U.S. 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 of June 30, 2018 or

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

Commission File Number 333-168195

FIRSTHAND TECHNOLOGY VALUE FUND, INC.

(Exact Name of Registrant as Specified in Charter)

MARYLAND	27-3008946
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No)
150 Almaden Boulevard, Suite 1250
San Jose, California	95113
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (408) 886-7096

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. [X]  Yes [  ] No

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

[  ]  Large Accelerated Filer	[X]   Accelerated Filer
[  ]  Non-accelerated Filer	[  ]    Smaller Reporting Company (Do not check if smaller reporting company)

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

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

Class	Outstanding at July 31, 2018
Common Stock, $0.001 par value per share	7,302,146

 TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION		2
Item 1.	Financial Statements	2
	Consolidated Statements of Assets and Liabilities as of June 30, 2018 (Unaudited) and December 31, 2017	3
	Consolidated Statements of Operations (Unaudited) for the Three Months Ended June 30, 2018, and June 30, 2017, and for the Six Months    Ended June 30, 2018, and June 30, 2017	4
	Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended June 30, 2018, and June 30, 2017, and for the Six Months    Ended June 30, 2018, and June 30, 2017	5
	Consolidated Statements of Changes in Net Assets (Unaudited) for the Three Months Ended June 30, 2018, and June 30, 2017, and for the    Six Months Ended June 30, 2018, and June 30, 2017	6
	Selected Per Share Data and Ratios for the Six Months Ended June 30, 2018 (Unaudited) (Consolidated), for the Year Ended December 31,    2017 (Consolidated), for the Year Ended December 31, 2016 (Consolidated), for the Year Ended December 31, 2015 (Consolidated), for    the Year Ended December 31, 2014, and for the Year Ended December 31, 2013	7
	Consolidated Schedule of Investments as of June 30, 2018 (Unaudited) and for the Year Ended December 31, 2017	8
	Consolidated Notes To Financial Statements (Unaudited)	19
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
PART II.  OTHER INFORMATION		48
Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3.	Defaults Upon Senior Securities	49
Item 4.	Mine Safety Disclosures	49
Item 5.	Other Information	49
Item 6.	Exhibits	49
SIGNATURES		50

1 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

See accompanying notes to financial statements

2 

Firsthand Technology Value Fund, Inc.

Consolidated Statements of Assets and Liabilities

	AS OF JUNE 30, 2018 (UNAUDITED)			AS OF DECEMBER 31, 2017
ASSETS
Investment securities:
Unaffiliated investments at acquisition cost	$	19,185,832		$	33,014,039
Affiliated investments at acquisition cost		32,792,693			24,035,159
Controlled investments at acquisition cost		121,360,349			117,890,661
Total acquisition cost	$	173,338,874		$	174,939,859
Unaffiliated investments at market value	$	27,266,079		$	40,191,055
Affiliated investments at market value		23,287,015			24,656,252
Controlled investments at market value		145,181,022			109,992,218
Total market value * (Note 6)		195,734,116			174,839,525
Cash		19,720			110,077
Receivable for securities sold		602,333			—
Receivable from dividends and interest		2,794,095			1,794,003
Other assets		28,272			27,985
Total Assets		199,178,536			176,771,590
LIABILITIES
Incentive fees payable (Note 4)		6,865,832			1,691,040
Payable to affiliates (Note 4)		1,011,108			879,085
Deferred tax liability		5,083,597			—
Consulting fee payable		40,500			21,000
Accrued expenses and other payables		130,996			186,876
Total Liabilities		13,132,033			2,778,001
NET ASSETS	$	186,046,503		$	173,993,589
Net Assets consist of:
Common Stock, par value $0.001 per share 100,000,000 shares authorized	$	7,302		$	7,302
Paid-in-capital		180,772,769			180,772,769
Accumulated net investment loss		(6,063,394	)		(1,691,040	)
Accumulated net realized loss from security transactions		(4,382,675	)		(4,995,108	)
Net unrealized appreciation (depreciation) on investments and warrants transactions		15,712,501			(100,334	)
NET ASSETS	$	186,046,503		$	173,993,589
Shares of Common Stock outstanding		7,302,146			7,302,146
Net asset value per share (Note 2)	$	25.48		$	23.83

* Includes warrants whose primary exposure is equity risk.

See accompanying notes to financial statements

3 

Firsthand Technology Value Fund, Inc.

Consolidated Statements of Operations (Unaudited)

	FOR THE THREE MONTHS ENDED						FOR THE SIX MONTHS ENDED
	JUNE 30, 2018			JUNE 30, 2017			JUNE 30, 2018			JUNE 30, 2017
INVESTMENT INCOME
Unaffiliated interest	$	6,124		$	22,557		$	4,108		$	29,265
Affiliated/controlled interest		754,271			326,739			1,353,802			580,829
Affiliated/controlled loan origination income		21,000			—			21,000			—
TOTAL INVESTMENT INCOME		781,395			349,296			1,378,910			610,094
EXPENSES
Investment advisory fees (Note 4)		956,712			726,250			1,847,661			1,467,402
Administration fees		55,883			47,484			110,179			93,651
Custody fees		14,920			7,848			19,311			10,622
Transfer agent fees		8,436			7,506			16,759			14,701
Registration and filing fees		7,629			5,759			15,174			11,455
Professional fees		105,173			129,162			193,641			245,303
Printing fees		15,290			15,780			30,412			29,916
Trustees fees		50,000			25,000			100,000			50,000
Compliance fees		29,741			26,225			57,589			52,609
Miscellaneous fees		22,491			23,693			45,367			47,236
TOTAL GROSS EXPENSES		1,266,275			1,014,707			2,436,093			2,022,895
Incentive fee adjustments (Note 4)		3,000,192			—			5,174,792			—
TOTAL NET EXPENSES		4,266,467			1,014,707			7,610,885			2,022,895
NET INVESTMENT LOSS, BEFORE TAXES		(3,485,072	)		(665,411	)		(6,231,975	)		(1,412,801	)
Deferred tax benefit		1,859,621			—			1,859,621			—
Net investment loss, net of deferred taxes		(1,625,451	)		(665,411	)		(4,372,354	)		(1,412,801	)
Net Realized and Unrealized Gains (Losses) on    Investments:
Net realized gains (losses) from security transactions on:
Affiliated/controlled		491,004			—			(908,492	)		—
Non-affiliated/controlled and other assets		5,163,141			1,633,244			1,781,402			560,792
Deferred tax expense		(260,477	)		—			(260,477	)		—
Net realized gains, net of deferred taxes		5,393,668			1,633,244			612,433			560,792
Net change in unrealized appreciation (depreciation) on:
Non-affiliated investments		(1,116,171	)		1,669,254			903,231			2,231,752
Affiliated/controlled investments		19,290,801			(12,128,244	)		25,957,652			(11,347,022	)
Affiliated/controlled warrants investments (1)		(8,776,609	)		419,326			(4,365,307	)		799,989
Deferred tax expense		(6,682,741	)		—			(6,682,741	)		—
Net change in unrealized appreciation (depreciation),   net of deferred taxes		2,715,280			(10,039,664	)		15,812,835			(8,315,281	)
Net Realized and Unrealized Gains (Losses) on    Investments, Net of Deferred Taxes		8,108,948			(8,406,420	)		16,425,268			(7,754,489	)
Net Increase (Decrease) In Net Assets Resulting From    Operations, Net of Deferred Taxes	$	6,483,497		$	(9,071,831	)	$	12,052,914		$	(9,167,290	)
Net Increase /(Decrease) In Net Assets Per Share    Resulting From Operations (2)	$	0.89		$	(1.22	)	$	1.65		$	(1.23	)

(1) Primary exposure is equity risk.

(2) Per share results are calculated based on weighted average shares outstanding for each period.

See accompanying notes to financial statements  

4 

Firsthand Technology Value Fund, Inc.

Consolidated Statements of Cash Flows

	FOR THE THREE MONTHS ENDED JUNE 30, 2018 (UNAUDITED)			FOR THE THREE MONTHS ENDED JUNE 30, 2017 (UNAUDITED)			FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED)			FOR THE SIX MONTHS ENDED JUNE 30, 2017 (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase (decrease) in Net Assets resulting from    operations	$	6,483,497		$	(9,071,831	)	$	12,052,914		$	(9,167,290	)
Adjustments to reconcile net increase (decrease) in    Net Assets derived from operations to net cash    provided by (used in) operating activities:
Purchases of investments		(5,320,611	)		(997,510	)		(28,806,771	)		(8,509,165	)
Proceeds from disposition of investments		10,665,632			13,532,515			41,704,456			18,918,692
Net purchases/sales from short-term investments		(3,748,355	)		(4,046,511	)		(10,423,790	)		(3,345,725	)
Increase (decrease) in dividends, interest, and   reclaims receivable		(579,020	)		(176,085	)		(1,000,092	)		(348,768	)
Increase (decrease) in receivable in investment sold		(602,333	)		—			(602,333	)		—
Increase (decrease) in payable for investment purchased		—			90,066			—			(305,466	)
Increase (decrease) in payable to affiliates		95,504			(814,480	)		132,023			(46,945	)
Increase (decrease) in incentive fees payable		3,000,192			—			5,174,792			—
Increase (decrease) in other assets		15,240			13,547			(287	)		3,844
Decrease (increase) in accrued expenses and other payables		(41,834	)		(135,071	)		(36,380	)		(66,468	)
Increase (decrease) in deferred tax benefit		5,083,597			—			5,083,597			—
Net realized gain (loss) from investments		(5,654,145	)		(1,633,244	)		(872,910	)		(560,792	)
Net unrealized appreciation (depreciation) from    investments, other assets, and warrants transactions		(9,398,021	)		10,039,664			(22,495,576	)		8,315,281
Net cash (used in) operating activities		(657	)		6,801,060			(90,357	)		4,887,198
CASH FLOWS FROM FINANCING ACTIVITIES
Cost of shares repurchased		—			—			—			—

Net cash (used in) financing activities		—			—		—			—
Net increase (decrease) in cash		(657	)		6,801,060		(90,357	)		4,887,198
Cash - beginning of period		20,377			20,385		110,077			1,934,247
Cash - end of period	$	19,720		$	6,821,445	$	19,720		$	6,821,445

See accompanying notes to financial statements

5 

Firsthand Technology Value Fund, Inc.

