UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For The Quarterly Period Ended June 30, 2022

OR

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

Commission File Number: 814-00702

 

HERCULES CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland

 

74-3113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

 Identification Number)

 

400 Hamilton Ave., Suite 310

Palo Alto, California

(Address of Principal Executive Offices)

 

94301

(Zip Code)

 

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, par value $0.001 per share

HTGC

New York Stock Exchange

6.25% Notes due 2033

HCXY

New York Stock Exchange

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 periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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

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

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

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

 

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

On July 22, 2022, there were 127,238,854 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

3

 

Item 1.

 

 

Consolidated Financial Statements

 

3

 

 

 

Consolidated Statements of Assets and Liabilities as of June 30, 2022 (unaudited) and December 31, 2021

 

3

 

 

 

Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited)

 

4

 

 

 

Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2022 and 2021 (unaudited)

 

5

 

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)

 

6

 

 

 

Consolidated Schedule of Investments as of June 30, 2022 (unaudited)

 

7

 

 

 

Consolidated Schedule of Investments as of December 31, 2021

 

18

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

29

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

61

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

 

77

Item 4.

 

 

Controls and Procedures

 

78

 

PART II. OTHER INFORMATION

 

79

 

Item 1.

 

Legal Proceedings

 

79

Item 1A.

 

 

Risk Factors

 

79

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

80

Item 3.

 

Defaults Upon Senior Securities

 

80

Item 4.

 

 

Mine Safety Disclosures

 

80

Item 5.

 

 

Other Information

 

80

Item 6.

 

 

Exhibits and Financial Statement Schedules

 

81

 

SIGNATURES

 

86

 

 

 

 


 

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. its wholly owned subsidiaries, and its affiliated securitization trust unless the context otherwise requires.

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

June 30, 2022

 

 

December 31, 2021

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $2,667,854 and $2,293,398, respectively)

 

$

2,632,403

 

 

$

2,351,560

 

Control investments (cost of $87,228 and $84,039, respectively)

 

 

82,875

 

 

 

73,504

 

Affiliate investments (cost of $8,245 and $13,547, respectively)

 

 

3,613

 

 

 

9,458

 

Total investments, at fair value (cost of $2,763,327 and $2,390,984, respectively; amounts related to a VIE $234,170 and $0, respectively)

 

 

2,718,891

 

 

 

2,434,522

 

Cash and cash equivalents

 

 

115,309

 

 

 

133,115

 

Restricted cash (amounts related to a VIE $3,371 and $0, respectively)

 

 

3,371

 

 

 

3,150

 

Interest receivable

 

 

22,112

 

 

 

17,365

 

Right of use asset

 

 

6,349

 

 

 

6,761

 

Other assets

 

 

3,691

 

 

 

5,100

 

Total assets

 

$

2,869,723

 

 

$

2,600,013

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Debt (net of debt issuance costs - Note 5; amounts related to a VIE $147,663 and $0, respectively)

 

$

1,498,612

 

 

$

1,236,303

 

Accounts payable and accrued liabilities

 

 

36,711

 

 

 

47,781

 

Operating lease liability

 

 

6,660

 

 

 

7,382

 

Total liabilities

 

$

1,541,983

 

 

$

1,291,466

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

Common stock, par value

 

$

128

 

 

$

117

 

Capital in excess of par value

 

 

1,242,618

 

 

 

1,091,907

 

Total distributable earnings

 

 

84,994

 

 

 

216,523

 

Total net assets

 

$

1,327,740

 

 

$

1,308,547

 

Total liabilities and net assets

 

$

2,869,723

 

 

$

2,600,013

 

 

 

 

 

 

 

 

Shares of common stock outstanding ($0.001 par value and 200,000,000 authorized)

 

 

127,285

 

 

 

116,619

 

Net asset value per share

 

$

10.43

 

 

$

11.22

 

 

 

See notes to consolidated financial statements

 

3


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

$

67,511

 

 

$

60,276

 

 

$

127,601

 

 

$

123,258

 

Control investments

 

 

1,144

 

 

 

1,029

 

 

 

2,259

 

 

 

1,828

 

Affiliate investments

 

 

76

 

 

 

1

 

 

 

1,123

 

 

 

2

 

Total interest income

 

 

68,731

 

 

 

61,306

 

 

 

130,983

 

 

 

125,088

 

Fee income:

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

3,367

 

 

 

8,238

 

 

 

6,256

 

 

 

13,207

 

Control investments

 

 

17

 

 

 

15

 

 

 

33

 

 

 

23

 

Total fee income

 

 

3,384

 

 

 

8,253

 

 

 

6,289

 

 

 

13,230

 

Total investment income

 

 

72,115

 

 

 

69,559

 

 

 

137,272

 

 

 

138,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

12,698

 

 

 

14,490

 

 

 

24,345

 

 

 

29,240

 

Loan fees

 

 

1,492

 

 

 

2,220

 

 

 

3,334

 

 

 

5,020

 

General and administrative

 

 

4,322

 

 

 

4,068

 

 

 

8,140

 

 

 

7,664

 

Tax expenses

 

 

1,821

 

 

 

1,746

 

 

 

2,533

 

 

 

3,184

 

Employee compensation:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

11,060

 

 

 

8,349

 

 

 

19,389

 

 

 

18,153

 

Stock-based compensation

 

 

3,661

 

 

 

2,926

 

 

 

8,085

 

 

 

5,670

 

Total employee compensation

 

 

14,721

 

 

 

11,275

 

 

 

27,474

 

 

 

23,823

 

Total gross operating expenses

 

 

35,054

 

 

 

33,799

 

 

 

65,826

 

 

 

68,931

 

Expenses allocated to the Adviser Subsidiary

 

 

(3,070

)

 

 

(1,204

)

 

 

(4,472

)

 

 

(2,137

)

Total net operating expenses

 

 

31,984

 

 

 

32,595

 

 

 

61,354

 

 

 

66,794

 

Net investment income

 

 

40,131

 

 

 

36,964

 

 

 

75,918

 

 

 

71,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) and net change in unrealized appreciation (depreciation):

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

(2,133

)

 

 

47,861

 

 

 

(4,600

)

 

 

55,631

 

Affiliate investments

 

 

 

 

 

(62,143

)

 

 

3,772

 

 

 

(62,143

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

(3,686

)

 

 

 

Total net realized gain (loss)

 

 

(2,133

)

 

 

(14,282

)

 

 

(4,514

)

 

 

(6,512

)

Net change in unrealized appreciation (depreciation):

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

(51,749

)

 

 

3,075

 

 

 

(90,698

)

 

 

21,097

 

Control investments

 

 

4,728

 

 

 

(5,255

)

 

 

6,182

 

 

 

(3,553

)

Affiliate investments

 

 

(1,295

)

 

 

62,229

 

 

 

(542

)

 

 

64,338

 

Total net change in unrealized appreciation (depreciation)

 

 

(48,316

)

 

 

60,049

 

 

 

(85,058

)

 

 

81,882

 

Total net realized gain (loss) and net change in unrealized appreciation (depreciation)

 

 

(50,449

)

 

 

45,767

 

 

 

(89,572

)

 

 

75,370

 

Net increase (decrease) in net assets resulting from operations

 

$

(10,318

)

 

$

82,731

 

 

$

(13,654

)

 

$

146,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income before investment gains and losses per common share:

 

Basic

 

$

0.32

 

 

$

0.32

 

 

$

0.62

 

 

$

0.62

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.09

)

 

$

0.71

 

 

$

(0.12

)

 

$

1.27

 

Diluted

 

$

(0.09

)

 

$

0.65

 

 

$

(0.12

)

 

$

1.21

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

124,255

 

 

 

114,654

 

 

 

121,292

 

 

 

114,480

 

Diluted

 

 

124,255

 

 

 

129,572

 

 

 

121,292

 

 

 

122,188

 

Distributions paid per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.48

 

 

$

0.39

 

 

$

0.96

 

 

$

0.76

 

 

 

See notes to consolidated financial statements

 

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(amounts in thousands)

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2022

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2022

 

123,194

 

 

$

124

 

 

$

1,178,019

 

 

$

155,305

 

 

$

1,333,448

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(10,318

)

 

 

(10,318

)

Public offering, net of offering expenses

 

4,061

 

 

 

4

 

 

 

61,851

 

 

 

 

 

 

61,855

 

Issuance of common stock due to stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares from net issuance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under restricted stock plan

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(54

)

 

 

 

 

 

(894

)

 

 

 

 

 

(894

)

Distributions reinvested in common stock

 

61

 

 

 

 

 

 

921

 

 

 

 

 

 

921

 

Distributions

 

 

 

 

 

 

 

 

 

 

(59,993

)

 

 

(59,993

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,721

 

 

 

 

 

 

2,721

 

Balance as of June 30, 2022

 

127,285

 

 

$

128

 

 

$

1,242,618

 

 

$

84,994

 

 

$

1,327,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

$

116,619

 

 

$

117

 

 

$

1,091,907

 

 

$

216,523

 

 

$

1,308,547

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(13,654

)

 

 

(13,654

)

Public offering, net of offering expenses

 

8,921

 

 

 

9

 

 

 

147,095

 

 

 

 

 

 

147,104

 

Issuance of common stock due to stock option exercises

 

37

 

 

 

 

 

 

454

 

 

 

 

 

 

454

 

Retired shares from net issuance

 

(2

)

 

 

 

 

 

(32

)

 

 

 

 

 

(32

)

Issuance of common stock under restricted stock plan

 

788

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(180

)

 

 

 

 

 

(4,588

)

 

 

 

 

 

(4,588

)

Distributions reinvested in common stock

 

121

 

 

 

 

 

 

1,946

 

 

 

 

 

 

1,946

 

Issuance of common stock from conversion of 2022 Convertible Notes

 

981

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

(117,875

)

 

 

(117,875

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,838

 

 

 

 

 

 

5,838

 

Balance as of June 30, 2022

$

127,285

 

 

$

128

 

 

$

1,242,618

 

 

$

84,994

 

 

$

1,327,740

 

(1)
Stock-based compensation includes $36 thousand and $76 thousand of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2022, respectively.

(amounts in thousands)

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2021

 

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2021

 

 

115,768

 

 

$

116

 

 

$

1,160,519

 

 

$

154,759

 

 

$

1,315,394

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

82,731

 

 

 

82,731

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Issuance of common stock due to stock option exercises

 

 

41

 

 

 

 

 

 

888

 

 

 

 

 

 

888

 

Retired shares from net issuance

 

 

(12

)

 

 

 

 

 

(486

)

 

 

 

 

 

(486

)

Issuance of common stock under restricted stock plan

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(33

)

 

 

 

 

 

(725

)

 

 

 

 

 

(725

)

Distributions reinvested in common stock

 

 

67

 

 

 

 

 

 

1,070

 

 

 

 

 

 

1,070

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(45,158

)

 

 

(45,158

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

2,647

 

 

 

 

 

 

2,647

 

Balance as of June 30, 2021

 

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

 

114,726

 

 

$

115

 

 

$

1,158,198

 

 

$

133,391

 

 

$

1,291,704

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

146,894

 

 

 

146,894

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

 

(198

)

 

 

 

 

 

(198

)

Issuance of common stock due to stock option exercises

 

 

263

 

 

 

 

 

 

3,633

 

 

 

 

 

 

3,633

 

Retired shares from net issuance

 

 

(62

)

 

 

 

 

 

(1,089

)

 

 

 

 

 

(1,089

)

Issuance of common stock under restricted stock plan

 

 

960

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(154

)

 

 

 

 

 

(3,906

)

 

 

 

 

 

(3,906

)

Distributions reinvested in common stock

 

 

134

 

 

 

 

 

 

2,110

 

 

 

 

 

 

2,110

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(87,953

)

 

 

(87,953

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

5,163

 

 

 

 

 

 

5,163

 

Balance as of June 30, 2021

 

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

(1)
Stock-based compensation includes $25 thousand and $50 thousand of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2021, respectively.

