rate collar mitigates the Fund's exposure to interest rate fluctuations on variable rate index of the debt facility. The collar establishes a range where the Fund pays the counterparty if the SOFR rate falls below the established floor rate, and the counterparty will pay the Fund if the SOFR rate exceeds the established cap rate. The interest rate collar settles monthly.

The following table shows the Fund's derivative instruments at fair value on the Fund's Condensed Statements of Assets and Liabilities as of September 30, 2024 and December 31, 2023.


	Derivative Assets
Derivative Instruments	September 30, 2024		December 31, 2023
Interest rate collar	$	996,110	$	3,049,177

During the nine months ended September 30, 2024, an interest rate collar contract with a notional amount of $90.0 million expired.

The following table shows the effect of the Fund's derivative instruments on the Fund's Condensed Statements of Operations for the three and nine months ended September 30, 2024 and 2023.


		For the Three Months Ended				For the Nine Months Ended
Derivative Instruments	Condensed Statements of Operations Caption	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest rate collar	Net change in unrealized loss from derivative instruments	$	(774,938)	$	(1,066,795)	$	(2,053,067)	$	(5,374,984)
	Net realized gain from derivative instruments	$	516,347	$	1,444,268	$	2,383,856	$	7,135,561

The following table shows the Fund's assets and liabilities related to derivatives by counterparty, net of amounts available for offset under the master netting agreement and net of any collateral received or pledged by the Fund for such assets and liabilities as of September 30, 2024 and December 31, 2023.


	As of September 30, 2024
Counterparties	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
Zions Bancorporation, N.A.	$	996,110	$	—	$	—	$	—	$	996,110
Total	$	996,110	$	—	$	—	$	—	$	996,110

	As of December 31, 2023
Counterparties	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
Zions Bancorporation, N.A.	$	3,049,177	$	—	$	—	$	—	$	3,049,177
Total	$	3,049,177	$	—	$	—	$	—	$	3,049,177
(1) Net amount of derivative assets represents the net amount due from the counterparty to the Fund.

There were no derivative liabilities as of September 30, 2024 and December 31, 2023.

9. TAX STATUS

The Fund has elected to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986 (the "Code") and operates in a manner to qualify for the tax treatment applicable to RICs. Failing to maintain at least 70% of total assets in "qualifying assets" will result in the loss of BDC status, resulting in losing its favorable tax treatment as a RIC. As of September 30, 2024, the Fund has met the BDC and RIC requirements. The Fund elected to be treated for federal income tax purposes as a RIC under the Code with the filing of its federal income tax return for 2019.

In order to qualify for favorable tax treatment as a RIC, the Fund is required to distribute annually to its shareholder at least 90% of its investment company taxable income, as defined by the Code. To avoid federal excise taxes, the Fund must distribute annually at least 98% of its ordinary income and 98.2% of net capital gains from the current year and any undistributed ordinary income and net capital gains from the preceding years. The Fund, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If the Fund chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to its shareholder. The Fund will accrue excise tax on estimated undistributed taxable income as required.

Below are tables summarizing the cost of investments for federal income tax purposes and the appreciation and depreciation of the investments reported on the Condensed Schedules of Investments and Condensed Statements of Assets and Liabilities as of September 30, 2024 and December 31, 2023:


Assets	As of September 30, 2024
Assets	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	231,635,951	$	—	$	(57,129,873)	$	(57,129,873)
Derivative assets	—		996,110		—		996,110
Total	$	231,635,951	$	996,110	$	(57,129,873)	$	(56,133,763)


	As of December 31, 2023
Assets	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	350,627,997	$	—	$	(47,823,216)	$	(47,823,216)
Derivative assets	—		3,049,177		—		3,049,177
Total	$	350,627,997	$	3,049,177	$	(47,823,216)	$	(44,774,039)

There was no unrealized appreciation or depreciation related to liabilities as of September 30, 2024 and December 31, 2023.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income and non-deductible expenses. These differences are generally determined in conjunction with the preparation of the Fund’s annual RIC tax return.

Book and tax basis differences relating to shareholder dividends and distributions and other permanent book and tax differences are reclassified among the Fund’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP. The determination of the tax attributes of the Fund’s distributions is made annually as of the end of the Fund’s taxable year and is generally based upon its taxable income for the full taxable year and distributions paid for the full taxable year. As a result, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Fund’s distributions for a full taxable year. As of September 30, 2024, the Fund had determined the tax attributes of its distributions taxable year-to-date to be from its current and accumulated earnings and profits. There is not yet, however, certainty as to what the actual tax attributes of the Fund’s distributions to the shareholders will be by the year ending December 31, 2024.

