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 September 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 every Interactive Data File required to be submitted 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 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 October 29, 2018, there were 96,731,791 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

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

  

3

 

 

 

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

  

5

 

 

 

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

  

6

 

 

 

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

  

7

 

 

 

Consolidated Schedule of Investments as of September 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

  

74

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

94

Item 4.

 

 

Controls and Procedures

  

95

 

PART II. OTHER INFORMATION

  

96

 

Item 1.

 

Legal Proceedings

  

96

Item 1A.

 

 

Risk Factors

 

96

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

99

Item 3.

 

 Defaults Upon Senior Securities

  

99

Item 4.

 

 

Mine Safety Disclosures

  

99

Item 5.

 

 

Other Information

  

99

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

100

 

SIGNATURES

  

103

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

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

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $1,663,658 and $1,506,454, respectively)

 

$

1,670,034

 

 

$

1,491,458

 

Control investments (cost of $64,630 and $25,419, respectively)

 

 

62,387

 

 

 

19,461

 

Affiliate investments (cost of $84,821 and $87,956, respectively)

 

 

28,095

 

 

 

31,295

 

Total investments in securities, at value (cost of $1,813,109 and $1,619,829, respectively)

 

 

1,760,516

 

 

 

1,542,214

 

Cash and cash equivalents

 

 

43,212

 

 

 

91,309

 

Restricted cash

 

 

2,429

 

 

 

3,686

 

Interest receivable

 

 

15,722

 

 

 

12,262

 

Other assets

 

 

1,175

 

 

 

5,244

 

Total assets

 

$

1,823,054

 

 

$

1,654,715

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

21,473

 

 

$

26,896

 

SBA Debentures, net (principal of $149,000 and $190,200, respectively) (1)

 

 

147,527

 

 

 

188,141

 

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

 

 

147,859

 

 

 

147,572

 

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

 

 

81,791

 

 

 

179,001

 

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

 

 

72,495

 

 

 

 

2033 Notes, net (principal of $40,000 and $0, respectively) (1)

 

 

38,752

 

 

 

 

2021 Asset-Backed Notes, net (principal of $3,515 and $49,153, respectively) (1)

 

 

3,423

 

 

 

48,650

 

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

 

 

224,660

 

 

 

223,488

 

Credit Facilities

 

 

80,894

 

 

 

 

Total liabilities

 

$

818,874

 

 

$

813,748

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

96

 

 

 

85

 

Capital in excess of par value

 

 

1,060,875

 

 

 

908,501

 

Unrealized appreciation (depreciation) on investments (2)

 

 

(53,784

)

 

 

(79,760

)

Accumulated undistributed realized gains (losses) on investments

 

 

(30,855

)

 

 

(20,374

)

Undistributed net investment income

 

 

27,848

 

 

 

32,515

 

Total net assets

 

$

1,004,180

 

 

$

840,967

 

Total liabilities and net assets

 

$

1,823,054

 

 

$

1,654,715

 

 

 

 

 

 

 

 

 

 

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

 

 

96,751

 

 

 

84,424

 

Net asset value per share

 

$

10.38

 

 

$

9.96

 

 

(1)

The Company’s SBA Debentures, 2022 Notes, 2024 Notes, 2025 Notes, 2033 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 $1.2 million and $2.1 million in net unrealized depreciation on other assets and accrued liabilities, including escrow receivables, and estimated taxes payable as of September 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)

 

September 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

2,429

 

 

$

3,686

 

Total investments in securities, at value (cost of $86,070 and $146,208, respectively)

 

 

85,965

 

 

 

144,513

 

Total assets

 

$

88,394

 

 

$

148,199

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2021 Asset-Backed Notes, net (principal of $3,515 and $49,153, respectively) (1)

 

$

3,423

 

 

$

48,650

 

Total liabilities

 

$

3,423

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

47,662

 

 

$

41,725

 

 

$

134,031

 

 

$

124,049

 

Control investments

 

921

 

 

 

464

 

 

 

2,348

 

 

 

1,505

 

Affiliate investments

 

509

 

 

 

246

 

 

 

1,570

 

 

 

248

 

Total interest income

 

49,092

 

 

 

42,435

 

 

 

137,949

 

 

 

125,802

 

Fee income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitment, facility and loan fee income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

1,858

 

 

 

2,239

 

 

 

6,228

 

 

 

7,613

 

Control investments

 

1

 

 

 

1

 

 

 

1

 

 

 

11

 

Affiliate investments

 

71

 

 

 

2

 

 

 

263

 

 

 

2

 

Total commitment, facility and loan fee income

 

1,930

 

 

 

2,242

 

 

 

6,492

 

 

 

7,626

 

One-time fee income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

1,580

 

 

 

1,188

 

 

 

6,423

 

 

 

7,254

 

Total one-time fee income

 

1,580

 

 

 

1,188

 

 

 

6,423

 

 

 

7,254

 

Total fee income

 

3,510

 

 

 

3,430

 

 

 

12,915

 

 

 

14,880

 

Total investment income

 

52,602

 

 

 

45,865

 

 

 

150,864

 

 

 

140,682

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

9,451

 

 

 

9,185

 

 

 

28,715

 

 

 

28,046

 

Loan fees

 

1,502

 

 

 

1,314

 

 

 

6,039

 

 

 

5,500

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal Expenses

 

677

 

 

 

925

 

 

 

1,889

 

 

 

3,792

 

Other Expenses

 

3,044

 

 

 

2,623

 

 

 

9,515

 

 

 

8,570

 

Total general and administrative

 

3,721

 

 

 

3,548

 

 

 

11,404

 

 

 

12,362

 

Employee compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

5,294

 

 

 

6,014

 

 

 

18,069

 

 

 

17,276

 

Stock-based compensation

 

3,332

 

 

 

1,831

 

 

 

8,498

 

 

 

5,573

 

Total employee compensation

 

8,626

 

 

 

7,845

 

 

 

26,567

 

 

 

22,849

 

Total operating expenses

 

23,300

 

 

 

21,892

 

 

 

72,725

 

 

 

68,757

 

Net investment income

 

29,302

 

 

 

23,973

 

 

 

78,139

 

 

 

71,925

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

3,350

 

 

 

(8,911

)

 

 

(4,115

)

 

 

(10,940

)

Control investments

 

 

 

 

(15,543

)

 

 

(4,308

)

 

 

(15,989

)

Affiliate investments

 

 

 

 

 

 

 

(2,058

)

 

 

 

