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 June 30, 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 August 1, 2016, there were 74,844,969 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 June 30, 2016 and December 31, 2015 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three and six months ended June 30, 2016 and 2015 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the six months ended June 30, 2016 and 2015 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the six months ended June 30, 2016 and 2015 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of June 30, 2016 (unaudited)

  

8

 

 

 

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

  

22

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

37

Item 2.

 

 

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

  

69

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

99

Item 4.

 

 

Controls and Procedures

  

100

 

PART II. OTHER INFORMATION

  

101

 

Item 1.

 

Legal Proceedings

  

101

Item 1A.

 

 

Risk Factors

 

101

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

102

Item 3.

 

 

Defaults Upon Senior Securities

  

102

Item 4.

 

 

Mine Safety Disclosures

  

102

Item 5.

 

 

Other Information

  

102

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

103

 

SIGNATURES

  

105

 

 

 

 

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)

 

 

 

June 30, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $1,334,302 and $1,238,539, respectively)

 

$

1,292,934

 

 

$

1,192,652

 

Control investments (cost of $21,294 and $0, respectively)

 

 

4,000

 

 

 

 

Affiliate investments (cost of $13,799 and $13,742, respectively)

 

 

5,844

 

 

 

7,986

 

Total investments, at value (cost of $1,369,395 and $1,252,281, respectively)

 

 

1,302,778

 

 

 

1,200,638

 

Cash and cash equivalents

 

 

59,715

 

 

 

95,196

 

Restricted cash

 

 

3,605

 

 

 

9,191

 

Interest receivable

 

 

9,453

 

 

 

9,239

 

Other assets

 

 

19,620

 

 

 

9,720

 

Total assets

 

$

1,395,171

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

16,681

 

 

$

17,241

 

Long-Term Liabilities (Convertible Senior Notes), net (principal of $0 and $17,604) (1)

 

 

 

 

 

17,478

 

Wells Facility

 

 

 

 

 

50,000

 

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

 

 

127,461

 

 

 

126,995

 

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

 

 

108,499

 

 

 

108,179

 

2024 Notes, net (principal of $244,945 and $103,000, respectively) (1)

 

 

237,570

 

 

 

100,128

 

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

 

 

187,165

 

 

 

186,829

 

Total liabilities

 

$

677,376

 

 

$

606,850

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

75

 

 

 

73

 

Capital in excess of par value

 

 

774,339

 

 

 

752,244

 

Unrealized depreciation on investments (2)

 

 

(68,046

)

 

 

(52,808

)

Accumulated realized gains on investments

 

 

23,550

 

 

 

27,993

 

Distributions in excess of net investment income

 

 

(12,123

)

 

 

(10,368

)

Total net assets

 

$

717,795

 

 

$

717,134

 

Total liabilities and net assets

 

$

1,395,171

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

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

 

 

74,320

 

 

 

72,118

 

Net asset value per share

 

$

9.66

 

 

$

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 $1.4 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)

 

June 30, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

3,605

 

 

$

9,191

 

Total investments, at value (cost of $271,886 and $258,748, respectively)

 

 

269,452

 

 

 

257,657

 

Total assets

 

$

273,057

 

 

$

266,848

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

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

 

$

127,461

 

 

$

126,995

 

Total liabilities

 

$

127,461

 

 

$

126,995

 

 

(1)

The Company’s 2021 Asset-Backed Notes 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 June 30,

 

 

Six Months Ended June 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

39,571

 

 

$

35,144

 

 

$

75,980

 

 

$

65,605

 

Affiliate investments

 

50

 

 

 

96

 

 

 

115

 

 

 

195

 

Total interest income

 

39,621

 

 

 

35,240

 

 

 

76,095

 

 

 

65,800

 

Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

3,917

 

 

 

2,886

 

 

 

6,382

 

 

 

4,819

 

Affiliate investments

 

 

 

 

 

 

 

 

 

 

1

 

Total fees

 

3,917

 

 

 

2,886

 

 

 

6,382

 

 

 

4,820

 

Total investment income

 

43,538

 

 

 

38,126

 

 

 

82,477

 

 

 

70,620

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

7,572

 

 

 

7,571

 

 

 

14,589

 

 

 

15,425

 

Loan fees

 

1,278

 

 

 

1,580

 

 

 

2,267

 

 

 

3,093

 

General and administrative

 

4,401

 

 

 

4,069

 

 

 

7,980

 

 

 

7,687

 

Employee compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

5,331

 

 

 

5,857

 

 

 

10,016

 

 

 

9,653

 

Stock-based compensation

 

1,602

 

 

 

2,267

 

 

 

4,174

 

 

 

4,987

 

Total employee compensation

 

6,933

 

 

 

8,124

 

 

 

14,190

 

 

 

14,640

 

Total operating expenses

 

20,184

 

 

 

21,344

 

 

 

39,026

 

 

 

40,845

 

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

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Net investment income

 

23,354

 

 

 

16,781

 

 

 

43,451

 

 

 

29,774

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

25

 

 

 

(1,254

)

 

 

(4,443

)

 

 

2,058

 

Total net realized gain (loss) on investments

 

25

 

 

 

(1,254

)

 

 

(4,443

)

 

 

2,058

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(8,159

)

 

 

(12,854

)

 

 

(9,618

)

 

 

(9,554

)

Control investments

 

(3,421

)

 

 

 

 

 

(3,421

)

 

 

 

Affiliate investments

 

(2,324

)

 

 

79

 

 

 

(2,199

)

 

 

2,392

 

Total net unrealized depreciation on investments

 

(13,904

)

 

 

(12,775

)

 

 

(15,238

)

 

 

(7,162

)

Total net realized and unrealized loss

 

(13,879

)

 

 

(14,029

)

 

 

(19,681

)

 

 

(5,104

)

Net increase in net assets resulting from operations

$

9,475

 

 

$

2,752

 

 

$

23,770

 

 

$

24,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.32

 

 

$

0.23

 

 

$

0.59

 

 

$

0.43

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.13

 

 

$

0.03

 

 

$

0.32

 

 

$

0.35

 

