Quarterly Report Q4 2023 — Nakano Investments

01 · Overview

Consolidated cash

$179k

-15.7% QoQ

Combined equity

$3.31M

Nakano $2.44M · CP $870k

Private portfolio (MTM)

$5.22M

on $2.41M invested · $124k returned

Public portfolio (MTM)

$684k

-$15k unrealized

2023 expenses (ann.)

$50k

$50k YTD

A quick preliminary note on the "preliminary" nature of the FY 2023 report. Preliminary for two reasons: 1) I am still fiddling with the "final code" which will automate everything (what's new), and 2) I still haven't broken out Centerpitch nicely from Nakano; given the former's size and the fact it really only affects PhotonVault, some of Smartemis, our rent and a bit of entertainment expense, I think we can hold this in our minds for one more year.

The $615k decrease in account balances is accounted for by the investments in Smartemis and Photon Vault, as well as the net change in equity and expenses. Generally we returned 7.4% on our public investments across eTrade and IBKR vs. 24.2% for the S&P. As we've discussed, we weren't invested in the beginning part of the year (we had most of our money in Treasuries during that time). We look slightly better looking at it all the way until today: 16.3% for us vs. 33.1% for the S&P.

Consolidated cash, quarterly

Balances by account

Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · “Running Cash Balances”

02 · Expenses

Consolidated (Nakano + Centerpitch)

2023 YTD$50,295

Annualized$50,295

2022 full year$36,308

+38.5% YoY (annualized)

Nakano

2023 YTD$21,914

Annualized$21,914

2022 full year$36,308

-39.6% YoY (annualized)

Centerpitch

2023 YTD$28,381

Annualized$28,381

2022 full year$0

2023 spend by line item (consolidated)

I've broken out some more categories, mainly around what we do internally. Expenses increased $13k (or 36.8%) YoY in 2023. The main culprits were the World Cup client event, the restart of our Grants subscription ($3k), my visiting Smartemis in Munich and Avignon on due diligence ($1k), Norikase ($1k), and John's painting ($3k). There was also a small timing rebalance ($2k) for the Accountant payment.

Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Expenses_Summary / Expenses_Nakano / Expenses_Centerpitch · full tables in the appendix · annualization holds Accountant Fees, State/City Fees, Client Entertainment, and Internal Events at actuals

03 · Equity balances

Nakano Investments LLC

Total equity$2,441,545

Design target (D/W)80 / 20

Drexler $1,953,236 (80.0%)Wiesner $488,309 (20.0%)

Centerpitch Investments LLC

Total equity$869,500

Design target (D/W)50 / 50

Drexler $434,750 (50.0%)Wiesner $434,750 (50.0%)

Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Nakano_Equity / Centerpitch_Equity

04 · Private portfolio

We made two private investments this year: a ~$705k investment in Smartemis, bringing our total stake in that company to $1.34 million (the net split between Drexler/Wiesner is 64.2%/35.8%); and a $100k investment in Photon Vault (50%/50%). This represents a 26.6% increase over the $635k in investments we made in 2022. Since inception, we've made $5.26 million in investments and received back $3.11 million in returns, net of $461k in taxes (not all of which are associated with the private portfolio). We had $2.29m of investments outstanding at the end of 2023. Therefore, with the full tax burden of Nakano applied, we've made a nominal return of 2.6% on the private porfolio. Our return on deals that have closed was 20.9%.

Deal	First funding	Invested	Cash received	Remaining value	MOIC	Outperformance case
Nakano Investments LLC
Smartemis Veterinary services — France, Germany (Principal: Bill Hughson)	Mar 2022	$633,683	—	$1,901,050	3.00×	$4,435,783
ScreenMeet Cloud-native remote support SaaS (Principal: Ben Lilienthal)	Jun 2021	$574,999	—	$574,999	1.00×	—
Northfield Residential real-estate development (Principal: Patrick Zalupski)	Aug 2020	$250,000	$123,750	$376,250	2.00×	$575,000
BloomIntel Restaurant marketing — Bloom Intelligence (Principal: Will Wilson)	Aug 2021	$100,000	—	$100,000	1.00×	$200,000
LungThera Biotech — now Rein Therapeutics, RNTX (Principal: Brian Windsor)	Mar 2022	$50,000	—	$50,000	1.00×	$100,000
Nakano subtotal		$1,608,682	$123,750	$3,002,299	1.94×
Centerpitch Investments LLC
SmartemisCP Veterinary services — Centerpitch tranche	Jun 2023	$704,618	—	$2,113,855	3.00×	$4,932,328
PhotonVault Waste-heat battery storage (Principals: Kent McCormick, John Langhus)	Mar 2023	$100,000	—	$100,000	1.00×	$500,000
Centerpitch subtotal		$804,618	$0	$2,213,855	2.75×
Consolidated		$2,413,301	$123,750	$5,216,154	2.21×

Invested (light) vs total value — paler segment is cash already returned

Source: Nakano_Portfolio_Data.xlsx · Deal_Registry / Deal_Transactions / Deal_Valuations · marks are total deal value (report-sourced); Remaining value = mark − cash received, which is what counts toward portfolio value (received cash already sits in the cash accounts) · MOIC = total value / invested · deals, marks, and cash received are as of the report date · open deals with no dated mark yet are carried at cost

05 · Public portfolio

All public securities are held at Nakano Investments (eTrade and Interactive Brokers). Centerpitch holds no public positions.