Total net realized gain (loss) on investments

 

3,350

 

 

 

(24,454

)

 

 

(10,481

)

 

 

(26,929

)

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

3,967

 

 

 

11,320

 

 

 

22,327

 

 

 

45,420

 

Control investments

 

378

 

 

 

17,624

 

 

 

3,715

 

 

 

17,703

 

Affiliate investments

 

(1,368

)

 

 

4,609

 

 

 

(66

)

 

 

(47,486

)

Total net unrealized appreciation (depreciation) on investments

 

2,977

 

 

 

33,553

 

 

 

25,976

 

 

 

15,637

 

Total net realized and unrealized gain (loss)

 

6,327

 

 

 

9,099

 

 

 

15,495

 

 

 

(11,292

)

Net increase (decrease) in net assets resulting from operations

$

35,629

 

 

$

33,072

 

 

$

93,634

 

 

$

60,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.29

 

 

$

0.87

 

 

$

0.87

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.37

 

 

$

0.40

 

 

$

1.04

 

 

$

0.73

 

Diluted

$

0.37

 

 

$

0.40

 

 

$

1.04

 

 

$

0.73

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

95,460

 

 

 

82,496

 

 

 

89,100

 

 

 

82,073

 

Diluted

 

95,671

 

 

 

82,607

 

 

 

89,212

 

 

 

82,173

 

Distributions declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

$

0.93

 

 

$

0.93

 

See notes to consolidated financial statements.

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

15,637

 

 

 

(26,929

)

 

 

71,925

 

 

 

60,633

 

Public offering, net of offering expenses

 

4,077

 

 

 

4

 

 

 

56,330

 

 

 

 

 

 

 

 

 

 

 

 

56,334

 

Issuance of common stock due to stock option exercises

 

46

 

 

 

 

 

 

213

 

 

 

 

 

 

 

 

 

 

 

 

213

 

Retired shares from net issuance

 

(18

)

 

 

 

 

 

(172

)

 

 

 

 

 

 

 

 

 

 

 

(172

)

Issuance of common stock under restricted stock plan

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(187

)

 

 

 

 

 

(2,483

)

 

 

 

 

 

 

 

 

 

 

 

(2,483

)

Distributions reinvested in common stock

 

132

 

 

 

 

 

 

1,780

 

 

 

 

 

 

 

 

 

 

 

 

1,780

 

Issuance of Convertible Notes

 

 

 

 

 

 

 

3,413

 

 

 

 

 

 

 

 

 

 

 

 

3,413

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,893

)

 

 

(62,104

)

 

 

(76,997

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,619

 

 

 

 

 

 

 

 

 

 

 

 

5,619

 

Balance at September 30, 2017

 

83,615

 

 

$

84

 

 

$

904,357

 

 

$

(73,388

)

 

$

(27,508

)

 

$

32,739

 

 

$

836,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

25,976

 

 

 

(10,481

)

 

 

78,139

 

 

 

93,634

 

Public offering, net of offering expenses

 

11,953

 

 

 

11

 

 

 

143,787

 

 

 

 

 

 

 

 

 

 

 

 

143,798

 

Issuance of common stock due to stock option exercises

 

63

 

 

 

 

 

 

704

 

 

 

 

 

 

 

 

 

 

 

 

704

 

Retired shares from net issuance

 

(57

)

 

 

 

 

 

(718

)

 

 

 

 

 

 

 

 

 

 

 

(718

)

Issuance of common stock under restricted stock plan

 

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(76

)

 

 

 

 

 

(937

)

 

 

 

 

 

 

 

 

 

 

 

(937

)

Distributions reinvested in common stock

 

108

 

 

 

 

 

 

1,372

 

 

 

 

 

 

 

 

 

 

 

 

1,372

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(82,806

)

 

 

(82,806

)

Stock-based compensation (1)

 

 

 

 

 

 

 

8,166

 

 

 

 

 

 

 

 

 

 

 

 

8,166

 

Balance at September 30, 2018

 

96,751

 

 

$

96

 

 

$

1,060,875

 

 

$

(53,784

)

 

$

(30,855

)

 

$

27,848

 

 

$

1,004,180

 

 

(1)

Stock-based compensation includes $33 and $46 of restricted stock and option expense related to director compensation for the nine months ended September 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 Nine Months Ended September 30,

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

93,634

 

 

$

60,633

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(706,113

)

 

 

(487,321

)

Principal and fee payments received on investments

 

503,971

 

 

 

486,985

 

Proceeds from the sale of investments

 

17,521

 

 

 

21,945

 

Net unrealized depreciation (appreciation) on investments

 

(25,976

)

 

 

(15,637

)

Net realized loss (gain) on investments

 

10,481

 

 

 

26,929

 

Accretion of paid-in-kind principal

 

(7,040

)

 

 

(7,078

)

Accretion of loan discounts

 

(2,961

)

 

 

(5,242

)

Accretion of loan discount on Convertible Notes

 

504

 

 

 

448

 

Accretion of loan exit fees

 

(12,482

)

 

 

(14,413

)

Change in deferred loan origination revenue

 

3,472

 

 

 

1,083

 

Unearned fees related to unfunded commitments

 

1,908

 

 

 

441

 

Amortization of debt fees and issuance costs

 

5,197

 

 

 

4,534

 

Depreciation

 

147

 

 

 

153

 

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

 

8,166

 

 

 

5,619

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(3,460

)

 

 

1,107

 

Prepaid expenses and other assets

 

2,141

 

 

 

(1,100

)

Accounts payable

 

(187

)

 

 

 

Accrued liabilities

 

(4,282

)

 

 

(2,457

)

Net cash provided by (used in) operating activities

 

(115,359

)

 

 

76,629

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(325

)

 

 

(127

)

Net cash provided by (used in) investing activities

 

(325

)

 

 

(127

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

143,498

 

 

 

56,334

 

Retirement of employee shares

 

(651

)

 

 

(2,442

)

Distributions paid

 

(81,434

)

 

 

(75,217

)

Issuance of 2022 Convertible Notes

 

 

 

 

230,000

 

Issuance of 2024 Notes

 

 

 

 

5,637

 

Issuance of 2025 Notes

 

75,000

 

 

 

 

Issuance of 2033 Notes

 

40,000

 

 

 

 

Repayments of 2019 Notes

 

 

 

 

(110,364

)

Repayments of 2024 Notes

 

(100,000

)

 

 

 

Repayments of 2021 Asset-Backed Notes

 

