p
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For The Quarterly Period Ended September 30, 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.
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Large accelerated filer |
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☒ |
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Accelerated filer |
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☐ |
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|
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|||
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Non-accelerated filer |
|
☐ |
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Smaller reporting company |
|
☐ |
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Emerging growth company |
|
☐ |
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|
|
|
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 October 30, 2017, there were 84,162,661 shares outstanding of the Registrant’s common stock, $0.001 par value.
FORM 10-Q TABLE OF CONTENTS
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3 |
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Item 1. |
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3 |
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3 |
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5 |
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6 |
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7 |
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Consolidated Schedule of Investments as of September 30, 2017 (unaudited) |
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8 |
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Consolidated Schedule of Investments as of December 31, 2016 (unaudited) |
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20 |
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34 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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69 |
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Item 3. |
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100 |
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Item 4. |
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101 |
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102 |
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Item 1. |
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102 |
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Item 1A. |
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102 |
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Item 2. |
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141 |
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Item 3. |
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141 |
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Item 4. |
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141 |
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Item 5. |
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141 |
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Item 6. |
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142 |
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145 |
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2
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.
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
(unaudited)
(dollars in thousands, except per share data)
|
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments (cost of $1,374,173 and $1,475,918 respectively) |
|
$ |
1,360,146 |
|
|
$ |
1,414,210 |
|
|
Control investments (cost of $25,788 and $22,598, respectively) |
|
|
23,382 |
|
|
|
4,700 |
|
|
Affiliate investments (cost of $89,050 and $13,010, respectively) |
|
|
33,586 |
|
|
|
5,032 |
|
|
Total investments in securities, at value (cost of $1,489,011 and $1,511,526 respectively) |
|
|
1,417,114 |
|
|
|
1,423,942 |
|
|
Cash and cash equivalents |
|
|
140,568 |
|
|
|
13,044 |
|
|
Restricted cash |
|
|
7,813 |
|
|
|
8,322 |
|
|
Interest receivable |
|
|
10,507 |
|
|
|
11,614 |
|
|
Other assets |
|
|
6,995 |
|
|
|
7,282 |
|
|
Total assets |
|
$ |
1,582,997 |
|
|
$ |
1,464,204 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
19,057 |
|
|
$ |
21,463 |
|
|
Credit Facilities |
|
|
— |
|
|
|
5,016 |
|
|
2021 Asset-Backed Notes, net (principal of $65,476 and $109,205, respectively) (1) |
|
|
64,860 |
|
|
|
107,972 |
|
|
Convertible Notes, net (principal of $230,000 and $0, respectively) (1) |
|
|
223,097 |
|
|
|
— |
|
|
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) |
|
|
251,716 |
|
|
|
245,490 |
|
|
SBA Debentures, net (principal of $190,200 and $190,200, respectively) (1) |
|
|
187,983 |
|
|
|
187,501 |
|
|
Total liabilities |
|
$ |
746,713 |
|
|
$ |
676,260 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
Common stock, par value |
|
|
84 |
|
|
|
80 |
|
|
Capital in excess of par value |
|
|
904,357 |
|
|
|
839,657 |
|
|
Unrealized depreciation on investments (2) |
|
|
(73,388 |
) |
|
|
(89,025 |
) |
|
Accumulated undistributed realized gains on investments |
|
|
10,674 |
|
|
|
37,603 |
|
|
Distributions in excess of net investment income |
|
|
(5,443 |
) |
|
|
(371 |
) |
|
Total net assets |
|
$ |
836,284 |
|
|
$ |
787,944 |
|
|
Total liabilities and net assets |
|
$ |
1,582,997 |
|
|
$ |
1,464,204 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares of common stock outstanding ($0.001 par value, 200,000,000 authorized) |
|
|
83,615 |
|
|
|
79,555 |
|
|
Net asset value per share |
|
$ |
10.00 |
|
|
$ |
9.90 |
|
|
(1) |
The Company’s 2021 Asset-Backed Notes, Convertible Notes, 2019 Notes, 2024 Notes and SBA Debentures, 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 $1.5 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 September 30, 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) |
|
September 30, 2017 |
|
|
December 31, 2016 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
Restricted Cash |
|
$ |
7,813 |
|
|
$ |
8,322 |
|
|
Total investments in securities, at value (cost of $168,662 and $244,695, respectively) |
|
|
166,861 |
|
|
|
242,349 |
|
|
Total assets |
|
$ |
174,674 |
|
|
$ |
250,671 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
2021 Asset-Backed Notes, net (principal of $65,476 and $109,205, respectively) (1) |
|
$ |
64,860 |
|
|
$ |
107,972 |
|
|
Total liabilities |
|
$ |
64,860 |
|
|
$ |
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
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and PIK interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
$ |
39,361 |
|
|
$ |
37,783 |
|
|
$ |
117,388 |
|
|
$ |
110,219 |
|
|
Control investments |
|
321 |
|
|
|
7 |
|
|
|
994 |
|
|
|
7 |
|
|
Affiliate investments |
|
246 |
|
|
|
30 |
|
|
|
248 |
|
|
|
145 |
|
|
Total interest income |
|
39,928 |
|
|
|
37,820 |
|
|
|
118,630 |
|
|
|
110,371 |
|
|
PIK interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
2,364 |
|
|
|
2,124 |
|
|
|
6,661 |
|
|
|
5,668 |
|
|
Control investments |
|
143 |
|
|
|
8 |
|
|
|
511 |
|
|
|
8 |
|
|
Total PIK interest income |
|
2,507 |
|
|
|
2,132 |
|
|
|
7,172 |
|
|
|
5,676 |
|
|
Total interest and PIK interest income |
|
42,435 |
|
|
|
39,952 |
|
|
|
125,802 |
|
|
|
116,047 |
|
|
Fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitment, facility and loan fee income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
2,239 |
|
|
|
3,274 |
|
|
|
7,613 |
|
|
|
8,700 |
|
|
Control investments |
|
1 |
|
|
|
1 |
|
|
|
11 |
|
|
|
1 |
|
|
Affiliate investments |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Total commitment, facility and loan fee income |
|
2,242 |
|
|
|
3,275 |
|
|
|
7,626 |
|
|
|
8,701 |
|
|
One-time fee income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
1,188 |
|
|
|
1,875 |
|
|
|
7,254 |
|
|
|
2,831 |
|
|
Total one-time fee income |
|
1,188 |
|
|
|
1,875 |
|
|
|
7,254 |
|
|
|
2,831 |
|
|
Total fee income |
|
3,430 |
|
|
|
5,150 |
|
|
|
14,880 |
|
|
|
11,532 |
|
|
Total investment income |
|
45,865 |
|
|
|
45,102 |
|
|
|
140,682 |
|
|
|
127,579 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
9,185 |
|
|
|
8,717 |
|
|
|
28,046 |
|
|
|
23,306 |
|
|
Loan fees |
|
1,314 |
|
|
|
1,432 |
|
|
|
5,500 |
|
|
|
3,698 |
|
|
General and administrative |
|
3,548 |
|
|
|
4,114 |
|
|
|
12,362 |
|
|
|
12,095 |
|
|
Employee compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
6,014 |
|
|
|
5,621 |
|
|
|
17,276 |
|
|
|
15,637 |
|
|
Stock-based compensation |
|
1,831 |
|
|
|
1,442 |
|
|
|
5,573 |
|
|
|
5,616 |
|
|
Total employee compensation |
|
7,845 |
|
|
|
7,063 |
|
|
|
22,849 |
|
|
|
21,253 |
|
|
Total operating expenses |
|
21,892 |
|
|
|
21,326 |
|
|
|
68,757 |
|
|
|
60,352 |
|
|
Net investment income |
|
23,973 |
|
|
|
23,776 |
|
|
|
71,925 |
|
|
|
67,227 |
|
|
Net realized gain (loss) on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
(8,911 |
) |
|
|
7,870 |
|
|
|
(10,940 |
) |
|
|
3,427 |
|
|
Control investments |
|
(15,543 |
) |
|
|
— |
|
|
|
(15,989 |
) |
|
|
— |
|
|
Total net realized gain (loss) on investments |
|
(24,454 |
) |
|
|
7,870 |
|
|
|
(26,929 |
) |
|
|
3,427 |
|
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
11,320 |
|
|
|
(1,387 |
) |
|
|
45,420 |
|
|
|
(11,005 |
) |
|
Control investments |
|
17,624 |
|
|
|
— |
|
|
|
17,703 |
|
|
|
(3,421 |
) |
|
Affiliate investments |
|
4,609 |
|
|
|
553 |
|
|
|
(47,486 |
) |
|
|
(1,646 |
) |
|
Total net unrealized appreciation (depreciation) on investments |
|
33,553 |
|
|
|
(834 |
) |
|
|
15,637 |
|
|
|
(16,072 |
) |
|
Total net realized and unrealized gain (loss) |
|
9,099 |
|
|
|
7,036 |
|
|
|
(11,292 |
) |
|
|
(12,645 |
) |
|
Net increase in net assets resulting from operations |
$ |
33,072 |
|
|
$ |
30,812 |
|
|
$ |
60,633 |
|
|
$ |
54,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income before investment gains and losses per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.32 |
|
|
$ |
0.87 |
|
|
$ |
0.91 |
|
|
Change in net assets resulting from operations per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.40 |
|
|
$ |
0.41 |
|
|
$ |
0.73 |
|
|
$ |
0.74 |
|
|
Diluted |
$ |
0.40 |
|
|
$ |
0.41 |
|
|
$ |
0.73 |
|
|
$ |
0.74 |
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
82,496 |
|
|
|
74,122 |
|
|
|
82,073 |
|
|
|
72,685 |
|
|
Diluted |
|
82,607 |
|
|
|
74,157 |
|
|
|
82,173 |
|
|
|
72,702 |
|
|
Distributions declared per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.93 |
|
|
$ |
0.93 |
|
See notes to consolidated financial statements.
