UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2019

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

 

74-3113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

Identification Number)

 

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  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, par value $0.001 per share

HTGC

New York Stock Exchange

5.25% Notes due 2025

HCXZ

New York Stock Exchange

6.25% Notes due 2033

HCXY

New York Stock Exchange

On April 29, 2019, there were 97,208,899 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statement of Assets and Liabilities as of March 31, 2019 and December 31, 2018 (unaudited)

  

3

 

 

 

Consolidated Statement of Operations for the three months ended March 31, 2019 and 2018 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the three months ended March 31, 2019 and 2018 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the three months ended March 31, 2019 and 2018 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of March 31, 2019 (unaudited)

  

9

 

 

 

Consolidated Schedule of Investments as of December 31, 2018 (unaudited)

  

24

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

40

Item 2.

 

 

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

  

74

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

92

Item 4.

 

 

Controls and Procedures

  

93

 

PART II. OTHER INFORMATION

  

94

 

Item 1.

 

Legal Proceedings

  

94

Item 1A.

 

 

Risk Factors

 

94

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

96

Item 3.

 

 Defaults Upon Senior Securities

  

96

Item 4.

 

 

Mine Safety Disclosures

  

96

Item 5.

 

 

Other Information

  

96

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

97

 

SIGNATURES

  

100

 

 

 

 

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)

(in thousands, except per share data)

 

 

 

March 31, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $2,000,508 and $1,830,725, respectively)

 

$

2,003,062

 

 

$

1,801,258

 

Control investments (cost of $64,968 and $64,799, respectively)

 

 

54,913

 

 

 

57,619

 

Affiliate investments (cost of $87,787 and $85,000, respectively)

 

 

23,067

 

 

 

21,496

 

Total investments in securities, at value (cost of $2,153,263 and $1,980,524, respectively)

 

 

2,081,042

 

 

 

1,880,373

 

Cash and cash equivalents

 

 

16,465

 

 

 

34,212

 

Restricted cash

 

 

10,149

 

 

 

11,645

 

Interest receivable

 

 

18,366

 

 

 

16,959

 

Right of use asset (1)

 

 

8,856

 

 

 

 

Other assets

 

 

3,753

 

 

 

2,002

 

Total assets

 

$

2,138,631

 

 

$

1,945,191

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

18,256

 

 

$

25,961

 

Operating lease liability (1)

 

 

8,856

 

 

 

 

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

 

 

147,783

 

 

 

147,655

 

2022 Notes, net (principal of $150,000 and $150,000, respectively) (2)

 

 

148,121

 

 

 

147,990

 

2024 Notes, net (principal of $0 and $83,510, respectively) (2)

 

 

 

 

 

81,852

 

2025 Notes, net (principal of $75,000 and $75,000, respectively) (2)

 

 

72,685

 

 

 

72,590

 

2033 Notes, net (principal of $40,000 and $40,000, respectively) (2)

 

 

38,420

 

 

 

38,427

 

2027 Asset-Backed Notes, net (principal of $200,000 and $200,000, respectively) (2)

 

 

197,102

 

 

 

197,265

 

2028 Asset-Backed Notes, net (principal of $250,000 and $0, respectively) (2)

 

 

247,352

 

 

 

 

2022 Convertible Notes, net (principal of $230,000 and $230,000, respectively) (2)

 

 

225,441

 

 

 

225,051

 

Credit Facilities

 

 

44,266

 

 

 

52,956

 

Total liabilities

 

$

1,148,282

 

 

$

989,747

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

96

 

 

 

96

 

Capital in excess of par value

 

 

1,051,427

 

 

 

1,052,269

 

Total distributable earnings (loss) (3)

 

 

(61,174

)

 

 

(92,859

)

Treasury Stock, at cost, no shares as of March 31, 2019 and 376,466 shares as of December 31, 2018

 

 

 

 

 

(4,062

)

Total net assets

 

$

990,349

 

 

$

955,444

 

Total liabilities and net assets

 

$

2,138,631

 

 

$

1,945,191

 

 

 

 

 

 

 

 

 

 

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

 

 

96,543

 

 

 

96,501

 

Net asset value per share

 

$

10.26

 

 

$

9.90

 

 

(1)

See “Note 2 – Summary of Significant Accounting Policies” for a description of Right of use asset and Operating lease liability.

(2)

The Company’s SBA debentures, 2022 Notes, 2024 Notes, 2025 Notes, 2033 Notes, 2027 Asset-Backed Notes, 2028 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”.

(3)

Certain prior year numbers have been adjusted to conform with the SEC final rules on disclosure updates and simplification effective November 5, 2018. See Note 2.

 

See notes to consolidated financial statements.

3


 

The following table presents the assets and liabilities of our consolidated securitization trusts for the 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes (see Note 4), which are variable interest entities, or VIEs. The assets of our securitization VIEs can only be used to settle obligations of our consolidated securitization VIEs, these liabilities are only the obligations of our consolidated securitization VIEs, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statement of Assets and Liabilities above.