(45,637

)

 

 

(43,729

)

Repayments of Long-Term SBA Debentures

 

(41,200

)

 

 

 

Borrowings of credit facilities

 

216,109

 

 

 

8,497

 

Repayments of credit facilities

 

(135,216

)

 

 

(13,513

)

Cash paid for debt issuance costs

 

(3,978

)

 

 

(4,662

)

Fees paid for credit facilities and debentures

 

(161

)

 

 

(28

)

Net cash provided by (used in) financing activities

 

66,330

 

 

 

50,513

 

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

 

(49,354

)

 

 

127,015

 

Cash, cash equivalents and restricted cash at beginning of period

 

94,995

 

 

 

21,366

 

Cash, cash equivalents and restricted cash at end of period

$

45,641

 

 

$

148,381

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Distributions reinvested

 

1,372

 

 

 

1,780

 

 

(1)

Stock-based compensation includes $33 and $46 of restricted stock and option expense related to director compensation for the nine months ended September 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 Nine Months Ended September 30,

 

(Dollars in thousands)

2018

 

 

2017

 

Cash and cash equivalents

$

43,212

 

 

$

140,568

 

Restricted cash

 

2,429

 

 

 

7,813

 

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

$

45,641

 

 

$

148,381

 

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

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year 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

 

 

$

5,171

 

 

$

5,171

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,171

 

 

 

5,171

 

Subtotal: Biotechnology Tools (0.51%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,171

 

 

 

5,171

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHOOP, INC. (12)

 

 

Consumer & Business Products

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.75%

or Floor rate of 8.50%, 6.95% Exit Fee

 

$

6,000

 

 

 

5,970

 

 

 

5,970

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,970

 

 

 

5,970

 

Subtotal: Consumer & Business Products (0.59%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,970

 

 

 

5,970

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

 

Diversified Financial Services

 

Unsecured

 

March 2023

 

Interest rate FIXED 14.50%

 

$

15,000

 

 

 

14,718

 

 

 

14,865

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

14,718

 

 

 

14,865

 

Subtotal: Diversified Financial Services (1.48%)*

 

 

 

 

 

 

 

 

 

 

 

 

14,718

 

 

 

14,865

 

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

 

$

5,939

 

 

 

6,523

 

 

 

6,523

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,523

 

 

 

6,523

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (11)

 

 

Drug Delivery

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 6.05%

or Floor rate of 9.55%, 11.69% Exit Fee

 

$

12,943

 

 

 

13,786

 

 

 

13,733

 

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

 

 

 

25,233

 

 

 

25,304

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

39,019

 

 

 

39,037

 

Subtotal: Drug Delivery (4.54%)*

 

 

 

 

 

 

 

 

 

 

 

 

45,542

 

 

 

45,560

 

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

$

1,527

 

 

$

2,209

 

 

$

2,209

 

Brickell Biotech, Inc. (12)

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70%

or Floor rate of 9.20%, 7.82% Exit Fee

 

$

5,581

 

 

 

5,996

 

 

 

5,996

 

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

 

 

 

65

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,766

 

 

 

8,270

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (10)

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.50%

or Floor rate of 9.25%, 3.95% Exit Fee

 

$

10,000

 

 

 

9,815

 

 

 

9,815

 

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

 

 

 

10,053

 

 

 

9,954

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70%

or Floor rate of 9.45%, 3.00% Exit Fee

 

$

10,000

 

 

 

10,144

 

 

 

10,123

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

$

20,000

 

 

 

20,197

 

 

 

20,077

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80%

or Floor rate of 10.55%

 

$

55,000

 

 

 

54,107

 

 

 

54,262

 

BridgeBio Pharma LLC (13)

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.35%

or Floor rate of 9.35%, 6.35% Exit Fee

 

$

35,000

 

 

 

34,850

 

 

 

34,850

 

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

 

 

 

14,976

 

 

 

14,990

 

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

 

 

 

14,762

 

 

 

14,767

 

Merrimack Pharmaceuticals, Inc. (12)

 

 

Drug Discovery & Development

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%, 5.55% Exit Fee

 

$

15,000

 

 

 

14,928

 

 

 

14,928

 

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

 

 

 

35,116

 

 

 

35,519

 

Metuchen Pharmaceuticals LLC (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

 

$

19,902

 

 

 

20,508

 

 

 

20,480

 

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

 

 

 

14,839

 

 

 

14,787

 

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

 

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.00%

or Floor rate of 8.25%, 6.55% Exit Fee

 

$

40,000

 

 

 

40,050

 

 

 

39,638

 

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

 

 

 

40,776

 

 

 

40,383

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,210

 

 

 

10,096

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.50%, 2.25% Exit Fee

 

$

10,000

 

 

 

10,064

 

 

 

9,980

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

August 2022

 

Interest rate PRIME + 2.10%

or Floor rate of 7.85%, 6.95% Exit Fee

 

$

10,000

 

 

 

9,959

 

 

 

9,959

 

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

 

 

 

 

 

 

$

70,000

 

 

 

71,009

 

 

 

70,418

 

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%, 6.00% Exit Fee

 

$

20,000

 

 

 

20,253

 

 

 

20,059

 

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

 

 

 

25,132

 

 

 

25,096

 

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

 

 

 

20,608

 

 

 

20,551

 

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

 

 

 

5,031

 

 

 

5,026

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,059

 

 

 

5,054

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,030

 

 

 

5,023

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

9,967

 

 

 

9,888

 

Total Verastem, Inc.

 

 

 

 

 

 

$

25,000

 

 

 

25,087

 

 

 

24,991

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

436,237

 

 

 

435,228

 

Subtotal: Drug Discovery & Development (44.17%)*

 

 

 

 

 

 

 

 

 

 

 

 

447,003

 

 

 

443,498

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

10,080

 

 

$

10,099

 

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

 

$

12,138

 

 

 

12,153

 

 

 

12,214

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

22,233

 

 

 

22,313

 

Subtotal: Electronics & Computer Hardware (2.22%)*

 

 

 

 

 

 

 

 

 

 

 

 

22,233

 

 

 

22,313

 

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%

 

$

20,346

 

 

 

20,211

 

 

 

20,116

 

 

 

 

Healthcare Services, Other

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75%

or Floor rate of 9.00%,

PIK Interest 1.75%

 

$

5,076

 

 

 

5,047

 

 

 

5,020

 

Total Medsphere Systems Corporation

 

 

 

 

 

 

$

25,422

 

 

 

25,258

 