Diluted

$

0.13

 

 

$

0.03

 

 

$

0.32

 

 

$

0.35

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

72,746

 

 

 

71,368

 

 

 

71,959

 

 

 

67,596

 

Diluted

 

72,762

 

 

 

71,593

 

 

 

71,965

 

 

 

67,901

 

Dividend distributions declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

$

0.62

 

 

$

0.62

 

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

 

 

 

 

 

 

 

 

 

 

(7,162

)

 

 

2,058

 

 

 

29,774

 

 

 

 

 

 

24,670

 

Public offering, net of offering expenses

 

7,591

 

 

 

8

 

 

 

100,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,092

 

Issuance of common stock due to stock option exercises

 

36

 

 

 

 

 

 

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

428

 

Retired shares from net issuance

 

(28

)

 

 

 

 

 

(423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(423

)

Issuance of common stock under restricted stock plan

 

603

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(514

)

 

 

(1

)

 

 

(3,399

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,400

)

Issuance of common stock as stock dividend

 

90

 

 

 

 

 

 

1,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,199

 

Dividend distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42,766

)

 

 

 

 

 

(42,766

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,027

 

Balance at June 30, 2015

 

72,493

 

 

$

73

 

 

$

760,148

 

 

$

(24,238

)

 

$

16,137

 

 

$

(8,087

)

 

$

(342

)

 

$

743,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

(15,238

)

 

 

(4,443

)

 

 

43,451

 

 

 

 

 

 

23,770

 

Public offering, net of offering expenses

 

2,201

 

 

 

2

 

 

 

23,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,670

 

Acquisition of common stock under repurchase plan

 

(450

)

 

 

(1

)

 

 

(4,789

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,790

)

Issuance of common stock due to stock option exercises

 

11

 

 

 

 

 

 

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

118

 

Retired shares from net issuance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under restricted stock plan

 

547

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(192

)

 

 

 

 

 

(2,122

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,122

)

Issuance of common stock as stock dividend

 

85

 

 

 

 

 

 

997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

997

 

Dividend distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45,206

)

 

 

 

 

 

(45,206

)

Stock-based compensation (1)

 

 

 

 

 

 

 

4,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,224

 

Balance at June 30, 2016

 

74,320

 

 

$

75

 

 

$

774,339

 

 

$

(68,046

)

 

$

23,550

 

 

$

(11,781

)

 

$

(342

)

 

$

717,795

 

 

(1)

Stock-based compensation includes $50,000 of restricted stock and option expense related to director compensation.

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Six Months Ended June 30,

 

 

2016

 

 

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

$

23,770

 

 

$

24,670

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(330,750

)

 

 

(373,422

)

Principal and fee payments received on investments

 

221,331

 

 

 

154,208

 

Proceeds from the sale of investments

 

6,041

 

 

 

7,494

 

Net unrealized depreciation on investments

 

15,238

 

 

 

7,162

 

Net realized loss (gain) on investments

 

4,443

 

 

 

(2,058

)

Accretion of paid-in-kind principal

 

(3,243

)

 

 

(1,584

)

Accretion of loan discounts

 

(3,776

)

 

 

(3,412

)

Accretion of loan discount on Convertible Senior Notes

 

82

 

 

 

123

 

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

 

 

 

 

1

 

Payment of loan discount on Convertible Senior Notes

 

 

 

 

(5

)

Accretion of loan exit fees

 

(10,968

)

 

 

(6,624

)

Change in deferred loan origination revenue

 

(44

)

 

 

1,758

 

Unearned fees related to unfunded commitments

 

(113

)

 

 

1,074

 

Amortization of debt fees and issuance costs

 

1,839

 

 

 

2,669

 

Depreciation

 

104

 

 

 

111

 

Stock-based compensation and amortization of restricted stock grants

 

4,224

 

 

 

5,027

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(214

)

 

 

227

 

Prepaid expenses and other assets

 

(9,041

)

 

 

2,744

 

Accounts payable

 

56

 

 

 

(732

)

Accrued liabilities

 

(879

)

 

 

200

 

Net cash used in operating activities

 

(81,900

)

 

 

(180,369

)

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(146

)

 

 

(80

)

Reduction of restricted cash

 

5,586

 

 

 

850

 

Net cash provided by investing activities

 

5,440

 

 

 

770

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

23,670

 

 

 

100,092

 

Repurchase of common stock, net

 

(4,790

)

 

 

 

Retirement of employee shares

 

(2,004

)

 

 

(3,395

)

Dividend distributions paid

 

(44,209

)

 

 

(41,567

)

Issuance of 2024 Notes Payable

 

141,945

 

 

 

 

Repayments of 2019 Notes Payable

 

 

 

 

(20,000

)

Repayments of 2017 Asset-Backed Notes

 

 

 

 

(16,049

)

Borrowings of credit facilities

 

170,985

 

 

 

50,000

 

Repayments of credit facilities

 

(220,985

)

 

 

(378

)

Cash paid for debt issuance costs

 

(4,722

)

 

 

 

Cash paid for redemption of Convertible Senior Notes

 

(17,604

)

 

 

(65

)

Fees paid for credit facilities and debentures

 

(1,307

)

 

 

(168

)

Net cash provided by financing activities

 

40,979

 

 

 

68,470

 

Net decrease in cash and cash equivalents

 

(35,481

)

 

 

(111,129

)

Cash and cash equivalents at beginning of period

 

95,196

 

 

 

227,116

 

Cash and cash equivalents at end of period

$

59,715

 

 

$

115,987

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Dividend distributions reinvested

$

997

 

 

$

1,199

 

 

(1)

Stock-based compensation includes $50,000 of restricted stock and option expense related to director compensation.

 

See notes to consolidated financial statements.