5
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 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16,072 |
) |
|
|
3,427 |
|
|
|
67,227 |
|
|
|
54,582 |
|
|
Public offering, net of offering expenses |
|
4,273 |
|
|
|
4 |
|
|
|
50,173 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50,177 |
|
|
Acquisition of common stock under repurchase plan |
|
(450 |
) |
|
|
(1 |
) |
|
|
(4,789 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,790 |
) |
|
Issuance of common stock due to stock option exercises |
|
42 |
|
|
|
— |
|
|
|
426 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
426 |
|
|
Retired shares from net issuance |
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Issuance of common stock under restricted stock plan |
|
552 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Retired shares for restricted stock vesting |
|
(240 |
) |
|
|
— |
|
|
|
(2,560 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,560 |
) |
|
Distributions reinvested in common stock |
|
111 |
|
|
|
— |
|
|
|
1,343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,343 |
|
|
Distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(68,408 |
) |
|
|
(68,408 |
) |
|
Stock-based compensation (1) |
|
— |
|
|
|
— |
|
|
|
5,685 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,685 |
|
|
Balance at September 30, 2016 |
|
76,400 |
|
|
$ |
77 |
|
|
$ |
802,179 |
|
|
$ |
(68,880 |
) |
|
$ |
31,420 |
|
|
$ |
(11,207 |
) |
|
$ |
753,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,637 |
|
|
|
(26,929 |
) |
|
|
71,925 |
|
|
|
60,633 |
|
|
Public offering, net of offering expenses |
|
4,077 |
|
|
|
4 |
|
|
|
56,330 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,334 |
|
|
Issuance of common stock due to stock option exercises |
|
46 |
|
|
|
— |
|
|
|
213 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
213 |
|
|
Retired shares from net issuance |
|
(18 |
) |
|
|
— |
|
|
|
(172 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(172 |
) |
|
Issuance of common stock under restricted stock plan |
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Retired shares for restricted stock vesting |
|
(187 |
) |
|
|
— |
|
|
|
(2,483 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,483 |
) |
|
Distributions reinvested in common stock |
|
132 |
|
|
|
— |
|
|
|
1,780 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,780 |
|
|
Issuance of Convertible Notes |
|
— |
|
|
|
— |
|
|
|
3,413 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,413 |
|
|
Distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(76,997 |
) |
|
|
(76,997 |
) |
|
Stock-based compensation (1) |
|
— |
|
|
|
— |
|
|
|
5,619 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,619 |
|
|
Balance at September 30, 2017 |
|
83,615 |
|
|
$ |
84 |
|
|
$ |
904,357 |
|
|
$ |
(73,388 |
) |
|
$ |
10,674 |
|
|
$ |
(5,443 |
) |
|
$ |
836,284 |
|
|
(1) |
Stock-based compensation includes $46 and $69 of restricted stock and option expense related to director compensation for the nine months ended September 30, 2017 and 2016, respectively. |
See notes to consolidated financial statements.
6
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(dollars in thousands)
|
|
For the Nine Months Ended September 30, |
|
|||||
|
|
2017 |
|
|
2016 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
$ |
60,633 |
|
|
$ |
54,582 |
|
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Purchase of investments |
|
(487,321 |
) |
|
|
(461,772 |
) |
|
Principal and fee payments received on investments |
|
486,985 |
|
|
|
340,584 |
|
|
Proceeds from the sale of investments |
|
21,945 |
|
|
|
16,701 |
|
|
Net unrealized appreciation (depreciation) on investments |
|
(15,637 |
) |
|
|
16,072 |
|
|
Net realized loss (gain) on investments |
|
26,929 |
|
|
|
(3,427 |
) |
|
Accretion of paid-in-kind principal |
|
(7,078 |
) |
|
|
(5,317 |
) |
|
Accretion of loan discounts |
|
(5,242 |
) |
|
|
(5,524 |
) |
|
Accretion of loan discount on Convertible Notes |
|
448 |
|
|
|
82 |
|
|
Accretion of loan exit fees |
|
(14,413 |
) |
|
|
(16,679 |
) |
|
Change in deferred loan origination revenue |
|
1,083 |
|
|
|
(253 |
) |
|
Unearned fees related to unfunded commitments |
|
441 |
|
|
|
(308 |
) |
|
Amortization of debt fees and issuance costs |
|
4,534 |
|
|
|
2,987 |
|
|
Depreciation |
|
153 |
|
|
|
152 |
|
|
Stock-based compensation and amortization of restricted stock grants (1) |
|
5,619 |
|
|
|
5,685 |
|
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Interest and fees receivable |
|
1,107 |
|
|
|
(1,622 |
) |
|
Prepaid expenses and other assets |
|
(1,100 |
) |
|
|
228 |
|
|
Accounts payable |
|
— |
|
|
|
56 |
|
|
Accrued liabilities |
|
(2,457 |
) |
|
|
(729 |
) |
|
Net cash provided by (used in) operating activities |
|
76,629 |
|
|
|
(58,502 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of capital equipment |
|
(127 |
) |
|
|
(227 |
) |
|
Reduction of restricted cash |
|
509 |
|
|
|
211 |
|
|
Net cash provided by (used in) investing activities |
|
382 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Issuance of common stock, net |
|
56,334 |
|
|
|
50,177 |
|
|
Repurchase of common stock, net |
|
— |
|
|
|
(4,790 |
) |
|
Retirement of employee shares |
|
(2,442 |
) |
|
|
(2,134 |
) |
|
Distributions paid |
|
(75,217 |
) |
|
|
(67,065 |
) |
|
Issuance of Convertible Notes |
|
230,000 |
|
|
|
— |
|
|
Issuance of 2024 Notes Payable |
|
5,637 |
|
|
|
141,945 |
|
|
Repayments of 2019 Notes Payable |
|
(110,364 |
) |
|
|
— |
|
|
Repayments of 2021 Asset-Backed Notes |
|
(43,729 |
) |
|
|
(12,296 |
) |
|
Borrowings of credit facilities |
|
8,497 |
|
|
|
193,276 |
|
|
Repayments of credit facilities |
|
(13,513 |
) |
|
|
(243,276 |
) |
|
Cash paid for debt issuance costs |
|
(4,662 |
) |
|
|
(4,858 |
) |
|
Cash paid for redemption of convertible notes |
|
— |
|
|
|
(17,604 |
) |
|
Fees paid for credit facilities and debentures |
|
(28 |
) |
|
|
(1,041 |
) |
|
Net cash provided by financing activities |
|
50,513 |
|
|
|
32,334 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
127,524 |
|
|
|
(26,184 |
) |
|
Cash and cash equivalents at beginning of period |
|
13,044 |
|
|
|
95,196 |
|
|
Cash and cash equivalents at end of period |
$ |
140,568 |
|
|
$ |
69,012 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Distributions reinvested |
|
1,780 |
|
|
|
1,343 |
|
|
(1) |
Stock-based compensation includes $46 and $69 of restricted stock and option expense related to director compensation for the nine months ended September 30, 2017 and 2016, respectively. |
See notes to consolidated financial statements.
7
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Debt Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Biotechnology Tools |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Exicure, Inc. (12) |
|
Biotechnology Tools |
|
Senior Secured |
|
September 2019 |
|
Interest rate PRIME + 6.45% or Floor rate of 9.95%, 3.85% Exit Fee |
|
$ |
5,405 |
|
|
$ |
5,488 |
|
|
$ |
5,545 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
5,488 |
|
|
|
5,545 |
|
||
|
Subtotal: Biotechnology Tools (0.66%)* |
|
|
|
|
|
|
|
|
|
|
|
|
5,488 |
|
|
|
5,545 |
|
||
|
Communications & Networking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
OpenPeak, Inc. (8) |
|
Communications & Networking |
|
Senior Secured |
|
April 2018 |
|
Interest rate PRIME + 8.75% or Floor rate of 12.00% |
|
$ |
11,464 |
|
|
|
8,228 |
|
|
|
— |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
8,228 |
|
|
|
— |
|
||
|
Subtotal: Communications & Networking (0.00%)* |
|
|
|
|
|
|
|
|
|
|
|
|
8,228 |
|
|
|
— |
|
||
|
Consumer & Business Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Antenna79 (p.k.a. Pong Research Corporation) (15) |
|
Consumer & Business Products |
|
Senior Secured |
|
December 2019 |
|
Interest rate PRIME + 7.45% or Floor rate of 10.95%, 2.95% Exit Fee |
|
$ |
19,619 |
|
|
|
19,686 |
|
|
|
19,830 |
|
|
|
|
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) |
|
|
|
|
|
|
|
$ |
20,619 |
|
|
|
20,686 |
|
|
|
20,830 |
|
||
|
Second Time Around (Simplify Holdings, LLC) (7)(8)(15) |
|
Consumer & Business Products |
|
Senior Secured |
|
February 2019 |
|
Interest rate PRIME + 7.25% or Floor rate of 10.75%, 4.75% Exit Fee |
|
$ |
1,746 |
|
|
|
1,781 |
|
|
|
— |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
22,467 |
|
|
|
20,830 |
|
||
|
Subtotal: Consumer & Business Products (2.49%)* |
|
|
|
|
|
|
|
|
|
|
|
|
22,467 |
|
|
|
20,830 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drug Delivery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Pulmatrix Inc. (9)(11) |
|
Drug Delivery |
|
Senior Secured |
|
July 2018 |
|
Interest rate PRIME + 6.25% or Floor rate of 9.50%, 3.50% Exit Fee |
|
$ |
3,958 |
|
|
|
4,120 |
|
|
|
4,120 |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
4,120 |
|
|
|
4,120 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
AcelRx Pharmaceuticals, Inc. (10)(11)(15) |
|
Drug Delivery |
|
Senior Secured |
|
March 2020 |
|
Interest rate PRIME + 6.05% or Floor rate of 9.55%, 11.69% Exit Fee |
|
$ |
20,466 |
|
|
|
21,575 |
|
|
|
21,650 |
|
|
Agile Therapeutics, Inc. (11) |
|
Drug Delivery |
|
Senior Secured |
|
December 2018 |
|
Interest rate PRIME + 4.75% or Floor rate of 9.00%, 3.70% Exit Fee |
|
$ |
12,465 |
|
|
|
12,787 |
|
|
|
12,738 |
|
|
Antares Pharma Inc. (10)(15) |
|
Drug Delivery |
|
Senior Secured |
|
July 2022 |
|
Interest rate PRIME + 4.50% or Floor rate of 8.75%, 4.25% Exit Fee |
|
$ |
25,000 |
|
|
|
24,933 |
|
|
|
24,933 |
|
|
Edge Therapeutics, Inc. (12) |
|
Drug Delivery |
|
Senior Secured |
|
February 2020 |
|
Interest rate PRIME + 4.65% or Floor rate of 9.15%, 4.95% Exit Fee |
|
$ |
20,000 |
|
|
|
20,252 |
|
|
|
20,326 |
|
|
ZP Opco, Inc (p.k.a. Zosano Pharma) (11) |
|
Drug Delivery |
|
Senior Secured |
|
December 2018 |
|
Interest rate PRIME + 2.70% or Floor rate of 7.95%, 2.87% Exit Fee |
|
$ |
7,812 |
|
|
|
8,071 |
|
|
|
8,023 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
87,618 |
|
|
|
87,670 |
|
||
|
Subtotal: Drug Delivery (10.98%)* |
|
|
|
|
|
|
|
|
|
|
|
|
91,738 |
|
|
|
91,790 |
|
||
See notes to consolidated financial statements.