The Fund anticipates distributing all distributable earnings by the end of the year. The Fund may pay distributions in excess of its taxable net investment income. This excess would be a tax-free return of capital in the period and reduce the shareholder’s tax basis in its shares.

The Fund’s tax returns remain open for examination by the federal government for a period of three years and California tax authorities for a period of four years from when they are filed. As of September 30, 2024, the Fund had no uncertain tax positions and no capital loss carryforwards.

10. CONTINGENCIES

In the normal course of business, the Manager may enter into certain contracts, on behalf of the Fund, that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made that have not yet occurred. Currently, no such claims exist or are expected to arise and, accordingly, the Fund has not accrued any liability in connection with such indemnifications.

11. FINANCIAL HIGHLIGHTS

U.S. GAAP requires disclosure of financial highlights of the Fund for the three and nine months ended September 30, 2024 and 2023.

The total rate of return is defined as the return based on the change in value during the period of a theoretical investment made at the beginning of the period. The total rate of return assumes a constant rate of return for the Fund during the period reported and weights each cash flow by the amount of time held in the Fund. This required methodology differs from an internal rate of return.

The ratios of expenses and net investment income (loss) to average net assets, calculated below, are computed based upon the aggregate weighted average net assets of the Fund for the periods presented. Net investment income (loss) is inclusive of all investment income, net of expenses and excludes realized or unrealized gains and losses.

Beginning and ending net asset values per share are based on the beginning and ending number of shares outstanding. Other per share information is calculated based upon the aggregate weighted average net assets of the Fund for the periods presented.

The following per share data and ratios have been derived from the information provided in the financial statements:


	For the Three Months Ended September 30, 2024			For the Three Months Ended September 30, 2023			For the Nine Months Ended September 30, 2024			For the Nine Months Ended September 30, 2023

Total return**	0.98		%	(1.04		%)	2.46		%	9.69		%

Per share amounts:
Net asset value, beginning of period	$	1,315.66		$	2,448.76		$	1,886.90		$	2,682.12
Net investment income	37.91			102.06			173.48			383.69
Net realized and change in unrealized loss from loans and derivative instruments	(25.05)			(124.90)			(134.58)			(133.13)
Net increase (decrease) in net assets resulting from operations	12.86			(22.84)			38.90			250.56
Distributions of income to shareholder	(1.73)			(112.12)			(111.16)			(450.67)
Return of capital to shareholder	—			(391.43)			(487.85)			(559.64)

Net asset value, end of period	1,326.79			1,922.37			1,326.79			1,922.37
Net assets, end of period	$	132,679,047		$	192,237,017		$	132,679,047		$	192,237,017

Ratios to average net assets:

Expenses*	7.32		%	9.63		%	8.45		%	9.52		%
Net investment income*	11.52		%	18.52		%	14.74		%	20.61		%
Portfolio turn-over rate	—		%	0.28		%	—		%	0.24		%
Average debt outstanding	$	67,750,000		$	181,250,000		$	95,850,000		$	211,900,000

*Annualized
**Total return amounts presented above are not annualized.

12. SUBSEQUENT EVENTS

Management evaluated subsequent events through the date of this Quarterly Report on Form 10-Q and determined that no subsequent events had occurred that would require accrual or disclosure in the financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

In addition to the historical information contained herein, the information in this Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect the current view of the Fund with respect to future events and financial performance and are subject to several risks and uncertainties, many of which are beyond the Fund’s control. All statements, other than statements of historical facts included in this Quarterly Report, regarding the strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of the Fund are forward-looking statements. For example, statements in this Form 10-Q regarding the potential future impact of the Ukraine War, conflicts in the Middle East, results of U.S. national and local elections, worldwide inflation, interest rate volatility and natural disasters on the Fund's business and results of operations are forward-looking statements. When used in this report, the words “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements speak only as of the date of this report. The Fund does not undertake any obligation to update or revise publicly any forward-looking statements, whether resulting from new information, future events or otherwise, except as required by law.

The reader of this Quarterly Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Fund’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments, competition and macro-economic changes including inflation, interest rate expectations, among other factors including those set forth in the section of this Quarterly Report titled “Risk Factors” and in Item 1A - “Risk Factors” in the Fund’s 2023 Annual Report on Form 10-K. This entire Quarterly Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund’s business.