Consolidated Statements of Changes in Net Assets (Unaudited)

	FOR THE THREE MONTHS ENDED JUNE 30, 2018			FOR THE THREE MONTHS ENDED JUNE 30, 2017			FOR THE SIX MONTHS ENDED JUNE 30, 2018			FOR THE SIX MONTHS ENDED JUNE 30, 2017
FROM OPERATIONS:
Net investment loss, net of deferred taxes	$	(1,625,451	)	$	(665,411	)	$	(4,372,354	)	$	(1,412,801	)
Net realized gains from security transactions and    warrants transactions, net of deferred taxes		5,393,668			1,633,244			612,433			560,792
Net change in unrealized appreciation (depreciation) on    investments and warrants transactions, net of    deferred taxes		2,715,280			(10,039,664	)		15,812,835			(8,315,281	)
Net increase (decrease) in net assets from operations		6,483,497			(9,071,831	)		12,052,914			(9,167,290	)
FROM CAPITAL SHARE TRANSACTIONS:
Value for shares repurchased		—			—			—			—
Net decrease in net assets from capital share transactions		—			—			—			—
TOTAL INCREASE/(DECREASE) IN NET ASSETS		6,483,497			(9,071,831	)		12,052,914			(9,167,290	)
NET ASSETS:
Beginning of period		179,563,006			148,816,932			173,993,589			148,912,391
End of period	$	186,046,503		$	139,745,101		$	186,046,503		$	139,745,101
Accumulated Net Investment Loss	$	(1,625,451	)	$	(665,411	)	$	(6,063,394	)	$	(1,412,801	)
COMMON STOCK ACTIVITY:
Shares repurchased		—			—			—			—
Net decrease in shares outstanding		—			—			—			—
Shares outstanding, beginning of period		7,302,146			7,430,697			7,302,146			7,430,697
Shares outstanding, end of period		7,302,146			7,430,697			7,302,146			7,430,697

See accompanying notes to financial statements

6 

Firsthand Technology Value Fund, Inc.

Financial Highlights

Selected per share data and ratios for a share outstanding throughout each period

	FOR THE SIX MONTHS ENDED JUNE 30, 2018* (UNAUDITED)			FOR THE YEAR ENDED DECEMBER 31, 2017*			FOR THE YEAR ENDED DECEMBER 31, 2016*			FOR THE YEAR ENDED DECEMBER 31, 2015*			FOR THE YEAR ENDED DECEMBER 31, 2014			FOR THE YEAR ENDED DECEMBER 31, 2013
Net asset value at beginning of    period	$	23.83		$	20.04		$	22.79		$	24.49		$	28.32		$	22.90
Income from investment    operations:
Net investment loss, before    deferred taxes		(0.85	)		(0.62	)		(0.52	)		(0.06	)(1)		(1.26	)		(1.42	)
Deferred tax benefit		0.25			—			—			—			—			—
Net investment loss		(0.60	)		(0.62	)		(0.52	)		(0.06	)		(1.26	)		(1.42	)
Net realized and unrealized    gains (losses) on investments,    before deferred taxes		3.21			4.21			(2.76	)		(1.78	)		3.04			7.16
Deferred tax expense		(0.96	)		—			—			—			—			—
Net realized and unrealized    gains (losses) on investments		2.25			4.21			(2.76	)		(1.78	)		3.04			7.16
Total from investment operations		1.65			3.59			(3.28	)		(1.84	)		1.78			5.74
Distributions from:
Realized capital gains		—			—			—			—			(5.86	)		(0.32	)
Premiums from shares sold in    offerings		—			—			—			—			—			—	(2)
Anti-dilutive effect from capital    share transactions		—			0.20			0.53			0.14			0.25			—
Net asset value at end of period	$	25.48		$	23.83		$	20.04		$	22.79		$	24.49		$	28.32
Market value at end of period	$	14.17		$	8.96		$	7.67		$	8.17		$	18.65		$	23.17
Total return
Based on Net Asset Value		6.92	%(A)		18.91	%		(12.07	)%		(6.94	)%		12.54	%		25.30	%
Based on Market Value		58.15	%(A)		16.82	%		(6.12	)%		(56.19	)%		4.76	%		34.61	%
Net assets at end of period    (millions)	$	186.0		$	174.0		$	148.9		$	175.6		$	209.7		$	256.9
Ratio of total expenses to average    net assets:
Before tax expense		8.54	%(B)(3)		4.13	%(3)		2.90	%		1.36	%(3)		5.29	%(3)		6.52	%(3)
Deferred tax expense (4)		5.70	%(B)		—			—			—			—			—
Total expenses		14.24	%(B)(3)		4.13	%		2.90	%		1.36	%		5.29	%		6.52	%
Total expenses, excluding    incentive fees		8.44	%(B)		2.98	%		2.90	%		2.68	%		3.12	%		2.67	%
Ratio of net investment loss to    average net assets:
Before tax benefit		(6.99	)%(B)(3)		(3.07	)%		(2.36	)%		(0.24	)%		(4.31	)%		(5.96	)%
Deferred tax benefit (5)		2.09	%(B)		—			—			—			—			—
Net investment loss		(4.90	)%(B)		(3.07	)%		(2.36	)%		(0.24	)%		(4.31	)%		(5.96	)%
Portfolio turnover rate		17	%(A)		22	%		49	%		22	%		95	%		17	%

* Consolidated.

(1) Calculated using average shares outstanding.

(2) Less than $0.005 per share.

(3) Amount includes the incentive fee. For the period ended June 30, 2018, the year ended December 31, 2017, the year ended December 31, 2015, the year ended December 31, 2014 and the year ended December 31, 2013, the ratio of the incentive fee to average net assets was 5.80%, 1.15%, (1.32)%, 2.17% and 3.85%, respectively.

(4) Deferred tax expense estimate is derived from net investment income (loss), and realized and unrealized gains (losses).

(5) Deferred tax benefit estimate for the ratio calculation is derived from net investment income (loss) only.

(A) Not Annualized.

(B) Annualized.

See accompanying notes to financial statements

7 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)	COST BASIS		VALUE
ALIPHCOM, INC. (0.0%)	Common Stock*(1)(7)	08/20/13	2,128,005	$	10,108,024	$	0
Consumer Electronics
EQX CAPITAL, INC (2.1%)	Common Stock*(1)(2)(7)	06/10/16	100,000		20,000		43,150
Equipment Leasing	Preferred Stock - Series A *(1)(2)(7)	06/10/16	4,000,000		4,000,000		3,844,800
							3,887,950
HERA SYSTEMS, INC. (1.7%)	Convertible Promissory Note
Aerospace	Matures January 2019
	Interest Rate 10% (1)(2)(7)	05/31/18	500,000		500,000		500,000
	Convertible Promissory Note
	Matures January 2019
	Interest Rate 10% (1)(2)(7)	01/19/18	500,000		500,000		500,000
	Preferred Stock - Series A*(1)(2)(7)	09/18/15	3,642,324		2,000,000		194,864
	Preferred Stock - Series B*(1)(2)(7)	08/07/17 - 09/28/17	2,039,203		1,587,102		453,315
	Preferred Stock Warrants - Series B*(1)(2)(7)	08/07/17	6,214,922		0		1,380,956
	Preferred Stock Warrants - Series B*(1)(2)(7)	09/28/17	700,000		0		155,540
							3,184,675
INTRAOP MEDICAL CORP. (13.8%)	Convertible Note
Medical Devices	Matures June 2020
	Interest Rate 15% (1)(2)(7)	05/31/17	1,000,000		1,000,000		1,000,000
	Convertible Note
	Matures June 2020
	Interest Rate 15% (1)(2)(7)	09/28/17	1,500,000		1,500,000		1,500,000
	Convertible Note
	Matures June 2020
	Interest Rate 15% (1)(2)(7)	07/13/17	1,000,000		1,000,000		1,000,000
	Convertible Note
	Matures June 2020
	Interest Rate 15% (1)(2)(7)	07/08/14	2,000,000		2,000,000		2,000,000
	Convertible Note
	Matures June 2020
	Interest Rate 15% (1)(2)(7)	03/21/18	1,000,000		1,000,000		1,000,000
	Preferred Stock - Series C *(1)(2)(7)	07/12/13	26,856,187		26,299,938		14,250,967

See accompanying notes to financial statements

8 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)	COST BASIS		VALUE
INTRAOP MEDICAL CORP. (continued)	Term Note
	Matures February 2020
	Interest Rate 8% (1)(2)(7)	02/10/17	2,000,000	$	2,000,000	$	2,000,000
	Term Note
	Matures February 2020
	Interest Rate 8% (1)(2)(7)	02/28/14	3,000,000		3,000,000		3,000,000
							25,750,967
NUTANIX, INC. (7.9%)	Common Stock*	05/15/15 - 08/23/16	283,772		4,258,512		14,634,122
Networking
PHUNWARE, INC. (6.4%)	Preferred Stock - Series E*(1)(3)(7)	03/14/14	3,257,328		9,999,997		11,835,827
Mobile Computing
PIVOTAL SYSTEMS CORP. (34.3%)	Common Stock*(1)(2)(7)	11/28/12 - 09/02/16	53,758,441		19,446,197		63,751,705
Semiconductor Equipment
QMAT, INC. (9.0%)	Preferred Stock - Series A*(1)(2)(5)(7)(8)	12/14/12 - 04/28/16	16,000,240		14,609,819		9,680,305
Advanced Materials	Preferred Stock - Series B*(1)(2)(7)	09/28/16 - 11/07/16	2,000,000		2,000,000		1,436,200
	Preferred Stock Warrants - Series A*(1)(2)(7)	12/14/12	2,000,000		0		417,200
	Preferred Stock Warrants - Series C *(1)(2)(7)	02/22/18	3,482,208		0		344,739
	Preferred Stock Warrants - Series C *(1)(2)(7)	03/13/18	350,000		0		34,650
	Preferred Stock Warrants - Series C *(1)(2)(7)	05/11/18	1,000,000		0		99,000
	Convertible Note
	Matures July 2018
	Interest Rate 8% (1)(2)(7	05/11/18	1,000,000		1,000,000		1,000,000
	Convertible Note
	Matures July 2018
	Interest Rate 8% (1)(2)(7)	02/22/18	3,482,209		3,482,209		3,482,209
	Convertible Note
	Matures July 2018
	Interest Rate 8% (1)(2)(7)	03/13/18	350,000		350,000		350,000
							16,844,303

