Horizon Technology Finance Corporation announced that in connection with the United States Bankruptcy Court-approved sale of substantially all of the assets of Xtreme Power, Horizon has successfully exited its investment in Xtreme. Robert D. Pomeroy, Jr., Chairman and CEO of Horizon, stated, "We are pleased to reach a successful exit of our investment in Xtreme, our second resolution of a non-accrual account over the past month. The sale of Xtreme's assets has provided a full recovery of Horizon's investment including all principal, interest and fees, resulting in a realized internal rate of return on the transaction of 17.7%. As we continue to aggressively manage our dynamic venture loan portfolio, we will maintain our focus on taking advantage of the underlying value of the assets securing our loans for the benefit of shareholders." The United States Bankruptcy Court for the Western District of Texas approved the sale of substantially all of the assets of Xtreme. In connection with the sale, Horizon has received cash proceeds of $9.9M. Horizon applied $2.8M of the proceeds to fully reimburse the debtor-in-possession financing it provided to Xtreme in the first quarter of 2014 and applied the remaining $7.1M of proceeds to fully pay off Xtreme's venture loan balance, including fees and expenses. For the quarter ended March 31, Horizon expects to reverse approximately $1.3M in previously recorded unrealized depreciation on its loan investment in Xtreme. As of December 31, 2013, the loan was on non-accrual with a cost of $6M and fair value of $4.7M.