7


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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)

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

6,000

 

 

$

5,898

 

 

$

5,898

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,898

 

 

 

5,898

 

Subtotal: Biotechnology Tools (0.82%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,898

 

 

 

5,898

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpenPeak, Inc.(7)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,370

 

 

 

9,134

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

9,134

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group(4)(9)

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

7,500

 

 

 

6,740

 

 

 

5,650

 

SkyCross, Inc. (6)(7)(13)(14B)(15)

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%,

PIK Interest 5.00%

 

$

16,758

 

 

 

16,900

 

 

 

 

Spring Mobile Solutions, Inc.(14B)

 

Communications & Networking

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.70%

or Floor rate of 9.95%

 

$

3,000

 

 

 

2,984

 

 

 

2,967

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

26,624

 

 

 

8,617

 

Subtotal: Communications & Networking (1.20%)*

 

 

 

 

 

 

 

 

 

 

 

 

35,758

 

 

 

8,617

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation)(13)(14B)(14D)(15)

 

Consumer & Business Products

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%,

PIK Interest 2.50%

 

$

4,274

 

 

 

4,373

 

 

 

3,687

 

 

 

Consumer & Business Products

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

156

 

 

 

156

 

 

 

156

 

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

 

 

 

 

 

 

 

$

4,430

 

 

 

4,529

 

 

 

3,843

 

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

 

 

 

 

 

 

 

 

 

 

 

 

4,629

 

 

 

3,843

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nasty Gal(14B)(15)

 

Consumer & Business Products

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

15,000

 

 

 

15,119

 

 

 

15,119

 

Second Time Around (Simplify Holdings, LLC)(14A)(15)

 

Consumer & Business Products

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%

 

$

2,500

 

 

 

2,490

 

 

 

2,481

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

17,609

 

 

 

17,600

 

Subtotal: Consumer & Business Products (2.99%)*

 

 

 

 

 

 

 

 

 

 

 

 

22,238

 

 

 

21,443

 

 

 

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Celsion Corporation(10)(14A)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

4,355

 

 

$

4,616

 

 

$

4,616

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,616

 

 

 

4,616

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(9)(10)(14A)(15)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.85%

or Floor rate of 9.10%

 

$

20,466

 

 

 

21,059

 

 

 

21,002

 

Agile Therapeutics, Inc.(10)(14A)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

16,500

 

 

 

16,465

 

 

 

16,382

 

Aprecia Pharmaceuticals Company(14A)

 

Drug Delivery

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

20,000

 

 

 

19,415

 

 

 

19,415

 

BIND Therapeutics, Inc.(14B)(15)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 5.10%

or Floor rate of 8.35%

 

$

8,345

 

 

 

8,820

 

 

 

8,820

 

BioQ Pharma Incorporated(10)(14A)(14B)

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

10,000

 

 

 

10,296

 

 

 

10,166

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.25%

 

$

3,000

 

 

 

3,006

 

 

 

2,990

 

Total BioQ Pharma Incorporated

 

 

 

 

 

 

 

$

13,000

 

 

 

13,302

 

 

 

13,156

 

Celator Pharmaceuticals, Inc.(10)(14A)

 

Drug Delivery

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

12,839

 

 

 

12,975

 

 

 

12,975

 

Dance Biopharm, Inc.(7)(14A)(15)

 

Drug Delivery

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.40%

or Floor rate of 10.65%

 

$

2,165

 

 

 

2,275

 

 

 

1,000

 

Edge Therapeutics, Inc.(10)(14A)

 

Drug Delivery

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 5.45%

or Floor rate of 9.95%

 

$

4,359

 

 

 

4,376

 

 

 

4,389

 

Egalet Corporation(11)(14A)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.15%

or Floor rate of 9.40%

 

$

15,000

 

 

 

15,155

 

 

 

15,206

 

Pulmatrix Inc.(8)(10)(14A)

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

7,000

 

 

 

6,973

 

 

 

6,964

 

ZP Opco, Inc (p.k.a. Zosano Pharma)(10)(14A)

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 2.70%

or Floor rate of 7.95%

 

$

15,000

 

 

 

15,068

 

 

 

14,900

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

135,883

 

 

 

134,209

 

Subtotal: Drug Delivery (19.34%)*

 

 

 

 

 

 

 

 

 

 

 

 

140,499

 

 

 

138,825

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neuralstem, Inc.(14A)(15)

 

Drug Discovery & Development

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

6,109

 

 

$

6,278

 

 

$

6,278

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,278

 

 

 

6,278

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc.(9)(14A)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.65%

or Floor rate of 11.90%

 

$

10,000

 

 

 

10,202

 

 

 

10,101

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.90%

or Floor rate of 11.90%

 

$

5,000

 

 

 

4,871

 

 

 

4,871

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

15,000

 

 

 

15,073

 

 

 

14,972

 

Bellicum Pharmaceuticals, Inc.(14B)(15)(17)

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

15,000

 

 

 

14,995

 

 

 

14,995

 

Brickell Biotech, Inc.(11)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 9.20%

 

$

7,500

 

 

 

7,385

 

 

 

7,347

 

Cerecor, Inc.(11)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

4,065

 

 

 

4,134

 

 

 

4,182

 

Cerulean Pharma, Inc.(12)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 1.55%

or Floor rate of 7.30%

 

$

17,112

 

 

 

17,660

 

 

 

17,558

 

CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.)(10)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%

 

$

23,236

 

 

 

23,940

 

 

 

24,063

 

CytRx Corporation(10)(14B)(15)

 

Drug Discovery & Development

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

25,000

 

 

 

24,643

 

 

 

24,643

 

Epirus Biopharmaceuticals, Inc.(7)(12)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

5,296

 

 

 

5,579

 

 

 

1,750

 

Genocea Biosciences, Inc.(10)(14A)(17)

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 2.25%

or Floor rate of 7.25%

 

$

17,000

 

 

 

17,156

 

 

 

17,152

 

Immune Pharmaceuticals(10)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

4,101

 

 

 

4,084

 

 

 

2,584

 

Insmed, Incorporated(10)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.25%

 

$

25,000

 

 

 

24,815

 

 

 

24,758

 

Mast Therapeutics, Inc.(14A)(15)

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 8.95%

 

$

15,000

 

 

 

15,013

 

 

 

14,992

 

Melinta Therapeutics(12)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 3.75%

or Floor rate of 8.25%

 

$

30,000

 

 

 

30,181

 