 

 

25,136

 

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

 

 

 

30,320

 

 

 

30,127

 

PH Group Holdings (13)

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

20,000

 

 

 

19,929

 

 

 

19,946

 

 

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45%

or Floor rate of 10.95%

 

$

10,000

 

 

 

9,955

 

 

 

9,931

 

Total PH Group Holdings

 

 

 

 

 

 

$

30,000

 

 

 

29,884

 

 

 

29,877

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

85,462

 

 

 

85,140

 

Subtotal: Healthcare Services, Other (8.48%)*

 

 

 

 

 

 

 

 

 

 

 

 

85,462

 

 

 

85,140

 

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%

 

$

15,223

 

 

 

14,921

 

 

 

14,864

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

14,921

 

 

 

14,864

 

Subtotal: Information Services (1.48%)*

 

 

 

 

 

 

 

 

 

 

 

 

14,921

 

 

 

14,864

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

2,000

 

 

 

2,000

 

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

 

 

 

19,932

 

 

 

19,953

 

Art.com, Inc. (12)(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

 

$

10,074

 

 

 

9,946

 

 

 

9,926

 

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

 

 

 

10,949

 

 

 

10,949

 

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%

 

$

50,410

 

 

 

50,365

 

 

 

50,365

 

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

 

 

 

5,887

 

 

 

5,887

 

Greenphire, Inc. (17)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 8.00%

or Floor rate of 9.00%

 

$

3,125

 

 

 

3,125

 

 

 

3,129

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 3.75%

or Floor rate of 7.00%

 

$

1,500

 

 

 

1,500

 

 

 

1,500

 

Total Greenphire, Inc.

 

 

 

 

 

 

$

4,625

 

 

 

4,625

 

 

 

4,629

 

Intent Media, Inc. (12)(17)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.13%

or Floor rate of 10.125%, 2.00% Exit Fee

 

$

9,200

 

 

 

9,210

 

 

 

9,286

 

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

 

 

 

25,073

 

 

 

25,205

 

LogicSource

 

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25%

or Floor rate of 9.75%, 5.00% Exit Fee

 

$

3,972

 

 

 

4,331

 

 

 

4,334

 

Postmates, Inc. (17)(19)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2022

 

Interest rate PRIME + 3.85%

or Floor rate of 8.85%, 8.05% Exit Fee

 

$

20,000

 

 

 

19,516

 

 

 

19,516

 

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

 

 

 

4,984

 

 

 

4,984

 

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

 

$

41,635

 

 

 

41,773

 

 

 

41,890

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2020

 

Interest rate PRIME + 5.65%

or Floor rate of 10.65%,

PIK Interest 1.95%, 2.55% Exit Fee

 

$

5,008

 

 

 

4,778

 

 

 

4,778

 

Total Snagajob.com, Inc.

 

 

 

 

 

 

$

46,643

 

 

 

46,551

 

 

 

46,668

 

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

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%,

PIK Interest 3.00%

 

$

20,766

 

 

 

20,766

 

 

 

19,672

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

10,680

 

 

 

240

 

 

 

 

Total Tectura Corporation

 

 

 

 

 

 

$

31,446

 

 

 

21,006

 

 

 

19,672

 

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%

 

$

7,467

 

 

 

7,467

 

 

 

7,482

 

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%

 

$

20,980

 

 

 

20,799

 

 

 

20,805

 

Xometry, Inc. (17)(19)

 

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 3.95%

or Floor rate of 8.45%, 7.45% Exit Fee

 

$

7,000

 

 

 

6,996

 

 

 

6,996

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

267,637

 

 

 

266,657

 

Subtotal: Internet Consumer & Business Services (26.75%)*

 

 

 

 

 

 

 

 

 

 

269,637

 

 

 

268,657

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

$

15,240

 

 

$

15,234

 

 

$

15,364

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

15,234

 

 

 

15,364

 

Subtotal: Media/Content/Info (1.53%)*

 

 

 

 

 

 

 

 

 

 

 

 

15,234

 

 

 

15,364

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc. (15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

December 2018

 

Interest rate PRIME + 4.00%

or Floor rate of 9.25%, 6.85% Exit Fee

 

$

1,793

 

 

 

2,273

 

 

 

808

 

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

 

$

3,146

 

 

 

3,524

 

 

 

3,524

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,797

 

 

 

4,332

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flowonix Medical, Inc.

 

 

Medical Devices & Equipment

 

Senior Secured

 

October 2021

 

Interest rate PRIME + 4.00%

or Floor rate of 9.00%, 7.95% Exit Fee

 

$

15,000

 

 

 

14,480

 

 

 

14,480

 

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

 

 

 

17,375

 

 

 

17,402

 

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

 

$

6,853

 

 

 

7,327

 

 

 

7,266

 

Quanterix Corporation (11)

 

 

Medical Devices & Equipment

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 2.75%

or Floor rate of 8.00%, 0.58% Exit Fee

 

$

7,688

 

 

 

7,635

 

 

 

7,635

 

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

 

 

 

18,034

 

 

 

18,034

 

Sebacia, Inc. (15)

 

 

Medical Devices & Equipment

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 4.35%

or Floor rate of 8.85%, 6.05% Exit Fee

 

$

11,000

 

 

 

11,061

 

 

 

11,003

 

Transenterix, Inc. (10)(13)

 

 

Medical Devices & Equipment

 

Senior Secured

 

June 2022

 

Interest rate PRIME + 4.55%

or Floor rate of 9.55%, 6.95% Exit Fee

 

$

20,000

 

 

 

19,930

 

 

 

19,930

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

95,842

 

 

 

95,750

 

Subtotal: Medical Devices & Equipment (9.97%)*

 

 

 

 

 

 

 

 

 

 

 

 

101,639

 

 

 

100,082

 

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

 

 

 

7,148

 

 

 

7,148

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,148

 

 

 

7,148

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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 7.88%

 

$

39,900

 

 

$

39,129

 

 

$

39,227

 

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

 

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50%

 

$

52,275

 

 

 

51,290

 

 

 

51,292

 

Clarabridge, Inc. (12)(14)

 

 

Software

 

Senior Secured

 

April 2021

 

Interest rate PRIME + 4.80%

or Floor rate of 8.55%,

PIK Interest 3.25%

 

$

41,916

 

 

 

41,898

 

 

 

42,356

 

Couchbase, Inc. (15)(17)(19)

 

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.25%

or Floor rate of 10.75%

 

$

15,000

 

 