See accompanying notes to financial statements

9 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)	COST BASIS		VALUE
QUICKLOGIC CORP. (0.7%)	Common Stock *	12/27/16 - 11/09/17	1,200,000	$	1,859,835	$	1,380,000
Semiconductors
REVASUM, INC. (12.3%)	Preferred Stock - Series B*(1)(2)(7)	10/27/17 - 12/20/17	313,719		2,550,033		3,259,729
Semiconductor Equipment	Common Stock*(1)(2)(7)	11/14/16	10,000		1,000		50,997
	Preferred Stock - Series A*(1)(2)(7)	03/01/17	441,998		1,999,997		3,500,889
	Term Note
	Matures February 2020
	Interest Rate 5% (1)(2)(7)	03/01/17	840,186		840,186		840,186
	Preferred Stock - Series
	Seed*(1)(2)(7)	11/14/16	2,200,000		7,275,070		15,211,680
							22,863,481
ROKU, INC. (5.7%)	Common Stock*	05/26/15 - 08/06/15	250,000		2,312,500		10,655,000
Consumer Electronics
RORUS, INC. (0.0%)	Convertible Note
Water Purification	Matures June 2021
	Interest Rate 2% (1)(7)	10/04/16	50,000		50,000		0
SILICON GENESIS CORP. (2.6%)	Common Stock*(1)(2)(7)	04/18/11	921,892		169,045		10,786
Intellectual Property	Common Stock Warrants*(1)(2)(7)	04/18/11	37,982		6,678		220
	Common Stock Warrants*(1)(2)(7)	10/13/11	5,000,000		0		6,500
	Common Stock Warrants*(1)(2)(7)	02/06/12	3,000,000		0		3,900
	Preferred Stock - Series 1-C*(1)(2)(7)	04/18/11	82,914		109,518		52,037
	Preferred Stock - Series 1-D*(1)(2)(7)	04/18/11	850,830		431,901		142,939
	Preferred Stock - Series 1-E*(1)(2)(7)	04/18/11	5,704,480		2,372,403		1,718,189
	Preferred Stock - Series 1-F*(1)(2)(7)	04/18/11	912,453		456,389		374,836
	Preferred Stock - Series
	1-G*(1)(2)(5)(7)	03/10/16	48,370,793		4,500,969		2,291,808
	Preferred Stock - Series 1-H*(1)(2)(7)	03/10/16	837,942		936,895		192,643
							4,793,858
SVXR, INC. (2.2%)	Preferred Stock - Series A*(1)(3)(7)	01/11/17 - 06/20/18	6,156,316		3,057,534		3,057,534
Semiconductor Equipment	Convertible Note
	Matures December 2018
	Interest Rate 10% (1)(3)(7)	05/30/18	1,000,000		1,000,000		1,000,000
							4,057,534

See accompanying notes to financial statements

10 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
TELEPATHY INVESTORS, INC. (1.7%)	Convertible Note
Consumer Electronics	Matures January 2019
	Interest Rate 10% (1)(2)(7)	01/29/16		300,000	$	300,000	$	112,290
	Convertible Note
	Matures January 2019
	Interest Rate 10% (1)(2)(7)	04/20/16		500,000		500,000		187,150
	Convertible Note
	Matures January 2019
	Interest Rate 10% (1)(2)(7)	06/21/16		150,000		150,000		56,145
	Convertible Note
	Matures January 2019
	Interest Rate 10% (1)(2)(7)	12/13/16		500,000		500,000		187,150
	Convertible Note
	Matures January 2019
	Interest Rate 10% (1)(2)(7)	06/23/15		2,000,000		2,000,000		748,600
	Convertible Note
	Matures July 2018
	Interest Rate 10% (1)(2)(7)	05/03/17		300,000		300,000		112,290
	Preferred Stock - Series A*(1)(2)(7)	07/29/14		15,238,000		3,999,999		1,675,418
								3,079,043
UCT COATINGS, INC. (0.4%)	Common Stock*(1)(3)(7)	04/18/11		1,500,000		662,235		779,250
Advanced Materials	Common Stock Warrants*(1)(3)(7)	04/18/11		2,283		67		57
								779,307
VUFINE, INC. (0.5%)	Common Stock*(1)(2)(7)	02/26/15		750,000		15,000		0
Consumer Electronics	Convertible Note
	Matures July 2019
	Interest Rate 6% (1)(2)(7)	07/10/17		1,500,000		1,500,000		640,650
	Convertible Note
	Matures October 2019
	Interest Rate 12% (1)(2)(7)	10/16/17		250,000		250,000		106,775
	Convertible Note
	Matures July 2019
	Interest Rate 12% (1)(2)(7)	01/31/18		350,000		350,000		149,485
	Convertible Note
	Matures July 2019
	Interest Rate 12% (1)(2)(7)	06/19/18		300,000		300,000		128,130
	Preferred Stock - Series A*(1)(2)(7)	03/04/15 - 02/18/16		22,500,000		2,250,000		0
								1,025,040

See accompanying notes to financial statements

11 

Firsthand Technology Value Fund, Inc. 

Consolidated Schedule of Investments - continued

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
WRIGHTSPEED, INC. (3.6%)	Preferred Stock -
Automotive	Series C*(1)(3)(4)(5)(7)	04/11/13		2,267,659	$	6,837,983	$	496,844
	Preferred Stock - Series D *(1)(3)(7)	12/15/14		1,100,978		3,375,887		312,017
	Preferred Stock - Series E *(1)(3)(7)	07/10/15		450,814		1,658,996		137,273
	Preferred Stock - Series F *(1)(3)(7)	08/31/17		90,707		499,995		41,517
	Preferred Stock Warrants - Series F *(1)(3)(7)	04/09/18		13,606		0		15
	Preferred Stock Warrants - Series F *(1)(3)(7)	04/26/18		6,803		0		8
	Preferred Stock Warrants - Series F*(1)(3)(7)	06/21/18		4,000,000		0		1,827,200
	Preferred Stock Warrants - Series F*(1)(3)(7)	05/01/18		7,400,000		0		3,380,320
	Preferred Stock Warrants - Series F*(1)(3)(7)	06/21/18		4,000,000		0		4,800
	Preferred Stock Warrants - Series F*(1)(3)(7)	05/01/18		7,400,000		0		8,880
	Preferred Stock Warrants - Series F*(1)(3)(7)	02/07/18		11,338		0		12
	Preferred Stock Warrants - Series F*(1)(3)(7)	08/31/17		18,141		0		20
	Convertible Note
	Matures December 2018
	Interest Rate 12% (1)(3)(7)	05/01/18		3,700,000		3,700,000		263,181
	Convertible Note
	Matures December 2018
	Interest Rate 12% (1)(3)(7)	06/21/18		2,000,000		2,000,000		142,260
								6,614,347
INVESTMENT COMPANY (0.3%)	Fidelity Investments Money Market
	Treasury Portfolio - Class I (6)	Various		596,957		596,957		596,957

See accompanying notes to financial statements

12 

Firsthand Technology Value Fund, Inc.  

Consolidated Schedule of Investments - continued

JUNE 30, 2018 (UNAUDITED)

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)	COST BASIS	VALUE
TOTAL INVESTMENTS (Cost $173,338,874) — 105.2%					$	195,734,116
LIABILITIES IN EXCESS OF OTHER ASSETS — (5.2)%						(9,687,613	)
NET ASSETS — 100.0%					$	186,046,503

* Non-income producing security.

(1) Restricted security. Fair Value is determined by or under the direction of the Company’s Board of Directors (See Note 3). At June 30, 2018, we held $168,468,037 (or 90.6% of net assets) in restricted securities (see Note 2).

(2) Controlled investments.

(3) Affiliated issuer.

(4) A portion represents position held in Firsthand Holdings, Ltd. (See Note 1).

(5) A portion represents position held in Firsthand Development, Ltd. (See Note 1).

(6) The Fidelity Investments Money Market Portfolio invests primarily in U.S. Treasury securities.

(7) Fair Value Level 3 Security.

(8) A portion represents position held in Firsthand Investments, Ltd. (See Note 1).