See notes to consolidated financial statements

 

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(amounts in thousands)

For the Six Months Ended June 30,

 

 

2022

 

 

2021

 

Cash flows used in operating activities:

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

(13,654

)

 

$

146,894

 

Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided by (used in) operating activities:

 

 

 

 

 

Purchases of investments

 

(790,706

)

 

 

(629,146

)

Fundings assigned to Adviser Funds

 

189,806

 

 

 

75,286

 

Principal and fee repayments received and proceeds from the sale of debt investments

 

237,178

 

 

 

394,801

 

Proceeds from the sale of equity investments

 

7,749

 

 

 

70,596

 

Net unrealized (appreciation) depreciation

 

85,058

 

 

 

(81,882

)

Net realized (gain) loss on investments

 

828

 

 

 

6,512

 

Accretion of paid-in-kind principal

 

(9,943

)

 

 

(4,990

)

Accretion of loan discounts

 

(1,982

)

 

 

(1,789

)

Accretion of loan discount on convertible notes

 

112

 

 

 

336

 

Accretion of loan exit fees

 

(12,057

)

 

 

(11,372

)

Change in loan income, net of collections

 

7,119

 

 

 

14,846

 

Unearned fees related to unfunded commitments

 

1,819

 

 

 

(2,503

)

Realized loss on debt extinguishment

 

364

 

 

 

 

Amortization of debt issuance costs

 

2,570

 

 

 

3,840

 

Depreciation and amortization

 

110

 

 

 

187

 

Stock-based compensation and amortization of restricted stock grants (1)

 

5,838

 

 

 

5,163

 

Change in operating assets and liabilities:

 

 

 

 

 

Interest receivable

 

(4,768

)

 

 

14

 

Other assets

 

482

 

 

 

1,978

 

Accrued liabilities

 

(12,630

)

 

 

(956

)

Net cash provided by (used in) operating activities

 

(306,707

)

 

 

(12,185

)

 

 

 

 

 

 

Cash flows used in investing activities:

 

 

 

 

 

Purchases of capital equipment

 

(74

)

 

 

(12

)

Net cash used in investing activities

 

(74

)

 

 

(12

)

 

 

 

 

 

 

Cash flows provided by (used in) financing activities:

 

 

 

 

 

Issuance of common stock

 

148,721

 

 

 

 

Offering expenses

 

(1,617

)

 

 

(198

)

Retirement of employee shares, net

 

(4,166

)

 

 

(1,362

)

Distributions paid

 

(115,929

)

 

 

(85,843

)

Issuance of debt

 

1,124,237

 

 

 

590,495

 

Repayment of debt

 

(854,374

)

 

 

(700,658

)

Debt issuance costs

 

(6,076

)

 

 

(553

)

Fees paid for credit facilities and debentures

 

(1,600

)

 

 

(3,093

)

Net cash provided by (used in) financing activities

 

289,196

 

 

 

(201,212

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(17,585

)

 

 

(213,409

)

Cash, cash equivalents, and restricted cash at beginning of period

 

136,265

 

 

 

237,622

 

Cash, cash equivalents, and restricted cash at end of period

$

118,680

 

 

$

24,213

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information and non-cash investing and financing activities:

 

Interest paid

$

22,642

 

 

$

28,711

 

Income tax, including excise tax, paid

$

7,281

 

 

$

3,624

 

Distributions reinvested

$

1,946

 

 

$

2,110

 

(1)
Stock-based compensation includes $76 thousand and $50 thousand of restricted stock and option expense related to director compensation for the six months ended June 30, 2022 and 2021, respectively.

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:

 

For the Six Months Ended June 30,

 

(Dollars in thousands)

2022

 

 

2021

 

Cash and cash equivalents

$

115,309

 

 

$

18,447

 

Restricted cash

 

3,371

 

 

 

5,766

 

Total cash, cash equivalents, and restricted cash presented in the Consolidated Statements of Cash Flows

$

118,680

 

 

$

24,213

 

See “Note 2 – Summary of Significant Accounting Policies” for a description of restricted cash and cash equivalents.

See notes to consolidated financial statements

 

6


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aryaka Networks, Inc.

 

Senior Secured

July 2026

PRIME + 3.25% or Floor rate of 6.75%, PIK Interest 1.05%, 3.55% Exit Fee

 

$

5,000

 

 

$

4,921

 

 

$

4,921

 

 

(17)(19)

Cytracom Holdings LLC

 

Senior Secured

February 2025

3-month LIBOR + 9.31% or Floor rate of 10.31%

 

$

8,955

 

 

 

8,784

 

 

 

8,732

 

 

(11)(17)(18)

Rocket Lab Global Services, LLC

 

Senior Secured

June 2024

PRIME + 4.90% or Floor rate of 8.15%, PIK Interest 1.25%, 3.40% Exit Fee

 

$

84,046

 

 

 

84,334

 

 

 

86,602

 

 

(13)(14)(16)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

98,039

 

 

 

100,255

 

 

 

Subtotal: Communications & Networking (7.55%)*

 

 

 

 

 

 

98,039

 

 

 

100,255

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grove Collaborative, Inc.

 

Senior Secured

April 2025

PRIME + 5.50% or Floor rate of 8.75%, 8.75% Exit Fee

 

$

23,520

 

 

 

23,515

 

 

 

23,897

 

 

(19)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

23,515

 

 

 

23,897

 

 

 

Subtotal: Consumer & Business Products (1.80%)*

 

 

 

 

 

 

23,515

 

 

 

23,897

 

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC

 

Unsecured

September 2026

Interest rate FIXED 14.50%

 

$

15,000

 

 

 

14,687

 

 

 

13,434

 

 

(7)

 

 

Unsecured

September 2026

FIXED 11.50%

 

$

10,000

 

 

 

9,837

 

 

 

9,241

 

 

(7)

Total Gibraltar Business Capital, LLC

 

 

 

 

 

$

25,000

 

 

 

24,524

 

 

 

22,675

 

 

 

Hercules Adviser LLC

 

Unsecured

June 2025

FIXED 5.00%

 

$

12,000

 

 

 

12,000

 

 

 

12,000

 

 

(7)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

36,524

 

 

 

34,675

 

 

 

Subtotal: Diversified Financial Services (2.61%)*

 

 

 

 

 

 

36,524

 

 

 

34,675

 

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemocentryx, Inc.

 

Senior Secured

December 2022

PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee

 

$

18,951

 

 

 

20,132

 

 

 

20,132

 

 

(10)(13)

Nabriva Therapeutics

 

Senior Secured

June 2023

PRIME + 4.30% or Floor rate of 9.80%, 9.95% Exit Fee

 

$

4,051

 

 

 

4,636

 

 

 

4,636

 

 

(5)(10)(13)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

24,768

 

 

 

24,768

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Akero Therapeutics, Inc.

 

Senior Secured

January 2027

PRIME + 3.65% or Floor rate of 7.65%, 5.85% Exit Fee

 

$

5,000

 

 

 

4,946

 

 

 

4,946

 

 

(10)(17)

Albireo Pharma, Inc.

 

Senior Secured

July 2024

PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee

 

$

10,000

 

 

 

10,325

 

 

 

10,342

 

 

(10)(11)

Aldeyra Therapeutics, Inc.

 

Senior Secured

October 2023

PRIME + 3.10% or Floor rate of 8.60%, 6.95% Exit Fee

 

$

15,000

 

 

 

15,755

 

 

 

15,629

 

 

(11)

Applied Genetic Technologies Corporation

 

Senior Secured

April 2024

PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee

 

$

17,824

 

 

 

18,531

 

 

 

18,358

 

 

(13)

Aveo Pharmaceuticals, Inc.

 

Senior Secured

September 2024

PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee

 

$

40,000

 

 

 

41,235

 

 

 

41,013

 

 

(11)(15)

Axsome Therapeutics, Inc.

 

Senior Secured

October 2026

PRIME + 5.70% or Floor rate of 8.95%, 5.31% Exit Fee

 

$

81,725

 

 

 

81,147

 

 

 

80,292

 

 

(10)(12)(16)

Bicycle Therapeutics PLC

 

Senior Secured

October 2024

PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee

 

$

11,500

 

 

 

11,685

 

 

 

11,671

 

 

(5)(10)(11)(12)

BiomX, INC

 

Senior Secured

September 2025

PRIME + 5.70% or Floor rate of 8.95%, 6.55% Exit Fee

 

$

9,000

 

 

 

9,076

 

 

 

8,932

 

 

(5)(10)(11)

BridgeBio Pharma, Inc.

 

Senior Secured

November 2026

FIXED 9.00%, 2.00% Exit Fee

 

$

36,733

 

 

 

36,352

 

 

 

34,542

 

 

(13)(14)

Cellarity, Inc.

 

Senior Secured

June 2026

PRIME + 5.70% or Floor rate of 8.95%, 3.75% Exit Fee

 

$

30,000

 

 

 

29,628

 

 

 

29,469

 

 

(13)(15)

Century Therapeutics, Inc.

 

Senior Secured

April 2024

PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee

 

$

10,000

 

 

 

10,158

 

 

 

10,199

 

 

(11)

Chemocentryx, Inc.

 

Senior Secured

February 2025

PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee

 

$

5,000

 

 

 

5,196

 

 

 

5,039

 

 

(10)(13)

Codiak Biosciences, Inc.

 

Senior Secured

October 2025

PRIME + 5.00% or Floor rate of 8.25%, 5.50% Exit Fee

 

$

25,000

 

 

 

25,605

 

 

 

24,880

 

 

(11)

 

See notes to consolidated financial statements

 

7


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Corium, Inc.

 

Senior Secured

September 2026

PRIME + 5.70% or Floor rate of 8.95%, 7.75% Exit Fee

 

$

132,675

 

 

$

132,588

 

 

$

134,641

 

 

(13)(16)

Eloxx Pharmaceuticals, Inc.

 

Senior Secured

April 2025

PRIME + 6.25% or Floor rate of 9.50%, 6.55% Exit Fee

 

$

12,500

 

 

 

12,595

 

 

 

12,355

 

 

(15)

enGene, Inc.

 

Senior Secured

July 2025

PRIME + 5.00% or Floor rate of 8.25%, 6.35% Exit Fee

 

$

11,000

 

 

 

10,913

 

 

 

10,859

 

 

(5)(10)(13)

Finch Therapeutics Group, Inc.

 

Senior Secured

November 2026

PRIME + 4.05% or Floor rate of 7.55%, 5.50% Exit Fee

 

$

15,000

 

 

 

14,905

 

 

 

14,905

 

 

(17)

G1 Therapeutics, Inc.

 

Senior Secured

November 2026

PRIME + 5.90% or Floor rate of 9.15%, 9.86% Exit Fee

 

$

58,125

 

 

 

58,271

 

 

 

58,517

 

 

(11)(12)(15)(17)

Geron Corporation

 

Senior Secured

October 2024

PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee

 

$

18,500

 

 

 

18,894

 

 

 

18,896

 

 

(10)(12)(13)

Hibercell, Inc.

 

Senior Secured

May 2025

PRIME + 5.40% or Floor rate of 8.65%, 4.95% Exit Fee

 

$

17,000

 

 

 

17,175

 

 

 

17,067

 

 

(13)(15)

HilleVax, Inc.

 

Senior Secured

May 2027

PRIME + 1.05% or Floor rate of 4.55%, PIK Interest 2.85%, 7.15% Exit Fee

 

$

4,014

 

 

 

4,001

 

 

 

4,001

 

 

(14)(15)(17)

Humanigen, Inc.

 

Senior Secured

March 2025

PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee

 

$

20,000

 

 

 

20,433

 

 

 

19,989

 

 

(9)(10)

Kaleido Biosciences, Inc.