Overview

The Fund is 100% owned by the Company. The Fund’s shares of common stock, at $0.001 par value, were sold to its sole shareholder, the Company, under a stock purchase agreement. The Fund has issued 100,000 of the Fund’s 10,000,000 authorized shares. The Company may make additional capital contributions to the Fund.

The Fund provides financing and advisory services to a variety of carefully selected venture-backed companies that have received equity funding from traditional sources of venture capital equity funding ( i.e. a professionally managed venture capital firm), as well as non-traditional sources of venture capital equity funding (e.g., angel investors, strategic investors, family offices, crowdfunding investment platforms, etc.) (collectively, "Venture-Backed Companies"), primarily throughout the United States, with a focus on growth-oriented companies. The Fund’s portfolio consists of companies in the communications, information services, media, technology (including software and technology-enabled business services), biotechnology, and medical devices industry sectors, among others. The Fund’s capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital. On May 1, 2018, the Company called and received its first capital from investors. On May 2, 2018, the Fund made its first investment and became a non-diversified, closed-end investment company under the 1940 Act. While the Fund intends to operate as a non-diversified investment company within the meaning of Section 5(b)(2) of the 1940 Act, from time to time the Fund may act as a diversified investment company within the meaning of Section 5(b)(1) of the 1940 Act.

The Fund elected to be treated as a RIC under the Code for federal income tax purposes. Pursuant to this election, the Fund generally will not have to pay corporate-level taxes if a sufficient amount of income is distributed to its shareholder as dividends, allowing the Company to substantially reduce or eliminate its corporate-level tax liability.

The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a RIC under the Code. If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the members of the Company) and all distributions out of its earnings and profits will be taxable to the members of the Company as taxable income; thus, such income will be subject to a double layer of taxation. There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.

The Fund’s investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies, most of which are private debt securities. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt, or soon thereafter. The Fund also has guidelines for the percentages of total assets that are invested in different types of assets.

The portfolio investments of the Fund primarily consist of debt financing to Venture-Backed Companies in the technology sector. The borrower’s ability to repay its loans may be adversely impacted by several factors, and as a result, the loan may not be fully repaid. Furthermore, the Fund’s security interest in any collateral over the borrower’s assets may be insufficient to make up any shortfall in payments. Some of our portfolio companies may be impacted by rising inflation, which could have a material impact on their results of operations, specifically costs and revenues. As such, rising inflation may have an adverse impact on the portfolio borrowers’ ability to maintain their good credit standing, as well as their ability to pay their interest and principal obligations to the Fund. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce our net assets resulting from operations.

Transactions with Venture Lending & Leasing VIII, Inc.

The Manager also served as the investment manager for Fund VIII. So long as Fund VIII had capital available to invest in loan transactions with final maturities earlier than December 31, 2025, the Fund was able to invest in each portfolio company in which Fund VIII invested, subject to the approval of the Fund's Board. The Manager’s allocation process was designed to allocate investment opportunities fairly and equitably among the Fund and Fund VIII over time, and subject to board approval, was based on a methodology taking into account investment pace, the remaining commitment periods and other relevant factors. The Fund co-invested with Fund VIII through March 31, 2021, which was the end of Fund VIII's investment period. Fund VIII was deregistered as a BDC with the SEC on October 12, 2023 and distributed all of its remaining assets to its parent, Venture Lending & Leasing VIII, LLC during the year ended December 31, 2023.

Transactions with WTI Fund X, Inc.

The ability of the Fund to co-invest with Fund VIII, Fund X, and other clients advised by the Manager, was subject to the Conditions with which the funds were complying while seeking certain exemptive relief from the SEC from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. To the extent that clients, other than Fund VIII and Fund X, advised by the Manager (but in which the Manager had no proprietary interest) invested in opportunities available to the Fund, the Manager allocated such opportunities among the funds and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Critical Accounting Policies, Practices and Estimates

Critical Accounting Policies and Practices are those accounting policies and practices that are both the most important to the portrayal of the Fund’s net assets and results of operations and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Critical accounting estimates are accounting estimates where the nature of the estimates is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and the impact of the estimates on net assets or operating performance is material.

