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 March 31, 2017

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”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

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

 

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

On May 1, 2017, there were 82,784,765 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statement of Assets and Liabilities as of March 31, 2017 and December 31, 2016 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three months ended March 31, 2017 and 2016 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the three months ended March 31, 2017 and 2016 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the three months ended March 31, 2017 and 2016 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of March 31, 2017 (unaudited)

  

8

 

 

 

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

  

21

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

35

Item 2.

 

 

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

  

66

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

93

Item 4.

 

 

Controls and Procedures

  

94

 

PART II. OTHER INFORMATION

  

95

 

Item 1.

 

Legal Proceedings

  

95

Item 1A.

 

 

Risk Factors

 

95

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

96

Item 3.

 

 

Defaults Upon Senior Securities

  

96

Item 4.

 

 

Mine Safety Disclosures

  

96

Item 5.

 

 

Other Information

  

96

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

97

 

SIGNATURES

  

99

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

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

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

 

 

March 31, 2017

 

 

December 31, 2016

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $1,469,449 and $1,475,918 respectively)

 

$

1,376,181

 

 

$

1,414,210

 

Control investments (cost of $42,751 and $22,598, respectively)

 

 

24,775

 

 

 

4,700

 

Affiliate investments (cost of $12,850 and $13,010, respectively)

 

 

5,311

 

 

 

5,032

 

Total investments, at value (cost of $1,525,050 and $1,511,526 respectively)

 

 

1,406,267

 

 

 

1,423,942

 

Cash and cash equivalents

 

 

148,140

 

 

 

13,044

 

Restricted cash

 

 

12,924

 

 

 

8,322

 

Interest receivable

 

 

11,484

 

 

 

11,614

 

Other assets

 

 

7,433

 

 

 

7,282

 

Total assets

 

$

1,586,248

 

 

$

1,464,204

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

16,513

 

 

$

21,463

 

Credit Facilities

 

 

 

 

 

5,016

 

2021 Asset-Backed Notes, net (principal of $101,411 and $109,205, respectively) (1)

 

 

100,388

 

 

 

107,972

 

Convertible Notes, net (principal of $230,000 and $0, respectively) (1)

 

 

222,542

 

 

 

 

2019 Notes, net (principal of $0 and $110,364, respectively) (1)

 

 

 

 

 

108,818

 

2024 Notes, net (principal of $258,510 and $252,873, respectively) (1)

 

 

251,240

 

 

 

245,490

 

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

 

 

187,669

 

 

 

187,501

 

Total liabilities

 

$

778,352

 

 

$

676,260

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

83

 

 

 

80

 

Capital in excess of par value

 

 

890,861

 

 

 

839,657

 

Unrealized depreciation on investments (2)

 

 

(120,528

)

 

 

(89,025

)

Accumulated undistributed realized gains on investments

 

 

40,840

 

 

 

37,603

 

Distributions in excess of net investment income

 

 

(3,360

)

 

 

(371

)

Total net assets

 

$

807,896

 

 

$

787,944

 

Total liabilities and net assets

 

$

1,586,248

 

 

$

1,464,204

 

 

 

 

 

 

 

 

 

 

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

 

 

82,801

 

 

 

79,555

 

Net asset value per share

 

$

9.76

 

 

$

9.90

 

 

(1)

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

(2)

Amounts include $1.7 million and $1.4 million in net unrealized depreciation on other assets and accrued liabilities, including escrow receivables, estimated taxes payable and warrant participation agreement liabilities as of March 31, 2017 and December 31, 2016, respectively.

 

See notes to consolidated financial statements.

3


 

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

 

(Dollars in thousands)

 

March 31, 2017

 

 

December 31, 2016

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

12,924

 

 

$

8,322

 

Total investments, at value (cost of $214,519 and $244,695, respectively)

 

 

213,437

 

 

 

242,349

 

Total assets

 

$

226,361

 

 

$

250,671

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2021 Asset-Backed Notes, net (principal of $101,411 and $109,205, respectively) (1)

 

$

100,388

 

 

$

107,972

 

Total liabilities

 

$

100,388

 

 

$

107,972

 

 

(1)

The Company’s 2021 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 4 – Borrowings”.

See notes to consolidated financial statements.

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

 

Three Months Ended March 31,

 

 

2017

 

 

2016

 

Investment income:

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

42,345

 

 

$

36,409

 

Control investments

 

514

 

 

 

 

Affiliate investments

 

2

 

 

 

65

 

Total interest income

 

42,861

 

 

 

36,474

 

Fees

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

3,499

 

 

 

2,465

 

Control investments

 

5

 

 

 

 

Total fees

 

3,504

 

 

 

2,465

 

Total investment income

 

46,365

 

 

 

38,939

 

Operating expenses:

 

 

 

 

 

 

 

Interest

 

9,607

 

 

 

7,018

 

Loan fees

 

2,838

 

 

 

988

 

General and administrative

 

4,064

 

 

 

3,580

 

Employee compensation:

 

 

 

 

 

 

 

Compensation and benefits

 

5,345

 

 

 

4,685

 

Stock-based compensation

 

1,833

 

 

 

2,571

 

Total employee compensation

 

7,178

 

 

 

7,256

 

Total operating expenses

 

23,687

 

 

 

18,842

 

Net investment income

 

22,678

 

 

 

20,097

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

3,288

 

 

 

(4,468

)

Control investments

 

(51

)

 

 

 

Total net realized gain (loss) on investments

 

3,237

 

 

 

(4,468

)

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(32,155

)

 

 

(1,460

)

Control investments

 

213

 

 

 

 

Affiliate investments

 

439

 

 

 

126

 

Total net unrealized depreciation on investments

 

(31,503

)

 

 

(1,334

)

Total net realized and unrealized loss

 

(28,266

)

 

 

(5,802

)

Net increase (decrease) in net assets resulting from operations

$

(5,588

)

 

$

14,295

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

$

0.28

 

 

$

0.28

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

Basic

$

(0.07

)

 

$

0.20

 

Diluted

$

(0.07

)

 

$

0.20

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

81,420

 

 

 

71,172

 

Diluted

 

81,420

 

 

 

71,199

 

Distributions declared per common share:

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

See notes to consolidated financial statements.

