htgc-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_________________________________________________

FORM 10-Q

_________________________________________________

(Mark One)

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

For The Quarterly Period Ended March 31, 2024

o 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)

1 North B Street., Suite 2000 San Mateo, California (Address of Principal Executive Offices)						94401 (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 x No o

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

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 o No x

On April 25, 2024, there were 162,177,209 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 March 31 , 202 4 (unaudited) and December 31, 202 3	3

	Consolidated Statements of Operations for the three months ended March 3 1 , 202 4 and 202 3 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three months ended March 3 1 , 202 4 and 202 3 (unaudited)	5

	Consolidated Statements of Cash Flows for the three months ended March 3 1 , 202 4 and 202 3 (unaudited)	6

	Consolidated Schedule of Investments as of March 3 1 , 202 4 (unaudited)	7

	Consolidated Schedule of Investments as of December 31, 2023	21

	Notes to Consolidated Financial Statements (unaudited)	35

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	70

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	85

Item 4.	Controls and Procedures	86

PART II. OTHER INFORMATION		87

Item 1.	Legal Proceedings	87

Item 1A.	Risk Factors	87

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	88

Item 3.	Defaults Upon Senior Securities	88

Item 4.	Mine Safety Disclosures	88

Item 5.	Other Information	88

Item 6.	Exhibits and Financial Statement Schedules	89

SIGNATURES		94

Table of Contents

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)	March 31, 2024		December 31, 2023
	(unaudited)
Assets
Investments, at fair value:
Non-control/Non-affiliate investments (cost of $3,471,353 and $3,143,851, respectively)	$	3,459,426	$	3,133,042
Control investments (cost of $103,223 and $103,182, respectively)	112,215		115,004
Total investments, at fair value (cost of $3,574,576 and $3,247,033, respectively; fair value amounts related to a VIE $264,690 and $254,868, respectively)	3,571,641		3,248,046
Cash and cash equivalents	50,176		98,899
Restricted cash (amounts related to a VIE $10,110 and $17,114, respectively)	10,110		17,114
Interest receivable	35,399		32,741
Right of use asset	18,579		4,787
Other assets	10,128		15,339
Total assets	$	3,696,033	$	3,416,926

Liabilities
Debt (net of debt issuance costs - Note 5; amounts related to a VIE $148,691 and $148,544, respectively)	$	1,751,998	$	1,554,869
Accounts payable and accrued liabilities	38,698		54,156
Operating lease liability	19,399		5,195
Total liabilities	$	1,810,095	$	1,614,220

Net assets consist of:
Common stock, par value	$	163	$	158
Capital in excess of par value	1,730,829		1,662,535
Total distributable earnings	154,946		140,013
Total net assets	$	1,885,938	$	1,802,706
Total liabilities and net assets	$	3,696,033	$	3,416,926

Shares of common stock outstanding ($0.001 par value and 200,000 authorized)	162,230		157,758
Net asset value per share	$	11.63	$	11.43

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


(in thousands, except per share data)	Three Months Ended March 31,
	2024		2023
Investment income:
Interest and dividend income:
Non-control/Non-affiliate investments	$	112,822	$	98,781
Control investments	2,957		1,116

Total interest and dividend income	115,779		99,897
Fee income:
Non-control/Non-affiliate investments	5,738		5,174
Control investments	36		19
Total fee income	5,774		5,193
Total investment income	121,553		105,090
Operating expenses:
Interest	17,624		16,625
Loan fees	2,397		2,329
General and administrative	5,058		4,126
Tax expenses	711		1,387
Employee compensation:
Compensation and benefits	16,344		14,617
Stock-based compensation	3,134		3,186
Total employee compensation	19,478		17,803
Total gross operating expenses	45,268		42,270
Expenses allocated to the Adviser Subsidiary	(2,877)		(2,679)
Total net operating expenses	42,391		39,591
Net investment income	79,162		65,499
Net realized gain (loss) and net change in unrealized appreciation (depreciation):
Net realized gain (loss):
Non-control/Non-affiliate investments	8,168		7,960


Total net realized gain (loss)	8,168		7,960
Net change in unrealized appreciation (depreciation):
Non-control/Non-affiliate investments	6,463		12,259
Control investments	(2,829)		8,846

Total net change in unrealized appreciation (depreciation)	3,634		21,105
Total net realized gain (loss) and net change in unrealized appreciation (depreciation)	11,802		29,065
Net increase (decrease) in net assets resulting from operations	$	90,964	$	94,564

Net investment income before gains and losses per common share:
Basic	$	0.50	$	0.48
Change in net assets resulting from operations per common share:
Basic	$	0.57	$	0.69
Diluted	$	0.57	$	0.68
Weighted average shares outstanding:
Basic	157,445		135,252
Diluted	157,920		137,056
Distributions paid per common share:
Basic	$	0.48	$	0.47

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)


(in thousands)	Common Stock			Capital in excess of par value		Distributable Earnings (loss)		Net Assets
For the Three Months Ended March 31, 2024	Shares	Par Value











Balance as of December 31, 2023	157,758	$	158	$	1,662,535	$	140,013	$	1,802,706
Net increase (decrease) in net assets resulting from operations	—	—		—		90,964		90,964
Public offering, net of offering expenses	3,725	4		66,404		—		66,408
Issuance of common stock under equity-based award plans	858	1		477		—		478
Shares retired on vesting of equity-based awards	(210)	—		(3,179)		—		(3,179)
Distributions reinvested in common stock	99	—		1,780		—		1,780
Distributions	—	—		—		(76,031)		(76,031)
Stock-based compensation (1)	—	—		2,812		—		2,812
Balance as of March 31, 2024	162,230	$	163	$	1,730,829	$	154,946	$	1,885,938

(1)Stock-based compensation includes $35 thousand of restricted stock and option expense related to director compensation for the three months ended March 31, 2024.


(in thousands)	Common Stock			Capital in excess of par value		Distributable Earnings (loss)		Net Assets
For the Three Months Ended March 31, 2023	Shares	Par Value
Balance as of December 31, 2022	133,045	$	134	$	1,341,416	$	59,909	$	1,401,459
Net increase (decrease) in net assets resulting from operations	—	—		—		94,564		94,564
Public offering, net of offering expenses	4,659	4		65,338		—		65,342
Issuance of common stock under equity-based award plans	947	1		138		—		139
Shares retired on vesting of equity-based awards	(116)	—		(1,517)		—		(1,517)
Distributions reinvested in common stock	61	—		940		—		940
Distributions	—	—		—		(64,774)		(64,774)
Stock-based compensation (1)	—	—		2,853		—		2,853
Balance as of March 31, 2023	138,596	$	139	$	1,409,168	$	89,699	$	1,499,006

(1)Stock-based compensation includes $20 thousand of restricted stock and option expense related to director compensation for the three months ended March 31, 2023.

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


(in thousands)	For the Three Months Ended March 31,
	2024		2023
Cash flows provided by (used in) operating activities:
Net increase (decrease) in net assets resulting from operations	$	90,964	$	94,564
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments	(605,239)		(476,162)
Fundings assigned to Adviser Funds	113,379		120,846
Principal and fee repayments received and proceeds from the sale of debt investments	174,100		207,466
Proceeds from the sale of equity and warrant investments	12,026		14,972
Net change in unrealized (appreciation) depreciation	(3,634)		(21,105)
Net realized (gain) loss	(8,168)		(7,960)
Accretion of paid-in-kind interest	(9,897)		(5,528)
Accretion of loan discounts	(901)		(1,636)
Accretion of loan exit fees	(6,736)		(5,924)
Change in loan income, net of collections	4,529		5,995
Unearned fees related to unfunded commitments	841		(110)
Amortization of debt fees and issuance costs	1,759		1,723
Depreciation and amortization	186		44
Stock-based compensation and amortization of restricted stock grants (1)	2,812		2,853
Change in operating assets and liabilities:
Interest receivable	(2,743)		201
Other assets	(2,915)		3,565
Accrued liabilities	(1,254)		(14,678)
Net cash (used in) operating activities	(240,891)		(80,874)

Cash flows provided by (used in) investing activities:
Purchases of capital equipment	(292)		(94)
Net cash (used in) investing activities	(292)		(94)

Cash flows provided by (used in) financing activities:
Issuance of common stock	67,275		66,172
Offering expenses	(867)		(830)
Retirement of employee shares, net	(2,701)		(1,378)
Distributions paid	(74,251)		(63,834)
Issuance of debt	403,000		225,000
Repayment of debt	(207,000)		(86,000)
Fees paid for credit facilities and debentures	—		(5,090)
Net cash provided by financing activities	185,456		134,040
Net increase (decrease) in cash, cash equivalents, and restricted cash	(55,727)		53,072
Cash, cash equivalents, and restricted cash at beginning of period	116,013		25,876
Cash, cash equivalents, and restricted cash at end of period	$	60,286	$	78,948

Supplemental disclosures of cash flow information and non-cash investing and financing activities:
Interest paid	$	24,084	$	23,840
Income tax, including excise tax, paid	$	4,902	$	4,763
Distributions reinvested	$	1,780	$	940

(1)Stock-based compensation includes $35 thousand and $20 thousand of restricted stock and option expense related to director compensation for the three months ended March 31, 2024 and 2023, 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:


(in thousands)	For the Three Months Ended March 31,
	2024		2023
Cash and cash equivalents	$	50,176	$	71,129
Restricted cash	10,110		7,819
Total cash, cash equivalents, and restricted cash presented in the Consolidated Statements of Cash Flows	$	60,286	$	78,948

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

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Debt Investments
Biotechnology Tools
Alamar Biosciences, Inc.	Senior Secured	June 2026	Prime + 3.00%, Floor rate 6.50%, PIK Interest 1.00%, 5.95% Exit Fee	$	15,087	$	15,223	$	15,714	(12)(13)(14)
PathAI, Inc.	Senior Secured	January 2027	Prime + 2.15%, Floor rate 9.15%, 7.85% Exit Fee	$	32,000	32,144		32,807		(12)
Subtotal: Biotechnology Tools (2.57%)*						47,367		48,521
Communications & Networking
Aryaka Networks, Inc.	Senior Secured	July 2026	Prime + 3.25%, Floor rate 6.75%, PIK Interest 1.05%, 3.55% Exit Fee	$	25,215	25,097		26,113		(12)(14)(19)
Cytracom Holdings LLC	Senior Secured	February 2025	3-month SOFR + 10.50%, Floor rate 11.40%	$	3,260	3,237		3,237		(11)(17)(18)

Subtotal: Communications & Networking (1.56%)*						28,334		29,350
Consumer & Business Services
Altumint, Inc.	Senior Secured	December 2027	Prime + 3.65%, Floor rate 12.15%, 2.50% Exit Fee	$	10,000	9,921		9,921		(15)(17)
AppDirect, Inc.	Senior Secured	April 2026	Prime + 5.50%, Floor rate 8.75%, 7.12% Exit Fee	$	55,790	57,914		60,132		(12)
Carwow LTD	Senior Secured	December 2027	Prime + 4.70%, Floor rate 11.45%, PIK Interest 1.45%, 4.95% Exit Fee	£	20,137	27,388		25,426		(5)(10)(14)

Houzz, Inc.	Convertible Debt	May 2028	PIK Interest 8.50%	$	23,841	23,841		24,227		(9)(14)
Jobandtalent USA, Inc.	Senior Secured	February 2025	1-month SOFR + 8.86%, Floor rate 9.75%, 3.00% Exit Fee	$	14,000	14,161		14,161		(5)(10)
Plentific Ltd	Senior Secured	October 2026	Prime + 2.55%, Floor rate 11.05%, 2.95% Exit Fee	$	875	857		863		(5)(10)(17)
Provi	Senior Secured	December 2026	Prime + 4.40%, Floor rate 10.65%, 2.95% Exit Fee	$	15,000	14,948		15,228		(15)
Rhino Labs, Inc.	Senior Secured	June 2024	Prime + 5.50%, Floor rate 8.75%, PIK Interest 2.25%	$	3,019	3,017		3,025		(14)(15)
Riviera Partners LLC	Senior Secured	April 2027	3-month SOFR + 8.26%, Floor rate 9.26%	$	36,775	36,279		34,500		(17)(18)
RVShare, LLC	Senior Secured	December 2026	3-month SOFR + 5.50%, Floor rate 6.50%, PIK Interest 4.00%	$	29,169	28,742		29,299		(13)(14)(15)
SeatGeek, Inc.	Senior Secured	May 2026	Prime + 7.00%, Floor rate 10.50%, PIK Interest 0.50%, 4.00% Exit Fee	$	25,230	25,187		26,237		(11)(14)(16)
	Senior Secured	July 2026	Prime + 2.50%, Floor rate 10.75%, PIK Interest 0.50%, 3.00% Exit Fee	$	77,740	77,309		80,073		(12)(14)(16)

Total SeatGeek, Inc.				$	102,970	102,496		106,310
Skyword, Inc.	Senior Secured	November 2026	Prime + 2.75%, Floor rate 9.25%, PIK Interest 1.75%, 3.00% Exit Fee	$	8,555	8,604		8,770		(13)(14)
Tectura Corporation	Senior Secured	July 2024	FIXED 8.25%	$	8,250	8,250		8,250		(7)


Thumbtack, Inc.	Senior Secured	March 2028	Prime + 2.45%, Floor rate 10.95%, PIK Interest 1.50%	$	20,704	20,284		20,284		(17)
Udacity, Inc.	Senior Secured	September 2024	Prime + 4.50%, Floor rate 7.75%, PIK Interest 2.00%, 3.00% Exit Fee	$	53,268	54,440		54,440		(12)(14)
Veem, Inc.	Senior Secured	March 2025	Prime + 4.00%, Floor rate 7.25%, PIK Interest 1.25%, 4.50% Exit Fee	$	5,123	5,223		5,223		(13)(14)
	Senior Secured	March 2025	Prime + 4.70%, Floor rate 7.95%, PIK Interest 1.50%, 4.50% Exit Fee	$	5,129	5,237		5,237		(12)(14)
Total Veem, Inc.				$	10,252	10,460		10,460
Worldremit Group Limited	Senior Secured	February 2026	3-month SOFR + 9.40%, Floor rate 10.25%	$	91,295	90,646		90,875		(5)(10)(11)(12)(16) (19)
	Senior Secured	February 2026	1-month SOFR + 9.35%, Floor rate 10.25%	$	6,466	6,411		6,429		(5)(10)(16)(19)
Total Worldremit Group Limited				$	97,761	97,057		97,304
Subtotal: Consumer & Business Services (27.71%)*						518,659		522,600
Diversified Financial Services
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)	Unsecured	September 2026	FIXED 11.50%	$	25,000	24,689		24,689		(7)(20)



	Unsecured	September 2026	FIXED 11.95%	$	10,000	9,830		9,829		(7)(20)
Total Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)				$	35,000	34,519		34,518

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Hercules Adviser LLC	Unsecured	June 2025	FIXED 5.00%	$	12,000	$	12,000	$	12,000	(7)(23)

Next Insurance, Inc.	Senior Secured	February 2028	Prime - (1.50%), Floor rate 4.75%, PIK Interest 5.50%	$	10,616	10,439		10,767		(13)(14)(17)(19)
Subtotal: Diversified Financial Services (3.04%)*						56,958		57,285
Drug Discovery & Development
Akero Therapeutics, Inc.	Senior Secured	March 2027	Prime + 3.65%, Floor rate 7.65%, 5.85% Exit Fee	$	17,500	17,412		17,703		(10)(13)
Aldeyra Therapeutics, Inc.	Senior Secured	October 2024	Prime + 3.10%, Floor rate 8.60%, 8.90% Exit Fee	$	15,000	15,212		15,212		(11)

AmplifyBio, LLC	Senior Secured	January 2027	Prime + 2.50%, Floor rate 9.50%, Cap rate 10.75%, 5.85% Exit Fee	$	24,000	24,243		24,584		(15)
ATAI Life Sciences N.V.	Senior Secured	August 2026	Prime + 4.55%, Floor rate 8.55%, 6.95% Exit Fee	$	10,500	10,749		10,934		(5)(10)(17)
Axsome Therapeutics, Inc.	Senior Secured	January 2028	Prime + 2.20%, Floor rate 9.95%, Cap rate 10.70%, 5.78% Exit Fee	$	143,350	144,074		150,228		(10)(11)(12)(16)(17)
Bicycle Therapeutics PLC	Senior Secured	July 2025	Prime + 4.55%, Floor rate 8.05%, Cap rate 9.05%, 5.00% Exit Fee	$	11,500	11,912		11,857		(5)(10)(11)(12)

bluebird bio, Inc.	Senior Secured	April 2029	Prime + 1.45%, Floor rate 9.95%, PIK Interest 2.45%, 4.95% Exit Fee	$	64,500	62,111		62,111
Braeburn, Inc.	Senior Secured	October 2028	Prime + 2.45%, Floor rate 10.95%, PIK Interest 1.10%, 5.45% Exit Fee	$	52,748	52,477		53,544		(14)


COMPASS Pathways plc	Senior Secured	July 2027	Prime + 1.50%, Floor rate 9.75%, PIK Interest 1.40%, 4.75% Exit Fee	$	24,230	23,993		24,837		(5)(10)(14)
Corium, Inc.	Senior Secured	September 2026	Prime + 5.70%, Floor rate 8.95%, 7.75% Exit Fee	$	105,225	108,105		109,343		(13)(16)
Curevo, Inc.	Senior Secured	June 2027	Prime + 1.70%, Floor rate 9.70%, 6.95% Exit Fee	$	10,000	9,892		9,825		(15)(17)
Eloxx Pharmaceuticals, Inc.	Senior Secured	April 2025	Prime + 6.25%, Floor rate 9.50%, 4.00% Exit Fee	$	530	1,028		950		(15)
enGene, Inc.	Senior Secured	January 2028	Prime + 0.75%, Floor rate 9.25%, Cap rate 9.75%, PIK Interest 1.15%, 5.50% Exit Fee	$	15,785	15,656		15,970		(5)(10)(14)
G1 Therapeutics, Inc.	Senior Secured	November 2026	Prime + 5.65%, Floor rate 9.15%, 10.31% Exit Fee	$	32,399	33,304		33,841		(11)(12)(15)
Geron Corporation	Senior Secured	April 2025	Prime + 4.50%, Floor rate 9.00%, 6.55% Exit Fee	$	30,200	31,287		31,473		(10)(12)(13)
Gritstone Bio, Inc.	Senior Secured	July 2027	Prime + 3.15%, Floor rate 7.15%, Cap rate 8.65%, PIK Interest 2.00%, 5.75% Exit Fee	$	30,680	30,975		30,415		(13)(14)
Heron Therapeutics, Inc.	Senior Secured	February 2026	Prime + 1.70%, Floor rate 9.95%, PIK Interest 1.50%, 3.00% Exit Fee	$	20,171	19,955		20,397		(14)(15)(17)
Hibercell, Inc.	Senior Secured	May 2025	Prime + 5.40%, Floor rate 8.65%, 4.95% Exit Fee	$	10,505	11,147		11,032		(13)(15)
HilleVax, Inc.	Senior Secured	May 2027	Prime + 1.05%, Floor rate 4.55%, Cap rate 6.05%, PIK Interest 2.85%, 7.15% Exit Fee	$	20,672	20,932		20,701		(14)(15)(17)

Kura Oncology, Inc.	Senior Secured	November 2027	Prime + 2.40%, Floor rate 8.65%, 15.13% Exit Fee	$	5,500	5,554		5,777		(10)(15)
Locus Biosciences, Inc.	Senior Secured	July 2025	Prime + 6.10%, Floor rate 9.35%, 4.95% Exit Fee	$	4,630	4,912		4,936		(15)
Madrigal Pharmaceutical, Inc.	Senior Secured	May 2027	Prime + 2.45%, Floor rate 8.25%, 5.35% Exit Fee	$	78,200	79,108		82,663		(10)(13)(17)
Phathom Pharmaceuticals, Inc.	Senior Secured	December 2027	Prime + 1.35%, Floor rate 9.85%, PIK Interest 2.15%, 7.06% Exit Fee	$	136,480	137,990		135,839		(10)(12)(14)(15)(16) (17)(22)
Redshift Bioanalytics, Inc.	Senior Secured	January 2026	Prime + 4.25%, Floor rate 7.50%, 3.80% Exit Fee	$	5,000	5,072		5,148		(15)
Replimune Group, Inc.	Senior Secured	October 2027	Prime + 1.75%, Floor rate 7.25%, Cap rate 9.00%, PIK Interest 1.50%, 4.95% Exit Fee	$	31,526	31,648		33,011		(10)(12)(13)(14)
Tarsus Pharmaceuticals, Inc.	Senior Secured	February 2027	Prime + 4.45%, Floor rate 8.45%, Cap rate 11.45%, 4.75% Exit Fee	$	12,375	12,524		13,148		(10)(13)
TG Therapeutics, Inc.	Senior Secured	January 2026	Prime + 1.20%, Floor rate 8.95%, PIK Interest 2.25%, 5.69% Exit Fee	$	66,145	67,153		68,838		(10)(11)(12)(14)(17)
uniQure B.V.	Senior Secured	January 2027	Prime + 4.70%, Floor rate 7.95%, 6.10% Exit Fee	$	70,000	71,405		73,373		(5)(10)(11)(12)


