UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For The Quarterly Period Ended September 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      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

 

  

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  

On October 31, 2016, there were 77,189,555 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 September 30, 2016 and December 31, 2015 (unaudited)

  

3

 

 

 

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

  

5

 

 

 

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

  

5

 

 

 

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

  

7

 

 

 

Consolidated Schedule of Investments as of September 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)

 

 

 

September 30, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $1,352,633 and $1,238,539, respectively)

 

$

1,309,696

 

 

$

1,192,652

 

Control investments (cost of $22,285 and $0, respectively)

 

 

4,991

 

 

 

 

Affiliate investments (cost of $13,326 and $13,742, respectively)

 

 

5,923

 

 

 

7,986

 

Total investments, at value (cost of $1,388,244 and $1,252,281, respectively)

 

 

1,320,610

 

 

 

1,200,638

 

Cash and cash equivalents

 

 

69,012

 

 

 

95,196

 

Restricted cash

 

 

8,980

 

 

 

9,191

 

Interest receivable

 

 

10,861

 

 

 

9,239

 

Other assets

 

 

9,961

 

 

 

9,720

 

Total assets

 

$

1,419,424

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

16,649

 

 

$

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 $117,004 and $129,300, respectively) (1)

 

 

115,531

 

 

 

126,995

 

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

 

 

108,659

 

 

 

108,179

 

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

 

 

237,663

 

 

 

100,128

 

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

 

 

187,333

 

 

 

186,829

 

Total liabilities

 

$

665,835

 

 

$

606,850

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

77

 

 

 

73

 

Capital in excess of par value

 

 

802,521

 

 

 

752,244

 

Unrealized depreciation on investments (2)

 

 

(68,880

)

 

 

(52,808

)

Accumulated realized gains on investments

 

 

31,420

 

 

 

27,993

 

Distributions in excess of net investment income

 

 

(11,549

)

 

 

(10,368

)

Total net assets

 

$

753,589

 

 

$

717,134

 

Total liabilities and net assets

 

$

1,419,424

 

 

$

1,323,984

 

 

 

 

 

 

 

 

 

 

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

 

 

76,400

 

 

 

72,118

 

Net asset value per share

 

$

9.86

 

 

$

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 $1.2 million in net unrealized depreciation on other assets and accrued liabilities, including escrow receivables, estimated taxes payable and Citigroup warrant participation agreement liabilities as of September 30, 2016 and December 31, 2015.

 

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)

 

September 30, 2016

 

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

8,980

 

 

$

9,191

 

Total investments, at value (cost of $245,868 and $258,748, respectively)

 

 

243,216

 

 

 

257,657

 

Total assets

 

$

252,196

 

 

$

266,848

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2021 Asset-Backed Notes, net (principal of $117,004 and $129,300, respectively) (1)

 

$

115,531

 

 

$

126,995

 

Total liabilities

 

$

115,531

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

39,907

 

 

$

40,256

 

 

$

115,887

 

 

$

105,861

 

Control investments

 

15

 

 

 

 

 

 

15

 

 

 

 

Affiliate investments

 

30

 

 

 

83

 

 

 

145

 

 

 

278

 

Total interest income

 

39,952

 

 

 

40,339

 

 

 

116,047

 

 

 

106,139

 

Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

5,149

 

 

 

6,793

 

 

 

11,531

 

 

 

11,611

 

Control investments

 

1

 

 

 

 

 

 

1

 

 

 

 

Affiliate investments

 

 

 

 

 

 

 

 

 

 

1

 

Total fees

 

5,150

 

 

 

6,793

 

 

 

11,532

 

 

 

11,612

 

Total investment income

 

45,102

 

 

 

47,132

 

 

 

127,579

 

 

 

117,751

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

8,717

 

 

 

7,818

 

 

 

23,306

 

 

 

23,243

 

Loan fees

 

1,432

 

 

 

1,072

 

 

 

3,698

 

 

 

4,166

 

General and administrative

 

4,114

 

 

 

4,504

 

 

 

12,095

 

 

 

12,190

 

Employee compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

5,621

 

 

 

7,969

 

 

 

15,637

 

 

 

17,621

 

Stock-based compensation

 

1,442

 

 

 

2,179

 

 

 

5,616

 

 

 

7,166

 

Total employee compensation

 

7,063

 

 

 

10,148

 

 

 

21,253

 

 

 

24,787

 

Total operating expenses

 

21,326

 

 

 

23,542

 

 

 

60,352

 

 

 

64,386

 

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

 

 

 

 

 

 

 

 

 

 

(1

)

Net investment income

 

23,776

 

 

 

23,590

 

 

 

67,227

 

 

 

53,364

 

Net realized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

7,870

 

 

 

6,366

 

 

 

3,427

 

 

 

8,424

 

Total net realized gain on investments

 

7,870

 

 

 

6,366

 

 

 

3,427

 

 

 

8,424

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(1,387

)

 

 

(25,032

)

 

 

(11,005

)

 

 

(34,585

)

Control investments

 

 

 

 

 

 

 

(3,421

)

 

 

 

Affiliate investments

 

553

 

 

 

(849

)

 

 

(1,646

)

 

 

1,543

 

Total net unrealized depreciation on investments

 

(834

)

 

 

(25,881

)

 

 

(16,072

)