In evaluating the most critical accounting policies and estimates, the Manager has identified the estimation of fair value of the Fund’s loan investments along with the completeness of loans exhibiting indicators of potential credit deterioration as the most critical of the accounting policies and accounting estimates applied to the Fund’s reporting of net assets or operating performance. In accordance with U.S. GAAP, the Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. There is no readily available market price or secondary market for the loans made by the Fund to borrowers, hence the Manager determines fair value based on a transaction that would occur in the most advantageous market and the estimates are subject to high levels of judgment and uncertainty. The Fund’s loan investments are considered Level 3 fair value measurements in the fair value hierarchy due to the lack of observability over many of the important inputs used in determining fair value. In particular, the Manager has identified the fair value of the Fund’s loan investments that exhibit indicators of the potential for credit deterioration and the completeness of those loan investments, as a critical accounting matter that may involve significant and material estimates and inputs from the Manager in determining the fair value of those loan investments.

Critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount of future cash flows and probability of future payments, based on the assessment of payment history, available cash and “burn rate,” revenues, net income or loss, operating results, financial strength of borrower, prospects for the borrower’s raising future equity rounds, likelihood of sale or acquisition of the borrower, length of expected holding period of the loan, collateral position, the timing and amount of liquidation of collateral for loans that are experiencing significant credit deterioration and, as a result, collection becomes collateral-dependent, as well as an evaluation of the general interest rate environment. Management has evaluated these factors and has concluded that the effect of a deterioration in the quality of the underlying collateral, increase in the size of the loan, increase in the estimated time to recovery, and increase in the market coupon rate would each have the effect of decreasing the fair value of loan investments. The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and the loan. Such changes result in the fair value being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, the cost basis of substantially all loans approximates fair value.

The actual value of the loans may differ from Management’s estimates, which would affect net change in net assets resulting from operations as well as assets.

The Impact of the Ukraine War, Conflicts in the Middle East, Worldwide Inflation, Interest Rate Volatility and Natural Disasters on Results of Operations and Liquidity & Capital Resources

Global and domestic financial markets have experienced an increase in volatility as concerns about the impact of higher inflation, interest rate volatility, a potential recession, the risk of continued escalation in the Middle East, the Ukraine War, the outbreak of other hostilities or conflict (such as the Houthi attacks on marine vessels in and around the Red Sea), the results of U.S. national and local elections and extreme weather patterns or natural disasters (such as the 2024 earthquake in Taiwan) have weighed on market participants. These factors have created disruptions in supply chains and economic activity and have had a particularly adverse impact on certain industries. These uncertainties can ultimately impact the overall supply and demand of the market through changing spreads, deal terms and structures. The Fund is unable to predict the full impact of these macroeconomic events on the Fund's liquidity and capital resources.

The Fund is continuing to maintain close communications with its loan portfolio companies to proactively assess and manage potential risks. In addition, Management is continuing to maintain oversight analysis of credits across the Fund's loan investment portfolio in an attempt to manage the potential credit risk and improve loan performance. Certain loans may have inherent increased credit risk due to the nature of the underlying business and its ability to maintain operations in the current economic environment.

Management is also monitoring the Fund’s continued access to capital resources through periodic and timely communication with the bank syndicate and the Company’s members. In addition, the Fund will take proactive steps to ensure and maintain an appropriate liquidity position based on its circumstances. The Fund believes its existing cash balance, scheduled monthly payments from borrowers, and access to capital from its debt facility and the Company’s members will be sufficient to satisfy its working capital needs, debt repayments, and other liquidity requirements associated with its existing operations.

Results of Operations - For the Three and Nine Months Ended September 30, 2024 and 2023

Analysis of Interest Income

Total investment income for the three months ended September 30, 2024 and 2023 was $6.2 million and $15.5 million, respectively. Total investment income for the nine months ended September 30, 2024 and 2023 was $27.3 million and $56.1 million, respectively. Investment income primarily consisted of interest on the venture loans outstanding and early payoff. The remaining income consisted of interest and dividends on the temporary investment of cash and other income from commitment fees and warrants.

The following table shows the average outstanding balance, interest income, and weighted average interest rate for the cash and non-cash portion of interest income for the three months ended September 30, 2024 and 2023.