8
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Drug Discovery & Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
CytRx Corporation (11)(15) |
|
Drug Discovery & Development |
|
Senior Secured |
|
August 2018 |
|
Interest rate PRIME + 6.00% or Floor rate of 9.50%, 7.09% Exit Fee |
|
$ |
11,000 |
|
|
$ |
11,901 |
|
|
$ |
11,901 |
|
|
Epirus Biopharmaceuticals, Inc. (8) |
|
Drug Discovery & Development |
|
Senior Secured |
|
April 2018 |
|
Interest rate PRIME + 4.70% or Floor rate of 7.95%, 3.00% Exit Fee |
|
$ |
3,066 |
|
|
|
3,349 |
|
|
|
— |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
15,250 |
|
|
|
11,901 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Auris Medical Holding, AG (5)(10) |
|
Drug Discovery & Development |
|
Senior Secured |
|
January 2020 |
|
Interest rate PRIME + 6.05% or Floor rate of 9.55%, 5.75% Exit Fee |
|
$ |
11,435 |
|
|
|
11,598 |
|
|
|
11,585 |
|
|
Aveo Pharmaceuticals, Inc. (10)(13) |
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2019 |
|
Interest rate PRIME + 6.90% or Floor rate of 11.90%, 5.40% Exit Fee |
|
$ |
10,000 |
|
|
|
10,367 |
|
|
|
10,413 |
|
|
|
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2019 |
|
Interest rate PRIME + 6.90% or Floor rate of 11.90%, 3.00% Exit Fee |
|
$ |
10,000 |
|
|
|
9,904 |
|
|
|
9,914 |
|
|
Total Aveo Pharmaceuticals, Inc. |
|
|
|
|
|
|
|
$ |
20,000 |
|
|
|
20,271 |
|
|
|
20,327 |
|
||
|
Axovant Sciences Ltd. (5)(10) |
|
Drug Discovery & Development |
|
Senior Secured |
|
March 2021 |
|
Interest rate PRIME + 6.80% or Floor rate of 10.55% |
|
$ |
55,000 |
|
|
|
53,479 |
|
|
|
53,680 |
|
|
Bellicum Pharmaceuticals, Inc. (15) |
|
Drug Discovery & Development |
|
Senior Secured |
|
March 2020 |
|
Interest rate PRIME + 5.85% or Floor rate of 9.35%, 8.11% Exit Fee |
|
$ |
15,000 |
|
|
|
15,527 |
|
|
|
15,653 |
|
|
|
|
Drug Discovery & Development |
|
Senior Secured |
|
March 2020 |
|
Interest rate PRIME + 5.85% or Floor rate of 9.35%, 3.48% Exit Fee |
|
$ |
5,000 |
|
|
|
5,042 |
|
|
|
5,105 |
|
|
|
|
Drug Discovery & Development |
|
Senior Secured |
|
March 2020 |
|
Interest rate PRIME + 5.85% or Floor rate of 9.35%, 6.95% Exit Fee |
|
$ |
10,000 |
|
|
|
10,118 |
|
|
|
10,193 |
|
|
Total Bellicum Pharmaceuticals, Inc. |
|
|
|
|
|
|
|
$ |
30,000 |
|
|
|
30,687 |
|
|
|
30,951 |
|
||
|
Brickell Biotech, Inc. (12) |
|
Drug Discovery & Development |
|
Senior Secured |
|
September 2019 |
|
Interest rate PRIME + 5.70% or Floor rate of 9.20%, 6.75% Exit Fee |
|
$ |
6,565 |
|
|
|
6,794 |
|
|
|
5,100 |
|
|
CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.) (11) |
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2018 |
|
Interest rate PRIME + 7.70% or Floor rate of 10.95%, 4.09% Exit Fee |
|
$ |
14,964 |
|
|
|
14,794 |
|
|
|
14,800 |
|
|
Genocea Biosciences, Inc. (11) |
|
Drug Discovery & Development |
|
Senior Secured |
|
January 2019 |
|
Interest rate PRIME + 2.25% or Floor rate of 7.25%, 4.95% Exit Fee |
|
$ |
15,441 |
|
|
|
16,001 |
|
|
|
15,971 |
|
|
Insmed, Incorporated (11) |
|
Drug Discovery & Development |
|
Senior Secured |
|
October 2020 |
|
Interest rate PRIME + 4.75% or Floor rate of 9.25%, 4.86% Exit Fee |
|
$ |
55,000 |
|
|
|
55,253 |
|
|
|
55,297 |
|
|
Metuchen Pharmaceuticals LLC (12)(14) |
|
Drug Discovery & Development |
|
Senior Secured |
|
October 2020 |
|
Interest rate PRIME + 7.25% or Floor rate of 10.75%, PIK Interest 1.35%, 2.25% Exit Fee |
|
$ |
35,444 |
|
|
|
35,285 |
|
|
|
35,325 |
|
|
Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (15) |
|
Drug Discovery & Development |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee |
|
$ |
40,000 |
|
|
|
39,943 |
|
|
|
39,935 |
|
|
|
|
Drug Discovery & Development |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee |
|
$ |
10,000 |
|
|
|
9,986 |
|
|
|
9,985 |
|
|
Total Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) |
|
|
|
$ |
50,000 |
|
|
|
49,929 |
|
|
|
49,920 |
|
||||||
|
PhaseRx, Inc. (15) |
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2019 |
|
Interest rate PRIME + 5.75% or Floor rate of 9.25%, 5.85% Exit Fee |
|
$ |
5,468 |
|
|
|
5,554 |
|
|
|
5,563 |
|
|
Sorrento Therapeutics, Inc. (10)(13) |
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2020 |
|
Interest rate PRIME + 5.75% or Floor rate of 9.25%, 5.50% Exit Fee |
|
$ |
30,000 |
|
|
|
29,113 |
|
|
|
28,854 |
|
|
Stealth Bio Therapeutics Corp. (5)(10)(12) |
|
Drug Discovery & Development |
|
Senior Secured |
|
January 2021 |
|
Interest rate PRIME + 5.50% or Floor rate of 9.50%, 5.00% Exit Fee |
|
$ |
15,000 |
|
|
|
14,794 |
|
|
|
14,794 |
|
|
uniQure B.V. (5)(10)(11) |
|
Drug Discovery & Development |
|
Senior Secured |
|
May 2020 |
|
Interest rate PRIME + 3.00% or Floor rate of 8.25%, 5.48% Exit Fee |
|
$ |
20,000 |
|
|
|
20,479 |
|
|
|
20,456 |
|
|
Verastem, Inc. (12)(17) |
|
Drug Discovery & Development |
|
Senior Secured |
|
December 2020 |
|
Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee |
|
$ |
2,500 |
|
|
|
2,478 |
|
|
|
2,476 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
366,509 |
|
|
|
365,099 |
|
||
|
Subtotal: Drug Discovery & Development (45.08%)* |
|
|
|
|
|
|
|
|
|
|
|
|
381,759 |
|
|
|
377,000 |
|
||
See notes to consolidated financial statements.
9
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Electronics & Computer Hardware |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
908 DEVICES INC. (15)(17) |
|
Electronics & Computer Hardware |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 4.00% or Floor rate of 8.25%, 4.25% Exit Fee |
|
$ |
7,500 |
|
|
$ |
7,501 |
|
|
$ |
7,468 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
7,501 |
|
|
|
7,468 |
|
||
|
Subtotal: Electronics & Computer Hardware (0.89%)* |
|
|
|
|
|
|
|
|
|
|
|
|
7,501 |
|
|
|
7,468 |
|
||
|
Healthcare Services, Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Medsphere Systems Corporation (13)(14) |
|
Healthcare Services, Other |
|
Senior Secured |
|
February 2021 |
|
Interest rate PRIME + 4.75% or Floor rate of 9.00%, PIK Interest 1.75% |
|
$ |
17,530 |
|
|
|
17,339 |
|
|
|
17,339 |
|
|
Oak Street Health (12) |
|
Healthcare Services, Other |
|
Senior Secured |
|
September 2021 |
|
Interest rate PRIME + 5.00% or Floor rate of 9.75%, 5.95% Exit Fee |
|
$ |
20,000 |
|
|
|
19,848 |
|
|
|
19,848 |
|
|
PH Group Holdings (13) |
|
Healthcare Services, Other |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 7.45% or Floor rate of 10.95% |
|
$ |
20,000 |
|
|
|
19,859 |
|
|
|
19,893 |
|
|
|
|
Healthcare Services, Other |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 7.45% or Floor rate of 10.95% |
|
$ |
10,000 |
|
|
|
9,911 |
|
|
|
9,875 |
|
|
Total PH Group Holdings |
|
|
|
|
|
|
|
$ |
30,000 |
|
|
|
29,770 |
|
|
|
29,768 |
|
||
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
66,957 |
|
|
|
66,955 |
|
||
|
Subtotal: Healthcare Services, Other (8.01%)* |
|
|
|
|
|
|
|
|
|
|
|
|
66,957 |
|
|
|
66,955 |
|
||
|
Information Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
MDX Medical, Inc. (14)(15)(17) |
|
Information Services |
|
Senior Secured |
|
December 2020 |
|
Interest rate PRIME + 4.25% or Floor rate of 8.25%, PIK Interest 1.70% |
|
$ |
7,535 |
|
|
|
7,317 |
|
|
|
7,317 |
|
|
Netbase Solutions, Inc. (13)(14) |
|
Information Services |
|
Senior Secured |
|
August 2020 |
|
Interest rate PRIME + 6.00% or Floor rate of 10.00%, PIK Interest 2.00%, 3.00% Exit Fee |
|
$ |
9,005 |
|
|
|
8,605 |
|
|
|
8,605 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
15,922 |
|
|
|
15,922 |
|
||
|
Subtotal: Information Services (1.90%)* |
|
|
|
|
|
|
|
|
|
|
|
|
15,922 |
|
|
|
15,922 |
|
||
|
Internet Consumer & Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Aria Systems, Inc. (11)(14) |
|
Internet Consumer & Business Services |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 3.20% or Floor rate of 6.95%, PIK Interest 1.95%, 1.50% Exit Fee |
|
$ |
2,092 |
|
|
|
2,086 |
|
|
|
1,797 |
|
|
|
|
Internet Consumer & Business Services |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 5.20% or Floor rate of 8.95%, PIK Interest 1.95%, 1.50% Exit Fee |
|
$ |
18,739 |
|
|
|
18,676 |
|
|
|
16,091 |
|
|
Total Aria Systems, Inc. |
|
|
|
|
|
|
|
$ |
20,831 |
|
|
|
20,762 |
|
|
|
17,888 |
|
||
|
Intent Media, Inc. (14)(15) |
|
Internet Consumer & Business Services |
|
Senior Secured |
|
May 2019 |
|
Interest rate PRIME + 5.25% or Floor rate of 8.75%, PIK Interest 1.00%, 2.00% Exit Fee |
|
$ |
5,037 |
|
|
|
4,970 |
|
|
|
4,996 |
|
|
|
|
Internet Consumer & Business Services |
|
Senior Secured |
|
May 2019 |
|
Interest rate PRIME + 5.50% or Floor rate of 9.00%, PIK Interest 2.35%, 2.00% Exit Fee |
|
$ |
2,008 |
|
|
|
1,960 |
|
|
|
1,967 |
|
|
|
|
Internet Consumer & Business Services |
|
Senior Secured |
|
May 2019 |
|
Interest rate PRIME + 5.50% or Floor rate of 9.00%, PIK Interest 2.50%, 2.00% Exit Fee |
|
$ |
2,009 |
|
|
|
1,961 |
|
|
|
1,968 |
|
|
Total Intent Media, Inc. |
|
|
|
|
|
|
|
$ |
9,054 |
|
|
|
8,891 |
|
|
|
8,931 |
|
||
|
LogicSource (15) |
|
Internet Consumer & Business Services |
|
Senior Secured |
|
October 2019 |
|
Interest rate PRIME + 6.25% or Floor rate of 9.75%, 5.00% Exit Fee |
|
$ |
7,237 |
|
|
|
7,438 |
|
|
|
7,507 |
|
|
Snagajob.com, Inc. (13)(14) |
|
Internet Consumer & Business Services |
|
Senior Secured |
|
July 2020 |
|
Interest rate PRIME + 5.15% or Floor rate of 9.15%, PIK Interest 1.95%, 2.55% Exit Fee |
|
$ |
40,821 |
|
|
|
40,256 |
|
|
|
40,779 |
|
|
Tectura Corporation (7)(8)(9)(14) |
|
Internet Consumer & Business Services |
|
Senior Secured |
|
June 2021 |
|
Interest rate FIXED 6.00%, PIK Interest 3.00% |
|
$ |
20,145 |
|
|
|
20,145 |
|
|
|
20,145 |
|
|
|
|
Internet Consumer & Business Services |
|
Senior Secured |
|
June 2021 |
|
PIK Interest 8.00% |
|
$ |
11,015 |
|
|
|
240 |
|
|
|
2,995 |
|
|
Total Tectura Corporation |
|
|
|
|
|
|
|
$ |
31,160 |
|
|
|
20,385 |
|
|
|
23,140 |
|
||
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
97,732 |
|
|
|
98,245 |
|
||
|
Subtotal: Internet Consumer & Business Services (11.75%)* |
|
|
|
|
|
|
|
|
|
|
97,732 |
|
|
|
98,245 |
|
||||
See notes to consolidated financial statements.