 

14,915

 

 

 

14,915

 

Credible Behavioral Health, Inc. (14)(17)

 

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 3.20%

or Floor rate of 7.95%,

PIK Interest 3.30%

 

$

7,510

 

 

 

7,421

 

 

 

7,421

 

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

 

$

10,039

 

 

 

10,018

 

 

 

10,018

 

Emma, Inc. (17)(18)

 

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 8.39%

 

$

37,037

 

 

 

35,793

 

 

 

36,062

 

Evernote Corporation (14)(17)(19)

 

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45%

or Floor rate of 8.95%

 

$

6,000

 

 

 

5,984

 

 

 

6,067

 

 

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 1.25%

 

$

4,061

 

 

 

4,043

 

 

 

4,062

 

 

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 6.00%

or Floor rate of 9.50%,

PIK Interest 1.25%

 

$

2,507

 

 

 

2,491

 

 

 

2,491

 

Total Evernote Corporation

 

 

 

 

 

 

$

12,568

 

 

 

12,518

 

 

 

12,620

 

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

 

$

50,929

 

 

 

51,423

 

 

 

51,714

 

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

 

$

10,152

 

 

 

10,214

 

 

 

10,171

 

 

 

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.25%

or Floor rate of 8.75%,

PIK Interest 1.55%

 

$

2,006

 

 

 

2,006

 

 

 

1,996

 

Total Impact Radius Holdings, Inc.

 

 

 

 

 

 

$

12,158

 

 

 

12,220

 

 

 

12,167

 

Insurance Technologies Corporation (17)

 

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.75%

or Floor rate of 8.75%

 

$

12,500

 

 

 

12,271

 

 

 

12,383

 

Lightbend, Inc. (14)(15)

 

 

Software

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 4.25%

or Floor rate of 8.50%,

PIK Interest 2.00%

 

$

11,122

 

 

 

10,963

 

 

 

10,965

 

Lithium Technologies, Inc. (17)

 

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 3-month LIBOR + 8.00%

or Floor rate of 9.00%

 

$

12,000

 

 

 

11,774

 

 

 

11,774

 

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

 

 

 

11,846

 

 

 

11,931

 

OneLogin, Inc. (14)(15)

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 5.95%

or Floor rate of 10.70%,

PIK Interest 2.00%

 

$

26,272

 

 

 

25,961

 

 

 

26,239

 

Quid, Inc. (14)(15)

 

 

Software

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75%

or Floor rate of 8.25%,

PIK Interest 2.25%, 3.00% Exit Fee

 

$

8,446

 

 

 

8,609

 

 

 

8,627

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)

 

RapidMiner, Inc. (12)(14)

 

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 5.50%

or Floor rate of 9.75%,

PIK Interest 1.65%

 

$

7,089

 

 

$

7,070

 

 

$

7,038

 

Regent Education (14)

 

 

Software

 

Senior Secured

 

January 2021

 

Interest rate FIXED 10.00%,

PIK Interest 2.00%, 6.35% Exit Fee

 

$

3,162

 

 

 

3,185

 

 

 

1,987

 

Salsa Labs, Inc. (17)

 

 

Software

 

Senior Secured

 

April 2023

 

Interest rate 3-month LIBOR + 8.15%

or Floor rate of 9.15%

 

$

6,000

 

 

 

5,889

 

 

 

5,889

 

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

 

$

15,718

 

 

 

16,111

 

 

 

16,110

 

ThreatConnect, Inc. (14)(15)(19)

 

 

Software

 

Senior Secured

 

October 2022

 

Interest rate PRIME + 4.95%

or Floor rate of 9.95%,

PIK Interest 1.05%, 2.20% Exit Fee

 

$

7,500

 

 

 

7,405

 

 

 

7,405

 

Vela Trading Technologies (18)

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 10.50%

or Floor rate of 10.50%

 

$

19,875

 

 

 

19,443

 

 

 

19,642

 

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

 

$

10,320

 

 

 

10,161

 

 

 

10,437

 

YouEarnedIt (18)

 

 

Software

 

Senior Secured

 

July 2023

 

Interest rate 1-month LIBOR + 8.66%

 

$

9,000

 

 

 

8,746

 

 

 

8,746

 

ZocDoc (19)

 

 

Software

 

Senior Secured

 

August 2021

 

Interest rate 3-month PRIME + 6.20%

or Floor rate of 10.95%, 2.00% Exit Fee

 

$

30,000

 

 

 

29,953

 

 

 

30,093

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

466,012

 

 

 

467,058

 

Subtotal: Software (47.22%)*

 

 

 

 

 

 

 

 

 

 

 

 

473,160

 

 

 

474,206

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Surgical Devices

 

Unsecured Convertible Debt

 

May 2019

 

PIK Interest 8.00%

 

$

144

 

 

 

144

 

 

 

181

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

144

 

 

 

181

 

Subtotal: Surgical Devices (0.02%)*

 

 

 

 

 

 

 

 

 

 

 

 

144

 

 

 

181

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)(14)(19)

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 8.70%

or Floor rate of 12.95%, 5.00% Exit Fee

 

$

10,000

 

 

 

9,999

 

 

 

9,999

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2018

 

PIK Interest 10.00%

 

$

634

 

 

 

634

 

 

 

634

 

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2018

 

Interest rate PRIME + 10.70%

or Floor rate of 15.70%,

PIK Interest 2.00%

 

$

600

 

 

 

593

 

 

 

593

 

Total Solar Spectrum LLC

 

 

 

 

 

 

$

11,234

 

 

 

11,226

 

 

 

11,226

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,226

 

 

 

11,226

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

13,176

 

 

 

13,213

 

 

 

 

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

 

 

 

13,607

 

 

 

13,615

 

Total FuelCell Energy, Inc.

 

 

 

 

 

 

$

25,000

 

 

 

26,783

 

 

 

26,828

 

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

 

$

30,000

 

 

 

29,692

 

 

 

29,692

 

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

 

 

 

7,569

 

 

 

7,592

 

Proterra, Inc. (11)(14)

 

 

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

 

$

25,372

 

 

 

26,581

 

 

 

26,723

 

 

 

 

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

 

$

5,074

 

 

 

5,329

 

 

 

5,343

 

Total Proterra, Inc.