	For the Three Months Ended September 30, 2024						For the Three Months Ended September 30, 2023
	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion	Weighted Average Interest Rate - Non-Cash Portion	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion	Weighted Average Interest Rate - Non-Cash Portion
Performing Loans	$	149,048,739	$	6,041,895	13.23%	2.99%	$	339,741,032	$	15,108,218	14.33%	3.46%
All Loans	$	188,580,692	$	6,070,788	10.52%	2.36%	$	378,505,850	$	15,211,971	12.97%	3.11%

Interest income for both performing loans and all loans decreased by $9.1 million, or 60.0% and 60.1%, respectively, for the three months ended September 30, 2024 compared to the same period in 2023. The decrease is primarily due to a decrease in the loan investment portfolio. The average outstanding balance for performing loans and all loans decreased by $190.7 million and $189.9 million, or 56.1% and 50.2%, respectively, for the three months ended September 30, 2024 compared to the same period in 2023.

The following table shows the average outstanding balance, interest income, and weighted average interest rate for the cash and non-cash portion of interest income for the nine months ended September 30, 2024 and 2023.


	For the Nine Months Ended September 30, 2024						For the Nine Months Ended September 30, 2023
	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion	Weighted Average Interest Rate - Non-Cash Portion	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion	Weighted Average Interest Rate - Non-Cash Portion
Performing Loans	$	196,261,890	$	26,478,938	14.54%	3.45%	$	400,916,175	$	54,144,769	14.44%	3.56%
All Loans	$	233,435,959	$	26,588,056	12.29%	2.90%	$	427,750,566	$	54,269,708	13.58%	3.34%

Interest income for both performing loans and all loans decreased by $27.7 million, or 51.1% and 51.0%, respectively, for the nine months ended September 30, 2024 compared to the same period in 2023. The decrease is primarily due to decrease in the loan investment portfolio. The average outstanding balance for performing loans and all loans decreased by $204.7 million and $194.3 million, or 51.0% and 45.4%, respectively, for the nine months ended September 30, 2024 compared to the same period in 2023.

Analysis of Interest Expense

Interest expense was comprised of amounts related to interest on debt amounts drawn down, unused credit line fees, and amounts amortized from deferred fees incurred in conjunction with the debt facility.

The following table shows the average balance, interest expense, and weighted average interest rate for the three months ended September 30, 2024 and 2023.


	For the Three Months Ended September 30, 2024						For the Three Months Ended September 30, 2023
	Average Balance		Interest Expense		Weighted Average Interest Expense Rate		Average Balance		Interest Expense		Weighted Average Interest Expense Rate
Bank Facility	$	67,750,000	$	1,562,311	9.22	%	$	181,250,000	$	4,180,091	9.23	%

Interest expense decreased by $2.6 million, or 62.6%, for the three months ended September 30, 2024 compared to the same period in 2023. The decrease is primarily due to the decrease in the borrowings under the debt facility. The average outstanding balance for borrowings under the facility decreased by $113.5 million, or 62.6%, for the three months ended September 30, 2024 compared to the same period in 2023.

The following table shows the average balance, interest expense, and weighted average interest rate for the nine months ended September 30, 2024 and 2023.


	For the Nine Months Ended September 30, 2024						For the Nine Months Ended September 30, 2023
	Average Balance		Interest Expense		Weighted Average Interest Expense Rate		Average Balance		Interest Expense		Weighted Average Interest Expense Rate
Bank Facility	$	95,850,000	$	6,477,729	9.01	%	$	211,900,000	$	13,429,987	8.45	%

Interest expense decreased by $7.0 million, or 51.8%, for the nine months ended September 30, 2024 compared to the same period in 2023. The decrease is primarily due to the decrease in the borrowings under the debt facility. The average outstanding balance for borrowings under the facility decreased by $116.1 million, or 54.8%, for the nine months ended September 30, 2024 compared to the same period in 2023.

The Fund also uses derivative instruments to manage its exposure to interest rates on its borrowings under the debt facility. See the discussion herein under the caption “Quantitative and Qualitative Disclosures About Market Risk” for the approximate annualized effect of hypothetical interest rate changes in components of net assets resulting from operations.

Analysis of Operating Expense

The following table shows the components of operating expense for the three and nine months ended September 30, 2024 and 2023.


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Operating Expense	2024		2023		Change ($)		2024		2023		Change ($)
Management Fees	$	690,000	$	1,035,000	$	(345,000)	$	2,760,000	$	3,910,000	$	(1,150,000)
Banking and professional fees	$	80,023	$	38,558	$	41,465	$	401,223	$	239,214	$	162,009
Other operating expenses	$	75,798	$	55,084	$	20,714	$	303,374	$	150,080	$	153,294
Total Operating Expense	$	845,821	$	1,128,642	$	(282,821)	$	3,464,597	$	4,299,294	$	(834,697)

Banking and professional fees did not materially increase during the three months ended September 30, 2024 compared to the same period in 2023. For the nine months ended September 30, 2024, compared to the same period in 2023, it increased by $0.2 million, or 67.7%. The increase in banking and professional fees were primarily due to higher legal fees associated with non-performing loans.

