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, 2016

OR

¨

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

Commission File Number: 814-00702

 

HERCULES CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland

 

743113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

Identification No.)

 

400 Hamilton Ave., Suite 310

Palo Alto, California

(Address of Principal Executive Offices)

 

94301

(Zip Code)

 

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

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  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  ¨    No  ¨

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

 

Large accelerated filer

 

x

  

Accelerated filer

 

¨

 

 

 

 

Non-accelerated filer

 

¨

  

Smaller reporting company

 

¨

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

On May 2, 2016, there were 73,664,846 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 Statement of Assets and Liabilities as of March 31, 2016 and December 31, 2015 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three months ended March 31, 2016 and 2015 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the three months ended March 31, 2016 and 2015 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the three months ended March 31, 2016 and 2015 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of March 31, 2016 (unaudited)

  

8

 

 

 

Consolidated Schedule of Investments as of December 31, 2015 (unaudited)

  

21

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

36

Item 2.

 

 

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

  

69

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

97

Item 4.

 

 

Controls and Procedures

  

98

 

PART II. OTHER INFORMATION

  

99

 

Item 1.

 

Legal Proceedings

  

99

 

 

 

Item 1A. Risk Factors

  

99

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

100

Item 3.

 

 

Defaults Upon Senior Securities

  

100

Item 4.

 

 

Mine Safety Disclosures

  

100

Item 5.

 

 

Other Information

  

100

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

101

 

SIGNATURES

  

103

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts on or after February 25, 2016 and “Hercules Technology Growth Capital, Inc.” and its wholly owned subsidiaries and its affiliated securitization trusts prior to February 25, 2016 unless the context otherwise requires.

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

 

 

March 31, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments:

 

 

 

 

 

 

 

 

Debt investments (cost of $1,239,601 and  $1,150,103, respectively)

 

$

1,204,136

 

 

$

1,109,196

 

Equity investments (cost of $51,208 and $50,305, respectively)

 

 

55,837

 

 

 

60,781

 

Warrant investments (cost of $39,789 and $38,131, respectively)

 

 

23,240

 

 

 

22,675

 

Total Non-control/Non-affiliate investments (cost of $1,330,598 and $1,238,539, respectively)

 

 

1,283,213

 

 

 

1,192,652

 

Affiliate investments:

 

 

 

 

 

 

 

 

Debt investments (cost of $2,185 and $2,200, respectively)

 

 

1,537

 

 

 

1,013

 

Equity investments (cost of $8,912 and $8,912, respectively)

 

 

6,304

 

 

 

6,661

 

Warrant investments (cost of $2,630 and $2,630, respectively)

 

 

256

 

 

 

312

 

Total Affiliate investments (cost of $13,727 and $13,742, respectively)

 

 

8,097

 

 

 

7,986

 

Total investments, at value (cost of $1,344,325 and $1,252,281, respectively)

 

 

1,291,310

 

 

 

1,200,638

 

Cash and cash equivalents

 

 

13,478

 

 

 

95,196

 

Restricted cash

 

 

3,646

 

 

 

9,191

 

Interest receivable

 

 

10,993

 

 

 

9,239

 

Other assets

 

 

12,388

 

 

 

9,720

 

Total assets

 

$

1,331,815

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

12,086

 

 

$

17,241

 

Long-Term Liabilities (Convertible Senior Notes), net (principal of $17,604 and $17,604, respectively) (1)

 

 

17,572

 

 

 

17,478

 

Wells Facility

 

 

61,003

 

 

 

50,000

 

2021 Asset-Backed Notes, net (principal of $129,300 and $129,300, respectively) (1)

 

 

127,227

 

 

 

126,995

 

2019 Notes, net (principal of $110,364 and $110,364, respectively) (1)

 

 

108,339

 

 

 

108,179

 

2024 Notes, net (principal of $103,000 and $103,000, respectively) (1)

 

 

100,211

 

 

 

100,128

 

Long-Term SBA Debentures, net (principal of $190,200 and $190,200, respectively) (1)

 

 

186,997

 

 

 

186,829

 

Total liabilities

 

$

613,435

 

 

$

606,850

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

74

 

 

 

73

 

Capital in excess of par value

 

 

761,565

 

 

 

752,244

 

Unrealized depreciation on investments (2)

 

 

(54,142

)

 

 

(52,808

)

Accumulated realized gains on investments

 

 

23,525

 

 

 

27,993

 

Undistributed net investment income (Distributions in excess of net investment income)

 

 

(12,642

)

 

 

(10,368

)

Total net assets

 

$

718,380

 

 

$

717,134

 

Total liabilities and net assets

 

$

1,331,815

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding ($0.001 par value, 200,000,000 and 100,000,000 authorized, respectively)

 

 

73,230

 

 

 

72,118

 

Net asset value per share

 

$

9.81

 

 

$

9.94

 

 

(1)

The Company’s SBA Debentures, 2019 Notes, 2024 Notes, 2021 Asset-Backed Notes, and Convertible Senior Notes, as each term is defined herein, are presented net of the associated debt issuance costs for each instrument. See “Note 2 – Summary of Significant Accounting Policies” and “Note 4 – Borrowings”.

(2)

Amounts include $1.1 million and $1.2 million, respectively, in net unrealized depreciation on other assets and accrued liabilities, including escrow receivables, estimated taxes payable and Citigroup warrant participation agreement liabilities.

 

See notes to consolidated financial statements.

3


 

The following table presents the assets and liabilities of our consolidated securitization trust for the 2021 Asset-Backed Notes (see Note 4), which is a variable interest entity (“VIE”). The assets of our securitization VIE can only be used to settle obligations of our consolidated securitization VIE, these liabilities are only the obligations of our consolidated securitization VIE, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statement of Assets and Liabilities above.

 

(Dollars in thousands)

 

March 31, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

3,646

 

 

$

9,191

 

Total investments, at value (cost of $265,038 and $258,748, respectively)

 

 

264,469

 

 

 

257,657

 

Total assets

 

$

268,115

 

 

$

266,848

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2021 Asset-Backed Notes, net (principal of $129,300 and $129,300, respectively) (1)

 

$

127,227

 

 

$

126,995

 

Total liabilities

 

$

127,227

 

 

$

126,995

 

 

(1)

The Company’s SBA Debentures, 2019 Notes, 2024 Notes, 2021 Asset-Backed Notes, and Convertible Senior Notes, as each term is defined herein, are presented net of the associated debt issuance costs for each instrument. See “Note 2 – Summary of Significant Accounting Policies” and “Note 4 – Borrowings”.

See notes to consolidated financial statements.

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

 

Three Months Ended March 31,

 

 

2016

 

 

2015

 

Investment income:

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

36,409

 

 

$

30,459

 

Affiliate investments

 

65

 

 

 

100

 

Total interest income

 

36,474

 

 

 

30,559

 

Fees

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

2,465

 

 

 

1,934

 

Affiliate investments

 

 

 

 

1

 

Total fees

 

2,465

 

 

 

1,935

 

Total investment income

 

38,939

 

 

 

32,494

 

Operating expenses:

 

 

 

 

 

 

 

Interest

 

7,018

 

 

 

7,854

 

Loan fees

 

988

 

 

 

1,513

 

General and administrative

 

3,580

 

 

 

3,618

 

Employee compensation:

 

 

 

 

 

 

 

Compensation and benefits

 

4,685

 

 

 

3,796

 

Stock-based compensation

 

2,571

 

 

 

2,719

 

Total employee compensation

 

7,256

 

 

 

6,515

 

Total operating expenses

 

18,842

 

 

 

19,500

 

Loss on debt extinguishment (Long-Term Liabilities - Convertible Senior Notes)

 

 

 

 

(1

)

Net investment income

 

20,097

 

 

 

12,993

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(4,468

)

 

 

3,312

 

Total net realized gain (loss) on investments

 

(4,468

)

 

 

3,312

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(1,460

)

 

 

3,301

 

Affiliate investments

 

126

 

 

 

2,313

 

Total net unrealized appreciation (depreciation) on investments

 

(1,334

)

 

 

5,614

 

Total net realized and unrealized gain (loss)

 

(5,802

)

 

 

8,926

 

Net increase in net assets resulting from operations

$

14,295

 

 

$

21,919

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

$

0.28

 

 

$

0.20

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

Basic

$

0.20

 

 

$

0.33

 

Diluted

$

0.20

 

 

$

0.33

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

71,172

 

 

 

63,783

 

Diluted

 

71,199

 

 

 

64,163

 

Dividends declared per common share:

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

See notes to consolidated financial statements.