Verona Pharma, Inc.	Senior Secured	December 2028	1-month SOFR + 5.85%, Floor rate 11.19%, Cap rate 13.19%, 3.50% Exit Fee	$	15,750	15,672		15,672		(5)(10)
Viridian Therapeutics, Inc.	Senior Secured	October 2026	Prime + 4.20%, Floor rate 7.45%, Cap rate 8.95%, 6.00% Exit Fee	$	8,000	8,100		8,057		(10)(13)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
X4 Pharmaceuticals, Inc.	Senior Secured	October 2026	Prime + 3.15%, Floor rate 10.15%, 3.80% Exit Fee	$	55,000	$	54,921	$	55,753	(11)(12)(13)
Subtotal: Drug Discovery & Development (61.36%)*						1,138,523		1,157,172
Electronics & Computer Hardware
Locus Robotics Corp.	Senior Secured	June 2026	Prime + 4.50%, Floor rate 8.00%, 4.00% Exit Fee	$	18,281	18,396		19,114		(19)
Shield AI, Inc.	Senior Secured	February 2029	Prime + 0.85%, Floor rate 6.85%, Cap rate 9.60%, PIK Interest 2.50%, 2.50% Exit Fee	$	56,316	55,770		55,770		(14)(17)
Subtotal: Electronics & Computer Hardware (3.97%)*						74,166		74,884
Healthcare Services, Other
Better Therapeutics, Inc.	Senior Secured	August 2025	Prime + 5.70%, Floor rate 8.95%, 5.95% Exit Fee	$	10,838	11,296		5,215		(8)(15)
Blue Sprig Pediatrics, Inc.	Senior Secured	November 2026	1-month SOFR + 5.11%, Floor rate 6.00%, PIK Interest 4.45%	$	69,811	69,105		68,322		(11)(12)(13)(14)
Carbon Health Technologies, Inc.	Senior Secured	March 2026	Prime - (1.50%), Floor rate 7.00%, PIK Interest 7.00%, 5.64% Exit Fee	$	47,789	49,026		47,835		(11)(13)(14)
Curana Health Holdings, LLC	Senior Secured	January 2028	Prime + 1.45%, Floor rate 9.20%, 4.95% Exit Fee	$	20,000	19,998		20,053		(17)(19)
Equality Health, LLC	Senior Secured	February 2026	Prime + 6.25%, Floor rate 9.50%, PIK Interest 1.55%	$	53,762	53,514		54,031		(11)(12)(14)
Main Street Rural, Inc.	Senior Secured	July 2027	Prime + 1.95%, Floor rate 9.95%, 6.85% Exit Fee	$	28,000	28,071		28,172		(15)(17)
Marathon Health, LLC	Senior Secured	February 2029	Prime - (0.90%), Floor rate 7.10%, PIK Interest 4.00%, 3.00% Exit Fee	$	154,394	152,970		152,970		(14)(16)(17)
Modern Life, Inc.	Senior Secured	February 2027	Prime + 2.75%, Floor rate 8.75%, 5.00% Exit Fee	$	13,000	12,952		13,287		(13)(17)
Recover Together, Inc.	Senior Secured	July 2027	Prime + 1.90%, Floor rate 10.15%, 7.50% Exit Fee	$	40,000	39,782		40,880
Strive Health Holdings, LLC	Senior Secured	September 2027	Prime + 0.70%, Floor rate 9.20%, 5.95% Exit Fee	$	12,000	11,915		12,126		(15)(17)
Vida Health, Inc.	Senior Secured	March 2026	9.20% + Lower of (Prime - 3.25%) or 1.00%, Floor rate 9.20%, Cap rate 10.20%, 4.95% Exit Fee	$	36,500	36,544		36,002		(11)
Subtotal: Healthcare Services, Other (25.39%)*						485,173		478,893
Information Services
Capella Space Corp.	Senior Secured	November 2025	Prime + 5.00%, Floor rate 8.25%, PIK Interest 1.10%, 7.00% Exit Fee	$	20,534	21,342		21,541		(14)(15)
Checkr Group, Inc.	Senior Secured	August 2028	Prime + 1.45%, Floor rate 8.00%, PIK Interest 2.00%, 2.75% Exit Fee	$	47,862	47,758		50,549		(12)(14)(17)
Saama Technologies, LLC	Senior Secured	July 2027	Prime + 0.70%, Floor rate 8.95%, PIK Interest 2.00%, 2.95% Exit Fee	$	11,784	11,711		12,127		(12)(14)(17)
Signal Media Limited	Senior Secured	June 2025	Prime + 5.50%, Floor rate 9.00%, Cap rate 12.00%, 3.45% Exit Fee	$	6,150	6,134		6,212		(5)(10)
Yipit, LLC	Senior Secured	September 2026	1-month SOFR + 8.42%, Floor rate 9.32%	$	31,875	31,512		31,875		(17)(18)
Subtotal: Information Services (6.49%)*						118,457		122,304
Manufacturing Technology
Bright Machines, Inc.	Senior Secured	May 2025	Prime + 4.00%, Floor rate 9.50%, 5.00% Exit Fee	$	6,446	6,767		7,219		(13)


Subtotal: Manufacturing Technology (0.38%)*						6,767		7,219
Media/Content/Info
Fever Labs, Inc.	Senior Secured	September 2026	Prime + 3.50%, Floor rate 9.00%, 4.00% Exit Fee	$	6,667	6,700		6,790		(19)
	Senior Secured	September 2025	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,000	1,019		1,027		(19)
	Senior Secured	December 2025	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,167	1,183		1,191		(19)
	Senior Secured	March 2026	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,333	1,343		1,350		(19)
	Senior Secured	June 2026	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,500	1,491		1,498		(19)
Total Fever Labs, Inc.				$	11,667	11,736		11,856
Subtotal: Media/Content/Info (0.63%)*						11,736		11,856

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (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
Senseonics Holdings, Inc.	Senior Secured	September 2027	Prime + 1.40%, Floor rate 9.90%, 6.95% Exit Fee	$	30,625	$	30,310	$	30,480	(11)
Sight Sciences, Inc.	Senior Secured	July 2028	Prime + 2.35%, Floor rate 10.35%, 5.95% Exit Fee	$	24,500	24,055		24,055		(17)
Subtotal: Medical Devices & Equipment (2.89%)*						54,365		54,535
Software
3GTMS, LLC	Senior Secured	February 2025	3-month SOFR + 9.86%, Floor rate 10.76%	$	13,562	13,498		13,498		(11)(17)(18)
	Senior Secured	February 2025	3-month SOFR + 6.96%, Floor rate 7.86%	$	2,983	2,973		2,973		(17)(18)
Total 3GTMS, LLC				$	16,545	16,471		16,471
Agilence, Inc.	Senior Secured	October 2026	1-month BSBY + 9.00%, Floor rate 10.00%	$	9,189	9,029		9,212		(12)(17)(18)
Alchemer LLC	Senior Secured	May 2028	1-month SOFR + 8.14%, Floor rate 9.14%	$	21,353	20,970		21,879		(13)(18)
Allvue Systems, LLC	Senior Secured	September 2029	3-month SOFR + 7.25%, Floor rate 8.25%	$	36,410	35,556		36,385		(17)
Annex Cloud	Senior Secured	February 2027	1-month BSBY + 10.00%, Floor rate 11.00%	$	11,549	11,375		11,562		(13)
Armis, Inc.	Senior Secured	March 2028	Prime + 0.00%, Floor rate 7.50%, PIK Interest 2.00%, 2.25% Exit Fee	$	40,000	39,618		39,618		(17)
Automation Anywhere, Inc.	Senior Secured	September 2027	Prime + 4.25%, Floor rate 9.00%, 4.50% Exit Fee	$	19,600	19,423		20,313		(11)(17)(19)
Babel Street	Senior Secured	December 2027	6-month SOFR + 8.01%, Floor rate 9.01%	$	65,500	63,975		65,806		(15)(17)(18)
Brain Corporation	Senior Secured	April 2026	Prime + 3.70%, Floor rate 9.20%, PIK Interest 1.00%, 3.95% Exit Fee	$	30,492	30,869		31,509		(13)(14)(15)(17)

Catchpoint Systems, Inc.	Senior Secured	November 2025	3-month SOFR + 9.41%, Floor rate 11.81%	$	10,047	9,922		9,993		(18)
Ceros, Inc.	Senior Secured	September 2026	3-month SOFR + 8.99%, Floor rate 9.89%	$	22,815	22,474		23,023		(17)(18)


Constructor.io Corporation	Senior Secured	July 2027	1-month SOFR + 8.44%, Floor rate 9.44%	$	4,688	4,596		4,763		(13)(17)(18)
Convoy, Inc.	Senior Secured	March 2026	Prime + 3.20%, Floor rate 6.45%, PIK Interest 1.95%, 4.55% Exit Fee	$	31,049	30,916		—		(8)(14)(19)
Copper CRM, Inc	Senior Secured	March 2025	Prime + 4.50%, Floor rate 8.25%, Cap rate 10.25%, PIK Interest 1.95%, 3.77% Exit Fee	$	8,762	8,962		8,962		(11)(14)
Cutover, Inc.	Senior Secured	October 2025	Prime + 5.20%, Floor rate 9.95%, 4.95% Exit Fee	$	5,500	5,573		5,747		(5)(10)(12)(17)
	Senior Secured	October 2025	Prime + 5.20%, Floor rate 9.95%, 4.95% Exit Fee	£	1,250	1,569		1,667		(5)(10)(12)(17)
Total Cutover, Inc.						$	7,142	$	7,414
Cybermaxx Intermediate Holdings, Inc.	Senior Secured	August 2026	6-month SOFR + 8.63%, Floor rate 9.38%	$	7,896	7,781		7,782		(13)(17)
	Senior Secured	August 2026	6-month SOFR + 12.36%, Floor rate 13.11%	$	2,527	2,479		2,537		(13)(17)
Total Cybermaxx Intermediate Holdings, Inc.				$	10,423	10,260		10,319
Dashlane, Inc.	Senior Secured	December 2027	Prime + 3.05%, Floor rate 11.55%, PIK Interest 1.10%, 6.35% Exit Fee	$	42,967	43,395		43,395		(11)(13)(14)(17)(19)
Dispatch Technologies, Inc.	Senior Secured	April 2028	3-month SOFR + 8.01%, Floor rate 8.76%	$	8,125	7,956		7,876		(17)(18)


DroneDeploy, Inc.	Senior Secured	July 2026	Prime + 4.50%, Floor rate 8.75%, 4.00% Exit Fee	$	6,250	6,125		6,239		(13)(17)
Eigen Technologies Ltd.	Senior Secured	April 2025	Prime + 5.10%, Floor rate 8.35%, 2.95% Exit Fee	$	3,750	3,817		2,991		(5)(10)
Elation Health, Inc.	Senior Secured	March 2026	Prime + 4.25%, Floor rate 9.00%, PIK Interest 1.95%, 3.95% Exit Fee	$	12,688	12,394		12,867		(14)(17)(19)

Flight Schedule Pro, LLC	Senior Secured	October 2027	1-month SOFR + 7.80%, Floor rate 8.70%	$	6,587	6,429		6,679		(17)(18)
Fortified Health Security	Senior Secured	December 2027	1-month SOFR + 7.64%, Floor rate 8.54%	$	7,000	6,858		7,012		(11)(17)(18)
Harness, Inc.	Senior Secured	March 2029	Prime - (2.25%), Floor rate 5.25%, Cap rate 6.50%, PIK Interest 6.25%, 1.00% Exit Fee	$	17,325	17,101		17,101		(17)(19)
iGrafx, LLC	Senior Secured	May 2027	1-month SOFR + 8.61%, Floor rate 9.51%	$	4,987	4,894		4,935		(18)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Ikon Science Limited	Senior Secured	October 2024	3-month SOFR + 9.26%, Floor rate 10.00%	$	6,125	$	6,080	$	6,080	(5)(10)(17)(18)

Khoros (p.k.a Lithium Technologies)	Senior Secured	January 2025	3-month SOFR + 4.50%, Floor rate 5.50%, PIK Interest 4.50%	$	58,449	58,418		51,846		(14)

Leapwork ApS	Senior Secured	February 2026	Prime + 0.25%, Floor rate 7.25%, PIK Interest 1.95%, 2.70% Exit Fee	$	3,832	3,840		3,963		(5)(10)(12)(14)(17)
LinenMaster, LLC	Senior Secured	August 2028	1-month SOFR + 6.25%, Floor rate 7.25%, PIK Interest 2.15%	$	15,170	14,896		15,416		(12)(14)(17)
Loftware, Inc.	Senior Secured	March 2028	3-month SOFR + 7.88%, Floor rate 8.88%	$	26,913	26,355		27,412		(17)(18)
LogicSource	Senior Secured	July 2027	1-month SOFR + 8.93%, Floor rate 9.93%	$	13,300	13,087		13,493		(17)(18)
Marigold Group, Inc. (p.k.a. Campaign Monitor Limited)	Senior Secured	November 2025	3-month SOFR + 9.05%, Floor rate 9.90%	$	33,000	32,741		32,732		(13)(19)
Mobile Solutions Services	Senior Secured	December 2025	6-month SOFR + 9.31%, Floor rate 10.06%	$	18,366	18,144		18,217		(18)
New Relic, Inc.	Senior Secured	November 2030	3-month SOFR + 6.75%, Floor rate 7.75%	$	20,890	20,387		20,387		(17)
Omeda Holdings, LLC	Senior Secured	July 2027	3-month SOFR + 8.05%, Floor rate 9.05%	$	7,706	7,519		7,751		(11)(17)(18)
Onna Technologies, Inc.	Senior Secured	March 2026	Prime + 1.35%, Floor rate 8.85%, PIK Interest 1.75%, 4.45% Exit Fee	$	3,870	3,865		3,967		(14)

Reveleer	Senior Secured	February 2027	Prime + 0.65%, Floor rate 9.15%, PIK Interest 2.00%, 5.05% Exit Fee	$	16,027	15,932		15,932		(14)(15)(17)
ShadowDragon, LLC	Senior Secured	December 2026	3-month SOFR + 8.98%, Floor rate 9.88%	$	6,000	5,891		5,930		(17)(18)
Simon Data, Inc.	Senior Secured	March 2027	Prime + 1.00%, Floor rate 8.75%, PIK Interest 1.95%, 2.48% Exit Fee	$	12,893	12,855		12,922		(12)(14)
Sisense Ltd.	Senior Secured	July 2027	Prime + 1.50%, Floor rate 9.50%, PIK Interest 1.95%, 5.95% Exit Fee	$	35,002	34,898		35,261		(5)(10)(14)
Streamline Healthcare Solutions	Senior Secured	March 2028	3-month SOFR + 7.25%, Floor rate 8.25%	$	13,200	12,965		13,422		(17)(18)
	Senior Secured	March 2028	6-month SOFR + 7.25%, Floor rate 8.25%	$	4,400	4,308		4,468		(17)(18)
Total Streamline Healthcare Solutions				$	17,600	17,273		17,890
Sumo Logic, Inc.	Senior Secured	May 2030	3-month SOFR + 6.50%, Floor rate 7.50%	$	23,000	22,474		23,341		(17)
Suzy, Inc.	Senior Secured	August 2027	Prime + 1.75%, Floor rate 10.00%, PIK Interest 1.95%, 3.45% Exit Fee	$	12,124	11,931		12,246		(14)(15)(17)

ThreatConnect, Inc.	Senior Secured	May 2026	6-month SOFR + 9.25%, Floor rate 10.00%	$	10,920	10,748		10,920		(17)(18)
Tipalti Solutions Ltd.	Senior Secured	April 2027	Prime + 0.45%, Floor rate 7.95%, PIK Interest 2.00%, 3.75% Exit Fee	$	10,703	10,661		11,057		(5)(10)(14)(17)

Zappi, Inc.	Senior Secured	December 2027	3-month SOFR + 8.03%, Floor rate 9.03%	$	12,825	12,578		12,953		(5)(10)(13)(17)(18)
Zimperium, Inc.	Senior Secured	May 2027	3-month SOFR + 8.31%, Floor rate 9.31%	$	14,790	14,573		14,864		(17)(18)
Subtotal: Software (42.47%)*						825,673		800,904
Sustainable and Renewable Technology
Ampion, PBC	Senior Secured	May 2025	Prime + 4.70%, Floor rate 7.95%, PIK Interest 1.45%, 3.78% Exit Fee	$	3,940	3,988		3,964		(13)(14)
Electric Hydrogen Co.	Senior Secured	May 2028	Prime + 2.25%, Floor rate 10.75%, PIK Interest 1.25%, 4.25% Exit Fee	$	12,500	11,917		11,917		(15)(19)
Pineapple Energy LLC	Senior Secured	June 2027	FIXED 10.00%	$	1,581	1,581		1,566		(19)
Subtotal: Sustainable and Renewable Technology (0.93%)*						17,486		17,447
Total: Debt Investments (179.38%)*						$	3,383,664	$	3,382,970

Portfolio Company

Type of
Investment

Acquisition Date(4)

Series (3)

Cost (2)

Value

Footnotes

Equity Investments

Biotechnology Tools

Alamar Biosciences, Inc.