See accompanying notes to financial statements

13 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments

DECEMBER 31, 2017

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
ALIPHCOM, INC. (0.0%)	Common Stock*(1)(7)	08/20/13		2,128,005	$	10,108,024	$	0
Consumer Electronics
EQX CAPITAL, INC. (2.3%)	Common Stock*(1)(2)(7)	06/10/16		100,000		20,000		44,810
Equipment Leasing	Preferred Stock - Series A *(1)(2)(7)	06/10/16		4,000,000		4,000,000		3,975,200
								4,020,010
HERA SYSTEMS, INC. (1.2%)	Preferred Stock - Series A*(1)(2)(7)	09/18/15		3,642,324		2,000,000		154,799
Aerospace	Preferred Stock - Series B*(1)(2)(7)	08/07/17 - 09/28/17		2,039,203		1,587,102		453,315
	Preferred Stock Warrants - Series B*(1)(2)(7)	08/07/17		6,214,922		0		1,380,956
	Preferred Stock Warrants - Series B*(1)(2)(7)	09/28/17		700,000		0		155,540
								2,144,610
HIGHTAIL, INC. (4.9%)	Preferred Stock - Series E *(1)(4)(7)	03/27/14		2,268,602		9,620,188		8,561,704
Cloud Computing
INTRAOP MEDICAL CORP. (12.1%)	Convertible Note (1)(2)(7)
Medical Devices	Matures June 2020
	Interest Rate 15%	05/31/17		1,000,000		1,000,000		1,000,000
	Convertible Note (1)(2)(7)
	Matures June 2020
	Interest Rate 15%	09/28/17		1,500,000		1,500,000		1,500,000
	Convertible Note (1)(2)(7)
	Matures June 2020
	Interest Rate 15%	07/13/17		1,000,000		1,000,000		1,000,000
	Convertible Note (1)(2)(7)
	Matures June 2020
	Interest Rate 15%	07/08/14		1,000,000		1,000,000		1,000,000
	Preferred Stock - Series C *(1)(2)(7)	07/12/13		26,856,187		26,299,938		11,479,677
	Term Note (1)(2)
	Matures February 2020
	Interest Rate 8%	02/10/17		2,000,000		2,000,000		2,000,000
	Term Note (1)(2)(7)
	Matures February 2020
	Interest Rate 8%	02/28/14		3,000,000		3,000,000		3,000,000
								20,979,677

See accompanying notes to financial statements

14 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

DECEMBER 31, 2017

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
NUTANIX, INC. (9.3%)	Common Stock*	05/15/15 - 08/23/16		458,772	$	7,358,112	$	16,185,476
Networking
PHUNWARE, INC. (6.9%)	Preferred Stock - Series E*(1)(3)(7)	03/14/14		3,257,328		9,999,997		12,018,563
Mobile Computing
PIVOTAL SYSTEMS CORP. (19.9%)	Common Stock Warrants - Class B*(1)(2)(7)	02/12/16		18,180,475		0		8,741,172
Semiconductor Equipment	Preferred Stock Warrants - Series D*(1)(2)(7)	09/02/16		4,158,654		0		618,392
	Preferred Stock - Series A*(1)(2)(7)	11/28/12 - 04/30/14		11,914,217		6,000,048		8,453,614
	Preferred Stock - Series B*(1)(2)(7)	04/30/14		13,065,236		6,321,482		9,270,308
	Preferred Stock - Series C*(1)(2)(7)	12/31/14		2,291,260		2,657,862		2,560,254
	Preferred Stock - Series D*(1)(2)(7)	09/02/16		6,237,978		3,975,801		5,009,720
								34,653,460
QMAT, INC. (13.4%)	Preferred Stock - Series A*(1)(2)(7)	12/14/12 - 04/28/16		16,000,240		16,000,240		17,394,341
Advanced Materials	Preferred Stock - Series B*(1)(2) (7)	09/28/16 - 11/07/16		2,000,000		2,000,000		2,132,600
	Preferred Stock Warrants - Series A*(1)(2)	12/14/12		2,000,000		0		1,086,600
	Convertible Note
	Matures March 2019
	Interest Rate 8% (1)(2)(7)	12/29/17		2,745,485		2,745,485		2,745,485
								23,359,026
QUICKLOGIC CORP. (1.2%)	Common Stock *	12/27/16 - 11/09/17		1,200,000		1,859,835		2,088,000
Semiconductors
REVASUM, INC. (8.5%)	Preferred Stock - Series B (1)(2)(7)(8)	10/27/17 - 12/20/17		313,719		2,550,033		2,550,033
Semiconductor Equipment	Common Stock*(1)(2)(7)	11/14/16		10,000		1,000		29,908
	Preferred Stock - Series A*(1)(2)(7)	03/01/17		441,998		1,999,997		2,256,355
	Term Note (1)(2)(7)
	Matures February 2020
	Interest Rate 5%	03/01/17		1,000,000		1,000,000		1,000,000
	Preferred Stock - Series
	Seed* (1)(2)(7)	11/14/16		2,200,000		7,284,145		8,966,760
								14,803,056

See accompanying notes to financial statements

15 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

DECEMBER 31, 2017

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
ROKU, INC. (6.7%)	Common Stock*(1)(7)	05/26/15 - 08/06/15		250,000	$	2,312,500	$	11,650,500
Consumer Electronics
RORUS, INC. (0.0%)	Convertible Note (1)(7)
Water Purification	Matures June 2021
	Interest Rate 2%	10/04/16		50,000		50,000		0
SILICON GENESIS CORP. (3.5%)	Common Stock*(1)(2)(7)	04/18/11		921,892		169,045		16,871
Intellectual Property	Common Stock Warrants*(1)(2)(7)	04/18/11		5,000,000		0		11,000
	Common Stock Warrants*(1)(2)(7)	10/13/11		37,982		6,678		357
	Common Stock Warrants*(1)(2)(7)	02/06/12		3,000,000		0		6,600
	Preferred Stock - Series 1-C*(1)(2)(7)	04/18/11		82,914		109,518		74,258
	Preferred Stock - Series 1-D*(1)(2)(7)	04/18/11		850,830		431,901		205,646
	Preferred Stock - Series 1-E*(1)(2)(7)	04/18/11		5,704,480		2,459,808		2,063,310
	Preferred Stock - Series 1-F*(1)(2)(7)	04/18/11		912,453		475,674		456,318
	Preferred Stock - Series
	1-G*(1)(2)(5)(7)	03/10/16		48,370,793		4,583,405		3,023,658
	Preferred Stock - Series 1-H*(1)(2)(7)	03/10/16		837,942		946,502		236,551
								6,094,569
SVXR, INC. (1.2%)	Preferred Stock - Series A*(1)(3)(7)	01/11/17		2,013,491		1,000,000		1,000,000
Semiconductor Equipment	Convertible Note (1)(2)(7)
	Matures December 2018
	Interest Rate 10% (1)(2)(7)	12/21/17		1,000,000		1,000,000		1,000,000
								2,000,000

See accompanying notes to financial statements

16 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

DECEMBER 31, 2017

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/PAR VALUE ($)		COST BASIS		VALUE
TELEPATHY INVESTORS, INC. (0.9%)	Convertible Note (1)(2)(7)
Consumer Electronics	Matures January 2018
	Interest Rate 10%	01/29/16		300,000	$	300,000	$	45,321
	Convertible Note (1)(2)(7)
	Matures January 2018
	Interest Rate 10%	04/20/16		500,000		500,000		75,535
	Convertible Note (1)(2)(7)
	Matures January 2018
	Interest Rate 10%	06/21/16		150,000		150,000		22,661
	Convertible Note (1)(2)(7)
	Matures January 2018
	Interest Rate 10%	12/13/16		500,000		500,000		75,535
	Convertible Note (1)(2)(7)
	Matures January 2018
	Interest Rate 10%	06/23/15		2,000,000		2,000,000		302,140
	Convertible Note (1)(2)(7)
	Matures January 2018
	Interest Rate 10%	05/03/17		300,000		300,000		45,321
	Preferred Stock - Series A*(1)(2)(7)	07/29/14		15,238,000		3,999,999		937,137
								1,503,650
UCT COATINGS, INC.(0.5%)	Common Stock*(1)(3)(7)	04/18/11		1,500,000		662,235		922,050
Advanced Materials	Common Stock Warrants*(1)(3)(7)	04/18/11		2,283		67		4
								922,054
VUFINE, INC. (0.8%)	Common Stock*(1)(2)(7)	02/26/15		750,000		15,000		0
Consumer Electronics	Convertible Note (1)(2)(7)
	Matures July 2019
	Interest Rate 6%	07/10/17		1,500,000		1,500,000		1,229,280
	Preferred Stock - Series A*(1)(2)(7)	03/04/15 - 02/18/16		22,500,000		2,250,000		0
	Convertible Note (1)(2)(7)
	Matures October 2019
	Interest Rate 12%	10/16/17		250,000		250,000		204,880
								1,434,160
WRIGHTSPEED, INC. (6.2%)	Preferred Stock - Series C*(1)(3)(4)(7)	04/11/13		2,267,659		6,837,983		5,704,296
Automotive	Preferred Stock - Series D *(1)(3)(7)	12/15/14		1,100,978		3,375,887		3,161,018
	Preferred Stock - Series E *(1)(3)(7)	07/10/15		450,814		1,658,996		1,350,323
	Preferred Stock - Series F *(1)(3)(7)	08/31/17		90,707		499,995		471,295
	Preferred Stock Warrants - Series F*(1)(3)(7)	08/31/17		18,141		0		28,703
								10,715,635

See accompanying notes to financial statements

17 

Firsthand Technology Value Fund, Inc.

Consolidated Schedule of Investments - continued

DECEMBER 31, 2017

PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY	TYPE OF INVESTMENT	ACQUISITION DATE	SHARES/ PAR VALUE ($)		COST BASIS		VALUE
INVESTMENT COMPANY (1.0%)	Fidelity Investments Money Market Treasury Portfolio - Class I (6)	Various		1,705,375	$	1,705,375	$	1,705,375
TOTAL INVESTMENTS (Cost $174,939,859) — 100.5%								174,839,525
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.5)%								(845,936	)
NET ASSETS — 100.0%							$	173,993,589

* Non-income producing security.

(1) Restricted security. Fair Value is determined by or under the direction of the Company’s Board of Directors (see Note 3). At December 31, 2017, we held $154,860,674 (or 89.0% of net assets) in restricted securities (see Note 2).

(2) Controlled Investments.

(3) Affiliated issuer.

(4) A portion represents position held in Firsthand Holdings, Ltd. (see Note 1).

(5) A portion represents position held in Firsthand Development, Ltd. (see Note 1).

(6) The Fidelity Investments Money Market Portfolio invests primarily in U.S. Treasury securities.

(7) Fair Value Level 3 Security.

(8) A portion represents position held in Firsthand Investments, Ltd. (see Note 1).