 

 

30,110

 

Merrimack Pharmaceuticals, Inc.(9)

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate FIXED 11.50%

 

$

25,000

 

 

 

25,000

 

 

 

25,149

 

Neothetics, Inc. (p.k.a. Lithera, Inc)(14A)(15)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 5.75%

or Floor rate of 9.00%

 

$

4,000

 

 

 

4,160

 

 

 

4,153

 

Paratek Pharmaceuticals, Inc.(14A)(15)(17)

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%

 

$

20,000

 

 

 

19,959

 

 

 

19,975

 

PhaseRx,Inc.(14B)(15)

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

6,000

 

 

 

5,814

 

 

 

5,814

 

uniQure B.V.(4)(9)(10)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

May 2020

 

Interest rate PRIME + 3.00%

or Floor rate of 8.25%

 

$

20,000

 

 

 

19,918

 

 

 

19,736

 

XOMA Corporation(9)(14B)(15)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 2.15%

or Floor rate of 9.40%

 

$

20,000

 

 

 

20,290

 

 

 

20,175

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

299,799

 

 

 

294,108

 

Subtotal: Drug Discovery & Development (41.85%)*

 

 

 

 

 

 

 

 

 

 

 

 

306,077

 

 

 

300,386

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Persimmon Technologies(11)(14B)

 

Electronics & Computer Hardware

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 7.50%

or Floor rate of 11.00%

 

$

7,000

 

 

 

6,986

 

 

 

6,925

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,986

 

 

 

6,925

 

Subtotal: Electronics & Computer Hardware (0.96%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,986

 

 

 

6,925

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InstaMed Communications, LLC(14B)(15)

 

Healthcare Services, Other

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

10,000

 

 

 

10,210

 

 

 

10,208

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,210

 

 

 

10,208

 

Subtotal: Healthcare Services, Other (1.42%)*

 

 

 

 

 

 

 

 

 

 

 

 

10,210

 

 

 

10,208

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NetPlenish(7)(8)(15)(18)

 

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)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 3.20%

or Floor rate of 6.95%,

PIK Interest 1.95%

 

$

2,041

 

 

 

2,020

 

 

 

1,977

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 5.20%

or Floor rate of 8.95%,

PIK Interest 1.95%

 

$

18,282

 

 

 

18,076

 

 

 

17,719

 

Total Aria Systems, Inc.

 

 

 

 

 

 

 

 

 

$

20,323

 

 

 

20,096

 

 

 

19,696

 

CloudOne, Inc.(10)(14B)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 6.35%

or Floor rate of 9.85%

 

$

5,000

 

 

 

4,979

 

 

 

4,979

 

LogicSource(14B)(15)

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%

 

$

8,500

 

 

 

8,423

 

 

 

8,423

 

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%

 

$

5,464

 

 

 

5,102

 

 

 

5,102

 

ReachLocal(12)(14B)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 8.50%

or Floor rate of 11.75%

 

$

25,000

 

 

 

25,407

 

 

 

25,407

 

Snagajob.com, Inc.(13)(14A)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2020

 

Interest rate PRIME + 5.15%

or Floor rate of 9.15%,

PIK Interest 1.95%

 

$

35,000

 

 

 

33,977

 

 

 

33,977

 

Tectura Corporation(7)(8)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%,

PIK Interest 3.00%

 

$

19,401

 

 

 

19,401

 

 

 

19,401

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

11,015

 

 

 

240

 

 

 

 

Total  Tectura Corporation

 

 

 

 

 

 

 

 

 

$

30,416

 

 

 

19,641

 

 

 

19,401

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

117,625

 

 

 

116,985

 

Subtotal: Internet Consumer & Business Services (16.30%)*

 

 

 

 

 

 

 

 

 

 

 

 

118,042

 

 

 

116,985

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.(13)(16)

 

Media/Content/Info

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 2.50%

or Floor rate of 6.75%,

PIK Interest 3.00%

 

$

102,216

 

 

 

100,402

 

 

 

99,938

 

WP Technology, Inc. (Wattpad, Inc.)(4)(9)(11)(14B)

 

Media/Content/Info

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%

 

$

5,000

 

 

 

4,971

 

 

 

4,971

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

105,373

 

 

 

104,909

 

Subtotal: Media/Content/Info (14.62%)*

 

 

 

 

 

 

 

 

 

 

 

 

105,373

 

 

 

104,909

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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)(14B)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 5.00%

or Floor rate of 10.50%

 

$

3,648

 

 

$

4,107

 

 

$

4,107

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,107

 

 

 

4,107

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(8)(14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 9.20%

or Floor rate of 12.45%

 

$

10,628

 

 

 

11,756

 

 

 

11,492

 

Aspire Bariatrics, Inc.(14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%

 

$

6,584

 

 

 

6,531

 

 

 

6,504

 

Avedro, Inc.(14A)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

11,761

 

 

 

11,782

 

 

 

11,731

 

Flowonix Medical Incorporated(12)(14B)(17)

 

Medical Devices & Equipment

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

13,671

 

 

 

13,929

 

 

 

13,855

 

 

 

Medical Devices & Equipment

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 6.50%

or Floor rate of 10.00%

 

$

5,000

 

 

 

4,826

 

 

 

4,826

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

 

$

18,671

 

 

 

18,755

 

 

 

18,681

 

Gamma Medica, Inc.(10)(14B)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

2,500

 

 

 

2,593

 

 

 

2,575

 

IntegenX, Inc.(14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.05%

or Floor rate of 10.05%

 

$

12,500

 

 

 

12,344

 

 

 

12,344

 

Micell Technologies, Inc.(11)(14B)

 

Medical Devices & Equipment

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

8,500

 

 

 

8,325

 

 

 

8,325

 

Quanta Fluid Solutions(4)(9)(10)(14B)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 8.05%

or Floor rate of 11.55%

 

$

12,500

 

 

 

12,413

 

 

 

12,413

 

Quanterix Corporation(10)(14A)(17)

 

Medical Devices & Equipment

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%

 

$

12,661

 

 

 

12,822

 

 

 

12,839

 