 

 

 

 

 

 

$

30,446

 

 

 

31,910

 

 

 

32,066

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

95,954

 

 

 

96,178

 

Subtotal: Sustainable and Renewable Technology (10.70%)*

 

 

 

 

 

 

 

 

 

 

 

 

107,180

 

 

 

107,404

 

Total: Debt Investments (159.66%)*

 

 

 

 

 

 

 

 

 

 

 

$

1,608,014

 

 

$

1,603,275

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2018

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(3)

 

 

Value(4)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc. (4)

 

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

$

102

 

 

$

19

 

Peerless Network Holdings, Inc.

 

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,135,000

 

 

 

1,229

 

 

 

6,395

 

Subtotal: Communications & Networking (0.64%)*

 

 

 

 

 

 

 

 

 

 

1,331

 

 

 

6,414

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

488

 

Subtotal: Diagnostic (0.05%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

488

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

 

Diversified Financial Services

 

Equity

 

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

1,874

 

 

 

 

Diversified Financial Services

 

Equity

 

Preferred Series A

 

 

10,602,752

 

 

 

26,122

 

 

 

25,976

 

Total Gibraltar Business Capital, LLC

 

 

 

 

 

 

11,432,752

 

 

 

28,006

 

 

 

27,850

 

Subtotal: Diversified Financial Services (2.77%)*

 

 

 

 

 

 

 

 

 

 

28,006

 

 

 

27,850

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)(10)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

209

 

BioQ Pharma Incorporated (15)

 

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

688

 

Edge Therapeutics, Inc. (4)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

49,965

 

 

 

309

 

 

 

41

 

Neos Therapeutics, Inc. (4)(15)

 

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

606

 

Subtotal: Drug Delivery (0.15%)*

 

 

 

 

 

 

 

 

 

 

2,417

 

 

 

1,544

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

1,901,791

 

 

 

1,715

 

 

 

6,774

 

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

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

129,827

 

 

 

1,269

 

 

 

314

 

Cerecor, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

556

 

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

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

13

 

Dicerna Pharmaceuticals, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

2,180

 

Dynavax Technologies (4)(10)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

248

 

Eidos Therapeutics, Inc. (4)(10)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

15,000

 

 

 

255

 

 

 

150

 

Genocea Biosciences, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

174

 

Insmed, Incorporated (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

1,284

 

Melinta Therapeutics (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

51,821

 

 

 

2,000

 

 

 

204

 

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

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

741

 

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

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

944

 

 

 

1,500

 

 

 

23

 

Tricida, Inc. (4)

 

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

105,260

 

 

 

2,000

 

 

 

3,217

 

Subtotal: Drug Discovery & Development (1.58%)*

 

 

 

 

 

 

 

 

 

 

18,033

 

 

 

15,878

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc. (4)

 

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

40

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

34

 

 

 

40

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DocuSign, Inc. (4)

 

 

Information Services

 

Equity

 

Common Stock

 

 

385,000

 

 

 

6,081

 

 

 

20,239

 

Subtotal: Information Services (2.02%)*

 

 

 

 

 

 

 

 

 

 

6,081

 

 

 

20,239

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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.

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

$

175

 

 

$

71

 

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

 

 

 

354

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

198,677

 

 

 

250

 

 

 

318

 

Total Lightspeed POS, Inc.

 

 

 

 

 

 

428,707

 

 

 

500

 

 

 

672

 

Nextdoor.com, Inc.

 

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

328,190

 

 

 

4,854

 

 

 

4,854

 

OfferUp, Inc.

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,916

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

728

 

Total OfferUp, Inc.

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

2,644

 

Oportun (p.k.a. Progress Financial)

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

294

 

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

243

 

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

 

 

 

 

 

 

306,153

 

 

 

500

 

 

 

537

 

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 (0.87%)*

 

 

 

 

 

 

 

 

 

 

9,332

 

 

 

8,778

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pinterest, Inc.

 

 

Media/Content/Info

 

Equity

 

Preferred Series Seed

 

 

620,000

 

 

 

4,085

 

 

 

4,815

 

Subtotal: Media/Content/Info (0.48%)*

 

 

 

 

 

 

 

 

 

 

4,085

 

 

 

4,815

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtriCure, Inc. (4)(15)

 

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

10,119

 

 

 

266

 

 

 

354

 

Flowonix Medical Incorporated

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

27

 

Gelesis, Inc.

 

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

744

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

793

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

756

 

Total Gelesis, Inc.

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,293

 

Medrobotics Corporation (15)

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

31

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

29

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

90

 

Total Medrobotics Corporation

 

 

 

 

 

 

374,703

 

 

 

905

 

 

 

150

 

Optiscan Biomedical, Corp. (6)

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

61,855

 

 

 

3,000

 

 

 

474

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

19,273

 

 

 

655

 

 

 

137

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

551,038

 

 

 

5,257

 

 

 

4,203

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

311,989

 

 

 

2,609

 

 

 

3,061

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

944,155

 

 

 

11,521

 

 

 

7,875

 

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

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

608

 

Quanterix Corporation (4)

 

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

84,778

 

 

 

1,000

 

 

 

1,817

 

Subtotal: Medical Devices & Equipment (1.31%)*

 

 

 

 

 

 

 

 

 

 

16,644

 

 

 

13,124

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapLinked, Inc.

 

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

91

 

Druva, Inc.

 

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,573

 

 

 

 

Software

 

Equity

 

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

367

 

Total Druva, Inc.

 

 

 

 

 

 

552,461

 

 

 

1,300

 

 

 

1,940

 

HighRoads, Inc.

 

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

NewVoiceMedia Limited (5)(10)

 

 

Software

 

Equity

 

Preferred Series E

 

 

669,173

 

 

 

963

 

 

 

1,459

 

Palantir Technologies

 

 

Software

 

Equity

 

Preferred Series E

 

 

727,696

 

 

 

5,431

 

 

 

4,714

 

 

 

 

Software

 

Equity

 

Preferred Series G

 

 

326,797

 

 

 

2,211

 

 

 

2,117

 

Total Palantir Technologies

 

 

 

 

 

 

1,054,493

 

 

 

7,642

 

 

 

6,831

 

Sprinklr, Inc.

 

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

4,023

 

WildTangent, Inc.

 

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

181

 

Subtotal: Software (1.45%)*

 

 

 

 

 

 

 

 

 

 

14,414

 

 

 

14,525

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

79

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

123

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

912

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

684

 

Total Gynesonics, Inc.

 

 

 

 

 

 

5,653,360

 

 

 

1,673

 

 

 

1,798

 

Transmedics, Inc.

 

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

407

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

548

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

1,189

 

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

458

 

Total Transmedics, Inc.