See accompanying notes to financial statements

18 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements

june 30, 2018 (unaudited)

NOTE 1. THE COMPANY

Firsthand Technology Value Fund, Inc. (the “Company,” “us,” “our,” and “we”), is a Maryland corporation and an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company acquired its initial portfolio of securities through the reorganization of Firsthand Technology Value Fund, a series of Firsthand Funds, into the Company. The reorganization was completed on April 15, 2011. The Company commenced operations on April 18, 2011. Under normal circumstances, the Company will invest at least 80% of its assets for investment purposes in technology companies, which are considered to be those companies that derive at least 50% of their revenues from products and/or services within the information technology sector or the “cleantech” sector. Information technology companies include, but are not limited to, those focused on computer hardware, software, telecommunications, networking, Internet, and consumer electronics. While there is no standard definition of cleantech, it is generally regarded as including goods and services designed to harness renewable energy and materials, eliminate emissions and waste, and reduce the use of natural resources. In addition, under normal circumstances we will invest at least 70% of our assets in privately held companies and in public companies with market capitalizations less than $250 million. Our portfolio is primarily composed of equity and equity derivative securities of technology and cleantech companies (as defined above). These investments generally range between $1 million and $10 million each, although the investment size will vary proportionately with the size of the Company’s capital base. The Company’s shares are listed on the NASDAQ Global Market under the symbol “SVVC.”

The Company is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946.

CONSOLIDATION OF SUBSIDIARIES. On May 8, 2015, the Board of Directors of the Company approved the formation of a fully owned and controlled subsidiary (as defined by the 1940 Act) of the Company named Firsthand Venture Investors (“FVI”), a California general partnership formed on March 30, 2015. After the closing of business on June 30, 2015, the Company contributed substantially all of its assets to FVI in return for a controlling general partner ownership interest in FVI. The transaction was completed July 1, 2015. Under this new structure, we will have all or substantially all of our investment activities conducted through our fully owned subsidiary, FVI.

On June 10, 2016, the Board of Directors of the Company approved the formation of a fully owned and controlled subsidiary (as defined by the 1940 Act) of FVI named Firsthand Holdings, Ltd. (“FHL”), a Cayman Islands corporation formed on May 4, 2016. Under this structure, we may from time to time transfer investments in the Company held in the Company or FVI to FHL in return for ownership interests in FHL. The net assets of FHL at June 30, 2018, were $324,268 or 0.2% of the Company’s consolidated net assets. On September 27, 2016, the Board of Directors of the Company approved the formation of a fully owned and controlled subsidiary (as defined by the 1940 Act) of FVI named Firsthand Development, Ltd (“FDL”), a Cayman Islands corporation formed on September 22, 2016. Under this structure, we may from time to time transfer investments in the Company held in the Company or FVI to FDL in return for ownership interests in FDL. The net assets of FDL at June 30, 2018, were $5,634,830 or 3.0% of the Company’s consolidated net assets. On November 10, 2017, the Board of Directors of the Company approved the formation of a fully owned and controlled subsidary (as defined by the 1940 Act) of FVI named Firsthand Investments, Ltd. (“FIL”), a Cayman Islands corporation formed on November 15, 2017. The net assets of FIL at June 30, 2018, were $5,747,595 or 3.1% of the Company’s consolidated net assets. The financial statements of the Company, FVI, FHL, FDL, and FIL are presented in the report on a consolidated basis.

FHL, FDL, and FIL are all treated as controlled foreign corporations under the Internal Revenue Code and are not expected to be subject to U.S. federal income tax. FVI is treated as a U.S. shareholder of each of FHL, FDL, and FIL. As a result, FVI is required to include in gross income for U.S. federal tax purposes all of FHL, FDL, and FIL’s income, whether or not such income is distributed by FHL, FDL, or FIL. If a net loss is realized by FHL, FDL, or FIL, such loss is not generally available to offset the income earned by FVI.

19 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed in the preparation of the Company’s financial statements included in this report:

USE OF ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

PORTFOLIO INVESTMENT VALUATIONS. Investments are stated at “value” as defined in the 1940 Act and in the applicable regulations of the Securities and Exchange Commission and in accordance with GAAP. Value, as defined in Section 2(a)(41) of the 1940 Act, is (i) the market value of those securities for which a market quotation is readily available and (ii) the fair value as determined in good faith by, or under the direction of, the board of directors for all other securities and assets. On June 30, 2018, our financial statements include venture capital investments valued at approximately $104,716,332. The fair values of our venture capital investments were determined in good faith by, or under the direction of, the Board. Upon sale of these investments, the values that are ultimately realized may be different from what is presently estimated. The difference could be material. Also see note 6 regarding the fair value of the company’s investments.

CASH AND CASH EQUIVALENTS. The Company considers liquid assets deposited with a bank, investments in money market funds, and certain short-term debt instruments with maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay our expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates market value.

RESTRICTED SECURITIES. At June 30, 2018, and December 31, 2017, we held $168,468,037 and $154,860,674, in restricted securities, respectively.

INCOME RECOGNITION. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Other non-cash dividends are recognized as investment income at the fair value of the property received. When debt securities are determined to be non-income producing, the Company ceases accruing interest and writes off any previously accrued interest. These write-offs are recorded as a reduction to interest income.

SHARE VALUATION. The net asset value (“NAV”) per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent.

REALIZED GAIN OR LOSS AND UNREALIZED APPRECIATION OR DEPRECIATION OF PORTFOLIO INVESTMENTS. A realized gain or loss is recognized when an investment is disposed of and is computed as the difference between the Company’s cost basis in the investment at the disposition date and the net proceeds received from such disposition. Realized gains and losses are calculated on a specific identification basis. Unrealized appreciation or depreciation is computed as the difference between the fair value of the investment and the cost basis of such investment.

INCOME TAXES. Beginning on June 30, 2018, we were no longer able to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). This change in tax status resulted from the increase in the value of a single holding, Pivotal Systems Corp., which meant that we were no longer able to satisfy the diversification requirements for qualification as a RIC. As a result of this change, we will be taxed as a corporation for our fiscal year ended December 31, 2018, and will continue to be taxed in that manner for future fiscal years, paying federal and applicable state corporate taxes on our taxable income, unless and until we are able to once again qualify as a RIC, based on changes in the composition of our portfolio. Consequently, at the close of each fiscal quarter beginning with this quarter ended June 30, 2018, we will record a deferred tax liability for any net realized gains and net ordinary income for the year-to-date period plus net unrealized gains as of the end of the quarter.

20 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

FOREIGN CURRENCY TRANSLATION. The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation.

SECURITIES TRANSACTIONS. Securities transactions are accounted for on the date of the transaction for the purchase or sale of the securities entered into by the Company (i.e., trade date).

CONCENTRATION OF CREDIT RISK. The Company places its cash and cash equivalents with financial institutions and, at times, cash held in checking accounts may exceed the Federal Deposit Insurance Corporation insured limit.

OPTIONS. The Company is subject to equity price risk in the normal course of pursuing its investment objectives and may enter into options written to hedge against changes in the value of equities. The Company may purchase put and call options to attempt to provide protection against adverse price effects from anticipated changes in prevailing prices of securities or stock indices. The Company may also write put and call options. When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written.

Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Company has realized a gain or loss. The Company as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

The Company had no option transactions for the six months ended June 30, 2018.

The average volume of the Company’s derivatives during the six months ended June 30, 2018, is as follows:

	PURCHASED OPTIONS (CONTRACTS)	WARRANTS (SHARES)	WRITTEN OPTIONS (CONTRACTS)
Firsthand Technology Value Fund, Inc.	—	41,289,509	—

NOTE 3. BUSINESS RISKS AND UNCERTAINTIES

We plan to invest a substantial portion of our assets in privately-held companies, the securities of which are inherently illiquid. We also seek to invest in small publicly-traded companies that we believe have exceptional growth potential and to make opportunistic investments in publicly-traded companies, both large and small. In the case of investments in small publicly-traded companies, although these companies are publicly traded, their stock may not trade at high volumes, and prices can be volatile, which may restrict our ability to sell our positions. These privately held and publicly traded businesses tend to lack management depth, have limited or no history of operations and typically have not attained profitability. Because of the speculative nature of our investments and the lack of public markets for privately held investments, there is greater risk of loss than is the case with traditional investment securities.

21 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

We do not choose investments based on a strategy of diversification. We also do not rebalance the portfolio should one of our portfolio companies increase in value substantially relative to the rest of the portfolio. Therefore, the value of our portfolio may be more vulnerable to events affecting a single sector, industry or portfolio company and, therefore, may be subject to greater volatility than a company that follows a diversification strategy.

Because there is typically no public or readily-ascertainable market for our interests in the small privately-held companies in which we invest, the valuation of those securities is determined in good faith by the Valuation Committee, comprised of all members of the Board who are not “interested persons” of the Company, as such term is defined in Section 2(a)(19) of the 1940 Act, in accordance with our Valuation Procedures and is subject to significant estimates and judgments. The determined value of the securities in our portfolio may differ significantly from the values that would be placed on these securities if a ready market for the securities existed. Any changes in valuation are recorded in our Statement of Operations as “Net increase (decrease) in unrealized appreciation on investments.” Changes in valuation of any of our investments in privately-held companies from one period to another may be volatile.

The Board may, from time to time, engage an independent valuation firm to provide it with valuation assistance with respect to certain of our portfolio investments. The Company intends to continue to engage an independent valuation firm to provide us with assistance regarding our determination of the fair value of select portfolio investments each quarter unless directed by the Board to cancel such valuation services. The scope of the services rendered by an independent valuation firm is at the discretion of the Board. The Board is ultimately and solely responsible for determining the fair value of the Company’s investments in good faith.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, the Board has approved a multi-step valuation process to be followed each quarter, as described below:

(1) each quarter the valuation process begins with each portfolio company or investment being initially valued by the Adviser Valuation Committee or the independent valuation firm;

(2) the Valuation Committee of the Board on a quarterly basis reviews the preliminary valuation of the Adviser Valuation Committee and that of the independent valuation firms and makes the fair value determination, in good faith, based on the valuation recommendations of the Adviser Valuation Committee and the independent valuation firms; and

(3) at each quarterly Board meeting, the Board considers the valuations recommended by the Adviser Valuation Committee and the independent valuation firms that were previously submitted to the Valuation Committee of the Board and ratifies the fair value determinations made by the Valuation Committee of the Board.

NOTE 4. INVESTMENT MANAGEMENT FEE

The Company has entered into an investment management agreement (the “Investment Management Agreement”) with Firsthand Capital Management, Inc., which was previously known as SiVest Group, Inc. (“FCM” or the “Adviser”), pursuant to which the Company will pay FCM a fee for providing investment management services consisting of two components—a base management fee and an incentive fee.