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/

 

 

Provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Accumulated

 

 

(Distributions

 

 

for Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Appreciation

 

 

Realized

 

 

in Excess of

 

 

Taxes on

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

(Depreciation)

 

 

Gains (Losses)

 

 

Investment

 

 

Investment

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

on Investments

 

 

on Investments

 

 

Income)

 

 

Gains

 

 

Assets

 

Balance at December 31, 2014

 

64,715

 

 

$

65

 

 

$

657,233

 

 

$

(17,076

)

 

$

14,079

 

 

$

4,905

 

 

$

(342

)

 

$

658,864

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

5,614

 

 

 

3,312

 

 

 

12,993

 

 

 

 

 

 

21,919

 

Public offering, net of offering expenses

 

7,591

 

 

 

8

 

 

 

100,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,092

 

Issuance of common stock due to stock option exercises

 

34

 

 

 

 

 

 

406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

406

 

Retired shares from net issuance

 

(27

)

 

 

 

 

 

(401

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(401

)

Issuance of common stock under restricted stock plan

 

580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(42

)

 

 

 

 

 

(591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(591

)

Issuance of common stock as stock dividend

 

40

 

 

 

 

 

 

562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

562

 

Dividends distributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,266

)

 

 

 

 

 

(20,266

)

Stock-based compensation

 

 

 

 

 

 

 

2,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,741

 

Balance at March 31, 2015

 

72,891

 

 

$

73

 

 

$

760,034

 

 

$

(11,462

)

 

$

17,391

 

 

$

(2,368

)

 

$

(342

)

 

$

763,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2015

 

72,118

 

 

$

73

 

 

$

752,244

 

 

$

(52,808

)

 

$

27,993

 

 

$

(10,026

)

 

$

(342

)

 

$

717,134

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(1,334

)

 

 

(4,468

)

 

 

20,097

 

 

 

 

 

 

14,295

 

Public offering, net of offering expenses

 

1,109

 

 

 

1

 

 

 

12,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,404

 

Acquisition of common stock under repurchase plan

 

(449

)

 

 

 

 

 

(4,789

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,789

)

Issuance of common stock under restricted stock plan

 

538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(129

)

 

 

 

 

 

(1,385

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,385

)

Issuance of common stock as stock dividend

 

43

 

 

 

 

 

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

496

 

Dividends distributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,371

)

 

 

 

 

 

(22,371

)

Stock-based compensation

 

 

 

 

 

 

 

2,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,596

 

Balance at March 31, 2016

 

73,230

 

 

$

74

 

 

$

761,565

 

 

$

(54,142

)

 

$

23,525

 

 

$

(12,300

)

 

$

(342

)

 

$

718,380

 

 

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Three Months Ended March 31,

 

 

2016

 

 

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

$

14,295

 

 

$

21,919

 

Adjustments to reconcile net increase in net assets resulting from

operations to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Purchase of investments

 

(170,921

)

 

 

(209,387

)

Principal and fee payments received on investments

 

77,808

 

 

 

75,368

 

Proceeds from the sale of investments

 

4,636

 

 

 

7,001

 

Net unrealized depreciation (appreciation) on investments

 

1,334

 

 

 

(5,614

)

Net realized loss (gain) on investments

 

4,468

 

 

 

(3,312

)

Accretion of paid-in-kind principal

 

(1,535

)

 

 

(665

)

Accretion of loan discounts

 

(1,863

)

 

 

(1,356

)

Accretion of loan discount on Convertible Senior Notes

 

61

 

 

 

62

 

Loss on debt extinguishment (Long-Term Liabilities - Convertible Senior Notes)

 

 

 

 

1

 

Payment of loan discount on Convertible Senior Notes

 

 

 

 

(2

)

Accretion of loan exit fees

 

(5,231

)

 

 

(2,767

)

Change in deferred loan origination revenue

 

655

 

 

 

1,540

 

Unearned fees related to unfunded commitments

 

(87

)

 

 

527

 

Amortization of debt fees and issuance costs

 

785

 

 

 

1,288

 

Depreciation

 

56

 

 

 

58

 

Stock-based compensation and amortization of restricted stock grants

 

2,596

 

 

 

2,741

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(1,753

)

 

 

351

 

Prepaid expenses and other assets

 

(2,540

)

 

 

2,674

 

Accounts payable

 

(88

)

 

 

(504

)

Accrued liabilities

 

(5,029

)

 

 

(3,978

)

Net cash used in operating activities

 

(82,353

)

 

 

(114,055

)

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(127

)

 

 

(42

)

Reduction of (investments in) restricted cash

 

5,545

 

 

 

(9,289

)

Net cash provided by (used in) investing activities

 

5,418

 

 

 

(9,331

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

12,404

 

 

 

100,092

 

Repurchase of common stock, net

 

(4,789

)

 

 

 

Retirement of employee shares

 

(1,385

)

 

 

(586

)

Dividends paid

 

(21,875

)

 

 

(19,704

)

Repayments of 2017 Asset-Backed Notes

 

 

 

 

(11,846

)

Borrowings of credit facilities

 

106,666

 

 

 

 

Repayments of credit facilities

 

(95,663

)

 

 

 

Cash paid for redemption of Convertible Senior Notes

 

 

 

 

(30

)

Fees paid for credit facilities and debentures

 

(141

)

 

 

100

 

Net cash provided by (used in) financing activities

 

(4,783

)

 

 

68,026

 

Net decrease in cash and cash equivalents

 

(81,718

)

 

 

(55,360

)

Cash and cash equivalents at beginning of period

 

95,196

 

 

 

227,116

 

Cash and cash equivalents at end of period

$

13,478

 

 

$

171,756

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Dividends Reinvested

$

496

 

 

$

562

 

 

See notes to consolidated financial statements.