 

Senior Secured

January 2024

PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee

 

$

5,296

 

 

 

6,458

 

 

 

1,838

 

 

(8)

Locus Biosciences, Inc.

 

Senior Secured

July 2025

PRIME + 6.10% or Floor rate of 9.35%, 4.95% Exit Fee

 

$

8,000

 

 

 

8,047

 

 

 

7,979

 

 

(15)

Madrigal Pharmaceutical, Inc.

 

Senior Secured

May 2026

PRIME + 3.95% or Floor rate of 7.45%, 5.35% Exit Fee

 

$

34,000

 

 

 

33,668

 

 

 

33,668

 

 

(10)

Phathom Pharmaceuticals, Inc.

 

Senior Secured

October 2026

PRIME + 2.25% or Floor rate of 5.50%, PIK Interest 3.35%, 7.50% Exit Fee

 

$

93,217

 

 

 

92,866

 

 

 

91,496

 

 

(10)(12)(14)(15)(16)(17)(22)

Redshift Bioanalytics, Inc.

 

Senior Secured

April 2025

PRIME + 4.25% or Floor rate of 7.50%, 3.80% Exit Fee

 

$

1,500

 

 

 

1,480

 

 

 

1,480

 

 

(15)(17)

Scynexis, Inc.

 

Senior Secured

March 2025

PRIME + 5.80% or Floor rate of 9.05%, 3.95% Exit Fee

 

$

18,667

 

 

 

18,512

 

 

 

18,353

 

 

(12)(13)

Seres Therapeutics, Inc.

 

Senior Secured

October 2024

PRIME + 6.40% or Floor rate of 9.65%, 4.98% Exit Fee

 

$

37,500

 

 

 

38,383

 

 

 

38,476

 

 

(12)(13)

Syndax Pharmaceutics Inc.

 

Senior Secured

April 2024

PRIME + 6.00% or Floor rate of 9.25%, 4.99% Exit Fee

 

$

20,000

 

 

 

20,745

 

 

 

20,782

 

 

(12)(17)

Tarsus Pharmaceuticals, Inc.

 

Senior Secured

February 2027

PRIME + 5.20% or Floor rate of 8.45%, 4.75% Exit Fee

 

$

8,250

 

 

 

8,237

 

 

 

8,237

 

 

(10)(13)(17)

TG Therapeutics, Inc.

 

Senior Secured

January 2026

PRIME + 2.15% or Floor rate of 5.40%, PIK Interest 3.45%, 5.95% Exit Fee

 

$

47,150

 

 

 

46,650

 

 

 

46,326

 

 

(10)(12)(14)

uniQure B.V.

 

Senior Secured

December 2025

PRIME + 4.70% or Floor rate of 7.95%, 7.28% Exit Fee

 

$

70,000

 

 

 

71,697

 

 

 

72,721

 

 

(5)(10)(11)(12)(16)

Unity Biotechnology, Inc.

 

Senior Secured

August 2024

PRIME + 6.10% or Floor rate of 9.35%, 6.25% Exit Fee

 

$

20,000

 

 

 

20,897

 

 

 

20,889

 

 

(13)

Valo Health, LLC

 

Senior Secured

May 2024

PRIME + 6.45% or Floor rate of 9.70%, 3.85% Exit Fee

 

$

11,021

 

 

 

11,187

 

 

 

11,122

 

 

(11)(13)

Viridian Therapeutics, Inc.

 

Senior Secured

October 2026

PRIME + 4.20% or Floor rate of 7.45%, 4.76% Exit Fee

 

$

2,000

 

 

 

1,997

 

 

 

1,997

 

 

(10)(13)(17)

X4 Pharmaceuticals, Inc.

 

Senior Secured

July 2024

PRIME + 3.75% or Floor rate of 8.75%, 8.80% Exit Fee

 

$

32,500

 

 

 

33,240

 

 

 

32,991

 

 

(11)(12)(13)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

1,003,478

 

 

 

994,897

 

 

 

Subtotal: Drug Discovery & Development (76.80%)*

 

 

 

 

 

 

1,028,246

 

 

 

1,019,665

 

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Better Therapeutics, Inc.

 

Senior Secured

August 2025

PRIME + 5.70% or Floor rate of 8.95%, 5.95% Exit Fee

 

$

12,000

 

 

 

12,024

 

 

 

11,938

 

 

(15)

Blue Sprig Pediatrics, Inc.

 

Senior Secured

November 2026

1-month LIBOR + 5.00% or Floor rate of 6.00%, PIK Interest 4.45%

 

$

25,590

 

 

 

25,249

 

 

 

24,805

 

 

(13)(14)(17)

Carbon Health Technologies, Inc.

 

Senior Secured

March 2025

PRIME + 5.60% or Floor rate of 8.85%, 4.61% Exit Fee

 

$

46,125

 

 

 

46,219

 

 

 

45,378

 

 

(12)(17)(19)

Equality Health, LLC

 

Senior Secured

February 2026

PRIME + 6.25% or Floor rate of 9.50%, PIK Interest 1.55%

 

$

44,473

 

 

 

44,076

 

 

 

43,978

 

 

(12)(14)(17)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

127,568

 

 

 

126,099

 

 

 

Subtotal: Healthcare Services, Other (9.50%)*

 

 

 

 

 

 

127,568

 

 

 

126,099

 

 

 

 

See notes to consolidated financial statements

 

8


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capella Space Corp.

 

Senior Secured

November 2024

PRIME + 5.00% or Floor rate of 8.25%, PIK Interest 1.10%, 7.00% Exit Fee

 

$

20,137

 

 

$

20,079

 

 

$

19,870

 

 

(14)(15)(19)

Signal Media Limited

 

Senior Secured

June 2025

PRIME + 5.50% or Floor rate of 9.00%, 3.45% Exit Fee

 

$

750

 

 

 

736

 

 

 

736

 

 

(5)(10)(17)

Yipit, LLC

 

Senior Secured

September 2026

1-month LIBOR + 9.08% or Floor rate of 10.08%

 

$

31,875

 

 

 

31,318

 

 

 

30,575

 

 

(17)(18)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

52,133

 

 

 

51,181

 

 

 

Subtotal: Information Services (3.85%)*

 

 

 

 

 

 

52,133

 

 

 

51,181

 

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SeatGeek, Inc.

 

Senior Secured

June 2023

PRIME + 5.00% or Floor rate of 10.50%, PIK Interest 0.50%

 

$

60,761

 

 

 

60,343

 

 

 

60,343

 

 

(12)(13)(14)(16)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

60,343

 

 

 

60,343

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AppDirect, Inc.

 

Senior Secured

April 2026

PRIME + 5.50% or Floor rate of 8.75%, 9.70% Exit Fee

 

$

30,790

 

 

 

31,589

 

 

 

31,560

 

 

(12)(17)

Carwow LTD

 

Senior Secured

December 2024

PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.45%, 4.95% Exit Fee

 

£

18,728

 

 

 

25,671

 

 

 

22,672

 

 

(5)(10)(14)

Convoy, Inc.

 

Senior Secured

March 2026

PRIME + 3.20% or Floor rate of 6.45%, PIK Interest 1.95%, 4.55% Exit Fee

 

$

73,258

 

 

 

71,826

 

 

 

71,826

 

 

(14)(16)(19)

Jobandtalent USA, Inc.

 

Senior Secured

February 2025

1-month SOFR + 8.75% or Floor rate of 9.75%, 3.00% Exit Fee

 

$

14,000

 

 

 

13,746

 

 

 

13,746

 

 

(5)(10)

Nextroll, Inc.

 

Senior Secured

July 2023

PRIME + 3.75% or Floor rate of 7.75%, PIK Interest 2.95%, 1.95% Exit Fee

 

$

21,933

 

 

 

21,933

 

 

 

21,933

 

 

(12)(19)

Rhino Labs, Inc.

 

Senior Secured

March 2024

PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 2.25%

 

$

16,313

 

 

 

16,034

 

 

 

16,131

 

 

(14)(15)

RVShare, LLC

 

Senior Secured

December 2026

1-month LIBOR + 5.50% or Floor rate of 6.50%, PIK Interest 4.00%

 

$

18,302

 

 

 

17,973

 

 

 

17,771

 

 

(13)(14)(15)(17)

SeatGeek, Inc.

 

Senior Secured

May 2026

PRIME + 7.00% or Floor rate of 9.75%, PIK Interest 0.50%

 

$

25,009

 

 

 

24,827

 

 

 

25,183

 

 

(12)(13)(14)(16)

Skyword, Inc.

 

Senior Secured

September 2024

PRIME + 3.88% or Floor rate of 9.38%, PIK Interest 1.90%, 4.00% Exit Fee

 

$

12,546

 

 

 

12,836

 

 

 

12,693

 

 

(14)

Tectura Corporation

 

Senior Secured

July 2024

PIK Interest 5.00%

 

$

10,680

 

 

 

240

 

 

 

 

 

(7)(8)(14)

 

 

Senior Secured

July 2024

FIXED 8.25%

 

$

8,250

 

 

 

8,250

 

 

 

8,208

 

 

(7)

 

 

Senior Secured

July 2024

PIK Interest 5.00%

 

$

13,023

 

 

 

13,023

 

 

 

 

 

(7)(8)(14)

Total Tectura Corporation

 

 

 

 

 

$

31,953

 

 

 

21,513

 

 

 

8,208

 

 

 

Thumbtack, Inc.

 

Senior Secured

April 2026

PRIME + 4.95% or Floor rate of 8.20%, PIK Interest 1.50%, 3.95% Exit Fee

 

$

10,027

 

 

 

9,921

 

 

 

9,921

 

 

(12)(14)(17)

Veem, Inc.

 

Senior Secured

March 2025

PRIME + 4.00% or Floor rate of 7.25%, PIK Interest 1.25%, 4.50% Exit Fee

 

$

5,011

 

 

 

4,917

 

 

 

4,917

 

 

(13)(14)

 

 

Senior Secured

March 2025

PRIME + 4.50% or Floor rate of 7.95%, PIK Interest 1.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

4,883

 

 

 

4,883

 

 

 

Total Veem, Inc.

 

 

 

 

 

$

10,011

 

 

 

9,800

 

 

 

9,800

 

 

 

Worldremit Group Limited

 

Senior Secured

February 2025

3-month LIBOR + 9.25% or Floor rate of 10.25%, 3.00% Exit Fee

 

$

94,500

 

 

 

93,829

 

 

 

92,081

 

 

(5)(10)(12)(16)(19)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

371,498

 

 

 

353,525

 

 

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Houzz, Inc.

 

Convertible Debt

May 2028

PIK Interest 5.50%

 

$

21,252

 

 

 

21,252

 

 

 

19,552

 

 

(9)(14)

Subtotal: Greater than 5 Years Maturity

 

 

 

 

 

 

21,252

 

 

 

19,552

 

 

 

Subtotal: Internet Consumer & Business Services (32.64%)*

 

 

 

 

 

 

453,093

 

 

 

433,420

 

 

 

Manufacturing Technology

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bright Machines, Inc.

 

Senior Secured

November 2022

PRIME + 5.70% or Floor rate of 8.95%, 6.95% Exit Fee

 

$

15,000

 

 

 

15,509

 

 

 

15,509

 

 

(11)(19)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

15,509

 

 

 

15,509

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MacroFab, Inc.

 

Senior Secured

March 2026

PRIME + 4.35% or Floor rate of 7.60%, PIK Interest 1.25%, 4.50% Exit Fee

 

$

17,029

 

 

 

16,470

 

 

 

16,487

 

 

(12)(14)

Ouster, Inc.

 

Senior Secured

May 2026

PRIME + 6.15% or Floor rate of 9.40%, 7.45% Exit Fee

 

$

7,000

 

 

 

6,948

 

 

 

6,948

 

 

(10)(13)(17)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

23,418

 

 

 

23,435

 

 

 

Subtotal: Manufacturing Technology (2.93%)*

 

 

 

 

 

 

38,927

 

 

 

38,944

 

 

 

 

 

See notes to consolidated financial statements

 

9


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lucira Health, Inc.