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

2,602

 

Subtotal: Surgical Devices (0.44%)*

 

 

 

 

 

 

 

 

 

 

4,223

 

 

 

4,400

 

 

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

 

 

 

105

 

Proterra, Inc.

 

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series 5

 

 

99,280

 

 

 

500

 

 

 

494

 

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

 

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

288

 

 

 

61,502

 

 

 

8,704

 

Subtotal: Sustainable and Renewable Technology (0.93%)*

 

 

 

 

 

 

 

 

 

 

63,263

 

 

 

9,303

 

Total: Equity Investments (12.69%)*

 

 

 

 

 

 

 

 

 

$

168,613

 

 

$

127,398

 

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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.

 

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

$

323

 

 

$

558

 

Subtotal: Biotechnology Tools (0.06%)*

 

 

 

 

 

 

 

 

 

 

323

 

 

 

558

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

3,328

 

 

 

 

 

 

15

 

Spring Mobile Solutions, Inc.

 

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.00%)*

 

 

 

 

 

 

 

 

 

 

418

 

 

 

15

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

Intelligent Beauty, Inc.

 

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

224

 

The Neat Company

 

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

 

WHOOP, INC.

 

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

68,627

 

 

 

18

 

 

 

16

 

Subtotal: Consumer & Business Products (0.02%)*

 

 

 

 

 

 

 

 

 

 

841

 

 

 

240

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

786

 

 

 

222

 

Agile Therapeutics, Inc. (4)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

2

 

BioQ Pharma Incorporated

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

798

 

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

 

 

 

14

 

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

 

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

1,794

 

Neos Therapeutics, Inc. (4)(15)

 

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

9

 

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 (0.28%)*

 

 

 

 

 

 

 

 

 

 

3,670

 

 

 

2,839

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

201,330

 

 

$

304

 

 

$

379

 

ADMA Biologics, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

72

 

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

 

 

 

83

 

Cerecor, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

28

 

Chroma Therapeutics, Ltd. (5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Preferred Series D

 

 

325,261

 

 

 

490

 

 

 

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

132,069

 

 

 

545

 

 

 

442

 

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

 

 

 

6

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

17,190

 

 

 

369

 

 

 

 

Dicerna Pharmaceuticals, Inc. (4)

 

 

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

 

 

 

13

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

1

 

Genocea Biosciences, Inc. (4)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

403,136

 

 

 

431

 

 

 

143

 

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

 

 

 

190

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,710

 

 

 

460

 

 

 

1,085

 

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

 

 

94,841

 

 

 

204

 

 

 

79

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

32,467

 

 

 

203

 

 

 

121

 

Sorrento Therapeutics, Inc. (4)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

306,748

 

 

 

889

 

 

 

530

 

Stealth Bio Therapeutics Corp. (5)(10)

 

 

Drug Discovery & Development

 

Warrant

 

Preferred Series A

 

 

650,000

 

 

 

158

 

 

 

177

 

Tricida, Inc. (4)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

53,458

 

 

 

222

 

 

 

937

 

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

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

665

 

XOMA Corporation (4)(10)(15)

 

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,063

 

 

 

279

 

 

 

6

 

Subtotal: Drug Discovery & Development (0.49%)*

 

 

 

 

 

 

 

 

 

 

8,253

 

 

 

4,957

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 DEVICES INC. (15)

 

 

Electronics & Computer Hardware

 

Warrant

 

Preferred Series D

 

 

79,856

 

 

 

100

 

 

 

75

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

 

 

 

 

100

 

 

 

75

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (4)

 

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

174

 

Subtotal: Healthcare Services, Other (0.02%)*

 

 

 

 

 

 

 

 

 

 

157

 

 

 

174

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INMOBI Inc. (5)(10)

 

 

Information Services

 

Warrant

 

Common Stock

 

 

65,587

 

 

 

82

 

 

 

 

MDX Medical, Inc. (15)

 

 

Information Services

 

Warrant

 

Common Stock

 

 

2,812,500

 

 

 

283

 

 

 

275

 

Netbase Solutions, Inc.

 

 

Information Services

 

Warrant

 

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

407

 

RichRelevance, Inc.

 

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.07%)*

 

 

 

 

 

 

 

 

 

 

819

 

 

 

682

 

 

See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

14

 

Blurb, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

26

 

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

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series E

 

 

968,992

 

 

 

19

 

 

 

183

 

Cloudpay, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

4,960

 

 

 

45

 

 

 

37

 

Contentful, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

82,185

 

 

 

1

 

 

 

1

 

First Insight, Inc. (15)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

45,551

 

 

 

56

 

 

 

53

 

Intent Media, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

246

 

Interactions Corporation

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G-3

 

 

68,187

 

 

 

204

 

 

 

420

 

Just Fabulous, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,101

 

 

 

3,070

 

Lightspeed POS, Inc. (5)(10)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

245,610

 

 

 

20

 

 

 

166

 

LogicSource

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

40

 

Oportun (p.k.a. Progress Financial)

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

61

 

Postmates, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

189,865

 

 

 

317

 

 

 

381

 

RumbleON, Inc. (4)

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

81,818

 

 

 

72

 

 

 

350

 

ShareThis, Inc.

 

 

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

 

 

 

69

 

 

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

173,076

 

 

 

8

 

 

 

4

 

TotalSnagajob.com, Inc.

 

 

 

 

 

 

1,973,076

 

 

 

790

 

 

 

73

 

Tapjoy, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

35

 

The Faction Group LLC

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

8,703

 

 

 

234

 

 

 

431

 

Thumbtack, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

102,821

 

 

 

124

 

 

 

133

 

Xometry, Inc.

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

87,784

 

 

 

47

 

 

 

141

 

Subtotal: Internet Consumer & Business Services (0.58%)*

 

 

 

 

 

 

 

 

 

 

4,944

 

 

 

5,861

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

1,552,710

 

 

 

1,960

 

 

 

2,402

 

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

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

383

 

 

 

87

 

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

 

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

255,818

 

 

 

4

 

 

 

12

 

Zoom Media Group, Inc.