Open positions (MTM)

$684k

-$15k vs cost

Realized G/L, 2023 YTD

-$8k

+ $28k dividends

eTrade NAV

$780k

broker-reported, Dec 31

IBKR NAV

$171k

broker-reported, Dec 31

NAV bridge: open positions $684k + eTrade cash $98k + IBKR cash $11k (margin loan) = $793k ≈ combined broker NAV $951k — brokerage NAV nets cash and margin against the securities.

Daily marks — securities value by account

TotaleTradeIBKR

Performance vs indexes (time-weighted)

	Cumulative	CAGR	2023 YTD
Portfolio	+27.2%	+5.4%	-12.5%
Blended benchmark	+66.7%	+11.7%	+21.3%
S&P 500	+81.6%	+13.8%	+26.2%
MSCI ACWI	+56.5%	+10.2%	+22.3%
Japan (EWJ)	+30.0%	+5.9%	+20.3%
Europe (VGK)	+40.4%	+7.7%	+20.2%

Time-weighted: daily returns of the securities book chained with buys/sells neutralized as external flows; dividends and option premiums count as return. Base 100 on 2019-05-24. The blended benchmark applies the portfolio's own daily bucket weights to matching index returns (US equities→SPY, Japan equities→EWJ, Europe equities→VGK, China equities→MCHI, US bonds/bills→BIL, Crypto→ETH-USD; dividend-adjusted USD ETFs). Current mix: US equities 93%, Japan equities 4%, Europe equities 3%. T-bill discounts recognize at purchase; delisted names (ALRN, LUMO) excluded.

Open positions

Ticker	Qty	Cost basis	Last price (local)	MTM (USD)	Gain	Weight
eTrade
GOOG Alphabet (Class C)	750	$73,387	$140.93	$105,698	+44.0%	15.5%
SBLK	4,000	$82,578	$21.26	$85,040	+3.0%	12.4%
JNJ	500	$79,822	$156.74	$78,370	-1.8%	11.5%
ABBV	500	$54,308	$154.97	$77,485	+42.7%	11.3%
CVS	800	$60,382	$78.96	$63,168	+4.6%	9.2%
GS Goldman Sachs Group	150	$51,075	$385.77	$57,866	+13.3%	8.5%
XOM Exxon Mobil	500	$49,873	$99.98	$49,990	+0.2%	7.3%
NEE NextEra Energy	700	$39,534	$60.74	$42,518	+7.5%	6.2%
KO	400	$22,820	$58.93	$23,572	+3.3%	3.4%
LMT	50	$16,498	$453.24	$22,662	+37.4%	3.3%
CCJ Cameco	500	$22,706	$43.10	$21,550	-5.1%	3.2%
WMT Walmart	200	$31,378	$52.55	$10,510	-66.5%	1.5%
CMG	10	$18,690	$45.74	$457	-97.6%	0.1%
eTrade subtotal		$603,051		$638,885
IBKR
BNP BNP Paribas (BNP.PA)	250	$15,856	€62.59	$17,319	+9.2%	2.5%
8031.T Mitsui & Co	900	$28,183	¥2,649.00	$16,857	-40.2%	2.5%
7011.T Mitsubishi Heavy Industries	1,100	$47,333	¥824.10	$6,410	-86.5%	0.9%
5020.T ENEOS Holdings	1,000	$4,099	¥560.40	$3,962	-3.3%	0.6%
COIN Coinbase Global	1	$131	$173.92	$234	+78.6%	0.0%
RHM Rheinmetall (RHM.DE)	150	$41,783	no price	—	—	—
IBKR subtotal		$137,386		$44,782

No market price (delisted / corporate action pending): RHM — carried outside MTM totals.