7


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exicure, Inc.(11)(13)

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

6,000

 

 

$

5,862

 

 

$

5,862

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,862

 

 

 

5,862

 

Subtotal: Biotechnology Tools (0.82%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,862

 

 

 

5,862

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group(4)(9)

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

7,500

 

 

 

6,693

 

 

 

5,475

 

OpenPeak, Inc.(7)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,370

 

 

 

9,134

 

 

 

4,379

 

SkyCross, Inc.(7)(12)(13)(14)

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%,

PIK Interest 5.00%

 

$

19,674

 

 

 

20,529

 

 

 

7,050

 

Spring Mobile Solutions, Inc.(13)

 

Communications & Networking

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.70%

or Floor rate of 9.95%

 

$

3,000

 

 

 

2,959

 

 

 

2,959

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

39,315

 

 

 

19,863

 

Subtotal: Communications & Networking (2.76%)*

 

 

 

 

 

 

 

 

 

 

 

 

39,315

 

 

 

19,863

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation)(14)

 

Consumer & Business Products

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

158

 

 

 

158

 

 

 

158

 

Miles, Inc. (p.k.a. Fluc, Inc.)(8)

 

Consumer & Business Products

 

Convertible Debt

 

March 2017

 

Interest rate FIXED 4.00%

 

$

100

 

 

 

100

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

258

 

 

 

158

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation)(12)(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

December 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%,

PIK Interest 2.50%

 

$

4,433

 

 

 

4,359

 

 

 

4,359

 

Nasty Gal(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

15,000

 

 

 

14,996

 

 

 

14,723

 

Second Time Around (Simplify Holdings, LLC)(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%

 

$

2,500

 

 

 

2,477

 

 

 

2,477

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

21,832

 

 

 

21,559

 

Subtotal: Consumer & Business Products (3.02%)*

 

 

 

 

 

 

 

 

 

 

 

 

22,090

 

 

 

21,717

 

 

 

 

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(9)(10)(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.85%

or Floor rate of 9.10%

 

$

20,466

 

 

$

20,914

 

 

$

20,892

 

Agile Therapeutics, Inc.(10)(13)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

16,500

 

 

 

16,347

 

 

 

16,304

 

BIND Therapeutics, Inc.(13)(14)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 5.10%

or Floor rate of 8.35%

 

$

13,691

 

 

 

13,919

 

 

 

13,754

 

BioQ Pharma Incorporated(10)(13)

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

10,000

 

 

 

10,237

 

 

 

10,174

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.50%

 

$

3,000

 

 

 

2,983

 

 

 

2,983

 

Total BioQ Pharma Incorporated

$

13,000

 

 

 

13,220

 

 

 

13,157

 

Celator Pharmaceuticals, Inc.(10)(13)

 

Drug Delivery

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

13,276

 

 

 

13,349

 

 

 

13,510

 

Celsion Corporation(10)(13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

5,364

 

 

 

5,575

 

 

 

5,603

 

Dance Biopharm, Inc.(13)(14)

 

Drug Delivery

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.40%

or Floor rate of 10.65%

 

$

2,384

 

 

 

2,475

 

 

 

1,380

 

Edge Therapeutics, Inc.(10)(13)

 

Drug Delivery

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 5.45%

or Floor rate of 9.95%

 

$

4,919

 

 

 

4,915

 

 

 

4,942

 

Egalet Corporation(11)(13)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.15%

or Floor rate of 9.40%

 

$

15,000

 

 

 

15,059

 

 

 

15,170

 

Neos Therapeutics, Inc.(10)(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate FIXED 9.00%

 

$

10,000

 

 

 

10,000

 

 

 

10,063

 

 

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate FIXED 10.50%

 

$

10,000

 

 

 

10,109

 

 

 

10,123

 

 

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate FIXED 9.00%

 

$

5,000

 

 

 

5,017

 

 

 

5,027

 

Total Neos Therapeutics, Inc.

 

$

25,000

 

 

 

25,126

 

 

 

25,213

 

Pulmatrix Inc.(8)(10)(13)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

7,000

 

 

 

6,924

 

 

 

6,935

 

ZP Opco, Inc (p.k.a. Zosano Pharma)(10)(13)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 2.70%

or Floor rate of 7.95%

 

$

15,000

 

 

 

14,996

 

 

 

14,936

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

152,819

 

 

 

151,796

 

Subtotal: Drug Delivery (21.13%)*

 

 

 

 

 

 

 

 

 

 

 

 

152,819

 

 

 

151,796

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands) 

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc.(9)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 6.65%

or Floor rate of 11.90%

 

$

10,000

 

 

$

10,149

 

 

$

10,067

 

Bellicum Pharmaceuticals, Inc.(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

15,000

 

 

 

14,893

 

 

 

14,893

 

Brickell Biotech, Inc.(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 9.20%

 

$

7,500

 

 

 

7,321

 

 

 

7,321

 

Cerecor, Inc.(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

4,884

 

 

 

4,928

 

 

 

4,980

 

Cerulean Pharma, Inc.(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 1.55%

or Floor rate of 7.30%

 

$

19,072

 

 

 

19,432

 

 

 

19,454

 

CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.)(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%

 

$

25,000

 

 

 

25,607

 

 

 

25,778

 

CytRx Corporation(10)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

25,000

 

 

 

24,436

 

 

 

24,436

 

Epirus Biopharmaceuticals, Inc.(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

15,000

 

 

 

14,944

 

 

 

15,061

 

Genocea Biosciences, Inc.(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 2.25%

or Floor rate of 7.25%

 

$

17,000

 

 

 

17,081

 

 

 

17,147

 

Immune Pharmaceuticals(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

4,500

 

 

 

4,429

 

 

 

4,388

 

Insmed, Incorporated(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.25%

 

$

25,000

 

 

 

24,776

 

 

 

24,764

 

Mast Therapeutics, Inc.(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 8.95%

 

$

15,000

 

 

 

14,890

 

 

 

14,920

 

Melinta Therapeutics(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 3.75%

or Floor rate of 8.25%

 

$

30,000

 

 

 

30,010

 

 

 

30,013

 

Merrimack Pharmaceuticals, Inc.(9)

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate FIXED 11.50%

 

$

25,000

 

 

 

25,000

 

 

 

25,000

 

Neothetics, Inc. (p.k.a. Lithera, Inc)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 5.75%

or Floor rate of 9.00%

 

$

4,000

 

 

 

4,132

 

 

 

4,137

 

Neuralstem, Inc.(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

7,235

 

 

 

7,364

 

 

 

7,341

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%

 

$

20,000

 

 

 

19,893

 

 

 

19,890

 

uniQure B.V.(4)(9)(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 5.00%

or Floor rate of 10.25%

 

$

20,000

 

 

 

20,002

 

 

 

20,053

 

XOMA Corporation(9)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 2.15%

or Floor rate of 9.40%

 

$

20,000

 

 

 

20,129

 

 

 

20,067

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

309,416

 

 

 

309,710

 

Subtotal: Drug Discovery & Development (43.11%)*

 

 

 

 

 

 

 

 

 

 

 

 

309,416

 

 

 

309,710

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Persimmon Technologies(11)(13)

 

Electronics & Computer Hardware

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 7.50%

or Floor rate of 11.00%

 

$

7,000

 

 

 

6,928

 

 

 

6,855

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,928

 

 

 

6,855

 

Subtotal: Electronics & Computer Hardware (0.95%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,928

 

 

 

6,855

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation(13)(14)

 

Healthcare Services, Other

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 6.10%

or Floor rate of 9.35%

 

$

5,000

 

 

 

4,952

 

 

 

4,977

 

InstaMed Communications, LLC(13)(14)

 

Healthcare Services, Other

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

10,000

 

 

 

10,127

 

 

 

10,111

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

15,079

 

 

 

15,088

 

Subtotal: Healthcare Services, Other (2.10%)*

 

 

 

 

 

 

 

 

 

 

 

 

15,079

 

 

 

15,088

 

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InXpo, Inc.(13)(14)

 

Information Services

 

Senior Secured

 

October 2016

 

Interest rate PRIME + 7.50%

or Floor rate of 10.75%

 

$

1,247

 

 

$

1,304

 

 

$

1,304

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,304

 

 

 

1,304

 

Subtotal: Information Services (0.18%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,304

 

 

 

1,304

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NetPlenish(7)(8)(14)

 

Internet Consumer & Business Services

 

Convertible Debt

 

September 2016

 

Interest rate FIXED 10.00%

 

$

381

 

 

 

373

 

 

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2016

 

Interest rate FIXED 10.00%

 

$

44

 

 

 

44

 

 

 

 

Total NetPlenish

 

 

 

 

 

 

 

 

 

$

425

 

 

 

417

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

417

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.(10)(12)

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 3.20%

or Floor rate of 6.95%,

PIK Interest 1.95%

 

$

2,031

 

 

 

2,008

 

 

 

1,983

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 5.20%

or Floor rate of 8.95%,

PIK Interest 1.95%

 

$

18,191

 

 

 

17,962

 

 

 

17,767

 

Total Aria Systems, Inc.