Other operating expenses did not materially increase during the three months ended September 30, 2024 compared to the same period in 2023. For the nine months ended September 30, 2024, compared to the same period in 2023, it increased by $0.2 million, or 102.1%. The increase is primarily due to annual conference expense incurred during the period ended September 30, 2024. Other expenses included director fees, custody fees, tax fees and other expenses related to the operations of the Fund.

Non-recurring fees

The Fund may receive non-recurring fees in connection with the origination and servicing of portfolio loans. Transactions in this category may include forfeited commitment fees and deferred income from warrants received that become recognized as other income after the loan commitment period expires. Other non-recurring fees include pre-payment fees which are recognized as other income in the period received. Legal fee reimbursements for deal due diligence and drafting of documents are recognized as offsets against legal expenses. Non-recurring fees for the three months ended September 30, 2024 and 2023 were less than $0.1 million. Non-recurring fees for the nine months ended September 30, 2024 and 2023 totaled $0.2 million and $1.0 million, respectively.

Net Investment Income

Net investment income for the three months ended September 30, 2024 and 2023 was $3.8 million and $10.2 million, respectively. Net investment income for the nine months ended September 30, 2024 and 2023 was $17.3 million and $38.4 million, respectively.

Realized and Change in Unrealized Gains (Losses)

Net realized loss from loans was $0.0 and $0.4 million for the three months ended September 30, 2024 and 2023, respectively. Net realized loss from loans was $4.5 million and $0.4 million for the nine months ended September 30, 2024 and 2023, respectively. Realized losses consisted of loans that were written off.

Net realized gain from derivative instruments was $0.5 million and $1.4 million for the three months ended September 30, 2024 and 2023, respectively. Net realized gain from derivative instruments was $2.4 million and $7.1 million for the nine months ended September 30, 2024 and 2023, respectively. Realized gains were the result of interest being received by the Fund on the derivative instruments when the cap rates of the interest rate collars were lower than the floating rate. Realized gains for the period ended September 30, 2023 also include proceeds from termination of collar contracts with Zion Bancorporation, N.A.

Net change in unrealized loss from loans was $2.2 million and $12.4 million for the three months ended September 30, 2024 and 2023, respectively. Net change in unrealized loss from loans was $9.3 million and $14.6 million for the nine months ended September 30, 2024 and 2023, respectively. The net change in unrealized loss from loans consisted of fair value adjustments taken against loans resulting from the improvement or deterioration in certain portfolio companies’ performance.

Net change in unrealized loss from derivative instruments was $0.8 million and $1.1 million for the three months ended September 30, 2024 and 2023, respectively. Net change in unrealized loss from derivative instruments was $2.1 million and $5.4 million for the nine months ended September 30, 2024 and 2023, respectively. The net change in unrealized loss from derivative instruments consisted of fair market value adjustments to the derivative instruments and is a reflection of the market’s outlook on the economy and the future of interest rate changes, as well as realization of prior unrealized gains and losses.

Net increase (decrease) in net assets resulting from operations for the three months ended September 30, 2024 and 2023 was $1.3 million and $(2.3) million, respectively. On a per share basis, the net increase (decrease) in net assets resulting from operations for the three months ended September 30, 2024 and 2023 was $12.86 and $(22.84), respectively.

Net increase in net assets resulting from operations for the nine months ended September 30, 2024 and 2023 was $3.9 million and $25.1 million, respectively. On a per share basis, the net increase in net assets resulting from operations for the nine months ended September 30, 2024 and 2023 was $38.90 and $250.56, respectively.

Liquidity and Capital Resources – September 30, 2024 and December 31, 2023

The Fund is owned entirely by the Company. The Company may make further contributions to the capital of the Fund to the extent of the Company’s members’ capital commitment to the Company and excess cash balances of the Company. As of both September 30, 2024 and December 31, 2023, the Company's subscriptions for capital in the amount of $460.0 million had been fully called and received. Total capital contributed to the Fund was $407.1 million as of September 30, 2024 and December 31, 2023. The Company has made $46.0 million in recallable distributions to its investors, as permitted under its operating agreement between the Company’s managing member and members of the Company.