SynergEyes, Inc.(14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

3,332

 

 

 

3,677

 

 

 

3,609

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

100,998

 

 

 

100,513

 

Subtotal: Medical Devices & Equipment (14.58%)*

 

 

 

 

 

 

 

 

 

 

 

 

105,105

 

 

 

104,620

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(14B)(15)(17)

 

Semiconductors

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 8.25%

or Floor rate of 11.50%

 

$

4,268

 

 

 

4,391

 

 

 

4,348

 

Avnera Corporation(10)(14A)

 

Semiconductors

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 5.25%

or Floor rate of 8.50%

 

$

7,500

 

 

 

7,556

 

 

 

7,641

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,947

 

 

 

11,989

 

Subtotal: Semiconductors (1.67%)*

 

 

 

 

 

 

 

 

 

 

 

 

11,947

 

 

 

11,989

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.)(13)(14C)(15)

 

Software

 

Senior Secured

 

October 2016

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

1,524

 

 

$

1,574

 

 

$

936

 

RedSeal Inc.(15)

 

Software

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 3.25%

or Floor rate of 6.50%

 

$

1,343

 

 

 

1,343

 

 

 

1,343

 

Touchcommerce, Inc.(15)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

8,917

 

 

 

8,279

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.(13)(14A)

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.25%

or Floor rate of 8.25%,

PIK Interest 2.25%

 

$

30,609

 

 

 

30,420

 

 

 

30,196

 

 

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.75%,

PIK Interest 2.50%

 

$

10,043

 

 

 

9,648

 

 

 

9,648

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

 

$

40,652

 

 

 

40,068

 

 

 

39,844

 

Clickfox, Inc.(14B)

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.50%

 

$

12,000

 

 

 

11,721

 

 

 

11,720

 

Druva, Inc.(10)(12)(14B)(17)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

12,000

 

 

 

12,269

 

 

 

12,224

 

 

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

5,000

 

 

 

4,967

 

 

 

4,967

 

Total Druva, Inc.

 

 

 

 

 

 

 

 

 

$

17,000

 

 

 

17,236

 

 

 

17,191

 

JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.)(13)(14A)(15)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

12,649

 

 

 

12,192

 

 

 

7,250

 

Message Systems, Inc.(14A)(15)

 

Software

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

17,500

 

 

 

17,018

 

 

 

16,941

 

OneLogin, Inc.(13)(15)

 

Software

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%,

PIK Interest 3.25%

 

$

13,141

 

 

 

12,999

 

 

 

12,999

 

Quid, Inc.(13)(14A)(15)

 

Software

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%,

PIK Interest 2.25%

 

$

8,024

 

 

 

7,959

 

 

 

7,959

 

RedSeal Inc.(14A)(15)

 

Software

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

5,000

 

 

 

5,068

 

 

 

5,019

 

Signpost, Inc.(13)(14A)(15)

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.15%

or Floor rate of 8.15%,

PIK Interest 1.75%

 

$

15,102

 

 

 

14,743

 

 

 

14,743

 

Touchcommerce, Inc.(14A)(15)

 

Software

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 10.25%

 

$

12,000

 

 

 

12,061

 

 

 

12,061

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

151,065

 

 

 

145,727

 

Subtotal: Software (21.46%)*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

159,982

 

 

 

154,006

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(10)(14A)

 

Specialty Pharmaceuticals

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.65%

or Floor rate of 10.90%

 

$

35,000

 

 

 

34,396

 

 

 

34,262

 

Jaguar Animal Health, Inc.(10)(14B)

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2018

 

Interest rate PRIME + 5.65%

or Floor rate of 9.90%

 

$

4,144

 

 

 

4,354

 

 

 

4,255

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,750

 

 

 

38,517

 

Subtotal: Specialty Pharmaceuticals (5.37%)*

 

 

 

 

 

 

 

 

 

 

 

 

38,750

 

 

 

38,517

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmedics, Inc.(12)(14A)

 

Surgical Devices

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 5.30%

or Floor rate of 9.55%

 

$

8,500

 

 

 

8,512

 

 

 

8,444

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,512

 

 

 

8,444

 

Subtotal: Surgical Devices (1.18%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,512

 

 

 

8,444

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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.(14B)(15)

 

Sustainable and Renewable Technology

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

3,197

 

 

$

3,467

 

 

$

3,467

 

American Superconductor Corporation(10)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

1,667

 

 

 

2,155

 

 

 

2,155

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

1,500

 

 

 

1,522

 

 

 

1,522

 

Total American Superconductor Corporation

 

 

 

 

 

 

 

$

3,167

 

 

 

3,677

 

 

 

3,677

 

Modumetal, Inc.(11)(14D)

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 8.70%

or Floor rate of 11.95%

 

$

1,089

 

 

 

1,524

 

 

 

1,524

 

Stion Corporation(5)(14A)

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

1,294

 

 

 

1,294

 

 

 

1,294

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

9,962

 

 

 

9,962

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FuelCell Energy, Inc.(11)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 5.50%

or Floor rate of 9.50%

 

$

15,000

 

 

 

15,114

 

 

 

15,114

 

Modumetal, Inc.(11)(14C)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

5,259

 

 

 

5,698

 

 

 

5,630

 

Plug Power, Inc(9)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 10.45%

 

$

25,000

 

 

 

24,649

 

 

 

24,649

 

Proterra, Inc.(10)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.95%

or Floor rate of 10.20%

 

$

30,000

 

 

 

30,262

 

 

 

30,188

 

Rive Technology, Inc.(14A)(15)

 

Sustainable and Renewable Technology

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.20%

or Floor rate of 9.45%

 

$

7,500

 

 

 

7,493

 

 

 

7,493

 

Sungevity, Inc.(12)(14D)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

35,000

 

 

 

37,315

 

 

 

37,183

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

20,000

 

 

 

20,000

 

 

 

20,004

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

 

$

55,000

 

 

 

57,315

 

 

 

57,187

 

Tendril Networks(11)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate FIXED 7.25%

 

$

15,000

 

 

 

15,082

 

 

 

14,843

 