10
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Media/Content/Info |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Machine Zone, Inc. (14)(16) |
|
Media/Content/Info |
|
Senior Secured |
|
May 2018 |
|
Interest rate PRIME + 2.50% or Floor rate of 6.75%, PIK Interest 3.00% |
|
$ |
106,179 |
|
|
$ |
105,575 |
|
|
$ |
105,575 |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
105,575 |
|
|
|
105,575 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
FanDuel, Inc. (12) |
|
Media/Content/Info |
|
Senior Secured |
|
November 2019 |
|
Interest rate PRIME + 7.25% or Floor rate of 10.75%, 9.02% Exit Fee |
|
$ |
19,354 |
|
|
|
19,437 |
|
|
|
19,437 |
|
|
WP Technology, Inc. (Wattpad, Inc.) (5)(10)(12) |
|
Media/Content/Info |
|
Senior Secured |
|
April 2020 |
|
Interest rate PRIME + 4.75% or Floor rate of 8.25%, 5.80% Exit Fee |
|
$ |
5,000 |
|
|
|
5,107 |
|
|
|
5,192 |
|
|
|
|
Media/Content/Info |
|
Senior Secured |
|
April 2020 |
|
Interest rate PRIME + 4.75% or Floor rate of 8.25%, 5.80% Exit Fee |
|
$ |
5,000 |
|
|
|
5,038 |
|
|
|
5,106 |
|
|
Total WP Technology, Inc. (Wattpad, Inc.) |
|
|
|
|
|
|
|
$ |
10,000 |
|
|
|
10,145 |
|
|
|
10,298 |
|
||
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
29,582 |
|
|
|
29,735 |
|
||
|
Subtotal: Media/Content/Info (16.18%)* |
|
|
|
|
|
|
|
|
|
|
|
|
135,157 |
|
|
|
135,310 |
|
||
|
Medical Devices & Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Amedica Corporation (9)(15) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
January 2018 |
|
Interest rate PRIME + 7.70% or Floor rate of 10.95%, 8.25% Exit Fee |
|
$ |
2,378 |
|
|
|
4,008 |
|
|
|
4,008 |
|
|
Gamma Medica, Inc. (8)(11) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
January 2018 |
|
Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.00% Exit Fee |
|
$ |
161 |
|
|
|
366 |
|
|
|
— |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
4,374 |
|
|
|
4,008 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Aspire Bariatrics, Inc. (15) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
October 2018 |
|
Interest rate PRIME + 4.00% or Floor rate of 9.25%, 5.42% Exit Fee |
|
$ |
3,244 |
|
|
|
3,524 |
|
|
|
3,486 |
|
|
IntegenX, Inc. (15) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 6.05% or Floor rate of 10.05%, 6.75% Exit Fee |
|
$ |
15,000 |
|
|
|
15,513 |
|
|
|
15,507 |
|
|
|
|
Medical Devices & Equipment |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 6.05% or Floor rate of 10.05%, 9.75% Exit Fee |
|
$ |
2,500 |
|
|
|
2,575 |
|
|
|
2,572 |
|
|
Total IntegenX, Inc. |
|
|
|
|
|
|
|
$ |
17,500 |
|
|
|
18,088 |
|
|
|
18,079 |
|
||
|
Micell Technologies, Inc. (12) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
August 2019 |
|
Interest rate PRIME + 7.25% or Floor rate of 10.50%, 5.00% Exit Fee |
|
$ |
6,200 |
|
|
|
6,332 |
|
|
|
6,410 |
|
|
Quanta Fluid Solutions (5)(10)(11) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
April 2020 |
|
Interest rate PRIME + 8.05% or Floor rate of 11.55%, 5.00% Exit Fee |
|
$ |
10,730 |
|
|
|
10,982 |
|
|
|
10,970 |
|
|
Quanterix Corporation (11) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
March 2019 |
|
Interest rate PRIME + 2.75% or Floor rate of 8.00%, 4.00% Exit Fee |
|
$ |
9,043 |
|
|
|
9,452 |
|
|
|
9,465 |
|
|
Sebacia (15) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
July 2020 |
|
Interest rate PRIME + 4.35% or Floor rate of 8.85%, 6.05% Exit Fee |
|
$ |
8,000 |
|
|
|
7,865 |
|
|
|
7,865 |
|
|
Tela Bio, Inc. (15) |
|
Medical Devices & Equipment |
|
Senior Secured |
|
September 2020 |
|
Interest rate PRIME + 4.95% or Floor rate of 9.45%, 3.15% Exit Fee |
|
$ |
5,000 |
|
|
|
4,969 |
|
|
|
4,948 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
61,212 |
|
|
|
61,223 |
|
||
|
Subtotal: Medical Devices & Equipment (7.80%)* |
|
|
|
|
|
|
|
|
|
|
|
|
65,586 |
|
|
|
65,231 |
|
||
|
Semiconductors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Aquantia Corp. (17) |
|
Semiconductors |
|
Senior Secured |
|
February 2018 |
|
Interest rate PRIME + 3.95% or Floor rate of 7.20% |
|
$ |
5,000 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
5,000 |
|
|
|
5,000 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Achronix Semiconductor Corporation (15) |
|
Semiconductors |
|
Senior Secured |
|
August 2020 |
|
Interest rate PRIME + 7.00% or Floor rate of 11.00%, 12.50% Exit Fee |
|
$ |
5,000 |
|
|
|
5,005 |
|
|
|
5,013 |
|
|
|
|
Semiconductors |
|
Senior Secured |
|
February 2019 |
|
Interest rate PRIME + 6.00% or Floor rate of 10.00% |
|
$ |
5,000 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
Total Achronix Semiconductor Corporation |
|
|
|
|
|
|
|
$ |
10,000 |
|
|
|
10,005 |
|
|
|
10,013 |
|
||
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
10,005 |
|
|
|
10,013 |
|
||
|
Subtotal: Semiconductors (1.80%)* |
|
|
|
|
|
|
|
|
|
|
|
|
15,005 |
|
|
|
15,013 |
|
||
See notes to consolidated financial statements.
11
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Clickfox, Inc. (13) |
|
Software |
|
Senior Secured |
|
May 2018 |
|
Interest rate PRIME + 8.00% or Floor rate of 11.50%, 12.01% Exit Fee |
|
$ |
8,836 |
|
|
$ |
9,870 |
|
|
$ |
9,870 |
|
|
Digital Train Limited (15) |
|
Software |
|
Senior Secured |
|
July 2018 |
|
Interest rate 12-month LIBOR + 2.50% |
|
$ |
5,671 |
|
|
|
5,671 |
|
|
|
4,073 |
|
|
RedSeal Inc. (15)(17) |
|
Software |
|
Senior Secured |
|
June 2018 |
|
Interest rate PRIME + 3.25% or Floor rate of 6.50% |
|
$ |
2,698 |
|
|
|
2,698 |
|
|
|
2,698 |
|
|
|
|
Software |
|
Senior Secured |
|
June 2018 |
|
Interest rate PRIME + 7.75% or Floor rate of 11.00%, 3.95% Exit Fee |
|
$ |
2,888 |
|
|
|
3,032 |
|
|
|
3,032 |
|
|
Total RedSeal Inc. |
|
|
|
|
|
|
|
$ |
5,586 |
|
|
|
5,730 |
|
|
|
5,730 |
|
||
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
21,271 |
|
|
|
19,673 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Clarabridge, Inc. (12)(14) |
|
Software |
|
Senior Secured |
|
April 2021 |
|
Interest rate PRIME + 4.80% or Floor rate of 8.55%, PIK Interest 3.25% |
|
$ |
40,559 |
|
|
|
40,533 |
|
|
|
40,843 |
|
|
Emma, Inc. |
|
Software |
|
Senior Secured |
|
September 2022 |
|
Interest rate daily LIBOR + 7.75% or Floor rate of 8.75% |
|
$ |
50,000 |
|
|
|
48,500 |
|
|
|
48,500 |
|
|
Evernote Corporation (14)(15)(17) |
|
Software |
|
Senior Secured |
|
October 2020 |
|
Interest rate PRIME + 5.45% or Floor rate of 8.95% |
|
$ |
6,000 |
|
|
|
5,970 |
|
|
|
6,126 |
|
|
|
|
Software |
|
Senior Secured |
|
July 2021 |
|
Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 1.25% |
|
$ |
4,010 |
|
|
|
3,984 |
|
|
|
3,984 |
|
|
Total Evernote Corporation |
|
|
|
|
|
|
|
$ |
10,010 |
|
|
|
9,954 |
|
|
|
10,110 |
|
||
|
Fuze, Inc. (14)(15) |
|
Software |
|
Senior Secured |
|
July 2021 |
|
Interest rate PRIME + 3.70% or Floor rate of 7.95%, PIK Interest 1.55%, 3.55% Exit Fee |
|
$ |
50,136 |
|
|
|
50,152 |
|
|
|
50,152 |
|
|
Impact Radius Holdings, Inc. (14) |
|
Software |
|
Senior Secured |
|
December 2020 |
|
Interest rate PRIME + 4.25% or Floor rate of 8.75%, PIK Interest 1.55%, 1.75% Exit Fee |
|
$ |
7,516 |
|
|
|
7,509 |
|
|
|
7,509 |
|
|
OneLogin, Inc. (14)(15) |
|
Software |
|
Senior Secured |
|
August 2019 |
|
Interest rate PRIME + 6.45% or Floor rate of 9.95%, PIK Interest 3.25% |
|
$ |
15,753 |
|
|
|
15,668 |
|
|
|
15,983 |
|
|
Pollen, Inc. (15) |
|
Software |
|
Senior Secured |
|
April 2019 |
|
Interest rate PRIME + 4.25% or Floor rate of 8.50%, 4.00% Exit Fee |
|
$ |
7,000 |
|
|
|
6,905 |
|
|
|
6,905 |
|
|
Quid, Inc. (14)(15) |
|
Software |
|
Senior Secured |
|
October 2019 |
|
Interest rate PRIME + 4.75% or Floor rate of 8.25%, PIK Interest 2.25%, 3.00% Exit Fee |
|
$ |
8,256 |
|
|
|
8,356 |
|
|
|
8,458 |
|
|
RedSeal Inc. (15) |
|
Software |
|
Senior Secured |
|
January 2020 |
|
Interest rate PRIME + 7.75% or Floor rate of 11.25%, 5.95% Exit Fee |
|
$ |
5,000 |
|
|
|
4,970 |
|
|
|
4,973 |
|
|
Signpost, Inc. (14) |
|
Software |
|
Senior Secured |
|
February 2020 |
|
Interest rate PRIME + 4.15% or Floor rate of 8.15%, PIK Interest 1.75%, 3.75% Exit Fee |
|
$ |
15,441 |
|
|
|
15,454 |
|
|
|
15,637 |
|
|
Vela Trading Technologies |
|
Software |
|
Senior Secured |
|
July 2022 |
|
Interest rate daily LIBOR + 9.50% or Floor rate of 10.50% |
|
$ |
20,000 |
|
|
|
19,471 |
|
|
|
19,471 |
|
|
Wrike, Inc. (12)(14)(17) |
|
Software |
|
Senior Secured |
|
February 2021 |
|
Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 2.00%, 3.00% Exit Fee |
|
$ |
10,113 |
|
|
|
9,880 |
|
|
|
9,945 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
237,352 |
|
|
|
238,486 |
|
||
|
Subtotal: Software (30.87%)* |
|
|
|
|
|
|
|
|
|
|
|
|
258,623 |
|
|
|
258,159 |
|
||
See notes to consolidated financial statements.
