zp 

 

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 June 30, 2018

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, a smaller reporting company, or an emerging growth 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 July 30, 2018, there were 95,831,773 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 


 

 

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statement of Assets and Liabilities as of June 30, 2018 and December 31, 2017 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three and six months ended June 30, 2018 and 2017 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the six months ended June 30, 2018 and 2017 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of June 30, 2018 (unaudited)

  

9

 

 

 

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

  

24

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

39

Item 2.

 

 

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

  

73

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

92

Item 4.

 

 

Controls and Procedures

  

93

 

PART II. OTHER INFORMATION

  

94

 

Item 1.

 

Legal Proceedings

  

94

Item 1A.

 

 

Risk Factors

 

94

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

95

Item 3.

 

 Defaults Upon Senior Securities

  

95

Item 4.

 

 

Mine Safety Disclosures

  

95

Item 5.

 

 

Other Information

  

95

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

96

 

SIGNATURES

  

99

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

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

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

 

 

June 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $1,614,160 and $1,506,454, respectively)

 

$

1,616,515

 

 

$

1,491,458

 

Control investments (cost of $59,337 and $25,419, respectively)

 

 

56,716

 

 

 

19,461

 

Affiliate investments (cost of $84,063 and $87,956, respectively)

 

 

28,705

 

 

 

31,295

 

Total investments in securities, at value (cost of $1,757,560 and $1,619,829, respectively)

 

 

1,701,936

 

 

 

1,542,214

 

Cash and cash equivalents

 

 

59,461

 

 

 

91,309

 

Restricted cash

 

 

15,886

 

 

 

3,686

 

Interest receivable

 

 

14,408

 

 

 

12,262

 

Other assets

 

 

906

 

 

 

5,244

 

Total assets

 

$

1,792,597

 

 

$

1,654,715

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

25,115

 

 

$

26,896

 

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

 

 

188,457

 

 

 

188,141

 

2022 Notes, net (principal of $150,000 and $150,000, respectively) (1)

 

 

147,728

 

 

 

147,572

 

2024 Notes, net (principal of $83,510 and $183,510, respectively) (1)

 

 

81,694

 

 

 

179,001

 

2025 Notes, net (principal of $75,000 and $0, respectively) (1)

 

 

72,616

 

 

 

 

2021 Asset-Backed Notes, net (principal of $31,088 and $49,153, respectively) (1)

 

 

30,698

 

 

 

48,650

 

2022 Convertible Notes, net (principal of $230,000 and $230,000, respectively) (1)

 

 

224,269

 

 

 

223,488

 

Credit Facilities

 

 

58,323

 

 

 

 

Total liabilities

 

$

828,900

 

 

$

813,748

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

94

 

 

 

85

 

Capital in excess of par value

 

 

1,026,313

 

 

 

908,501

 

Unrealized appreciation (depreciation) on investments (2)

 

 

(56,760

)

 

 

(79,760

)

Accumulated undistributed realized gains (losses) on investments

 

 

(34,205

)

 

 

(20,374

)

Undistributed net investment income

 

 

28,255

 

 

 

32,515

 

Total net assets

 

$

963,697

 

 

$

840,967

 

Total liabilities and net assets

 

$

1,792,597

 

 

$

1,654,715

 

 

 

 

 

 

 

 

 

 

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

 

 

94,260

 

 

 

84,424

 

Net asset value per share

 

$

10.22

 

 

$

9.96

 

 

(1)

The Company’s SBA Debentures, 2022 Notes, 2024 Notes, 2025 Notes, 2021 Asset-Backed Notes and 2022 Convertible Notes, as each term is defined herein, are presented net of the associated debt issuance costs for each instrument. See “Note 4 – Borrowings”.

(2)

Amounts include $1.1 million and $2.1 million in net unrealized depreciation on other assets and accrued liabilities, including escrow receivables, and estimated taxes payable as of June 30, 2018 and December 31, 2017, 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)

 

June 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

15,886

 

 

$

3,686

 

Total investments in securities, at value (cost of $98,105 and $146,208, respectively)

 

 

97,924

 

 

 

144,513

 

Total assets

 

$

113,810

 

 

$

148,199

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2021 Asset-Backed Notes, net (principal of $31,088 and $49,153, respectively) (1)

 

$

30,698

 

 

$

48,650

 

Total liabilities

 

$

30,698

 

 

$

48,650

 

 

(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 June 30,

 

 

Six Months Ended June 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

44,535

 

 

$

39,979

 

 

$

86,369

 

 

$

82,324

 

Control investments

 

841

 

 

 

527

 

 

 

1,427

 

 

 

1,041

 

Affiliate investments

 

500

 

 

 

 

 

 

1,061

 

 

 

2

 

Total interest income

 

45,876

 

 

 

40,506

 

 

 

88,857

 

 

 

83,367

 

Fee income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitment, facility and loan fee income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

1,930

 

 

 

2,440

 

 

 

4,370

 

 

 

5,374

 

Control investments

 

 

 

 

5

 

 

 

 

 

 

10

 

Affiliate investments

 

84

 

 

 

 

 

 

192

 

 

 

 

Total commitment, facility and loan fee income

 

2,014

 

 

 

2,445

 

 

 

4,562

 

 

 

5,384

 

One-time fee income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

1,672

 

 

 

5,501

 

 

 

4,843

 

 

 

6,066

 

Total one-time fee income

 

1,672

 

 

 

5,501

 

 

 

4,843

 

 

 

6,066

 

Total fee income

 

3,686

 

 

 

7,946

 

 

 

9,405

 

 

 

11,450

 

Total investment income

 

49,562

 

 

 

48,452

 

 

 

98,262

 

 

 

94,817

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

9,878

 

 

 

9,254

 

 

 

19,264

 

 

 

18,861

 

Loan fees

 

3,362

 

 

 

1,348

 

 

 

4,537

 

 

 

4,186

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal Expenses

 

637

 

 

 

2,141

 

 

 

1,212

 

 

 

2,867

 

Other Expenses

 

3,037

 

 

 

2,609

 

 

 

6,471

 

 

 

5,947

 

Total general and administrative

 

3,674

 

 

 

4,750

 

 

 

7,683

 

 

 

8,814

 

Employee compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

7,017

 

 

 

5,916

 

 

 

12,775

 

 

 

11,262

 

Stock-based compensation

 

2,857

 

 

 

1,909

 

 

 

5,166

 

 

 

3,742

 

Total employee compensation

 

9,874

 

 

 

7,825

 

 

 

17,941

 

 

 

15,004

 

Total operating expenses

 

26,788

 

 

 

23,177

 

 

 

49,425

 

 

 

46,865

 

Net investment income

 

22,774

 

 

 

25,275

 

 

 

48,837

 

 

 

47,952

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

(3,953

)

 

 

(5,319

)

 

 

(7,465

)

 

 

(2,030

)

Control investments

 

(2,900

)

 

 

(394

)

 

 

(4,308

)

 

 

(445

)

Affiliate investments

 

(2,058

)

 

 

 

 

 

(2,058

)

 

 

 

Total net realized gain (loss) on investments

 

(8,911

)

 

 

(5,713

)

 

 

(13,831

)

 

 

(2,475

)

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

32,700

 

 

 

66,255

 

 

 

18,360

 

 

 

34,100

 

Control investments

 

3,957

 

 

 

(53,349

)

 

 

3,337

 

 

 

(53,135

)

Affiliate investments

 

1,540

 

 

 

681

 

 

 

1,303

 

 

 

1,119

 

Total net unrealized appreciation (depreciation) on investments

 

38,197

 

 

 

13,587

 

 

 

23,000

 

 

 

(17,916

)

Total net realized and unrealized gain (loss)

 

29,286

 

 

 

7,874

 

 

 

9,169

 

 

 

(20,391

)

Net increase (decrease) in net assets resulting from operations

$

52,060

 

 

$

33,149

 

 

$

58,006

 

 

$

27,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.26

 

 

$

0.31

 

 

$

0.57

 

 

$

0.58

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.59

 

 

$

0.40

 

 

$

0.67

 

 

$

0.33

 

Diluted

$

0.59

 

 

$

0.40

 

 

$

0.67

 

 

$

0.33

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

87,125

 

 

 

82,292

 

 

 

85,868

 

 

 

81,858

 

Diluted

 

87,199

 

 

 

82,395

 

 

 

85,939

 

 

 

81,953

 

Distributions declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

$

0.62

 

 

$

0.62

 

See notes to consolidated financial statements.