 

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

29

 

Subtotal: Media/Content/Info (0.25%)*

 

 

 

 

 

 

 

 

 

 

2,695

 

 

 

2,530

 

 

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

 

 

 

449

 

Flowonix Medical Incorporated

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

1

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series BB

 

 

725,806

 

 

 

351

 

 

 

352

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

881,131

 

 

 

713

 

 

 

353

 

Gelesis, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

182

 

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

 

 

 

613

 

Medrobotics Corporation (15)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

38

 

Micell Technologies, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

205

 

NetBio, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

7,841

 

 

 

408

 

 

 

 

NinePoint Medical, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

155

 

Optiscan Biomedical, Corp. (6)

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

74,424

 

 

 

573

 

 

 

290

 

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

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

535

 

Quanterix Corporation (4)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

66,039

 

 

 

204

 

 

 

539

 

Sebacia, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

778,301

 

 

 

133

 

 

 

192

 

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

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Tela Bio, Inc.

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B

 

 

387,930

 

 

 

61

 

 

 

215

 

ViewRay, Inc. (4)(15)

 

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

419

 

Subtotal: Medical Devices & Equipment (0.42%)*

 

 

 

 

 

 

 

 

 

 

5,746

 

 

 

4,185

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

515

 

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

771

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

1,110,000

 

 

 

259

 

 

 

1,286

 

Aquantia Corp. (4)

 

 

Semiconductors

 

Warrant

 

Common Stock

 

 

19,683

 

 

 

4

 

 

 

17

 

Subtotal: Semiconductors (0.13%)*

 

 

 

 

 

 

 

 

 

 

263

 

 

 

1,303

 

See notes to consolidated financial statements.

21


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

$

113

 

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

114

 

Total Actifio, Inc.

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

227

 

CareCloud Corporation (15)

 

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

23

 

Clickfox, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series B

 

 

539,818

 

 

 

167

 

 

 

19

 

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

30

 

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

231

 

 

 

314

 

Total Clickfox, Inc.

 

 

 

 

 

 

3,350,051

 

 

 

1,128

 

 

 

363

 

DNAnexus, Inc.

 

 

Software

 

Warrant

 

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

84

 

Evernote Corporation

 

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

200

 

Fuze, Inc. (15)(16)

 

 

Software

 

Warrant

 

Preferred Series F

 

 

256,158

 

 

 

89

 

 

 

 

Lightbend, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C-1

 

 

391,778

 

 

 

79

 

 

 

71

 

Message Systems, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

334

 

 

 

502

 

Neos, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

 

NewVoiceMedia Limited (5)(10)

 

 

Software

 

Warrant

 

Preferred Series E

 

 

225,586

 

 

 

33

 

 

 

225

 

OneLogin, Inc. (15)

 

 

Software

 

Warrant

 

Common Stock

 

 

381,620

 

 

 

305

 

 

 

386

 

Poplicus, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

132,168

 

 

 

 

 

 

 

Quid, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

5

 

RapidMiner, Inc.

 

 

Software

 

Warrant

 

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

27

 

RedSeal Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series C-Prime

 

 

640,603

 

 

 

66

 

 

 

39

 

Signpost, Inc.

 

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

157

 

ThreatConnect, Inc. (15)

 

 

Software

 

Warrant

 

Preferred Series B

 

 

134,086

 

 

 

26

 

 

 

30

 

Wrike, Inc.

 

 

Software

 

Warrant

 

Common Stock

 

 

698,760

 

 

 

461

 

 

 

2,162

 

Subtotal: Software (0.45%)*

 

 

 

 

 

 

 

 

 

 

3,935

 

 

 

4,501

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (4)

 

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

1,717,709

 

 

 

861

 

 

 

103

 

Subtotal: Specialty Pharmaceuticals (0.01%)*

 

 

 

 

 

 

 

 

 

 

861

 

 

 

103

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

74

 

 

 

30

 

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

321

 

 

 

411

 

Total Gynesonics, Inc.

 

 

 

 

 

 

1,756,445

 

 

 

395

 

 

 

441

 

Transmedics, Inc.

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

363

 

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

50,544

 

 

 

38

 

 

 

 

Total Transmedics, Inc.

 

 

 

 

 

 

225,544

 

 

 

138

 

 

 

363

 

Subtotal: Surgical Devices (0.08%)*

 

 

 

 

 

 

 

 

 

 

533

 

 

 

804

 

 

See notes to consolidated financial statements.

22


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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.

 

 

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.

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

512

 

 

 

 

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

 

 

 

434

 

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

 

 

 

97

 

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

29

 

Total Kinestral Technologies, Inc.

 

 

 

 

 

 

456,883

 

 

 

218

 

 

 

126

 

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

 

 

 

378

 

Rive Technology, Inc. (15)

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

13

 

 

 

12

 

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

 

 

Sustainable and Renewable Technology

 

Warrant

 

Class A Units

 

 

0.69

 

 

 

 

 

 

 

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 (0.10%)*

 

 

 

 

 

 

 

 

 

 

2,924

 

 

 

1,016

 

Total: Warrant Investments (2.97%)*

 

 

 

 

 

 

 

 

 

 

36,482

 

 

 

29,843

 

Total Investments in Securities (175.32%)*

 

 

 

 

 

 

 

 

 

$

1,813,109

 

 

$

1,760,516

 

 

*

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 5.25% at September 30, 2018. Daily LIBOR, 1-month LIBOR, 3-month LIBOR and 12-month LIBOR represent 2.17%, 2.26%, 2.40% and

2.92%, respectively, at September 30, 2018.

(3)

Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $42.0 million, $102.4 million and $60.4 million respectively. The tax cost of investments is $1.8 billion.

(4)

Except for warrants in 39 publicly traded companies and common stock in 21 publicly traded companies, all investments are restricted at September 30, 2018 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Board of Directors. No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(5)

Non-U.S. company or the company’s principal place of business is outside the United States.

(6)

Affiliate investment as defined under the Investment Company Act of 1940, as amended, (the “1940 Act”) in which Hercules owns at least 5% but generally less than 25% of the company’s voting securities.

(7)

Control investment as defined under the 1940 Act in which Hercules owns at least 25% of the company’s voting securities or has greater than 50% representation on its board.

(8)

Debt is on non-accrual status at September 30, 2018, and is therefore considered non-income producing. Note that at September 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 III, L.P., or HT III, the Company’s wholly owned small business investment company, or SBIC, subsidiary. On July 13, 2018, the Company completed repayment of the remaining outstanding Hercules Technology II, L.P., or HT II, debentures and subsequently surrendered the SBA license with respect to HT II.

(16)

Denotes that the fair value of the Company’s total investments in this portfolio company represent greater than 5% of the Company’s total assets at September 30, 2018.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at September 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%)*

 

 

 

 

 

 

 

 

 

 

 

 

21,361

 

 

 

19,571