12
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor (2) |
|
Principal Amount |
|
|
Cost (3) |
|
|
Value (4) |
|
|||
|
Specialty Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Jaguar Animal Health, Inc. (11) |
|
Specialty Pharmaceuticals |
|
Senior Secured |
|
August 2018 |
|
Interest rate PRIME + 5.65% or Floor rate of 9.90%, 7.00% Exit Fee |
|
$ |
1,350 |
|
|
$ |
1,725 |
|
|
$ |
1,725 |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
1,725 |
|
|
|
1,725 |
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Alimera Sciences, Inc. (11)(14) |
|
Specialty Pharmaceuticals |
|
Senior Secured |
|
November 2020 |
|
Interest rate PRIME + 7.50% or Floor rate of 11.00%, PIK Interest 1.00%, 4.00% Exit Fee |
|
$ |
35,308 |
|
|
|
35,282 |
|
|
|
35,635 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
35,282 |
|
|
|
35,635 |
|
||
|
Subtotal: Specialty Pharmaceuticals (4.47%)* |
|
|
|
|
|
|
|
|
|
|
|
|
37,007 |
|
|
|
37,360 |
|
||
|
Surgical Devices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Transmedics, Inc. (13) |
|
Surgical Devices |
|
Senior Secured |
|
February 2020 |
|
Interest rate PRIME + 5.30% or Floor rate of 9.55%, 6.70% Exit Fee |
|
$ |
8,500 |
|
|
|
8,687 |
|
|
|
8,700 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
8,687 |
|
|
|
8,700 |
|
||
|
Subtotal: Surgical Devices (1.04%)* |
|
|
|
|
|
|
|
|
|
|
|
|
8,687 |
|
|
|
8,700 |
|
||
|
Sustainable and Renewable Technology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
FuelCell Energy, Inc. (12) |
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
October 2018 |
|
Interest rate PRIME + 5.50% or Floor rate of 9.50%, 8.50% Exit Fee |
|
$ |
20,000 |
|
|
|
21,161 |
|
|
|
21,223 |
|
|
Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6) |
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
August 2019 |
|
Interest rate PRIME + 8.70% or Floor rate of 12.95%, 4.50% Exit Fee |
|
$ |
15,000 |
|
|
|
14,698 |
|
|
|
14,698 |
|
|
Proterra, Inc. (11) |
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 6.95% or Floor rate of 10.20%, 7.00% Exit Fee |
|
$ |
5,000 |
|
|
|
5,155 |
|
|
|
5,178 |
|
|
|
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 6.95% or Floor rate of 10.20%, 5.95% Exit Fee |
|
$ |
25,000 |
|
|
|
25,992 |
|
|
|
25,951 |
|
|
|
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
June 2019 |
|
Interest rate PRIME + 5.75% or Floor rate of 9.25%, 4.95% Exit Fee |
|
$ |
10,000 |
|
|
|
10,179 |
|
|
|
10,193 |
|
|
Total Proterra, Inc. |
|
|
|
|
|
|
|
$ |
40,000 |
|
|
|
41,326 |
|
|
|
41,322 |
|
||
|
Rive Technology, Inc. (15) |
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
January 2019 |
|
Interest rate PRIME + 6.20% or Floor rate of 9.45%, 4.00% Exit Fee |
|
$ |
5,172 |
|
|
|
5,381 |
|
|
|
5,414 |
|
|
Tendril Networks (12) |
|
Sustainable and Renewable Technology |
|
Senior Secured |
|
June 2019 |
|
Interest rate FIXED 9.25%, 8.50% Exit Fee |
|
$ |
13,156 |
|
|
|
13,903 |
|
|
|
13,883 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
96,469 |
|
|
|
96,540 |
|
||
|
Subtotal: Sustainable and Renewable Technology (11.54%)* |
|
|
|
|
|
|
|
|
96,469 |
|
|
|
96,540 |
|
||||||
|
Total: Debt Investments (155.46%)* |
|
|
|
|
|
|
|
|
|
|
|
|
1,314,326 |
|
|
|
1,300,068 |
|
||
See notes to consolidated financial statements.
13
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 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. (7)(15) |
|
Communications & Networking |
|
Equity |
|
Common Stock |
|
|
100 |
|
|
|
3,100 |
|
|
|
242 |
|
|
GlowPoint, Inc. (4) |
|
Communications & Networking |
|
Equity |
|
Common Stock |
|
|
114,192 |
|
|
|
102 |
|
|
|
29 |
|
|
Peerless Network Holdings, Inc. |
|
Communications & Networking |
|
Equity |
|
Preferred Series A |
|
|
1,000,000 |
|
|
|
1,000 |
|
|
|
4,897 |
|
|
Subtotal: Communications & Networking (0.62%)* |
|
|
|
|
|
|
|
|
|
|
4,202 |
|
|
|
5,168 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Singulex, Inc. |
|
Diagnostic |
|
Equity |
|
Common Stock |
|
|
937,998 |
|
|
|
750 |
|
|
|
708 |
|
|
Subtotal: Diagnostic (0.08%)* |
|
|
|
|
|
|
|
|
|
|
750 |
|
|
|
708 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drug Delivery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
AcelRx Pharmaceuticals, Inc. (4)(10) |
|
Drug Delivery |
|
Equity |
|
Common Stock |
|
|
54,240 |
|
|
|
108 |
|
|
|
249 |
|
|
BioQ Pharma Incorporated (15) |
|
Drug Delivery |
|
Equity |
|
Preferred Series D |
|
|
165,000 |
|
|
|
500 |
|
|
|
774 |
|
|
Edge Therapeutics, Inc. (4) |
|
Drug Delivery |
|
Equity |
|
Common Stock |
|
|
49,965 |
|
|
|
309 |
|
|
|
536 |
|
|
Neos Therapeutics, Inc. (4)(15) |
|
Drug Delivery |
|
Equity |
|
Common Stock |
|
|
125,000 |
|
|
|
1,500 |
|
|
|
1,144 |
|
|
Revance Therapeutics, Inc. (4) |
|
Drug Delivery |
|
Equity |
|
Common Stock |
|
|
22,765 |
|
|
|
557 |
|
|
|
627 |
|
|
Subtotal: Drug Delivery (0.40%)* |
|
|
|
|
|
|
|
|
|
|
2,974 |
|
|
|
3,330 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drug Discovery & Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Aveo Pharmaceuticals, Inc. (4)(10)(15) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
1,901,791 |
|
|
|
1,715 |
|
|
|
6,944 |
|
|
Axovant Sciences Ltd. (4)(5)(10) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
129,827 |
|
|
|
1,270 |
|
|
|
437 |
|
|
Cerecor, Inc. (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
119,087 |
|
|
|
1,000 |
|
|
|
101 |
|
|
Dare Biosciences, Inc. (p.k.a. Cerulean Pharma, Inc.) (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
13,550 |
|
|
|
1,000 |
|
|
|
42 |
|
|
Dicerna Pharmaceuticals, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
142,858 |
|
|
|
1,000 |
|
|
|
821 |
|
|
Dynavax Technologies (4)(10) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
20,000 |
|
|
|
550 |
|
|
|
430 |
|
|
Epirus Biopharmaceuticals, Inc. (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
200,000 |
|
|
|
1,000 |
|
|
|
— |
|
|
Genocea Biosciences, Inc. (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
223,463 |
|
|
|
2,000 |
|
|
|
326 |
|
|
Inotek Pharmaceuticals Corporation (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
3,778 |
|
|
|
1,500 |
|
|
|
7 |
|
|
Insmed, Incorporated (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
70,771 |
|
|
|
1,000 |
|
|
|
2,209 |
|
|
Melinta Therapeutics |
|
Drug Discovery & Development |
|
Equity |
|
Preferred Series 4 |
|
|
1,914,448 |
|
|
|
2,000 |
|
|
|
888 |
|
|
Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (4) |
|
Drug Discovery & Development |
|
Equity |
|
Common Stock |
|
|
76,362 |
|
|
|
2,743 |
|
|
|
1,917 |
|
|
Subtotal: Drug Discovery & Development (1.69%)* |
|
|
|
|
|
|
|
|
|
|
16,778 |
|
|
|
14,122 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics & Computer Hardware |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Identiv, Inc. (4) |
|
Electronics & Computer Hardware |
|
Equity |
|
Common Stock |
|
|
6,700 |
|
|
|
34 |
|
|
|
31 |
|
|
Subtotal: Electronics & Computer Hardware (0.00%)* |
|
|
|
|
|
|
|
|
|
|
34 |
|
|
|
31 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
DocuSign, Inc. |
|
Information Services |
|
Equity |
|
Common Stock |
|
|
385,000 |
|
|
|
6,081 |
|
|
|
7,425 |
|
|
Subtotal: Information Services (0.89%)* |
|
|
|
|
|
|
|
|
|
|
6,081 |
|
|
|
7,425 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet Consumer & Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Blurb, Inc. (15) |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series B |
|
|
220,653 |
|
|
|
175 |
|
|
|
33 |
|
|
Brigade Group, Inc. (p.k.a. Philotic, Inc.) |
|
Internet Consumer & Business Services |
|
Equity |
|
Common Stock |
|
|
9,023 |
|
|
|
93 |
|
|
|
— |
|
|
Lightspeed POS, Inc. (5)(10) |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series C |
|
|
230,030 |
|
|
|
250 |
|
|
|
265 |
|
|
|
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series D |
|
|
198,677 |
|
|
|
250 |
|
|
|
256 |
|
|
Total Lightspeed POS, Inc. |
|
|
|
|
|
|
|
|
428,707 |
|
|
|
500 |
|
|
|
521 |
|
|
OfferUp, Inc. |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series A |
|
|
286,080 |
|
|
|
1,663 |
|
|
|
2,121 |
|
|
|
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series A-1 |
|
|
108,710 |
|
|
|
632 |
|
|
|
806 |
|
|
Total OfferUp, Inc. |
|
|
|
|
|
|
|
|
394,790 |
|
|
|
2,295 |
|
|
|
2,927 |
|
|
Oportun (p.k.a. Progress Financial) |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series G |
|
|
218,351 |
|
|
|
250 |
|
|
|
448 |
|
|
|
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series H |
|
|
87,802 |
|
|
|
250 |
|
|
|
259 |
|
|
Total Oportun (p.k.a. Progress Financial) |
|
|
|
|
|
|
|
|
306,153 |
|
|
|
500 |
|
|
|
707 |
|
|
RazorGator Interactive Group, Inc. |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series AA |
|
|
34,783 |
|
|
|
15 |
|
|
|
51 |
|
|
Tectura Corporation (7) |
|
Internet Consumer & Business Services |
|
Equity |
|
Preferred Series BB |
|
|
1,000,000 |
|
|
|
— |
|
|
|
— |
|
|
Subtotal: Internet Consumer & Business Services (0.51%)* |
|
|
|
|
|
|
|
|
|
|
3,578 |
|
|
|
4,239 |
|
||
See notes to consolidated financial statements.