 

 

 

 

 

 

 

 

 

$

20,222

 

 

 

19,970

 

 

 

19,750

 

CloudOne, Inc. (13)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 6.35%

or Floor rate of 9.85%

 

$

5,000

 

 

 

4,927

 

 

 

4,927

 

LogicSource(13)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%

 

$

8,500

 

 

 

8,371

 

 

 

8,371

 

One Planet Ops Inc. (p.k.a. Reply! Inc.)

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 4.25%

or Floor rate of 7.50%

 

$

6,168

 

 

 

5,725

 

 

 

5,262

 

ReachLocal(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 8.50%

or Floor rate of 11.75%

 

$

25,000

 

 

 

25,147

 

 

 

25,007

 

Tapjoy, Inc.(11)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

20,000

 

 

 

19,653

 

 

 

19,555

 

Tectura Corporation(7)(12)(15)

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00%

or Floor rate of 13.00%

 

$

6,468

 

 

 

6,468

 

 

 

5,175

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 8.00%

or Floor rate of 11.00%,

PIK Interest 1.00%

 

$

7,670

 

 

 

7,670

 

 

 

6,136

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00%

or Floor rate of 13.00%

 

$

563

 

 

 

563

 

 

 

450

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00%

or Floor rate of 13.00%

 

$

5,000

 

 

 

5,000

 

 

 

4,000

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

$

19,701

 

 

 

19,701

 

 

 

15,761

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

103,494

 

 

 

98,633

 

Subtotal: Internet Consumer & Business Services (13.73%)*

 

 

 

 

 

 

 

 

 

 

 

 

103,911

 

 

 

98,633

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.(12)

 

Media/Content/Info

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 2.50%

or Floor rate of 6.75%,

PIK Interest 3.00%

 

$

101,437

 

 

 

99,395

 

 

 

98,647

 

WP Technology, Inc. (Wattpad, Inc.)(4)(9)(13)

 

Media/Content/Info

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%

 

$

5,000

 

 

 

4,943

 

 

 

4,943

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

104,338

 

 

 

103,590

 

Subtotal: Media/Content/Info (14.42%)*

 

 

 

 

 

 

 

 

 

 

 

 

104,338

 

 

 

103,590

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InspireMD, Inc.(4)(9)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 5.00%

or Floor rate of 10.50%

 

$

3,992

 

 

$

4,412

 

 

$

3,730

 

Optiscan Biomedical, Corp.(5)(8)(14)

 

Medical Devices & Equipment

 

Convertible Debt

 

December 2016

 

Interest Rate FIXED 8.00%

 

$

431

 

 

 

431

 

 

 

431

 

SonaCare Medical, LLC (p.k.a. US HIFU, LLC)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2016

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

73

 

 

 

481

 

 

 

481

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,324

 

 

 

4,642

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(8)(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 9.20%

or Floor rate of 12.45%

 

$

15,218

 

 

 

16,015

 

 

 

15,753

 

Aspire Bariatrics, Inc.(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%

 

$

7,000

 

 

 

6,860

 

 

 

6,827

 

Avedro, Inc.(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

11,761

 

 

 

11,688

 

 

 

11,675

 

Flowonix Medical Incorporated(11)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

15,000

 

 

 

15,179

 

 

 

15,092

 

Gamma Medica, Inc.(10)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

2,500

 

 

 

2,567

 

 

 

2,549

 

Micell Technologies, Inc.(11)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

8,500

 

 

 

8,253

 

 

 

8,253

 

Quanta Fluid Solutions(4)(9)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 8.05%

or Floor rate of 11.55%

 

$

12,500

 

 

 

12,351

 

 

 

12,351

 

Quanterix Corporation(10)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%

 

$

12,661

 

 

 

12,757

 

 

 

12,707

 

SynergEyes, Inc.(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

3,804

 

 

 

4,104

 

 

 

4,036

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

89,774

 

 

 

89,243

 

Subtotal: Medical Devices & Equipment (13.07%)*

 

 

 

 

 

 

 

 

 

 

 

 

95,098

 

 

 

93,885

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(14)

 

Semiconductors

 

Senior Secured

 

July 2016

 

Interest rate PRIME + 4.75%

or Floor rate of 8.00%

 

$

4,260

 

 

 

4,260

 

 

 

4,260

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,260

 

 

 

4,260

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(13)(14)

 

Semiconductors

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 8.25%

or Floor rate of 11.50%

 

$

4,710

 

 

 

4,787

 

 

 

4,728

 

Avnera Corporation(10)(13)

 

Semiconductors

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 5.25%

or Floor rate of 8.50%

 

$

7,500

 

 

 

7,527

 

 

 

7,596

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

12,314

 

 

 

12,324

 

Subtotal: Semiconductors (2.31%)*

 

 

 

 

 

 

 

 

 

 

 

 

16,574

 

 

 

16,584

 

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clickfox, Inc.(14)(16)

 

Software

 

Senior Secured

 

March 2016

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

2,600

 

 

$

2,600

 

 

$

2,600

 

JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.) (12)(13)(14)

 

Software

 

Senior Secured

 

October 2016

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

1,483

 

 

 

1,444

 

 

 

815

 

Message Systems, Inc.(14)

 

Software

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 2.75%

or Floor rate of 6.00%

 

$

318

 

 

 

318

 

 

 

318

 

Neos, Inc.(13)(14)

 

Software

 

Senior Secured

 

May 2016

 

Interest rate PRIME + 6.75%

or Floor rate of 10.50%

 

$

446

 

 

 

616

 

 

 

616

 

Touchcommerce, Inc.(14)

 

Software

 

Senior Secured

 

August 2016

 

Interest rate PRIME + 2.25%

or Floor rate of 6.50%

 

$

6,000

 

 

 

6,000

 

 

 

6,000

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,978

 

 

 

10,349

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.(12)(13)

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.25%

or Floor rate of 8.25%,

PIK Interest 2.25%

 

$

30,434

 

 

 

30,216

 

 

 

29,898

 

 

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.75%,

PIK Interest 2.50%

 

$

10,000

 

 

 

9,533

 

 

 

9,533

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

 

$

40,434

 

 

 

39,749

 

 

 

39,431

 

Clickfox, Inc. (13)(14)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 8.25%

or Floor rate of 11.50%

 

$

4,935

 

 

 

4,988

 

 

 

4,979

 

Druva, Inc.(10)(13)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

12,000

 

 

 

12,173

 

 

 

12,113

 

JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.) (12)(13)(14)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

12,308

 

 

 

11,640

 

 

 

6,568

 

Message Systems, Inc.(14)

 

Software

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

17,500

 

 

 

17,141

 

 

 

16,960

 

OneLogin, Inc.(12)(14)

 

Software

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%,

PIK Interest 3.25%

 

$

13,033

 

 

 

12,880

 

 

 

12,880

 

RedSeal Inc.(13)(14)

 

Software

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

5,000

 

 

 

5,038

 

 

 

4,992

 

Signpost, Inc.(12)(13)(14)

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.15%

or Floor rate of 8.15%,

PIK Interest 1.75%

 

$

15,035

 

 

 

14,609

 

 

 

14,609

 

Touchcommerce, Inc.(13)(14)

 

Software

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 10.25%

 