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Income/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Undistributed

 

 

(Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Appreciation

 

 

Realized

 

 

in Excess of

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

(Depreciation)

 

 

Gains (Losses)

 

 

Investment

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

on Investments

 

 

on Investments

 

 

Income)

 

 

Assets

 

Balance at December 31, 2015

 

72,118

 

 

$

73

 

 

$

751,902

 

 

$

(52,808

)

 

$

27,993

 

 

$

(10,026

)

 

$

717,134

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(1,334

)

 

 

(4,468

)

 

 

20,097

 

 

 

14,295

 

Public offering, net of offering expenses

 

1,109

 

 

 

1

 

 

 

12,403

 

 

 

 

 

 

 

 

 

 

 

 

12,404

 

Acquisition of common stock under repurchase plan

 

(449

)

 

 

 

 

 

(4,789

)

 

 

 

 

 

 

 

 

 

 

 

(4,789

)

Issuance of common stock under restricted stock plan

 

538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(129

)

 

 

 

 

 

(1,385

)

 

 

 

 

 

 

 

 

 

 

 

(1,385

)

Distributions reinvested in common stock

 

43

 

 

 

 

 

 

496

 

 

 

 

 

 

 

 

 

 

 

 

496

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,371

)

 

 

(22,371

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,596

 

 

 

 

 

 

 

 

 

 

 

 

2,596

 

Balance at March 31, 2016

 

73,230

 

 

$

74

 

 

$

761,223

 

 

$

(54,142

)

 

$

23,525

 

 

$

(12,300

)

 

$

718,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

 

79,555

 

 

$

80

 

 

$

839,657

 

 

$

(89,025

)

 

$

37,603

 

 

$

(371

)

 

$

787,944

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(31,503

)

 

 

3,237

 

 

 

22,678

 

 

 

(5,588

)

Public offering, net of offering expenses

 

3,309

 

 

 

3

 

 

 

46,945

 

 

 

 

 

 

 

 

 

 

 

 

46,948

 

Issuance of common stock due to stock option exercises

 

24

 

 

 

 

 

 

181

 

 

 

 

 

 

 

 

 

 

 

 

181

 

Retired shares from net issuance

 

(16

)

 

 

 

 

 

(140

)

 

 

 

 

 

 

 

 

 

 

 

(140

)

Issuance of common stock under restricted stock plan

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(101

)

 

 

 

 

 

(1,433

)

 

 

 

 

 

 

 

 

 

 

 

(1,433

)

Distributions reinvested in common stock

 

26

 

 

 

 

 

 

388

 

 

 

 

 

 

 

 

 

 

 

 

388

 

Issuance of Convertible Notes

 

 

 

 

 

 

 

3,413

 

 

 

 

 

 

 

 

 

 

 

 

3,413

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,667

)

 

 

(25,667

)

Stock-based compensation (1)

 

 

 

 

 

 

 

1,850

 

 

 

 

 

 

 

 

 

 

 

 

1,850

 

Balance at March 31, 2017

 

82,801

 

 

$

83

 

 

$

890,861

 

 

$

(120,528

)

 

$

40,840

 

 

$

(3,360

)

 

$

807,896

 

 

(1)

Stock-based compensation includes $17 and $25 of restricted stock and option expense related to director compensation for the three months ended March 31, 2017 and 2016, respectively.

 

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Three Months Ended March 31,

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

(5,588

)

 

$

14,295

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(153,665

)

 

 

(170,921

)

Principal and fee payments received on investments

 

141,798

 

 

 

77,808

 

Proceeds from the sale of investments

 

11,995

 

 

 

4,636

 

Net unrealized depreciation on investments

 

31,503

 

 

 

1,334

 

Net realized loss (gain) on investments

 

(3,237

)

 

 

4,468

 

Accretion of paid-in-kind principal

 

(2,199

)

 

 

(1,535

)

Accretion of loan discounts

 

(1,924

)

 

 

(1,863

)

Accretion of loan discount on Convertible Notes

 

112

 

 

 

61

 

Accretion of loan exit fees

 

(6,574

)

 

 

(5,231

)

Change in deferred loan origination revenue

 

284

 

 

 

655

 

Unearned fees related to unfunded commitments

 

976

 

 

 

(87

)

Amortization of debt fees and issuance costs

 

2,508

 

 

 

785

 

Depreciation

 

52

 

 

 

56

 

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

 

1,850

 

 

 

2,596

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

130

 

 

 

(1,753

)

Prepaid expenses and other assets

 

(1,061

)

 

 

(2,540

)

Accounts payable

 

1

 

 

 

(88

)

Accrued liabilities

 

(5,255

)

 

 

(5,029

)

Net cash provided by (used in) operating activities

 

11,706

 

 

 

(82,353

)

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(39

)

 

 

(127

)

Reduction of (increase in) restricted cash

 

(4,602

)

 

 

5,545

 

Net cash (used in) provided by investing activities

 

(4,641

)

 

 

5,418

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

46,948

 

 

 

12,404

 

Repurchase of common stock, net

 

 

 

 

(4,789

)

Retirement of employee shares

 

(1,392

)

 

 

(1,385

)

Distributions paid

 

(25,279

)

 

 

(21,875

)

Issuance of Convertible Notes

 

230,000

 

 

 

 

Issuance of 2024 Notes Payable

 

5,637

 

 

 

 

Repayments of 2019 Notes Payable

 

(110,365

)

 

 

 

Repayments of 2021 Asset-Backed Notes

 

(7,794

)

 

 

 

Borrowings of credit facilities

 

8,497

 

 

 

106,666

 

Repayments of credit facilities

 

(13,513

)

 

 

(95,663

)

Cash paid for debt issuance costs

 

(4,456

)

 

 

 

Fees paid for credit facilities and debentures

 

(252

)

 

 

(141

)

Net cash provided by (used in) financing activities

 

128,031

 

 

 

(4,783

)

Net increase (decrease) in cash and cash equivalents

 

135,096

 

 

 

(81,718

)

Cash and cash equivalents at beginning of period

 

13,044

 

 

 

95,196

 

Cash and cash equivalents at end of period

$

148,140

 

 

$

13,478

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Distributions reinvested

 

388

 

 

 

496

 

 

(1)

Stock-based compensation includes $17 and $25 of restricted stock and option expense related to director compensation for the three months ended March 31, 2017 and 2016, respectively.

 

See notes to consolidated financial statements.