 

Senior Secured

February 2026

PRIME + 5.50% or Floor rate of 8.75%, 5.25% Exit Fee

 

$

15,000

 

 

$

14,865

 

 

$

14,865

 

 

(13)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

14,865

 

 

 

14,865

 

 

 

Subtotal: Medical Devices & Equipment (1.12%)*

 

 

 

 

 

 

14,865

 

 

 

14,865

 

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fungible, Inc.

 

Senior Secured

December 2024

PRIME + 5.00% or Floor rate of 8.25%, 4.95% Exit Fee

 

$

20,000

 

 

 

19,348

 

 

 

19,363

 

 

(15)(19)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

19,348

 

 

 

19,363

 

 

 

Subtotal: Semiconductors (1.46%)*

 

 

 

 

 

 

19,348

 

 

 

19,363

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delphix Corp.

 

Senior Secured

February 2023

PRIME + 5.50% or Floor rate of 10.25%, 7.00% Exit Fee

 

$

60,000

 

 

 

62,749

 

 

 

64,200

 

 

(12)(16)(19)

Khoros (p.k.a Lithium Technologies)

 

Senior Secured

October 2022

6-month LIBOR + 8.00% or Floor rate of 9.00%

 

$

56,208

 

 

 

56,076

 

 

 

56,076

 

 

(17)

Pymetrics, Inc.

 

Senior Secured

October 2022

Interest Rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.75%, 4.00% Exit Fee

 

$

9,191

 

 

 

9,518

 

 

 

9,518

 

 

(14)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

128,343

 

 

 

129,794

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3GTMS, LLC

 

Senior Secured

February 2025

3-month LIBOR + 9.28% or Floor rate of 10.28%

 

$

10,833

 

 

 

10,671

 

 

 

10,567

 

 

(17)(18)

Agilence, Inc.

 

Senior Secured

October 2026

1-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

9,353

 

 

 

9,112

 

 

 

8,914

 

 

(12)(17)

Annex Cloud

 

Senior Secured

February 2027

BSBY + 9.00% or Floor rate of 10.00%

 

$

8,500

 

 

 

8,272

 

 

 

8,272

 

 

(13)(17)

Brain Corporation

 

Senior Secured

April 2025

PRIME + 3.70% or Floor rate of 6.95%, PIK Interest 1.00%, 3.95% Exit Fee

 

$

15,078

 

 

 

15,052

 

 

 

14,981

 

 

(13)(14)(15)(17)

Campaign Monitor Limited

 

Senior Secured

November 2025

3-month LIBOR + 8.90% or Floor rate of 9.90%

 

$

33,000

 

 

 

32,518

 

 

 

33,000

 

 

(13)(19)

Catchpoint Systems, Inc.

 

Senior Secured

June 2026

1-month SOFR + 8.75% or Floor rate of 9.75%

 

$

10,200

 

 

 

10,025

 

 

 

10,025

 

 

(17)(18)

Ceros, Inc.

 

Senior Secured

September 2026

6-month LIBOR + 8.89% or Floor rate of 9.89%

 

$

17,978

 

 

 

17,518

 

 

 

17,146

 

 

(17)(18)

CloudBolt Software, Inc.

 

Senior Secured

October 2024

PRIME + 6.70% or Floor rate of 9.95%, 3.45% Exit Fee

 

$

10,000

 

 

 

9,961

 

 

 

9,938

 

 

(11)(12)(19)

Copper CRM, Inc

 

Senior Secured

March 2025

PRIME + 4.50% or Floor rate of 8.25%, PIK Interest 1.95%, 4.50% Exit Fee

 

$

10,044

 

 

 

9,967

 

 

 

9,846

 

 

(13)(14)

Cybermaxx Intermediate Holdings, Inc.

 

Senior Secured

August 2026

6-month LIBOR + 9.28% or Floor rate of 10.28%

 

$

8,000

 

 

 

7,819

 

 

 

7,951

 

 

(13)(17)

Dashlane, Inc.

 

Senior Secured

July 2025

PRIME + 3.05% or Floor rate of 7.55%, PIK Interest 1.10%, 4.95% Exit Fee

 

$

31,761

 

 

 

32,041

 

 

 

31,972

 

 

(11)(13)(14)(17)(19)

Demandbase, Inc.

 

Senior Secured

August 2025

PRIME + 2.25% or Floor rate of 5.50%, PIK Interest 3.00%, 3.51% Exit Fee

 

$

28,125

 

 

 

27,707

 

 

 

27,595

 

 

(13)(17)(19)

Eigen Technologies Ltd.

 

Senior Secured

April 2025

PRIME + 5.10% or Floor rate of 8.35%, 2.95% Exit Fee

 

$

1,800

 

 

 

1,789

 

 

 

1,789

 

 

(5)(10)(13)(17)

Enmark Systems, Inc.

 

Senior Secured

September 2026

6-month LIBOR + 6.83% or Floor rate of 7.83%, PIK Interest 2.19%

 

$

8,088

 

 

 

7,902

 

 

 

7,836

 

 

(11)(14)(17)(18)

Esentire, Inc.

 

Senior Secured

May 2024

3-month LIBOR + 9.96% or Floor rate of 10.96%

 

$

8,500

 

 

 

8,400

 

 

 

8,386

 

 

(5)(10)(11)(18)

Esme Learning Solutions, Inc.

 

Senior Secured

February 2025

PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.50%, 3.00% Exit Fee

 

$

5,026

 

 

 

4,832

 

 

 

4,768

 

 

(14)

Gryphon Networks Corp.

 

Senior Secured

January 2026

3-month LIBOR + 9.69% or Floor rate of 10.69%

 

$

5,232

 

 

 

5,118

 

 

 

5,030

 

 

(11)(17)

Ikon Science Limited

 

Senior Secured

October 2024

3-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

6,738

 

 

 

6,577

 

 

 

6,594

 

 

(5)(10)(17)(18)

 

See notes to consolidated financial statements

 

10


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Imperva, Inc.

 

Senior Secured

January 2027

3-month LIBOR + 7.75% or Floor rate of 8.75%

 

$

20,000

 

 

$

19,863

 

 

$

19,482

 

 

(19)

Kazoo, Inc. (p.k.a. YouEarnedIt, Inc.)

 

Senior Secured

July 2023

3-month SOFR + 10.15% or Floor rate of 11.15%

 

$

10,888

 

 

 

10,719

 

 

 

10,698

 

 

(18)

Logicworks

 

Senior Secured

January 2024

PRIME + 7.50% or Floor rate of 10.75%

 

$

14,500

 

 

 

14,348

 

 

 

14,330

 

 

(12)

Mixpanel, Inc.

 

Senior Secured

August 2024

PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.80%, 3.00% Exit Fee

 

$

20,618

 

 

 

20,598

 

 

 

21,394

 

 

(12)(14)(19)

Mobile Solutions Services

 

Senior Secured

December 2025

6-month LIBOR + 9.87% or Floor rate of 10.87%

 

$

5,500

 

 

 

5,367

 

 

 

5,342

 

 

(17)(18)

 

 

Senior Secured

December 2025

6-month LIBOR + 9.06% or Floor rate of 10.06%

 

$

12,168

 

 

 

11,892

 

 

 

11,803

 

 

(17)(18)

Total Mobile Solutions Services

 

 

 

 

 

$

17,668

 

 

 

17,259

 

 

 

17,145

 

 

 

Nuvolo Technologies Corporation

 

Senior Secured

July 2025

PRIME + 5.25% or Floor rate of 8.25%, 2.04% Exit Fee

 

$

17,500

 

 

 

17,489

 

 

 

17,504

 

 

(12)(13)(17)(19)

Pollen, Inc.

 

Senior Secured

November 2023

PRIME + 4.75% or Floor rate of 8.00%, PIK Interest 0.50%, 4.50% Exit Fee

 

$

7,476

 

 

 

7,613

 

 

 

7,489

 

 

(14)

 

 

Senior Secured

November 2023

PRIME + 5.25% or Floor rate of 8.50%, PIK Interest 1.35%, 4.50% Exit Fee

 

$

13,130

 

 

 

13,247

 

 

 

13,380

 

 

(14)(15)

Total Pollen, Inc.

 

 

 

 

 

$

20,606

 

 

 

20,860

 

 

 

20,869

 

 

 

Riviera Partners LLC

 

Senior Secured

April 2027

3-month SOFR + 7.53% or Floor rate of 8.53%

 

$

26,250

 

 

 

25,635

 

 

 

25,635

 

 

(17)(18)

ShadowDragon, LLC

 

Senior Secured

December 2026

3-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

6,000

 

 

 

5,842

 

 

 

5,780

 

 

(17)(18)

Tact.ai Technologies, Inc.

 

Senior Secured

February 2024

PRIME + 4.00% or Floor rate of 8.75%, PIK Interest 2.00%, 5.50% Exit Fee

 

$

5,238

 

 

 

5,414

 

 

 

5,314

 

 

(14)

ThreatConnect, Inc.

 

Senior Secured

May 2026

3-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

11,088

 

 

 

10,803

 

 

 

10,755

 

 

(12)(17)(18)

Udacity, Inc.

 

Senior Secured

September 2024

PRIME + 4.50% or Floor rate of 7.75%, PIK Interest 2.00%, 3.00% Exit Fee

 

$

51,412

 

 

 

51,440

 

 

 

52,103

 

 

(12)(14)

VideoAmp, Inc.

 

Senior Secured

February 2025

PRIME + 3.70% or Floor rate of 6.95%, PIK Interest 1.25%, 5.25% Exit Fee

 

$

62,787

 

 

 

61,482

 

 

 

61,482

 

 

(13)(14)(15)(19)

Zimperium, Inc.

 

Senior Secured

May 2027

3-month SOFR + 8.95% or Floor rate of 9.95%

 

$

16,313

 

 

 

15,960

 

 

 

15,960

 

 

(17)(18)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

522,993

 

 

 

523,061

 

 

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alchemer LLC

 

Senior Secured

May 2028

3-month SOFR + 7.89% or Floor rate of 8.89%

 

$

15,125

 

 

 

14,767

 

 

 

14,767

 

 

(17)(18)

Dispatch Technologies, Inc.

 

Senior Secured

April 2028

3-month SOFR + 8.01% or Floor rate of 8.76%

 

$

7,500

 

 

 

7,281

 

 

 

7,281

 

 

(17)(18)

Subtotal: Greater than 5 Years Maturity

 

 

 

 

 

 

22,048

 

 

 

22,048

 

 

 

Subtotal: Software (50.83%)*

 

 

 

 

 

 

673,384

 

 

 

674,903

 

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc.

 

Senior Secured

July 2022

PRIME + 3.95% or Floor rate of 8.95%, 9.00% Exit Fee

 

$

2,265

 

 

 

6,764

 

 

 

6,764

 

 

(12)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

6,764

 

 

 

6,764

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ampion, PBC.

 

Senior Secured

May 2025

PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.45%, 3.95% Exit Fee

 

$

4,008

 

 

 

3,919

 

 

 

3,895

 

 

(13)(14)

Pineapple Energy LLC

 

Senior Secured

December 2024

PIK Interest 10.00%

 

$

3,078

 

 

 

3,078

 

 

 

2,940

 

 

(6)(14)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

6,997

 

 

 

6,835

 

 

 

Subtotal: Sustainable and Renewable Technology (1.02%)*

 

 

 

 

 

 

13,761

 

 

 

13,599

 

 

 

Total: Debt Investments (192.12%)*

 

 

 

 

 

$

2,579,403

 

 

$

2,550,866

 

 

 

 

See notes to consolidated financial statements

 

11


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

Portfolio Company

 

Type of
Investment

Acquisition Date (4)

Series (3)

 

Shares

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

Equity

10/21/2020

Common Stock

 

 

3,328

 

 

$

 

 

$

18

 

 

 

 

 

Equity

4/11/2008

Preferred Series A

 

 

1,135,000

 

 

 

1,230

 

 

 

6,233

 

 

 

Total Peerless Network Holdings, Inc.