Verdezyne, Inc.(14B)(15)

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 8.25%

or Floor rate of 11.75%

 

$

15,000

 

 

 

14,944

 

 

 

14,944

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

170,557

 

 

 

170,048

 

Subtotal: Sustainable and Renewable Technology (25.08%)*

 

 

 

 

 

 

 

 

 

 

 

 

180,519

 

 

 

180,010

 

Total Debt Investments (168.82%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,255,896

 

 

 

1,211,782

 

 

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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.(15)

 

Biotechnology Tools

 

Equity

 

Preferred Series C

 

 

189,394

 

 

$

500

 

 

$

571

 

Subtotal: Biotechnology Tools (0.08%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

571

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc.(3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

101

 

 

 

33

 

Peerless Network, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

5,058

 

Achilles Technology Management Co II, Inc. (6)(15)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

10,000

 

 

 

4,000

 

 

 

4,000

 

Subtotal: Communications & Networking (1.27%)*

 

 

 

 

 

 

 

 

 

 

5,101

 

 

 

9,091

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

480,261

 

 

 

 

 

 

353

 

 

 

Consumer & Business Products

 

Equity

 

Preferred Series B-1

 

 

187,970

 

 

 

500

 

 

 

3

 

Total Market Force Information, Inc.

 

 

 

 

 

 

 

 

668,231

 

 

 

500

 

 

 

356

 

Subtotal: Consumer & Business Products (0.05%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

356

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

641

 

Subtotal: Diagnostic (0.09%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

641

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

146

 

BioQ Pharma Incorporated(15)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

684

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

161,856

 

 

 

1,000

 

 

 

1,636

 

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

 

Drug Delivery

 

Equity

 

Common Stock

 

 

20,000

 

 

 

9

 

 

 

 

Neos Therapeutics, Inc.(3)(15)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

1,160

 

Revance Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

22,765

 

 

 

557

 

 

 

310

 

Subtotal: Drug Delivery (0.55%)*

 

 

 

 

 

 

 

 

 

 

3,674

 

 

 

3,936

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc.(3)(9)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

426,931

 

 

 

1,060

 

 

 

364

 

Cerecor, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

262

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

135,501

 

 

 

1,000

 

 

 

287

 

Dicerna Pharmaceuticals, Inc.(3)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

429

 

Dynavax Technologies(3)(9)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

292

 

Epirus Biopharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

200,000

 

 

 

1,000

 

 

 

90

 

Genocea Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

916

 

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

 

 

 

698

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Equity

 

Preferred Series 4

 

 

1,914,448

 

 

 

2,000

 

 

 

2,078

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,743

 

 

 

1,063

 

Subtotal: Drug Discovery & Development (0.91%)*

 

 

 

 

 

 

 

 

 

 

14,853

 

 

 

6,507

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc.(3)

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

12

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

12

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(15)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

200

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

230,030

 

 

 

250

 

 

 

261

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

249

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

510

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

330

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

238

 

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

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

568

 

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

 

 

 

32

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series BB

 

 

1,000,000

 

 

 

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.18%)*

 

 

 

 

 

 

 

 

 

 

1,283

 

 

 

1,310

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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)(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

7,536

 

 

$

266

 

 

$

98

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

221,893

 

 

 

1,500

 

 

 

1,893

 

Gelesis, Inc.(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

679

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

734

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

695

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,108

 

Medrobotics Corporation(15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

220

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

184

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

517

 

Total Medrobotics Corporation

 

 

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

921

 

Novasys Medical, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D-1

 

 

4,118,444

 

 

 

1,000

 

 

 

 

Optiscan Biomedical, Corp.(5)(15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

278

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

82

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

3,046

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

11,508,204

 

 

 

963

 

 

 

987

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

 

 

74,725,003

 

 

 

9,875

 

 

 

4,393

 

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

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

530

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

272,479

 

 

 

1,000

 

 

 

1,093

 

Subtotal: Medical Devices & Equipment (1.54%)*

 

 

 

 

 

 

 

 

 

 

15,998

 

 

 

11,036

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Box, Inc.(3)(15)

 

Software

 

Equity

 

Common Stock

 

 

1,287,347

 

 

 

5,654

 

 

 

12,794

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

83

 

Druva, Inc.

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,239

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

1,229

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

80,587

 

 

 

131

 

 

 

314

 

Total ForeScout Technologies, Inc.

 

 

 

 

 

 

 

 

399,686

 

 

 

529

 

 

 

1,543

 

HighRoads, Inc.

 

Software

 

Equity

 

Preferred Series B

 

 

190,170

 

 

 

307

 

 

 

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

806

 

Palantir Technologies

 

Software

 

Equity

 

Preferred Series E

 

 

727,696

 

 

 

5,431

 

 

 

5,431

 

WildTangent, Inc.(15)

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

163

 

Subtotal: Software (3.07%)*

 

 

 

 

 

 

 

 

 

 

14,337

 

 

 

22,059

 

 

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.(15)

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

29

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

39

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

640

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

413

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

5,653,360

 

 

 

1,673

 

 

 

1,121

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

336

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

258

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

871

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

516

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

1,981

 

Subtotal: Surgical Devices (0.43%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

3,102

 

 

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

 

 

 

503

 

SCIEnergy, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

19,250

 

 

 

761

 

 

 

 

Sungevity, Inc.(15)

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series D

 

 

68,807,339

 

 

 

6,750

 

 

 

6,777

 

Subtotal: Sustainable and Renewable Technology (1.01%)*

 

 

 

 

 

 

 

 

 

 

8,176

 

 

 

7,284

 

Total: Equity Investments (9.18%)*

 

 

 

 

 

 

 

 

 

 

70,179

 

 

 

65,905

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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

 

 

$

103

 

Labcyte, Inc.(15)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

 

323

 

 

 

215

 

Subtotal: Biotechnology Tools (0.04%)*

 

 

 

 

 

 

 

 

 

 

430

 

 

 

318

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelepeer, Inc.(15)

 

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

 

 

 

15

 

Peerless Network, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

439

 

SkyCross, Inc.(6)(15)

 