The base management fee will be calculated at an annual rate of 2.00% of our gross assets. For services rendered under the Investment Management Agreement, the base management fee will be payable quarterly in arrears. The base management fee will be calculated based on the average of (1) the value of our gross assets at the end of the current calendar quarter and (2) the value of the Company’s gross assets at the end of the preceding calendar quarter; and will be appropriately adjusted for any share issuances or repurchases during the current calendar quarter. Base management fees for any partial month or quarter will be pro-rated.

22 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

The incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date), commencing on April 15, 2011, and equals 20% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fees, provided that the incentive fee determined as of December 31, 2017, will be calculated for a period of shorter than twelve calendar months to take into account any realized gains computed net of all realized capital losses and unrealized capital depreciation from inception. As of June 30, 2018, there was an incentive fee payable for $6,865,832. As of December 31, 2017, there was an incentive fee payable for $1,691,040.

NOTE 5. DEBT

The Company currently has no plan to use leverage and does not have any significant outstanding debt obligations (other than normal operating expense accruals).

NOTE 6. FAIR VALUE

Securities traded on stock exchanges, or quoted by NASDAQ, are valued according to the NASDAQ Stock Market, Inc. (“NASDAQ”) official closing price, if applicable, or at their last reported sale price as of the close of trading on the New York Stock Exchange (“NYSE”) (normally 4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price.

Securities traded in the over-the-counter market, but not quoted by NASDAQ, are valued at the last sale price (or, if the last sale price is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the close of trading on the NYSE.

Securities traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market.

Securities and other assets that do not have market quotations readily available are valued at their fair value as determined in good faith by the Board of Directors of the Company (the “Board”) in accordance with the Valuation Procedures adopted by the Valuation Committee, a committee of the Board.

In pricing illiquid, privately placed securities, the Board of Directors is responsible for (1) determining overall valuation guidelines and (2) ensuring that the investments of the Company are valued within the prescribed guidelines.

The Valuation Committee, comprised of all of the independent Board members, is responsible for determining the valuation of the Company’s assets within the guidelines established by the Board of Directors. The Valuation Committee receives information and recommendations from the Adviser and an independent valuation firm.

The values assigned to these investments are based on available information and do not necessarily represent amounts that might ultimately be realized when that investment is sold, as such amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated or become readily marketable.

23 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

APPROACHES TO DETERMINING FAIR VALUE. GAAP 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 (exit price). In effect, GAAP applies fair value terminology to all valuations whereas the 1940 Act applies market value terminology to readily marketable assets and fair value terminology to other assets.

The main approaches to measuring fair value utilized are the market approach, the income approach, and the asset-based approach. The choice of which approach to use in a particular situation depends on the specific facts and circumstances associated with the company, as well as the purpose for which the valuation analysis is being conducted. Firsthand and the independent valuation firm rely primarily on the market approach. We also considered the income and asset-based approaches in our analysis because certain of the portfolio companies do not have substantial operating earnings relative to the value of their underlying assets.

- Market Approach (M): The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. For example, the market approach often uses market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range each appropriate multiple falls requires the use of judgment in considering factors specific to the measurement (qualitative and quantitative).

- Income Approach (I): The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. Those valuation techniques include present value techniques; option-pricing models, such as the Black-Scholes-Merton formula (a closed-form model) and a binomial model (a lattice model), which incorporate present value techniques; and the multi-period excess earnings method, which is used to measure the fair value of certain assets.

- Asset-Based Approach (A): The asset-based approach examines the value of a company’s assets net of its liabilities to derive a value for the equity holders.

FAIR VALUE MEASUREMENT. In accordance with the guidance from the Financial Accounting Standards Board on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements).

The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the date of measurement.

Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments in an active or inactive market, interest rates, prepayment speeds, credit risks, yield curves, default rates, and similar data.

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Company’s own assumptions about the assumptions a market participant would use in valuing the asset or liability based on the best information available.

24 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Company’s net assets as of June 30, 2018:

ASSETS	LEVEL 1 QUOTED PRICES		LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS		LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS
Common Stocks
Advanced Materials	$	—	$	—	$	779,250
Consumer Electronics		10,655,000		—		—
Equipment Leasing		—		—		43,150
Intellectual Property		—		—		10,786
Networking		14,634,122		—		—
Semiconductors		—		—		63,802,702
Semiconductor Equipment		1,380,000		—		—
Total Common Stocks		26,669,122		—		64,635,888
Preferred Stocks
Advanced Materials		—		—		11,116,505
Aerospace		—		—		648,179
Automotive		—		—		987,651
Consumer Electronics		—		—		1,675,418
Equipment Leasing		—		—		3,844,800
Intellectual Property		—		—		4,772,452
Medical Devices		—		—		14,250,967
Mobile Computing		—		—		11,835,827
Semiconductor Equipment		—		—		25,029,832
Total Preferred Stocks		—		—		74,161,631
Asset Derivatives *
Equity Contracts		—		—		7,664,017
Total Asset Derivatives		—		—		7,664,017

25 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

ASSETS (continued)	LEVEL 1 QUOTED PRICES		LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS		LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS
Convertible Notes
Advanced Materials	$	—	$	—	$	4,832,209
Aerospace		—		—		1,000,000
Automotive		—		—		405,441
Consumer Electronics		—		—		2,428,665
Medical Devices		—		—		11,500,000
Semiconductor Equipment		—		—		1,840,186
Total Convertible Notes		—		—		22,006,501
Mutual Funds		596,957		—		—
Total	$	27,266,079	$	—	$	168,468,037

* Asset derivatives include warrants.

At the end of each calendar quarter, management evaluates the Level 2 and Level 3 assets and liabilities for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and Level 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Transfers in and out of the levels are recognized at the value at the end of the period. There were no transfers between Levels 1 and 2 as of June 30, 2018.

Following is a reconciliation of Level 3 assets (at either the beginning or the ending of the quarter) for which significant unobservable inputs were used to determine fair value.

INVESTMENTS AT FAIR VALUE USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)	BALANCE AS OF 12/31/17		NET PURCHASES/ CONVERSION		NET SALES/ CONVERSION			NET REALIZED GAINS /(LOSSES)			NET UNREALIZED APPRECIATION (DEPRECIATION) (1)			TRANSFERS IN (OUT) OF LEVEL 3		BALANCE AS OF 6/30/18
Common Stocks
Advanced   Materials	$	922,050	$	—	$	—		$	—		$	(142,800	)	$	—	$	779,250
Consumer   Electronics		11,650,500		—		(2,312,500	)		—			(9,338,000	)		—		—
Equipment   Leasing		44,810		—		—			—			(1,660	)		—		43,150
Intellectual   Property		16,871		—		—			—			(6,085	)		—		10,786
Semiconductor   Equipment		29,908		21,869,876		(2,914,684	)		491,004			44,326,598			—		63,802,702
Preferred Stocks
Advanced   Materials		19,526,941		14,609,819		(14,609,819	)		(1,390,421	)		(7,020,015	)		—		11,116,505
Aerospace		608,114		—		—			—			40,065			—		648,179
Automotive		10,686,932		—		—			—			(9,699,281	)		—		987,651
Cloud Computing		8,561,704		—		(5,462,741	)		(4,157,447	)		1,058,484			—		—
Consumer   Electronics		937,137		—		—			—			738,281			—		1,675,418

26 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

INVESTMENTS AT FAIR VALUE USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) (continued)	BALANCE AS OF 12/31/17		NET PURCHASES/ CONVERSION		NET SALES/ CONVERSION			NET REALIZED GAINS /(LOSSES)			NET UNREALIZED APPRECIATION (DEPRECIATION) (1)			TRANSFERS IN (OUT) OF LEVEL 3		BALANCE AS OF 6/31/18
Equipment   Leasing	$	3,975,200	$	—	$	—		$	—		$	(130,400	)	$	—	$	3,844,800
Intellectual   Property		6,059,741		—		(198,730	)		—			(1,088,559	)		—		4,772,452
Medical Devices		11,479,677		—		—			—			2,771,290			—		14,250,967
Mobile   Computing		12,018,563		—		—			—			(182,736	)		—		11,835,827
Semiconductor   Equipment		40,067,044		8,782,604		(25,680,263	)		(9,075	)		1,869,522			—		25,029,832
Asset Derivatives
Equity Contracts		12,029,324		—		—			—			(4,365,307	)		—		7,664,017
Convertible Notes
Advanced   Materials		2,745,485		4,832,209		(2,745,485	)		—			—			—		4,832,209
Aerospace		—		1,000,000		—			—			—			—		1,000,000
Automotive		—		5,950,000		(250,000	)		—			(5,294,559	)		—		405,441
Consumer   Electronics		2,000,673		650,000		—			—			(222,008	)		—		2,428,665
Medical Devices		9,500,000		2,000,000		—			—			—			—		11,500,000
Semiconductor   Equipment		2,000,000		2,000,000		(2,159,814	)		—			—			—		1,840,186
Water   Purification		—		—		—			—			—			—		—
Total	$	154,860,674	$	61,694,508	$	(56,334,036	)	$	(5,065,939	)	$	13,312,830		$	—	$	168,468,037

(1) The net change in unrealized depreciation from Level 3 instruments held as of June 30, 2018, was $46,595,021.

The below chart represents quantitative disclosure about significant unobservable inputs for Level 3 fair value measurements at June 30, 2018.