 

 

 

 

 

 

1,138,328

 

 

 

1,230

 

 

 

6,251

 

 

 

Subtotal: Communications & Networking (0.47%)*

 

 

 

 

 

1,230

 

 

 

6,251

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grove Collaborative, Inc.

 

Equity

4/30/2021

Common Stock

 

 

61,300

 

 

 

433

 

 

 

221

 

 

(4)(20)

TechStyle, Inc.

 

Equity

4/30/2010

Common Stock

 

 

42,989

 

 

 

128

 

 

 

126

 

 

 

Subtotal: Consumer & Business Products (0.03%)*

 

 

 

 

 

561

 

 

 

347

 

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC

 

Equity

3/1/2018

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

974

 

 

(7)

 

 

Equity

3/1/2018

Preferred Series A

 

 

10,602,752

 

 

 

26,122

 

 

 

15,415

 

 

(7)

Total Gibraltar Business Capital, LLC

 

 

 

 

 

 

11,432,752

 

 

 

28,006

 

 

 

16,389

 

 

 

Hercules Adviser LLC

 

Equity

3/26/2021

Member Units

 

 

1

 

 

 

35

 

 

 

23,181

 

 

(7)

Newfront Insurance Holdings, Inc.

 

Equity

9/30/2021

Preferred Series D-2

 

 

210,282

 

 

 

403

 

 

 

467

 

 

 

Subtotal: Diversified Financial Services (3.02%)*

 

 

 

 

 

28,444

 

 

 

40,037

 

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.

 

Equity

12/10/2018

Common Stock

 

 

176,730

 

 

 

1,329

 

 

 

43

 

 

(4)

Aytu BioScience, Inc.

 

Equity

3/28/2014

Common Stock

 

 

13,600

 

 

 

1,500

 

 

 

10

 

 

(4)

BioQ Pharma Incorporated

 

Equity

12/8/2015

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

36

 

 

 

PDS Biotechnology Corporation

 

Equity

4/6/2015

Common Stock

 

 

2,498

 

 

 

309

 

 

 

9

 

 

(4)

Subtotal: Drug Delivery (0.01%)*

 

 

 

 

 

3,638

 

 

 

98

 

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albireo Pharma, Inc.

 

Equity

9/14/2020

Common Stock

 

 

25,000

 

 

 

1,000

 

 

 

497

 

 

(4)(10)

Applied Molecular Transport

 

Equity

4/6/2021

Common Stock

 

 

1,000

 

 

 

42

 

 

 

3

 

 

(4)(10)

Avalo Therapeutics, Inc.

 

Equity

8/19/2014

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

60

 

 

(4)

Aveo Pharmaceuticals, Inc.

 

Equity

7/31/2011

Common Stock

 

 

190,179

 

 

 

1,715

 

 

 

1,248

 

 

(4)

Axsome Therapeutics, Inc.

 

Equity

5/9/2022

Common Stock

 

 

127,021

 

 

 

4,165

 

 

 

3,992

 

 

(4)(10)(16)(20)

Bicycle Therapeutics PLC

 

Equity

10/5/2020

Common Stock

 

 

98,100

 

 

 

1,871

 

 

 

1,646

 

 

(4)(5)(10)

BridgeBio Pharma, Inc.

 

Equity

6/21/2018

Common Stock

 

 

231,329

 

 

 

2,255

 

 

 

2,100

 

 

(4)

Chemocentryx, Inc.

 

Equity

6/15/2020

Common Stock

 

 

17,241

 

 

 

1,000

 

 

 

427

 

 

(4)(10)

Concert Pharmaceuticals, Inc.

 

Equity

2/13/2019

Common Stock

 

 

70,796

 

 

 

1,367

 

 

 

298

 

 

(4)(10)

Dare Biosciences, Inc.

 

Equity

1/8/2015

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

17

 

 

(4)

Dynavax Technologies

 

Equity

7/22/2015

Common Stock

 

 

20,000

 

 

 

550

 

 

 

252

 

 

(4)(10)

Hibercell, Inc.

 

Equity

5/7/2021

Preferred Series B

 

 

3,466,840

 

 

 

4,250

 

 

 

3,159

 

 

(15)

HilleVax, Inc.

 

Equity

5/3/2022

Common Stock

 

 

235,295

 

 

 

4,000

 

 

 

2,572

 

 

(4)

Humanigen, Inc.

 

Equity

3/31/2021

Common Stock

 

 

43,243

 

 

 

800

 

 

 

76

 

 

(4)(10)

Kaleido Biosciences, Inc.

 

Equity

2/10/2021

Common Stock

 

 

86,585

 

 

 

1,000

 

 

 

 

 

(4)

NorthSea Therapeutics

 

Equity

12/15/2021

Preferred Series C

 

 

983

 

 

 

2,000

 

 

 

1,539

 

 

(5)(10)

Paratek Pharmaceuticals, Inc.

 

Equity

2/26/2007

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

147

 

 

(4)

Rocket Pharmaceuticals, Ltd.

 

Equity

8/22/2007

Common Stock

 

 

944

 

 

 

1,500

 

 

 

13

 

 

(4)

Savara, Inc.

 

Equity

8/11/2015

Common Stock

 

 

11,119

 

 

 

203

 

 

 

17

 

 

(4)

Sio Gene Therapies, Inc.

 

Equity

2/2/2017

Common Stock

 

 

16,228

 

 

 

1,269

 

 

 

6

 

 

(4)

Tarsus Pharmaceuticals, Inc.

 

Equity

5/5/2022

Common Stock

 

 

155,555

 

 

 

2,100

 

 

 

2,271

 

 

(4)(10)

Tricida, Inc.

 

Equity

2/28/2018

Common Stock

 

 

68,816

 

 

 

863

 

 

 

666

 

 

(4)

uniQure B.V.

 

Equity

1/31/2019

Common Stock

 

 

17,175

 

 

 

332

 

 

 

320

 

 

(4)(5)(10)(16)

Valo Health, LLC

 

Equity

12/11/2020

Preferred Series B

 

 

510,308

 

 

 

3,000

 

 

 

4,172

 

 

 

X4 Pharmaceuticals, Inc.

 

Equity

11/26/2019

Common Stock

 

 

198,277

 

 

 

1,641

 

 

 

191

 

 

(4)

Subtotal: Drug Discovery & Development (1.93%)*

 

 

 

 

 

41,667

 

 

 

25,689

 

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Skydio, Inc.

 

Equity

3/8/2022

Preferred Series E

 

 

248,900

 

 

 

1,500

 

 

 

1,207

 

 

 

Subtotal: Electronics & Computer Hardware (0.09%)*

 

 

 

 

 

1,500

 

 

 

1,207

 

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23andMe, Inc.

 

Equity

3/11/2019

Common Stock

 

 

825,732

 

 

 

5,094

 

 

 

2,048

 

 

(4)

Carbon Health Technologies, Inc.

 

Equity

3/30/2021

Preferred Series C

 

 

217,880

 

 

 

1,687

 

 

 

1,166

 

 

 

Subtotal: Healthcare Services, Other (0.24%)*

 

 

 

 

 

6,781

 

 

 

3,214

 

 

 

 

See notes to consolidated financial statements

 

12


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Acquisition Date (4)

Series (3)

 

Shares

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Planet Labs, Inc.

 

Equity

6/21/2019

Common Stock

 

 

547,880

 

 

$

615

 

 

$

2,373

 

 

(4)

Yipit, LLC

 

Equity

12/30/2021

Preferred Series E

 

 

41,021

 

 

 

3,825

 

 

 

2,235

 

 

 

Zeta Global Corp.

 

Equity

11/20/2007

Common Stock

 

 

295,861

 

 

 

 

 

 

1,337

 

 

(4)

Subtotal: Information Services (0.45%)*

 

 

 

 

 

4,440

 

 

 

5,945

 

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Crow AI, Inc. affiliates

 

Equity

3/24/2021

Preferred Note

 

 

3

 

 

 

3,000

 

 

 

3,000

 

 

(21)

Carwow LTD

 

Equity

12/15/2021

Preferred Series D-4

 

 

199,742

 

 

 

1,151

 

 

 

395

 

 

(5)(10)

Contentful Global, Inc.

 

Equity

12/22/2020

Preferred Series C

 

 

41,000

 

 

 

138

 

 

 

282

 

 

(5)(10)

 

 

Equity

11/20/2018

Preferred Series D

 

 

108,500

 

 

 

500

 

 

 

800

 

 

(5)(10)

Total Contentful Global, Inc.

 

 

 

 

 

 

149,500

 

 

 

638

 

 

 

1,082

 

 

 

DoorDash, Inc.

 

Equity

12/20/2018

Common Stock

 

 

81,996

 

 

 

945

 

 

 

5,262

 

 

(4)

Lyft, Inc.

 

Equity

12/26/2018

Common Stock

 

 

100,738

 

 

 

5,263

 

 

 

1,338

 

 

(4)

Nerdy Inc.

 

Equity

9/17/2021

Common Stock

 

 

100,000

 

 

 

1,000

 

 

 

198

 

 

(4)(20)

Nextdoor.com, Inc.

 

Equity

8/1/2018

Common Stock

 

 

1,019,255

 

 

 

4,854

 

 

 

3,374

 

 

(4)

OfferUp, Inc.

 

Equity

10/25/2016

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

457

 

 

 

 

 

Equity

10/25/2016

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

174

 

 

 

Total OfferUp, Inc.

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

631

 

 

 

Oportun

 

Equity

6/28/2013

Common Stock

 

 

48,365

 

 

 

577

 

 

 

400

 

 

(4)

Reischling Press, Inc.

 

Equity

7/31/2020

Common Stock

 

 

1,163

 

 

 

15

 

 

 

 

 

 

Rhino Labs, Inc.

 

Equity

1/24/2022

Preferred Series B-2

 

 

7,063

 

 

 

1,000

 

 

 

954

 

 

 

Savage X Holding, LLC

 

Equity

4/30/2010

Class A Units

 

 

42,137

 

 

 

13

 

 

 

213

 

 

 

Tectura Corporation

 

Equity

5/23/2018

Common Stock

 

 

414,994,863

 

 

 

900

 

 

 

 

 

(7)

 

 

Equity

6/6/2016

Preferred Series BB

 

 

1,000,000

 

 

 

 

 

 

 

 

(7)

Total Tectura Corporation

 

 

 

 

 

 

415,994,863

 

 

 

900

 

 

 

 

 

 

TFG Holding, Inc.

 

Equity

4/30/2010

Common Stock

 

 

42,989

 

 

 

89

 

 

 

122

 

 

 

Uber Technologies, Inc.

 

Equity

12/1/2020

Common Stock

 

 

32,991

 

 

 

318

 

 

 

675

 

 

(4)

Subtotal: Internet Consumer & Business Services (1.33%)*

 

 

 

 

 

22,058

 

 

 

17,644

 

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Aesthetics, LLC

 

Equity

10/15/2021

Common Units

 

 

180,000

 

 

 

 

 

 

10

 

 

(7)

 

 

Equity

10/15/2021

Preferred Series A-2

 

 

5,000,000

 

 

 

250

 

 

 

412

 

 

(7)

Total Coronado Aesthetics, LLC

 

 

 

 

 

 

5,180,000

 

 

 

250

 

 

 

422

 

 

 

Flowonix Medical Incorporated

 

Equity

11/3/2014

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

 

 

 

Gelesis, Inc.

 

Equity

11/30/2009

Common Stock

 

 

1,716,107

 

 

 

1,003

 

 

 

2,616

 

 

(4)(20)

ViewRay, Inc.