 

 

(33,042

)

Total net realized and unrealized gain (loss)

 

7,036

 

 

 

(19,515

)

 

 

(12,645

)

 

 

(24,618

)

Net increase in net assets resulting from operations

$

30,812

 

 

$

4,075

 

 

$

54,582

 

 

$

28,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.32

 

 

$

0.33

 

 

$

0.91

 

 

$

0.76

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.41

 

 

$

0.05

 

 

$

0.74

 

 

$

0.40

 

Diluted

$

0.41

 

 

$

0.05

 

 

$

0.74

 

 

$

0.40

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

74,122

 

 

 

71,462

 

 

 

72,685

 

 

 

68,897

 

Diluted

 

74,157

 

 

 

71,496

 

 

 

72,702

 

 

 

69,123

 

Dividend distributions declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

$

0.93

 

 

$

0.93

 

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

 

 

 

 

 

 

 

 

 

 

(33,042

)

 

 

8,424

 

 

 

53,364

 

 

 

 

 

 

28,746

 

Public offering, net of offering expenses

 

7,591

 

 

 

8

 

 

 

100,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,092

 

Issuance of common stock due to stock option exercises

 

51

 

 

 

 

 

 

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

428

 

Retired shares from net issuance

 

(29

)

 

 

 

 

 

(423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(423

)

Issuance of common stock under restricted stock plan

 

676

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(595

)

 

 

(1

)

 

 

(3,997

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,998

)

Issuance of common stock as stock dividend

 

123

 

 

 

 

 

 

1,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,589

 

Dividend distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(65,238

)

 

 

 

 

 

(65,238

)

Stock-based compensation (1)

 

 

 

 

 

 

 

7,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,231

 

Balance at September 30, 2015

 

72,109

 

 

$

73

 

 

$

757,646

 

 

$

(50,118

)

 

$

22,503

 

 

$

(6,969

)

 

$

(342

)

 

$

722,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

(16,072

)

 

 

3,427

 

 

 

67,227

 

 

 

 

 

 

54,582

 

Public offering, net of offering expenses

 

4,273

 

 

 

4

 

 

 

50,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,177

 

Acquisition of common stock under repurchase plan

 

(450

)

 

 

(1

)

 

 

(4,789

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,790

)

Issuance of common stock due to stock option exercises

 

42

 

 

 

 

 

 

426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

426

 

Retired shares from net issuance

 

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under restricted stock plan

 

552

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(240

)

 

 

 

 

 

(2,560

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,560

)

Issuance of common stock as stock dividend

 

111

 

 

 

 

 

 

1,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,343

 

Dividend distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(68,408

)

 

 

 

 

 

(68,408

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,685

 

Balance at September 30, 2016

 

76,400

 

 

$

77

 

 

$

802,521

 

 

$

(68,880

)

 

$

31,420

 

 

$

(11,207

)

 

$

(342

)

 

$

753,589

 

 

(1)

Stock-based compensation includes $69 and $65 of restricted stock and option expense related to director compensation for the nine months ended September 30, 2016 and 2015, respectively.

 

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Nine Months Ended September 30,

 

 

2016

 

 

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

$

54,582

 

 

$

28,746

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(461,772

)

 

 

(532,048

)

Principal and fee payments received on investments

 

340,584

 

 

 

379,247

 

Proceeds from the sale of investments

 

16,701

 

 

 

16,523

 

Net unrealized depreciation on investments

 

16,072

 

 

 

33,042

 

Net realized loss (gain) on investments

 

(3,427

)

 

 

(8,424

)

Accretion of paid-in-kind principal

 

(5,317

)

 

 

(2,796

)

Accretion of loan discounts

 

(5,524

)

 

 

(6,369

)

Accretion of loan discount on Convertible Senior Notes

 

82

 

 

 

185

 

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

 

(16,679

)

 

 

(10,493

)

Change in deferred loan origination revenue

 

(253

)

 

 

1,275

 

Unearned fees related to unfunded commitments

 

(308

)

 

 

(271

)

Amortization of debt fees and issuance costs

 

2,987

 

 

 

3,498

 

Depreciation

 

152

 

 

 

152

 

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

 

5,685

 

 

 

7,231

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(1,622

)

 

 

925

 

Prepaid expenses and other assets

 

228

 

 

 

4,833

 

Accounts payable

 

56

 

 

 

171

 

Accrued liabilities

 

(729

)

 

 

6,065

 

Net cash used in operating activities

 

(58,502

)

 

 

(78,512

)

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(227

)

 

 

(158

)

Reduction of restricted cash

 

211

 

 

 

7,302

 

Net cash (used in) provided by investing activities

 

(16

)

 

 

7,144

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

50,177

 

 

 

100,092

 

Repurchase of common stock, net

 

(4,790

)

 

 

(4,498

)

Retirement of employee shares

 

(2,134

)

 

 

(3,993

)

Dividend distributions paid

 

(67,065

)

 

 

(63,649

)

Issuance of 2024 Notes Payable

 

141,945

 

 

 

 

Repayments of 2019 Notes Payable

 

 

 

 

(20,000

)

Repayments of 2017 Asset-Backed Notes

 

 

 

 

(16,049

)

Repayments of 2021 Asset-Backed Notes

 

(12,296

)

 

 

 

