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.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

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

 

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

On October 30, 2017, there were 84,162,661 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statement of Assets and Liabilities as of September 30, 2017 and December 31, 2016 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three and nine months ended September 30, 2017 and 2016 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the nine months ended September 30, 2017 and 2016 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the nine months ended September 30, 2017 and 2016 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of September 30, 2017 (unaudited)

  

8

 

 

 

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

  

20

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

34

Item 2.

 

 

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

  

69

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

100

Item 4.

 

 

Controls and Procedures

  

101

 

PART II. OTHER INFORMATION

  

102

 

Item 1.

 

Legal Proceedings

  

102

Item 1A.

 

 

Risk Factors

 

102

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

141

Item 3.

 

 

Defaults Upon Senior Securities

  

141

Item 4.

 

 

Mine Safety Disclosures

  

141

Item 5.

 

 

Other Information

  

141

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

142

 

SIGNATURES

  

145

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

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

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

 

 

September 30, 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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Income/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Undistributed

 

 

(Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Appreciation

 

 

Realized

 

 

in Excess of

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

(Depreciation)

 

 

Gains (Losses)

 

 

Investment

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

on Investments

 

 

on Investments

 

 

Income)

 

 

Assets

 

Balance at December 31, 2015

 

72,118

 

 

$

73

 

 

$

751,902

 

 

$

(52,808

)

 

$

27,993

 

 

$

(10,026

)

 

$

717,134

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

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


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2016

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exicure, Inc. (11) (14A)

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45%

or Floor rate of 9.95%

 

$

6,000

 

 

$

5,971

 

 

$

6,035

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,971

 

 

 

6,035

 

Subtotal: Biotechnology Tools (0.77%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,971

 

 

 

6,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Communications & Networking

 

Senior Secured

 

August 2017

 

PIK Interest 10.50%

 

$

1,278

 

 

 

1,304

 

 

 

1,304

 

OpenPeak, Inc. (7)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75%

or Floor rate of 12.00%

 

$

12,211

 

 

 

8,975

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,279

 

 

 

1,304

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group (4) (9)

 

Communications & Networking

 

Senior Secured

 

October 2019

 

Interest rate FIXED 10.00%

 

$

8,025

 

 

 

7,212

 

 

 

4,825

 

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

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate FIXED 10.95%,

PIK Interest 5.00%

 

$

16,758

 

 

 

16,900

 

 

 

 

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

 

Communications & Networking

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 6.70%

or Floor rate of 9.95%

 

$

3,000

 

 

 

3,038

 

 

 

3,044

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

27,150

 

 

 

7,869

 

Subtotal: Communications & Networking (1.16%)*

 

 

 

 

 

 

 

 

 

 

 

 

37,429

 

 

 

9,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Consumer & Business Products

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,837

 

 

 

19,837

 

 

 

Consumer & Business Products

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

1,000

 

 

 

965

 

 

 

965

 

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

 

 

 

 

 

 

 

$

21,000

 

 

 

20,802

 

 

 

20,802

 

Nasty Gal (14B) (15)

 

Consumer & Business Products

 

Senior Secured

 

May 2019

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

13,241

 

 

 

13,148

 

 

 

13,148

 

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

 

Consumer & Business Products

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%

 

$

2,280

 

 

 

2,302

 

 

 

2,283

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

36,252

 

 

 

36,233

 

Subtotal: Consumer & Business Products (4.60%)*

 

 

 

 

 

 

 

 

 

 

 

 

36,252

 

 

 

36,233

 

 

Drug Delivery