Equity

2/21/2024

Preferred Series C

503,778

1,500

1,504

Subtotal: Biotechnology Tools (0.08%)*

1,500

1,504

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Consumer & Business Products
Fabletics, Inc.	Equity	4/30/2010	Common Stock	42,989	$	128	$	109
	Equity	7/16/2013	Preferred Series B	130,191	1,101		686
Total Fabletics, Inc.				173,180	1,229		795
Grove Collaborative, Inc.	Equity	4/30/2021	Common Stock	12,260	433		20		(4)
Savage X Holding, LLC	Equity	4/30/2010	Class A Units	172,328	13		792



TFG Holding, Inc.	Equity	4/30/2010	Common Stock	173,180	89		658
Subtotal: Consumer & Business Products (0.12%)*					1,764		2,265
Consumer & Business Services
Carwow LTD	Equity	12/15/2021	Preferred Series D-4	199,742	1,151		580		(5)(10)
DoorDash, Inc.	Equity	12/20/2018	Common Stock	16,996	196		2,341		(4)
Lyft, Inc.	Equity	12/26/2018	Common Stock	100,738	5,263		1,949		(4)
Nerdy Inc.	Equity	9/17/2021	Common Stock	100,000	1,000		291		(4)
OfferUp, Inc.	Equity	10/25/2016	Preferred Series A	286,080	1,663		458
	Equity	10/25/2016	Preferred Series A-1	108,710	632		174
Total OfferUp, Inc.				394,790	2,295		632
Oportun	Equity	6/28/2013	Common Stock	48,365	577		118		(4)
Reischling Press, Inc.	Equity	7/31/2020	Common Stock	3,095	39		—
Rhino Labs, Inc.	Equity	1/24/2022	Common Stock	7,063	1,000		—
Tectura Corporation	Equity	5/23/2018	Common Stock	414,994,863	900		11		(7)
	Equity	6/6/2016	Preferred Series BB	1,000,000	—		24		(7)
	Equity	12/29/2023	Preferred Series C	3,235,298	13,263		3,832		(7)
Total Tectura Corporation				419,230,161	14,163		3,867
Subtotal: Consumer & Business Services (0.52%)*					25,684		9,778
Diversified Financial Services
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)	Equity	3/1/2018	Member Units	1	34,006		23,413		(7)(20)



Hercules Adviser LLC	Equity	3/26/2021	Member Units	1	35		29,884		(7)(23)
Newfront Insurance Holdings, Inc.	Equity	9/30/2021	Preferred Series D-2	210,282	403		320
Subtotal: Diversified Financial Services (2.84%)*					34,444		53,617
Drug Delivery

Aytu BioScience, Inc.	Equity	3/28/2014	Common Stock	680	1,500		2		(4)
BioQ Pharma Incorporated	Equity	12/8/2015	Preferred Series D	165,000	500		—
PDS Biotechnology Corporation	Equity	4/6/2015	Common Stock	2,498	309		10		(4)
Talphera, Inc.	Equity	12/10/2018	Common Stock	8,836	1,329		9		(4)
Subtotal: Drug Delivery (0.00%)*					3,638		21

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Drug Discovery & Development
Akero Therapeutics, Inc.	Equity	3/8/2024	Common Stock	34,483	$	1,000	$	871	(4)(10)
Avalo Therapeutics, Inc.	Equity	8/19/2014	Common Stock	42	1,000		1		(4)
Axsome Therapeutics, Inc.	Equity	5/9/2022	Common Stock	127,021	4,165		10,136		(4)(10)(16)
Bicycle Therapeutics PLC	Equity	10/5/2020	Common Stock	98,100	1,871		2,443		(4)(5)(10)
BridgeBio Pharma, Inc.	Equity	6/21/2018	Common Stock	231,329	2,255		7,153		(4)
Cyclo Therapeutics, Inc.	Equity	4/6/2021	Common Stock	134	42		—		(4)(10)
Dare Biosciences, Inc.	Equity	1/8/2015	Common Stock	13,550	1,000		7		(4)
Dynavax Technologies	Equity	7/22/2015	Common Stock	20,000	550		248		(4)(10)
Gritstone Bio, Inc.	Equity	10/26/2022	Common Stock	442,477	1,000		1,137		(4)
Heron Therapeutics, Inc.	Equity	7/25/2023	Common Stock	364,963	500		1,011		(4)
Hibercell, Inc.	Equity	5/7/2021	Preferred Series B	3,466,840	4,250		2,292		(15)
HilleVax, Inc.	Equity	5/3/2022	Common Stock	235,295	4,000		3,913		(4)
Humanigen, Inc.	Equity	3/31/2021	Common Stock	43,243	800		—		(4)(10)
Kura Oncology, Inc.	Equity	6/16/2023	Common Stock	47,826	550		1,020		(4)(10)
Madrigal Pharmaceutical, Inc.	Equity	9/29/2023	Common Stock	5,100	774		1,362		(4)(10)
NorthSea Therapeutics	Equity	12/15/2021	Preferred Series C	983	2,000		1,113		(5)(10)

Phathom Pharmaceuticals, Inc.	Equity	6/9/2023	Common Stock	147,233	1,730		1,564		(4)(10)(16)
Rocket Pharmaceuticals, Ltd.	Equity	8/22/2007	Common Stock	944	1,500		25		(4)
Savara, Inc.	Equity	8/11/2015	Common Stock	11,119	202		55		(4)
Sio Gene Therapies, Inc.	Equity	2/2/2017	Common Stock	16,228	1,262		—
Tarsus Pharmaceuticals, Inc.	Equity	5/5/2022	Common Stock	155,555	2,100		5,654		(4)(10)
uniQure B.V.	Equity	1/31/2019	Common Stock	17,175	332		89		(4)(5)(10)
Valo Health, LLC	Equity	12/11/2020	Preferred Series B	510,308	3,000		3,372
	Equity	10/31/2022	Preferred Series C	170,102	1,000		1,344
Total Valo Health, LLC				680,410	4,000		4,716
Verge Analytics, Inc.	Equity	9/6/2023	Preferred Series C	208,588	1,500		2,123

Viridian Therapeutics, Inc.	Equity	11/6/2023	Common Stock	32,310	400		566		(4)(10)
X4 Pharmaceuticals, Inc.	Equity	11/26/2019	Common Stock	1,566,064	2,945		2,177		(4)
Subtotal: Drug Discovery & Development (2.63%)*					41,728		49,676
Electronics & Computer Hardware
Locus Robotics Corp.	Equity	11/17/2022	Preferred Series F	15,116	650		332
Skydio, Inc.	Equity	3/8/2022	Preferred Series E	248,900	1,500		485
Subtotal: Electronics & Computer Hardware (0.04%)*					2,150		817
Healthcare Services, Other
23andMe, Inc.	Equity	3/11/2019	Common Stock	825,732	5,094		439		(4)
Carbon Health Technologies, Inc.	Equity	3/30/2021	Preferred Series C	217,880	1,687		122
Subtotal: Healthcare Services, Other (0.03%)*					6,781		561

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (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	$	1,397	(4)
Yipit, LLC	Equity	12/30/2021	Preferred Series E	41,021	3,825		4,489
Subtotal: Information Services (0.31%)*					4,440		5,886
Medical Devices & Equipment
Coronado Aesthetics, LLC	Equity	10/15/2021	Common Units	180,000	—		1		(7)

	Equity	10/15/2021	Preferred Series A-2	5,000,000	250		282		(7)

Total Coronado Aesthetics, LLC				5,180,000	250		283




Subtotal: Medical Devices & Equipment (0.02%)*					250		283
Semiconductors
Achronix Semiconductor Corporation	Equity	7/1/2011	Preferred Series C	277,995	160		326
Subtotal: Semiconductors (0.02%)*					160		326
Software
3GTMS, LLC	Equity	8/9/2021	Common Stock	1,000,000	1,000		844
Black Crow AI, Inc. affiliates	Equity	3/24/2021	Preferred Note	3	2,406		2,406		(21)
CapLinked, Inc.	Equity	10/26/2012	Preferred Series A-3	53,614	51		—
Contentful Global, Inc.	Equity	12/22/2020	Preferred Series C	41,000	138		309		(5)(10)
	Equity	11/20/2018	Preferred Series D	108,500	500		857		(5)(10)
Total Contentful Global, Inc.				149,500	638		1,166
DNAnexus, Inc.	Equity	3/21/2014	Preferred Series C	51,948	97		7
Docker, Inc.	Equity	11/29/2018	Common Stock	20,000	4,284		391
Druva Holdings, Inc.	Equity	10/22/2015	Preferred Series 2	458,841	1,000		2,607
	Equity	8/24/2017	Preferred Series 3	93,620	300		558
Total Druva Holdings, Inc.				552,461	1,300		3,165
HighRoads, Inc.	Equity	1/18/2013	Common Stock	190	307		—
Leapwork ApS	Equity	8/25/2023	Preferred Series B2	183,073	250		215		(5)(10)
Lightbend, Inc.	Equity	12/4/2020	Common Stock	38,461	265		18
Nextdoor.com, Inc.	Equity	8/1/2018	Common Stock	1,019,255	4,854		2,293		(4)
Palantir Technologies	Equity	9/23/2020	Common Stock	400,000	2,445		9,204		(4)
SingleStore, Inc.	Equity	11/25/2020	Preferred Series E	580,983	2,000		1,711
	Equity	8/12/2021	Preferred Series F	52,956	280		193
Total SingleStore, Inc.				633,939	2,280		1,904
Verana Health, Inc.	Equity	7/8/2021	Preferred Series E	952,562	2,000		405
ZeroFox, Inc.	Equity	5/7/2020	Common Stock	289,992	101		325		(4)
Subtotal: Software (1.18%)*					22,278		22,343
Sustainable and Renewable Technology
Fulcrum Bioenergy, Inc.	Equity	9/13/2012	Preferred Series C-1	187,265	711		313


Impossible Foods, Inc.	Equity	5/10/2019	Preferred Series E-1	188,611	2,000		375

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
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	304,487	3,153		21		(4)
Pivot Bio, Inc.	Equity	6/28/2021	Preferred Series D	593,080	4,500		2,413


Subtotal: Sustainable and Renewable Technology (0.17%)*					10,966		3,122
Total: Equity Investments (7.96%)*					$	155,783	$	150,199





Warrant Investments
Biotechnology Tools
Alamar Biosciences, Inc.	Warrant	6/21/2022	Preferred Series B	46,197	$	36	$	84
PathAI, Inc.	Warrant	12/23/2022	Common Stock	53,418	460		242		(12)
Subtotal: Biotechnology Tools (0.02%)*					496		326
Communications & Networking
Aryaka Networks, Inc.	Warrant	6/28/2022	Common Stock	229,611	123		132		(12)
Subtotal: Communications & Networking (0.01%)*					123		132
Consumer & Business Products
Gadget Guard, LLC	Warrant	6/3/2014	Common Stock	1,662,441	228		—



The Neat Company	Warrant	8/13/2014	Common Stock	54,054	365		—
Whoop, Inc.	Warrant	6/27/2018	Preferred Series C	686,270	18		411
Subtotal: Consumer & Business Products (0.02%)*					611		411
Consumer & Business Services
Carwow LTD	Warrant	12/14/2021	Common Stock	174,163	164		69		(5)(10)
	Warrant	2/13/2024	Preferred Series D-4	109,257	20		20		(5)(10)
Total Carwow LTD				283,420	184		89
Houzz, Inc.	Warrant	10/29/2019	Common Stock	529,661	20		1
Landing Holdings Inc.	Warrant	3/12/2021	Common Stock	11,806	116		283		(15)
Lendio, Inc.	Warrant	3/29/2019	Preferred Series D	127,032	39		24
Plentific Ltd	Warrant	10/3/2023	Ordinary Shares	19,499	48		53		(5)(10)
Provi	Warrant	12/22/2022	Common Stock	117,042	166		159		(15)
Rhino Labs, Inc.	Warrant	3/12/2021	Common Stock	13,106	470		—		(15)

SeatGeek, Inc.	Warrant	6/12/2019	Common Stock	1,379,761	842		3,659		(16)
Skyword, Inc.	Warrant	11/14/2022	Common Stock	1,607,143	57		111
	Warrant	8/23/2019	Preferred Series B	444,444	83		11
Total Skyword, Inc.				2,051,587	140		122
Snagajob.com, Inc.	Warrant	4/20/2020	Common Stock	600,000	16		—
	Warrant	6/30/2016	Preferred Series A	1,800,000	782		—
	Warrant	8/1/2018	Preferred Series B	1,211,537	62		—
Total Snagajob.com, Inc.				3,611,537	860		—
Thumbtack, Inc.	Warrant	5/1/2018	Common Stock	343,497	985		633		(12)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Udacity, Inc.	Warrant	9/25/2020	Common Stock	486,359	$	218	$	—	(12)
Veem, Inc.	Warrant	3/31/2022	Common Stock	98,428	126		19		(12)
Worldremit Group Limited	Warrant	2/11/2021	Preferred Series D	77,215	129		11		(5)(10)(12)(16)
	Warrant	8/27/2021	Preferred Series E	1,868	26		—		(5)(10)(16)
Total Worldremit Group Limited				79,083	155		11
Subtotal: Consumer & Business Services (0.27%)*					4,369		5,053



Diversified Financial Services
Next Insurance, Inc.	Warrant	2/3/2023	Common Stock	522,930	214		624
Subtotal: Diversified Financial Services (0.03%)*					214		624
Drug Delivery
Aerami Therapeutics Holdings, Inc.	Warrant	6/1/2016	Common Stock	67,069	—		—
BioQ Pharma Incorporated	Warrant	10/27/2014	Common Stock	459,183	2		—
PDS Biotechnology Corporation	Warrant	8/28/2014	Common Stock	3,929	390		—		(4)
Subtotal: Drug Delivery (0.00%)*					392		—
Drug Discovery & Development

Akero Therapeutics, Inc.	Warrant	6/15/2022	Common Stock	32,128	330		505		(4)(10)
AmplifyBio, LLC	Warrant	12/27/2022	Class A Units	69,239	238		158		(15)
Axsome Therapeutics, Inc.	Warrant	9/25/2020	Common Stock	61,004	1,290		1,645		(4)(10)(12)(16)
bluebird bio, Inc.	Warrant	3/15/2024	Common Stock	2,224,137	1,744		1,534		(4)
Cellarity, Inc.	Warrant	12/8/2021	Preferred Series B	100,000	287		231		(15)
Century Therapeutics, Inc.	Warrant	9/14/2020	Common Stock	16,112	37		2		(4)
COMPASS Pathways plc	Warrant	6/30/2023	Ordinary Shares	75,376	278		263		(4)(5)(10)
Curevo, Inc.	Warrant	6/9/2023	Common Stock	95,221	233		361		(15)
Dermavant Sciences Ltd.	Warrant	5/31/2019	Common Stock	223,642	101		219		(5)(10)
enGene, Inc.	Warrant	12/22/2023	Common Stock	43,689	118		421		(4)(5)(10)
Evofem Biosciences, Inc.	Warrant	6/11/2014	Common Stock	3	266		—		(4)
Fresh Tracks Therapeutics, Inc.	Warrant	2/18/2016	Common Stock	201	119		—		(4)
Heron Therapeutics, Inc.	Warrant	8/9/2023	Common Stock	238,095	228		387		(4)(15)
Kineta, Inc.	Warrant	12/20/2019	Common Stock	2,202	110		—		(4)
Kura Oncology, Inc.	Warrant	11/2/2022	Common Stock	14,342	88		120		(4)(10)(15)
Madrigal Pharmaceutical, Inc.	Warrant	5/9/2022	Common Stock	13,229	570		2,126		(4)(10)

Phathom Pharmaceuticals, Inc.	Warrant	9/17/2021	Common Stock	64,687	848		86		(4)(10)(12)(15)(16)
Redshift Bioanalytics, Inc.	Warrant	3/23/2022	Preferred Series E	475,510	20		43		(15)
Scynexis, Inc.	Warrant	5/14/2021	Common Stock	106,035	296		7		(4)
TG Therapeutics, Inc.	Warrant	2/28/2019	Common Stock	264,226	1,284		2,209		(4)(10)(12)
Valo Health, LLC	Warrant	6/15/2020	Common Units	102,216	256		255
X4 Pharmaceuticals, Inc.	Warrant	3/18/2019	Common Stock	1,392,787	510		561		(4)
Subtotal: Drug Discovery & Development (0.59%)*					9,251		11,133

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (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	$	78	(4)
Locus Robotics Corp.	Warrant	6/21/2022	Common Stock	8,503	34		82

Skydio, Inc.	Warrant	11/8/2021	Common Stock	622,255	557		153
Subtotal: Electronics & Computer Hardware (0.02%)*					692		313
Healthcare Services, Other
Curana Health Holdings, LLC	Warrant	1/4/2024	Common Units	268,446	89		84
Modern Life, Inc.	Warrant	3/30/2023	Common Stock	37,618	164		118
Recover Together, Inc.	Warrant	7/3/2023	Common Stock	194,830	382		253
Strive Health Holdings, LLC	Warrant	9/28/2023	Common Units	51,760	83		89		(15)

Vida Health, Inc.	Warrant	3/28/2022	Common Stock	192,431	121		4
Subtotal: Healthcare Services, Other (0.03%)*					839		548
Information Services
Capella Space Corp.	Warrant	10/21/2021	Common Stock	176,200	207		27		(15)
INMOBI Inc.	Warrant	11/19/2014	Common Stock	65,587	82		—		(5)(10)
NetBase Quid, Inc. (p.k.a NetBase Solutions)	Warrant	8/22/2017	Preferred Series 1	60,000	356		—
Signal Media Limited	Warrant	6/29/2022	Common Stock	129,638	57		65		(5)(10)
Subtotal: Information Services (0.00%)*					702		92
Manufacturing Technology
Bright Machines, Inc.	Warrant	3/31/2022	Common Stock	392,308	537		120
MacroFab, Inc.	Warrant	3/23/2022	Common Stock	1,111,111	528		337

Xometry, Inc.	Warrant	5/9/2018	Common Stock	87,784	47		810		(4)
Subtotal: Manufacturing Technology (0.07%)*					1,112		1,267
Media/Content/Info
Fever Labs, Inc.	Warrant	12/30/2022	Preferred Series E-1	369,370	67		228
Subtotal: Media/Content/Info (0.01%)*					67		228

Medical Devices & Equipment




Intuity Medical, Inc.	Warrant	12/29/2017	Preferred Series B-1	3,076,323	295		—
Outset Medical, Inc.	Warrant	9/27/2013	Common Stock	62,794	401		13		(4)
Senseonics Holdings, Inc.	Warrant	9/8/2023	Common Stock	1,032,718	276		213		(4)
Sight Sciences, Inc.	Warrant	1/22/2024	Common Stock	94,980	327		288		(4)
Tela Bio, Inc.	Warrant	3/31/2017	Common Stock	15,712	61		—		(4)
Subtotal: Medical Devices & Equipment (0.03%)*					1,360		514
Semiconductors
Achronix Semiconductor Corporation	Warrant	6/26/2015	Preferred Series D-2	750,000	99		672
Subtotal: Semiconductors (0.04%)*					99		672

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Software
Aria Systems, Inc.	Warrant	5/22/2015	Preferred Series G	231,535	$	74	$	—
Automation Anywhere, Inc.	Warrant	9/23/2022	Common Stock	254,778	448		626
Bitsight Technologies, Inc.	Warrant	11/18/2020	Common Stock	29,691	284		596
Brain Corporation	Warrant	10/4/2021	Common Stock	194,629	165		59		(15)
CloudBolt Software, Inc.	Warrant	9/30/2020	Common Stock	211,342	117		8
Cloudian, Inc.	Warrant	11/6/2018	Common Stock	477,454	71		33
Cloudpay, Inc.	Warrant	4/10/2018	Preferred Series B	6,763	54		904		(5)(10)

Couchbase, Inc.	Warrant	4/25/2019	Common Stock	105,350	462		1,521		(4)
Cutover, Inc.	Warrant	9/21/2022	Common Stock	102,898	26		65		(5)(10)(12)
Dashlane, Inc.	Warrant	3/11/2019	Common Stock	770,838	461		444

Demandbase, Inc.	Warrant	8/2/2021	Common Stock	727,047	545		346

Dragos, Inc.	Warrant	6/28/2023	Common Stock	49,309	1,452		1,089
DroneDeploy, Inc.	Warrant	6/30/2022	Common Stock	95,911	278		327
Eigen Technologies Ltd.	Warrant	4/13/2022	Common Stock	522	8		—		(5)(10)
Elation Health, Inc.	Warrant	9/12/2022	Common Stock	362,837	583		207

First Insight, Inc.	Warrant	5/10/2018	Preferred Series B	75,917	96		69
Fulfil Solutions, Inc.	Warrant	7/29/2022	Common Stock	84,995	325		497
Harness, Inc.	Warrant	3/12/2024	Common Stock	193,618	534		522
Kore.ai, Inc.	Warrant	3/31/2023	Preferred Series C	64,293	208		428
Leapwork ApS	Warrant	1/23/2023	Common Stock	39,948	16		32		(5)(10)(12)
Lightbend, Inc.	Warrant	2/14/2018	Preferred Series D	89,685	131		42
Mixpanel, Inc.	Warrant	9/30/2020	Common Stock	82,362	252		331

Onna Technologies, Inc.	Warrant	7/5/2023	Common Stock	172,867	60		35
Poplicus, Inc.	Warrant	5/28/2014	Common Stock	132,168	—		—
Reltio, Inc.	Warrant	6/30/2020	Common Stock	69,120	215		544

Simon Data, Inc.	Warrant	3/22/2023	Common Stock	77,934	96		99		(12)
SingleStore, Inc.	Warrant	4/28/2020	Preferred Series D	312,596	103		398
Sisense Ltd.	Warrant	6/8/2023	Ordinary Shares	321,956	174		128		(5)(10)
Suzy, Inc.	Warrant	8/24/2023	Common Stock	292,936	367		319		(15)


Tipalti Solutions Ltd.	Warrant	3/22/2023	Ordinary Shares	254,877	174		264		(5)(10)
VideoAmp, Inc.	Warrant	1/21/2022	Common Stock	152,048	1,275		342		(15)
Subtotal: Software (0.54%)*					9,054		10,275
Surgical Devices
TransMedics Group, Inc.	Warrant	9/11/2015	Common Stock	14,440	39		622		(4)
Subtotal: Surgical Devices (0.03%)*					39		622
Sustainable and Renewable Technology
Ampion, PBC	Warrant	4/15/2022	Common Stock	18,472	52		43

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Electric Hydrogen Co.	Warrant	3/27/2024	Common Stock	197,294	$	440	$	440	(15)
Halio, Inc.	Warrant	4/22/2014	Common Stock	456,883	218		—



Polyera Corporation	Warrant	3/24/2015	Preferred Series C	150,036	269		—
Subtotal: Sustainable and Renewable Technology (0.03%)*					979		483
Total: Warrant Investments (1.73%)*					$	30,399	$	32,693
Total Investments in Securities (189.08%)*					$	3,569,846	$	3,565,862

Investment Funds & Vehicles Investments
Drug Discovery & Development
Forbion Growth Opportunities Fund I C.V.	Investment Funds & Vehicles	11/16/2020			$	3,783	$	3,916	(5)(10)(17)
Forbion Growth Opportunities Fund II C.V.	Investment Funds & Vehicles	6/23/2022			566		1,468		(5)(10)(17)
Subtotal: Drug Discovery & Development (0.29%)*					4,349		5,384
Software
Liberty Zim Co-Invest L.P.	Investment Funds & Vehicles	7/21/2022			381		395		(5)(10)
Subtotal: Software (0.02%)*					381		395
Total: Investment Funds & Vehicles Investments (0.31%)*					$	4,730	$	5,779
Total Investments (189.38%)*					$	3,574,576	$	3,571,641


Foreign Currency Forward Contracts

Foreign Currency	Settlement Date	Counterparty	Amount		Transaction	US $ Value at Settlement Date		Value
Great British Pound (GBP)	6/3/2024	Goldman Sachs Bank USA	£	19,288	Sold	$	23,810	$	(537)
Total Foreign Currency Forward ((0.03%))*						$	23,810	$	(537)

*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 8.50% as of March 31, 2024. 1-month SOFR, 3-month SOFR and 6-month SOFR represent 5.32%, 5.35%, and 5.39%, respectively, as of March 31, 2024.