$

12,000

 

 

 

11,957

 

 

 

11,872

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

130,175

 

 

 

124,404

 

Subtotal: Software (18.76%)*

 

 

 

 

 

 

 

 

 

 

 

 

141,153

 

 

 

134,753

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cranford Pharmaceuticals, LLC(14)

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2016

 

Interest rate LIBOR + 8.25%

or Floor rate of 9.50%

 

$

1,100

 

 

 

1,100

 

 

 

1,100

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,100

 

 

 

1,100

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(10)(13)

 

Specialty Pharmaceuticals

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.65%

or Floor rate of 10.90%

 

$

35,000

 

 

 

34,137

 

 

 

34,090

 

Cranford Pharmaceuticals, LLC(10)(12)(13)(14)

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2017

 

Interest rate LIBOR + 9.55%

or Floor rate of 10.80%,

PIK Interest 1.35%

 

$

8,874

 

 

 

9,071

 

 

 

9,071

 

Jaguar Animal Health, Inc.(10)(13)

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2018

 

Interest rate PRIME + 5.65%

or Floor rate of 9.90%

 

$

5,821

 

 

 

5,897

 

 

 

5,842

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

49,105

 

 

 

49,003

 

Subtotal: Specialty Pharmaceuticals (6.97%)*

 

 

 

 

 

 

 

 

 

 

 

 

50,205

 

 

 

50,103

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmedics, Inc.(13)

 

Surgical Devices

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 5.30%

or Floor rate of 9.55%

 

$

8,500

 

 

 

8,491

 

 

 

8,428

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,491

 

 

 

8,428

 

Subtotal: Surgical Devices (1.17%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,491

 

 

 

8,428

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.(13)(14)

 

Sustainable and Renewable Technology

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

3,786

 

 

$

4,034

 

 

$

4,034

 

American Superconductor Corporation(10)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

2,667

 

 

 

3,135

 

 

 

3,135

 

Amyris, Inc.(9)(11)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

17,543

 

 

 

17,543

 

 

 

17,543

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 5.25%

or Floor rate of 8.50%

 

$

3,497

 

 

 

3,497

 

 

 

3,497

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

10,960

 

 

 

11,224

 

 

 

11,224

 

Total Amyris, Inc.

 

 

 

 

 

 

 

 

 

$

32,000

 

 

 

32,264

 

 

 

32,264

 

Modumetal, Inc.(11)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 8.70%

or Floor rate of 11.95%

 

$

1,429

 

 

 

1,805

 

 

 

1,805

 

Stion Corporation (5)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

1,754

 

 

 

1,754

 

 

 

1,106

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

42,992

 

 

 

42,344

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Superconductor Corporation(10)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

1,500

 

 

 

1,509

 

 

 

1,500

 

Modumetal, Inc.(11)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

6,170

 

 

 

6,415

 

 

 

6,362

 

Proterra, Inc.(10)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.95%

or Floor rate of 10.20%

 

$

25,000

 

 

 

25,140

 

 

 

24,592

 

Rive Technology, Inc.(13)(14)

 

Sustainable and Renewable Technology

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.20%

or Floor rate of 9.45%

 

$

7,500

 

 

 

7,450

 

 

 

7,450

 

Sungevity, Inc.(11)(13)(14)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

35,000

 

 

 

35,969

 

 

 

35,879

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

20,000

 

 

 

20,000

 

 

 

19,975

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

 

$

55,000

 

 

 

55,969

 

 

 

55,854

 

Tendril Networks(11)(13)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate FIXED 7.25%

 

$

15,000

 

 

 

14,908

 

 

 

14,580

 

Verdezyne, Inc.(13)(14)

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 8.25%

or Floor rate of 11.75%

 

$

15,000

 

 

 

14,820

 

 

 

14,820

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

126,211

 

 

 

125,158

 

Subtotal: Sustainable and Renewable Technology (23.32%)*

 

 

 

 

 

 

 

 

 

 

 

 

169,203

 

 

 

167,502

 

Total Debt Investments (167.83%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,241,786

 

 

 

1,205,673

 

 

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuGEN Technologies, Inc.(14)

 

Biotechnology Tools

 

Equity

 

Preferred Series C

 

 

189,394

 

 

$

500

 

 

$

538

 

Subtotal: Biotechnology Tools (0.07%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

538

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc.(3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

102

 

 

 

45

 

Peerless Network, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

4,304

 

Ping Identity Corporation

 

Communications & Networking

 

Equity

 

Preferred Series B

 

 

684,004

 

 

 

52

 

 

 

391

 

Subtotal: Communications & Networking (0.66%)*

 

 

 

 

 

 

 

 

 

 

1,154

 

 

 

4,740

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

480,261

 

 

 

 

 

 

192

 

 

 

Consumer & Business Products

 

Equity

 

Preferred Series B-1

 

 

187,970

 

 

 

500

 

 

 

3

 

Total Market Force Information, Inc.

 

 

 

 

 

 

 

 

668,231

 

 

 

500

 

 

 

195

 

Subtotal: Consumer & Business Products (0.03%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

195

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

60

 

Subtotal: Diagnostic (0.01%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

60

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

168

 

BioQ Pharma Incorporated(14)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

650

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

157,190

 

 

 

1,000

 

 

 

1,438

 

Merrion Pharmaceuticals, Plc(3)(4)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

20,000

 

 

 

9

 

 

 

 

Neos Therapeutics, Inc. (3)(14)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

1,349

 

Revance Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

22,765

 

 

 

557

 

 

 

397

 

Subtotal: Drug Delivery (0.56%)*

 

 

 

 

 

 

 

 

 

 

3,674

 

 

 

4,002

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc.(3)(9)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

167,864

 

 

 

842

 

 

 

153

 

Cerecor, Inc. (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

444

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

135,501

 

 

 

1,000

 

 

 

367

 

Dicerna Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

766

 

Dynavax Technologies(3)(9)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

385

 

Epirus Biopharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

200,000

 

 

 

1,000

 

 

 

538

 

Genocea Biosciences, Inc. (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

1,730

 

Inotek Pharmaceuticals Corporation(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

3,778

 

 

 

1,500

 

 

 

28

 

Insmed, Incorporated(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

897

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Equity

 

Preferred Series 4

 

 

1,914,448

 

 

 

2,000

 

 

 

2,040

 

Paratek Pharmaceutcals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.)(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

1,158

 

Subtotal: Drug Discovery & Development (1.18%)*

 

 

 

 

 

 

 

 

 

 

14,636

 

 

 

8,506

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc.(3)

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

14

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

14

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(14)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

223

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

230,030

 

 

 

250

 

 

 

254

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

241

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

495

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

374

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

245

 

Total Oportun (p.k.a. Progress Financial)

 

 

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

619

 

Philotic, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

9,023

 

 

 

93

 

 

 

 

RazorGator Interactive Group, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series AA

 

 

34,783

 

 

 

15

 

 

 

28

 

Subtotal: Internet Consumer & Business Services (0.19%)*

 

 

 

 

 

 

 

 

 

 

1,283

 

 

 

1,365

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtriCure, Inc.(3)(14)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

7,536

 

 

$

266

 

 

$

116

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

221,893

 

 

 

1,500

 

 

 

1,913

 

Gelesis, Inc.(14)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

815

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

859

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

823

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,497

 

Medrobotics Corporation(14)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

207

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

192

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

504

 

Total Medrobotics Corporation

 

 

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

903

 

Novasys Medical, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D-1

 

 

4,118,444

 

 

 

1,000

 

 

 

 

Optiscan Biomedical, Corp.(5)(14)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

520

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

156

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

5,628

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

 

 

63,216,799

 

 

 

8,912

 

 

 

6,304

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series 1

 

 

1,086,969

 

 

 

500

 

 

 

267

 

Outset Medical, Inc. (p.k.a. Home Dialysis Plus, Inc.)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

503

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

272,479

 

 

 

1,000

 

 

 

1,216

 

Subtotal: Medical Devices & Equipment (1.91%)*

 

 

 

 

 

 

 

 

 

 

15,535

 

 

 

13,719

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Box, Inc.(3)(14)

 

Software

 

Equity

 

Common Stock

 

 

1,287,347

 

 

 

5,654

 

 

 

15,532

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

50

 

 

 

82

 

Druva, Inc.