Borrowings of credit facilities

 

193,276

 

 

 

53,365

 

Repayments of credit facilities

 

(243,276

)

 

 

(53,365

)

Cash paid for debt issuance costs

 

(4,858

)

 

 

 

Cash paid for redemption of Convertible Senior Notes

 

(17,604

)

 

 

(65

)

Fees paid for credit facilities and debentures

 

(1,041

)

 

 

(282

)

Net cash provided by (used in) financing activities

 

32,334

 

 

 

(8,444

)

Net decrease in cash and cash equivalents

 

(26,184

)

 

 

(79,812

)

Cash and cash equivalents at beginning of period

 

95,196

 

 

 

227,116

 

Cash and cash equivalents at end of period

$

69,012

 

 

$

147,304

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Dividend distributions reinvested

$

1,343

 

 

$

1,589

 

 

(1)

Stock-based compensation includes $69 and $65 of restricted stock and option expense related to director compensation for the nine months ended September 30, 2016 and 2015, respectively.

 

See notes to consolidated financial statements.

7


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)(14A)

 

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

6,000

 

 

$

5,935

 

 

$

5,996

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,935

 

 

 

5,996

 

Subtotal: Biotechnology Tools (0.80%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,935

 

 

 

5,996

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group(4)(9)

 

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

7,500

 

 

 

6,787

 

 

 

5,981

 

Achilles Technology Management Co II, Inc.(6)(13)(14B)

 

 

Communications & Networking

 

Senior Secured

 

August 2017

 

PIK Interest 10.50%

 

$

1,001

 

 

 

991

 

 

 

991

 

OpenPeak, Inc.(7)

 

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,211

 

 

 

8,975

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

16,753

 

 

 

6,972

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate FIXED 10.95%,

PIK Interest 5.00%

 

$

16,758

 

 

 

16,900

 

 

 

 

Spring Mobile Solutions, Inc.(12)(14B)

 

 

Communications & Networking

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.70%

or Floor rate of 9.95%

 

$

3,000

 

 

 

3,010

 

 

 

3,002

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

19,910

 

 

 

3,002

 

Subtotal: Communications & Networking (1.32%)*

 

 

 

 

 

 

 

 

 

 

 

 

36,663

 

 

 

9,974

 

 

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%

 

$

4,302

 

 

 

4,628

 

 

 

4,071

 

 

 

 

Consumer & Business Products

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

156

 

 

 

156

 

 

 

137

 

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

 

 

 

 

 

 

 

$

4,458

 

 

 

4,784

 

 

 

4,208

 

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

 

 

 

 

 

 

 

 

 

 

 

 

4,884

 

 

 

4,208

 

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

 

 

 

15,249

 

 

 

5,000

 

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%

 

$

2,428

 

 

 

2,430

 

 

 

2,434

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

17,679

 

 

 

7,434

 

Subtotal: Consumer & Business Products (1.54%)*

 

 

 

 

 

 

 

 

 

 

 

 

22,563

 

 

 

11,642

 

 

 

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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%

 

$

3,316

 

 

$

3,617

 

 

$

3,617

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,617

 

 

 

3,617

 

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

 

 

 

21,005

 

 

 

20,949

 

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

 

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

16,500

 

 

 

16,413

 

 

 

16,390

 

Aprecia Pharmaceuticals Company(14A)

 

 

Drug Delivery

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

20,000

 

 

 

19,555

 

 

 

19,555

 

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

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

9,130

 

 

 

9,484

 

 

 

9,403

 

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.25%

 

$

2,736

 

 

 

2,763

 

 

 

2,759

 

Total BioQ Pharma Incorporated

 

 

 

 

 

 

 

 

 

 

$

11,866

 

 

 

12,247

 

 

 

12,162

 

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

 

 

Drug Delivery

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.40%

or Floor rate of 10.65%

 

$

2,145

 

 

 

2,255

 

 

 

2,255

 

Edge Therapeutics, Inc.(14A)(17)

 

 

Drug Delivery

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.65%

or Floor rate of 9.15%

 

$

15,000

 

 

 

14,927

 

 

 

15,008

 

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

 

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

6,588

 

 

 

6,611

 

 

 

6,625

 

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%

 

$

13,636

 

 

 

13,774

 

 

 

13,718

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

106,787

 

 

 

106,662

 

Subtotal: Drug Delivery (14.63%)*

 

 

 

 

 

 

 

 

 

 

 

 

110,404

 

 

 

110,279

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cerecor, Inc.(11)(14A)

 

 

Drug Discovery & Development

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

3,229

 

 

$

3,324

 

 

$

3,324

 

Neuralstem, Inc.(14A)(15)

 

 

Drug Discovery & Development

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

4,953

 

 

 

5,156

 

 

 

5,156

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,480

 

 

 

8,480

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auris Medical Holding, AG(4)(9)(14B)

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 6.05%

or Floor rate of 9.55%

 

$

12,500

 

 

 

12,206

 

 

 

12,206

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.90%

or Floor rate of 11.90%

 

$

10,000

 

 

 

10,235

 

 

 

10,205

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.90%

or Floor rate of 11.90%

 

$

5,000

 

 

 

4,898

 

 

 

4,898

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

 

 

 

$

15,000

 

 

 

15,133

 

 

 