(2)Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $127.7 million, $129.5 million and $1.8 million, respectively. The tax cost of investments is $3.6 billion.

(3)Preferred and common stock, warrants, and equity interest are generally non-income producing.

(4)Except for warrants in 25 publicly traded companies and common stock in 35 publicly traded companies, all investments are restricted as of March 31, 2024 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)[Reserved]

(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 March 31, 2024, and is therefore considered non-income producing.

(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”).

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2024 (unaudited)

(dollars in thousands)

(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 March 31, 2024.

(17)Denotes that there is an unfunded contractual commitment available at the request of this portfolio company as of March 31, 2024 (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)Gibraltar Acquisition LLC is a wholly-owned subsidiary, which is the holding company for their wholly-owned affiliated portfolio companies, Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC.

(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 March 31, 2024, the Black Crow AI, Inc. affiliates promissory notes had an outstanding balance of $2.4 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 $12.0 million and $9.8 million, respectively.

(23)Hercules Adviser LLC is owned by Hercules Capital Management LLC and presented with Hercules Partner Holdings, LLC which are both wholly owned by the Company. Please refer to “Note 1” for additional disclosure.

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Debt Investments
Biotechnology Tools
Alamar Biosciences, Inc.	Senior Secured	June 2026	Prime + 3.00%, Floor rate 6.50%, PIK Interest 1.00%, 5.95% Exit Fee	$	15,049	$	15,069	$	15,508	(13)(14)
PathAI, Inc.	Senior Secured	January 2027	Prime + 2.15%, Floor rate 9.15%, 9.81% Exit Fee	$	32,000	31,941		32,519		(12)
Subtotal: Biotechnology Tools (2.66%)*						47,010		48,027
Communications & Networking
Aryaka Networks, Inc.	Senior Secured	July 2026	Prime + 3.25%, Floor rate 6.75%, PIK Interest 1.05%, 3.55% Exit Fee	$	25,153	24,943		26,000		(12)(14)(19)
Cytracom Holdings LLC	Senior Secured	February 2025	3-month SOFR + 9.72%, Floor rate 10.62%	$	3,267	3,239		3,272		(11)(17)(18)

Subtotal: Communications & Networking (1.62%)*						28,182		29,272
Consumer & Business Services
Altumint, Inc.	Senior Secured	December 2027	Prime + 3.65%, Floor rate 12.15%, 2.50% Exit Fee	$	10,000	9,905		9,905		(15)(17)
AppDirect, Inc.	Senior Secured	April 2026	Prime + 5.50%, Floor rate 8.75%, 7.12% Exit Fee	$	55,790	57,653		59,507		(12)
Carwow LTD	Senior Secured	December 2024	Prime + 4.70%, Floor rate 7.95%, PIK Interest 1.45%, 4.95% Exit Fee	£	19,146	26,834		25,157		(5)(10)(14)
Houzz, Inc.	Convertible Debt	May 2028	PIK Interest 8.50%	$	23,340	23,340		23,244		(9)(14)
Jobandtalent USA, Inc.	Senior Secured	February 2025	1-month SOFR + 8.86%, Floor rate 9.75%, 3.00% Exit Fee	$	14,000	14,095		14,259		(5)(10)
Plentific Ltd	Senior Secured	October 2026	Prime + 2.55%, Floor rate 11.05%, 2.95% Exit Fee	$	875	853		853		(5)(10)(17)
Provi	Senior Secured	December 2026	Prime + 4.40%, Floor rate 10.65%, 2.95% Exit Fee	$	15,000	14,904		15,046		(15)
Rhino Labs, Inc.	Senior Secured	June 2024	Prime + 5.50%, Floor rate 8.75%, PIK Interest 2.25%	$	4,710	4,704		4,704		(14)(15)
Riviera Partners LLC	Senior Secured	April 2027	3-month SOFR + 8.26%, Floor rate 9.26%	$	36,868	36,339		34,659		(17)(18)
RVShare, LLC	Senior Secured	December 2026	3-month SOFR + 5.50%, Floor rate 6.50%, PIK Interest 4.00%	$	28,876	28,404		28,888		(13)(14)(15)
SeatGeek, Inc.	Senior Secured	May 2026	Prime + 7.00%, Floor rate 10.50%, PIK Interest 0.50%, 4.00% Exit Fee	$	25,199	25,126		25,869		(11)(14)(16)
	Senior Secured	July 2026	Prime + 2.50%, Floor rate 10.75%, PIK Interest 0.50%, 3.00% Exit Fee	$	77,642	77,170		79,119		(12)(14)(16)
Total SeatGeek, Inc.				$	102,841	102,296		104,988
Skyword, Inc.	Senior Secured	November 2026	Prime + 2.75%, Floor rate 9.25%, PIK Interest 1.75%, 3.00% Exit Fee	$	9,169	9,189		9,311		(13)(14)
Tectura Corporation	Senior Secured	July 2024	FIXED 8.25%	$	8,250	8,250		8,250		(7)



Thumbtack, Inc.	Senior Secured	April 2026	Prime + 4.95%, Floor rate 8.20%, PIK Interest 1.50%, 3.95% Exit Fee	$	10,258	10,317		10,639		(12)(14)(17)
Udacity, Inc.	Senior Secured	September 2024	Prime + 4.50%, Floor rate 7.75%, PIK Interest 2.00%, 3.00% Exit Fee	$	53,000	53,989		53,130		(12)(14)
Veem, Inc.	Senior Secured	March 2025	Prime + 4.00%, Floor rate 7.25%, PIK Interest 1.25%, 4.50% Exit Fee	$	5,107	5,176		5,230		(13)(14)
	Senior Secured	March 2025	Prime + 4.70%, Floor rate 7.95%, PIK Interest 1.50%, 4.50% Exit Fee	$	5,110	5,189		5,286		(12)(14)
Total Veem, Inc.				$	10,217	10,365		10,516
Worldremit Group Limited	Senior Secured	February 2025	3-month SOFR + 9.40%, Floor rate 10.25%, 3.20% Exit Fee	$	88,250	89,318		89,653		(5)(10)(11)(12)(16) (19)
	Senior Secured	February 2025	1-month SOFR + 9.35%, Floor rate 10.25%, 3.20% Exit Fee	$	6,250	6,308		6,344		(5)(10)(16)(19)
Total Worldremit Group Limited				$	94,500	95,626		95,997
Subtotal: Consumer & Business Services (28.24%)*						507,063		509,053

Diversified Financial Services
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)	Unsecured	September 2026	FIXED 11.50%	$	25,000	24,663		24,663		(7)(20)
	Unsecured	September 2026	FIXED 11.95%	$	10,000	9,815		9,815		(7)(20)
Total Gibraltar Acquisition, LLC				$	35,000	34,478		34,478

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Hercules Adviser LLC	Unsecured	June 2025	FIXED 5.00%	$	12,000	$	12,000	$	12,000	(7)(23)
Next Insurance, Inc.	Senior Secured	February 2028	Prime - (1.50%), Floor rate 4.75%, PIK Interest 5.50%	$	10,469	10,286		10,618		(14)(17)(19)
Subtotal: Diversified Financial Services (3.17%)*						56,764		57,096
Drug Discovery & Development
Akero Therapeutics, Inc.	Senior Secured	January 2027	Prime + 3.65%, Floor rate 7.65%, 5.85% Exit Fee	$	12,500	12,525		13,065		(10)(13)(17)
Aldeyra Therapeutics, Inc.	Senior Secured	October 2024	Prime + 3.10%, Floor rate 8.60%, 8.90% Exit Fee	$	15,000	15,152		15,152		(11)
Alladapt Immunotherapeutics Inc.	Senior Secured	September 2026	Prime + 3.65%, Floor rate 8.40%, Cap rate 10.90%, 5.30% Exit Fee	$	35,000	35,173		36,855		(13)
AmplifyBio, LLC	Senior Secured	January 2027	Prime + 2.50%, Floor rate 9.50%, Cap rate 10.75%, 5.85% Exit Fee	$	24,000	24,120		24,514		(15)
ATAI Life Sciences N.V.	Senior Secured	August 2026	Prime + 4.55%, Floor rate 8.55%, 6.95% Exit Fee	$	10,500	10,695		10,904		(5)(10)

Axsome Therapeutics, Inc.	Senior Secured	January 2028	Prime + 2.20%, Floor rate 9.95%, Cap rate 10.70%, 5.78% Exit Fee	$	143,350	143,646		150,255		(10)(11)(12)(16)
Bicycle Therapeutics PLC	Senior Secured	July 2025	Prime + 4.55%, Floor rate 8.05%, Cap rate 9.05%, 5.00% Exit Fee	$	11,500	11,880		11,783		(5)(10)(11)(12)
BiomX, INC	Senior Secured	September 2025	Prime + 5.70%, Floor rate 8.95%, 6.55% Exit Fee	$	6,448	6,807		6,790		(5)(10)(11)
Braeburn, Inc.	Senior Secured	October 2028	Prime + 2.45%, Floor rate 10.95%, PIK Interest 1.10%, 5.45% Exit Fee	$	52,601	52,185		52,185		(14)
BridgeBio Pharma, Inc.	Senior Secured	November 2026	FIXED 9.00%, 2.00% Exit Fee	$	38,167	38,124		35,498		(12)(13)(14)
Cellarity, Inc.	Senior Secured	June 2026	Prime + 5.70%, Floor rate 8.95%, 3.75% Exit Fee	$	29,193	29,482		30,051		(13)(15)
COMPASS Pathways plc	Senior Secured	July 2027	Prime + 1.50%, Floor rate 9.75%, PIK Interest 1.40%, 4.75% Exit Fee	$	24,144	23,798		24,601		(5)(10)(14)


Corium, Inc.	Senior Secured	September 2026	Prime + 5.70%, Floor rate 8.95%, 7.75% Exit Fee	$	105,225	107,667		108,545		(13)(16)
Curevo, Inc.	Senior Secured	June 2027	Prime + 1.70%, Floor rate 9.70%, 6.95% Exit Fee	$	10,000	9,821		10,076		(15)
Eloxx Pharmaceuticals, Inc.	Senior Secured	April 2025	Prime + 6.25%, Floor rate 9.50%, 6.55% Exit Fee	$	3,099	3,789		3,731		(15)
enGene, Inc.	Senior Secured	January 2028	Prime + 0.75%, Floor rate 9.25%, Cap rate 9.75%, PIK Interest 1.15%, 5.50% Exit Fee	$	15,750	15,550		15,550		(5)(10)

G1 Therapeutics, Inc.	Senior Secured	November 2026	Prime + 5.65%, Floor rate 9.15%, 11.41% Exit Fee	$	38,750	39,679		40,421		(11)(12)(15)
Geron Corporation	Senior Secured	April 2025	Prime + 4.50%, Floor rate 9.00%, 6.55% Exit Fee	$	30,200	31,005		31,210		(10)(12)(13)
Gritstone Bio, Inc.	Senior Secured	July 2027	Prime + 3.15%, Floor rate 7.15%, Cap rate 8.65%, PIK Interest 2.00%, 5.75% Exit Fee	$	30,532	30,717		30,909		(13)(14)
Heron Therapeutics, Inc.	Senior Secured	February 2026	Prime + 1.70%, Floor rate 9.95%, PIK Interest 1.50%, 3.00% Exit Fee	$	20,095	19,788		19,788		(14)(15)(17)
Hibercell, Inc.	Senior Secured	May 2025	Prime + 5.40%, Floor rate 8.65%, 4.95% Exit Fee	$	12,535	13,117		13,181		(13)(15)
HilleVax, Inc.	Senior Secured	May 2027	Prime + 1.05%, Floor rate 4.55%, Cap rate 6.05%, PIK Interest 2.85%, 7.15% Exit Fee	$	20,524	20,685		20,335		(14)(15)

Kura Oncology, Inc.	Senior Secured	November 2027	Prime + 2.40%, Floor rate 8.65%, 15.13% Exit Fee	$	5,500	5,532		5,752		(10)(15)(17)
Locus Biosciences, Inc.	Senior Secured	July 2025	Prime + 6.10%, Floor rate 9.35%, 4.95% Exit Fee	$	5,399	5,651		5,686		(15)
Madrigal Pharmaceutical, Inc.	Senior Secured	May 2026	Prime + 2.45%, Floor rate 8.25%, 5.35% Exit Fee	$	78,200	78,728		81,945		(10)

Phathom Pharmaceuticals, Inc.	Senior Secured	December 2027	Prime + 1.35%, Floor rate 9.85%, PIK Interest 2.15%, 7.29% Exit Fee	$	129,699	130,934		128,326		(10)(12)(14)(15)(16) (17)(22)

Redshift Bioanalytics, Inc.	Senior Secured	January 2026	Prime + 4.25%, Floor rate 7.50%, 3.80% Exit Fee	$	5,000	5,047		5,119		(15)
Replimune Group, Inc.	Senior Secured	October 2027	Prime + 1.75%, Floor rate 7.25%, Cap rate 9.00%, PIK Interest 1.50%, 4.95% Exit Fee	$	31,416	31,450		32,702		(10)(12)(14)


Tarsus Pharmaceuticals, Inc.	Senior Secured	February 2027	Prime + 4.45%, Floor rate 8.45%, Cap rate 11.45%, 4.75% Exit Fee	$	12,375	12,488		12,916		(10)(13)(17)
TG Therapeutics, Inc.	Senior Secured	January 2026	Prime + 1.20%, Floor rate 8.95%, PIK Interest 2.25%, 5.69% Exit Fee	$	65,770	66,439		67,610		(10)(11)(12)(14)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
uniQure B.V.	Senior Secured	January 2027	Prime + 4.70%, Floor rate 7.95%, 6.10% Exit Fee	$	70,000	$	71,157	$	73,318	(5)(10)(11)(12)

Valo Health, LLC	Senior Secured	May 2024	Prime + 6.45%, Floor rate 9.70%, 3.85% Exit Fee	$	2,396	2,808		2,808		(11)(13)
Verona Pharma, Inc.	Senior Secured	December 2028	1-month SOFR + 5.85%, Floor rate 11.19%, Cap rate 13.19%, 3.50% Exit Fee	$	15,750	15,646		15,646		(5)(10)
Viridian Therapeutics, Inc.	Senior Secured	October 2026	Prime + 4.20%, Floor rate 7.45%, Cap rate 8.95%, 6.00% Exit Fee	$	8,000	8,057		8,023		(10)(13)
X4 Pharmaceuticals, Inc.	Senior Secured	October 2026	Prime + 3.15%, Floor rate 10.15%, 3.80% Exit Fee	$	55,000	54,680		55,417		(11)(12)(13)
Subtotal: Drug Discovery & Development (66.60%)*						1,184,022		1,200,667
Electronics & Computer Hardware
Locus Robotics Corp.	Senior Secured	June 2026	Prime + 4.50%, Floor rate 8.00%, 4.00% Exit Fee	$	18,281	18,348		18,982		(19)
Subtotal: Electronics & Computer Hardware (1.05%)*						18,348		18,982
Healthcare Services, Other
Better Therapeutics, Inc.	Senior Secured	August 2025	Prime + 5.70%, Floor rate 8.95%, 5.95% Exit Fee	$	10,865	11,285		8,455		(15)
Blue Sprig Pediatrics, Inc.	Senior Secured	November 2026	1-month SOFR + 5.11% , Floor rate 6.00%, PIK Interest 4.45%	$	69,032	68,277		68,393		(11)(13)(14)
Carbon Health Technologies, Inc.	Senior Secured	March 2025	Prime + 5.60%, Floor rate 8.85%, 4.61% Exit Fee	$	46,125	47,193		46,242		(11)(13)
Equality Health, LLC	Senior Secured	February 2026	Prime + 6.25%, Floor rate 9.50%, PIK Interest 1.55%	$	54,425	54,142		54,697		(11)(12)(14)
Main Street Rural, Inc.	Senior Secured	July 2027	Prime + 1.95%, Floor rate 9.95%, 6.85% Exit Fee	$	24,500	24,476		24,929		(15)(17)
Modern Life, Inc.	Senior Secured	February 2027	Prime + 2.75%, Floor rate 8.75%, 5.00% Exit Fee	$	13,000	12,888		13,111		(13)(17)
Recover Together, Inc.	Senior Secured	July 2027	Prime + 1.90%, Floor rate 10.15%, 7.50% Exit Fee	$	35,000	34,683		34,683
Strive Health Holdings, LLC	Senior Secured	September 2027	Prime + 0.70%, Floor rate 9.20%, 5.95% Exit Fee	$	12,000	11,868		11,868		(15)
Vida Health, Inc.	Senior Secured	March 2026	9.20% + Lower of (Prime - 3.25%) or 1.00%, Floor rate 9.20%, Cap rate 10.20%, 4.95% Exit Fee	$	36,500	36,352		36,145		(11)

Subtotal: Healthcare Services, Other (16.56%)*						301,164		298,523
Information Services
Capella Space Corp.	Senior Secured	November 2025	Prime + 5.00%, Floor rate 8.25%, PIK Interest 1.10%, 7.00% Exit Fee	$	20,477	21,166		21,351		(14)(15)
Checkr Group, Inc.	Senior Secured	August 2028	Prime + 1.45%, Floor rate 8.00%, PIK Interest 2.00%, 2.75% Exit Fee	$	47,621	47,460		49,382		(14)(17)
Saama Technologies, LLC	Senior Secured	July 2027	Prime + 0.70%, Floor rate 8.95%, PIK Interest 2.00%, 2.95% Exit Fee	$	11,725	11,627		11,876		(14)(17)
Signal Media Limited	Senior Secured	June 2025	Prime + 5.50%, Floor rate 9.00%, Cap rate 12.00%, 3.45% Exit Fee	$	5,400	5,364		5,392		(5)(10)
Yipit, LLC	Senior Secured	September 2026	1-month SOFR + 8.45%, Floor rate 9.35%	$	31,875	31,482		31,875		(17)(18)
Subtotal: Information Services (6.65%)*						117,099		119,876
Manufacturing Technology
Bright Machines, Inc.	Senior Secured	May 2025	Prime + 4.00%, Floor rate 9.50%, 5.00% Exit Fee	$	7,827	8,064		8,006		(13)