14
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 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 |
|
|
$ |
4,773 |
|
|
Subtotal: Media/Content/Info (0.57%)* |
|
|
|
|
|
|
|
|
|
|
4,085 |
|
|
|
4,773 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Devices & Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
AtriCure, Inc. (4)(15) |
|
Medical Devices & Equipment |
|
Equity |
|
Common Stock |
|
|
7,536 |
|
|
|
266 |
|
|
|
169 |
|
|
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 |
|
|
|
— |
|
|
|
848 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series A-1 |
|
|
191,210 |
|
|
|
425 |
|
|
|
919 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series A-2 |
|
|
191,626 |
|
|
|
500 |
|
|
|
868 |
|
|
Total Gelesis, Inc. |
|
|
|
|
|
|
|
|
581,038 |
|
|
|
925 |
|
|
|
2,635 |
|
|
HercGamma, Inc. (7) |
|
Medical Devices & Equipment |
|
Equity |
|
Common Stock |
|
|
100 |
|
|
|
523 |
|
|
|
— |
|
|
Medrobotics Corporation (15) |
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series E |
|
|
136,798 |
|
|
|
250 |
|
|
|
254 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series F |
|
|
73,971 |
|
|
|
155 |
|
|
|
196 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series G |
|
|
163,934 |
|
|
|
500 |
|
|
|
504 |
|
|
Total Medrobotics Corporation |
|
|
|
|
|
|
|
|
374,703 |
|
|
|
905 |
|
|
|
954 |
|
|
Optiscan Biomedical, Corp. (6)(15) |
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series B |
|
|
6,185,567 |
|
|
|
3,000 |
|
|
|
389 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series C |
|
|
1,927,309 |
|
|
|
655 |
|
|
|
110 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series D |
|
|
55,103,923 |
|
|
|
5,257 |
|
|
|
3,907 |
|
|
|
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series E |
|
|
15,638,888 |
|
|
|
1,308 |
|
|
|
1,496 |
|
|
Total Optiscan Biomedical, Corp. |
|
|
|
|
|
|
|
|
78,855,687 |
|
|
|
10,220 |
|
|
|
5,902 |
|
|
Outset Medical, Inc. (p.k.a. Home Dialysis Plus, Inc.) |
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series B |
|
|
232,061 |
|
|
|
527 |
|
|
|
579 |
|
|
Quanterix Corporation |
|
Medical Devices & Equipment |
|
Equity |
|
Preferred Series D |
|
|
272,479 |
|
|
|
1,000 |
|
|
|
1,135 |
|
|
Subtotal: Medical Devices & Equipment (1.36%)* |
|
|
|
|
|
|
|
|
|
|
15,866 |
|
|
|
11,374 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
CapLinked, Inc. |
|
Software |
|
Equity |
|
Preferred Series A-3 |
|
|
53,614 |
|
|
|
51 |
|
|
|
90 |
|
|
Druva, Inc. |
|
Software |
|
Equity |
|
Preferred Series 2 |
|
|
458,841 |
|
|
|
1,000 |
|
|
|
987 |
|
|
|
|
Software |
|
Equity |
|
Preferred Series 3 |
|
|
93,620 |
|
|
|
300 |
|
|
|
306 |
|
|
Total Druva, Inc. |
|
|
|
|
|
|
|
|
552,461 |
|
|
|
1,300 |
|
|
|
1,293 |
|
|
ForeScout Technologies, Inc. |
|
Software |
|
Equity |
|
Preferred Series D |
|
|
319,099 |
|
|
|
398 |
|
|
|
2,675 |
|
|
|
|
Software |
|
Equity |
|
Preferred Series E |
|
|
80,587 |
|
|
|
131 |
|
|
|
676 |
|
|
Total ForeScout Technologies, Inc. |
|
|
|
|
|
|
|
|
399,686 |
|
|
|
529 |
|
|
|
3,351 |
|
|
HighRoads, Inc. |
|
Software |
|
Equity |
|
Common Stock |
|
|
190 |
|
|
|
307 |
|
|
|
— |
|
|
NewVoiceMedia Limited (5)(10) |
|
Software |
|
Equity |
|
Preferred Series E |
|
|
669,173 |
|
|
|
963 |
|
|
|
1,378 |
|
|
Palantir Technologies |
|
Software |
|
Equity |
|
Preferred Series E |
|
|
727,696 |
|
|
|
5,431 |
|
|
|
5,379 |
|
|
Sprinklr, Inc. |
|
Software |
|
Equity |
|
Common Stock |
|
|
700,000 |
|
|
|
3,749 |
|
|
|
4,259 |
|
|
WildTangent, Inc. (15) |
|
Software |
|
Equity |
|
Preferred Series 3 |
|
|
100,000 |
|
|
|
402 |
|
|
|
182 |
|
|
Subtotal: Software (1.91%)* |
|
|
|
|
|
|
|
|
|
|
12,732 |
|
|
|
15,932 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical Devices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Gynesonics, Inc. (15) |
|
Surgical Devices |
|
Equity |
|
Preferred Series B |
|
|
219,298 |
|
|
|
250 |
|
|
|
39 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series C |
|
|
656,538 |
|
|
|
282 |
|
|
|
54 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series D |
|
|
1,991,157 |
|
|
|
712 |
|
|
|
694 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series E |
|
|
2,786,367 |
|
|
|
429 |
|
|
|
460 |
|
|
Total Gynesonics, Inc. |
|
|
|
|
|
|
|
|
5,653,360 |
|
|
|
1,673 |
|
|
|
1,247 |
|
|
Transmedics, Inc. |
|
Surgical Devices |
|
Equity |
|
Preferred Series B |
|
|
88,961 |
|
|
|
1,100 |
|
|
|
342 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series C |
|
|
119,999 |
|
|
|
300 |
|
|
|
306 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series D |
|
|
260,000 |
|
|
|
650 |
|
|
|
889 |
|
|
|
|
Surgical Devices |
|
Equity |
|
Preferred Series F |
|
|
100,200 |
|
|
|
500 |
|
|
|
504 |
|
|
Total Transmedics, Inc. |
|
|
|
|
|
|
|
|
569,160 |
|
|
|
2,550 |
|
|
|
2,041 |
|
|
Subtotal: Surgical Devices (0.39%)* |
|
|
|
|
|
|
|
|
|
|
4,223 |
|
|
|
3,288 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. (4) |
|
Sustainable and Renewable Technology |
|
Equity |
|
Common Stock |
|
|
18,208 |
|
|
|
165 |
|
|
|
— |
|
|
Modumetal, Inc. |
|
Sustainable and Renewable Technology |
|
Equity |
|
Preferred Series C |
|
|
3,107,520 |
|
|
|
500 |
|
|
|
575 |
|
|
Proterra, Inc. |
|
Sustainable and Renewable Technology |
|
Equity |
|
Preferred Series 5 |
|
|
99,280 |
|
|
|
500 |
|
|
|
528 |
|
|
Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6) |
|
Sustainable and Renewable Technology |
|
Equity |
|
Common Stock |
|
|
288 |
|
|
|
61,502 |
|
|
|
12,824 |
|
|
Subtotal: Sustainable and Renewable Technology (1.67%)* |
|
|
|
|
|
|
|
|
|
|
63,428 |
|
|
|
13,927 |
|
||
|
Total: Equity Investments (10.08%)* |
|
|
|
|
|
|
|
|
|
|
135,231 |
|
|
|
84,317 |
|
||
See notes to consolidated financial statements.