7


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

$

6,008

 

 

$

6,089

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,008

 

 

 

6,089

 

Subtotal: Biotechnology Tools (0.75%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,008

 

 

 

6,089

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Communications & Networking

 

Senior Secured

 

August 2017

 

PIK Interest 10.50%

 

$

1,312

 

 

 

1,378

 

 

 

1,378

 

OpenPeak, Inc. (7)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,211

 

 

 

8,975

 

 

 

 

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

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate FIXED 10.95%,

PIK Interest 5.00%

 

$

16,758

 

 

 

16,900

 

 

 

2,103

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

27,253

 

 

 

3,481

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

3,063

 

 

 

3,069

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,063

 

 

 

3,069

 

Subtotal: Communications & Networking (0.81%)*

 

 

 

 

 

 

 

 

 

 

 

 

30,316

 

 

 

6,550

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation) (14A)(15)

 

Consumer & Business Products

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,911

 

 

 

20,130

 

 

 

Consumer & Business Products

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

1,000

 

 

 

1,000

 

 

 

1,000

 

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

 

 

 

 

 

 

 

$

21,000

 

 

 

20,911

 

 

 

21,130

 

Second Time Around (Simplify Holdings, LLC) (7)(14A)(15)

 

Consumer & Business Products

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%

 

$

2,069

 

 

 

2,104

 

 

 

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

23,015

 

 

 

21,130

 

Subtotal: Consumer & Business Products (2.62%)*

 

 

 

 

 

 

 

 

 

 

 

 

23,015

 

 

 

21,130

 

 

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%

 

$

1,140

 

 

 

1,485

 

 

 

1,485

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,485

 

 

 

1,485

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Delivery

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 6.05%

or Floor rate of 9.55%

 

$

20,466

 

 

 

21,075

 

 

 

21,139

 

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

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

15,507

 

 

 

15,638

 

 

 

15,544

 

Aprecia Pharmaceuticals Company (11)(14A)

 

Drug Delivery

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

15,000

 

 

 

15,107

 

 

 

15,071

 

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

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

7,304

 

 

 

7,754

 

 

 

7,713

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.25%

 

$

2,184

 

 

 

2,249

 

 

 

2,249

 

Total BioQ Pharma Incorporated

 

 

 

 

 

 

 

$

9,488

 

 

 

10,003

 

 

 

9,962

 

Edge Therapeutics, Inc. (11)(14A)(17)

 

Drug Delivery

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.65%

or Floor rate of 9.15%

 

$

15,000

 

 

 

15,083

 

 

 

15,152

 

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

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

5,302

 

 

 

5,410

 

 

 

5,427

 

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%

 

$

10,712

 

 

 

10,969

 

 

 

10,952

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

93,285

 

 

 

93,247

 

Subtotal: Drug Delivery (11.73%)*

 

 

 

 

 

 

 

 

 

 

 

 

94,770

 

 

 

94,732

 

 

 

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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%

 

$

1,499

 

 

$

1,662

 

 

$

1,662

 

Neuralstem, Inc. (14A)(15)

 

Drug Discovery & Development

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

2,543

 

 

 

2,793

 

 

 

2,793

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,455

 

 

 

4,455

 

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

 

 

 

12,430

 

 

 

12,493

 

Aveo Pharmaceuticals, Inc. (9)(12)(14A)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.90%

or Floor rate of 11.90%

 

$

10,000

 

 

 

10,304

 

 

 

10,270

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 6.90%

or Floor rate of 11.90%

 

$

5,000

 

 

 

4,954

 

 

 

4,955

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

15,000

 

 

 

15,258

 

 

 

15,225

 

Axovant Sciences Ltd. (4)(9)

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80%

or Floor rate of 10.55%

 

$

55,000

 

 

 

53,218

 

 

 

53,218

 

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

 

 

 

15,321

 

 

 

15,520

 

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

5,000

 

 

 

5,002

 

 

 

5,088

 

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 5.85%

or Floor rate of 9.35%

 

$

10,000

 

 

 

9,947

 

 

 

10,064

 

Total Bellicum Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

30,000

 

 

 

30,270

 

 

 

30,672

 

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

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 9.20%

 

$

7,500

 

 

 

7,591

 

 

 

7,630

 

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%

 

$

17,614

 

 

 

17,395

 

 

 

17,535

 

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

 

Drug Discovery & Development

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

24,386

 

 

 

24,695

 

 

 

24,860

 

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

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%

 

$

3,066

 

 

 

3,349

 

 

 

 

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

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 2.25%

or Floor rate of 7.25%

 

$

17,000

 

 

 

17,393

 

 

 

17,473

 

Immune Pharmaceuticals (10)(14B)

 

Drug Discovery & Development

 

Senior Secured

 

September 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

2,839

 

 

 

2,957

 

 

 

2,127

 

Insmed, Incorporated (10)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 4.75%

or Floor rate of 9.25%

 

$

55,000

 

 

 

54,876

 

 

 

54,932

 

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

 

Drug Discovery & Development

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 8.95%

 

$

2,979

 

 

 

3,538

 

 

 

3,583

 

Melinta Therapeutics (12)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 3.75%

or Floor rate of 8.25%

 

$

21,659

 

 

 

22,292

 

 

 

22,300

 

Merrimack Pharmaceuticals, Inc. (9)

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate FIXED 11.50%

 

$

25,000

 

 

 

25,000

 

 

 

25,000

 

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%

 

$

35,200

 

 

 

34,782

 

 

 

35,152

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (14A)(15)

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%

 

$

40,000

 

 

 

39,551

 

 

 

39,801

 

PhaseRx,Inc. (14B)(15)

 

Drug Discovery & Development

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

6,000

 

 

 

5,976

 

 

 

6,023

 

Sorrento Therapeutics, Inc. (9)(14A)

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

30,000

 

 

 

28,655

 

 

 

28,655

 

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

 

 

 

20,243

 

 

 

20,242

 

Verastem, Inc. (14A)(17)

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%

 

$

2,500

 

 

 

2,454

 

 

 

2,454

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

421,923

 

 

 

419,375

 

Subtotal: Drug Discovery & Development (52.46%)*

 

 

 

 

 

 

 

 

 

 

 

 

426,378

 

 

 

423,830

 

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 DEVICES INC. (14A)(15)(17)

 

Electronics & Computer Hardware

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 4.00%

or Floor rate of 8.25%

 

$

7,500

 

 

$

7,440

 

 

$

7,440

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,440

 

 

 

7,440

 

Subtotal: Electronics & Computer Hardware (0.92%)*

 

 

 

 

 

 

 

 

 

 

 

 

7,440

 

 

 

7,440

 

 

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

 

 

 

10,184

 

 

 

10,346

 

PH Group Holdings

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,821

 

 

 

20,124

 

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

10,000

 

 

 

9,887

 

 

 

9,887

 

Total PH Group Holdings

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

29,708

 

 

 

30,011

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

39,892

 

 

 

40,357

 

Subtotal: Healthcare Services, Other (5.00%)*

 

 

 

 

 

 

 

 

 

 

 

 

39,892

 

 

 

40,357

 

 

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%

 

$

2,071

 

 

 

2,058

 

 

 

2,058

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 5.20%

or Floor rate of 8.95%,

PIK Interest 1.95%

 

$

18,554

 

 

 

18,422

 

 

 

18,421

 

Total Aria Systems, Inc.