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Undistributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Appreciation

 

 

Realized

 

 

Undistributed

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

(Depreciation)

 

 

Gains (Losses)

 

 

Net Investment

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

on Investments

 

 

on Investments

 

 

Income

 

 

Assets

 

Balance at December 31, 2016

 

79,555

 

 

$

80

 

 

$

839,657

 

 

$

(89,025

)

 

$

14,314

 

 

$

22,918

 

 

$

787,944

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(17,916

)

 

 

(2,475

)

 

 

47,952

 

 

 

27,561

 

Public offering, net of offering expenses

 

3,309

 

 

 

3

 

 

 

46,908

 

 

 

 

 

 

 

 

 

 

 

 

46,911

 

Issuance of common stock due to stock option exercises

 

27

 

 

 

 

 

 

211

 

 

 

 

 

 

 

 

 

 

 

 

211

 

Retired shares from net issuance

 

(18

)

 

 

 

 

 

(170

)

 

 

 

 

 

 

 

 

 

 

 

(170

)

Issuance of common stock under restricted stock plan

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(145

)

 

 

 

 

 

(1,988

)

 

 

 

 

 

 

 

 

 

 

 

(1,988

)

Distributions reinvested in common stock

 

81

 

 

 

 

 

 

1,122

 

 

 

 

 

 

 

 

 

 

 

 

1,122

 

Issuance of Convertible Notes

 

 

 

 

 

 

 

3,413

 

 

 

 

 

 

 

 

 

 

 

 

3,413

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,330

)

 

 

(51,330

)

Stock-based compensation (1)

 

 

 

 

 

 

 

3,777

 

 

 

 

 

 

 

 

 

 

 

 

3,777

 

Balance at June 30, 2017

 

82,819

 

 

$

83

 

 

$

892,930

 

 

$

(106,941

)

 

$

11,839

 

 

$

19,540

 

 

$

817,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

84,424

 

 

$

85

 

 

$

908,501

 

 

$

(79,760

)

 

$

(20,374

)

 

$

32,515

 

 

$

840,967

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

23,000

 

 

 

(13,831

)

 

 

48,837

 

 

 

58,006

 

Public offering, net of offering expenses

 

9,486

 

 

 

9

 

 

 

112,617

 

 

 

 

 

 

 

 

 

 

 

 

112,626

 

Issuance of common stock due to stock option exercises

 

38

 

 

 

 

 

 

433

 

 

 

 

 

 

 

 

 

 

 

 

433

 

Retired shares from net issuance

 

(36

)

 

 

 

 

 

(447

)

 

 

 

 

 

 

 

 

 

 

 

(447

)

Issuance of common stock under restricted stock plan

 

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(57

)

 

 

 

 

 

(688

)

 

 

 

 

 

 

 

 

 

 

 

(688

)

Distributions reinvested in common stock

 

69

 

 

 

 

 

 

854

 

 

 

 

 

 

 

 

 

 

 

 

854

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(53,097

)

 

 

(53,097

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,043

 

 

 

 

 

 

 

 

 

 

 

 

5,043

 

Balance at June 30, 2018

 

94,260

 

 

$

94

 

 

$

1,026,313

 

 

$

(56,760

)

 

$

(34,205

)

 

$

28,255

 

 

$

963,697

 

 

(1)

Stock-based compensation includes $20 and $35 of restricted stock and option expense related to director compensation for the six months ended June 30, 2018 and 2017, respectively.

 

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Six Months Ended June 30,

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

58,006

 

 

$

27,561

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(563,744

)

 

 

(340,632

)

Principal and fee payments received on investments

 

414,347

 

 

 

349,519

 

Proceeds from the sale of investments

 

9,768

 

 

 

18,450

 

Net unrealized depreciation (appreciation) on investments

 

(23,000

)

 

 

17,916

 

Net realized loss (gain) on investments

 

13,831

 

 

 

2,475

 

Accretion of paid-in-kind principal

 

(4,696

)

 

 

(4,656

)

Accretion of loan discounts

 

(1,562

)

 

 

(3,776

)

Accretion of loan discount on Convertible Notes

 

336

 

 

 

280

 

Accretion of loan exit fees

 

(8,923

)

 

 

(10,653

)

Change in deferred loan origination revenue

 

3,415

 

 

 

19

 

Unearned fees related to unfunded commitments

 

1,616

 

 

 

769

 

Amortization of debt fees and issuance costs

 

3,999

 

 

 

3,557

 

Depreciation

 

94

 

 

 

105

 

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

 

5,043

 

 

 

3,777

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(2,146

)

 

 

1,410

 

Prepaid expenses and other assets

 

518

 

 

 

589

 

Accounts payable

 

244

 

 

 

 

Accrued liabilities

 

(1,016

)

 

 

898

 

Net cash provided by (used in) operating activities

 

(93,870

)

 

 

67,608

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(116

)

 

 

(89

)

Net cash provided by (used in) investing activities

 

(116

)

 

 

(89

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

112,626

 

 

 

46,911

 

Retirement of employee shares

 

(701

)

 

 

(1,947

)

Distributions paid

 

(52,243

)

 

 

(50,208

)

Issuance of 2022 Convertible Notes

 

 

 

 

230,000

 

Issuance of 2024 Notes

 

 

 

 

5,637

 

Issuance of 2025 Notes

 

75,000

 

 

 

 

Repayments of 2019 Notes

 

 

 

 

(110,364

)

Repayments of 2024 Notes

 

(100,000

)

 

 

 

Repayments of 2021 Asset-Backed Notes

 

(18,065

)

 

 

(21,527

)

Borrowings of credit facilities

 

150,700

 

 

 

8,497

 

Repayments of credit facilities

 

(92,377

)

 

 

(13,513

)

Cash paid for debt issuance costs

 

(519

)

 

 

(4,480

)

Fees paid for credit facilities and debentures

 

(83

)

 

 

(253

)

Net cash provided by (used in) financing activities

 

74,338

 

 

 

88,753

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(19,648

)

 

 

156,272

 

Cash, cash equivalents and restricted cash at beginning of period

 

94,995

 

 

 

21,366

 

Cash, cash equivalents and restricted cash at end of period

$

75,347

 

 

$

177,638

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Distributions reinvested

 

854

 

 

 

1,122

 

 

(1)

Stock-based compensation includes $20 and $35 of restricted stock and option expense related to director compensation for the six months ended June 30, 2018 and 2017, respectively.


See notes to consolidated financial statements.