The changes in cash for the nine months ended September 30, 2024 and 2023 were as follows:


	For the Nine Months Ended September 30, 2024		For the Nine Months Ended September 30, 2023
Net cash provided by operating activities	$	124,621,029	$	166,243,083
Net cash used in financing activities	(133,158,144)		(157,856,439)
Net increase (decrease) in cash and cash equivalents	$	(8,537,115)	$	8,386,644

As of September 30, 2024 and December 31, 2023, 9.78% and 11.40%, respectively, of the Fund’s net assets consisted of cash and cash equivalents.

Borrowings by the Fund are collateralized by all the assets of the Fund and the Manager's right to receive management fees from the Fund. In the event of default, the Manager's right to receive management fees from the Fund is subordinate to the liens of the lenders. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan, a SOFR Rate Loan (calculated at Daily Simple SOFR or another applicable Term SOFR Reference Rate). The Fund pays interest on its borrowings and also pays a fee on the unused portion of the facility. The facility terminates on March 31, 2026, but can be accelerated in the event of default, such as the failure by the Fund to make timely interest or principal payments. As of September 30, 2024, $58.0 million was outstanding under the facility.

For the nine months ended September 30, 2024 and since the start of its investment operation in May 2018, the Fund invested its assets in venture loans. Amounts disbursed under the Fund’s loan commitments were $0.5 million for the nine months ended September 30, 2024. Net loan amounts outstanding after amortization and valuation adjustments decreased by $128.3 million for the same period.

As of

Cumulative Amount Disbursed

Principal Reductions and Fair Market Adjustments

Balance Outstanding -
Fair Value

September 30, 2024

$1,088.5 million

$914.0 million

$174.5 million

December 31, 2023

$1,088.0 million

$785.3 million

$302.8 million

Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is Management’s experience that not all unexpired unfunded commitments will be used by borrowers. Many credit agreements contain provisions that are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a materially adverse change in its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

The Fund seeks to maintain the requirements to qualify for the special pass-through status available to RICs under the Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder. To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (the “Distribution Requirement”). To the extent that the terms of the Fund’s venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (“residual income”), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued undistributed income in its gross income for each taxable year even if it receives no portion of such residual income in that year. Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives. Those distributions will be made from the Fund’s cash assets, from amounts received through amortization of loans or from borrowed funds.

As of September 30, 2024, the Fund had a cash balance of $13.0 million and approximately $92.0 million in scheduled loan receivable payments over the next twelve months. Additionally, the Fund has access to recallable capital of $46.0 million as a liquidity source, as well as access to capital from the Fund's debt facility as needed. These amounts are sufficient to meet operational expenses of the Fund over the next year.

On April 24, 2019, the Fund’s sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. Accordingly, the Fund is permitted to borrow in any amount so long as its asset coverage ratio, as defined in the 1940 Act, is at least 150% after giving effect to such borrowings. As of September 30, 2024, the Fund’s asset coverage ratio was 327%.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Fund’s business activities contain various elements of risk, of which Management considers interest rate and credit risk to be the principal types of risks. Because the Fund considers the management of risk essential to conducting its business and to maintaining profitability, the Fund’s risk management procedures are designed to identify and analyze the Fund’s risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.

The Fund manages its market risk by maintaining a portfolio that is diverse by industry, size of investment, stage of development, and borrower. The Fund has limited exposure to public market price fluctuations as the Fund primarily invests in private business enterprises and distributes all equity investments upon receipt to the Company.

The Fund’s investments are subject to market risk based on several factors, including, but not limited to, the borrower’s credit history, available cash, support of the borrower’s underlying investors, available liquidity, “burn rate,” revenue income, security interest, secondary markets for collateral, the size of the loan, term of the loan and the ability to exit via initial public offering or merger and acquisition.

The Fund’s exposure to interest rate sensitivity is regularly monitored and analyzed by measuring the characteristics of assets and liabilities. The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates. As of September 30, 2024, the outstanding debt balance was $58.0 million at a floating interest rate based on a Daily Simple SOFR Rate of 4.83%, for which the Fund had derivative instruments in place with a ceiling of 1.36% on $50.0 million with an interest rate collar, leaving the Fund with exposure to interest rate changes on the un-hedged portion of the loan.