 

 

 

 

 

 

 

 

 

$

20,625

 

 

 

20,480

 

 

 

20,479

 

CloudOne, Inc. (10)(14B)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 6.35%

or Floor rate of 9.85%

 

$

4,824

 

 

 

4,971

 

 

 

5,021

 

Intent Media, Inc. (13)(14A)(15)

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.25%

or Floor rate of 8.75%,

PIK Interest 1.00%

 

$

5,012

 

 

 

4,889

 

 

 

4,889

 

LogicSource (14B)(15)

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%

 

$

8,500

 

 

 

8,590

 

 

 

8,700

 

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%

 

$

35,465

 

 

 

34,817

 

 

 

35,442

 

Tectura Corporation (6)(7)(8)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%,

PIK Interest 3.00%

 

$

19,839

 

 

 

19,839

 

 

 

19,839

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

11,015

 

 

 

240

 

 

 

-

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

$

30,854

 

 

 

20,079

 

 

 

19,839

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

93,826

 

 

 

94,370

 

Subtotal: Internet Consumer & Business Services (11.68%)*

 

 

 

 

 

 

 

 

 

 

 

 

93,826

 

 

 

94,370

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FanDuel, Inc. (14B)

 

Media/Content/Info

 

Senior Secured

 

November 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%

 

$

20,000

 

 

 

19,575

 

 

 

19,575

 

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%

 

$

104,565

 

 

 

103,462

 

 

 

104,197

 

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

 

 

 

5,055

 

 

 

5,155

 

 

 

Media/Content/Info

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%

 

$

5,000

 

 

 

4,957

 

 

 

5,041

 

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

 

 

 

 

 

 

 

$

10,000

 

 

 

10,012

 

 

 

10,196

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

133,049

 

 

 

133,968

 

Subtotal: Media/Content/Info (16.58%)*

 

 

 

 

 

 

 

 

 

 

 

 

133,049

 

 

 

133,968

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70%

or Floor rate of 10.95%

 

$

5,767

 

 

$

7,269

 

 

$

7,269

 

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

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 6.50%

or Floor rate of 9.75%

 

$

2,215

 

 

 

2,391

 

 

 

1,895

 

SynergEyes, Inc. (14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

1,831

 

 

 

2,272

 

 

 

2,272

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,932

 

 

 

11,436

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Medical Devices & Equipment

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%

 

$

4,625

 

 

 

4,797

 

 

 

4,758

 

Flowonix Medical Incorporated (12)(14B)

 

Medical Devices & Equipment

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 10.00%

 

$

9,954

 

 

 

10,483

 

 

 

8,007

 

 

 

Medical Devices & Equipment

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 6.50%

or Floor rate of 10.00%

 

$

3,949

 

 

 

4,008

 

 

 

3,061

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

 

$

13,903

 

 

 

14,491

 

 

 

11,068

 

IntegenX, Inc. (14B)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.05%

or Floor rate of 10.05%

 

$

15,000

 

 

 

15,214

 

 

 

15,252

 

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.05%

or Floor rate of 10.05%

 

$

1,750

 

 

 

1,755

 

 

 

1,749

 

Total IntegenX, Inc.

 

 

 

 

 

 

 

 

 

$

16,750

 

 

 

16,969

 

 

 

17,001

 

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

 

Medical Devices & Equipment

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.50%

 

$

7,599

 

 

 

7,648

 

 

 

7,702

 

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

 

 

 

12,616

 

 

 

12,632

 

Quanterix Corporation (10)(14A)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%

 

$

9,043

 

 

 

9,404

 

 

 

9,406

 

Tela Bio, Inc. (14A)(15)(17)

 

Medical Devices & Equipment

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 4.95%

or Floor rate of 9.45%

 

$

5,000

 

 

 

4,921

 

 

 

4,921

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

70,846

 

 

 

67,488

 

Subtotal: Medical Devices & Equipment (9.77%)*

 

 

 

 

 

 

 

 

 

 

 

 

82,778

 

 

 

78,924

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation (15)

 

Semiconductors

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.00%

or Floor rate of 10.50%

 

$

5,000

 

 

 

5,000

 

 

 

5,000

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

5,000

 

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%

 

$

2,854

 

 

 

3,093

 

 

 

3,075

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,093

 

 

 

3,075

 

Subtotal: Semiconductors (1.00%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,093

 

 

 

8,075

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

7,401

 

 

$

7,915

 

 

$

7,915

 

JumpStart Games, Inc. (p.k.a Knowledge Holdings, Inc.) (7)(13)(14A)(14C)(15)(18)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

13,000

 

 

 

12,747

 

 

 

2,785

 

 

 

Software

 

Senior Secured

 

February 2017

 

Interest rate FIXED 5.75%,

PIK Interest 10.75%

 

$

1,566

 

 

 

1,698

 

 

 

371

 

Total JumpStart Games, Inc. (p.k.a. Knowledge Adventure, Inc.)

 

 

 

 

 

 

 

$

14,566

 

 

 

14,445

 

 

 

3,156

 

RedSeal Inc. (14A)(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

 

 

 

 

 

 

 

 

 

 

 

 

24,995

 

 

 

13,706

 

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%

 

$

28,825

 

 

 

28,722

 

 

 

28,780

 

 

 

Software

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.75%,

PIK Interest 2.50%

 

$

10,235

 

 

 

10,071

 

 

 

10,149

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

 

$

39,060

 

 

 

38,793

 

 

 

38,929

 

Clarabridge, Inc. (13)

 

Software

 

Senior Secured

 

April 2021

 

Interest rate PRIME + 4.80%

or Floor rate of 8.55%,

PIK Interest 3.25%

 

$

40,000

 

 

 

39,970

 

 

 

39,970

 

Clickfox, Inc. (12)(14C)

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.50%

 

$

11,246

 

 

 

11,792

 

 

 

11,787

 

Cloud Technology Partners, Inc. (14A)

 

Software

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 3.05%

or Floor rate of 7.05%

 

$

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

Software

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 5.75%

or Floor rate of 9.75%

 

$

10,000

 

 

 

9,923

 

 

 

9,923

 

Total Cloud Technology Partners, Inc.