7


 

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statement of Cash Flows:

 

 

For the Six Months Ended June 30,

 

(Dollars in thousands)

2018

 

 

2017

 

Cash and cash equivalents

$

59,461

 

 

$

160,412

 

Restricted cash

 

15,886

 

 

 

17,226

 

Total cash, cash equivalents and restricted cash presented in the Consolidated Statements of Cash Flows

$

75,347

 

 

$

177,638

 

See “Note 2 – Summary of Significant Accounting Policies” and “Note 11- Recent Accounting Pronouncements” for a description of restricted cash and cash equivalents.

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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

 

$

4,999

 

 

$

5,152

 

 

$

5,172

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,152

 

 

 

5,172

 

Subtotal: Biotechnology Tools (0.54%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,152

 

 

 

5,172

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard (p.k.a Antenna79) (15)

 

 

Consumer & Business Products

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 1.5%

or Floor rate of 11.00%

 

$

1,000

 

 

 

1,000

 

 

 

1,000

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard (p.k.a Antenna79) (15)

 

 

Consumer & Business Products

 

Senior Secured

 

December 2019

 

Interest rate PRIME + 2.95%

or Floor rate of 12.45%, 2.95% Exit Fee

 

$

16,814

 

 

 

17,072

 

 

 

17,064

 

WHOOP, INC.

 

 

Consumer & Business Products

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.75%

or Floor rate of 8.50%, 6.95% Exit Fee

 

$

6,000

 

 

 

5,915

 

 

 

5,916

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

22,987

 

 

 

22,980

 

Subtotal: Consumer & Business Products (2.49%)*

 

 

 

 

 

 

 

 

 

 

 

 

23,987

 

 

 

23,980

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC. (7)

 

 

Diversified Financial Services

 

Unsecured

 

March 2023

 

Interest rate FIXED 14.50%

 

$

10,000

 

 

 

9,809

 

 

 

9,809

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

9,809

 

 

 

9,809

 

Subtotal: Diversified Financial Services (1.02%)*

 

 

 

 

 

 

 

 

 

 

 

 

9,809

 

 

 

9,809

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

7,625

 

 

 

8,160

 

 

 

8,160

 

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

 

$

3,233

 

 

 

3,570

 

 

 

3,570

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,730

 

 

 

11,730

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (11)(15)

 

 

Drug Delivery

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 6.05%

or Floor rate of 9.55%, 11.69% Exit Fee

 

$

14,891

 

 

 

15,567

 

 

 

15,486

 

Antares Pharma Inc. (10)(15)

 

 

Drug Delivery

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.50%

or Floor rate of 9.25%, 4.25% Exit Fee

 

$

25,000

 

 

 

25,155

 

 

 

25,124

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

40,722

 

 

 

40,610

 

Subtotal: Drug Delivery (5.43%)*

 

 

 

 

 

 

 

 

 

 

 

 

52,452

 

 

 

52,340

 

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auris Medical Holding, AG (5)(10)

 

 

Drug Discovery & Development

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 6.05%

or Floor rate of 9.55%, 5.75% Exit Fee

 

$

3,067

 

 

$

3,695

 

 

$

3,695

 

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

 

$

7,884

 

 

 

9,576

 

 

 

9,576

 

Epirus Biopharmaceuticals, Inc. (8)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.70%

or Floor rate of 7.95%, 3.00% Exit Fee

 

$

2,277

 

 

 

2,561

 

 

 

33

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

15,832

 

 

 

13,304

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc.

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.50%

or Floor rate of 9.25%, 3.95% Exit Fee

 

$

10,000

 

 

 

9,759

 

 

 

9,759

 

Aveo Pharmaceuticals, Inc. (10)(13)

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70%

or Floor rate of 9.45%, 5.40% Exit Fee

 

$

10,000

 

 

 

9,993

 

 

 

9,861

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70%

or Floor rate of 9.45%, 3.00% Exit Fee

 

$

10,000

 

 

 

10,066

 

 

 

10,011

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

20,000

 

 

 

20,059

 

 

 

19,872

 

Axovant Sciences Ltd. (5)(10)(13)(16)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80%

or Floor rate of 10.55%

 

$

55,000

 

 

 

53,942

 

 

 

53,958

 

Brickell Biotech, Inc. (12)

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 9.20%, 7.49% Exit Fee

 

$

5,581

 

 

 

5,960

 

 

 

5,967

 

BridgeBio Pharma LLC

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.35%

or Floor rate of 9.35%, 6.35% Exit Fee

 

$

35,000

 

 

 

34,651

 

 

 

34,651

 

Chemocentryx, Inc. (10)(15)(17)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2021

 

Interest rate PRIME + 3.30%

or Floor rate of 8.05%, 6.25% Exit Fee

 

$

15,000

 

 

 

14,892

 

 

 

14,833

 

Genocea Biosciences, Inc. (11)

 

 

Drug Discovery & Development

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 2.75%

or Floor rate of 7.75%, 10.12% Exit Fee

 

$

14,000

 

 

 

14,591

 

 

 

14,568

 

Mesoblast (5)(10)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 4.95%

or Floor rate of 9.45%, 6.95% Exit Fee

 

$

35,000

 

 

 

34,894

 

 

 

34,894

 

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

 

$

20,731

 

 

 

21,252

 

 

 

21,184

 

Motif BioSciences Inc. (5)(10)(15)

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.50%

or Floor rate of 10.00%, 2.15% Exit Fee

 

$

15,000

 

 

 

14,774

 

 

 

14,665

 

Myovant Sciences, Ltd. (5)(10)(13)

 

 

Drug Discovery & Development

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 4.00%

or Floor rate of 8.25%, 6.55% Exit Fee

 

$

40,000

 

 

 

39,772

 

 

 

39,408

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (10)(15)(16)

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%, 4.50% Exit Fee

 

$

40,000

 

 

 

40,558

 

 

 

40,128

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,151

 

 

 

10,033

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%, 2.25% Exit Fee

 

$

10,000

 

 

 

10,029

 

 

 

9,935

 

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

 

 

 

 

 

 

 

$

60,000

 

 

 

60,738

 

 

 

60,096

 

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

 

$

20,000

 

 

 

20,069

 

 

 

19,878

 

Tricida, Inc. (15)(17)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 3.35%

or Floor rate of 8.35%, 11.14% Exit Fee

 

$

25,000

 

 

 

24,864

 

 

 

24,864

 

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

 

 

 

20,761

 

 

 

20,711

 

Verastem, Inc. (12)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,005

 

 

 

4,982

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,037

 

 

 

5,014

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,003

 

 

 

4,979

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

9,904

 

 

 

9,781

 

Total Verastem, Inc.