	FAIR VALUE AT 6/30/18	VALUATION TECHNIQUES	UNOBSERVABLE INPUTS	RANGE (WEIGHTED AVG.)
Direct venture capital investments: Advanced Materials	$17.6M	Market Comparable   Companies Prior Transaction   Analysis Probability-Weighted   Expected Return Option Pricing Model	EBITDA Multiple Years to Maturity Volatility Risk-Free Rate Going Concern Probability Discount for Lack of Marketability	9.2x - 11.3x (10.3x) 5 years (5 years) 50.0% (50.0%) 2.73% (2.73%) 70% - 100% (71.0%) 0.0% - 22.7% (1.0%)

27 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

june 30, 2018 (unaudited)  

(continued)	FAIR VALUE AT 6/30/18	VALUATION TECHNIQUES	UNOBSERVABLE INPUTS	RANGE (WEIGHTED AVG.)
Direct venture capital investments: Aerospace	$3.2M	Prior Transaction   Analysis Option Pricing Model	Years to Maturity Volatility Risk-Free Rate	5 years (5 years) 60.0% (60.0%) 2.73% (2.73%)
Direct venture capital investments: Automotive	$6.6M	Prior Transaction   Analysis Option Pricing Model	Years to Maturity Volatility Risk-Free Rate	3 years (3 years) 55.0% (55.0%) 2.63% (2.63%)
Direct venture capital investments: Consumer Electronics	$4.1M	Market Comparable   Companies Probability-Weighted   Expected Return Invested Capital (Cost) Option Pricing Model	Revenue Multiple Going Concern Probability Years to Maturity Volatility Risk-Free Rate	1.8x - 2.1x (1.0x) 50% - 60% (52%) 1 year - 5 years (2.0 years) 60.0% - 70.0% (67.5%) 2.33% (2.33%)
Direct venture capital investments: Equipment Leasing	$3.9M	Prior Transaction   Analysis Option Pricing Model	Years to Maturity Volatility Risk-Free Rate	5 years (5 years) 50.0% (50.0%) 2.73% (2.73%)
Direct venture capital investments: Intellectual Property	$4.8M	Prior Transaction   Analysis Option Pricing Model	Years to Maturity Volatility Risk-Free Rate Discount for Lack of Marketability Adjustment for Market Movement	5 years (5 years) 55.0% (55.0%) 2.73% (2.73%) 0.0% - 24.3% (0.1%) -43.8% (-43.8%)
Direct venture capital investments: Medical Devices	$25.8M	Market Comparable   Companies Option Pricing Model	Revenue Multiple Years to Maturity Volatility Risk-Free Rate	3.0x - 3.2x (3.1x) 4 years (4 years) 50.0% (50.0%) 2.68% (2.68%)
Direct venture capital investments: Mobile Computing	$11.8M	Prior Transaction   Analysis Probability-Weighted   Expected Return Option Pricing Model	Years to Maturity Volatility Risk-Free Rate Transaction Completion Probability	2 years (2 years) 60.0% (60.0%) 2.52% (2.52%) 50.0% (50.0%)
Direct venture capital investments: Semiconductor Equipment	$90.7M	Market Comparable   Companies Prior Transaction   Analysis Option Pricing Model	Revenue Multiple Years to Maturity Volatility Risk-Free Rate Discount for Lack of Marketability	1.1x - 1.6x (1.4x) 5 years (5 years) 40.0% - 60.0% (48.6%) 2.73% (2.73%) 0.0% - 25.8% (9.3%)

NOTE 7. FEDERAL INCOME TAXES

Beginning on June 30, 2018, we were no longer able to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). This change in tax status resulted from the increase in the value of a single holding, Pivotal Systems Corp., which meant that we were no longer able to satisfy the diversification requirements for qualification as a RIC. As a result of this change, we will be taxed as a corporation for our fiscal year ended December 31, 2018, and will continue to be taxed in that manner for future fiscal years, paying federal and applicable state corporate taxes on our taxable income, unless and until we are able to once again qualify as a RIC, based on changes in the composition of our portfolio. Consequently, at the close of each fiscal quarter beginning with this quarter ended June 30, 2018, we will record a deferred tax liability for any net realized gains and net ordinary income for the year-to-date period plus net unrealized gains as of the end of the quarter.

28 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

The reorganization described in Note 1 (the formation of FVI as a fully owned subsidiary for investment activities) was structured to avoid any adverse tax consequences for the Company and its shareholders. The Company’s engaging in investment activities through FVI did not, in our view, jeopardize the Company’s ability to continue to qualify as a RIC under the Code at that time when the Company was eligible to be treated as a RIC.

The following information is based upon the federal income tax cost of portfolio investments as of June 30, 2018.

Gross unrealized appreciation	$	82,860,547
Gross unrealized depreciation		(60,465,305	)
Net unrealized appreciation	$	22,395,242
Federal income tax cost	$	173,338,874

The Company is subject to tax provisions that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ending 2014, 2015, 2016, and 2017 remain open to federal and state audit. As of December 31, 2017, management has evaluated the application of these provisions to the Company and has determined that no provision for income tax is required in the Company’s financial statements for uncertain tax provisions.

NOTE 8. INVESTMENT TRANSACTIONS

Investment transactions (excluding short-term investments) were as follows for the six months ended June 30, 2018.

PURCHASES AND SALES
Purchases of investment securities	$	28,806,770
Proceeds from sales and maturities of investment securities	$	41,704,457

NOTE 9. SHARE BUYBACK/TENDER OFFER

SHARE BUYBACKS. On April 26, 2016, the Board of Directors of the Company approved a discretionary share repurchase plan (the “Plan”). Pursuant to the Plan, the Company was authorized to purchase in the open market up to $2 million worth of its common stock. The Plan allowed the Company to acquire its own shares at certain thresholds below its net asset value (NAV) per share, in accordance with the guidelines specified in Rule 10b-18 of the Securities Act of 1934, as amended. The intent of the Plan was to increase NAV per share and thereby enhance shareholder value. The Company completed the repurchase plan in September 2016, having repurchased and retired a total of 272,008 shares of stock, at a total cost of approximately $2 million.

On November 10, 2017, the Board of Directors of the Company approved a discretionary share purchase plan (the “Plan”). Pursuant to the Plan, the Company was authorized to purchase in the open market up to $2 million worth of its common stock. The Plan allowed the Company to acquire its own shares in accordance with the guidelines specified in Rule 10b-18 of the Securities Act of 1934, as amended. The intent of the Plan was to increase NAV per share and thereby enhance shareholder value. Through the closing of the Plan at the end of March, we had repurchased and retired 128,551 shares of stock at a total cost of approximately $1.1 million. Purchases under the Plan were restricted during certain months in order to comply with SEC rules regarding material nonpublic information. As of June 30, 2018, the Company had 7,302,146 shares outstanding.

29 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

TENDER OFFER. In connection with our agreement with a shareholder, we agreed to commence an issuer tender offer for up to $20 million of our shares of common stock at a purchase price per share equal to 95% of the Company’s net asset value per share (“NAV”) as of the close of ordinary trading on the NASDAQ Global Market on December 31, 2014 (the “Offer”). On December 22, 2014, the Company commenced a tender offer to purchase up to $20 million of its issued and outstanding common shares for cash at a price per share equal to 95% of the NAV determined on December 31, 2014 ($23.2702 per share). The tender offer, which expired on January 22, 2015 at 12:00 midnight, New York City time, was oversubscribed. Because the number of shares tendered exceeded the maximum amount of its offer, the Company purchased shares from tendering shareholders on a pro-rata basis based on the number of shares properly tendered. Of the 5,044,728 shares properly tendered, the Company purchased 859,468 shares of common stock pursuant to the tender offer.

NOTE 10. INVESTMENTS IN AFFILIATES AND CONTROLLED INVESTMENTS

Under the 1940 Act, the Company is required to identify investments where it owns greater than 5% (but less than 25%) of the portfolio company’s outstanding voting shares as an affiliate of the Company. Also, under the 1940 Act, the Company is required to identify investments where it owns greater than 25% of the portfolio company’s outstanding voting shares as a controlled investment of the Company. A summary of the Company’s investments in affiliates and controlled investments for the period from December 31, 2017, through June 30, 2018, is noted below:

AFFILIATE/ CONTROLLED INVESTMENTS*	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION		REALIZED GAIN (LOSS)		CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
EQX Capital, Inc.   Common Stock	$	44,810	$	—	$	—	$	—	$	—	$	(1,660	)	$	43,150		100,000
EQX, Inc.   Preferred Stock -   Series A*		3,975,200		—		—		—		—		(130,400	)		3,844,800		4,000,000
Hera Systems, Inc.   Series A   Preferred*		154,799		—		—		—		—		40,065			194,864		3,642,324
Hera Systems   Convertible Note		—		500,000		22,639		—		—		—			500,000		500,000
Hera Systems   Convertible Note		—		500,000		4,306		—		—		—			500,000		500,000
Hera Systems, Inc.   Series B   Preferred*		453,315		—		—		—		—		—			453,315		2,039,203
Hera Systems, Inc.   Series B   Warrants*		155,540		—		—		—		—		—			155,540		700,000

30 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION			REALIZED GAIN (LOSS)		CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
Hera Systems, Inc.   Series B   Warrants*	$	1,380,956	$	—	$	—	$	—		$	—	$	—		$	1,380,956		6,214,922
IntraOp Medical   Corp. Series C   Preferred*		11,479,677		—		—		—			—		2,771,290			14,250,967		26,856,187
IntraOp Medical   Corp. Convertible   Note*		1,000,000		—		113,168		—			—		—			1,000,000		1,000,000
IntraOp Medical   Corp. Convertible   Note*		1,000,000		—		74,384		—			—		—			1,000,000		1,000,000
IntraOp Medical   Corp. Convertible   Note*		1,500,000		—		111,575		—			—		—			1,500,000		1,500,000
IntraOp Medical   Corp. Convertible   Note*		1,000,000		—		74,384		—			—		—			1,000,000		1,000,000
IntraOp Medical   Corp. Convertible   Note*		—		2,000,000		83,836		—			—		—			2,000,000		2,000,000
IntraOp Medical   Corp. Term Note*		3,000,000		—		119,014		—			—		—			3,000,000		3,000,000
IntraOp Medical   Corp. Term Note*		2,000,000		—		79,342		—			—		—			2,000,000		2,000,000
Phunware,   Inc.Preferred   Stock - Series E		12,018,563		—		—		—			—		(182,736	)		11,835,827		3,257,328
Pivotal Systems,   Series A   Preferred*		8,453,614		—		—		(6,000,047	)		—		(2,453,567	)		—		—
Pivotal Systems,   Series B   Preferred*		9,270,308		—		—		(6,321,483	)		—		(2,948,825	)		—		—
Pivotal Systems,   Series C   Preferred*		2,560,254		—		—		(2,657,862	)		—		97,608			—		—
Pivotal Systems,   Series D   Preferred*		5,009,720		—		—		(3,975,801	)		—		(1,033,919	)		—		—