 

 

 

 

 

 

 

$

13,000

 

 

 

12,923

 

 

 

12,923

 

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

 

Software

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 4.60%

or Floor rate of 7.85%

 

$

10,000

 

 

 

10,191

 

 

 

10,279

 

Evernote Corporation (15)(17)

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

6,000

 

 

 

5,964

 

 

 

6,097

 

Lithium Technologies, Inc. (13)(14A)(15)(19)

 

Software

 

Senior Secured

 

June 2020

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%,

PIK Interest 1.80%

 

$

25,132

 

 

 

25,172

 

 

 

25,172

 

Mattersight Corporation (11)(13)

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%,

PIK Interest 2.15%

 

$

22,786

 

 

 

22,211

 

 

 

22,689

 

OneLogin, Inc. (13)(15)

 

Software

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%,

PIK Interest 3.25%

 

$

15,494

 

 

 

15,385

 

 

 

15,695

 

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%

 

$

8,161

 

 

 

8,201

 

 

 

8,331

 

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

 

Software

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 7.75%

or Floor rate of 11.00%

 

$

4,225

 

 

 

4,367

 

 

 

4,364

 

 

 

Software

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 7.75%

or Floor rate of 11.25%

 

$

5,000

 

 

 

4,915

 

 

 

4,915

 

Total RedSeal Inc.

 

 

 

 

 

 

 

 

 

$

9,225

 

 

 

9,282

 

 

 

9,279

 

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%

 

$

15,304

 

 

 

15,162

 

 

 

15,288

 

Wrike, Inc. (13)(14A)(17)

 

Software

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 2.00%

 

$

10,012

 

 

 

9,704

 

 

 

9,704

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

224,750

 

 

 

226,143

 

Subtotal: Software (29.69%)*

 

 

 

 

 

 

 

 

 

 

 

 

249,745

 

 

 

239,849

 

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (10)(13)(14A)

 

Specialty Pharmaceuticals

 

Senior Secured

 

November 2020

 

Interest rate PRIME + 7.50%

or Floor rate of 11.00%,

PIK Interest 1.00%

 

$

35,129

 

 

$

34,824

 

 

$

35,335

 

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

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2018

 

Interest rate PRIME + 5.65%

or Floor rate of 9.90%

 

$

3,021

 

 

 

3,347

 

 

 

3,283

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

38,171

 

 

 

38,618

 

Subtotal: Specialty Pharmaceuticals (4.78%)*

 

 

 

 

 

 

 

 

 

 

 

 

38,171

 

 

 

38,618

 

 

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

 

 

 

8,557

 

 

 

8,591

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,557

 

 

 

8,591

 

Subtotal: Surgical Devices (1.06%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,557

 

 

 

8,591

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Superconductor Corporation (10)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 7.25%

or Floor rate of 11.00%

 

$

1,500

 

 

 

1,565

 

 

 

1,565

 

Modumetal, Inc. (11)(14C)(14D)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 6.00%

or Floor rate of 9.25%

 

$

2,387

 

 

 

3,235

 

 

 

3,235

 

Sungevity, Inc. (7)(14D)

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

35,000

 

 

 

40,498

 

 

 

9,031

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.70%

or Floor rate of 6.95%

 

$

20,000

 

 

 

20,000

 

 

 

4,460

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

 

$

55,000

 

 

 

60,498

 

 

 

13,491

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

65,298

 

 

 

18,291

 

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

 

 

 

20,702

 

 

 

20,871

 

Proterra, Inc. (10)(14A)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.95%

or Floor rate of 10.20%

 

$

5,000

 

 

 

4,985

 

 

 

5,104

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 6.95%

or Floor rate of 10.20%

 

$

25,000

 

 

 

25,837

 

 

 

25,717

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

10,000

 

 

 

10,003

 

 

 

10,053

 

Total Proterra, Inc.

 

 

 

 

 

 

 

 

 

$

40,000

 

 

 

40,825

 

 

 

40,874

 

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

 

Sustainable and Renewable Technology

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.20%

or Floor rate of 9.45%

 

$

6,928

 

 

 

7,060

 

 

 

7,134

 

Sungevity, Inc. (7)(14C)

 

Sustainable and Renewable Technology

 

Senior Secured

 

September 2018

 

Interest rate FIXED 13.50%

 

$

1,000

 

 

 

1,004

 

 

 

 

Tendril Networks (11)(14B)

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate FIXED 7.25%

 

$

13,619

 

 

 

14,178

 

 

 

14,088

 

Verdezyne, Inc. (14B)(15)

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 8.25%

or Floor rate of 11.75%

 

$

7,500

 

 

 

8,137

 

 

 

8,144

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

91,906

 

 

 

91,111

 

Subtotal: Sustainable and Renewable Technology (13.54%)*

 

 

 

 

 

 

 

 

 

 

 

 

157,204

 

 

 

109,402

 

Total: Debt Investments (162.39%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,399,242

 

 

 

1,311,925

 

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

Common Stock

 

 

55,780

 

 

$

500

 

 

$

 

Subtotal: Biotechnology Tools (0.00%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Communications & Networking

 

Equity

 

Common Stock

 

 

100

 

 

 

4,000

 

 

 

1,455

 

GlowPoint, Inc. (3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

101

 

 

 

34

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

5,602

 

Subtotal: Communications & Networking (0.88%)*

 

 

 

 

 

 

 

 

 

 

5,101

 

 

 

7,091

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

480,261

 

 

 

 

 

 

292

 

 

 

Consumer & Business Products

 

Equity

 

Preferred Series B-1

 

 

187,970

 

 

 

500

 

 

 

276

 

Total Market Force Information, Inc.

 

 

 

 

 

 

 

 

668,231

 

 

 

500

 

 

 

568

 

Subtotal: Consumer & Business Products (0.07%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

568

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

606

 

Subtotal: Diagnostic (0.08%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

606

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (3)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

171

 

BioQ Pharma Incorporated (15)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

635

 

Edge Therapeutics, Inc. (3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

53,165

 

 

 

329

 

 

 

484

 

Merrion Pharmaceuticals, Plc (4)(9)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

20,000

 

 

 

9

 

 

 

 

Neos Therapeutics, Inc. (3)(15)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

900

 

Revance Therapeutics, Inc. (3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

22,765

 

 

 

557

 

 

 

474

 

Subtotal: Drug Delivery (0.33%)*

 

 

 

 

 

 

 

 

 

 

3,003

 

 

 

2,664

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

426,931

 

 

 

1,060

 

 

 

252

 

Cerecor, Inc. (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

80

 

Cerulean Pharma, Inc. (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

135,501

 

 

 

1,000

 

 

 

110

 

Dicerna Pharmaceuticals, Inc. (3)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

486

 

Dynavax Technologies (3)(9)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

119

 

Epirus Biopharmaceuticals, Inc.