 

Equity

12/16/2013

Common Stock

 

 

36,457

 

 

 

332

 

 

 

97

 

 

(4)

Subtotal: Medical Devices & Equipment (0.24%)*

 

 

 

 

 

3,085

 

 

 

3,135

 

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Equity

7/1/2011

Preferred Series C

 

 

277,995

 

 

 

160

 

 

 

416

 

 

 

Subtotal: Semiconductors (0.03%)*

 

 

 

 

 

160

 

 

 

416

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3GTMS, LLC

 

Equity

8/9/2021

Common Stock

 

 

1,000,000

 

 

 

1,000

 

 

 

725

 

 

 

CapLinked, Inc.

 

Equity

10/26/2012

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

13

 

 

 

Docker, Inc.

 

Equity

11/29/2018

Common Stock

 

 

20,000

 

 

 

4,284

 

 

 

 

 

 

Druva Holdings, Inc.

 

Equity

10/22/2015

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,432

 

 

 

 

 

Equity

8/24/2017

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

333

 

 

 

Total Druva Holdings, Inc.

 

 

 

 

 

 

552,461

 

 

 

1,300

 

 

 

1,765

 

 

 

HighRoads, Inc.

 

Equity

1/18/2013

Common Stock

 

 

190

 

 

 

307

 

 

 

 

 

 

Lightbend, Inc.

 

Equity

12/4/2020

Common Stock

 

 

38,461

 

 

 

265

 

 

 

10

 

 

 

Palantir Technologies

 

Equity

9/23/2020

Common Stock

 

 

1,418,337

 

 

 

8,670

 

 

 

12,864

 

 

(4)

SingleStore, Inc.

 

Equity

11/25/2020

Preferred Series E

 

 

580,983

 

 

 

2,000

 

 

 

1,322

 

 

 

 

 

Equity

8/12/2021

Preferred Series F

 

 

52,956

 

 

 

280

 

 

 

149

 

 

 

Total SingleStore, Inc.

 

 

 

 

 

 

633,939

 

 

 

2,280

 

 

 

1,471

 

 

 

Sprinklr, Inc.

 

Equity

3/22/2017

Common Stock

 

 

700,000

 

 

 

3,748

 

 

 

7,077

 

 

(4)

Verana Health, Inc.

 

Equity

7/8/2021

Preferred Series E

 

 

952,562

 

 

 

2,000

 

 

 

1,365

 

 

 

Subtotal: Software (1.90%)*

 

 

 

 

 

23,905

 

 

 

25,290

 

 

 

 

See notes to consolidated financial statements

 

13


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Acquisition Date (4)

Series (3)

 

Shares

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.

 

Equity

1/18/2007

Preferred Series B

 

 

219,298

 

 

$

250

 

 

$

 

 

 

 

 

Equity

6/16/2010

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

 

 

 

 

 

Equity

2/8/2013

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

 

 

 

 

 

Equity

7/14/2015

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

 

 

 

 

 

Equity

12/18/2018

Preferred Series F

 

 

1,523,693

 

 

 

118

 

 

 

 

 

 

 

 

Equity

12/18/2018

Preferred Series F-1

 

 

2,418,125

 

 

 

150

 

 

 

 

 

 

Total Gynesonics, Inc.

 

 

 

 

 

 

9,595,178

 

 

 

1,941

 

 

 

 

 

 

Subtotal: Surgical Devices (0.00%)*

 

 

 

 

 

1,941

 

 

 

 

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc.

 

Equity

5/10/2019

Preferred Series E-1

 

 

188,611

 

 

 

2,000

 

 

 

2,805

 

 

 

Modumetal, Inc.

 

Equity

6/1/2015

Common Stock

 

 

1,035

 

 

 

500

 

 

 

 

 

 

NantEnergy, LLC

 

Equity

8/31/2013

Common Units

 

 

59,665

 

 

 

102

 

 

 

 

 

 

Pineapple Energy LLC

 

Equity

12/10/2020

Common Stock

 

 

498,978

 

 

 

5,167

 

 

 

673

 

 

(4)(6)(20)

Pivot Bio, Inc.

 

Equity

6/28/2021

Preferred Series D

 

 

593,080

 

 

 

4,500

 

 

 

2,919

 

 

 

Proterra, Inc.

 

Equity

5/28/2015

Common Stock

 

 

457,841

 

 

 

543

 

 

 

2,124

 

 

(4)

Subtotal: Sustainable and Renewable Technology (0.64%)*

 

 

 

 

 

12,812

 

 

 

8,521

 

 

 

Total: Equity Investments (10.38%)*

 

 

 

 

$

152,222

 

 

$

137,794

 

 

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aryaka Networks, Inc.

 

Warrant

6/28/2022

Common Stock

 

 

229,611

 

 

$

123

 

 

$

123

 

 

 

Spring Mobile Solutions, Inc.

 

Warrant

4/19/2013

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

 

 

Subtotal: Communications & Networking (0.01%)*

 

 

 

 

 

541

 

 

 

123

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard, LLC

 

Warrant

6/3/2014

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

 

 

TechStyle, Inc.

 

Warrant

7/16/2013

Preferred Series B

 

 

206,185

 

 

 

1,101

 

 

 

789

 

 

 

The Neat Company

 

Warrant

8/13/2014

Common Stock

 

 

54,054

 

 

 

365

 

 

 

 

 

 

Whoop, Inc.

 

Warrant

6/27/2018

Preferred Series C

 

 

686,270

 

 

 

18

 

 

 

1,182

 

 

 

Subtotal: Consumer & Business Products (0.15%)*

 

 

 

 

 

1,712

 

 

 

1,971

 

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerami Therapeutics Holdings, Inc.

 

Warrant

9/30/2015

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

 

 

BioQ Pharma Incorporated

 

Warrant

10/27/2014

Common Stock

 

 

459,183

 

 

 

1

 

 

 

 

 

 

PDS Biotechnology Corporation

 

Warrant

8/28/2014

Common Stock

 

 

3,929

 

 

 

390

 

 

 

 

 

(4)

Subtotal: Drug Delivery (0.00%)*

 

 

 

 

 

465

 

 

 

 

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMA Biologics, Inc.

 

Warrant

12/21/2012

Common Stock

 

 

89,750

 

 

 

295

 

 

 

1

 

 

(4)

Akero Therapeutics, Inc.

 

Warrant

6/15/2022

Common Stock

 

 

18,360

 

 

 

56

 

 

 

67

 

 

(4)(10)

Albireo Pharma, Inc.

 

Warrant

6/8/2020

Common Stock

 

 

5,311

 

 

 

61

 

 

 

29

 

 

(4)(10)

Axsome Therapeutics, Inc.

 

Warrant

9/25/2020

Common Stock

 

 

40,396

 

 

 

880

 

 

 

593

 

 

(4)(10)(16)(20)

Brickell Biotech, Inc.

 

Warrant

2/18/2016

Common Stock

 

 

9,005

 

 

 

119

 

 

 

1

 

 

(4)

Cellarity, Inc.

 

Warrant

12/8/2021

Preferred Series B

 

 

100,000

 

 

 

287

 

 

 

164

 

 

(15)

Century Therapeutics, Inc.

 

Warrant

9/14/2020

Common Stock

 

 

16,112

 

 

 

37

 

 

 

12

 

 

(4)

Dermavant Sciences Ltd.

 

Warrant

5/31/2019

Common Stock

 

 

223,642

 

 

 

101

 

 

 

132

 

 

(5)(10)(12)

enGene, Inc.

 

Warrant

12/30/2021

Preferred Series 3

 

 

133,692

 

 

 

72

 

 

 

28

 

 

(5)(10)

Evofem Biosciences, Inc.

 

Warrant

6/11/2014

Common Stock

 

 

520

 

 

 

266

 

 

 

 

 

(4)

Madrigal Pharmaceutical, Inc.

 

Warrant

5/9/2022

Common Stock

 

 

10,131

 

 

 

177

 

 

 

245

 

 

(4)(10)

Myovant Sciences, Ltd.

 

Warrant

10/16/2017

Common Stock

 

 

73,710

 

 

 

460

 

 

 

186

 

 

(4)(5)(10)

Paratek Pharmaceuticals, Inc.

 

Warrant

8/1/2018

Common Stock

 

 

426,866

 

 

 

520

 

 

 

26

 

 

(4)

Phathom Pharmaceuticals, Inc.

 

Warrant

9/17/2021

Common Stock

 

 

64,687

 

 

 

848

 

 

 

46

 

 

(4)(10)(15)(16)

Redshift Bioanalytics, Inc.

 

Warrant

3/23/2022

Preferred Series E

 

 

142,653

 

 

 

7

 

 

 

5

 

 

(15)

Scynexis, Inc.

 

Warrant

5/14/2021

Common Stock

 

 

106,035

 

 

 

296

 

 

 

30

 

 

(4)

Stealth Bio Therapeutics Corp.

 

Warrant

6/30/2017

Common Stock

 

 

500,000

 

 

 

158

 

 

 

 

 

(4)(5)(10)

TG Therapeutics, Inc.

 

Warrant

2/28/2019

Common Stock

 

 

231,613

 

 

 

1,033

 

 

 

168

 

 

(4)(10)(12)

Tricida, Inc.

 

Warrant

3/27/2019

Common Stock

 

 

31,352

 

 

 

280

 

 

 

21

 

 

(4)

Valo Health, LLC

 

Warrant

6/15/2020

Common Units

 

 

102,216

 

 

 

256

 

 

 

324

 

 

 

X4 Pharmaceuticals, Inc.

 

Warrant

3/18/2019

Common Stock

 

 

108,334

 

 

 

673

 

 

 

7

 

 

(4)

Yumanity Therapeutics, Inc.

 

Warrant

12/20/2019

Common Stock

 

 

15,414

 

 

 

110

 

 

 

 

 

(4)

Subtotal: Drug Discovery & Development (0.16%)*

 

 

 

 

 

6,992

 

 

 

2,085

 

 

 

 

See notes to consolidated financial statements

 

14


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Acquisition Date (4)

Series (3)

 

Shares

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 Devices, Inc.

 

Warrant

3/15/2017

Common Stock

 

 

49,078

 

 

$

101

 

 

$

436

 

 

(4)

Skydio, Inc.

 

Warrant

11/8/2021

Common Stock

 

 

622,255

 

 

 

557

 

 

 

1,674

 

 

 

Subtotal: Electronics & Computer Hardware (0.16%)*

 

 

 

 

 

658

 

 

 

2,110

 

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vida Health, Inc.

 

Warrant

3/28/2022

Common Stock

 

 

100,618

 

 

 

114

 

 

 

60

 

 

 

Subtotal: Healthcare Services, Other (0.00%)*

 

 

 

 

 

114

 

 

 

60

 

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capella Space Corp.

 

Warrant

10/21/2021

Common Stock

 

 

176,200

 

 

 

207

 

 

 

74

 

 

(15)

INMOBI Inc.

 

Warrant

11/19/2014

Common Stock

 

 

65,587

 

 

 

82

 

 

 

 

 

(5)(10)

NetBase Solutions, Inc.

 

Warrant

8/22/2017

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

421

 

 

 

Signal Media Limited

 

Warrant

6/29/2022

Common Stock

 

 

94,857

 

 

 

35

 

 

 

35

 

 

(5)(10)

Subtotal: Information Services (0.04%)*

 

 

 

 

 

680

 

 

 

530

 

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

Warrant

5/22/2015

Preferred Series G

 

 

231,535

 

 

 

74

 

 

 

 

 

 

Carwow LTD

 

Warrant

12/14/2021

Common Stock

 

 

174,163

 

 

 

164

 

 

 

52

 

 

(5)(10)

Cloudpay, Inc.

 

Warrant

4/10/2018

Preferred Series B

 

 

6,763

 

 

 

54

 

 

 

233

 

 

(5)(10)

Convoy, Inc.