15,103

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

15,000

 

 

 

15,101

 

 

 

15,197

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

5,000

 

 

 

4,960

 

 

 

4,999

 

Total Bellicum Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

20,000

 

 

 

20,061

 

 

 

20,196

 

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

 

 

 

7,452

 

 

 

7,459

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 1.55%

or Floor rate of 7.30%

 

$

15,115

 

 

 

15,858

 

 

 

15,768

 

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%

 

$

21,421

 

 

 

22,218

 

 

 

22,444

 

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

 

 

 

24,860

 

 

 

24,927

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

3,111

 

 

 

3,394

 

 

 

 

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

 

 

 

17,234

 

 

 

17,340

 

Immune Pharmaceuticals(10)(14B)

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

3,692

 

 

 

3,725

 

 

 

2,224

 

Insmed, Incorporated(10)(14A)

 

 

Drug Discovery & Development

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 4.75%

or Floor rate of 9.25%

 

$

35,000

 

 

 

34,681

 

 

 

34,681

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 8.95%

 

$

13,706

 

 

 

13,766

 

 

 

13,818

 

Melinta Therapeutics(12)(14A)

 

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 3.75%

or Floor rate of 8.25%

 

$

27,283

 

 

 

27,630

 

 

 

27,539

 

Merrimack Pharmaceuticals, Inc.(9)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate FIXED 11.50%

 

$

25,000

 

 

 

25,000

 

 

 

25,250

 

Metuchen Pharmaceuticals LLC(13)(14A)

 

 

Drug Discovery & Development

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%,

PIK Interest 1.35%

 

$

35,000

 

 

 

34,339

 

 

 

34,339

 

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

 

 

 

20,028

 

 

 

20,113

 

PhaseRx,Inc.(14B)(15)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

6,000

 

 

 

5,866

 

 

 

5,866

 

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

 

 

 

20,024

 

 

 

20,016

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 2.15%

or Floor rate of 9.40%

 

$

18,214

 

 

 

18,660

 

 

 

18,531

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

342,135

 

 

 

337,820

 

Subtotal: Drug Discovery & Development (45.95%)*

 

 

 

 

 

 

 

 

 

 

 

 

350,615

 

 

 

346,300

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)

 

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

 

 

$

7,047

 

 

$

7,047

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,047

 

 

 

7,047

 

Subtotal: Electronics & Computer Hardware (0.94%)*

 

 

 

 

 

 

 

 

 

 

 

 

7,047

 

 

 

7,047

 

 

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

 

 

 

10,276

 

 

 

10,300

 

PH Group Holdings

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,783

 

 

 

19,783

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

30,059

 

 

 

30,083

 

Subtotal: Healthcare Services, Other (3.99%)*

 

 

 

 

 

 

 

 

 

 

 

 

30,059

 

 

 

30,083

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

$

2,051

 

 

 

2,033

 

 

 

1,717

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 5.20%

or Floor rate of 8.95%,

PIK Interest 1.95%

 

$

18,373

 

 

 

18,191

 

 

 

15,363

 

Total Aria Systems, Inc.

 

 

 

 

 

 

 

 

 

 

$

20,424

 

 

 

20,224

 

 

 

17,080

 

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

 

 

 

5,034

 

 

 

5,060

 

LogicSource(14B)(15)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%

 

$

8,500

 

 

 

8,477

 

 

 

8,538

 

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%

 

$

4,895

 

 

 

4,599

 

 

 

4,599

 

Snagajob.com, Inc.(12)(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%

 

$

35,120

 

 

 

34,219

 

 

 

34,218

 

Tectura Corporation(7)(8)(13)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%,

PIK Interest 3.00%

 

$

19,542

 

 

 

19,542

 

 

 

19,542

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

11,015

 

 

 

240

 

 

 

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

 

$

30,557

 

 

 

19,782

 

 

 

19,542

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

92,335

 

 

 

89,037

 

Subtotal: Internet Consumer & Business Services (11.82%)*

 

 

 

 

 

 

 

 

 

 

 

 

92,335

 

 

 

89,037

 

 

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%

 

$

103,002

 

 

 

101,422

 

 

 

101,654

 

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

 

 

 

5,000

 

 

 

5,043

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

106,422

 

 

 

106,697

 

Subtotal: Media/Content/Info (14.16%)*

 

 

 

 

 

 

 

 

 

 

 

 

106,422

 

 

 

106,697

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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%

 

$

3,301

 

 

$

3,786

 

 

$

3,786

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,786

 

 

 

3,786

 

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%

 

$

8,981

 

 

 

10,257

 

 

 

10,214

 

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

 

 

Medical Devices & Equipment

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%

 

$

5,947

 

 

 

5,978

 

 

 

5,957

 

Avedro, Inc.(14A)(15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

11,272

 

 

 

11,386

 

 

 

11,377

 

Flowonix Medical Incorporated(12)(14B)

 

 

Medical Devices & Equipment

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

12,307

 

 

 

12,651

 

 

 

12,644

 

 

 

 

Medical Devices & Equipment

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 6.50%

or Floor rate of 10.00%

 

$

4,707

 

 

 

4,617

 

 

 

4,617

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

 

 

 

 

$

17,014

 

 

 

17,268

 

 

 

17,261

 

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

 

 

 

2,621

 

 