 

 

 

 

 

 

 

$

25,000

 

 

 

24,949

 

 

 

24,756

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

415,927

 

 

 

414,064

 

Subtotal: Drug Discovery & Development (44.35%)*

 

 

 

 

 

 

 

 

 

 

 

 

431,759

 

 

 

427,368

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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)

 

 

Electronics & Computer Hardware

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 4.00%

or Floor rate of 8.25%, 4.25% Exit Fee

 

$

10,000

 

 

$

10,016

 

 

$

9,963

 

Glo AB (5)(10)(13)(14)

 

 

Electronics & Computer Hardware

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 6.20%

or Floor rate of 10.45%,

PIK Interest 1.75%, 2.95% Exit Fee

 

$

12,084

 

 

 

12,042

 

 

 

12,042

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

22,058

 

 

 

22,005

 

Subtotal: Electronics & Computer Hardware (2.28%)*

 

 

 

 

 

 

 

 

 

 

 

 

22,058

 

 

 

22,005

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medsphere Systems Corporation (14)(15)

 

 

Healthcare Services, Other

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%,

PIK Interest 1.75%

 

$

17,764

 

 

 

17,635

 

 

 

17,691

 

 

 

 

Healthcare Services, Other

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%,

PIK Interest 1.75%

 

$

5,053

 

 

 

5,019

 

 

 

5,034

 

Total Medsphere Systems Coporation

 

 

 

 

 

 

 

$

22,817

 

 

 

22,654

 

 

 

22,725

 

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

 

$

30,000

 

 

 

30,100

 

 

 

29,823

 

PH Group Holdings (13)

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,913

 

 

 

19,785

 

 

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

10,000

 

 

 

9,944

 

 

 

9,843

 

Total PH Group Holdings

 

 

 

 

 

 

 

$

30,000

 

 

 

29,857

 

 

 

29,628

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

82,611

 

 

 

82,176

 

Subtotal: Healthcare Services, Other (8.53%)*

 

 

 

 

 

 

 

 

 

 

 

 

82,611

 

 

 

82,176

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MDX Medical, Inc. (14)(15)(19)

 

 

Information Services

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.00%

or Floor rate of 8.25%,

PIK Interest 1.70%

 

$

15,157

 

 

 

14,807

 

 

 

14,608

 

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

 

$

9,142

 

 

 

8,985

 

 

 

8,965

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

23,792

 

 

 

23,573

 

Subtotal: Information Services (2.45%)*

 

 

 

 

 

 

 

 

 

 

 

 

23,792

 

 

 

23,573

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

5,076

 

 

$

5,096

 

 

$

5,096

 

 

 

 

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

 

$

2,044

 

 

 

2,042

 

 

 

2,042

 

 

 

 

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

 

$

2,047

 

 

 

2,045

 

 

 

2,045

 

Total Intent Media, Inc.

 

 

 

 

 

 

 

$

9,167

 

 

 

9,183

 

 

 

9,183

 

The Faction Group LLC

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%

 

$

2,000

 

 

 

2,000

 

 

 

2,000

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,183

 

 

 

11,183

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AppDirect, Inc. (13)(19)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 5.70%

or Floor rate of 9.95%, 3.45% Exit Fee

 

$

20,000

 

 

 

19,859

 

 

 

19,738

 

Art.com, Inc. (14)(15)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2021

 

Interest rate PRIME + 5.40%

or Floor rate of 10.15%,

PIK Interest 1.70%, 1.50% Exit Fee

 

$

10,030

 

 

 

9,873

 

 

 

9,873

 

Cloudpay, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.05%

or Floor rate of 8.55%, 6.95% Exit Fee

 

$

11,000

 

 

 

10,884

 

 

 

10,884

 

EverFi, Inc. (14)(16)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2022

 

Interest rate PRIME + 3.90%

or Floor rate of 8.65%,

PIK Interest 2.30%

 

$

50,115

 

 

 

50,067

 

 

 

50,067

 

First Insight, Inc. (15)(17)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 6.25%

or Floor rate of 11.25%

 

$

6,000

 

 

 

5,876

 

 

 

5,876

 

Greenphire, Inc. (17)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 8.00%

or Floor rate of 9.00%

 

$

3,433

 

 

 

3,432

 

 

 

3,437

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 3.75%

or Floor rate of 7.00%

 

$

1,500

 

 

 

1,500

 

 

 

1,488

 

Total Greenphire Inc.

 

 

 

 

 

 

 

 

 

 

$

4,933

 

 

 

4,932

 

 

 

4,925

 

Interactions Corporation (19)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2021

 

Interest rate 3-month LIBOR + 8.60%

or Floor rate of 9.85%, 1.75% Exit Fee

 

$

25,000

 

 

 

25,052

 

 

 

25,128

 

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

 

$

4,820

 

 

 

5,145

 

 

 

5,144

 

RumbleON, Inc.

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 5.75%

or Floor rate of 10.25%, 4.55% Exit Fee

 

$

5,000

 

 

 

4,945

 

 

 

4,945

 

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

 

$

41,429

 

 

 

41,398

 

 

 

41,552

 

Tectura Corporation (7)(8)(9)(14)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%,

PIK Interest 3.00%

 

$

20,608

 

 

 

20,608

 

 

 

19,127

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

10,680

 

 

 

240

 

 

 

 

Total Tectura Corporation

 

 

 

 

 

 

 

$

31,288

 

 

 

20,848

 

 

 

19,127

 

The Faction Group LLC.

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 9.25%

or Floor rate of 10.25%

 

$

8,000

 

 

 

8,000

 

 

 

8,008

 

Wheels Up Partners LLC

 

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.55%

or Floor rate of 9.55%

 

$

21,701

 

 

 

21,503

 

 

 

21,503

 

Xometry, Inc. (17)(19)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 3.95%

or Floor rate of 8.45%, 7.45% Exit Fee

 

$

7,000

 

 

 

6,942

 

 

 

6,942

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

235,324

 

 

 

233,712

 

Subtotal: Internet Consumer & Business Services (25.41%)*

 

 

 

 

 

 

 

 

 

 

 

 

246,507

 

 

 

244,895

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bustle (14)(15)

 

 

Media/Content/Info

 

Senior Secured

 

June 2021

 

Interest rate PRIME + 4.10%

or Floor rate of 8.35%,

PIK Interest 1.95%, 1.95% Exit Fee

 

$

15,164

 

 

$

15,133

 

 

$

15,156

 

FanDuel, Inc. (9)(10)(12)(14)

 

 

Media/Content/Info

 

Senior Secured

 

November 2019

 

Interest rate PRIME + 7.25%

or Floor rate of 10.75%, 10.41% Exit Fee

 

$

19,354

 

 

 

20,380

 

 

 

20,380

 

 

 

 

Media/Content/Info

 

Convertible Debt

 

September 2020

 

PIK Interest 25.00%

 

$

1,000

 

 

 

1,000

 

 

 

1,723

 

Total FanDuel, Inc.

 

 

 

 

 

 

 

 

 

 

$

20,354

 

 

 

21,380

 

 

 

22,103

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

36,513

 

 

 

37,259

 

Subtotal: Media/Content/Info (3.87%)*

 

 

 

 

 

 

 

 

 

 

 

 

36,513

 

 

 

37,259

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc. (15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

October 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%, 6.85% Exit Fee

 

$

1,793

 

 

 

2,208

 

 

 

829

 

Quanterix Corporation (11)

 

 

Medical Devices & Equipment

 

Senior Secured

 

March 2019

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%

 

$

7,688

 

 

 

7,673

 

 

 

7,673

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

9,881

 

 

 

8,502

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intuity Medical, Inc. (15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2021

 

Interest rate PRIME + 5.00%

or Floor rate of 9.25%, 4.95% Exit Fee

 

$

17,500

 

 

 

17,251

 

 

 

17,278

 

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

 

$

3,942

 

 

 

4,291

 

 

 

4,251

 

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

 

$

7,864

 

 

 

8,290

 

 

 

8,250

 

Rapid Micro Biosystems, Inc. (13)(15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 5.15%

or Floor rate of 9.65%, 7.25% Exit Fee

 

$

18,000

 

 

 

17,929

 

 

 

17,929

 

Sebacia, Inc. (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

 

 

 

8,054

 

 

 

8,066

 