 

Warrant

3/30/2022

Common Stock

 

 

165,456

 

 

 

974

 

 

 

610

 

 

(16)

First Insight, Inc.

 

Warrant

5/10/2018

Preferred Series B

 

 

75,917

 

 

 

95

 

 

 

44

 

 

 

Houzz, Inc.

 

Warrant

10/29/2019

Common Stock

 

 

529,661

 

 

 

20

 

 

 

 

 

 

Landing Holdings Inc.

 

Warrant

3/12/2021

Common Stock

 

 

11,806

 

 

 

116

 

 

 

50

 

 

(15)

Lendio, Inc.

 

Warrant

3/29/2019

Preferred Series D

 

 

127,032

 

 

 

39

 

 

 

60

 

 

 

Rhino Labs, Inc.

 

Warrant

3/12/2021

Common Stock

 

 

13,106

 

 

 

470

 

 

 

450

 

 

(15)

RumbleON, Inc.

 

Warrant

4/30/2018

Common Stock

 

 

5,139

 

 

 

88

 

 

 

2

 

 

(4)

Savage X Holding, LLC

 

Warrant

6/27/2014

Class A Units

 

 

206,185

 

 

 

 

 

 

1,040

 

 

 

SeatGeek, Inc.

 

Warrant

6/12/2019

Common Stock

 

 

1,379,761

 

 

 

842

 

 

 

2,254

 

 

(16)

ShareThis, Inc.

 

Warrant

12/14/2012

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

 

 

 

Skyword, Inc.

 

Warrant

8/23/2019

Preferred Series B

 

 

444,444

 

 

 

83

 

 

 

3

 

 

 

Snagajob.com, Inc.

 

Warrant

4/20/2020

Common Stock

 

 

600,000

 

 

 

16

 

 

 

101

 

 

(12)

 

 

Warrant

6/30/2016

Preferred Series A

 

 

1,800,000

 

 

 

782

 

 

 

209

 

 

(12)

 

 

Warrant

8/1/2018

Preferred Series B

 

 

1,211,537

 

 

 

62

 

 

 

127

 

 

(12)

Total Snagajob.com, Inc.

 

 

 

 

 

 

3,611,537

 

 

 

860

 

 

 

437

 

 

 

TFG Holding, Inc.

 

Warrant

6/27/2014

Common Stock

 

 

206,185

 

 

 

 

 

 

22

 

 

 

The Faction Group LLC

 

Warrant

11/3/2014

Preferred Series AA

 

 

8,076

 

 

 

234

 

 

 

481

 

 

 

Thumbtack, Inc.

 

Warrant

5/1/2018

Common Stock

 

 

267,225

 

 

 

844

 

 

 

579

 

 

 

Veem, Inc.

 

Warrant

3/31/2022

Common Stock

 

 

98,428

 

 

 

126

 

 

 

59

 

 

 

Worldremit Group Limited

 

Warrant

2/11/2021

Preferred Series D

 

 

77,215

 

 

 

129

 

 

 

845

 

 

(5)(10)(16)

 

 

Warrant

8/27/2021

Preferred Series E

 

 

1,868

 

 

 

26

 

 

 

14

 

 

(5)(10)(16)

Total Worldremit Group Limited

 

 

 

 

 

 

79,083

 

 

 

155

 

 

 

859

 

 

 

Subtotal: Internet Consumer & Business Services (0.54%)*

 

 

 

 

 

5,785

 

 

 

7,235

 

 

 

Manufacturing Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bright Machines, Inc.

 

Warrant

3/31/2022

Common Stock

 

 

196,335

 

 

 

151

 

 

 

67

 

 

 

MacroFab, Inc.

 

Warrant

3/23/2022

Common Stock

 

 

1,111,111

 

 

 

528

 

 

 

598

 

 

 

Xometry, Inc.

 

Warrant

5/9/2018

Common Stock

 

 

87,784

 

 

 

47

 

 

 

1,906

 

 

(4)

Subtotal: Manufacturing Technology (0.19%)*

 

 

 

 

 

726

 

 

 

2,571

 

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zoom Media Group, Inc.

 

Warrant

12/21/2012

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

 

 

 

Subtotal: Media/Content/Info (0.00%)*

 

 

 

 

 

348

 

 

 

 

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc.

 

Warrant

1/28/2015

Common Stock

 

 

22,572

 

 

 

455

 

 

 

 

 

 

Flowonix Medical Incorporated

 

Warrant

11/3/2014

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

 

 

(12)

 

 

Warrant

9/21/2018

Preferred Series BB

 

 

725,806

 

 

 

351

 

 

 

 

 

(12)

Total Flowonix Medical Incorporated

 

 

 

 

 

 

881,131

 

 

 

713

 

 

 

 

 

 

Intuity Medical, Inc.

 

Warrant

12/29/2017

Preferred Series B-1

 

 

3,076,323

 

 

 

294

 

 

 

23

 

 

 

Lucira Health, Inc.

 

Warrant

2/4/2022

Common Stock

 

 

59,642

 

 

 

110

 

 

 

5

 

 

(4)

Outset Medical, Inc.

 

Warrant

9/27/2013

Common Stock

 

 

62,794

 

 

 

401

 

 

 

350

 

 

(4)

Tela Bio, Inc.

 

Warrant

3/31/2017

Common Stock

 

 

15,712

 

 

 

61

 

 

 

-

 

 

(4)

Subtotal: Medical Devices & Equipment (0.03%)*

 

 

 

 

 

2,034

 

 

 

378

 

 

 

 

See notes to consolidated financial statements

 

15


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Acquisition Date (4)

Series (3)

 

Shares

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Warrant

6/26/2015

Preferred Series D-2

 

 

750,000

 

 

$

99

 

 

$

932

 

 

 

Fungible, Inc.

 

Warrant

12/16/2021

Common Stock

 

 

800,000

 

 

 

751

 

 

 

135

 

 

(15)

Subtotal: Semiconductors (0.08%)*

 

 

 

 

 

850

 

 

 

1,067

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitsight Technologies, Inc.

 

Warrant

11/18/2020

Common Stock

 

 

29,691

 

 

 

284

 

 

 

552

 

 

 

Brain Corporation

 

Warrant

10/4/2021

Common Stock

 

 

194,629

 

 

 

165

 

 

 

88

 

 

(15)

CloudBolt Software, Inc.

 

Warrant

9/30/2020

Common Stock

 

 

211,342

 

 

 

117

 

 

 

16

 

 

 

Cloudian, Inc.

 

Warrant

11/6/2018

Common Stock

 

 

477,454

 

 

 

71

 

 

 

15

 

 

 

Couchbase, Inc.

 

Warrant

4/25/2019

Common Stock

 

 

105,350

 

 

 

462

 

 

 

740

 

 

(4)

Dashlane, Inc.

 

Warrant

3/11/2019

Common Stock

 

 

453,641

 

 

 

353

 

 

 

263

 

 

 

Delphix Corp.

 

Warrant

10/8/2019

Common Stock

 

 

718,898

 

 

 

1,594

 

 

 

2,634

 

 

(16)

Demandbase, Inc.

 

Warrant

8/2/2021

Common Stock

 

 

727,047

 

 

 

545

 

 

 

328

 

 

 

DNAnexus, Inc.

 

Warrant

3/21/2014

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

50

 

 

 

DroneDeploy, Inc.

 

Warrant

6/30/2022

Common Stock

 

 

95,911

 

 

 

278

 

 

 

278

 

 

 

Eigen Technologies Ltd.

 

Warrant

4/13/2022

Common Stock

 

 

250

 

 

 

5

 

 

 

4

 

 

(5)(10)

Esme Learning Solutions, Inc.

 

Warrant

1/27/2022

Common Stock

 

 

56,765

 

 

 

198

 

 

 

105

 

 

 

Evernote Corporation

 

Warrant

9/30/2016

Common Stock

 

 

62,500

 

 

 

107

 

 

 

13

 

 

 

Lightbend, Inc.

 

Warrant

2/14/2018

Preferred Series D

 

 

89,685

 

 

 

131

 

 

 

 

 

 

Mixpanel, Inc.

 

Warrant

9/30/2020

Common Stock

 

 

82,362

 

 

 

252

 

 

 

333

 

 

 

Nuvolo Technologies Corporation

 

Warrant

3/29/2019

Common Stock

 

 

70,000

 

 

 

172

 

 

 

218

 

 

 

Poplicus, Inc.

 

Warrant

5/28/2014

Common Stock

 

 

132,168

 

 

 

 

 

 

 

 

 

Pymetrics, Inc.

 

Warrant

9/15/2020

Common Stock

 

 

150,943

 

 

 

77

 

 

 

56

 

 

 

RapidMiner, Inc.

 

Warrant

11/28/2017

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

7

 

 

 

Reltio, Inc.

 

Warrant

6/30/2020

Common Stock

 

 

69,120

 

 

 

215

 

 

 

289

 

 

 

SignPost, Inc.

 

Warrant

1/13/2016

Series Junior 1 Preferred

 

 

474,019

 

 

 

314

 

 

 

 

 

 

SingleStore, Inc.

 

Warrant

4/28/2020

Preferred Series D

 

 

312,596

 

 

 

103

 

 

 

334

 

 

 

Tact.ai Technologies, Inc.

 

Warrant

2/13/2020

Common Stock

 

 

1,041,667

 

 

 

206

 

 

 

168

 

 

 

Udacity, Inc.

 

Warrant

9/25/2020

Common Stock

 

 

486,359

 

 

 

218

 

 

 

147

 

 

 

VideoAmp, Inc.

 

Warrant

1/21/2022

Common Stock

 

 

152,048

 

 

 

1,275

 

 

 

611

 

 

(15)

ZeroFox, Inc.

 

Warrant

5/7/2020

Preferred Series C-1

 

 

648,350

 

 

 

101

 

 

 

540

 

 

 

Subtotal: Software (0.59%)*

 

 

 

 

 

7,364

 

 

 

7,789

 

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.

 

Warrant

12/5/2012

Preferred Series C

 

 

33,670

 

 

 

13

 

 

 

 

 

 

TransMedics Group, Inc.

 

Warrant

11/7/2012

Common Stock

 

 

64,440

 

 

 

139

 

 

 

1,044

 

 

(4)

Subtotal: Surgical Devices (0.08%)*

 

 

 

 

 

152

 

 

 

1,044

 

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.

 

Warrant

6/20/2013

Preferred Series D

 

 

471,327

 

 

 

120

 

 

 

 

 

 

Ampion, PBC

 

Warrant

4/15/2022

Common Stock

 

 

18,472

 

 

 

52

 

 

 

46

 

 

 

Fulcrum Bioenergy, Inc.

 

Warrant

9/13/2012

Preferred Series C-1

 

 

280,897

 

 

 

274

 

 

 

765

 

 

 

Halio, Inc.

 

Warrant

4/22/2014

Preferred Series A

 

 

325,000

 

 

 

155

 

 

 

97

 

 

 

 

 

Warrant

4/7/2015

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

32

 

 

 

Total Halio, Inc.

 

 

 

 

 

 

456,883

 

 

 

218

 

 

 

129

 

 

 

Polyera Corporation

 

Warrant

12/11/2012

Preferred Series C

 

 

311,612

 

 

 

338

 

 

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.07%)*

 

 

 

 

 

1,002

 

 

 

940

 

 

 

Total: Warrant Investments (2.10%)*

 

 

 

 

 

29,423

 

 

 

27,903

 

 

 

Total Investments in Securities (204.60%)*

 

 

 

 

$

2,761,048

 

 

$

2,716,563

 

 

 

Investment Funds & Vehicles Investments

 

 

 

 

 

 

 

 

 

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forbion Growth Opportunities Fund I C.V.

 

Investment Funds & Vehicles

11/16/2020

 

 

 

 

 

 

2,084

 

 

 

2,136

 

 

(5)(10)(17)

Forbion Growth Opportunities Fund II C.V.