 

2,609

 

IntegenX, Inc.(14B)(15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.05%

or Floor rate of 10.05%

 

$

12,500

 

 

 

12,464

 

 

 

12,464

 

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

 

 

 

8,400

 

 

 

8,449

 

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

 

 

 

12,479

 

 

 

12,456

 

Quanterix Corporation(10)(14A)

 

 

Medical Devices & Equipment

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%

 

$

11,327

 

 

 

11,566

 

 

 

11,618

 

SynergEyes, Inc.(14B)(15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

2,847

 

 

 

3,228

 

 

 

3,178

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

95,647

 

 

 

95,583

 

Subtotal: Medical Devices & Equipment (13.19%)*

 

 

 

 

 

 

 

 

 

 

 

 

99,433

 

 

 

99,369

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(14B)(15)

 

 

Semiconductors

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 8.25%

or Floor rate of 11.50%

 

$

3,812

 

 

 

3,978

 

 

 

3,949

 

Avnera Corporation(10)(14A)

 

 

Semiconductors

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 5.25%

or Floor rate of 8.50%

 

$

6,550

 

 

 

6,637

 

 

 

6,745

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,615

 

 

 

10,694

 

Subtotal: Semiconductors (1.42%)*

 

 

 

 

 

 

 

 

 

 

 

 

10,615

 

 

 

10,694

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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.)(7)(13)(14C)(15)

 

 

Software

 

Senior Secured

 

November 2016

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

1,566

 

 

$

1,698

 

 

$

826

 

RedSeal Inc.(15)(17)

 

 

Software

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 3.25%

or Floor rate of 6.50%

 

$

2,635

 

 

 

2,635

 

 

 

2,635

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,333

 

 

 

3,461

 

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%

 

$

30,786

 

 

 

30,625

 

 

 

30,598

 

 

 

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.75%,

PIK Interest 2.50%

 

$

10,107

 

 

 

9,787

 

 

 

9,870

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

 

 

$

40,893

 

 

 

40,412

 

 

 

40,468

 

Clickfox, Inc.(14C)

 

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.50%

 

$

12,000

 

 

 

11,979

 

 

 

11,979

 

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

 

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

10,877

 

 

 

11,241

 

 

 

11,228

 

 

 

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

5,000

 

 

 

5,029

 

 

 

5,029

 

Total Druva, Inc.

 

 

 

 

 

 

 

 

 

 

$

15,877

 

 

 

16,270

 

 

 

16,257

 

Evernote Corporation(15)(17)

 

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

6,000

 

 

 

5,958

 

 

 

5,958

 

JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.)(7)(13)(14A)(15)

 

 

Software

 

Senior Secured

 

March 2018

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

13,000

 

 

 

12,747

 

 

 

6,198

 

Mattersight Corporation(13)

 

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%,

PIK Interest 2.15%

 

$

22,542

 

 

 

21,835

 

 

 

21,835

 

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

 

 

Software

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

17,500

 

 

 

17,101

 

 

 

17,129

 

OneLogin, Inc.(13)(15)

 

 

Software

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%,

PIK Interest 3.25%

 

$

13,251

 

 

 

13,119

 

 

 

13,257

 

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%

 

$

8,070

 

 

 

8,044

 

 

 

8,044

 

RedSeal Inc.(14A)(15)(17)

 

 

Software

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

5,000

 

 

 

5,095

 

 

 

5,058

 

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%

 

$

15,170

 

 

 

14,882

 

 

 

14,961

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

167,442

 

 

 

161,144

 

Subtotal: Software (21.84%)*

 

 

 

 

 

 

 

 

 

 

 

 

171,775

 

 

 

164,605

 

 

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

 

 

 

34,667

 

 

 

34,714

 

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

 

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2018

 

Interest rate PRIME + 5.65%

or Floor rate of 9.90%

 

$

3,989

 

 

 

4,242

 

 

 

4,166

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

38,909

 

 

 

38,880

 

Subtotal: Specialty Pharmaceuticals (5.16%)*

 

 

 

 

 

 

 

 

 

 

 

 

38,909

 

 

 

38,880

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmedics, Inc.(12)(14B)

 

 

Surgical Devices

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 5.30%

or Floor rate of 9.55%

 

$

8,500

 

 

 

8,437

 

 

 

8,461

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,437

 

 

 

8,461

 

Subtotal: Surgical Devices (1.12%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,437

 

 

 

8,461

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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%

 

$

2,592

 

 

$

2,881

 

 

$

2,881

 

American Superconductor Corporation(10)(14B)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

667

 

 

 

1,166

 

 

 

1,166

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

1,500

 

 

 

1,536

 

 

 

1,536

 

Total American Superconductor Corporation

 

 

 

 

 

 

 

$

2,167

 

 

 

2,702

 

 

 

2,702

 

Modumetal, Inc.(11)(14D)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 8.70%

or Floor rate of 11.95%

 

$

738

 

 

 

1,217

 

 

 

1,217

 

Stion Corporation(5)(14A)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

821

 

 

 

821

 

 

 

821

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,621

 

 

 

7,621

 

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%

 

$

20,000

 

 

 

20,278

 

 

 

20,434

 

Modumetal, Inc.(11)(14C)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

4,326

 

 

 

4,933

 

 

 

4,870

 