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,056

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

1,363

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

80,587

 

 

 

131

 

 

 

348

 

Total ForeScout Technologies, Inc.

 

 

 

 

 

 

 

 

399,686

 

 

 

529

 

 

 

1,711

 

HighRoads, Inc.

 

Software

 

Equity

 

Preferred Series B

 

 

190,170

 

 

 

307

 

 

 

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

699

 

WildTangent, Inc.(14)

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

171

 

Subtotal: Software (2.68%)*

 

 

 

 

 

 

 

 

 

 

8,905

 

 

 

19,251

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series E

 

 

241,829

 

 

 

750

 

 

 

 

 

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series E-1

 

 

26,955

 

 

 

 

 

 

 

 

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series G

 

 

4,667,636

 

 

 

 

 

 

 

Total QuatRx Pharmaceuticals Company

 

 

 

 

 

 

 

 

4,936,420

 

 

 

750

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.00%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(14)

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

26

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

36

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

602

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,785,402

 

 

 

429

 

 

 

390

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

5,652,395

 

 

 

1,673

 

 

 

1,054

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

105

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

59

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

427

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

470

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

1,061

 

Subtotal: Surgical Devices (0.29%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

2,115

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glori Energy, Inc.(3)

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

18,208

 

 

 

165

 

 

 

4

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series C

 

 

3,107,520

 

 

 

500

 

 

 

483

 

SCIEnergy, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

19,250

 

 

 

761

 

 

 

 

Sungevity, Inc.(14)

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series D

 

 

68,807,339

 

 

 

6,750

 

 

 

7,149

 

Subtotal: Sustainable and Renewable Technology (1.06%)*

 

 

 

 

 

 

 

 

 

 

8,176

 

 

 

7,636

 

Total: Equity Investments (8.65%)*

 

 

 

 

 

 

 

 

 

 

60,120

 

 

 

62,141

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exicure, Inc.

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

104,348

 

 

$

107

 

 

$

109

 

Labcyte, Inc.(14)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

 

323

 

 

 

181

 

Subtotal: Biotechnology Tools (0.04%)*

 

 

 

 

 

 

 

 

 

 

430

 

 

 

290

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelepeer, Inc.(14)

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

117,958

 

 

 

102

 

 

 

 

OpenPeak, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

108,982

 

 

 

149

 

 

 

 

PeerApp, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series B

 

 

298,779

 

 

 

61

 

 

 

37

 

Peerless Network, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

360

 

SkyCross, Inc.(14)

 

Communications & Networking

 

Warrant

 

Preferred Series F

 

 

9,762,777

 

 

 

394

 

 

 

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

2,834,375

 

 

 

418

 

 

 

55

 

Subtotal: Communications & Networking (0.06%)*

 

 

 

 

 

 

 

 

 

 

1,219

 

 

 

452

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation)(14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

1,662,441

 

 

 

228

 

 

 

 

Intelligent Beauty, Inc.(14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

281

 

IronPlanet, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series D

 

 

1,155,821

 

 

 

1,076

 

 

 

805

 

Nasty Gal(14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

845,194

 

 

 

23

 

 

 

18

 

The Neat Company(14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

 

Subtotal: Consumer & Business Products (0.15%)*

 

 

 

 

 

 

 

 

 

 

1,922

 

 

 

1,104

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Navidea Biopharmaceuticals, Inc. (p.k.a. Neoprobe)(3)(14)

 

Diagnostic

 

Warrant

 

Common Stock

 

 

333,333

 

 

 

244

 

 

 

4

 

Subtotal: Diagnostic (0.00%)*

 

 

 

 

 

 

 

 

 

 

244

 

 

 

4

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(9)(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

785

 

 

 

154

 

Agile Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

204

 

BIND Therapeutics, Inc.(3)(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

152,586

 

 

 

488

 

 

 

5

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

354

 

Celsion Corporation(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

10

 

Dance Biopharm, Inc.(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

43,813

 

 

 

74

 

 

 

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

78,595

 

 

 

390

 

 

 

228

 

Kaleo, Inc. (p.k.a. Intelliject, Inc.)

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

877

 

Neos Therapeutics, Inc.(3)(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

122

 

Pulmatrix Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

25,150

 

 

 

116

 

 

 

2

 

ZP Opco, Inc (p.k.a. Zosano Pharma)(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

72,379

 

 

 

266

 

 

 

2

 

Subtotal: Drug Delivery (0.27%)*

 

 

 

 

 

 

 

 

 

 

4,157

 

 

 

1,958

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMA Biologics, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

123

 

Anthera Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

Aveo Pharmaceuticals, Inc.(3)(9)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

608,696

 

 

 

194

 

 

 

117

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

125

 

Cerecor, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

11

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,901

 

 

 

369

 

 

 

9

 

Chroma Therapeutics, Ltd.(4)(9)

 

Drug Discovery & Development

 

Warrant

 

Preferred Series D

 

 

325,261

 

 

 

490

 

 

 

 

Cleveland BioLabs, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,813

 

 

 

105

 

 

 

2

 

Concert Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

70,796

 

 

 

367

 

 

 

158

 

CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.)(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

292,398

 

 

 

165

 

 

 

20

 

CytRx Corporation (3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

634,146

 

 

 

416

 

 

 

773

 

Dicerna Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

200

 

 

 

28

 

 

 

 

Epirus Biopharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

64,194

 

 

 

276

 

 

 

42

 

Fortress Biotech, Inc. (p.k.a. Coronado Biosciences, Inc.)(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

15

 

Genocea Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,725

 

 

 

266

 

 

 

219

 

Immune Pharmaceuticals(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

214,853

 

 

 

164

 

 

 

13

 

Mast Therapeutics, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

2,272,724

 

 

 

203

 

 

 

185

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Warrant

 

Preferred Series 3

 

 

1,382,323

 

 

 

626

 

 

 

100

 

Nanotherapeutics, Inc.(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

1,035

 

Neothetics, Inc. (p.k.a. Lithera, Inc)(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

46,838

 

 

 

266

 

 

 

8

 

Neuralstem, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

75,187

 

 

 

77

 

 

 

10

 

Paratek Pharmaceutcals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.)(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

21,467

 

 

 

129

 

 

 

20

 

uniQure B.V.(3)(4)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

105

 

XOMA Corporation(3)(9)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

181,268

 

 

 

279

 

 

 

53

 

Subtotal: Drug Discovery & Development (0.44%)*

 

 

 

 

 

 

 

 

 

 

7,086

 

 

 

3,143

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clustrix, Inc.

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

50,000

 

 

$

12

 

 

$

 

Persimmon Technologies

 

Electronics & Computer Hardware

 

Warrant

 

Preferred Series C

 

 

43,076

 

 

 

40

 

 

 

67

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

52

 

 

 

67

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation(3)(9)(14)

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

419,020

 

 

 

157

 

 

 

201

 

Subtotal: Healthcare Services, Other (0.03%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

201

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cha Cha Search, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series G

 

 

48,232

 

 

 

58

 

 

 

 

INMOBI Inc.(4)(9)

 

Information Services

 

Warrant

 

Common Stock

 

 

46,874

 

 

 

82

 

 

 

 

InXpo, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series C

 

 

648,400

 

 

 

98

 

 

 

2

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

1,165,183

 

 

 

74

 

 

 

2

 

Total InXpo, Inc.