Subtotal: Manufacturing Technology (0.44%)*						8,064		8,006


Media/Content/Info
Fever Labs, Inc.	Senior Secured	September 2026	Prime + 3.50%, Floor rate 9.00%, 4.00% Exit Fee	$	6,667	6,672		6,768		(19)
	Senior Secured	September 2025	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,167	1,178		1,188		(19)
	Senior Secured	December 2025	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,333	1,342		1,351		(19)
	Senior Secured	March 2026	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,500	1,501		1,509		(19)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
	Senior Secured	June 2026	Prime + 3.50%, Floor rate 9.00%, 3.00% Exit Fee	$	1,667	$	1,647	$	1,653	(19)
Total Fever Labs, Inc.				$	12,334	12,340		12,469
Subtotal: Media/Content/Info (0.69%)*						12,340		12,469
Medical Devices & Equipment
Senseonics Holdings, Inc.	Senior Secured	September 2027	Prime + 1.40%, Floor rate 9.90%, 6.95% Exit Fee	$	21,875	21,572		21,572		(17)
Subtotal: Medical Devices & Equipment (1.20%)*						21,572		21,572
Software
3GTMS, LLC	Senior Secured	February 2025	3-month SOFR + 9.70%, Floor rate 10.60%	$	13,110	13,029		13,103		(11)(17)(18)
	Senior Secured	February 2025	3-month SOFR + 6.88%, Floor rate 7.78%	$	1,990	1,988		1,986		(17)(18)
Total 3GTMS, LLC				$	15,100	15,017		15,089
Agilence, Inc.	Senior Secured	October 2026	1-month BSBY + 9.00%, Floor rate 10.00%	$	9,212	9,040		9,212		(12)(17)(18)
Alchemer LLC	Senior Secured	May 2028	1-month SOFR + 8.14%, Floor rate 9.14%	$	20,908	20,508		21,297		(13)(17)(18)
Allvue Systems, LLC	Senior Secured	September 2029	6-month SOFR + 7.25%, Floor rate 8.25%	$	36,410	35,530		35,530		(17)
Annex Cloud	Senior Secured	February 2027	1-month BSBY + 9.41%, Floor rate 10.41%	$	9,823	9,649		9,761		(13)(17)
Automation Anywhere, Inc.	Senior Secured	September 2027	Prime + 4.25%, Floor rate 9.00%, 4.50% Exit Fee	$	19,600	19,345		20,269		(11)(17)(19)
Babel Street	Senior Secured	December 2027	3-month SOFR + 7.89%, Floor rate 8.89%	$	45,000	43,983		44,928		(15)(17)(18)
Brain Corporation	Senior Secured	April 2026	Prime + 3.70%, Floor rate 9.20%, PIK Interest 1.00%, 3.95% Exit Fee	$	30,415	30,678		30,989		(13)(14)(15)(17)
Campaign Monitor Limited	Senior Secured	November 2025	3-month SOFR + 9.05%, Floor rate 9.90%	$	33,000	32,706		33,000		(13)(19)
Catchpoint Systems, Inc.	Senior Secured	November 2025	3-month SOFR + 9.41%, Floor rate 11.81%	$	10,073	9,931		9,940		(18)
Ceros, Inc.	Senior Secured	September 2026	6-month SOFR + 8.99%, Floor rate 9.89%	$	22,867	22,498		23,075		(17)(18)

Constructor.io Corporation	Senior Secured	July 2027	1-month SOFR + 8.44%, Floor rate 9.44%	$	4,688	4,592		4,790		(13)(17)(18)
Convoy, Inc.	Senior Secured	March 2026	Prime + 3.20%, Floor rate 6.45%, PIK Interest 1.95%, 4.55% Exit Fee	$	31,049	30,916		—		(8)(14)(19)
Copper CRM, Inc	Senior Secured	March 2025	Prime + 4.50%, Floor rate 8.25%, Cap rate 10.25%, PIK Interest 1.95%, 3.96% Exit Fee	$	9,141	9,307		9,153		(11)(14)
Cutover, Inc.	Senior Secured	October 2025	Prime + 5.20%, Floor rate 9.95%, 4.95% Exit Fee	$	5,500	5,544		5,715		(5)(10)(12)(17)
Cybermaxx Intermediate Holdings, Inc.	Senior Secured	August 2026	6-month SOFR + 8.63%, Floor rate 9.38%	$	7,955	7,830		7,778		(13)(17)
	Senior Secured	August 2026	6-month SOFR + 12.36%, Floor rate 13.11%	$	2,546	2,494		2,556		(17)
Total Cybermaxx Intermediate Holdings, Inc.				$	10,501	10,324		10,334
Dashlane, Inc.	Senior Secured	December 2027	Prime + 3.05%, Floor rate 11.55%, PIK Interest 1.10%, 7.26% Exit Fee	$	42,863	43,087		43,087		(11)(13)(17)(19)

Dispatch Technologies, Inc.	Senior Secured	April 2028	3-month SOFR + 8.01%, Floor rate 8.76%	$	8,125	7,949		8,127		(17)(18)
DroneDeploy, Inc.	Senior Secured	July 2026	Prime + 4.50%, Floor rate 8.75%, 4.00% Exit Fee	$	6,250	6,083		6,153		(17)
Eigen Technologies Ltd.	Senior Secured	April 2025	Prime + 5.10%, Floor rate 8.35%, 2.95% Exit Fee	$	3,750	3,801		3,730		(5)(10)
Elation Health, Inc.	Senior Secured	March 2026	Prime + 4.25%, Floor rate 9.00%, PIK Interest 1.95%, 3.95% Exit Fee	$	12,629	12,253		12,692		(14)(17)(19)
Enmark Systems, Inc.	Senior Secured	September 2026	3-month SOFR + 6.73%, Floor rate 7.73%, PIK Interest 2.13%	$	8,363	8,230		8,363		(11)(14)(17)(18)



Flight Schedule Pro, LLC	Senior Secured	October 2027	1-month SOFR + 7.80%, Floor rate 8.70%	$	6,587	6,420		6,553		(17)(18)
Fortified Health Security	Senior Secured	December 2027	1-month SOFR + 7.64%, Floor rate 8.54%	$	7,000	6,851		6,910		(11)(17)(18)
iGrafx, LLC	Senior Secured	May 2027	1-month SOFR + 8.66%, Floor rate 9.56%	$	5,000	4,901		4,901		(18)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Maturity Date	Interest Rate and Floor (1)	Principal Amount		Cost (2)		Value		Footnotes
Ikon Science Limited	Senior Secured	October 2024	3-month SOFR + 9.26%, Floor rate 10.00%	$	6,213	$	6,148	$	6,148	(5)(10)(17)(18)


Khoros (p.k.a Lithium Technologies)	Senior Secured	January 2025	3-month SOFR + 4.50%, Floor rate 5.50%, PIK Interest 4.50%	$	57,770	57,730		56,293		(14)
Leapwork ApS	Senior Secured	February 2026	Prime + 0.25%, Floor rate 7.25%, PIK Interest 1.95%, 2.70% Exit Fee	$	3,813	3,810		3,907		(5)(10)(12)(14)(17)
LinenMaster, LLC	Senior Secured	August 2028	1-month SOFR + 6.25%, Floor rate 7.25%, PIK Interest 2.15%	$	15,083	14,799		14,799		(14)(17)
Loftware, Inc.	Senior Secured	March 2028	3-month SOFR + 7.88%, Floor rate 8.88%	$	26,469	25,897		26,566		(17)(18)
LogicSource	Senior Secured	July 2027	3-month SOFR + 8.93%, Floor rate 9.93%	$	13,300	13,074		13,493		(17)(18)

Mobile Solutions Services	Senior Secured	December 2025	6-month SOFR + 9.31%, Floor rate 10.06%	$	18,366	18,116		18,176		(18)


New Relic, Inc.	Senior Secured	November 2030	3-month SOFR + 6.75%, Floor rate 7.75%	$	20,890	20,375		20,375		(17)
Omeda Holdings, LLC	Senior Secured	July 2027	3-month SOFR + 8.05%, Floor rate 9.05%	$	7,706	7,508		7,702		(11)(17)(18)


Onna Technologies, Inc.	Senior Secured	March 2026	Prime + 1.35%, Floor rate 8.85%, PIK Interest 1.75%, 4.45% Exit Fee	$	3,853	3,814		3,810		(14)
Salary.com, LLC	Senior Secured	September 2027	3-month SOFR + 8.00%, Floor rate 9.00%	$	22,185	21,814		22,048		(18)
ShadowDragon, LLC	Senior Secured	December 2026	1-month SOFR + 9.01%, Floor rate 9.91%	$	6,000	5,883		5,921		(17)(18)

Simon Data, Inc.	Senior Secured	March 2027	Prime + 1.00%, Floor rate 8.75%, PIK Interest 1.95%, 2.92% Exit Fee	$	15,065	14,982		15,037		(12)(14)
Sisense Ltd.	Senior Secured	July 2027	Prime + 1.50%, Floor rate 9.50%, PIK Interest 1.95%, 5.95% Exit Fee	$	34,830	34,584		34,881		(5)(10)(14)
Streamline Healthcare Solutions	Senior Secured	March 2028	3-month SOFR + 7.25%, Floor rate 8.25%	$	13,200	12,953		13,327		(17)(18)
Sumo Logic, Inc.	Senior Secured	May 2030	3-month SOFR + 6.50%, Floor rate 7.50%	$	23,000	22,460		23,105		(17)
Suzy, Inc.	Senior Secured	August 2027	Prime + 1.75%, Floor rate 10.00%, PIK Interest 1.95%, 3.45% Exit Fee	$	12,064	11,837		11,837		(14)(15)(17)
ThreatConnect, Inc.	Senior Secured	May 2026	6-month SOFR + 9.25%, Floor rate 10.00%	$	10,920	10,730		10,920		(17)(18)

Tipalti Solutions Ltd.	Senior Secured	April 2027	Prime + 0.45%, Floor rate 7.95%, PIK Interest 2.00%, 3.75% Exit Fee	$	10,649	10,578		10,835		(5)(10)(14)(17)
Zappi, Inc.	Senior Secured	December 2027	3-month SOFR + 8.03%, Floor rate 9.03%	$	9,000	8,816		8,967		(5)(10)(13)(17)(18)
Zimperium, Inc.	Senior Secured	May 2027	3-month SOFR + 8.31%, Floor rate 9.31%	$	16,313	16,057		16,394		(17)(18)
Subtotal: Software (40.39%)*						751,108		728,139
Sustainable and Renewable Technology
Ampion, PBC	Senior Secured	May 2025	Prime + 4.70%, Floor rate 7.95%, PIK Interest 1.45%, 3.78% Exit Fee	$	3,926	3,952		3,939		(13)(14)
Pineapple Energy LLC	Senior Secured	June 2027	FIXED 10.00%	$	1,682	1,682		1,678		(19)
Subtotal: Sustainable and Renewable Technology (0.31%)*						5,634		5,617
Total: Debt Investments (169.59%)*						$	3,058,370	$	3,057,299


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Equity Investments
Consumer & Business Products
Fabletics, Inc.	Equity	4/30/2010	Common Stock	42,989	$	128	$	96
	Equity	7/16/2013	Preferred Series B	130,191	1,101		700
Total Fabletics, Inc.				173,180	1,229		796
Grove Collaborative, Inc.	Equity	4/30/2021	Common Stock	12,260	433		21		(4)
Savage X Holding, LLC	Equity	4/30/2010	Class A Units	172,328	13		863

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
TFG Holding, Inc.	Equity	4/30/2010	Common Stock	173,180	$	89	$	584
Subtotal: Consumer & Business Products (0.13%)*					1,764		2,264
Consumer & Business Services
Carwow LTD	Equity	12/15/2021	Preferred Series D-4	199,742	1,151		679		(5)(10)
DoorDash, Inc.	Equity	12/20/2018	Common Stock	56,996	657		5,636		(4)
Lyft, Inc.	Equity	12/26/2018	Common Stock	100,738	5,263		1,510		(4)
Nerdy Inc.	Equity	9/17/2021	Common Stock	100,000	1,000		343		(4)
OfferUp, Inc.	Equity	10/25/2016	Preferred Series A	286,080	1,663		377
	Equity	10/25/2016	Preferred Series A-1	108,710	632		143

Total OfferUp, Inc.				394,790	2,295		520
Oportun	Equity	6/28/2013	Common Stock	48,365	577		189		(4)
Reischling Press, Inc.	Equity	7/31/2020	Common Stock	3,095	39		—
Rhino Labs, Inc.	Equity	1/24/2022	Common Stock	7,063	1,000		559
Tectura Corporation	Equity	5/23/2018	Common Stock	414,994,863	900		4		(7)
	Equity	6/6/2016	Preferred Series BB	1,000,000	—		12		(7)
	Equity	12/29/2023	Preferred Series C	3,235,298	13,263		3,251		(7)
Total Tectura Corporation				419,230,161	14,163		3,267

Subtotal: Consumer & Business Services (0.70%)*					26,145		12,703
Diversified Financial Services
Gibraltar Acquisition, LLC (p.k.a. Gibraltar Business Capital, LLC)	Equity	3/1/2018	Member Units	1	34,006		28,034		(7)(20)


Hercules Adviser LLC	Equity	3/26/2021	Member Units	1	35		28,713		(7)(23)
Newfront Insurance Holdings, Inc.	Equity	9/30/2021	Preferred Series D-2	210,282	403		325
Subtotal: Diversified Financial Services (3.17%)*					34,444		57,072
Drug Delivery
Aytu BioScience, Inc.	Equity	3/28/2014	Common Stock	680	1,500		2		(4)
BioQ Pharma Incorporated	Equity	12/8/2015	Preferred Series D	165,000	500		—
PDS Biotechnology Corporation	Equity	4/6/2015	Common Stock	2,498	309		12		(4)
Talphera, Inc. (p.k.a. AcelRx Pharmaceuticals, Inc.)	Equity	12/10/2018	Common Stock	8,836	1,329		7		(4)
Subtotal: Drug Delivery (0.00%)*					3,638		21
Drug Discovery & Development
Avalo Therapeutics, Inc.	Equity	8/19/2014	Common Stock	42	1,000		—		(4)
Axsome Therapeutics, Inc.	Equity	5/9/2022	Common Stock	127,021	4,165		10,110		(4)(10)(16)
Bicycle Therapeutics PLC	Equity	10/5/2020	Common Stock	98,100	1,871		1,774		(4)(5)(10)
BridgeBio Pharma, Inc.	Equity	6/21/2018	Common Stock	231,329	2,255		9,339		(4)
Cyclo Therapeutics, Inc. (p.k.a. Applied Molecular Transport)	Equity	4/6/2021	Common Stock	134	42		—		(4)(10)
Dare Biosciences, Inc.	Equity	1/8/2015	Common Stock	13,550	1,000		4		(4)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Dynavax Technologies	Equity	7/22/2015	Common Stock	20,000	$	550	$	280	(4)(10)
Gritstone Bio, Inc.	Equity	10/26/2022	Common Stock	442,477	1,000		903		(4)
Heron Therapeutics, Inc.	Equity	7/25/2023	Common Stock	364,963	500		620		(4)
Hibercell, Inc.	Equity	5/7/2021	Preferred Series B	3,466,840	4,250		1,834		(15)
HilleVax, Inc.	Equity	5/3/2022	Common Stock	235,295	4,000		3,777		(4)
Humanigen, Inc.	Equity	3/31/2021	Common Stock	43,243	800		—		(4)(10)
Kura Oncology, Inc.	Equity	6/16/2023	Common Stock	47,826	550		688		(4)(10)
Madrigal Pharmaceutical, Inc.	Equity	9/29/2023	Common Stock	5,100	773		1,180		(4)(10)
NorthSea Therapeutics	Equity	12/15/2021	Preferred Series C	983	2,000		1,427		(5)(10)
Phathom Pharmaceuticals, Inc.	Equity	6/9/2023	Common Stock	147,233	1,730		1,344		(4)(10)(16)
Rocket Pharmaceuticals, Ltd.	Equity	8/22/2007	Common Stock	944	1,500		28		(4)
Savara, Inc.	Equity	8/11/2015	Common Stock	11,119	203		52		(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		3,150		(4)(10)
uniQure B.V.	Equity	1/31/2019	Common Stock	17,175	332		116		(4)(5)(10)
Valo Health, LLC	Equity	12/11/2020	Preferred Series B	510,308	3,000		2,911
	Equity	10/31/2022	Preferred Series C	170,102	1,000		1,187
Total Valo Health, LLC				680,410	4,000		4,098
Verge Analytics, Inc.	Equity	9/6/2023	Preferred Series C	208,588	1,500		1,753
Viridian Therapeutics, Inc.	Equity	11/6/2023	Common Stock	32,310	400		704		(4)(10)
X4 Pharmaceuticals, Inc.	Equity	11/26/2019	Common Stock	1,566,064	2,945		1,313		(4)
Subtotal: Drug Discovery & Development (2.47%)*					40,735		44,500
Electronics & Computer Hardware
Locus Robotics Corp.	Equity	11/17/2022	Preferred Series F	15,116	650		407
Skydio, Inc.	Equity	3/8/2022	Preferred Series E	248,900	1,500		544
Subtotal: Electronics & Computer Hardware (0.05%)*					2,150		951
Healthcare Services, Other
23andMe, Inc.	Equity	3/11/2019	Common Stock	825,732	5,094		754		(4)
Carbon Health Technologies, Inc.	Equity	3/30/2021	Preferred Series C	217,880	1,688		206
Subtotal: Healthcare Services, Other (0.05%)*					6,782		960
Information Services
Planet Labs, Inc.	Equity	6/21/2019	Common Stock	547,880	615		1,353		(4)
Yipit, LLC	Equity	12/30/2021	Preferred Series E	41,021	3,825		4,890

Subtotal: Information Services (0.35%)*					4,440		6,243
Medical Devices & Equipment
Coronado Aesthetics, LLC	Equity	10/15/2021	Common Units	180,000	—		2		(7)

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
	Equity	10/15/2021	Preferred Series A-2	5,000,000	$	250	$	260	(7)
Total Coronado Aesthetics, LLC				5,180,000	250		262



Subtotal: Medical Devices & Equipment (0.01%)*					250		262
Semiconductors
Achronix Semiconductor Corporation	Equity	7/1/2011	Preferred Series C	277,995	160		394
Subtotal: Semiconductors (0.02%)*					160		394
Software
3GTMS, LLC	Equity	8/9/2021	Common Stock	1,000,000	1,000		863
Black Crow AI, Inc. affiliates	Equity	3/24/2021	Preferred Note	3	2,406		2,406		(21)
CapLinked, Inc.	Equity	10/26/2012	Preferred Series A-3	53,614	51		—
Contentful Global, Inc.	Equity	12/22/2020	Preferred Series C	41,000	138		303		(5)(10)
	Equity	11/20/2018	Preferred Series D	108,500	500		842		(5)(10)
Total Contentful Global, Inc.				149,500	638		1,145
Docker, Inc.	Equity	11/29/2018	Common Stock	20,000	4,284		636
Druva Holdings, Inc.	Equity	10/22/2015	Preferred Series 2	458,841	1,000		2,752

	Equity	8/24/2017	Preferred Series 3	93,620	300		587
Total Druva Holdings, Inc.				552,461	1,300		3,339
HighRoads, Inc.	Equity	1/18/2013	Common Stock	190	307		—
Leapwork ApS	Equity	8/25/2023	Preferred Series B2	183,073	250		231		(5)(10)
Lightbend, Inc.	Equity	12/4/2020	Common Stock	38,461	265		23
Nextdoor.com, Inc.	Equity	8/1/2018	Common Stock	1,019,255	4,854		1,927		(4)
Palantir Technologies	Equity	9/23/2020	Common Stock	568,337	3,474		9,758		(4)
SingleStore, Inc.	Equity	11/25/2020	Preferred Series E	580,983	2,000		1,721
	Equity	8/12/2021	Preferred Series F	52,956	280		196
Total SingleStore, Inc.				633,939	2,280		1,917
Verana Health, Inc.	Equity	7/8/2021	Preferred Series E	952,562	2,000		422
ZeroFox, Inc.	Equity	5/7/2020	Common Stock	289,992	101		252		(4)
Subtotal: Software (1.27%)*					23,210		22,919











Sustainable and Renewable Technology
Fulcrum Bioenergy, Inc.	Equity	9/13/2012	Preferred Series C-1	187,265	711		529
Impossible Foods, Inc.	Equity	5/10/2019	Preferred Series E-1	188,611	2,000		479
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	304,487	3,153		180		(4)
Pivot Bio, Inc.	Equity	6/28/2021	Preferred Series D	593,080	4,500		2,684



Proterra, Inc.	Equity	5/28/2015	Common Stock	457,841	542		9		(4)
Subtotal: Sustainable and Renewable Technology (0.22%)*					11,508		3,881
Total: Equity Investments (8.44%)*					$	155,226	$	152,170

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Warrant Investments
Biotechnology Tools
Alamar Biosciences, Inc.	Warrant	6/21/2022	Preferred Series B	46,197	$	36	$	20
PathAI, Inc.	Warrant	12/23/2022	Common Stock	53,418	460		334		(12)
Subtotal: Biotechnology Tools (0.02%)*					496		354
Communications & Networking
Aryaka Networks, Inc.	Warrant	6/28/2022	Common Stock	229,611	123		128		(12)