Plug Power, Inc.(9)(12)(14B)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 10.45%

 

$

25,000

 

 

 

24,916

 

 

 

24,916

 

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

 

 

 

30,470

 

 

 

30,714

 

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

 

 

 

7,539

 

 

 

7,562

 

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

 

 

 

38,743

 

 

 

38,811

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

20,000

 

 

 

20,000

 

 

 

20,118

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

 

 

$

55,000

 

 

 

58,743

 

 

 

58,929

 

Tendril Networks(11)(14B)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate FIXED 7.25%

 

$

15,000

 

 

 

15,241

 

 

 

15,134

 

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

 

 

 

14,928

 

 

 

14,877

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

177,048

 

 

 

177,436

 

Subtotal: Sustainable and Renewable Technology (24.56%)*

 

 

 

 

 

 

 

 

 

 

 

 

184,669

 

 

 

185,057

 

Total Debt Investments (162.44%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,275,881

 

 

 

1,224,121

 

 

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

606

 

Subtotal: Biotechnology Tools (0.08%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

606

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Communications & Networking

 

Equity

 

Common Stock

 

 

10,000

 

 

 

4,000

 

 

 

4,000

 

GlowPoint, Inc.(3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

102

 

 

 

32

 

Peerless Network, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

4,584

 

Subtotal: Communications & Networking (1.14%)*

 

 

 

 

 

 

 

 

 

 

5,102

 

 

 

8,616

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

480,261

 

 

 

 

 

 

252

 

 

 

Consumer & Business Products

 

Equity

 

Preferred Series B-1

 

 

187,970

 

 

 

500

 

 

 

263

 

Total Market Force Information, Inc.

 

 

 

 

 

 

 

 

668,231

 

 

 

500

 

 

 

515

 

Subtotal: Consumer & Business Products (0.07%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

515

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

551

 

Subtotal: Diagnostic (0.07%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

551

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

211

 

BioQ Pharma Incorporated(15)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

740

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

161,856

 

 

 

1,000

 

 

 

1,685

 

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

 

 

 

823

 

Revance Therapeutics, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

22,765

 

 

 

557

 

 

 

369

 

Subtotal: Drug Delivery (0.51%)*

 

 

 

 

 

 

 

 

 

 

3,674

 

 

 

3,828

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

426,931

 

 

 

1,060

 

 

 

367

 

Cerecor, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

504

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

135,501

 

 

 

1,000

 

 

 

142

 

Dicerna Pharmaceuticals, Inc.(3)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

840

 

Dynavax Technologies(3)(9)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

210

 

Epirus Biopharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

200,000

 

 

 

1,000

 

 

 

 

Genocea Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

1,144

 

Inotek Pharmaceuticals Corporation(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

3,778

 

 

 

1,500

 

 

 

36

 

Insmed, Incorporated(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

1,028

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Equity

 

Preferred Series 4

 

 

1,914,448

 

 

 

2,000

 

 

 

2,164

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,743

 

 

 

993

 

Subtotal: Drug Discovery & Development (0.99%)*

 

 

 

 

 

 

 

 

 

 

14,853

 

 

 

7,428

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc.(3)

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

14

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

14

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(15)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

199

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

230,030

 

 

 

250

 

 

 

278

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

264

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

542

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

373

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

244

 

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

 

 

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

617

 

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

 

 

 

41

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series BB

 

 

1,000,000

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

1,283

 

 

 

1,399

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

119

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

221,893

 

 

 

1,500

 

 

 

1,618

 

Gelesis, Inc.(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

894

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

954

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

909

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,757

 

Medrobotics Corporation(15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

245

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

198

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

536

 

Total Medrobotics Corporation

 

 

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

979

 

Optiscan Biomedical, Corp.(5)(15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

320

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

93

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

3,465

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

11,508,204

 

 

 

963

 

 

 

1,056

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

 

 

74,725,003

 

 

 

9,875

 

 

 

4,934

 

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

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

610

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

272,479

 

 

 

1,000

 

 

 

1,106

 

Subtotal: Medical Devices & Equipment (1.61%)*

 

 

 

 

 

 

 

 

 

 

14,998

 

 

 

12,123

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Box, Inc.(3)(15)

 

Software

 

Equity

 

Common Stock

 

 

647,200

 

 

 

4,775

 

 

 

9,980

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

87

 

Druva, Inc.

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,001

 

 

 

1,338

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

1,590

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

80,587

 

 

 

131

 

 

 

405

 

Total ForeScout Technologies, Inc.

 

 

 

 

 

 

 

 

399,686

 

 

 

529

 

 

 

1,995

 

HighRoads, Inc.