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

200,000

 

 

 

1,000

 

 

 

 

Genocea Biosciences, Inc. (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

1,361

 

Inotek Pharmaceuticals Corporation (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

3,778

 

 

 

1,500

 

 

 

8

 

Insmed, Incorporated (3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

1,239

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Equity

 

Preferred Series 4

 

 

1,914,448

 

 

 

2,000

 

 

 

2,096

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,743

 

 

 

1,470

 

Subtotal: Drug Discovery & Development (0.89%)*

 

 

 

 

 

 

 

 

 

 

14,853

 

 

 

7,221

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc. (3)

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

47

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

47

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DocuSign, Inc.

 

Information Services

 

Equity

 

Common Stock

 

 

385,000

 

 

 

6,081

 

 

 

6,081

 

Subtotal: Information Services (0.75%)*

 

 

 

 

 

 

 

 

 

 

6,081

 

 

 

6,081

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc. (15)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

165

 

Brigade Group, Inc. (p.k.a. Philotic, Inc.)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

9,023

 

 

 

93

 

 

 

 

Lightspeed POS, Inc. (4)(9)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

230,030

 

 

 

250

 

 

 

221

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

219

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

440

 

OfferUp, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,663

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

632

 

Total OfferUp, Inc.

 

 

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

2,295

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

433

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

254

 

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

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

687

 

RazorGator Interactive Group, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series AA

 

 

34,783

 

 

 

15

 

 

 

36

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series BB

 

 

1,000,000

 

 

 

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.45%)*

 

 

 

 

 

 

 

 

 

 

3,578

 

 

 

3,623

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pinterest, Inc.

 

Media/Content/Info

 

Equity

 

Preferred Series Seed

 

 

620,000

 

 

$

4,085

 

 

$

4,085

 

Subtotal: Media/Content/Info (0.51%)*

 

 

 

 

 

 

 

 

 

 

4,085

 

 

 

4,085

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtriCure, Inc. (3)(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

7,536

 

 

 

266

 

 

 

132

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

 

Gelesis, Inc. (15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

913

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

969

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

925

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,807

 

Medrobotics Corporation (15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

190

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

162

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

450

 

Total Medrobotics Corporation

 

 

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

802

 

Optiscan Biomedical, Corp. (5)(15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

329

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

95

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

3,325

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

15,638,888

 

 

 

1,308

 

 

 

1,392

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

 

 

78,855,687

 

 

 

10,220

 

 

 

5,141

 

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

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

584

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

272,479

 

 

 

1,000

 

 

 

1,202

 

Subtotal: Medical Devices & Equipment (1.32%)*

 

 

 

 

 

 

 

 

 

 

15,343

 

 

 

10,668

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

91

 

Druva, Inc.

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,321

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

2,097

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

80,587

 

 

 

131

 

 

 

534

 

Total ForeScout Technologies, Inc.

 

 

 

 

 

 

 

 

399,686

 

 

 

529

 

 

 

2,631

 

HighRoads, Inc.

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

NewVoiceMedia Limited (4)(9)

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

1,236

 

Palantir Technologies

 

Software

 

Equity

 

Preferred Series E

 

 

727,696

 

 

 

5,431

 

 

 

5,650

 

Sprinklr, Inc.

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

3,749

 

WildTangent, Inc. (15)

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

160

 

Subtotal: Software (1.84%)*

 

 

 

 

 

 

 

 

 

 

12,432

 

 

 

14,838

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

35

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

48

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

723

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

469

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

5,653,360

 

 

 

1,673

 

 

 

1,275

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

450

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

357

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

1,122

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

578

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

2,507

 

Subtotal: Surgical Devices (0.47%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

3,782

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

19,250

 

 

 

761

 

 

 

 

Glori Energy, Inc. (3)

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

18,208

 

 

 

165

 

 

 

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series C

 

 

3,107,520

 

 

 

500

 

 

 

535

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series 5

 

 

99,280

 

 

 

500

 

 

 

522

 

Sungevity, Inc. (15)

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series D

 

 

68,807,339

 

 

 

6,750

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.13%)*

 

 

 

 

 

 

 

 

 

 

8,676

 

 

 

1,057

 

Total: Equity Investments (7.72%)*

 

 

 

 

 

 

 

 

 

 

79,159

 

 

 

62,331

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

$

193

 

Labcyte, Inc. (15)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

 

323

 

 

 

355

 

Subtotal: Biotechnology Tools (0.07%)*

 

 

 

 

 

 

 

 

 

 

430

 

 

 

548

 

 

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

 

 

 

17

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

482

 

SkyCross, Inc. (6)(15)

 

Communications & Networking

 

Warrant

 

Preferred Series F

 

 

9,762,777

 

 

 

394

 

 

 

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.06%)*

 

 

 

 

 

 

 

 

 

 

1,219

 

 

 

499

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

Intelligent Beauty, Inc. (15)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

306

 

IronPlanet, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series D

 

 

1,155,821

 

 

 

1,076

 

 

 

5,574

 

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 (0.73%)*

 

 

 

 

 

 

 

 

 

 

1,922

 

 

 

5,880

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

785

 

 

 

109

 

Agile Therapeutics, Inc. (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

113

 

Aprecia Pharmaceuticals Company

 

Drug Delivery

 

Warrant

 

Preferred Series A-1

 

 

735,981

 

 

 

366

 

 

 

104

 

BIND Therapeutics, Inc. (15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

152,586

 

 

 

488

 

 

 

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

450

 

Celsion Corporation (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

 

Dance Biopharm, Inc. (15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

Edge Therapeutics, Inc. (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

78,595

 

 

 

390

 

 

 

216

 

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

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

350

 

Neos Therapeutics, Inc. (3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

22

 

Pulmatrix Inc. (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

25,150

 

 

 

116

 

 

 

28

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

72,379

 

 

 

266

 

 

 

16

 

Subtotal: Drug Delivery (0.17%)*

 

 

 

 

 

 

 

 

 

 

4,523

 

 

 

1,408

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

$

35

 

Anthera Pharmaceuticals, Inc. (3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

Audentes Therapeutics, Inc (3)(9)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,914

 

 

 

63

 

 

 

71

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

156,726

 

 

 

249

 

 

 

36

 

Aveo Pharmaceuticals, Inc. (3)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

2,069,880

 

 

 

396

 

 

 

153

 

Axovant Sciences Ltd. (3)(4)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

274,086

 

 

 

1,269

 

 

 

1,791

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

156

 

Cerecor, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

 

Cerulean Pharma, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,901

 

 

 

369

 

 

 

47

 

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

 

 

 

292

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

29,239

 

 

 

165

 

 

 

8

 

CytRx Corporation (3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

634,146

 

 

 

416

 

 

 

92

 

Dicerna Pharmaceuticals, Inc. (3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

200

 

 

 

28

 

 

 

 

Epirus Biopharmaceuticals, Inc.