Subtotal: Communications & Networking (0.01%)*					123		128
Consumer & Business Products
Gadget Guard, LLC	Warrant	6/3/2014	Common Stock	1,662,441	228		—




The Neat Company	Warrant	8/13/2014	Common Stock	54,054	365		—
Whoop, Inc.	Warrant	6/27/2018	Preferred Series C	686,270	18		325
Subtotal: Consumer & Business Products (0.02%)*					611		325
Consumer & Business Services
Carwow LTD	Warrant	12/14/2021	Common Stock	174,163	164		75		(5)(10)
Houzz, Inc.	Warrant	10/29/2019	Common Stock	529,661	20		—
Landing Holdings Inc.	Warrant	3/12/2021	Common Stock	11,806	116		298		(15)
Lendio, Inc.	Warrant	3/29/2019	Preferred Series D	127,032	39		33
Plentific Ltd	Warrant	10/3/2023	Ordinary Shares	19,499	48		51		(5)(10)
Provi	Warrant	12/22/2022	Common Stock	117,042	166		74		(15)
Rhino Labs, Inc.	Warrant	3/12/2021	Common Stock	13,106	470		4		(15)
SeatGeek, Inc.	Warrant	6/12/2019	Common Stock	1,379,761	842		3,065		(16)
Skyword, Inc.	Warrant	11/14/2022	Common Stock	1,607,143	57		58
	Warrant	8/23/2019	Preferred Series B	444,444	83		5
Total Skyword, Inc.				2,051,587	140		63
Snagajob.com, Inc.	Warrant	4/20/2020	Common Stock	600,000	16		—
	Warrant	6/30/2016	Preferred Series A	1,800,000	782		—
	Warrant	8/1/2018	Preferred Series B	1,211,537	62		—
Total Snagajob.com, Inc.				3,611,537	860		—
Thumbtack, Inc.	Warrant	5/1/2018	Common Stock	267,225	844		515		(12)
Udacity, Inc.	Warrant	9/25/2020	Common Stock	486,359	218		—		(12)
Veem, Inc.	Warrant	3/31/2022	Common Stock	98,428	126		16		(12)
Worldremit Group Limited	Warrant	2/11/2021	Preferred Series D	77,215	129		23		(5)(10)(12)(16)



	Warrant	8/27/2021	Preferred Series E	1,868	26		—		(5)(10)(16)
Total Worldremit Group Limited				79,083	155		23
Subtotal: Consumer & Business Services (0.23%)*					4,208		4,217

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Diversified Financial Services
Next Insurance, Inc.	Warrant	2/3/2023	Common Stock	522,930	$	214	$	554
Subtotal: Diversified Financial Services (0.03%)*					214		554
Drug Delivery
Aerami Therapeutics Holdings, Inc.	Warrant	6/1/2016	Common Stock	67,069	—		—
BioQ Pharma Incorporated	Warrant	10/27/2014	Common Stock	459,183	2		—
PDS Biotechnology Corporation	Warrant	8/28/2014	Common Stock	3,929	390		—		(4)
Subtotal: Drug Delivery (0.00%)*					392		—
Drug Discovery & Development
ADMA Biologics, Inc.	Warrant	2/24/2014	Common Stock	58,000	166		11		(4)
Akero Therapeutics, Inc.	Warrant	6/15/2022	Common Stock	22,949	175		335		(4)(10)
AmplifyBio, LLC	Warrant	12/27/2022	Class A Units	69,239	237		184		(15)
Axsome Therapeutics, Inc.	Warrant	9/25/2020	Common Stock	61,004	1,290		1,657		(4)(10)(12)(16)
Cellarity, Inc.	Warrant	12/8/2021	Preferred Series B	100,000	287		201		(15)
Century Therapeutics, Inc.	Warrant	9/14/2020	Common Stock	16,112	37		1		(4)
COMPASS Pathways plc	Warrant	6/30/2023	Ordinary Shares	75,376	278		285		(4)(5)(10)
Curevo, Inc.	Warrant	6/9/2023	Common Stock	95,221	233		251		(15)
Dermavant Sciences Ltd.	Warrant	5/31/2019	Common Stock	223,642	101		7		(5)(10)
enGene, Inc.	Warrant	12/22/2023	Common Stock	43,689	118		179		(4)(5)(10)
Evofem Biosciences, Inc.	Warrant	6/11/2014	Common Stock	3	266		—		(4)
Fresh Tracks Therapeutics, Inc. (p.k.a. Brickell Biotech, Inc.)	Warrant	2/18/2016	Common Stock	201	119		—		(4)
Heron Therapeutics, Inc.	Warrant	8/9/2023	Common Stock	238,095	228		223		(4)(15)
Kineta, Inc.	Warrant	12/20/2019	Common Stock	2,202	110		—		(4)
Kura Oncology, Inc.	Warrant	11/2/2022	Common Stock	14,342	88		63		(4)(10)(15)
Madrigal Pharmaceutical, Inc.	Warrant	5/9/2022	Common Stock	13,229	570		1,842		(4)(10)

Phathom Pharmaceuticals, Inc.	Warrant	9/17/2021	Common Stock	64,687	848		68		(4)(10)(12)(15)(16)
Redshift Bioanalytics, Inc.	Warrant	3/23/2022	Preferred Series E	475,510	20		6		(15)
Scynexis, Inc.	Warrant	5/14/2021	Common Stock	106,035	296		28		(4)
TG Therapeutics, Inc.	Warrant	2/28/2019	Common Stock	264,226	1,284		2,583		(4)(10)(12)
Valo Health, LLC	Warrant	6/15/2020	Common Units	102,216	256		153
X4 Pharmaceuticals, Inc.	Warrant	3/18/2019	Common Stock	1,392,787	510		225		(4)


Subtotal: Drug Discovery & Development (0.46%)*					7,517		8,302
Electronics & Computer Hardware
908 Devices, Inc.	Warrant	3/15/2017	Common Stock	49,078	101		175		(4)
Locus Robotics Corp.	Warrant	6/21/2022	Common Stock	8,503	34		102
Skydio, Inc.	Warrant	11/8/2021	Common Stock	622,255	557		114
Subtotal: Electronics & Computer Hardware (0.02%)*					692		391

See notes to consolidated financial statements

Table of Contents

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Healthcare Services, Other
Modern Life, Inc.	Warrant	3/30/2023	Common Stock	37,618	$	164	$	165
Recover Together, Inc.	Warrant	7/3/2023	Common Stock	194,830	382		327
Strive Health Holdings, LLC	Warrant	9/28/2023	Common Units	51,760	83		95		(15)


Vida Health, Inc.	Warrant	3/28/2022	Common Stock	192,431	121		9
Subtotal: Healthcare Services, Other (0.03%)*					750		596
Information Services
Capella Space Corp.	Warrant	10/21/2021	Common Stock	176,200	207		33		(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		362
Signal Media Limited	Warrant	6/29/2022	Common Stock	113,828	49		91		(5)(10)
Subtotal: Information Services (0.03%)*					694		486
Manufacturing Technology
Bright Machines, Inc.	Warrant	3/31/2022	Common Stock	392,308	537		279
MacroFab, Inc.	Warrant	3/23/2022	Common Stock	1,111,111	528		677
Xometry, Inc.	Warrant	5/9/2018	Common Stock	87,784	47		2,044		(4)
Subtotal: Manufacturing Technology (0.17%)*					1,112		3,000
Media/Content/Info
Fever Labs, Inc.	Warrant	12/30/2022	Preferred Series E-1	369,370	67		235
Subtotal: Media/Content/Info (0.01%)*					67		235
Medical Devices & Equipment
Intuity Medical, Inc.	Warrant	12/29/2017	Preferred Series B-1	3,076,323	294		—
Outset Medical, Inc.	Warrant	9/27/2013	Common Stock	62,794	401		78		(4)
Senseonics Holdings, Inc.	Warrant	9/8/2023	Common Stock	728,317	200		184		(4)




Tela Bio, Inc.	Warrant	3/31/2017	Common Stock	15,712	61		—		(4)
Subtotal: Medical Devices & Equipment (0.01%)*					956		262
Semiconductors
Achronix Semiconductor Corporation	Warrant	6/26/2015	Preferred Series D-2	750,000	99		811

Subtotal: Semiconductors (0.04%)*					99		811
Software
Aria Systems, Inc.	Warrant	5/22/2015	Preferred Series G	231,535	74		—
Automation Anywhere, Inc.	Warrant	9/23/2022	Common Stock	254,778	448		430
Bitsight Technologies, Inc.	Warrant	11/18/2020	Common Stock	29,691	284		666
Brain Corporation	Warrant	10/4/2021	Common Stock	194,629	165		47		(15)
CloudBolt Software, Inc.	Warrant	9/30/2020	Common Stock	211,342	117		12
Cloudian, Inc.	Warrant	11/6/2018	Common Stock	477,454	71		29
Cloudpay, Inc.	Warrant	4/10/2018	Preferred Series B	6,763	54		844		(5)(10)
Couchbase, Inc.	Warrant	4/25/2019	Common Stock	105,350	462		1,225		(4)

See notes to consolidated financial statements

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HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Cutover, Inc.	Warrant	9/21/2022	Common Stock	102,898	$	26	$	62	(5)(10)(12)
Dashlane, Inc.	Warrant	3/11/2019	Common Stock	770,838	461		258
Delphix Corp.	Warrant	10/8/2019	Common Stock	718,898	1,594		3,801
Demandbase, Inc.	Warrant	8/2/2021	Common Stock	727,047	545		396
DNAnexus, Inc.	Warrant	3/21/2014	Preferred Series C	909,091	97		47
Dragos, Inc.	Warrant	6/28/2023	Common Stock	49,309	1,452		1,207
DroneDeploy, Inc.	Warrant	6/30/2022	Common Stock	95,911	278		413
Eigen Technologies Ltd.	Warrant	4/13/2022	Common Stock	522	8		4		(5)(10)
Elation Health, Inc.	Warrant	9/12/2022	Common Stock	362,837	583		188
First Insight, Inc.	Warrant	5/10/2018	Preferred Series B	75,917	96		77
Fulfil Solutions, Inc.	Warrant	7/29/2022	Common Stock	84,995	325		456
Kore.ai, Inc.	Warrant	3/31/2023	Preferred Series C	64,293	208		243
Leapwork ApS	Warrant	1/23/2023	Common Stock	39,948	16		35		(5)(10)(12)
Lightbend, Inc.	Warrant	2/14/2018	Preferred Series D	89,685	131		49
Mixpanel, Inc.	Warrant	9/30/2020	Common Stock	82,362	252		306
Onna Technologies, Inc.	Warrant	7/5/2023	Common Stock	172,867	60		39
Poplicus, Inc.	Warrant	5/28/2014	Common Stock	132,168	—		—
Reltio, Inc.	Warrant	6/30/2020	Common Stock	69,120	215		447
Simon Data, Inc.	Warrant	3/22/2023	Common Stock	77,934	96		76		(12)
SingleStore, Inc.	Warrant	4/28/2020	Preferred Series D	312,596	103		386
Sisense Ltd.	Warrant	6/8/2023	Ordinary Shares	321,956	174		128		(5)(10)
Suzy, Inc.	Warrant	8/24/2023	Common Stock	292,936	367		354		(15)
The Faction Group LLC	Warrant	11/3/2014	Preferred Series AA	8,076	234		904
Tipalti Solutions Ltd.	Warrant	3/22/2023	Ordinary Shares	254,877	174		234		(5)(10)
VideoAmp, Inc.	Warrant	1/21/2022	Common Stock	152,048	1,275		186		(15)
Subtotal: Software (0.75%)*					10,445		13,549
Surgical Devices

TransMedics Group, Inc.	Warrant	9/11/2015	Common Stock	14,440	39		676		(4)
Subtotal: Surgical Devices (0.04%)*					39		676

Sustainable and Renewable Technology
Ampion, PBC	Warrant	4/15/2022	Common Stock	18,472	52		36
Halio, Inc.	Warrant	4/22/2014	Preferred Series A	325,000	155		36
	Warrant	4/7/2015	Preferred Series B	131,883	63		11
Total Halio, Inc.				456,883	218		47

Polyera Corporation	Warrant	3/24/2015	Preferred Series C	150,036	269		—


Subtotal: Sustainable and Renewable Technology (0.00%)*					539		83
Total: Warrant Investments (1.88%)*					$	28,954	$	33,969
Total Investments in Securities (179.92%)*					$	3,242,550	$	3,243,438

See notes to consolidated financial statements

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HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)


Portfolio Company	Type of Investment	Acquisition Date(4)	Series (3)	Shares	Cost (2)		Value		Footnotes
Investment Funds & Vehicles Investments
Drug Discovery & Development
Forbion Growth Opportunities Fund I C.V.	Investment Funds & Vehicles	11/16/2020			$	3,783	$	3,619	(5)(10)(17)
Forbion Growth Opportunities Fund II C.V.	Investment Funds & Vehicles	6/23/2022			319		611		(5)(10)(17)
Subtotal: Drug Discovery & Development (0.23%)*					4,102		4,230
Software
Liberty Zim Co-Invest L.P.	Investment Funds & Vehicles	7/21/2022			381		378		(5)(10)
Subtotal: Software (0.02%)*					381		378
Total: Investment Funds & Vehicles Investments (0.26%)*					$	4,483	$	4,608
Total Investments before Cash and Cash Equivalents (180.18%)*					$	3,247,033	$	3,248,046

Cash & Cash Equivalents
GS Financial Square Government Fund	Cash & Cash Equivalents		FGTXX/38141W273		$	56,000	$	56,000
Total: Investments in Cash & Cash Equivalents (3.11%)*					$	56,000	$	56,000
Total: Investments after Cash & Cash Equivalents (183.28%)*					$	3,303,033	$	3,304,046


Foreign Currency Forward Contracts

Foreign Currency	Settlement Date	Counterparty	Amount		Transaction	US $ Value at Settlement Date		Value
Great British Pound (GBP)	6/3/2024	Goldman Sachs Bank USA	£	19,288	Sold	$	23,810	$	(766)
Total: Total Foreign Currency Forward ((0.04))*						$	23,810	$	(766)

(1)Interest rate PRIME represents 8.50% as of December 31, 2023. 1-month SOFR, 3-month SOFR, and 6-month SOFR represent 5.34%, 5.36%, and 5.35%, respectively, as of December 31, 2023.

(2)Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $118.3 million, $115.9 million, and $2.4 million, respectively. The tax cost of investments is $3.2 billion.

(3)Preferred and common stock, warrants, and equity interests are generally non-income producing.

(4)Except for warrants in 24 publicly traded companies and common stock in 36 publicly traded companies, all investments are restricted as of December 31, 2023 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)[Reserved]

(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 December 31, 2023, and is therefore considered non-income producing.

(9)Denotes that all or a portion of the debt investment is convertible debt.

(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”).

See notes to consolidated financial statements

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HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2023

(dollars in thousands)

(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 December 31, 2023.

(17)Denotes that there is an unfunded contractual commitment available at the request of this portfolio company as of December 31, 2023 (Refer to “Note 11 — Commitments and Contingencies”).

(19)Denotes second lien senior secured debt.

(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 December 31, 2023, the Black Crow AI, Inc. affiliates promissory notes had an outstanding balance of $2.4 million.

See notes to consolidated financial statements

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HERCULES CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Description of Business

Hercules Capital, Inc. (the “Company”) is a specialty finance company focused on providing senior secured loans to high-growth, innovative venture capital-backed and institutional-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. The Company sources its investments through its principal office located in San Mateo, CA, as well as through its additional offices in Boston, MA, New York, NY, Bethesda, MD, San Diego, CA, Denver, CO, and London, United Kingdom. The Company was incorporated under the General Corporation Law of the State of Maryland in December 2003.

The Company is an internally managed, non-diversified closed-end investment company that has elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). From incorporation through December 31, 2005, the Company was subject to tax as a corporation under Subchapter C of the Internal Revenue Code of 1986, as amended (the “Code”). Effective January 1, 2006, the Company elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Code (see “Note 6 - Income Taxes”).

The Company is not registered with the Commodity Futures Trading Commission (“CFTC”). The Company has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”), pursuant to Rule 4.5 under the CEA. The Company is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA.

Hercules Capital IV, L.P. (“HC IV”) is our wholly owned Delaware limited partnership that was formed in December 2010. HC IV received a license to operate as a Small Business Investment Company (“SBIC”) under the authority of the Small Business Administration (“SBA”) on October 27, 2020. SBICs are subject to a variety of regulations concerning, among other things, the size and nature of the companies in which they may invest and the structure of those investments. Hercules Technology SBIC Management, LLC (“HTM”), is a wholly owned limited liability company subsidiary of the Company, which was formed in November 2003 and serves as the general partner of HC IV.

The Company has also established certain wholly owned subsidiaries, all of which are structured as Delaware corporations or Limited Liability Companies (“LLCs”), to hold portfolio companies organized as LLCs (or other forms of pass-through entities). These subsidiaries are consolidated for financial reporting purposes in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Certain of the subsidiaries are taxable and not consolidated with Hercules for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities as a result of their ownership of certain portfolio investments.

The Company formed Hercules Capital Management LLC and Hercules Adviser LLC in 2020 as wholly owned Delaware limited liability subsidiaries. The Company was granted no-action relief by the staff of the Securities and Exchange Commission (“SEC”) to allow Hercules Adviser LLC (the “Adviser Subsidiary”) to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended (“Advisers Act”). The Adviser Subsidiary provides investment advisory and related services to investment vehicles (“Adviser Funds”) owned by one or more unrelated third-party investors (“External Parties”). The Adviser Subsidiary is owned by Hercules Capital Management LLC and collectively held and presented with Hercules Partner Holdings, LLC, which separately wholly owns the general partnership vehicles to each of the Adviser Funds.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated interim financial statements have been prepared in conformity with U.S. GAAP for interim financial information, and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, all adjustments consisting solely of normal recurring accruals considered necessary for the fair statement of consolidated financial statements for the interim periods have been included. The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the full fiscal year. Therefore, the interim unaudited consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023. The year-end Consolidated Statements of Assets and Liabilities data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The Company’s functional currency is U.S. dollars (“USD”) and these consolidated financial statements have been prepared in that currency.

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As an investment company, the Company follows accounting and reporting guidance as set forth in Topic 946, Financial Services – Investment Companies (“ASC Topic 946”) of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, as amended (“ASC”). As provided under Regulation S-X and ASC Topic 946, the Company will not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Rather, an investment company’s interest in portfolio companies that are not investment companies should be measured at fair value in accordance with ASC Topic 946. The Adviser Subsidiary is not an investment company as defined in ASC Topic 946 and further, the Adviser Subsidiary provides investment advisory services exclusively to the Adviser Funds which are owned by External Parties. As such pursuant to ASC Topic 946, the Adviser Subsidiary is accounted for as a portfolio investment of the Company held at fair value and is not consolidated.

Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses, gains and losses during the reported periods. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies, other macro-economic developments (for example, global pandemics, natural disasters, terrorism, international conflicts and war), and any other parameters used in determining these estimates and assumptions could cause actual results to differ from these estimates and assumptions.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company, its consolidated subsidiaries, and all Variable Interest Entities (“VIE”) of which the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation.

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could be significant to the VIE.

To assess whether the Company has the power to direct the activities of a VIE that most significantly impact its economic performance, the Company considers all the facts and circumstances including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of a VIE. To assess whether the Company has the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If the Company determines that it is the party with the power to make the most significant decisions affecting the VIE, and the Company has a potentially significant interest in the VIE, then it consolidates the VIE.

The Company performs periodic reassessments, usually quarterly, of whether it is the primary beneficiary of a VIE. The reassessment process considers whether the Company has acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. The Company also reconsiders whether entities previously determined not to be VIEs have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework.

The Company's Consolidated Financial Statements included the accounts of the securitization trust, a VIE, formed in conjunction with the issuance of the 2031 Asset-Backed Notes (as defined in “Note 5 – Debt”). The assets of the Company's securitization VIE are restricted to be used to settle obligations of its consolidated securitization VIE, which are disclosed parenthetically on the Consolidated Statements of Assets and Liabilities. The liabilities are the only obligations of its consolidated securitization VIE, and the creditors (or beneficial interest holders) do not have recourse to the Company's general credit.