 

Software

 

Equity

 

Preferred Series B

 

 

190,170

 

 

 

307

 

 

 

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

1,124

 

Nuance Communications, Inc.(3)(15)

 

Software

 

Equity

 

Common Stock

 

 

91,027

 

 

 

546

 

 

 

1,068

 

Palantir Technologies

 

Software

 

Equity

 

Preferred Series E

 

 

727,696

 

 

 

5,431

 

 

 

5,431

 

WildTangent, Inc.(15)

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

169

 

Subtotal: Software (2.81%)*

 

 

 

 

 

 

 

 

 

 

14,005

 

 

 

21,192

 

 

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

 

 

 

45

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

66

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

694

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

483

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

5,653,360

 

 

 

1,673

 

 

 

1,288

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

405

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

309

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

1,018

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

550

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

2,282

 

Subtotal: Surgical Devices (0.47%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

3,570

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glori Energy, Inc.(3)

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

18,208

 

 

 

165

 

 

 

2

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series C

 

 

3,107,520

 

 

 

500

 

 

 

498

 

Flywheel Building Intelligence, Inc. (p.k.a. 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

 

 

 

6,750

 

TPI Composites, Inc.(3)

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

78,018

 

 

 

273

 

 

 

1,659

 

Subtotal: Sustainable and Renewable Technology (1.18%)*

 

 

 

 

 

 

 

 

 

 

8,449

 

 

 

8,909

 

Subtotal: Equity

 

 

 

 

 

 

 

 

 

 

69,121

 

 

 

68,751

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

176

 

Labcyte, Inc.(15)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

 

323

 

 

 

450

 

Subtotal: Biotechnology Tools (0.08%)*

 

 

 

 

 

 

 

 

 

 

430

 

 

 

626

 

 

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

 

 

 

13

 

Peerless Network, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

367

 

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

 

 

 

15

 

Subtotal: Communications & Networking (0.05%)*

 

 

 

 

 

 

 

 

 

 

1,219

 

 

 

395

 

 

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

 

 

 

378

 

IronPlanet, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series D

 

 

1,155,821

 

 

 

1,076

 

 

 

6,220

 

Nasty Gal(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

845,194

 

 

 

23

 

 

 

 

The Neat Company(15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

 

Subtotal: Consumer & Business Products (0.88%)*

 

 

 

 

 

 

 

 

 

 

1,922

 

 

 

6,598

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Diagnostic

 

Warrant

 

Common Stock

 

 

333,333

 

 

 

244

 

 

 

30

 

Subtotal: Diagnostic (0.00%)*

 

 

 

 

 

 

 

 

 

 

244

 

 

 

30

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

785

 

 

 

219

 

Agile Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

419

 

Aprecia Pharmaceuticals Company

 

Drug Delivery

 

Warrant

 

Preferred Series A-1

 

 

735,981

 

 

 

366

 

 

 

301

 

BIND Therapeutics, Inc.(3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

152,586

 

 

 

488

 

 

 

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

668

 

Celsion Corporation(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

2

 

Dance Biopharm, Inc.(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

Edge Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

78,595

 

 

 

390

 

 

 

292

 

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

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

413

 

Neos Therapeutics, Inc.(3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

27

 

Pulmatrix Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

25,150

 

 

 

116

 

 

 

2

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

72,379

 

 

 

266

 

 

 

 

Subtotal: Drug Delivery (0.31%)*

 

 

 

 

 

 

 

 

 

 

4,523

 

 

 

2,343

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

107

 

Anthera Pharmaceuticals, Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

Auris Medical Holding, AG(3)(4)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

156,726

 

 

 

249

 

 

 

99

 

Aveo Pharmaceuticals, Inc.(3)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

2,069,880

 

 

 

396

 

 

 

418

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

72

 

Cerecor, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

12

 

Cerulean Pharma, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,901

 

 

 

369

 

 

 

33

 

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

 

 

 

 

Concert Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

70,796

 

 

 

367

 

 

 

48

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

292,398

 

 

 

165

 

 

 

6

 

CytRx Corporation(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

634,146

 

 

 

416

 

 

 

149

 

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

 

 

 

13

 

Genocea Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,725

 

 

 

266

 

 

 

108

 

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

 

 

 

114

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Warrant

 

Preferred Series 3

 

 

1,382,323

 

 

 

626

 

 

 

211

 

Nanotherapeutics, Inc.(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

949

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

46,838

 

 

 

266

 

 

 

22

 

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

 

 

 

14

 

PhaseRx,Inc.(3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

63,000

 

 

 

125

 

 

 

39

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

24

 

XOMA Corporation(3)(9)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

181,268

 

 

 

279

 

 

 

22

 

Subtotal: Drug Discovery & Development (0.33%)

 

 

 

 

 

 

 

 

 

 

7,575

 

 

 

2,462

 

 

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

 

 

 

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

52

 

 

 

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation(3)(9)(15)

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

115

 

Subtotal: Healthcare Services, Other (0.02%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

115

 

 

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

 

 

 

2

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

1,165,183

 

 

 

74

 

 

 

 

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

September 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

 

 

$

 

Blurb, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

95

 

CashStar, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

19

 

CloudOne, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

30

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

1,166

 

Lightspeed POS, Inc.(4)(9)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

75

 

LogicSource(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

65

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

135

 

Prism Education Group, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

200,000

 

 

 

43

 

 

 

 

ShareThis, Inc.(15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

1

 

Snagajob.com, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

1,575,000

 

 

 

640

 

 

 

716

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

177

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B-1

 

 

253,378

 

 

 

51

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.33%)*

 

 

 

 

 

 

 

 

 

 

3,685

 

 

 

2,479

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.(16)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

1,552,710

 

 

 

1,958

 

 

 

2,793

 

Rhapsody International, Inc.(15)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

385

 

 

 

101

 

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

 

 

 

348

 

 

 

11

 

Subtotal: Media/Content/Info (0.39%)*

 

 

 