 

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

 

 

 

29

 

Genocea Biosciences, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,725

 

 

 

266

 

 

 

130

 

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

 

 

 

128

 

Melinta Therapeutics

 

Drug Discovery & Development

 

Warrant

 

Preferred Series 3

 

 

1,382,323

 

 

 

626

 

 

 

385

 

Nanotherapeutics, Inc. (15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

582

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

46,838

 

 

 

266

 

 

 

43

 

Neuralstem, Inc. (3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

5,783

 

 

 

77

 

 

 

2

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

69,840

 

 

 

152

 

 

 

270

 

PhaseRx,Inc. (3)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

63,000

 

 

 

125

 

 

 

13

 

Sorrento Therapeutics, Inc. (3)(9)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

306,748

 

 

 

890

 

 

 

451

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

9

 

XOMA Corporation (3)(9)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,063

 

 

 

279

 

 

 

12

 

Subtotal: Drug Discovery & Development (0.59%)*

 

 

 

 

 

 

 

 

 

 

9,907

 

 

 

4,735

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 DEVICES INC. (15)

 

Electronics & Computer Hardware

 

Warrant

 

Preferred Series D

 

 

79,856

 

 

 

100

 

 

 

104

 

Clustrix, Inc.

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

50,000

 

 

 

12

 

 

 

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

112

 

 

 

104

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (3)(15)

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

84

 

Subtotal: Healthcare Services, Other (0.01%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

84

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INMOBI Inc. (4)(9)

 

Information Services

 

Warrant

 

Common Stock

 

 

46,874

 

 

 

82

 

 

 

 

InXpo, Inc. (15)

 

Information Services

 

Warrant

 

Preferred Series C

 

 

648,400

 

 

 

98

 

 

 

8

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

1,165,183

 

 

 

74

 

 

 

15

 

Total InXpo, Inc.

 

 

 

 

 

 

 

 

1,813,583

 

 

 

172

 

 

 

23

 

RichRelevance, Inc. (15)

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.00%)*

 

 

 

 

 

 

 

 

 

 

352

 

 

 

23

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

 

68

 

CashStar, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

23

 

CloudOne, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

75

 

Intent Media, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

114

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

962

 

Lightspeed POS, Inc. (4)(9)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

19

 

LogicSource (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

58

 

Oportun (p.k.a. Progress Financial)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

180

 

Prism Education Group, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

200,000

 

 

 

42

 

 

 

 

ShareThis, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

 

Snagajob.com, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

1,575,000

 

 

 

640

 

 

 

799

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

5

 

Subtotal: Internet Consumer & Business Services (0.29%)*

 

 

 

 

 

 

 

 

 

 

3,801

 

 

 

2,303

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FanDuel, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series E-1

 

 

4,648

 

 

 

730

 

 

 

742

 

Machine Zone, Inc. (16)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

1,552,710

 

 

 

1,958

 

 

 

3,331

 

Rhapsody International, Inc. (15)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

385

 

 

 

30

 

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

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

255,818

 

 

 

4

 

 

 

12

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

14

 

Subtotal: Media/Content/Info (0.51%)*

 

 

 

 

 

 

 

 

 

 

3,425

 

 

 

4,129

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation (3)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

103,225

 

 

 

459

 

 

 

6

 

Aspire Bariatrics, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

395,000

 

 

 

455

 

 

 

221

 

Avedro, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

300,000

 

 

 

401

 

 

 

301

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

 

Gamma Medica, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

450,956

 

 

 

170

 

 

 

 

Gelesis, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

228

 

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

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

39,364

 

 

 

242

 

 

 

3

 

IntegenX, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

547,752

 

 

 

15

 

 

 

36

 

Medrobotics Corporation (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

251

 

Micell Technologies, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

261

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

7,841

 

 

 

408

 

 

 

119

 

NinePoint Medical, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

86

 

Optiscan Biomedical, Corp. (5)(15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

10,535,275

 

 

 

1,252

 

 

 

170

 

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

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

423

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

173,428

 

 

 

180

 

 

 

120

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

38,828

 

 

 

25

 

 

 

25

 

Total Quanterix Corporation

 

 

 

 

 

 

 

 

212,256

 

 

 

205

 

 

 

145

 

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

 

 

 

 

Tela Bio, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B

 

 

129,310

 

 

 

20

 

 

 

20

 

ViewRay, Inc. (3)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

281

 

Subtotal: Medical Devices & Equipment (0.32%)*

 

 

 

 

 

 

 

 

 

 

6,194

 

 

 

2,551

 

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation (15)

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

$

160

 

 

$

13

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

280

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

1,110,000

 

 

 

259

 

 

 

293

 

Aquantia Corp.

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

196,831

 

 

 

4

 

 

 

133

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

141,567

 

 

 

46

 

 

 

152

 

Subtotal: Semiconductors (0.07%)*

 

 

 

 

 

 

 

 

 

 

309

 

 

 

578

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

73,584

 

 

 

249

 

 

 

79

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

57

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

136

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation (15)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

559

 

Clickfox, Inc. (15)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

175

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

180

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

230

 

 

 

2,769

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

3,848,796

 

 

 

1,290

 

 

 

3,124

 

Cloud Technology Partners, Inc.

 

Software

 

Warrant

 

Preferred Series C

 

 

113,960

 

 

 

34

 

 

 

47

 

Evernote Corporation (15)

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

101

 

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

 

 

 

331

 

Message Systems, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

371

 

Mobile Posse, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

145

 

Neos, Inc. (15)

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

28

 

NewVoiceMedia Limited (4)(9)

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

94

 

OneLogin, Inc. (15)

 

Software

 

Warrant

 

Common Stock

 

 

228,972

 

 

 

150

 

 

 

167

 

Poplicus, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

2,595,230

 

 

 

 

 

 

2

 

Quid, Inc. (15)

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

10

 

RedSeal Inc. (15)

 

Software

 

Warrant

 

Preferred Series C-Prime

 

 

640,603

 

 

 

66

 

 

 

86

 

Signpost, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

146

 

Soasta, Inc. (15)

 

Software

 

Warrant

 

Preferred Series E

 

 

410,800

 

 

 

691

 

 

 

295

 

Sonian, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

87

 

Wrike, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

139,751

 

 

 