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Fair Value Measurements

The Company follows guidance in ASC Topic 820, Fair Value Measurement (“ASC Topic 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a framework for measuring the fair value of assets and liabilities and outlines a three-tier hierarchy which maximizes the use of observable market data input and minimizes the use of unobservable inputs to establish a classification of fair value measurements. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. ASC Topic 820 also requires disclosure for fair value measurements based on the level within the hierarchy of the information used in the valuation. ASC Topic 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value.

The Company categorizes all investments recorded at fair value in accordance with ASC Topic 820 based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC Topic 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets at the measurement date. The types of assets carried at Level 1 fair value generally are equities listed in active markets.

Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset in connection with market data at the measurement date and for the extent of the instrument’s anticipated life. Fair valued assets that are generally included in this category are publicly held debt investments and warrants held in a public company.

Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset at the measurement date. It includes prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Generally, assets carried at fair value and included in this category are the debt investments and warrants and equities held in a private company.

Valuation of Investments

The most significant estimate inherent in the preparation of the Company’s consolidated financial statements is the valuation of investments and the related amounts of unrealized appreciation and depreciation of investments recorded.

As of March 31, 2024, approximately 96.6% of the Company’s total assets represented investments in portfolio companies whose fair value is determined in good faith by the Company's Valuation Committee and approved by the Board. Fair Value, as defined in Section 2(a)(41) of the 1940 Act, is (i) the market price for those securities for which a market quotation is readily available and (ii) for all other securities and assets, fair value is as determined in good faith by the valuation designee of the Board. The Company’s investments are carried at fair value in accordance with the 1940 Act and ASC Topic 946 and measured in accordance with ASC Topic 820. The Company provides financing solutions to high-growth and innovative venture capital-backed and institutional-backed companies in technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology at all stages of development. Given the nature of investing in these types of businesses, substantially all of the Company’s investments in these portfolio companies are considered Level 3 assets under ASC Topic 820 because there generally is no known or accessible market or market indexes for these investment securities to be traded or exchanged. As such, the Company values substantially all of its investments at fair value as determined in good faith pursuant to a consistent valuation policy established by the Board in accordance with the provisions of ASC Topic 820 and the 1940 Act. Due to the inherent uncertainty in determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments determined in good faith by the Company's Valuation Committee and approved by the Board may differ significantly from the value that would have been used had a readily available market existed for such investments, and the differences could be material.

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In accordance with procedures established by its Board, the Company values investments on a quarterly basis following a multistep valuation process. Pursuant to the amended SEC Rule 2a-5 of the 1940 Act, the Board has designated the Company’s Valuation Committee as the “valuation designee”. The quarterly Board approved multi-step valuation process is described below:

(1)The Company’s quarterly valuation process begins with each portfolio company being initially valued by the investment professionals responsible for the portfolio investment;

(2)Preliminary valuation conclusions and business-based assumptions, along with any applicable fair value marks provided by an independent firm, are reviewed with the Company’s investment committee and certain member(s) of credit group as necessary;

(3)The Valuation Committee reviews the preliminary valuations recommended by the investment committee and certain member(s) of the credit group of each investment in the portfolio and determines the fair value of each investment in the Company’s portfolio in good faith and recommends the valuation determinations to the Audit Committee of the Board;

(4)The Audit Committee of the Board provides oversight of the quarterly valuation process in accordance with Rule 2a-5, which includes a review of the quarterly reports prepared by the Valuation Committee, reviews the fair valuation determinations made by the Valuation Committee, and approves such valuations for inclusion in public reporting and disclosures, as appropriate; and

(5)The Board, upon the recommendation of the Audit Committee, discusses valuations and approves the fair value of each investment in the Company’s portfolio.

Investments purchased within the preceding two calendar quarters before the valuation date and debt investments with remaining maturities within 12 months or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity, unless such valuation, in the judgment of the Company, does not represent fair value. In this case such investments shall be valued at fair value as determined in good faith by the Valuation Committee and approved by the Board. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by the Valuation Committee and approved by the Board.

As part of the overall process noted above, the Company engages one or more independent valuation firm(s) to provide management with assistance in determining the fair value of selected portfolio investments each quarter. In selecting which portfolio investments to engage an independent valuation firm, the Company considers a number of factors, including, but not limited to, the potential for material fluctuations in valuation results, size, credit quality, and the time lapse since the last valuation of the portfolio investment by an independent valuation firm. The scope of services rendered by the independent valuation firm is at the discretion of the Valuation Committee and subject to approval of the Board, and the Company may engage an independent valuation firm to value all or some of our portfolio investments. In determining the fair value of a portfolio investment in good faith, the Company recognizes these determinations are made using the best available information that is knowable or reasonably knowable. In addition, changes in the market environment, portfolio company performance and other events that may occur over the duration of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. The change in fair value of each individual investment is recorded as an adjustment to the investment's fair value and the change is reflected in unrealized appreciation or depreciation.

Debt Investments

The Company principally invests in debt securities with a particular emphasis on Structured Debt. The Company uses the term “Structured Debt” to refer to a debt investment that is structured with an equity, warrant, option, or other right to purchase or convert into common or preferred stock. Given the nature of lending to venture capital-backed and institutional-backed companies in technology-related industries, substantially all of the Company’s debt investments in these portfolio companies are considered Level 3 assets under ASC Topic 820 because there generally is no known or accessible market or market indexes for debt instruments for these investment securities to be traded or exchanged. The Company may, from time to time, invest in public debt of companies that meet the Company’s investment objectives, and to the extent market quotations or other pricing indicators (i.e. broker quotes) are available, these investments are considered Level 1 or 2 assets in line with ASC Topic 820.

In making a good faith determination of the value of the Company’s investments, the Company generally starts with the cost basis of the investment, which includes the value attributed to the original issue discount (“OID”), if any, and payment-in-kind (“PIK”) interest or other receivables which have been accrued as earned. The Company then applies the valuation methods as set forth below.

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The Company assumes the sale of each debt security in a hypothetical market to a hypothetical market participant where buyers and sellers are willing participants. The hypothetical market does not include scenarios where the underlying security was simply repaid or extinguished, but includes an exit concept. The Company determines the yield at inception for each debt investment. The Company then uses senior secured, leveraged loan yields provided by third party providers to calibrate the change in market yields between inception of the debt investment and the measurement date. Industry specific indices and other relevant market data are used to benchmark and assess market-based movements for reasonableness. As part of determining the fair value, the Company also evaluates the collateral for recoverability of the debt investments. The Company considers each portfolio company’s credit rating, security liens and other characteristics of the investment to adjust the baseline yield to derive a credit adjusted hypothetical yield for each investment as of the measurement date. The anticipated future cash flows from each investment are then discounted at the hypothetical yield to estimate each investment’s fair value as of the measurement date. The Company’s process includes an analysis of, among other things, the underlying investment performance, the current portfolio company’s financial condition and market changing events that impact valuation, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date.

The Company values debt securities that are traded on a public exchange at the prevailing market price as of the valuation date. For syndicated debt investments, for which sufficient market data is available and liquidity, the Company values debt securities using broker quotes and bond indices amongst other factors. If there is a significant deterioration of the credit quality of a debt investment, the Company may consider other factors to estimate fair value, including the proceeds that would be received in a liquidation analysis.

The Company records unrealized depreciation on investments when it believes that an investment has decreased in value, including where collection of a debt investment is doubtful or, if under the in-exchange premise, when the value of a debt investment is less than amortized cost of the investment. Conversely, where appropriate, the Company records unrealized appreciation if it believes that the underlying portfolio company has appreciated in value and, therefore, that its investment has also appreciated in value or, if under the in-exchange premise, the value of a debt investment is greater than amortized cost.

When originating a debt instrument, the Company generally receives warrants or other equity securities from the borrower. The Company determines the cost basis of the warrants or other equity securities received based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and warrants or other equity securities received. Any resulting discount on the debt investments from recording warrant or other equity instruments is accreted into interest income over the life of the debt investment.

Equity Securities and Warrants

Securities that are traded in the over-the-counter markets or on a stock exchange will be valued at the prevailing bid price at period end. The Company has a limited amount of equity securities in public companies. In accordance with the 1940 Act, unrestricted publicly traded securities for which market quotations are readily available are valued at the closing market quote on the measurement date.

At each reporting date, privately held warrant and equity securities are valued based on an analysis of various factors including, but not limited to, the portfolio company’s operating performance and financial condition, general market conditions, price to enterprise value or price to equity ratios, discounted cash flow, valuation comparisons to comparable public companies or other industry benchmarks. When an external event occurs, such as a purchase transaction, public offering, or subsequent equity sale, the pricing indicated by that external event is utilized to corroborate the Company’s valuation of the warrant and equity securities. The Company periodically reviews the valuation of its portfolio companies that have not been involved in a qualifying external event to determine if the enterprise value of the portfolio company may have increased or decreased since the last valuation measurement date. Absent a qualifying external event, the Company estimates the fair value of warrants using a Black Scholes OPM. For certain privately held equity securities, the income approach is used, in which the Company converts future amounts (for example, cash flows or earnings) to a net present value. The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Company may take into account include, as relevant: applicable market yields and multiples, the portfolio company’s capital structure, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, and enterprise value among other factors.

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Investment Funds & Vehicles

The Company applies the practical expedient provided by the ASC Topic 820 relating to investments in certain entities that calculate Net Asset Value (“NAV”) per share (or its equivalent). ASC Topic 820 permits an entity holding investments in certain entities that either are investment companies, or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy as per ASC Topic 820.

Derivative Instruments

The Company's derivative instruments include foreign currency forward contracts. The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result, the Company presents changes in fair value through net change in unrealized appreciation (depreciation) on non-control/non-affiliate investments in the Consolidated Statements of Operations. Realized gains and losses of the derivative instruments are included in net realized gains (losses) on non-control/non-affiliate investments in the Consolidated Statements of Operations. The net cash flows realized on settlement of derivatives are included in realized (gain) loss in the Consolidated Statements of Cash Flows.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents consist solely of funds deposited with financial institutions and short-term liquid investments in money market deposit accounts. Cash and cash equivalents are carried at cost, which approximates fair value. As of March 31, 2024, the Company held $588 thousand (Cost basis $628 thousand) of foreign cash. As of December 31, 2023, the Company held $804 thousand (Cost basis $842 thousand) of foreign cash. Restricted cash includes amounts that are held as collateral securing certain of the Company’s financing transactions, including amounts held in a securitization trust by trustees related to its 2031 Asset-Backed Notes (refer to “Note 5 – Debt”).

Other Assets

Other assets generally consist of prepaid expenses, debt issuance costs on our Credit Facilities net of accumulated amortization, fixed assets net of accumulated depreciation, deferred revenues and deposits and other assets, including escrow and other investment related receivables.

Escrow Receivables

Escrow receivables are collected in accordance with the terms and conditions of the escrow agreement. Escrow balances are typically distributed over a period greater than one year and may accrue interest during the escrow period. Escrow balances are measured for collectability on at least a quarterly basis and fair value is determined based on the amount of the estimated recoverable balances and the contractual maturity date.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, and operating lease liability obligations in our Consolidated Statements of Assets and Liabilities. The Company recognizes a ROU asset and an operating lease liability for all leases, with the exception of short-term leases which have a term of 12 months or less. ROU assets represent the right to use an underlying asset for the lease term and operating lease liability obligations represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The Company has lease agreements with lease and non-lease components and has separated these components when determining the ROU assets and the related lease liabilities. As most of the Company’s leases do not provide an implicit rate, the Company estimated its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The ROU asset also includes any lease payments made and excludes lease incentives and lease direct costs. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. See “Note 11 – Commitments and Contingencies”.

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Investment Income Recognition

The Company’s investment portfolio generates interest, fee, and dividend income. The Company records interest income on an accrual basis, recognizing income as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. The Company’s Structured Debt investments may generate OID. The OID received upfront typically represents the value of detachable equity, warrants, or another asset obtained in conjunction with the acquisition of debt securities. The OID is accreted into interest income over the term of the loan as a yield enhancement following the effective interest method. Additionally, certain debt investments in the Company’s portfolio earn PIK interest. The Company records PIK interest in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. Contractual PIK interest represents contractually deferred interest that is added to the loan balance as principal and is generally due at the end of the loan term.

The Company’s loan origination activities generate fee income, which is generally collected in advance and includes loan commitment, facility fees for due diligence and structuring, as well as fees for transaction services and management services rendered by the Company to portfolio companies and other third parties. Loan commitment and facility fees are capitalized and then amortized into income over the contractual life of the loan using the effective interest method. One-off fees for transaction and management services are generally recognized as income in the period when the services are rendered. The Company may also earn loan exit fees, which are contractual fees that are generally received upon the earlier of maturity or prepayment. The Company accretes loan exit fees into interest income following the effective interest method, recognizing income as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected.

From time to time, additional fees may be earned by the Company relating to specific loan modifications, prepayments, or other one-off events. These non-recurring fees are either amortized into fee income over the remaining term of the loan commencing in the quarter for loan modifications, or recognized currently as one-time fee income for items such as prepayment penalties, fees related to select covenant default waiver fees, and acceleration of previously deferred loan fees and OID related to early loan pay-off or material modification of the specific debt outstanding.

Debt investments are placed on non-accrual status when it is probable that principal, interest or fees will not be collected according to contractual terms. When a debt investment is placed on non-accrual status, the Company ceases to recognize interest and fee income until the portfolio company has paid all principal and interest due or demonstrated the ability to repay its current and future contractual obligations to the Company. The Company may determine to continue to accrue interest on a loan where the investment has sufficient collateral value to collect all of the contractual amount due and is in the process of collection. Interest collected on non-accrual investments are generally applied to principal.

Realized Gains or Losses

Realized gains or losses are measured by the difference between the net proceeds from the sale or other realization event and the cost basis of the investment using the specific identification method without regard to unrealized appreciation or depreciation previously recognized, and includes investments charged off during the period, net of recoveries.

Secured Borrowings

The Company follows the guidance in ASC Topic 860, Transfers and Servicing (“ASC Topic 860”), when accounting for participation and other partial loan sales. Certain loan sales do not qualify for sale accounting under ASC Topic 860 because these sales do not meet the definition of a “participating interest”, as defined in the guidance, in order for sale accounting treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest, or which are not eligible for sale accounting treatment remain as an investment on the consolidated balance sheet as required under U.S. GAAP and the proceeds are recorded as a secured borrowing. Secured borrowings are carried at fair value.

Equity Offering Expenses

The Company’s offering expenses are charged against the proceeds from equity offerings when received as a reduction of capital upon completion of an offering of registered securities.

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Debt

The debt of the Company is carried at amortized cost which is comprised of the principal amount borrowed net of any unamortized discount and debt issuance costs. Discounts and issuance costs are accreted to interest expense and loan fees, respectively, using the straight-line method, which closely approximates the effective yield method, over the remaining life of the underlying debt obligations (see “Note 5 – Debt”). Accrued but unpaid interest is included within Accounts payable and accrued liabilities on the Consolidated Statements of Assets and Liabilities. In the event that the debt is extinguished, either partially or in full, before maturity, the Company recognizes the gain or loss in the Consolidated Statements of Operations within net realized gains (losses) as a “Loss on extinguishment of debt”.

Debt Issuance Costs

Debt issuance costs are fees and other direct incremental costs incurred by the Company in obtaining debt financing and are recognized as prepaid expenses and amortized over the life of the related debt instrument using the effective yield method or the straight-line method, which closely approximates the effective yield method. In accordance with ASC Subtopic 835-30, Interest – Imputation of Interest, debt issuance costs are presented as a reduction to the associated liability balance on the Consolidated Statements of Assets and Liabilities, except for debt issuance costs associated with line-of-credit arrangements.

Stock-Based Compensation

The Company has issued and may, from time to time, issue stock options, restricted stock, and other stock-based compensation awards to employees and directors. Management follows the guidance set forth under ASC Topic 718, to account for stock-based compensation awards granted. Under ASC Topic 718, compensation expense associated with stock-based compensation is measured at the grant date based on the fair value of the award and is recognized over the vesting period. Determining the appropriate fair value model and calculating the fair value of stock-based awards at the grant date requires judgment. This includes certain assumptions such as stock price volatility, forfeiture rate, expected outcome probability, and expected option life, as applicable to each award. In accordance with ASC Topic 480, certain stock awards are classified as a liability. The compensation expense associated with these awards is recognized in the same manner as all other stock-based compensation. The award liability is recorded as deferred compensation and included in Accounts payable and accrued liabilities.

Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC Topic 740 Income Taxes, under which income taxes are provided for amounts currently payable and for amounts deferred based upon the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provisions of the enacted tax law. Valuation allowances may be used to reduce deferred tax assets to the amount likely to be realized.

Because taxable income as determined in accordance with U.S. federal tax regulations differ from U.S. GAAP, taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation, as such gains or losses are not included in taxable income until they are realized. Permanent differences are reclassified among capital accounts in the financial statements to reflect their appropriate tax character. Permanent differences may also result from the change in the classification of certain items, such as the treatment of short-term gains as ordinary income for tax purposes. Temporary differences arise when certain items of income, expense, gains or losses are recognized at some time in the future for tax or U.S. GAAP purposes.

The Company has elected to be treated as a RIC under Subchapter M of the Code. To qualify as a RIC, the Company is required to meet certain income and asset tests in addition to distributing dividends of an amount generally at least equal to 90% of its investment company taxable income, as defined by the Code and determined without regard to any deduction for distributions paid, to its stockholders. See “Certain United States Federal Income Tax Considerations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 15, 2024 for additional information.

As a RIC, the Company is subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income unless the Company makes distributions treated as dividends for U.S. federal income tax purposes in a timely manner to its stockholders in respect of each calendar year of an amount at least equal to the sum of (1) 98% of its ordinary income (taking into account certain deferrals and elections) for each calendar year, (2) 98.2% of its capital gain net income (adjusted for certain ordinary losses) for the 1-year period ending October 31 of each such calendar year and (3) any ordinary income and capital gain net income realized, but not distributed, in preceding calendar years. The Company will not be subject to this excise tax on any amount on which the Company incurred U.S. federal income tax (such as the tax imposed on a RIC’s retained net capital gains).

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The amount to be paid out as a distribution is determined by the Board each quarter and is based upon the annual earnings estimated by the management of the Company. To the extent that the Company's earnings fall below the amount of the dividend distributions declared, however, a portion of the total amount of the Company's distributions for the fiscal year may be deemed a return of capital.

Depending on the level of taxable income earned in a taxable year, the Company may choose to carry over taxable income in excess of current taxable year distributions from such taxable income into the next taxable year and incur a 4% excise tax on such taxable income, as required. The maximum amount of excess taxable income that may be carried over for distribution in the next taxable year under the Code is the total amount of distributions paid in the following taxable year, subject to certain declaration and payment guidelines. To the extent the Company chooses to carry over taxable income into the next taxable year, distributions declared and paid by the Company in a taxable year may differ from the Company’s taxable income for that taxable year as such distributions may include the distribution of current taxable year taxable income, the distribution of prior taxable year taxable income carried over into and distributed in the current taxable year, or returns of capital. The Company intends to timely distribute to its stockholders substantially all of its annual taxable income for each year, except that it may retain certain net capital gains for reinvestment and, depending upon the level of taxable income earned in a year, it may choose to carry forward taxable income for distribution in the following year and pay any applicable U.S. federal excise tax.

Earnings Per Share (“EPS”)

Basic EPS is calculated by dividing net earnings applicable to common stockholders by the weighted average number of common shares outstanding. Common shares outstanding includes common stock and restricted stock for which no future service is required as a condition to the delivery of the underlying common stock. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the dilutive effect of the common stock deliverable pursuant to stock options and to restricted stock for which future service is required as a condition to the delivery of the underlying common stock. In accordance with ASC 260-10-45-60A, the Company uses the two-class method in the computation of basic EPS and diluted EPS, if applicable.

Comprehensive Income

The Company reports all changes in comprehensive income in the Consolidated Statements of Operations. The Company did not have other comprehensive income for the three months ended March 31, 2024 or 2023. The Company’s comprehensive income is equal to its net increase in net assets resulting from operations.

Distributions

Distributions to common stockholders are approved by the Board on a quarterly basis and the distribution payable is recorded on the ex-dividend date. The Company maintains an “opt out” dividend reinvestment plan that provides for reinvestment of the Company’s distribution on behalf of the Company’s stockholders, unless a stockholder elects to receive cash. As a result, if the Company declares a distribution, cash distributions will be automatically reinvested in additional shares of its common stock unless the stockholder specifically “opts out” of the dividend reinvestment plan and chooses to receive cash distributions.