 

 

 

 

 

 

 

2,692

 

 

 

2,906

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(3)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

103,225

 

 

 

459

 

 

 

32

 

Aspire Bariatrics, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

395,000

 

 

 

455

 

 

 

262

 

Avedro, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

300,000

 

 

 

401

 

 

 

241

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

155,325

 

 

 

362

 

 

 

430

 

Gamma Medica, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

450,956

 

 

 

170

 

 

 

239

 

Gelesis, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

219

 

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

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

984,111

 

 

 

242

 

 

 

14

 

IntegenX, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

547,752

 

 

 

15

 

 

 

29

 

Medrobotics Corporation(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

375

 

Micell Technologies, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

371

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

2,568

 

 

 

408

 

 

 

39

 

NinePoint Medical, Inc.(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

82

 

Optiscan Biomedical, Corp.(5)(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

10,535,275

 

 

 

1,252

 

 

 

168

 

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

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

429

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

173,428

 

 

 

180

 

 

 

135

 

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

 

 

 

31

 

Subtotal: Medical Devices & Equipment (0.41%)*

 

 

 

 

 

 

 

 

 

 

6,149

 

 

 

3,096

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation(15)

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

62

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-1

 

 

500,000

 

 

 

7

 

 

 

17

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

 

 

860,000

 

 

 

167

 

 

 

79

 

Aquantia Corp.

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

196,831

 

 

 

4

 

 

 

70

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

141,567

 

 

 

46

 

 

 

82

 

Subtotal: Semiconductors (0.03%)*

 

 

 

 

 

 

 

 

 

 

217

 

 

 

231

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

137

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

76

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

213

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation(15)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

524

 

Clickfox, Inc.(15)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

67

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

81

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

230

 

 

 

144

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

3,848,796

 

 

 

1,290

 

 

 

292

 

Evernote Corporation(15)

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

106

 

Hillcrest Laboratories, Inc.(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

1,865,650

 

 

 

55

 

 

 

136

 

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

 

Software

 

Warrant

 

Preferred Series E

 

 

614,333

 

 

 

16

 

 

 

 

Mattersight Corporation(3)

 

Software

 

Warrant

 

Common Stock

 

 

357,143

 

 

 

538

 

 

 

490

 

Message Systems, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

245

 

Mobile Posse, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

91

 

Neos, Inc.(15)

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

100

 

NewVoiceMedia Limited(4)(9)

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

79

 

OneLogin, Inc.(15)

 

Software

 

Warrant

 

Common Stock

 

 

228,972

 

 

 

150

 

 

 

241

 

Poplicus, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

2,595,230

 

 

 

 

 

 

81

 

Quid, Inc.(15)

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

4

 

Signpost, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

276

 

Soasta, Inc.(15)

 

Software

 

Warrant

 

Preferred Series E

 

 

410,800

 

 

 

691

 

 

 

250

 

Sonian, Inc.(15)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

61

 

Subtotal: Software (0.42%)*

 

 

 

 

 

 

 

 

 

 

4,824

 

 

 

3,189

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

1,258,993

 

 

 

728

 

 

 

586

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Warrant

 

Preferred Series E

 

 

155,324

 

 

 

308

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.08%)*

 

 

 

 

 

 

 

 

 

 

1,036

 

 

 

586

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(15)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

75

 

 

 

16

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

268

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

1,756,445

 

 

 

395

 

 

 

284

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

225

 

 

 

10

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

439

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

50,544

 

 

 

38

 

 

 

52

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

265,980

 

 

 

363

 

 

 

501

 

Subtotal: Surgical Devices (0.10%)*

 

 

 

 

 

 

 

 

 

 

758

 

 

 

785

 

 

See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

124

 

Alphabet Energy, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

86,329

 

 

 

82

 

 

 

 

American Superconductor Corporation(3)

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

58,823

 

 

 

39

 

 

 

85

 

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

 

 

 

74

 

Fluidic, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

47

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

213

 

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

 

 

 

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 4

 

 

477,517

 

 

 

41

 

 

 

307

 

Rive Technology, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

12

 

 

 

4

 

Flywheel Building Intelligence, Inc. (p.k.a. 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

 

 

 

 

Beamreach Solar (p.k.a. Solexel, Inc.)(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

704

 

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

 

 

 

5

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

32,472,222

 

 

 

902

 

 

 

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

52,472,222

 

 

 

1,445

 

 

 

5

 

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

 

 

 

230

 

Trilliant, Inc.(15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

162

 

 

 

102

 

Subtotal: Sustainable and Renewable Technology (0.25%)*

 

 

 

 

 

 

 

 

 

 

7,348

 

 

 

1,895

 

Total: Warrant Investments (3.68%)*

 

 

 

 

 

 

 

 

 

 

43,241

 

 

 

27,738

 

Total Investments (175.24%)*

 

 

 

 

 

 

 

 

 

$

1,388,244

 

 

$

1,320,610

 

 

*

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 $28.1 million, $96.1 million and $68.0 million respectively. The tax cost of investments is $1.4 billion.

(3)

Except for warrants in 39 publicly traded companies and common stock in 22 publicly traded companies, all investments are restricted at September 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 September 30, 2016, and is therefore considered non-income producing. Note that at September 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 September 30, 2016.

(17)

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

 


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