Transenterix, Inc. (10)

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2022

 

Interest rate PRIME + 4.55%

or Floor rate of 9.55%, 6.95% Exit Fee

 

$

20,000

 

 

 

19,827

 

 

 

19,827

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

75,642

 

 

 

75,601

 

Subtotal: Medical Devices & Equipment (8.73%)*

 

 

 

 

 

 

 

 

 

 

 

 

85,523

 

 

 

84,103

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

7,084

 

 

 

7,084

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,084

 

 

 

7,084

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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)

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banker's Toolbox, Inc (13)(18)

 

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.88%

or Floor rate of 8.88%

 

$

39,900

 

 

$

39,085

 

 

$

39,085

 

Businessolver.com, Inc. (16)(17)

 

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50%

 

$

51,000

 

 

 

50,000

 

 

 

50,000

 

Clarabridge, Inc. (12)(14)

 

 

Software

 

Senior Secured

 

April 2021

 

Interest rate PRIME + 4.80%

or Floor rate of 8.55%,

PIK Interest 3.25%

 

$

41,570

 

 

 

41,549

 

 

 

41,724

 

Dashlane, Inc. (14)(19)

 

 

Software

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.05%

or Floor rate of 8.55%,

PIK Interest 1.10%, 9.25% Exit Fee

 

$

10,011

 

 

 

9,932

 

 

 

9,932

 

Emma, Inc. (17)(18)

 

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 9.39%

 

$

37,037

 

 

 

35,728

 

 

 

35,962

 

Evernote Corporation (14)(15)(17)(19)

 

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

6,000

 

 

 

5,980

 

 

 

6,072

 

 

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 1.25%

 

$

4,048

 

 

 

4,028

 

 

 

4,022

 

 

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 1.25%

 

$

2,500

 

 

 

2,483

 

 

 

2,483

 

Total Evernote Corporation

 

 

 

 

 

 

 

$

12,548

 

 

 

12,491

 

 

 

12,577

 

Fuze, Inc. (13)(14)(15)(16)(19)

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.70%

or Floor rate of 7.95%,

PIK Interest 1.55%, 3.55% Exit Fee

 

$

50,728

 

 

 

51,097

 

 

 

51,014

 

Impact Radius Holdings, Inc. (12)(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

 

$

10,111

 

 

 

10,151

 

 

 

10,055

 

 

 

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.25%

or Floor rate of 8.75%,

PIK Interest 1.55%

 

$

2,000

 

 

 

2,000

 

 

 

1,977

 

Total Impact Radius Holdings, Inc.

 

 

 

 

 

 

 

$

12,111

 

 

 

12,151

 

 

 

12,032

 

Insurance Technologies Corporation (17)

 

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.75%

or Floor rate of 8.75%

 

$

12,500

 

 

 

12,261

 

 

 

12,261

 

Lightbend, Inc. (14)(15)

 

 

Software

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 4.25%

or Floor rate of 8.50%,

PIK Interest 2.00%

 

$

11,066

 

 

 

10,884

 

 

 

10,884

 

Lithium Technologies, Inc. (17)

 

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 3-month LIBOR + 8.00%

or Floor rate of 9.00%

 

$

12,000

 

 

 

11,762

 

 

 

11,762

 

Microsystems Holding Company, LLC (13)(19)

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.25%

or Floor rate of 9.25%

 

$

12,000

 

 

 

11,837

 

 

 

11,873

 

OneLogin, Inc. (14)(15)

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 5.95%

or Floor rate of 10.70%,

PIK Interest 2.00%

 

$

21,153

 

 

 

20,953

 

 

 

20,935

 

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

 

$

8,398

 

 

 

8,533

 

 

 

8,554

 

RapidMiner, Inc. (12)(14)

 

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 5.50%

or Floor rate of 9.75%,

PIK Interest 1.65%

 

$

7,060

 

 

 

7,037

 

 

 

6,963

 

Regent Education (14)

 

 

Software

 

Senior Secured

 

January 2021

 

Interest rate FIXED 10.00%,

PIK Interest 2.00%, 6.35% Exit Fee

 

$

3,275

 

 

 

3,299

 

 

 

2,144

 

Salsa Labs, Inc. (17)

 

 

Software

 

Senior Secured

 

April 2023

 

Interest rate 3-month LIBOR + 8.15%

or Floor rate of 9.15%

 

$

6,000

 

 

 

5,884

 

 

 

5,884

 

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

 

$

15,647

 

 

 

15,932

 

 

 

15,840

 

Vela Trading Technologies (18)

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 9.50%

or Floor rate of 10.50%

 

$

20,000

 

 

 

19,543

 

 

 

19,434

 

Wrike, Inc. (13)(14)(19)

 

 

Software

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 2.00%, 3.00% Exit Fee

 

$

10,268

 

 

 

10,056

 

 

 

10,180

 

ZocDoc (19)

 

 

Software

 

Senior Secured

 

April 2021

 

Interest rate 3-month LIBOR + 9.50%

or Floor rate of 10.50%, 1.00% Exit Fee

 

$

20,000

 

 

 

20,043

 

 

 

20,165

 

 

 

 

Software

 

Senior Secured

 

November 2021

 

Interest rate 3-month LIBOR + 9.50%

or Floor rate of 10.50%, 1.00% Exit Fee

 

$

10,000

 

 

 

10,020

 

 

 

10,082

 

Total ZocDoc

 

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

30,063

 

 

 

30,247

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

420,077

 

 

 

419,287

 

Subtotal: Software (44.24%)*

 

 

 

 

 

 

 

 

 

 

 

 

427,161

 

 

 

426,371

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(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)

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (9)(14)(15)

 

 

Surgical Devices

 

Unsecured Convertible Debt

 

May 2019

 

PIK Interest 8.00%

 

$

105

 

 

$

105

 

 

$

132

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

105

 

 

 

132

 

Subtotal: Surgical Devices (0.01%)*

 

 

 

 

 

 

 

 

 

 

 

 

105

 

 

 

132

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ChargePoint Inc. (19)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

August 2020

 

Interest rate 3-month LIBOR + 8.75%

or Floor rate of 9.75%, 2.00% Exit Fee

 

$

15,758

 

 

 

15,840

 

 

 

15,840

 

FuelCell Energy, Inc. (12)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 5.40%

or Floor rate of 9.90%, 6.68% Exit Fee

 

$

13,091

 

 

 

12,997

 

 

 

13,024

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 5.40%

or Floor rate of 9.90%, 8.50% Exit Fee

 

$

11,909

 

 

 

13,531

 

 

 

13,542

 

Total FuelCell Energy, Inc.

 

 

 

 

 

 

 

$

25,000

 

 

 

26,528

 

 

 

26,566

 

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

 

$

10,500

 

 

 

10,468

 

 

 

10,382

 

Impossible Foods, Inc. (17)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.95%

or Floor rate of 8.95%, 10.00% Exit Fee

 

$

15,000

 

 

 

14,768

 

 

 

14,768

 

Metalysis Limited (5)(10)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 5.00%

or Floor rate of 9.25%, 6.95% Exit Fee

 

$

7,500

 

 

 

7,494

 

 

 

7,494

 

Proterra, Inc. (11)(14)(17)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2020

 

Interest rate PRIME + 3.70%

or Floor rate of 7.95%,

PIK Interest 1.75%, 5.95% Exit Fee

 

$

25,259

 

 

 

26,388

 

 

 

26,479

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2020

 

Interest rate PRIME + 3.70%

or Floor rate of 7.95%,

PIK Interest 1.75%, 7.00% Exit Fee

 

$

5,052

 

 

 

5,276

 

 

 

5,285

 

Total Proterra, Inc.