Segments

The Company lends to and invests in portfolio companies in various technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these loan and investment relationships has similar business and economic characteristics, they have been aggregated into a single reportable segment.

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3. Fair Value of Financial Instruments

Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Investments measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations as of March 31, 2024 and December 31, 2023.


(in thousands)	Balance as of March 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description
Other assets
Escrow and Other Investment Receivables	$	5,020	$	—	$	—	$	5,020

Investments
Senior Secured Debt	$	3,312,225	$	—	$	—	$	3,312,225
Unsecured Debt	70,745		—		—		70,745
Preferred Stock	52,309		—		—		52,309
Common Stock (2)	97,890		57,852		—		40,038
Warrants	32,693		—		13,411		19,282
	$	3,565,862	$	57,852	$	13,411	$	3,494,599
Investment Funds & Vehicles measured at Net Asset Value (3)	5,779
Total Investments, at fair value	$	3,571,641
Derivative Instruments (4)	(537)
Total Investments, at fair value including derivative instruments	$	3,571,104


(in thousands)	Balance as of December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description
Cash and cash equivalents
Money Market Fund (1)	$	56,000	$	56,000	$	—	$	—

Other assets
Escrow and Other Investment Receivables	$	10,888	$	—	$	—	$	10,888

Investments
Senior Secured Debt	$	2,987,577	$	—	$	—	$	2,987,577
Unsecured Debt	69,722		—		—		69,722
Preferred Stock	53,038		—		—		53,038
Common Stock (2)	99,132		57,342		—		41,790
Warrants	33,969		—		11,881		22,088
	$	3,243,438	$	57,342	$	11,881	$	3,174,215
Investment Funds & Vehicles measured at Net Asset Value(3)	4,608
Total Investments, at fair value	$	3,248,046
Derivative Instruments (4)	(766)
Total Investments including cash and cash equivalents and derivative instruments	$	3,303,280

(1)This investment is included in Cash and cash equivalents in the accompanying Consolidated Statements of Assets and Liabilities.

(2)Common Stock includes non-voting security in the form of a promissory note with a lien on shares of issuer's Common Stock.

(3)In accordance with U.S. GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are not categorized within the fair value hierarchy as per ASC 820. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying Consolidated Statements of Assets and Liabilities.

(4)Derivative Instruments are carried at fair value and a level 2 security within the Company's fair value hierarchy.

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The table below presents a reconciliation of changes for all financial assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3) for the three months ended March 31, 2024 and 2023.


(in thousands)	Balance as of January 1, 2024		Net Realized Gains (Losses) (1)		Net Change in Unrealized Appreciation (Depreciation) (2)		Purchases (4)		Sales		Repayments(5)		Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance as of March 31, 2024

Investments
Senior Secured Debt	$	2,987,577	$	—	$	(104)	$	498,787	$	—	$	(174,035)	$	—	$	—	$	3,312,225
Unsecured Debt	69,722		—		481		542		—		—		—		—		70,745
Preferred Stock	53,038		—		(2,326)		1,597		—		—		—		—		52,309
Common Stock	41,790		—		(1,752)		—		—		—		—		—		40,038
Warrants	22,088		904		(2,113)		1,232		(2,829)		—		—		—		19,282
Other Assets
Escrow and Other Investment Receivables	10,888		13		7,353		—		(13,234)		—		—		—		5,020
Total	$	3,185,103	$	917	$	1,539	$	502,158	$	(16,063)	$	(174,035)	$	—	$	—	$	3,499,619


(in thousands)	Balance as of January 1, 2023		Net Realized Gains (Losses) (1)		Net Change in Unrealized Appreciation (Depreciation) (2)		Purchases (4)		Sales		Repayments(5)		Gross Transfers into Level 3 (3)		Gross Transfers out of Level 3 (3)		Balance as of March 31, 2023
Investments
Senior Secured Debt	$	2,741,388	$	—	$	16,023	$	362,781	$	—	$	(209,666)	$	—	$	—	$	2,910,526
Unsecured Debt	54,056		—		3,746		323		—		—		—		—		58,125
Preferred Stock	41,488		—		(1,143)		—		—		—		—		—		40,345
Common Stock	25,059		—		5,632		—		(207)		—		—		—		30,484
Warrants	19,419		(858)		1,508		948		(7)		—		—		—		21,010
Other Assets
Escrow Receivable	875		26		—		—		(98)		—		—		—		803
Total	$	2,882,285	$	(832)	$	25,766	$	364,052	$	(312)	$	(209,666)	$	—	$	—	$	3,061,293

(1)Included in net realized gains (losses) in the accompanying Consolidated Statements of Operations.

(2)Included in net change in unrealized appreciation (depreciation) in the accompanying Consolidated Statements of Operations.

(3)There were no transfers into or out of Level 3 during the three months ended March 31, 2024 and 2023.

(4)Amounts listed above are inclusive of loan origination fees received at the inception of the loan which are deferred and amortized into fee income as well as the accretion of existing loan discounts and fees during the period. Escrow receivable purchases may include additions due to proceeds held in escrow from the liquidation of level 3 investments. Amounts are net of purchases assigned to the Adviser Funds.

(5)Amounts listed above include the acceleration and payment of loan discounts and loan fees due to early payoffs or restructures along with regularly scheduled amortization.

The following table presents the net unrealized appreciation (depreciation) recorded for debt, preferred stock, common stock, and warrant Level 3 investments relating to assets still held at the reporting date.


(in millions)	Three Months Ended March 31,
	2024		2023
Debt Investments	$	0.4	$	(22.6)
Preferred Stock	(2.3)		(1.1)
Common Stock	(1.8)		5.6
Warrant Investments	0.7		(0.6)

The following tables provide quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2024 and December 31, 2023. In addition to the techniques and inputs noted in the tables below, according to the Company’s valuation policy, the Company may also use other valuation techniques and methodologies when determining the Company’s fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements. See the accompanying Consolidated Schedule of Investments for the fair value of the Company’s investments. The methodology

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for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Summary of Significant Accounting Policies”. The significant unobservable input used in the fair value measurement of the Company’s escrow receivables is the amount recoverable at the contractual maturity date of the escrow receivable.


Investment Type - Level 3 Debt Investments	Fair Value as of March 31, 2024 (in thousands)		Valuation Techniques/ Methodologies	Unobservable Input(1)	Range	Weighted Average(2)
Pharmaceuticals	$	973,558	Market Comparable Companies	Hypothetical Market Yield	10.69% - 21.21%	13.34%
				Premium/(Discount)	(2.00)% - 4.00%	0.03%
	5,215		Liquidation (3)	Probability weighting of alternative outcomes	20.00% - 60.00%	51.20%

Technology	1,078,024		Market Comparable Companies	Hypothetical Market Yield	10.26% - 19.04%	13.96%
				Premium/(Discount)	(1.50)% - 3.50%	0.19%
	24,227		Convertible Note Analysis	Probability weighting of alternative outcomes	1.00% - 60.00%	39.55%
	54,837		Liquidation (3)	Probability weighting of alternative outcomes	30.00% - 100.00%	52.01%

Sustainable and Renewable Technology	1,566		Market Comparable Companies	Hypothetical Market Yield	11.27% - 11.27%	11.27%
				Premium/(Discount)	1.50% - 1.50%	1.50%

Medical Devices	30,480		Market Comparable Companies	Hypothetical Market Yield	12.79% - 12.79%	12.79%
				Premium/(Discount)	0.50% - 0.50%	0.50%

Lower Middle Market	399,205		Market Comparable Companies	Hypothetical Market Yield	10.92% - 18.83%	13.85%
				Premium/(Discount)	0.00% - 3.00%	0.92%

Debt Investments for which Cost Approximates Fair Value
	615,126		Debt Investments originated within 6 months
	64,479		Imminent Payoffs(4)
	136,253		Debt Investments Maturing in Less than One Year
	$	3,382,970	Total Level 3 Debt Investments
Other Investment Receivables	2,856		Liquidation(3)	Probability weighting of alternative outcomes	10.00% - 50.00%	39.97%
	$	3,385,826	Total Level Three Debt Investments and Other Investment Receivables

(1)The significant unobservable inputs used in the fair value measurement of the Company’s debt securities are hypothetical market yields and premiums/(discounts). The hypothetical market yield is defined as the exit price of an investment in a hypothetical market to hypothetical market participants where buyers and sellers are willing participants. The premiums/(discounts) relate to company specific characteristics such as underlying investment performance, security liens, and other characteristics of the investment. Significant increases (decreases) in the inputs in isolation may result in a significantly lower (higher) fair value measurement, depending on the materiality of the investment.

Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:

•Pharmaceuticals, above, is comprised of debt investments in the “Drug Discovery & Development” and “Healthcare Services, Other” industries.

•Technology, above, is comprised of debt investments in the “Communications & Networking”, “Information Services”, “Consumer & Business Services”, “Media/Content/Info” and “Software” industries.

•Sustainable and Renewable Technology, above, is comprised of debt investments in the “Sustainable and Renewable Technology” industry.

•Lower Middle Market, above, is comprised of debt investments in the “Healthcare Services – Other”, “Consumer & Business Services”, “Diversified Financial Services”, “Sustainable and Renewable Technology”, and “Software” industries.

(2)The weighted averages are calculated based on the fair market value of each investment.

(3)The significant unobservable input used in the fair value measurement of impaired debt securities and other investment receivables is the probability weighting of alternative outcomes.

(4)Imminent Payoffs represent debt investments that the Company expects to be fully repaid within the next three months, prior to their scheduled maturity date.

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Investment Type - Level 3 Debt Investments	Fair Value as of December 31, 2023 (in thousands)		Valuation Techniques/ Methodologies	Unobservable Input(1)	Range	Weighted Average(2)
Pharmaceuticals	$	971,775	Market Comparable Companies	Hypothetical Market Yield	10.91% - 21.43%	13.46%
				Premium/(Discount)	(1.00)% - 3.50%	0.04%
	8,455		Liquidation(3)	Probability weighting of alternative outcomes	10.00% - 50.00%	41.83%

Technology	1,181,823		Market Comparable Companies	Hypothetical Market Yield	11.30% - 20.74%	15.03%
				Premium/(Discount)	(1.00)% - 5.00%	0.47%
	23,244		Convertible Note Analysis	Probability weighting of alternative outcomes	1.00% - 50.00%	39.32%
	—		Liquidation(3)	Probability weighting of alternative outcomes	100.00% - 100.00%	100.00%

Sustainable and Renewable Technology	1,678		Market Comparable Companies	Hypothetical Market Yield	10.75% - 10.75%	10.75%
				Premium/(Discount)	0.75% - 0.75%	0.75%

Lower Middle Market	322,162		Market Comparable Companies	Hypothetical Market Yield	12.54% - 20.15%	14.13%
				Premium/(Discount)	(0.75)% - 2.25%	0.56%

Debt Investments for which Cost Approximates Fair Value
	431,512		Debt Investments originated within 6 months
	54,430		Imminent Payoffs(4)
	62,220		Debt Investments Maturing in Less than One Year
	$	3,057,299	Total Level 3 Debt Investments
Other Investment Receivables	9,648		Liquidation(3)	Probability weighting of alternative outcomes	10.00% - 50.00%	41.83%
	$	3,066,947	Total Level Three Debt Investments and Other Investment Receivables

Debt investments in the industries noted in the Company’s Consolidated Schedule of Investments are included in the industries noted above as follows:

•Pharmaceuticals, above, is comprised of debt investments in the “Drug Discovery & Development” and “Healthcare Services, Other” industries.

•Sustainable and Renewable Technology, above, is comprised of debt investments in the “Sustainable and Renewable Technology” industry.

(2)The weighted averages are calculated based on the fair market value of each investment.

(3)The significant unobservable input used in the fair value measurement of impaired debt securities and other investment receivables is the probability weighting of alternative outcomes.

(4)Imminent payoffs represent debt investments that the Company expects to be fully repaid within the next three months, prior to their scheduled maturity date.

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Investment Type - Level 3 Equity and Warrant Investments	Fair Value as of March 31, 2024 (in thousands)		Valuation Techniques/ Methodologies	Unobservable Input(1)	Range	Weighted Average(5)
Equity Investments	$	46,154	Market Comparable Companies	Revenue Multiple(2)	0.3x - 19.2x	6.8x

				Tangible Book Value Multiple(2)	1.7x - 1.7x	1.7x
				Discount for Lack of Marketability(3)	9.22% - 92.88%	36.10%
	13,271		Market Adjusted OPM Backsolve	Market Equity Adjustment(4)	(85.55)% - 58.41%	27.06%
	29,884		Discounted Cash Flow	Discount Rate(7)	20.68% - 33.53%	31.62%


	3,038		Other(6)
Warrant Investments	16,912		Market Comparable Companies	Revenue Multiple(2)	1.0x - 12.5x	4.3x

				Discount for Lack of Marketability(3)	7.65% - 34.83%	23.42%
	2,370		Market Adjusted OPM Backsolve	Market Equity Adjustment(4)	(33.06)% - 67.82%	16.48%
	—		Other(6)
Total Level 3 Equity and Warrant Investments	$	111,629

(1)The significant unobservable inputs used in the fair value measurement of the Company’s warrant and equity securities are revenue and/or earnings multiples (e.g. EBITDA, EBT, ARR), market equity adjustment factors, and discounts for lack of marketability. Significant increases/(decreases) in the inputs in isolation would result in a significantly higher/(lower) fair value measurement, depending on the materiality of the investment. For some investments, additional consideration may be given to data from the last round of financing or merger/acquisition events near the measurement date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.

(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.

(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.

(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.

(5)Weighted averages are calculated based on the fair market value of each investment.

(6)The fair market value of these investments is derived based on recent private market and merger and acquisition transaction prices.

(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.

Investment Type - Level 3 Equity and Warrant Investments

Fair Value as of
December 31, 2023
(in thousands)

Valuation Techniques/
Methodologies

Unobservable Input (1)

Range

Weighted Average (5)

Equity Investments

52,094

Market Comparable Companies

EBITDA Multiple (2)

12.3x - 12.3x

12.3x

Revenue Multiple (2)

0.3x - 20.1x

7.2x

Tangible Book Value Multiple (2)

1.8x - 1.8x

1.8x

Discount for Lack of Marketability (3)

7.11% - 92.72%

31.57%

11,096

Market Adjusted OPM Backsolve

Market Equity Adjustment (4)

(86.14)% - 32.69%

7.47%

28,713

Discounted Cash Flow

Discount Rate (7)

19.88% - 31.97%

30.51%

2,925

Other (6)

Warrant Investments

19,014

Market Comparable Companies

EBITDA Multiple (2)

12.3x -12.3x

12.3x

Revenue Multiple (2)

0.9x - 10.2x

4.2x

Discount for Lack of Marketability (3)

6.21% - 33.12%

21.70%

3,074

Market Adjusted OPM Backsolve

Market Equity Adjustment (4)

(70.67)% - 34.86%

13.17%

—

Other (6)

Total Level 3 Equity and Warrant Investments

116,916

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date. The significant unobservable input used in the fair value measurement of impaired equity securities is the probability weighting of alternative outcomes.

(2)Represents amounts used when the Company has determined that market participants would use such multiples when pricing the investments.

(3)Represents amounts used when the Company has determined market participants would take into account these discounts when pricing the investments.

(4)Represents the range of changes in industry valuations since the portfolio company's last external valuation event.

(5)Weighted averages are calculated based on the fair market value of each investment.

(6)The fair market value of these investments is derived based on recent market transactions.

(7)The discount rate used is based on current portfolio yield adjusted for uncertainty of actual performance and timing in capital deployments.

The Company believes that the carrying amounts of its financial instruments, other than investments and debt, which consist of cash and cash equivalents, receivables including escrow receivables, accounts payable and accrued liabilities, approximate the fair values of such items due to the short maturity of such instruments. The debt obligations of the Company are recorded at amortized cost and not at fair value on the Consolidated Statements of Assets and Liabilities. The fair value of the Company’s outstanding debt obligations are based on observable market trading prices or quotations and unobservable market rates as applicable for each instrument.

As of March 31, 2024 and December 31, 2023, the 2033 Notes were trading on the New York Stock Exchange (“NYSE”) at $25.00 and $25.25 per unit at par value. The par value at underwriting for the 2033 Notes was $25.00 per unit. Based on market quotations on or around March 31, 2024 and December 31, 2023, the 2031 Asset-Backed Notes were quoted for 0.958 and 0.950. The fair values of the SBA debentures, July 2024 Notes, February 2025 Notes, June 2025 Notes, June 2025 3-Year Notes, March 2026 A Notes, March 2026 B Notes, September 2026, and January 2027 Notes are calculated based on the net present value of payments over the term of the notes using estimated market rates for similar notes and remaining terms. The fair values of the outstanding debt under the MUFG Bank Facility and the SMBC Facility are equal to their outstanding principal balances as of March 31, 2024 and December 31, 2023.

The following tables provide additional information about the approximate fair value and level in the fair value hierarchy of the Company’s outstanding borrowings as of March 31, 2024 and December 31, 2023:


(in thousands)	March 31, 2024
Description	Carrying Value		Approximate Fair Value		Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
SBA Debentures	$	170,469	$	147,970	$	—	$	—	$	147,970
July 2024 Notes	104,902		105,145		—		—		105,145
February 2025 Notes	49,895		48,922		—		—		48,922
June 2025 Notes	69,798		68,342		—		—		68,342
June 2025 3-Year Notes	49,810		49,813		—		—		49,813
March 2026 A Notes	49,818		47,335		—		—		47,335
March 2026 B Notes	49,802		47,381		—		—		47,381
September 2026 Notes	322,585		288,832		—		—		288,832
January 2027 Notes	346,266		314,530		—		—		314,530
2031 Asset-Backed Notes	148,691		143,700		—		143,700		—
2033 Notes	38,962		40,000		—		40,000		—
MUFG Bank Facility	136,000		136,000		—		—		136,000
SMBC Facility	215,000		215,000		—		—		215,000
Total	$	1,751,998	$	1,652,970	$	—	$	183,700	$	1,469,270

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(in thousands)	December 31, 2023
Description	Carrying Value		Approximate Fair Value		Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
SBA Debentures	$	170,323	$	142,011	$	—	$	—	$	142,011
July 2024 Notes	104,828		105,755		—		—		105,755
February 2025 Notes	49,866		49,144		—		—		49,144
June 2025 Notes	69,757		67,198		—		—		67,198
June 2025 3-Year Notes	49,771		48,983		—		—		48,983
March 2026 A Notes	49,795		47,702		—		—		47,702
March 2026 B Notes	49,776		47,759		—		—		47,759
September 2026 Notes	322,339		288,711		—		—		288,711
January 2027 Notes	345,935		315,832		—		—		315,832
2031 Asset-Backed Notes	148,544		142,500		—		142,500		—
2033 Notes	38,935		40,400		—		40,400		—
MUFG Bank Facility	61,000		61,000		—		—		61,000
SMBC Facility	94,000		94,000		—		—		94,000
Total	$	1,554,869	$	1,450,995	$	—	$	182,900	$	1,268,095

4. Investments

Control and Affiliate Investments

As required by the 1940 Act, the Company classifies its investments by level of control. “Control investments” are defined in the 1940 Act as investments in those companies that the Company is deemed to “control”. Under the 1940 Act, the Company is generally deemed to “control” a company in which it has invested if it owns 25% or more of the voting securities of such company or has greater than 50% representation on its board. “Affiliate investments” are investments in those companies that are “affiliated companies” of the Company, as defined in the 1940 Act, which are not control investments. The Company is deemed to be an “affiliate” of a company in which it has invested if it owns 5% or more, but generally less than 25%, of the voting securities of such company. “Non-control/non-affiliate investments” are investments that are neither control investments nor affiliate investments. For purposes of determining the classification of its investments, the Company has included consideration of any voting securities or board appointment rights held by the Adviser Funds.

The following table summarizes the Company’s realized gains and losses and changes in unrealized appreciation and depreciation on control and affiliate investments for the three months ended March 31, 2024 and 2023.

(in thousands)

Three Months Ended March 31, 2024

Portfolio Company(1)

Type

Fair Value as of March 31, 2024

Interest & Dividend Income

Fee Income

Net Change in Unrealized Appreciation (Depreciation)

Realized Gain (Loss)

Control Investments