Communications & Networking

 

Warrant

 

Preferred Series F

 

 

9,762,777

 

 

 

394

 

 

 

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

2,834,375

 

 

 

418

 

 

 

38

 

Subtotal: Communications & Networking (0.07%)*

 

 

 

 

 

 

 

 

 

 

1,219

 

 

 

492

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation)(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

1,662,441

 

 

 

228

 

 

 

 

Intelligent Beauty, Inc.(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

287

 

IronPlanet, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series D

 

 

1,155,821

 

 

 

1,077

 

 

 

766

 

Nasty Gal(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

845,194

 

 

 

23

 

 

 

7

 

The Neat Company(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

 

Subtotal: Consumer & Business Products (0.15%)*

 

 

 

 

 

 

 

 

 

 

1,923

 

 

 

1,060

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Navidea Biopharmaceuticals, Inc. (p.k.a. Neoprobe)(3)(15)

 

Diagnostic

 

Warrant

 

Common Stock

 

 

333,333

 

 

 

244

 

 

 

 

Subtotal: Diagnostic (0.00%)*

 

 

 

 

 

 

 

 

 

 

244

 

 

 

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(9)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

785

 

 

 

107

 

Agile Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

523

 

Aprecia Pharmaceuticals Company

 

Drug Delivery

 

Warrant

 

Preferred Series A-1

 

 

735,981

 

 

 

366

 

 

 

362

 

BIND Therapeutics, Inc.(3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

152,586

 

 

 

488

 

 

 

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

524

 

Celsion Corporation(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

4

 

Dance Biopharm, Inc.(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

78,595

 

 

 

390

 

 

 

283

 

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

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

370

 

Neos Therapeutics, Inc.(3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

90

 

Pulmatrix Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

25,150

 

 

 

116

 

 

 

4

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

72,379

 

 

 

266

 

 

 

 

Subtotal: Drug Delivery (0.32%)*

 

 

 

 

 

 

 

 

 

 

4,523

 

 

 

2,267

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMA Biologics, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

$

295

 

 

$

49

 

Anthera Pharmaceuticals, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

Aveo Pharmaceuticals, Inc.(3)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

2,069,880

 

 

 

396

 

 

 

505

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

118

 

Cerecor, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

3

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,901

 

 

 

369

 

 

 

75

 

Chroma Therapeutics, Ltd.(4)(9)

 

Drug Discovery & Development

 

Warrant

 

Preferred Series D

 

 

325,261

 

 

 

490

 

 

 

 

Cleveland BioLabs, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,813

 

 

 

105

 

 

 

2

 

Concert Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

70,796

 

 

 

367

 

 

 

90

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

292,398

 

 

 

165

 

 

 

5

 

CytRx Corporation(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

634,146

 

 

 

416

 

 

 

599

 

Dicerna Pharmaceuticals, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

200

 

 

 

28

 

 

 

 

Epirus Biopharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

64,194

 

 

 

276

 

 

 

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

10

 

Genocea Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,725

 

 

 

266

 

 

 

86

 

Immune Pharmaceuticals(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

214,853

 

 

 

164

 

 

 

 

Mast Therapeutics, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

2,272,724

 

 

 

203

 

 

 

455

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Warrant

 

Preferred Series 3

 

 

1,382,323

 

 

 

626

 

 

 

155

 

Nanotherapeutics, Inc.(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

705

 

Neothetics, Inc. (p.k.a. Lithera, Inc)(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

46,838

 

 

 

266

 

 

 

18

 

Neuralstem, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

75,187

 

 

 

77

 

 

 

2

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.)(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

16,346

 

 

 

42

 

 

 

16

 

PhaseRx,Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

63,000

 

 

 

125

 

 

 

92

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

28

 

XOMA Corporation(3)(9)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

181,268

 

 

 

279

 

 

 

30

 

Subtotal: Drug Discovery & Development (0.42%)*

 

 

 

 

 

 

 

 

 

 

7,326

 

 

 

3,043

 

 

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

 

 

 

37

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

52

 

 

 

37

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation(3)(15)

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

203

 

Subtotal: Healthcare Services, Other (0.03%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

203

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cha Cha Search, Inc.(15)

 

Information Services

 

Warrant

 

Preferred Series G

 

 

48,232

 

 

 

58

 

 

 

 

INMOBI Inc.(4)(9)

 

Information Services

 

Warrant

 

Common Stock

 

 

46,874

 

 

 

82

 

 

 

 

InXpo, Inc.(15)

 

Information Services

 

Warrant

 

Preferred Series C

 

 

648,400

 

 

 

98

 

 

 

1

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

1,165,183

 

 

 

74

 

 

 

1

 

Total InXpo, Inc.

 

 

 

 

 

 

 

 

1,813,583

 

 

 

172

 

 

 

2

 

RichRelevance, Inc.(15)

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.00%)*

 

 

 

 

 

 

 

 

 

 

410

 

 

 

2

 

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

239,692

 

 

$

73

 

 

$

60

 

Blurb, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

102

 

CashStar, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

22

 

CloudOne, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

38

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

1,950

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

65

 

LogicSource(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

58

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

102

 

Prism Education Group, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

200,000

 

 

 

43

 

 

 

 

ReachLocal(3)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

300,000

 

 

 

155

 

 

 

764

 

ShareThis, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

132

 

Snagajob.com, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

1,575,000

 

 

 

640

 

 

 

640

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

174

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B-1

 

 

253,378

 

 

 

51

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.57%)*

 

 

 

 

 

 

 

 

 

 

3,840

 

 

 

4,107

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.(16)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

155,271

 

 

 

1,960

 

 

 

2,730

 

Rhapsody International, Inc.(15)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

384

 

 

 

116

 

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

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

127,909

 

 

 

1

 

 

 

1

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

347

 

 

 

17

 

Subtotal: Media/Content/Info (0.40%)*

 

 

 

 

 

 

 

 

 

 

2,692

 

 

 

2,864

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(3)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

103,225

 

 

 

459

 

 

 

52

 

Aspire Bariatrics, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

395,000

 

 

 

455

 

 

 