 

 

 

 

 

 

 

 

1,813,583

 

 

 

172

 

 

 

4

 

RichRelevance, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.00%)*

 

 

 

 

 

 

 

 

 

 

410

 

 

 

4

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

239,692

 

 

 

73

 

 

 

74

 

Blurb, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

130

 

CashStar, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

37

 

CloudOne, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

19

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

1,417

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

67

 

LogicSource(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

55

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

134

 

Prism Education Group, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

200,000

 

 

 

43

 

 

 

 

ReachLocal(3)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

300,000

 

 

 

155

 

 

 

315

 

ShareThis, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

127

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

198

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B-1

 

 

253,378

 

 

 

51

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.36%)*

 

 

 

 

 

 

 

 

 

 

3,200

 

 

 

2,573

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

155,271

 

 

 

1,959

 

 

 

2,822

 

Rhapsody International, Inc.(14)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

384

 

 

 

221

 

WP Technology, Inc. (Wattpad, Inc.) (4)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

127,909

 

 

 

1

 

 

 

1

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

18

 

Subtotal: Media/Content/Info (0.43%)*

 

 

 

 

 

 

 

 

 

 

2,692

 

 

 

3,062

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(3)(14)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

103,225

 

 

 

459

 

 

 

65

 

Aspire Bariatrics, Inc.(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

395,000

 

 

 

455

 

 

 

220

 

Avedro, Inc.(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

300,000

 

 

 

401

 

 

 

128

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

110,947

 

 

 

203

 

 

 

450

 

Gamma Medica, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

357,500

 

 

 

170

 

 

 

183

 

Gelesis, Inc. (14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

336

 

InspireMD, Inc.(3)(4)(9)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

16,835

 

 

 

242

 

 

 

 

Medrobotics Corporation(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

232

 

Micell Technologies, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

280

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

2,568

 

 

 

408

 

 

 

17

 

NinePoint Medical, Inc.(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

67

 

Novasys Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

109,449

 

 

 

2

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

526,840

 

 

 

125

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-1

 

 

53,607

 

 

 

6

 

 

 

 

Total Novasys Medical, Inc.

 

 

 

 

 

 

 

 

689,896

 

 

 

133

 

 

 

 

Optiscan Biomedical, Corp.(5)(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

10,535,275

 

 

 

1,252

 

 

 

256

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

954

 

 

 

66

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series 1

 

 

1,632,084

 

 

 

676

 

 

 

57

 

Total Oraya Therapeutics, Inc.

 

 

 

 

 

 

 

 

1,633,038

 

 

 

742

 

 

 

313

 

Outset Medical, Inc. (p.k.a. Home Dialysis Plus, Inc.)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

243

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

173,428

 

 

 

180

 

 

 

144

 

SonaCare Medical, LLC (p.k.a. US HIFU, LLC)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Strata Skin Sciences, Inc. (p.k.a. MELA Sciences, Inc.)(3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

69,320

 

 

 

402

 

 

 

 

ViewRay, Inc.(3)(14)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

30

 

Subtotal: Medical Devices & Equipment (0.38%)*

 

 

 

 

 

 

 

 

 

 

6,850

 

 

 

2,708

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(14)

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

$

160

 

 

$

18

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-1

 

 

500,000

 

 

 

6

 

 

 

4

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

 

 

860,000

 

 

 

166

 

 

 

22

 

Aquantia Corp.

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

196,831

 

 

 

4

 

 

 

38

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

141,567

 

 

 

47

 

 

 

67

 

Subtotal: Semiconductors (0.02%)*

 

 

 

 

 

 

 

 

 

 

217

 

 

 

127

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

73,584

 

 

 

249

 

 

 

190

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

343

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

533

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation(14)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

609

 

Clickfox, Inc.(14)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

193

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

161

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

46,109

 

 

 

13

 

 

 

9

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

1,676,691

 

 

 

1,073

 

 

 

363

 

Hillcrest Laboratories, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

1,865,650

 

 

 

55

 

 

 

183

 

JumpStart Games, Inc. (p.k.a Knowledge Holdings, Inc.)(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

614,333

 

 

 

16

 

 

 

 

Message Systems, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

434

 

Mobile Posse, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

80

 

Neos, Inc.(14)

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

110

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

28

 

OneLogin, Inc.(14)

 

Software

 

Warrant

 

Common Stock

 

 

228,972

 

 

 

150

 

 

 

148

 

Poplicus, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

2,595,230

 

 

 

 

 

 

98

 

Signpost, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

305

 

Soasta, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

410,800

 

 

 

691

 

 

 

273

 

Sonian, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

26

 

Touchcommerce, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

2,282,968

 

 

 

446

 

 

 

575

 

Subtotal: Software (0.52%)*

 

 

 

 

 

 

 

 

 

 

4,408

 

 

 

3,765

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

862,069

 

 

 

729

 

 

 

313

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Warrant

 

Preferred Series E

 

 

155,324

 

 

 

307

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.04%)*

 

 

 

 

 

 

 

 

 

 

1,036

 

 

 

313

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(14)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

75

 

 

 

8

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

200

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

1,756,445

 

 

 

395

 

 

 

208

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

224

 

 

 

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

121

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

16,476

 

 

 

3

 

 

 

2

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

231,912

 

 

 

327

 

 

 

123

 

Subtotal: Surgical Devices (0.05%)*

 

 

 

 

 

 

 

 

 

 

722

 

 

 

331

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

471,327

 

 

$

120

 

 

$

79

 

Alphabet Energy, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

86,329

 

 

 

82

 

 

 

149

 

American Superconductor Corporation(3)

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

58,823

 

 

 

39

 

 

 

103

 

Brightsource Energy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 1

 

 

116,667

 

 

 

104

 

 

 

7

 

Calera, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

EcoMotors, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

437,500

 

 

 

308

 

 

 

134

 

Fluidic, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

38

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

207

 

GreatPoint Energy, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D-1

 

 

393,212

 

 

 

548

 

 

 

 

Polyera Corporation(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

311,609

 

 

 

338

 

 

 

12

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 4

 

 

397,931

 

 

 

37

 

 

 

55

 

Rive Technology, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

12

 

 

 

24

 

SCIEnergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

530,811

 

 

 

181

 

 

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 2-A

 

 

6,229

 

 

 

50

 

 

 

 

Total SCIEnergy, Inc.

 

 

 

 

 

 

 

 

537,040

 

 

 

231

 

 

 

 

Solexel, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

649

 

Stion Corporation (5)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series Seed

 

 

2,154

 

 

 

1,378

 

 

 

 

Sungevity, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

20,000,000

 

 

 

543

 

 

 

763

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

32,472,222

 

 

 

902

 

 

 

807

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

52,472,222

 

 

 

1,445

 

 

 

1,570

 

TAS Energy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series AA

 

 

428,571

 

 

 

299

 

 

 

 

Tendril Networks

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 3-A

 

 

1,019,793

 

 

 

189

 

 

 

208

 

TPI Composites, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

160

 

 

 

273

 

 

 

108

 

Trilliant, Inc.(14)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

162

 

 

 

51

 

Subtotal: Sustainable and Renewable Technology (0.47%)*

 

 

 

 

 

 

 

 

 

 

7,617

 

 

 

3,394

 

Total: Warrant Investments (3.27%)*

 

 

 

 

 

 

 

 

 

 

42,419

 

 

 

23,496

 

Total Investments (179.75%)*

 

 

 

 

 

 

 

 

 

$

1,344,325

 

 

$

1,291,310

 

 

*

Value as a percent of net assets

(1)

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

(2)

Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $24.3 million, $77.2 million and $52.9 million respectively. The tax cost of investments is $1.3 billion.