15
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Series |
|
Shares |
|
|
Cost (2) |
|
|
Value (3) |
|
|||
|
Warrant Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Biotechnology Tools |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Labcyte, Inc. (15) |
|
Biotechnology Tools |
|
Warrant |
|
Preferred Series C |
|
|
1,127,624 |
|
|
$ |
323 |
|
|
$ |
426 |
|
|
Subtotal: Biotechnology Tools (0.05%)* |
|
|
|
|
|
|
|
|
|
|
323 |
|
|
|
426 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications & Networking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
PeerApp, Inc. |
|
Communications & Networking |
|
Warrant |
|
Preferred Series B |
|
|
298,779 |
|
|
|
61 |
|
|
|
— |
|
|
Peerless Network Holdings, Inc. |
|
Communications & Networking |
|
Warrant |
|
Preferred Series A |
|
|
135,000 |
|
|
|
95 |
|
|
|
379 |
|
|
Spring Mobile Solutions, Inc. |
|
Communications & Networking |
|
Warrant |
|
Common Stock |
|
|
2,834,375 |
|
|
|
418 |
|
|
|
— |
|
|
Subtotal: Communications & Networking (0.05%)* |
|
|
|
|
|
|
|
|
|
|
574 |
|
|
|
379 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
231 |
|
|
The Neat Company (15) |
|
Consumer & Business Products |
|
Warrant |
|
Preferred Series C-1 |
|
|
540,540 |
|
|
|
365 |
|
|
|
— |
|
|
Subtotal: Consumer & Business Products (0.03%)* |
|
|
|
|
|
|
|
|
|
|
823 |
|
|
|
231 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drug Delivery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
AcelRx Pharmaceuticals, Inc. (4)(10)(15) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
176,730 |
|
|
|
786 |
|
|
|
264 |
|
|
Agile Therapeutics, Inc. (4) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
180,274 |
|
|
|
730 |
|
|
|
183 |
|
|
BioQ Pharma Incorporated |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
459,183 |
|
|
|
1 |
|
|
|
838 |
|
|
Celsion Corporation (4) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
13,927 |
|
|
|
428 |
|
|
|
— |
|
|
Dance Biopharm, Inc. (15) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
110,882 |
|
|
|
74 |
|
|
|
— |
|
|
Edge Therapeutics, Inc. (4) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
78,595 |
|
|
|
390 |
|
|
|
301 |
|
|
Kaleo, Inc. (p.k.a. Intelliject, Inc.) |
|
Drug Delivery |
|
Warrant |
|
Preferred Series B |
|
|
82,500 |
|
|
|
594 |
|
|
|
1,032 |
|
|
Neos Therapeutics, Inc. (4)(15) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
70,833 |
|
|
|
285 |
|
|
|
117 |
|
|
Pulmatrix Inc. (4) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
25,150 |
|
|
|
116 |
|
|
|
10 |
|
|
ZP Opco, Inc. (p.k.a. Zosano Pharma) (4) |
|
Drug Delivery |
|
Warrant |
|
Common Stock |
|
|
72,379 |
|
|
|
266 |
|
|
|
1 |
|
|
Subtotal: Drug Delivery (0.33%)* |
|
|
|
|
|
|
|
|
|
|
3,670 |
|
|
|
2,746 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drug Discovery & Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
ADMA Biologics, Inc. (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
89,750 |
|
|
|
295 |
|
|
|
8 |
|
|
Anthera Pharmaceuticals, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
5,022 |
|
|
|
984 |
|
|
|
— |
|
|
Audentes Therapeutics, Inc. (4)(10)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
9,914 |
|
|
|
62 |
|
|
|
136 |
|
|
Auris Medical Holding, AG (4)(5)(10) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
156,726 |
|
|
|
249 |
|
|
|
26 |
|
|
Brickell Biotech, Inc. |
|
Drug Discovery & Development |
|
Warrant |
|
Preferred Series C |
|
|
26,086 |
|
|
|
119 |
|
|
|
— |
|
|
Cerecor, Inc. (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
22,328 |
|
|
|
70 |
|
|
|
— |
|
|
Chroma Therapeutics, Ltd. (5)(10) |
|
Drug Discovery & Development |
|
Warrant |
|
Preferred Series D |
|
|
325,261 |
|
|
|
490 |
|
|
|
— |
|
|
Cleveland BioLabs, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
7,813 |
|
|
|
105 |
|
|
|
2 |
|
|
Concert Pharmaceuticals, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
132,069 |
|
|
|
545 |
|
|
|
413 |
|
|
CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.) (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
29,239 |
|
|
|
165 |
|
|
|
4 |
|
|
CytRx Corporation (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
634,146 |
|
|
|
160 |
|
|
|
106 |
|
|
Dare Biosciences, Inc. (p.k.a. Cerulean Pharma, Inc.) (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
17,190 |
|
|
|
369 |
|
|
|
— |
|
|
Dicerna Pharmaceuticals, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
200 |
|
|
|
28 |
|
|
|
— |
|
|
Epirus Biopharmaceuticals, Inc. (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
64,194 |
|
|
|
276 |
|
|
|
— |
|
|
Fortress Biotech, Inc. (p.k.a. Coronado Biosciences, Inc.) (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
73,009 |
|
|
|
142 |
|
|
|
41 |
|
|
Genocea Biosciences, Inc. (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
73,725 |
|
|
|
266 |
|
|
|
13 |
|
|
Immune Pharmaceuticals (4) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
10,742 |
|
|
|
164 |
|
|
|
— |
|
|
Melinta Therapeutics |
|
Drug Discovery & Development |
|
Warrant |
|
Preferred Series 3 |
|
|
1,382,323 |
|
|
|
626 |
|
|
|
80 |
|
|
Nanotherapeutics, Inc. (15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
171,389 |
|
|
|
838 |
|
|
|
78 |
|
|
Neothetics, Inc. (p.k.a. Lithera, Inc.) (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
46,838 |
|
|
|
266 |
|
|
|
10 |
|
|
Neuralstem, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
5,783 |
|
|
|
77 |
|
|
|
— |
|
|
Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
75,214 |
|
|
|
178 |
|
|
|
516 |
|
|
PhaseRx, Inc. (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
63,000 |
|
|
|
125 |
|
|
|
2 |
|
|
Savara Inc. (p.k.a. Mast Therapeutics, Inc.) (4)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
32,467 |
|
|
|
203 |
|
|
|
107 |
|
|
Sorrento Therapeutics, Inc. (4)(10) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
306,748 |
|
|
|
889 |
|
|
|
106 |
|
|
Stealth Bio Therapeutics Corp. (5)(10) |
|
Drug Discovery & Development |
|
Warrant |
|
Preferred Series A |
|
|
487,500 |
|
|
|
116 |
|
|
|
130 |
|
|
uniQure B.V. (4)(5)(10) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
37,174 |
|
|
|
218 |
|
|
|
38 |
|
|
XOMA Corporation (4)(10)(15) |
|
Drug Discovery & Development |
|
Warrant |
|
Common Stock |
|
|
9,063 |
|
|
|
279 |
|
|
|
14 |
|
|
Subtotal: Drug Discovery & Development (0.22%)* |
|
|
|
|
|
|
|
|
|
|
8,304 |
|
|
|
1,830 |
|
||
See notes to consolidated financial statements.
16
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Series |
|
Shares |
|
|
Cost (2) |
|
|
Value (3) |
|
|||
|
Electronics & Computer Hardware |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
908 DEVICES INC. (15) |
|
Electronics & Computer Hardware |
|
Warrant |
|
Preferred Series D |
|
|
79,856 |
|
|
$ |
100 |
|
|
$ |
107 |
|
|
Clustrix, Inc. |
|
Electronics & Computer Hardware |
|
Warrant |
|
Common Stock |
|
|
50,000 |
|
|
|
12 |
|
|
|
— |
|
|
Subtotal: Electronics & Computer Hardware (0.01%)* |
|
|
|
|
|
|
|
|
|
|
112 |
|
|
|
107 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare Services, Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Chromadex Corporation (4)(15) |
|
Healthcare Services, Other |
|
Warrant |
|
Common Stock |
|
|
139,673 |
|
|
|
157 |
|
|
|
184 |
|
|
Subtotal: Healthcare Services, Other (0.02%)* |
|
|
|
|
|
|
|
|
|
|
157 |
|
|
|
184 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
INMOBI Inc. (5)(10) |
|
Information Services |
|
Warrant |
|
Common Stock |
|
|
65,587 |
|
|
|
82 |
|
|
|
— |
|
|
InXpo, Inc. (15) |
|
Information Services |
|
Warrant |
|
Preferred Series C |
|
|
648,400 |
|
|
|
98 |
|
|
|
17 |
|
|
|
|
Information Services |
|
Warrant |
|
Preferred Series C-1 |
|
|
1,165,183 |
|
|
|
74 |
|
|
|
29 |
|
|
Total InXpo, Inc. |
|
|
|
|
|
|
|
|
1,813,583 |
|
|
|
172 |
|
|
|
46 |
|
|
MDX Medical, Inc. (15) |
|
Information Services |
|
Warrant |
|
Common Stock |
|
|
2,250,000 |
|
|
|
246 |
|
|
|
254 |
|
|
Netbase Solutions, Inc. |
|
Information Services |
|
Warrant |
|
Preferred Series 1 |
|
|
60,000 |
|
|
|
355 |
|
|
|
351 |
|
|
RichRelevance, Inc. (15) |
|
Information Services |
|
Warrant |
|
Preferred Series E |
|
|
112,612 |
|
|
|
98 |
|
|
|
— |
|
|
Subtotal: Information Services (0.08%)* |
|
|
|
|
|
|
|
|
|
|
953 |
|
|
|
651 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
. |
|
|
|
Internet Consumer & Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Aria Systems, Inc. |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series G |
|
|
231,535 |
|
|
|
73 |
|
|
|
— |
|
|
Blurb, Inc. (15) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series C |
|
|
234,280 |
|
|
|
636 |
|
|
|
5 |
|
|
ClearObject, Inc. (p.k.a. CloudOne, Inc.) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series E |
|
|
968,992 |
|
|
|
19 |
|
|
|
156 |
|
|
Intent Media, Inc. (15) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Common Stock |
|
|
140,077 |
|
|
|
168 |
|
|
|
206 |
|
|
Just Fabulous, Inc. |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series B |
|
|
206,184 |
|
|
|
1,102 |
|
|
|
2,300 |
|
|
Lightspeed POS, Inc. (5)(10) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series C |
|
|
245,610 |
|
|
|
20 |
|
|
|
41 |
|
|
LogicSource (15) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series C |
|
|
79,625 |
|
|
|
30 |
|
|
|
35 |
|
|
Oportun (p.k.a. Progress Financial) |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series G |
|
|
174,562 |
|
|
|
78 |
|
|
|
186 |
|
|
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 |
|
|
1,800,000 |
|
|
|
782 |
|
|
|
1,311 |
|
|
Tapjoy, Inc. |
|
Internet Consumer & Business Services |
|
Warrant |
|
Preferred Series D |
|
|
748,670 |
|
|
|
316 |
|
|
|
10 |
|
|
Subtotal: Internet Consumer & Business Services (0.51%)* |
|
|
|
|
|
|
|
|
|
|
3,771 |
|
|
|
4,250 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media/Content/Info |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
FanDuel, Inc. |
|
Media/Content/Info |
|
Warrant |
|
Preferred Series A |
|
|
4,648 |
|
|
|
730 |
|
|
|
1,875 |
|
|
|
|
Media/Content/Info |
|
Warrant |
|
Common Stock |
|
|
15,570 |
|
|
|
— |
|
|
|
— |
|
|
Total FanDuel, Inc. |
|
|
|
|
|
|
|
|
20,218 |
|
|
|
730 |
|
|
|
1,875 |
|
|
Machine Zone, Inc. (16) |
|
Media/Content/Info |
|
Warrant |
|
Common Stock |
|
|
1,552,710 |
|
|
|
1,958 |
|
|
|
4,833 |
|
|
Rhapsody International, Inc. (15) |
|
Media/Content/Info |
|
Warrant |
|
Common Stock |
|
|
715,755 |
|
|
|
385 |
|
|
|
125 |
|
|
WP Technology, Inc. (Wattpad, Inc.) (5)(10) |
|
Media/Content/Info |
|
Warrant |
|
Common Stock |
|
|
255,818 |
|
|
|
4 |
|
|
|
8 |
|
|
Zoom Media Group, Inc. |
|
Media/Content/Info |
|
Warrant |
|
Preferred Series A |
|
|
1,204 |
|
|
|
348 |
|
|
|
32 |
|
|
Subtotal: Media/Content/Info (0.82%)* |
|
|
|
|
|
|
|
|
|
|
3,425 |
|
|
|
6,873 |
|
||
See notes to consolidated financial statements.