 

 

 

 

 

 

 

 

 

 

$

30,311

 

 

 

31,664

 

 

 

31,764

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

106,762

 

 

 

106,814

 

Subtotal: Sustainable and Renewable Technology (11.08%)*

 

 

 

 

 

 

 

 

 

 

 

 

106,762

 

 

 

106,814

 

Total: Debt Investments (160.43%)*

 

 

 

 

 

 

 

 

 

 

 

 

1,554,191

 

 

 

1,545,997

 

 

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuGEN Technologies, Inc. (15)

 

 

Biotechnology Tools

 

Equity

 

Common Stock

 

 

55,780

 

 

$

500

 

 

$

 

Subtotal: Biotechnology Tools (0.00%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc. (4)

 

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

102

 

 

 

23

 

Peerless Network Holdings, Inc.

 

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,135,000

 

 

 

1,229

 

 

 

6,204

 

Subtotal: Communications & Networking (0.65%)*

 

 

 

 

 

 

 

 

 

 

1,331

 

 

 

6,227

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

407

 

Subtotal: Diagnostic (0.04%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

407

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

 

Diversified Financial Services

 

Equity

 

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

1,884

 

 

 

 

Diversified Financial Services

 

Equity

 

Preferred Series A

 

 

10,602,752

 

 

 

25,896

 

 

 

25,896

 

Total Gibraltar Business Capital, LLC.

 

 

 

 

 

 

11,432,752

 

 

 

27,780

 

 

 

27,780

 

Subtotal: Diversified Financial Services (2.88%)*

 

 

 

 

 

 

 

 

 

 

27,780

 

 

 

27,780

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

183

 

BioQ Pharma Incorporated (15)

 

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

705

 

Edge Therapeutics, Inc. (4)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

49,965

 

 

 

309

 

 

 

51

 

Neos Therapeutics, Inc. (4)(15)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

781

 

Subtotal: Drug Delivery (0.18%)*

 

 

 

 

 

 

 

 

 

 

2,417

 

 

 

1,720

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc. (4)(10)(15)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

1,901,791

 

 

 

1,715

 

 

 

4,481

 

Axovant Sciences Ltd. (4)(5)(10)(16)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

129,827

 

 

 

1,269

 

 

 

293

 

Cerecor, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

517

 

Dare Biosciences, Inc. (p.k.a. Cerulean Pharma, Inc.) (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

16

 

Dicerna Pharmaceuticals, Inc. (4)(15)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

1,749

 

Dynavax Technologies (4)(10)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

305

 

Eidos Therapeutics, Inc. (4)(10)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

15,000

 

 

 

255

 

 

 

305

 

Genocea Biosciences, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

191

 

Insmed, Incorporated (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

1,724

 

Melinta Therapeutics (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

51,821

 

 

 

2,000

 

 

 

330

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (4)(10)(16)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

779

 

Rocket Pharmaceuticals, Ltd (p.k.a. Inotek Pharmaceuticals Corporation) (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

944

 

 

 

1,500

 

 

 

19

 

Tricida, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

105,260

 

 

 

2,000

 

 

 

3,147

 

Subtotal: Drug Discovery & Development (1.44%)*

 

 

 

 

 

 

 

 

 

 

18,033

 

 

 

13,856

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc. (4)

 

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

25

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

25

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DocuSign, Inc. (4)

 

 

Information Services

 

Equity

 

Common Stock

 

 

385,000

 

 

 

6,081

 

 

 

20,386

 

Subtotal: Information Services (2.12%)*

 

 

 

 

 

 

 

 

 

 

6,081

 

 

 

20,386

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc. (15)

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

$

175

 

 

$

90

 

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

 

 

 

283

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

255

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

538

 

OfferUp, Inc.

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,920

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

729

 

Total OfferUp, Inc.

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

2,649

 

Oportun (p.k.a. Progress Financial)

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

337

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

247

 

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

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

584

 

RazorGator Interactive Group, Inc.

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series AA

 

 

34,783

 

 

 

15

 

 

 

 

Tectura Corporation (7)

 

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

414,994,863

 

 

 

900

 

 

 

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series BB

 

 

1,000,000

 

 

 

 

 

 

 

Total Tectura Corporation

 

 

 

 

 

 

415,994,863

 

 

 

900

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.40%)*

 

 

 

 

 

 

 

 

 

 

4,478

 

 

 

3,861

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pinterest, Inc.

 

 

Media/Content/Info

 

Equity

 

Preferred Series Seed

 

 

620,000

 

 

 

4,085

 

 

 

4,681

 

Subtotal: Media/Content/Info (0.49%)*

 

 

 

 

 

 

 

 

 

 

4,085

 

 

 

4,681

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtriCure, Inc. (4)(15)

 

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

7,536

 

 

 

266

 

 

 

204

 

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

 

 

 

 

 

 

657

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

729

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

680

 

Total Gelesis, Inc.

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,066

 

Medrobotics Corporation (15)

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

93

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

86

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

252

 

Total Medrobotics Corporation

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

431

 

Optiscan Biomedical, Corp. (6)(15)

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

411

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

119

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

3,721

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

31,199,131

 

 

 

2,609

 

 

 

2,843

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

94,415,930

 

 

 

11,521

 

 

 

7,094

 

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

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

723

 

Quanterix Corporation (4)

 

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

84,778

 

 

 

1,000

 

 

 

1,217

 

Subtotal: Medical Devices & Equipment (1.22%)*

 

 

 

 

 

 

 

 

 

 

16,644

 

 

 

11,735

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Braxton Technologies, LLC

 

 

Software

 

Equity

 

Class A Units

 

 

62,735

 

 

 

188

 

 

 

267

 

CapLinked, Inc.

 

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

90

 

Druva, Inc.

 

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,455

 

 

 

 

Software

 

Equity

 

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

358

 

Total Druva, Inc.

 

 

 

 

 

 

552,461

 

 

 

1,300

 

 

 

1,813

 

HighRoads, Inc.

 

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

NewVoiceMedia Limited (5)(10)

 

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

1,570

 

Palantir Technologies

 

 

Software

 

Equity

 

Preferred Series E

 

 

727,696

 

 

 

5,431

 

 

 

4,797

 

 

 

 

Software

 

Equity

 

Preferred Series G

 

 

326,797

 

 

 

2,211

 

 

 

2,155

 

Total Palantir Technologies

 

 

 

 

 

 

1,054,493

 

 

 

7,642

 

 

 

6,952

 

Sprinklr, Inc.

 

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

4,069

 

WildTangent, Inc. (15)

 

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

183

 

Subtotal: Software (1.55%)*

 

 

 

 

 

 

 

 

 

 

14,602

 

 

 

14,944

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

$

250

 

 

$

61

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

85

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

906

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

610

 

Total Gynesonics, Inc.

 

 

 

 

 

 

5,653,360

 

 

 

1,673

 

 

 

1,662

 

Transmedics, Inc.

 

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

447

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

418

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

1,160

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

591

 

Total Transmedics, Inc.

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

2,616

 

Subtotal: Surgical Devices (0.44%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

4,278

 

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

192

 

 

 

761

 

 

 

 

Modumetal, Inc.

 

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series C

 

 

3,107,520

 

 

 

500

 

 

 

91

 

Proterra, Inc.