Because all of the Fund’s loans impose a fixed interest rate upon funding, changes in short-term interest rates will not directly affect interest income associated with the loan portfolio as of September 30, 2024. However, changes in short-term interest rates could also affect interest rate expense, realized gain from investments and interest on the Fund’s short-term investments.

Based on the Fund’s Condensed Statements of Assets and Liabilities as of September 30, 2024, the following table shows the approximate annualized increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in investments, borrowings, cash balances and derivative instruments.


Effect of Interest Rate Change By	Increase (Decrease) Other Income		Gain (Loss) from Interest Rate Collar		(Increase) Decrease Interest Expense		Increase (Decrease) in Total Income
(2.00)%	$	(259,606)	$	(1,000,000)	$	1,160,000	$	(99,606)
(1.00)%	$	(129,803)	$	(500,000)	$	580,000	$	(49,803)
(0.50)%	$	(64,901)	$	(250,000)	$	290,000	$	(24,901)
0.50%	$	64,901	$	250,000	$	(290,000)	$	24,901
1.00%	$	129,803	$	500,000	$	(580,000)	$	49,803
2.00%	$	259,606	$	1,000,000	$	(1,160,000)	$	99,606

Additionally, a change in the interest rate may affect the fair value of the derivative instruments and affect net change in unrealized gain or loss from derivative instruments. The amount of any such effect will be contingent upon market expectations for future interest rate changes. Any increases in expected future rates will increase the fair value of the derivative instruments while any rate decreases will decrease the fair value.

Although Management believes that the foregoing analysis is indicative of the Fund’s sensitivity to interest rate changes, it does not take into consideration potential changes in the credit market, credit quality, size and composition of the assets in the portfolio. It also does not assume any new fundings to borrowers, repayments from borrowers or defaults on borrowings. Accordingly, no assurances can be given that actual results would not differ materially from the table above.

Because the Fund currently borrows, its net investment income is highly dependent upon the difference between the rate at which it borrows and the rate at which it invests the amounts borrowed. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on the Fund’s investment activities and net investment income. The Fund’s exposure to movement in short-term interest rates stems from the Fund borrowing at a floating interest rate but then making loans with a fixed rate at the time the loans are extended. The Fund, therefore, attempts to limit its interest rate risk by acquiring derivative instruments to hedge its interest rate exposure.

The Fund is not sensitive to changes in foreign currency exchange rates, commodity prices and other market rates or prices.

Item 4. Controls and Procedures

Disclosure Controls and Procedures:

At the end of the period covered by this report, the Fund carried out an evaluation under the supervision and with the participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Fund’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934 (“Exchange Act”). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective as of the end of the period in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and in providing reasonable assurance that information required to be disclosed by the Fund in such reports is accumulated and communicated to the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls:

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the Fund’s fiscal quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The Fund may become party to certain lawsuits from time to time in the normal course of business. While the outcome of any legal proceedings cannot now be predicted with certainty, the Fund does not expect any such proceedings will have a material effect upon the Fund’s financial condition or results of operation. Management is not aware of any pending legal proceedings involving the Fund. The Fund is not a party to any material legal proceedings.

Item 1A. Risk Factors

There have been no material changes to the risk factors reported in the Fund’s 2023 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the fiscal quarter ended September 30, 2024, no director or officer of the Fund adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (in each case, as defined in Item 408 of Regulation S-K).

Item 6. Exhibits


Exhibit			Exhibit Title

3.1			Amended and Restated Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on September 25, 2017, incorporated by reference to Exhibit 3.1 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.

3.2			Amended and Restated Bylaws of the Fund, incorporated by reference to Exhibit 3.2 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.

4.1			Purchase Agreement, dated June 28, 2017, between the Fund and the Company, incorporated by reference to Exhibit 4.1 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.

10.1			Investment Management Agreement, dated October 13, 2022, by and between the Fund and Westech Investment Advisors LLC, incorporated by reference to Exhibit 10.1 to the Fund’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 18, 2022.

31.1			Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification)

31.2			Chief Financial Officer certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).

32.1			Chief Executive Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).

32.2			Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

VENTURE LENDING & LEASING IX, INC.

(Registrant)

By:

/s/David R. Wanek

By:

/s/Jared S. Thear

David R. Wanek

Jared S. Thear

President and Chief Executive Officer

Chief Financial Officer

(Principal Executive Officer)

(Principal Financial Officer)

Date:

November 13, 2024

Date:

November 13, 2024

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Venture Lending & Leasing IX 10-Q2024 Q3 Quarterly report

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