Realized results by year

	2019	2020	2021	2022	2023	Total
Realized G/L	$33k	$169k	$408k	-$277k	-$8k	$326k
Dividends	$10k	$23k	$59k	$84k	$28k	$204k

Source: Nakano_Portfolio_Data.xlsx · Public_Trades / Prices / Account_NAV · daily marks: nakano_reporting daily_marks engine (month-ends tie IBKR PortfolioAnalyst within ±1.1%)

06 · Appendix — expense detail

Consolidated

Line item	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	Total
Office Rent		4,170	14,778	15,065	15,391	15,855	16,638	14,641	16,061	7,327	119,925
Office Furniture					4,329	2,941	3,400				10,670
Office Supplies											0
Office-Related Expenses		4,170	14,778	15,065	19,721	18,795	20,038	14,641	16,061	7,327	130,595
Webpage Email	393	480	578	180	354	192	522	728	2,345	1,525	7,295
Subscriptions						1	3,097	819	1,589	439	5,945
Video Meeting Services				158	167	148	154	161	173	184	1,145
Business Applications					249	249	441	383	120		1,442
Other Business Services		22				52			402	149	625
Operational Expenses	393	501	578	338	770	643	4,214	2,090	4,629	2,297	16,452
Client Entertainment							8,044	8,970	2,015	2,488	21,517
Internal Events							4,506	3,105		860	8,471
Business Travel							1,157	5,438			6,595
Client Expenses							13,707	17,514	2,015	3,348	36,584
Legal Fees		2,376	839	1,459		164		278			5,115
Accountant Fees		2,890	1,800	2,500	2,500	1,600	2,500	2,500	2,500	3,850	22,640
State/City Fees		75		169		319			278	282	1,122
Bank Service Fees			295	110	175	382	611	51	234	110	1,866
Wire Fees	225	240	290	100	60	65		425		50	1,455
Foreign Currency Charges					2	0	3	237	0	2	244
Advisory and Fees	225	5,581	3,224	4,338	2,737	2,529	3,114	3,388	3,012	4,294	32,443
Other Expenses			2,881	1,400			99				1,580
Error			706	1,139	1,316		681		643		844
Miscellaneous			2,175	261	1,316		780		643		736
Creditcard	4,755	2,395	8,102	4,015	6,120	14,340	8,441	2,127	1,099	12	51,382
Total Expenses	5,373	12,647	28,856	23,494	28,031	36,308	50,295	39,759	26,173	17,254	268,191

Nakano

Line item	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	Total
Office Rent		4,170	14,778	15,065	15,391	15,855	6,374				71,633
Office Furniture					4,329	2,941	3,400				10,670
Office Supplies											0
Office-Related Expenses		4,170	14,778	15,065	19,721	18,795	9,774				82,303
Webpage Email	393	480	578	180	354	192	522	678	2,345	1,525	7,246
Subscriptions						1	402	393	873	54	1,723
Video Meeting Services				158	167	148	154	161	173	184	1,145
Business Applications					249	249	336	278	120		1,232
Other Business Services		22				52					74
Operational Expenses	393	501	578	338	770	643	1,414	1,510	3,511	1,763	11,419
Client Entertainment							3,323				3,323
Internal Events							2,525	422			2,946
Business Travel								3,322			3,322
Client Expenses							799	3,743			2,944
Legal Fees		2,376	839	1,459		164		139			4,976
Accountant Fees		2,890	1,800	2,500	2,500	1,600	2,500				13,790
State/City Fees		75		169		319				144	706
Bank Service Fees			295	110	175	382	580	180	234	110	1,706
Wire Fees	225	240	290	100	60	65					980
Foreign Currency Charges					2	0	3	21	0	2	28
Advisory and Fees	225	5,581	3,224	4,338	2,737	2,529	3,083	20	234	255	22,187
Other Expenses			2,881	1,400							1,481
Error			706	1,139	1,316				213		1,096
Miscellaneous			2,175	261	1,316				213		384
Creditcard	4,755	2,395	8,102	4,015	6,120	14,340	8,441	2,127	1,099	12	51,382
Total Expenses	5,373	12,647	28,856	23,494	28,031	36,308	21,914	7,359	4,631	2,006	170,620

Centerpitch

Line item	2023	2024	2025	2026	Total
Office Rent	10,264	14,641	16,061	7,327	48,292
Office Furniture					0
Office Supplies					0
Office-Related Expenses	10,264	14,641	16,061	7,327	48,292
Webpage Email		50			50
Subscriptions	2,695	426	716	385	4,222
Video Meeting Services					0
Business Applications	105	105			210
Other Business Services			402	149	551
Operational Expenses	2,800	580	1,118	534	5,032
Client Entertainment	11,368	8,970	2,015	2,488	24,841
Internal Events	1,982	2,684		860	5,525
Business Travel	1,157	2,117			3,274
Client Expenses	14,506	13,771	2,015	3,348	33,640
Legal Fees		139			139
Accountant Fees		2,500	2,500	3,850	8,850
State/City Fees			278	139	416
Bank Service Fees	31	129			160
Wire Fees		425		50	475
Foreign Currency Charges		216			216
Advisory and Fees	31	3,408	2,778	4,039	10,256
Other Expenses	99				99
Error	681		429		252
Miscellaneous	780		429		351
Creditcard					0
Total Expenses	28,381	32,400	21,542	15,247	97,571

Sources: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Nakano_Portfolio_Data.xlsx · unmarked private deals carried at zero.