 

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series 5

 

 

99,280

 

 

 

500

 

 

 

522

 

Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)

 

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

288

 

 

 

61,502

 

 

 

10,996

 

Subtotal: Sustainable and Renewable Technology (1.20%)*

 

 

 

 

 

 

 

 

 

 

63,263

 

 

 

11,609

 

Total: Equity Investments (12.61%)*

 

 

 

 

 

 

 

 

 

 

164,221

 

 

 

121,509

 

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labcyte, Inc. (15)

 

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

$

323

 

 

$

514

 

Subtotal: Biotechnology Tools (0.05%)*

 

 

 

 

 

 

 

 

 

 

323

 

 

 

514

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

3,328

 

 

 

 

 

 

14

 

Spring Mobile Solutions, Inc.

 

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.00%)*

 

 

 

 

 

 

 

 

 

 

418

 

 

 

14

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard (p.k.a Antenna79) (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

 

 

 

188

 

The Neat Company (15)

 

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

 

WHOOP, INC.

 

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

68,627

 

 

 

18

 

 

 

18

 

Subtotal: Consumer & Business Products (0.02%)*

 

 

 

 

 

 

 

 

 

 

841

 

 

 

206

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)(15)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

786

 

 

 

174

 

Agile Therapeutics, Inc. (4)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

3

 

BioQ Pharma Incorporated

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

658

 

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

 

 

 

20

 

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

 

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

1,222

 

Neos Therapeutics, Inc. (4)(15)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

25

 

Pulmatrix Inc. (4)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

25,150

 

 

 

116

 

 

 

 

ZP Opco, Inc. (p.k.a. Zosano Pharma) (4)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

3,618

 

 

 

266

 

 

 

 

Subtotal: Drug Delivery (0.22%)*

 

 

 

 

 

 

 

 

 

 

3,670

 

 

 

2,102

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

201,330

 

 

$

304

 

 

$

304

 

ADMA Biologics, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

30

 

Auris Medical Holding, AG (4)(5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

15,672

 

 

 

249

 

 

 

 

Brickell Biotech, Inc.

 

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

60

 

Cerecor, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

25

 

Chroma Therapeutics, Ltd. (5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Preferred Series D

 

 

325,261

 

 

 

490

 

 

 

 

Cleveland BioLabs, Inc. (4)(10)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,813

 

 

 

105

 

 

 

1

 

Concert Pharmaceuticals, Inc. (4)(10)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

132,069

 

 

 

545

 

 

 

584

 

CTI BioPharma Corp. (p.k.a. Cell Therapeutics, Inc.) (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

29,239

 

 

 

165

 

 

 

 

CytRx Corporation (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

105,694

 

 

 

160

 

 

 

24

 

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

 

 

 

 

Evofem Biosciences, Inc. (p.k.a Neothetics, Inc.) (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,806

 

 

 

266

 

 

 

7

 

Fortress Biotech, Inc. (p.k.a. Coronado Biosciences, Inc.) (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

11

 

Genocea Biosciences, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

403,136

 

 

 

431

 

 

 

160

 

Immune Pharmaceuticals (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

10,742

 

 

 

164

 

 

 

 

Melinta Therapeutics (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,545

 

 

 

626

 

 

 

 

Motif BioSciences Inc. (4)(5)(10)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,452

 

 

 

282

 

 

 

198

 

Myovant Sciences, Ltd. (4)(5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,710

 

 

 

460

 

 

 

892

 

Neuralstem, Inc. (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

5,783

 

 

 

77

 

 

 

 

Ology Bioservices, Inc. (p.k.a. Nanotherapeutics, Inc.) (15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (4)(10)(15)(16)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

75,214

 

 

 

178

 

 

 

33

 

Savara Inc. (p.k.a. Mast Therapeutics, Inc.) (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

32,467

 

 

 

203

 

 

 

130

 

Sorrento Therapeutics, Inc. (4)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

306,748

 

 

 

889

 

 

 

1,075

 

Stealth Bio Therapeutics Corp. (5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Preferred Series A

 

 

650,000

 

 

 

158

 

 

 

188

 

Tricida, Inc. (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

53,458

 

 

 

222

 

 

 

918

 

uniQure B.V. (4)(5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

701

 

XOMA Corporation (4)(10)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,063

 

 

 

279

 

 

 

9

 

Subtotal: Drug Discovery & Development (0.56%)*

 

 

 

 

 

 

 

 

 

 

8,332

 

 

 

5,350

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 DEVICES INC. (15)

 

 

Electronics & Computer Hardware

 

Warrant

 

Preferred Series D

 

 

79,856

 

 

 

100

 

 

 

68

 

Clustrix, Inc.

 

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

50,000

 

 

 

12

 

 

 

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

112

 

 

 

68

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (4)(15)

 

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

126

 

Subtotal: Healthcare Services, Other (0.01%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

126

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INMOBI Inc. (5)(10)

 

 

Information Services

 

Warrant

 

Common Stock

 

 

65,587

 

 

 

82

 

 

 

 

InXpo, Inc. (15)

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

898,134

 

 

 

49

 

 

 

74

 

MDX Medical, Inc. (15)

 

 

Information Services

 

Warrant

 

Common Stock

 

 

2,812,500

 

 

 

283

 

 

 

296

 

Netbase Solutions, Inc.

 

 

Information Services

 

Warrant

 

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

367

 

RichRelevance, Inc. (15)

 

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.08%)*

 

 

 

 

 

 

 

 

 

 

868

 

 

 

737

 

 

See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

231,535

 

 

$

73

 

 

$

 

Art.com, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

311,005

 

 

 

66

 

 

 

106

 

Blurb, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

42

 

ClearObject, Inc. (p.k.a. CloudOne, Inc.)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

177

 

Cloudpay, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

4,960

 

 

 

45

 

 

 

62

 

The Faction Group LLC

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

8,703

 

 

 

234

 

 

 

525

 

First Insight, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

45,551

 

 

 

56

 

 

 

57

 

Intent Media, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

230

 

Interactions Corporation

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G-3

 

 

68,187

 

 

 

204

 

 

 

422

 

Just Fabulous, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

3,003

 

Lightspeed POS, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

133

 

LogicSource (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

26

 

Oportun (p.k.a. Progress Financial)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

85

 

RumbleON, Inc. (4)

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

81,818

 

 

 

72

 

 

 

105

 

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

 

 

 

332

 

Tapjoy, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

42

 

Thumbtack, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Class A Units

 

 

102,821

 

 

 

124

 

 

 

101

 

TraceLink, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A-2

 

 

283,353

 

 

 

1,832

 

 

 

2,705

 

Xometry, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

87,784

 

 

 

47

 

 

 

47

 

Subtotal: Internet Consumer & Business Services (0.85%)*

 

 

 

 

 

 

 

 

 

 

6,451

 

 

 

8,200

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FanDuel, Inc. (10)

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

15,570

 

 

 

 

 

 

 

 

 

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

4,648

 

 

 

730

 

 

 

1,875

 

Total FanDuel, Inc.

 

 

 

 

 

 

20,218

 

 

 

730

 

 

 

1,875

 

Machine Zone, Inc.

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

1,552,710

 

 

 

1,958

 

 

 

3,972

 

Napster (p.k.a. Rhapsody International, Inc.) (15)

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

385

 

 

 

122

 

WP Technology, Inc. (Wattpad, Inc.) (5)(10)

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

255,818

 

 

 

4

 

 

 

39

 

Zoom Media Group, Inc.