17
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Series |
|
Shares |
|
|
Cost (2) |
|
|
Value (3) |
|
|||
|
Medical Devices & Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Amedica Corporation (4)(15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Common Stock |
|
|
103,225 |
|
|
$ |
459 |
|
|
$ |
2 |
|
|
Aspire Bariatrics, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series B-1 |
|
|
112,858 |
|
|
|
455 |
|
|
|
108 |
|
|
Avedro, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series AA |
|
|
300,000 |
|
|
|
401 |
|
|
|
309 |
|
|
Flowonix Medical Incorporated |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series AA |
|
|
155,325 |
|
|
|
362 |
|
|
|
— |
|
|
Gelesis, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series A-1 |
|
|
74,784 |
|
|
|
78 |
|
|
|
200 |
|
|
InspireMD, Inc. (4)(5)(10) |
|
Medical Devices & Equipment |
|
Warrant |
|
Common Stock |
|
|
39,364 |
|
|
|
242 |
|
|
|
— |
|
|
IntegenX, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series C |
|
|
547,752 |
|
|
|
15 |
|
|
|
24 |
|
|
Medrobotics Corporation (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series E |
|
|
455,539 |
|
|
|
370 |
|
|
|
388 |
|
|
Micell Technologies, Inc. |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series D-2 |
|
|
84,955 |
|
|
|
262 |
|
|
|
241 |
|
|
NetBio, Inc. |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series A |
|
|
7,841 |
|
|
|
408 |
|
|
|
107 |
|
|
NinePoint Medical, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series A-1 |
|
|
587,840 |
|
|
|
170 |
|
|
|
95 |
|
|
Optiscan Biomedical, Corp. (6)(15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series D |
|
|
10,535,275 |
|
|
|
1,252 |
|
|
|
161 |
|
|
Outset Medical, Inc. (p.k.a. Home Dialysis Plus, Inc.) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series A |
|
|
500,000 |
|
|
|
402 |
|
|
|
446 |
|
|
Quanterix Corporation |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series C |
|
|
173,428 |
|
|
|
180 |
|
|
|
94 |
|
|
|
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series D |
|
|
38,828 |
|
|
|
25 |
|
|
|
19 |
|
|
Total Quanterix Corporation |
|
|
|
|
|
|
|
|
212,256 |
|
|
|
205 |
|
|
|
113 |
|
|
Sebacia, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series D |
|
|
778,301 |
|
|
|
133 |
|
|
|
133 |
|
|
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.) (4) |
|
Medical Devices & Equipment |
|
Warrant |
|
Common Stock |
|
|
13,864 |
|
|
|
401 |
|
|
|
— |
|
|
Tela Bio, Inc. (15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Preferred Series B |
|
|
129,310 |
|
|
|
20 |
|
|
|
10 |
|
|
ViewRay, Inc. (4)(15) |
|
Medical Devices & Equipment |
|
Warrant |
|
Common Stock |
|
|
128,231 |
|
|
|
333 |
|
|
|
164 |
|
|
Subtotal: Medical Devices & Equipment (0.30%)* |
|
|
|
|
|
|
|
|
|
|
6,156 |
|
|
|
2,501 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semiconductors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Achronix Semiconductor Corporation (15) |
|
Semiconductors |
|
Warrant |
|
Preferred Series C |
|
|
360,000 |
|
|
|
160 |
|
|
|
80 |
|
|
|
|
Semiconductors |
|
Warrant |
|
Preferred Series D-2 |
|
|
750,000 |
|
|
|
99 |
|
|
|
358 |
|
|
Total Achronix Semiconductor Corporation |
|
|
|
|
|
|
|
|
1,110,000 |
|
|
|
259 |
|
|
|
438 |
|
|
Aquantia Corp. |
|
Semiconductors |
|
Warrant |
|
Preferred Series G |
|
|
196,831 |
|
|
|
4 |
|
|
|
172 |
|
|
Avnera Corporation |
|
Semiconductors |
|
Warrant |
|
Preferred Series E |
|
|
141,567 |
|
|
|
46 |
|
|
|
157 |
|
|
Subtotal: Semiconductors (0.09%)* |
|
|
|
|
|
|
|
|
|
|
309 |
|
|
|
767 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Actifio, Inc. |
|
Software |
|
Warrant |
|
Common Stock |
|
|
73,584 |
|
|
|
249 |
|
|
|
75 |
|
|
|
|
Software |
|
Warrant |
|
Preferred Series F |
|
|
31,673 |
|
|
|
343 |
|
|
|
65 |
|
|
Total Actifio, Inc. |
|
|
|
|
|
|
|
|
105,257 |
|
|
|
592 |
|
|
|
140 |
|
|
Braxton Technologies, LLC |
|
Software |
|
Warrant |
|
Preferred Series A |
|
|
168,750 |
|
|
|
188 |
|
|
|
— |
|
|
CareCloud Corporation (15) |
|
Software |
|
Warrant |
|
Preferred Series B |
|
|
413,433 |
|
|
|
258 |
|
|
|
669 |
|
|
Clickfox, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series B |
|
|
1,038,563 |
|
|
|
330 |
|
|
|
580 |
|
|
|
|
Software |
|
Warrant |
|
Preferred Series C |
|
|
592,019 |
|
|
|
730 |
|
|
|
446 |
|
|
|
|
Software |
|
Warrant |
|
Preferred Series C-A |
|
|
2,218,214 |
|
|
|
230 |
|
|
|
4,628 |
|
|
Total Clickfox, Inc. |
|
|
|
|
|
|
|
|
3,848,796 |
|
|
|
1,290 |
|
|
|
5,654 |
|
|
Evernote Corporation (15) |
|
Software |
|
Warrant |
|
Common Stock |
|
|
62,500 |
|
|
|
106 |
|
|
|
139 |
|
|
Fuze, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series F |
|
|
256,158 |
|
|
|
89 |
|
|
|
108 |
|
|
Mattersight Corporation (4) |
|
Software |
|
Warrant |
|
Common Stock |
|
|
357,143 |
|
|
|
538 |
|
|
|
214 |
|
|
Message Systems, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series C |
|
|
503,718 |
|
|
|
334 |
|
|
|
373 |
|
|
Mobile Posse, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series C |
|
|
396,430 |
|
|
|
130 |
|
|
|
238 |
|
|
Neos, Inc. (15) |
|
Software |
|
Warrant |
|
Common Stock |
|
|
221,150 |
|
|
|
22 |
|
|
|
12 |
|
|
NewVoiceMedia Limited (5)(10) |
|
Software |
|
Warrant |
|
Preferred Series E |
|
|
225,586 |
|
|
|
33 |
|
|
|
135 |
|
|
OneLogin, Inc. (15) |
|
Software |
|
Warrant |
|
Common Stock |
|
|
228,972 |
|
|
|
150 |
|
|
|
293 |
|
|
Poplicus, Inc. |
|
Software |
|
Warrant |
|
Common Stock |
|
|
132,168 |
|
|
|
— |
|
|
|
— |
|
|
Quid, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series D |
|
|
71,576 |
|
|
|
1 |
|
|
|
6 |
|
|
RedSeal Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series C-Prime |
|
|
640,603 |
|
|
|
66 |
|
|
|
36 |
|
|
Signpost, Inc. |
|
Software |
|
Warrant |
|
Preferred Series C |
|
|
324,005 |
|
|
|
314 |
|
|
|
106 |
|
|
Sonian, Inc. (15) |
|
Software |
|
Warrant |
|
Preferred Series C |
|
|
185,949 |
|
|
|
106 |
|
|
|
97 |
|
|
Wrike, Inc. |
|
Software |
|
Warrant |
|
Common Stock |
|
|
698,760 |
|
|
|
462 |
|
|
|
1,108 |
|
|
Subtotal: Software (1.12%)* |
|
|
|
|
|
|
|
|
|
|
4,679 |
|
|
|
9,328 |
|
||
See notes to consolidated financial statements.
18
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2017
(unaudited)
(dollars in thousands)
|
Portfolio Company |
|
Sub-Industry |
|
Type of Investment (1) |
|
Series |
|
Shares |
|
|
Cost (2) |
|
|
Value (3) |
|
|||
|
Specialty Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Alimera Sciences, Inc. (4) |
|
Specialty Pharmaceuticals |
|
Warrant |
|
Common Stock |
|
|
1,717,709 |
|
|
$ |
861 |
|
|
$ |
515 |
|
|
Subtotal: Specialty Pharmaceuticals (0.06%)* |
|
|
|
|
|
|
|
|
|
|
861 |
|
|
|
515 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
252 |
|
|
Total Gynesonics, Inc. |
|
|
|
|
|
|
|
|
1,756,445 |
|
|
|
395 |
|
|
|
265 |
|
|
Transmedics, Inc. |
|
Surgical Devices |
|
Warrant |
|
Preferred Series B |
|
|
40,436 |
|
|
|
225 |
|
|
|
24 |
|
|
|
|
Surgical Devices |
|
Warrant |
|
Preferred Series D |
|
|
175,000 |
|
|
|
100 |
|
|
|
421 |
|
|
|
|
Surgical Devices |
|
Warrant |
|
Preferred Series F |
|
|
50,544 |
|
|
|
38 |
|
|
|
69 |
|
|
Total Transmedics, Inc. |
|
|
|
|
|
|
|
|
265,980 |
|
|
|
363 |
|
|
|
514 |
|
|
Subtotal: Surgical Devices (0.09%)* |
|
|
|
|
|
|
|
|
|
|
758 |
|
|
|
779 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustainable and Renewable Technology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Agrivida, Inc. (15) |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series D |
|
|
471,327 |
|
|
|
120 |
|
|
|
138 |
|
|
Alphabet Energy, Inc. (15) |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series 1B |
|
|
13,667 |
|
|
|
82 |
|
|
|
— |
|
|
American Superconductor Corporation (4) |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Common Stock |
|
|
58,823 |
|
|
|
39 |
|
|
|
24 |
|
|
Brightsource Energy, Inc. |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series 1 |
|
|
116,666 |
|
|
|
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 |
|
|
|
— |
|
|
Fluidic, Inc. |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series D |
|
|
61,804 |
|
|
|
102 |
|
|
|
— |
|
|
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 |
|
|
|
312 |
|
|
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 |
|
|
|
582 |
|
|
Rive Technology, Inc. (15) |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series E |
|
|
234,477 |
|
|
|
12 |
|
|
|
16 |
|
|
Stion Corporation (6) |
|
Sustainable and Renewable Technology |
|
Warrant |
|
Preferred Series Seed |
|
|
2,154 |
|
|
|
1,378 |
|
|
|
— |
|
|
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 |
|
|
|
90 |
|
|
Subtotal: Sustainable and Renewable Technology (0.14%)* |
|
|
|
|
|
|
|
|
|
|
4,579 |
|
|
|
1,162 |
|
||
|
Total: Warrant Investments (3.91%)* |
|
|
|
|
|
|
|
|
|
|
39,454 |
|
|
|
32,729 |
|
||
|
Total Investments in Securities (169.45%)* |
|
|
|
|
|
|
|
|
|
$ |
1,489,011 |
|
|
$ |
1,417,114 |
|
||
|
* |
Value as a percent of net assets |
|
(1) |
Preferred and common stock, warrants, and equity interests are generally non-income producing. |
|
(2) |
Interest rate PRIME represents 4.25% at September 30, 2017. Daily LIBOR and 12-month LIBOR represent 1.18% and 1.79%, respectively, at September 30, 2017. |
|
(3) |
Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $32.3 million, $113.4 million and $81.1 million respectively. The tax cost of investments is $1.5 billion. |
|
(4) |
Except for warrants in 38 publicly traded companies and common stock in 19 publicly traded companies, all investments are restricted at September 30, 2017 and were valued at fair value using Level 3 significant unobservable inputs 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. |
|
(5) |
Non-U.S. company or the company’s principal place of business is outside the United States. |
|
(6) |
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. |
|
(7) |
Control investment as defined under the 1940 Act in which Hercules owns at least 25% of the company’s voting securities or has greater than 50% representation on its board. |
|
(8) |
Debt is on non-accrual status at September 30, 2017, and is therefore considered non-income producing. Note that at September 30, 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. |
|
(9) |
Denotes that all or a portion of the debt investment is convertible debt. |
|
(10) |
Indicates assets that the Company deems not “qualifying assets” under section 55(a) of 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. |
|
(11) |
Denotes that all or a portion of the debt investment secures the notes offered in the Debt Securitization (as defined in Note 4). |
|
(12) |
Denotes that all or a portion of the debt investment is pledged as collateral under the Wells Facility (as defined in Note 4). |
|
(13) |
Denotes that all or a portion of the debt investment is pledged as collateral under the Union Bank Facility (as defined in Note 4). |
|
(14) |
Denotes that all or a portion of the debt investment principal includes accumulated PIK interest and is net of repayments. |
|
(15) |
Denotes that all or a portion of the investment in this portfolio company is held by Hercules 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 September 30, 2017. |
|
(17) |
Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at September 30, 2017. Refer to Note 10. |
See notes to consolidated financial statements.
19
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||