229

 

Avedro, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

300,000

 

 

 

401

 

 

 

148

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

155,325

 

 

 

362

 

 

 

595

 

Gamma Medica, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

450,956

 

 

 

170

 

 

 

210

 

Gelesis, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

164

 

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

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

441,019

 

 

 

242

 

 

 

 

IntegenX, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

547,752

 

 

 

15

 

 

 

16

 

Medrobotics Corporation(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

322

 

Micell Technologies, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

337

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

2,568

 

 

 

408

 

 

 

37

 

NinePoint Medical, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

58

 

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)(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

10,535,275

 

 

 

1,252

 

 

 

156

 

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

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

305

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

173,428

 

 

 

180

 

 

 

104

 

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)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

19

 

Subtotal: Medical Devices & Equipment (0.38%)*

 

 

 

 

 

 

 

 

 

 

6,282

 

 

 

2,752

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(15)

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

58

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-1

 

 

500,000

 

 

 

7

 

 

 

1

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

860,000

 

 

 

167

 

 

 

59

 

Aquantia Corp.

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

196,831

 

 

 

4

 

 

 

53

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

141,567

 

 

 

46

 

 

 

48

 

Subtotal: Semiconductors (0.02%)*

 

 

 

 

 

 

 

 

 

 

217

 

 

 

160

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

73,584

 

 

$

249

 

 

$

163

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

85

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

248

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation(15)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

457

 

Clickfox, Inc.(15)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

105

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

110

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

230

 

 

 

224

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

3,848,796

 

 

 

1,290

 

 

 

439

 

Hillcrest Laboratories, Inc.(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

1,865,650

 

 

 

55

 

 

 

207

 

JumpStart Games, Inc. (p.k.a Knowledge Holdings, Inc.)(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

614,333

 

 

 

16

 

 

 

 

Message Systems, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

247

 

Mobile Posse, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

108

 

Neos, Inc.(15)

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

105

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

34

 

OneLogin, Inc.(15)

 

Software

 

Warrant

 

Common Stock

 

 

228,972

 

 

 

150

 

 

 

155

 

Poplicus, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

2,595,230

 

 

 

 

 

 

69

 

Quid, Inc.(15)

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

1

 

Signpost, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

384

 

Soasta, Inc.(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

410,800

 

 

 

691

 

 

 

292

 

Sonian, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

23

 

Touchcommerce, Inc.(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

2,282,968

 

 

 

446

 

 

 

2,187

 

Subtotal: Software (0.69%)*

 

 

 

 

 

 

 

 

 

 

4,626

 

 

 

4,956

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

862,069

 

 

 

728

 

 

 

147

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Warrant

 

Preferred Series E

 

 

155,324

 

 

 

308

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.02%)*

 

 

 

 

 

 

 

 

 

 

1,036

 

 

 

147

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(15)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

74

 

 

 

9

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

215

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

1,756,445

 

 

 

394

 

 

 

224

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

225

 

 

 

10

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

370

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

16,476

 

 

 

3

 

 

 

15

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

231,912

 

 

 

328

 

 

 

395

 

Subtotal: Surgical Devices (0.09%)*

 

 

 

 

 

 

 

 

 

 

722

 

 

 

619

 

 

See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 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.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

471,327

 

 

$

120

 

 

$

70

 

Alphabet Energy, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

86,329

 

 

 

82

 

 

 

160

 

American Superconductor Corporation(3)

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

58,823

 

 

 

39

 

 

 

125

 

Brightsource Energy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 1

 

 

116,667

 

 

 

104

 

 

 

 

Calera, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

EcoMotors, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

437,500

 

 

 

308

 

 

 

76

 

Fluidic, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

52

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

198

 

GreatPoint Energy, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D-1

 

 

393,212

 

 

 

548

 

 

 

 

Polyera Corporation(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

311,609

 

 

 

338

 

 

 

12

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 4

 

 

477,517

 

 

 

41

 

 

 

14

 

Rive Technology, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

12

 

 

 

10

 

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.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

662

 

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

 

 

 

257

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

32,472,222

 

 

 

902

 

 

 

138

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

52,472,222

 

 

 

1,445

 

 

 

395

 

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

 

 

 

205

 

TPI Composites, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

160

 

 

 

273

 

 

 

9

 

Trilliant, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

162

 

 

 

76

 

Subtotal: Sustainable and Renewable Technology (0.29%)*

 

 

 

 

 

 

 

 

 

 

7,621

 

 

 

2,064

 

Total: Warrant Investments (3.50%)*

 

 

 

 

 

 

 

 

 

 

43,320

 

 

 

25,091

 

Total Investments (181.50%)*

 

 

 

 

 

 

 

 

 

$

1,369,395

 

 

$

1,302,778

 

 

*

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 $22.5 million, $89.4 million and $66.9 million respectively. The tax cost of investments is $1.4 billion.

(3)

Except for warrants in 38 publicly traded companies and common stock in 20 publicly traded companies, all investments are restricted at June 30, 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.

(7)

Debt is on non-accrual status at June 30, 2016, and is therefore considered non-income producing. Note that at June 30, 2016, only the $11.0 million PIK loan is on non-accrual for the Company’s debt investment in Tectura Corporation.

(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 is pledged as collateral under the Union Facility (as defined in Note 4).

(13)

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

(14)

Denotes that all or a portion of the debt investment includes an exit fee receivable.

A. This fee ranges from 1.0% to 5.0% of the total debt commitment based on the contractual terms of our loan servicing agreements.

B. This fee ranges from 5.0% to 10.0% of the total debt commitment based on the contractual terms of our loan servicing agreements.

C. This fee ranges from 10.0% to 15.0% of the total debt commitment based on the contractual terms of our loan servicing agreements.

D. This fee is greater than 15.0% of the total debt commitment based on the contractual terms of our loan servicing agreements.

(15)

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.

(16)

Denotes that the fair value of the Company’s total investments in this portfolio company represent greater than 5% of the Company’s total assets at June 30, 2016.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at June 30, 2016. Refer to Note 10.

(18)

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

 


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)

 

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.

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 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