 

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

30

 

Subtotal: Media/Content/Info (0.63%)*

 

 

 

 

 

 

 

 

 

 

3,425

 

 

 

6,038

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation (4)(15)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

8,603

 

 

 

459

 

 

 

 

Aspire Bariatrics, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B-1

 

 

112,858

 

 

 

455

 

 

 

 

Avedro, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

300,000

 

 

 

401

 

 

 

382

 

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

 

 

 

144

 

InspireMD, Inc. (4)(5)(10)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

1,124

 

 

 

242

 

 

 

 

Intuity Medical, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series 4

 

 

1,819,078

 

 

 

294

 

 

 

458

 

Medrobotics Corporation (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

106

 

Micell Technologies, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

164

 

NetBio, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

7,841

 

 

 

408

 

 

 

 

NinePoint Medical, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

126

 

Optiscan Biomedical, Corp. (6)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

7,442,491

 

 

 

572

 

 

 

233

 

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

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

630

 

Quanterix Corporation (4)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

66,039

 

 

 

204

 

 

 

199

 

Sebacia, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

778,301

 

 

 

133

 

 

 

173

 

SonaCare Medical, LLC (p.k.a. US HIFU, LLC)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Tela Bio, Inc. (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B

 

 

387,930

 

 

 

62

 

 

 

195

 

ViewRay, Inc. (4)(15)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

239

 

Subtotal: Medical Devices & Equipment (0.32%)*

 

 

 

 

 

 

 

 

 

 

5,395

 

 

 

3,049

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation (15)

 

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

159

 

 

 

475

 

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

718

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

1,110,000

 

 

 

258

 

 

 

1,193

 

Aquantia Corp. (4)

 

 

Semiconductors

 

Warrant

 

Common Stock

 

 

19,683

 

 

 

4

 

 

 

10

 

Avnera Corporation

 

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

141,567

 

 

 

47

 

 

 

248

 

Subtotal: Semiconductors (0.15%)*

 

 

 

 

 

 

 

 

 

 

309

 

 

 

1,451

 

See notes to consolidated financial statements.

21


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

73,584

 

 

$

249

 

 

$

82

 

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

76

 

Total Actifio, Inc.

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

158

 

CareCloud Corporation (15)

 

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

39

 

Clickfox, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

66

 

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

53

 

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

230

 

 

 

427

 

Total Clickfox, Inc.

 

 

 

 

 

 

3,848,796

 

 

 

1,290

 

 

 

546

 

DNAnexus, Inc.

 

 

Software

 

Warrant

 

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

84

 

Evernote Corporation (15)

 

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

248

 

Fuze, Inc. (15)(16)

 

 

Software

 

Warrant

 

Preferred Series F

 

 

256,158

 

 

 

89

 

 

 

 

Lightbend, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C-1

 

 

391,778

 

 

 

79

 

 

 

78

 

Mattersight Corporation (4)

 

 

Software

 

Warrant

 

Common Stock

 

 

357,143

 

 

 

538

 

 

 

144

 

Message Systems, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

451

 

Neos, Inc. (15)

 

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

 

NewVoiceMedia Limited (5)(10)

 

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

206

 

OneLogin, Inc. (15)

 

 

Software

 

Warrant

 

Common Stock

 

 

305,296

 

 

 

224

 

 

 

284

 

Poplicus, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

132,168

 

 

 

 

 

 

 

Quid, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

15

 

RapidMiner, Inc.

 

 

Software

 

Warrant

 

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

26

 

RedSeal Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C-Prime

 

 

640,603

 

 

 

66

 

 

 

36

 

Signpost, Inc.

 

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

180

 

Wrike, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

698,760

 

 

 

462

 

 

 

1,676

 

Subtotal: Software (0.43%)*

 

 

 

 

 

 

 

 

 

 

4,529

 

 

 

4,171

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (4)

 

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

1,717,709

 

 

 

861

 

 

 

203

 

Subtotal: Specialty Pharmaceuticals (0.02%)*

 

 

 

 

 

 

 

 

 

 

861

 

 

 

203

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

75

 

 

 

20

 

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

360

 

Total Gynesonics, Inc.

 

 

 

 

 

 

1,756,445

 

 

 

395

 

 

 

380

 

Transmedics, Inc.

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

568

 

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

50,544

 

 

 

38

 

 

 

101

 

Total Transmedics, Inc.

 

 

 

 

 

 

225,544

 

 

 

138

 

 

 

669

 

Subtotal: Surgical Devices (0.11%)*

 

 

 

 

 

 

 

 

 

 

533

 

 

 

1,049

 

 

See notes to consolidated financial statements.

22


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc. (15)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

471,327

 

 

$

120

 

 

$

 

American Superconductor Corporation (4)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

58,823

 

 

 

39

 

 

 

66

 

Calera, Inc. (15)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

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

 

 

5,310

 

 

 

181

 

 

 

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 2-A

 

 

63

 

 

 

50

 

 

 

 

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

 

 

 

 

 

 

5,373

 

 

 

231

 

 

 

 

Fulcrum Bioenergy, Inc.

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

274

 

 

 

472

 

GreatPoint Energy, Inc. (15)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D-1

 

 

393,212

 

 

 

548

 

 

 

 

Kinestral Technologies, Inc.

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

325,000

 

 

 

155

 

 

 

104

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

32

 

Total Kinestral Technologies, Inc.

 

 

 

 

 

 

456,883

 

 

 

218

 

 

 

136

 

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

 

 

 

470

 

Rive Technology, Inc. (15)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

12

 

 

 

8

 

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

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.12%)*

 

 

 

 

 

 

 

 

 

 

2,924

 

 

 

1,152

 

Total: Warrant Investments (3.57%)*

 

 

 

 

 

 

 

 

 

 

39,148

 

 

 

34,430

 

Total Investments in Securities (176.60%)*

 

 

 

 

 

 

 

 

 

$

1,757,560

 

 

$

1,701,936

 

 

*

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 5.00% at June 30, 2018. Daily LIBOR, 1-month LIBOR, 3-month LIBOR and 12-month LIBOR represent 1.93%, 2.09%, 2.34% and

2.76%, respectively, at June 30, 2018.

(3)

Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $38.1 million, $102.0 million and $64.0 million respectively. The tax cost of investments is $1.7 billion.

(4)

Except for warrants in 41 publicly traded companies and common stock in 21 publicly traded companies, all investments are restricted at June 30, 2018 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 June 30, 2018, and is therefore considered non-income producing. Note that at June 30, 2018, only the $10.7 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 June 30, 2018.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at June 30, 2018. Refer to Note 10.

(18)

Denotes unitranche debt with first lien “last-out” senior secured position and security interest in all assets of the portfolio company whereby the “last-out” portion will be subordinated to the “first-out” portion in a liquidation, sale or other disposition.

(19)

Denotes second lien senior secured debt.


See notes to consolidated financial statements.

23


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 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

 

$

4,999

 

 

$

5,115

 

 

$

5,146

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,115

 

 

 

5,146

 

Subtotal: Biotechnology Tools (0.61%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,115

 

 

 

5,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Consumer & Business Products

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%

 

$

1,000

 

 

 

1,000

 

 

 

1,000

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000

 

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

 

$

18,440

 

 

 

18,580

 

 

 

18,571

 

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

 

 

 

 

 

 

 

 

 

 

 

 

20,361

 

 

 

18,571

 

Subtotal: Consumer & Business Products (2.33%)*

 

 

 

 

 

 

 

 

 

 

 </