31 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION			REALIZED GAIN (LOSS)			CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
Pivotal Systems,   Series D   Warrants*	$	618,392	$	—	$	—	$	—		$	—		$	(618,392	)	$	—		—
Pivotal Systems,   Common Stocks   Warrants -   Class B*		8,741,172		—		—		—			—			(8,741,172	)		—		—
Pivotal Systems   Corp., Common   Stock*		—		21,869,876		—		(2,914,684	)		491,004			44,305,509			63,751,705		53,758,441
QMAT, Preferred   Stock Series A*		17,394,341		14,609,819		—		(14,609,819	)		(1,390,421	)		(6,323,615	)		9,680,305		16,000,240
QMAT, Preferred   Stock Series B*		2,132,600		—		—		—			—			(696,400	)		1,436,200		2,000,000
QMAT, Series A   Warrant*		1,086,600		—		—		—			—			(669,400	)		417,200		2,000,000
QMAT, Preferred   Stock Warrants -   Series B*		—		—		—		—			—			344,739			344,739		3,482,208
QMAT, Preferred   Stock Warrants -   Series C*		—		—		—		—			—			34,650			34,650		350,000
QMAT, Preferred   Stock Warrants -   Series C*		—		—		—		—			—			99,000			99,000		1,000,000
QMAT, Convertible   Note*		—		3,482,209		98,456		—			—			—			3,482,209		3,482,209
QMAT, Convertible   Note*		—		1,000,000		11,178		—			—			—			1,000,000		1,000,000
QMAT, Convertible   Note*		2,745,485		—		31,291		(2,745,485	)		—			—			—		—
QMAT, Convertible   Note*		—		350,000		8,433		—			—			—			350,000		350,000
Revasum,   Preferred Stock   Series B*		2,550,033		—		—		—			—			709,696			3,259,729		313,719

32 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION			REALIZED GAIN (LOSS)			CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
Revasum, Term   Note*	$	1,000,000	$	—	$	24,005	$	(159,814	)	$	—		$	—		$	840,186		840,186
Revasum, Common   Stock*		29,908		—		—		—			—			21,089			50,997		10,000
Revasum,   Preferred Stock -   Series Seed		8,966,760		6,725,070		—		(6,725,070	)		(9,075	)		6,253,995			15,211,680		2,200,000
Revasum,   Preferred Stock   Series A*		2,256,355		—		—		—			—			1,244,534			3,500,889		441,998
Silicon Genesis   Corp., Common *		16,871		—		—		—			—			(6,085	)		10,786		921,892
Silicon Genesis   Corp., Common   Warrants*		357		—		—		—			—			(137	)		220		37,982
Silicon Genesis   Corp., Common   Warrants*		11,000		—		—		—			—			(4,500	)		6,500		5,000,000
Silicon Genesis   Corp., Common   Warrants*		6,600		—		—		—			—			(2,700	)		3,900		3,000,000
Silicon Genesis   Corp., Series 1-C   Preferred*		74,258		—		—		—			—			(22,221	)		52,037		82,914
Silicon Genesis   Corp., Series 1-D   Preferred*		205,646		—		—		—			—			(62,707	)		142,939		850,830
Silicon Genesis   Corp., Series 1-E   Preferred*		2,063,310		—		—		(87,402	)		—			(257,719	)		1,718,189		5,704,480
Silicon Genesis   Corp., Series 1-F   Preferred*		456,318		—		—		(19,285	)		—			(62,197	)		374,836		912,453
Silicon Genesis   Corp., Series 1-G   Preferred*		3,023,658		—		—		(82,436	)		—			(649,414	)		2,291,808		48,370,793
Silicon Genesis   Corp., Series 1-H   Preferred*		236,551		—		—		(9,606	)		—			(34,302	)		192,643		837,942
SVXR, Inc.,   Preferred Stock   Series A		1,000,000		2,057,534		—		—			—			—			3,057,534		6,156,316

33 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION			REALIZED GAIN (LOSS)		CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
SVXR, Inc.   Convertible Note	$	—	$	1,000,000	$	8,493	$	—		$	—	$	—		$	1,000,000		1,000,000
SVXR, Inc.   Convertible Note		1,000,000		1,000,000		57,534		(2,000,000	)		—		—			—		—
Telepathy   Investors, Inc.   Convertible   Note*		302,140		—		120,566		—			—		446,460			748,600		2,000,000
Telepathy   Investors, Inc.   Convertible   Note*		45,321		—		15,083		—			—		66,969			112,290		300,000
Telepathy   Investors, Inc.   Convertible   Note*		22,661		—		8,227		—			—		33,484			56,145		150,000
Telepathy   Investors, Inc.   Convertible   Note*		75,535		—		27,274		—			—		111,615			187,150		500,000
Telepathy   Investors, Inc.   Convertible   Note*		45,321		—		17,752		—			—		66,969			112,290		300,000
Telepathy   Investors, Inc.   Convertible   Note*		75,535		—		28,359		—			—		111,615			187,150		500,000
Telepathy   Investors, Inc.   Series A   Preferred*		937,137		—		—		—			—		738,281			1,675,418		15,238,000
UCT Coatings,   Inc.Common   Stock		922,050		—		—		—			—		(142,800	)		779,250		1,500,000
UCT Coatings,   Inc.Common   Stock Warrants		4		—		—		—			—		53			57		2,283
Vufine, Inc.,   Common Stock*		—		—		—		—			—		—			—		750,000
Vufine, Inc.,   Convertible   Note*		1,229,280		—		89,260		—			—		(588,630	)		640,650		1,500,000
Vufine, Inc.,   Convertible   Note*		204,880		—		14,877		—			—		(98,105	)		106,775		250,000
Vufine, Inc.,   Convertible   Note*		—		350,000		17,375		—			—		(200,515	)		149,485		350,000

34 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION		REALIZED GAIN (LOSS)		CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
Vufine, Inc.,   Convertible   Note*	$	—	$	300,000	$	1,184	$	—	$	—	$	(171,870	)	$	128,130		300,000
Vufine, Inc.,   Preferred Stock   Series A		—		—		—		—		—		—			—		22,500,000
Wrightspeed, Inc.,   Series C   Preferred Stock		5,704,296		—		—		—		—		(5,207,452	)		496,844		2,267,659
Wrightspeed, Inc.,   Series D   Preferred Stock		3,161,018		—		—		—		—		(2,849,001	)		312,017		1,100,978
Wrightspeed, Inc.,   Series E   Preferred Stock		1,350,323		—		—		—		—		(1,213,050	)		137,273		450,814
Wrightspeed, Inc.,   Series F   Preferred Stock		471,295		—		—		—		—		(429,778	)		41,517		90,707
Wrightspeed, Inc.,   Series F   Preferred Stock   Warrants		—		—		—		—		—		15			15		13,606
Wrightspeed, Inc.,   Series F   Preferred Stock   Warrants		—		—		—		—		—		8			8		6,803
Wrightspeed, Inc.   Series F   Warrants		—		—		—		—		—		1,827,200			1,827,200		4,000,000
Wrightspeed, Inc.   Series F   Warrants		—		—		—		—		—		3,380,320			3,380,320		7,400,000
Wrightspeed, Inc.   Series F   Warrants		—		—		—		—		—		4,800			4,800		4,000,000
Wrightspeed, Inc.   Series F   Warrants		—		—		—		—		—		8,880			8,880		7,400,000
Wrightspeed, Inc.   Series F   Warrants		28,703		—		—		—		—		(28,683	)		20		18,141
Wrightspeed, Inc.   Series F   Warrants		—		—		—		—		—		12			12		11,338

35 

Firsthand Technology Value Fund, Inc.

Consolidated Notes to Financial Statements - continued

JUNE 30, 2018 (UNAUDITED)

AFFILIATE/ CONTROLLED INVESTMENTS* (continued)	VALUE AT 12/31/17		PURCHASES/ MERGER		INTEREST		SALES/ MATURITY/ EXPIRATION			REALIZED GAIN (LOSS)			CHANGE IN APPRECIATION/ DEPRECIATION			VALUE AT 6/30/18		SHARES HELD/PAR VALUE AT 6/30/18
Wrightspeed   Convertible Note	$	—	$	3,700,000	$	75,233	$	—		$	—		$	(3,436,819	)	$	263,181		3,700,000
Wrightspeed   Convertible Note		—		2,000,000		6,667		—			—			(1,857,740	)		142,260		2,000,000
Wrightspeed   Convertible Note		—		300,000		2,170		(300,000	)		—			—			—		—
Wrightspeed   Convertible Note		—		150,000		247		(150,000	)		—			—			—		—
Wrightspeed   Convertible Note		—		250,000		6,822		(250,000	)		—			—			—		—
Total Affiliates and   Controlled   Investments	$	134,648,470			$	1,353,134				$	(908,492	)	$	21,592,345		$	168,468,037
Total Affiliates		25,656,252				157,166					—			(10,126,771	)		23,287,015
Total Controlled   Investments	$	108,992,218			$	1,195,968				$	(908,492	)	$	31,719,116		$	145,181,022

* Controlled investment.

As of June 30, 2018, Kevin Landis represents the Company and sits on the board of directors of Hera Systems, Inc.; IntraOp Medical, Inc.; Pivotal Systems, Inc.; QMAT, Inc.; Revasum, Inc.; Silicon Genesis Corp.; Telepathy Investors, Inc.; Vufine, Inc.; and Wrightspeed, Inc. Serving on boards of directors of portfolio companies may cause conflicts of interest. The Adviser has adopted various procedures to ensure that the Company will not be unfavorably affected by these potential conflicts.

NOTE 11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Company through the date that financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

36 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

FORWARD-LOOKING STATEMENTS

The matters discussed in this report, as well as in future oral and written statements by management of the Company, include forward-looking statements based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements related to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other similar words. Important assumptions include our ability to originate new investments and to achieve certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report include, without limitations, statements as to:

• our future operating results;