 

Investment Funds & Vehicles

6/23/2022

 

 

 

 

 

 

195

 

 

 

192

 

 

(5)(10)(17)

Subtotal: Drug Discovery & Development (0.18%)*

 

 

 

 

$

2,279

 

 

$

2,328

 

 

 

Total: Investment Funds & Vehicles Investments (0.18%)*

 

 

 

 

$

2,279

 

 

$

2,328

 

 

 

Total Investments before Cash and Cash Equivalents (204.78%)*

 

 

 

 

$

2,763,327

 

 

$

2,718,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GS Financial Square Government Fund

 

Cash & Cash Equivalents

 

FGTXX/38141W273

 

 

 

 

 

51,000

 

 

 

51,000

 

 

 

JPMorgan U.S. Government Money Market

 

Cash & Cash Equivalents

 

Capital (OGVXX)

 

 

 

 

 

39,000

 

 

 

39,000

 

 

 

Total: Investments in Cash & Cash Equivalents (6.78%)*

 

 

 

 

$

90,000

 

 

$

90,000

 

 

 

Total: Investments after Cash and Cash Equivalents (211.55%)*

 

 

 

 

$

2,853,327

 

 

$

2,808,891

 

 

 

 

See notes to consolidated financial statements

 

16


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2022 (unaudited)

(dollars in thousands)

 

* Value as a percent of net assets. All amounts are stated in U.S. Dollars unless otherwise noted. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(1)
Interest rate PRIME represents 4.75% as of June 30, 2022. 1-month LIBOR, 3-month LIBOR and 6-month LIBOR represent 1.7867%, 2.2851%, and 2.93514%, respectively, as of June 30, 2022.
(2)
Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $74.5 million, $116.7 million and $(42.3) million, respectively. The tax cost of investments is $2.8 billion.
(3)
Preferred and common stock, warrants, and equity interest are generally non-income producing.
(4)
Except for warrants in 26 publicly traded companies and common stock in 41 publicly traded companies, all investments are restricted as of June 30, 2022 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s valuation committee (the “Valuation Committee”) and approved by the board of directors (the “Board”).
(5)
Non-U.S. company or the company’s principal place of business is outside the United States.
(6)
Affiliate investment as defined under the Investment Company Act of 1940, as amended, (the “1940 Act”) in which Hercules owns at least 5% but generally less than 25% of the company’s voting securities.
(7)
Control investment as defined under the 1940 Act in which Hercules owns at least 25% of the company’s voting securities or has greater than 50% representation on its board.
(8)
Debt is on non-accrual status as of June 30, 2022, and is therefore considered non-income producing. Note that as of June 30, 2022, only the PIK, or payment-in-kind, portion is on non-accrual for the Company’s debt investment in Tectura Corporation.
(9)
Denotes that all or a portion of the debt investment is convertible debt.
(10)
Indicates assets that the Company deems not “qualifying assets” under section 55(a) of 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.
(11)
Denotes that all or a portion of the debt investment is pledged as collateral under the SMBC Facility (as defined in “Note 5 — Debt”).
(12)
Denotes that all or a portion of the investment is pledged as collateral under the MUFG Bank Facility (as defined in “Note 5 — Debt”).
(13)
Denotes that all or a portion of the debt investment secures the 2031 Asset-Backed Notes (as defined in “Note 5 — Debt”).
(14)
Denotes that all or a portion of the debt investment principal includes accumulated PIK interest and is net of repayments.
(15)
Denotes that all or a portion of the investment in this portfolio company is held by Hercules Capital IV, L.P., the Company’s wholly owned small business investment company.
(16)
Denotes that the fair value of the Company’s total investments in this portfolio company represent greater than 5% of the Company’s total net assets as of June 30, 2022.
(17)
Denotes that there is an unfunded contractual commitment available at the request of this portfolio company as of June 30, 2022 (Refer to “Note 11 - Commitments and Contingencies”).
(18)
Denotes unitranche debt with first lien “last-out” senior secured position and security interest in all assets of the portfolio company whereby the “last-out” portion will be subordinated to the “first-out” portion in a liquidation, sale or other disposition.
(19)
Denotes second lien senior secured debt.
(20)
Denotes all or a portion of the public equity or warrant investment was acquired in a transaction exempt from registration under the Securities Act of 1933 (“Securities Act”) and may be deemed to be “restricted securities” under the Securities Act.
(21)
Denotes investment in a non-voting security in the form of a promissory note. The terms of the notes provide the Company with a lien on the issuers' shares of Common Stock for Black Crow AI, Inc., subject to release upon repayment of the outstanding balance of the notes. As of June 30, 2022, the Black Crow AI, Inc. affiliates promissory notes had an outstanding balance of $3.0 million.
(22)
Denotes the security holds rights to royalty fee income associated with certain products of the portfolio company. The approximate cost and fair value of the royalty contract are $4.6 million and $4.6 million, respectively.

See notes to consolidated financial statements

 

17


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cytracom Holdings LLC

 

Senior Secured

February 2025

3-month LIBOR + 9.31% or Floor rate of 10.31%

 

$

9,000

 

 

$

8,802

 

 

$

8,725

 

 

(11)(16)(17)

Rocket Lab Global Services, LLC

 

Senior Secured

June 2024

PRIME + 4.90% or Floor rate of 8.15%, PIK Interest 1.25%, 3.25% Exit Fee

 

$

88,542

 

 

 

88,286

 

 

 

90,505

 

 

(13)(15)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

97,088

 

 

 

99,230

 

 

 

Subtotal: Communications & Networking (7.58%)*

 

 

 

 

 

 

97,088

 

 

 

99,230

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grove Collaborative, Inc.

 

Senior Secured

April 2025

PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee

 

$

23,520

 

 

 

23,162

 

 

 

23,298

 

 

(18)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

23,162

 

 

 

23,298

 

 

 

Subtotal: Consumer & Business Products (1.78%)*

 

 

 

 

 

 

23,162

 

 

 

23,298

 

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newfront Insurance Holdings, Inc.

 

Convertible Note

August 2022

PIK Interest 0.19% or Floor rate of 0.19%

 

$

403

 

 

 

403

 

 

 

403

 

 

(9)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

403

 

 

 

403

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC

 

Unsecured

September 2026

FIXED 14.50%

 

$

15,000

 

 

 

14,662

 

 

 

13,818

 

 

(7)

 

 

Unsecured

September 2026

FIXED 11.50%

 

$

10,000

 

 

 

9,823

 

 

 

9,394

 

 

(7)

Total Gibraltar Business Capital, LLC

 

 

 

 

 

$

25,000

 

 

 

24,485

 

 

 

23,212

 

 

 

Hercules Adviser LLC

 

Unsecured

May 2023

FIXED 5.00%

 

$

8,850

 

 

 

8,850

 

 

 

8,850

 

 

(7)

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

33,335

 

 

 

32,062

 

 

 

Subtotal: Diversified Financial Services (2.48%)*

 

 

 

 

 

 

33,738

 

 

 

32,465

 

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemocentryx, Inc.

 

Senior Secured

December 2022

PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee

 

$

18,951

 

 

 

20,036

 

 

 

20,036

 

 

(10)

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

20,036

 

 

 

20,036

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albireo Pharma, Inc.

 

Senior Secured

July 2024

PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee

 

$

10,000

 

 

 

10,229

 

 

 

10,268

 

 

(10)(11)

Aldeyra Therapeutics, Inc.

 

Senior Secured

October 2023

PRIME + 3.10% or Floor rate of 8.60%, 6.95% Exit Fee

 

$

15,000

 

 

 

15,639

 

 

 

15,653

 

 

 

Applied Genetic Technologies Corporation

 

Senior Secured

April 2024

PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee

 

$

20,000

 

 

 

20,416

 

 

 

20,339

 

 

 

Aveo Pharmaceuticals, Inc.

 

Senior Secured

September 2024

PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee

 

$

40,000

 

 

 

40,842

 

 

 

40,776

 

 

(11)(14)

Axsome Therapeutics, Inc.

 

Senior Secured

October 2026

PRIME + 5.70% or Floor rate of 8.95%, 5.82% Exit Fee

 

$

50,000

 

 

 

49,542

 

 

 

48,859

 

 

(10)(12)

Bicycle Therapeutics PLC

 

Senior Secured

October 2024

PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee

 

$

24,000

 

 

 

24,271

 

 

 

24,454

 

 

(5)(10)(11)(12)(16)

BiomX, INC

 

Senior Secured

September 2025

PRIME + 5.70% or Floor rate of 8.95%, 6.55% Exit Fee

 

$

9,000

 

 

 

8,980

 

 

 

8,980

 

 

(5)(10)(11)

BridgeBio Pharma, Inc.

 

Senior Secured

November 2026

FIXED 9.00%, 2.00% Exit Fee

 

$

38,000

 

 

 

37,462

 

 

 

37,462

 

 

 

Cellarity, Inc.

 

Senior Secured

June 2026

PRIME + 5.70% or Floor rate of 8.95%, 3.75% Exit Fee

 

$

30,000

 

 

 

29,422

 

 

 

29,422

 

 

(14)

Center for Breakthrough Medicines Holdings, LLC

 

Senior Secured

May 2023

PRIME + 5.50% or Floor rate of 8.75%, 7.50% Exit Fee

 

$

5,000

 

 

 

5,005

 

 

 

5,005

 

 

 

Century Therapeutics

 

Senior Secured

April 2024

PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee

 

$

10,000

 

 

 

10,075

 

 

 

10,361

 

 

(11)

 

See notes to consolidated financial statements

 

18


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

(dollars in thousands)

 

Portfolio Company

 

Type of
Investment

Maturity Date

Interest Rate and Floor (1)

 

Principal
Amount

 

 

Cost (2)

 

 

Value

 

 

Footnotes

Chemocentryx, Inc.

 

Senior Secured

February 2025

PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee

 

$

5,000

 

 

$

5,161

 

 

$

5,070

 

 

(10)

Codiak Biosciences, Inc.

 

Senior Secured

October 2025

PRIME + 5.00% or Floor rate of 8.25%, 5.50% Exit Fee

 

$

25,000

 

 

 

25,459

 

 

 

25,316

 

 

(11)

Corium, Inc.

 

Senior Secured

September 2026

PRIME + 5.70% or Floor rate of 8.95%, 7.75% Exit Fee

 

$

91,500

 

 

 

90,997

 

 

 

90,997

 

 

(15)

Eloxx Pharmaceuticals, Inc.

 

Senior Secured

April 2025

PRIME + 6.25% or Floor rate of 9.50%, 6.55% Exit Fee

 

$

12,500

 

 

 

12,443

 

 

 

12,443

 

 

(14)

enGene, Inc.

 

Senior Secured

July 2025

PRIME + 5.00% or Floor rate of 8.25%, 6.35% Exit Fee

 

$

7,000

 

 

 

6,858

 

 

 

6,858

 

 

(5)(10)

G1 Therapeutics, Inc.

 

Senior Secured

November 2026

PRIME + 5.90% or Floor rate of 9.15%, 9.86% Exit Fee

 

$

58,125

 

 

 

57,873

 

 

 

57,874

 

 

(10)(11)(12)(14)(16)

Geron Corporation

 

Senior Secured

October 2024

PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee

 

$

32,500

 

 

 

32,704

 

 

 

32,744

 

 

(10)(12)

Hibercell, Inc.

 

Senior Secured

May 2025

PRIME + 5.40% or Floor rate of 8.65%, 4.95% Exit Fee

 

$

17,000

 

 

 

17,041

 

 

 

17,014

 

 

(14)

Humanigen, Inc.

 

Senior Secured

March 2025

PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee

 

$

20,000

 

 

 

20,235

 

 

 

19,985

 

 

(9)(10)

Kaleido Biosciences, Inc.

 

Senior Secured

January 2024

PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee

 

$

22,500

 

 

 

23,505