462

 

 

 

540

 

Subtotal: Software (0.78%)*

 

 

 

 

 

 

 

 

 

 

5,331

 

 

 

6,269

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

1,717,709

 

 

 

861

 

 

 

650

 

Subtotal: Specialty Pharmaceuticals (0.08%)*

 

 

 

 

 

 

 

 

 

 

861

 

 

 

650

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

75

 

 

 

13

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

250

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

1,756,445

 

 

 

395

 

 

 

263

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

225

 

 

 

16

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

496

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

50,544

 

 

 

38

 

 

 

65

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

265,980

 

 

 

363

 

 

 

577

 

Subtotal: Surgical Devices (0.10%)*

 

 

 

 

 

 

 

 

 

 

758

 

 

 

840

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(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

 

 

$

116

 

Alphabet Energy, Inc. (15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 1B

 

 

13,667

 

 

 

82

 

 

 

 

American Superconductor Corporation (3)

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

58,823

 

 

 

39

 

 

 

61

 

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

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

 

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

 

 

 

32

 

Fluidic, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

3

 

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

 

 

 

 

 

 

537,040

 

 

 

231

 

 

 

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

283

 

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

 

 

 

520

 

Rive Technology, Inc. (15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

12

 

 

 

10

 

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

 

 

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

32,472,222

 

 

 

902

 

 

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

50,968,399

 

 

 

 

 

 

 

Total Sungevity, Inc.

 

 

 

 

 

 

 

 

103,440,621

 

 

 

1,445

 

 

 

 

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

 

 

 

103

 

Trilliant, Inc. (15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

162

 

 

 

282

 

Subtotal: Sustainable and Renewable Technology (0.17%)*

 

 

 

 

 

 

 

 

 

 

7,348

 

 

 

1,410

 

Total: Warrant Investments (3.96%)*

 

 

 

 

 

 

 

 

 

 

46,649

 

 

 

32,011

 

Total Investments (174.07%)*

 

 

 

 

 

 

 

 

 

$

1,525,050

 

 

$

1,406,267

 

 

*

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 unrealized depreciation for federal income tax purposes totaled $24.5 million, $147.8 million and $123.3 million respectively. The tax cost of investments is $1.5 billion.

(3)

Except for warrants in 39 publicly traded companies and common stock in 17 publicly traded companies, all investments are restricted at March 31, 2017 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 March 31, 2017, and is therefore considered non-income producing. Note that at March 31, 2017, only the $11.0 million PIK, or payment-in-kind, 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 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 Bank Facility (as defined in Note 4).

(13)

Denotes that all or a portion of the debt investment principal includes accumulated PIK 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 small business investment companies, or 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 March 31, 2017.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at March 31, 2017. Refer to Note 10.

(18)

Repayment of debt investment is delinquent of the contractual maturity date as of March 31, 2017.

(19)

The stated PIK interest rate may be reduced to 1.45% subject to achievement of a milestone by the portfolio company.

 

 


See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exicure, Inc. (11) (14A)

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

6,000

 

 

$

5,971

 

 

$

6,035

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,971

 

 

 

6,035

 

Subtotal: Biotechnology Tools (0.77%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,971

 

 

 

6,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Communications & Networking

 

Senior Secured

 

August 2017

 

PIK Interest 10.50%

 

$

1,278

 

 

 

1,304

 

 

 

1,304

 

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

 

 

 

 

 

 

 

 

 

 

 

 

10,279

 

 

 

1,304

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group (4) (9)

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

8,025

 

 

 

7,212

 

 

 

4,825

 

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

 

 

 

3,038

 

 

 

3,044

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

27,150

 

 

 

7,869

 

Subtotal: Communications & Networking (1.16%)*

 

 

 

 

 

 

 

 

 

 

 

 

37,429

 

 

 

9,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antenna79 (p.k.a. Pong Research Corporation) (14A) (15)

 

Consumer & Business Products

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,837

 

 

 

19,837

 

 

 

Consumer & Business Products

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

1,000

 

 

 

965

 

 

 

965

 

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

 

 

 

 

 

 

 

$

21,000

 

 

 

20,802

 

 

 

20,802

 

Nasty Gal (14B) (15)

 

Consumer & Business Products

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

13,241

 

 

 

13,148

 

 

 

13,148

 

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%

 

$

2,280

 

 

 

2,302

 

 

 

2,283

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

36,252

 

 

 

36,233

 

Subtotal: Consumer & Business Products (4.60%)*

 

 

 

 

 

 

 

 

 

 

 

 

36,252

 

 

 

36,233

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year 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

 

 

$

21,151

 

 

$

21,151

 

Celsion Corporation (10) (14A

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

2,246

 

 

 

2,575

 

 

 

2,575

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

23,726

 

 

 

23,726

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Delivery

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%

 

$

16,500

 

 

 

16,524

 

 

 

16,434

 

Aprecia Pharmaceuticals Company (11) (14A)

 

Drug Delivery

 

Senior Secured

 

January 2020

 

Interest rate PRIME + 5.75%

or Floor rate of 9.25%

 

$

20,000

 

 

 

19,700

 

 

 

19,706

 

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

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 8.00%

or Floor rate of 11.25%

 

$

8,231

 

 

 

8,636

 

 

 

8,577

 

 

 

Drug Delivery

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.00%

or Floor rate of 10.25%

 

$

2,464

 

 

 

2,511

 

 

 

2,509

 

Total BioQ Pharma Incorporated

 

 

 

 

 

 

 

$

10,695

 

 

 

11,147

 

 

 

11,086

 

Edge Therapeutics, Inc. (11) (14A) (17)

 

Drug Delivery

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.65%

or Floor rate of 9.15%

 

$

15,000

 

 

 

15,004

 

 

 

15,045

 

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

 

Drug Delivery

 

Senior Secured

 

July 2018

 

Interest rate PRIME + 6.25%

or Floor rate of 9.50%

 

$

5,954

 

 

 

6,022

 

 

 

6,013

 

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%

 

$

12,123

 

 

 

12,325

 

 

 

12,238

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

80,722

 

 

 

80,522

 

Subtotal: Drug Delivery (13.23%)*

 

 

 

 

 

 

 

 

 

 

 

 

104,448

 

 

 

104,248

 

See notes to consolidated financial statements.

21


 

 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

$

2,374

 

 

$

2,499

 

 

$

2,499

 

Neuralstem, Inc. (14A) (15)

 

Drug Discovery & Development

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75%

or Floor rate of 10.00%

 

$

3,766

 

 

 

3,996

 

 

 

3,996

 

Subtotal: Under 1 Year Maturity