(3)

Except for warrants in 37 publicly traded companies and common stock in 20 publicly traded companies, all investments are restricted at March 31, 2016 and were valued at fair value as determined in good faith by the Company’s board of directors (the “Board of Directors”). No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(4)

Non-U.S. company or the company’s principal place of business is outside the United States.

(5)

Affiliate investment as defined under the Investment Company Act of 1940, as amended, (the “1940 Act”) in which Hercules owns at least 5% but generally less than 25% of the company’s voting securities.

(6)

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. There were no control investments at March 31, 2016.

(7)

Debt is on non-accrual status at March 31, 2016, and is therefore considered non-income producing.

(8)

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

(9)

Indicates assets that the Company deems not “qualifying assets” under section 55(a) of the 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.

(10)

Denotes that all or a portion of the debt investment secures the notes offered in the Debt Securitization (as defined in Note 4).

(11)

Denotes that all or a portion of the debt investment is pledged as collateral under the Wells Facility (as defined in Note 4).

(12)

Denotes that all or a portion of the debt investment principal includes accumulated PIK, or payment-in-kind, interest and is net of repayments.

(13)

Denotes that all or a portion of the debt investment includes an exit fee receivable. This fee ranges from 1.0% to 19.4% of the total debt commitment based on the contractual terms of our loan servicing agreements.

(14)

Denotes that all or a portion of the investment in this portfolio company is held by Hercules Technology II, L.P., or HT II, or Hercules Technology III, L.P., or HT III, the Company’s wholly-owned SBIC subsidiaries.

(15)

The stated ‘maturity date’ for the Tectura assets reflects the last extension of the forbearance period on these loans. The borrower loans remain outstanding and management is continuing to work with the borrower to satisfy the obligations. The Company’s investment team and Investment Committee continue to closely monitor developments at the borrower company.

(16)

Repayment of debt investment is delinquent of the contractual maturity date.

 


See notes to consolidated financial statements.

20


 

 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2015

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment (1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost  (2)

 

 

Value (3)

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group (4)(9)

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

10,000

 

 

$

8,900

 

 

$

7,812

 

OpenPeak, Inc. (7)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,370

 

 

 

9,134

 

 

 

2,444

 

SkyCross, Inc. (7)(12)(13)(14)

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%,

PIK Interest 5.00%

 

$

19,649

 

 

 

20,080

 

 

 

14,859

 

Spring Mobile Solutions, Inc. (13)

 

Communications & Networking

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.70%

or Floor rate of 9.95%

 

$

3,000

 

 

 

2,935

 

 

 

2,935

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

41,049

 

 

 

28,050

 

Subtotal: Communications & Networking (3.91%)*

 

 

 

 

 

 

 

 

 

 

 

 

41,049

 

 

 

28,050

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation) (12)(14)

 

Consumer & Business Products

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

308

 

 

 

308

 

 

 

308

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

308

 

 

 

308

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation) (12)(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

December 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%,

PIK Interest 2.50%

 

$

4,955

 

 

 

4,785

 

 

 

4,783

 

Miles, Inc. (p.k.a. Fluc, Inc.) (8)

 

Consumer & Business Products

 

Convertible Debt

 

March 2017

 

Interest rate FIXED 4.00%

 

$

100

 

 

 

100

 

 

 

 

Nasty Gal (13)(14)

 

Consumer & Business Products

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

15,000

 

 

 

14,876

 

 

 

14,876

 

The Neat Company (7)(12)(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

September 2017

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%,

PIK Interest 1.00%

 

$

15,936

 

 

 

15,545

 

 

 

5,527

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

35,306

 

 

 

25,186

 

Subtotal: Consumer & Business Products (3.55%)*

 

 

 

 

 

 

 

 

 

 

 

 

35,614

 

 

 

25,494

 

 

See notes to consolidated financial statements.

21


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2015

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment (1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost (2)

 

 

Value (3)

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (9)(10)(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.85%

or Floor rate of 9.10%

 

$

20,466

 

 

$

20,772

 

 

$

20,678

 

Agile Therapeutics, Inc. (10)(13)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

16,500

 

 

 

16,231

 

 

 

16,107

 

BIND Therapeutics, Inc. (13)(14)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 5.10%

or Floor rate of 8.35%

 

$

15,000

 

 

 

15,119

 

 

 

15,044

 

BioQ Pharma Incorporated (10)(13)

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

10,000

 

 

 

10,180

 

 

 

10,066

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.50%

 

$

3,000

 

 

 

2,962

 

 

 

2,962

 

Total BioQ Pharma Incorporated

 

 

 

$

13,000

 

 

 

13,142

 

 

 

13,028

 

Celator Pharmaceuticals, Inc. (10)(13)

 

Drug Delivery

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

14,573

 

 

 

14,594

 

 

 

14,609

 

Celsion Corporation (10)(13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

6,346

 

 

 

6,501

 

 

 

6,544

 

Dance Biopharm, Inc. (13)(14)

 

Drug Delivery

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.40%

or Floor rate of 10.65%

 

$

2,705

 

 

 

2,776

 

 

 

2,757

 

Edge Therapeutics, Inc. (10)(13)

 

Drug Delivery

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

5,466

 

 

 

5,431

 

 

 

5,455

 

Egalet Corporation (11)(13)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.15%

or Floor rate of 9.40%

 

$

15,000

 

 

 

14,967

 

 

 

15,036

 

Neos Therapeutics, Inc. (10)(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 5.75%

or Floor rate of 9.00%

 

$

10,000

 

 

 

10,000

 

 

 

10,007

 

 

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

10,000

 

 

 

10,043

 

 

 

9,998

 

 

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 5.75%

or Floor rate of 9.00%

 

$

5,000

 

 

 

4,977

 

 

 

4,957

 

Total Neos Therapeutics, Inc.

 

 

 

 

 

 

 

$

25,000

 

 

 

25,020

 

 

 

24,962

 

Pulmatrix Inc. (8)(10)(13)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

7,000

 

 

 

6,877

 

 

 

6,856

 

ZP Opco, Inc (p.k.a. Zosano Pharma) (10)(13)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 2.70%

or Floor rate of 7.95%

 

$

15,000

 

 

 

14,925

 

 

 

14,781

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

156,355

 

 

 

155,857

 

Subtotal: Drug Delivery (21.73%)*

 

 

 

 

 

 

 

 

 

 

 

 

156,355

 

 

 

155,857

 

 

 

See notes to consolidated financial statements.

22


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2015

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment (1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost (2)

 

 

Value (3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc. (9)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 6.65%

or Floor rate of 11.90%

 

$

10,000

 

 

$

10,076

 

 

$

9,944

 

Cerecor, Inc. (13)

 

Drug Discovery & Development

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

5,688

 

 

 

5,705

 

 

 

5,740

 

Cerulean Pharma, Inc. (11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 1.55%

or Floor rate of 7.30%

 

$

21,000

 

 

 

21,132

 

 

 

21,109

 

CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.) (10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%

 

$

25,000

 

 

 

25,507

 

 

 

25,550

 

Epirus Biopharmaceuticals, Inc. (11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

15,000

 

 

 

14,852

 

 

 

14,924

 

Genocea Biosciences, Inc. (10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 3.75%

or Floor rate of 7.25%

 

$

17,000

 

 

 

17,008

 

 

 

16,948

 

Immune Pharmaceuticals (10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 10.00%

 

$