 

(Dollars in thousands)

 

March 31, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

10,149

 

 

$

11,645

 

2027 Asset-Backed Notes, investments in securities, at value (cost of $290,242 and $279,373, respectively)

 

 

289,556

 

 

 

277,781

 

2028 Asset-Backed Notes, investments in securities, at value (cost of $356,677 and $0, respectively)

 

 

357,416

 

 

 

 

Total assets

 

$

657,121

 

 

$

289,426

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2027 Asset-Backed Notes, net (principal of $200,000 and $200,000, respectively) (1)

 

$

197,102

 

 

$

197,265

 

2028 Asset-Backed Notes, net (principal of $250,000 and $0, respectively) (1)

 

 

247,352

 

 

 

 

Total liabilities

 

$

444,454

 

 

$

197,265

 

 

(1)

The Company’s 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 4 – Borrowings”.

See notes to consolidated financial statements.

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(in thousands, except per share data)  

 

 

Three Months Ended March 31,

 

 

2019

 

 

2018

 

Investment income:

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

$

53,941

 

 

$

41,834

 

Control investments

 

1,024

 

 

 

586

 

Affiliate investments

 

508

 

 

 

561

 

Total interest income

 

55,473

 

 

 

42,981

 

Fee income

 

 

 

 

 

 

 

Commitment, facility and loan fee income:

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

2,450

 

 

 

2,440

 

Control investments

 

4

 

 

 

 

Affiliate investments

 

88

 

 

 

108

 

Total commitment, facility and loan fee income

 

2,542

 

 

 

2,548

 

One-time fee income:

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

780

 

 

 

3,171

 

Total one-time fee income

 

780

 

 

 

3,171

 

Total fee income

 

3,322

 

 

 

5,719

 

Total investment income

 

58,795

 

 

 

48,700

 

Operating expenses:

 

 

 

 

 

 

 

Interest

 

12,555

 

 

 

9,386

 

Loan fees

 

3,009

 

 

 

1,175

 

General and administrative

 

4,153

 

 

 

4,009

 

Employee compensation:

 

 

 

 

 

 

 

Compensation and benefits

 

6,623

 

 

 

5,758

 

Stock-based compensation

 

3,422

 

 

 

2,309

 

Total employee compensation

 

10,045

 

 

 

8,067

 

Total operating expenses

 

29,762

 

 

 

22,637

 

Net investment income

 

29,033

 

 

 

26,063

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

4,555

 

 

 

(3,512

)

Control investments

 

 

 

 

(1,408

)

Total net realized gain (loss) on investments

 

4,555

 

 

 

(4,920

)

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

32,091

 

 

 

(14,340

)

Control investments

 

(2,875

)

 

 

(620

)

Affiliate investments

 

(1,219

)

 

 

(237

)

Total net unrealized appreciation (depreciation) on investments

 

27,997

 

 

 

(15,197

)

Total net realized and unrealized gain (loss)

 

32,552

 

 

 

(20,117

)

Net increase (decrease) in net assets resulting from operations

$

61,585

 

 

$

5,946

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

0.31

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

Basic

$

0.64

 

 

$

0.07

 

Diluted

$

0.64

 

 

$

0.07

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

96,218

 

 

 

84,596

 

Diluted

 

96,508

 

 

 

84,666

 

Distributions paid per common share:

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

See notes to consolidated financial statements.

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Treasury

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)(2)

 

 

Stock

 

 

Assets

 

Balance at December 31, 2017

 

84,424

 

 

$

85

 

 

$

908,501

 

 

$

(67,619

)

 

$

 

 

$

840,967

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

5,946

 

 

 

 

 

 

5,946

 

Public offering, net of offering expenses

 

478

 

 

 

 

 

 

5,952

 

 

 

 

 

 

 

 

 

5,952

 

Issuance of common stock due to stock option exercises

 

38

 

 

 

 

 

 

432

 

 

 

 

 

 

 

 

 

432

 

Retired shares from net issuance

 

(36

)

 

 

 

 

 

(446

)

 

 

 

 

 

 

 

 

(446

)

Issuance of common stock under restricted stock plan

 

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(36

)

 

 

 

 

 

(446

)

 

 

 

 

 

 

 

 

(446

)

Distributions reinvested in common stock

 

35

 

 

 

 

 

 

426

 

 

 

 

 

 

 

 

 

426

 

Distributions

 

 

 

 

 

 

 

 

 

 

(26,419

)

 

 

 

 

 

(26,419

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,319

 

 

 

 

 

 

 

 

 

2,319

 

Balance at March 31, 2018

 

85,239

 

 

$

85

 

 

$

916,738

 

 

$

(88,092

)

 

$

 

 

$

828,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

96,501

 

 

$

96

 

 

$

1,052,269

 

 

$

(92,859

)

 

$

(4,062

)

 

$

955,444

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

61,585

 

 

 

 

 

 

61,585

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

(21

)

 

 

 

 

 

 

 

 

(21

)

Issuance of common stock due to stock option exercises

 

13

 

 

 

 

 

 

154

 

 

 

 

 

 

 

 

 

154

 

Retired shares from net issuance

 

(11

)

 

 

 

 

 

(159

)

 

 

 

 

 

 

 

 

(159

)

Issuance of common stock under restricted stock plan

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement of common stock under repurchase plan

 

 

 

 

 

 

 

(4,062

)

 

 

 

 

 

4,062

 

 

 

 

Retired shares for restricted stock vesting

 

(55

)

 

 

 

 

 

(691

)

 

 

 

 

 

 

 

 

(691

)

Distributions reinvested in common stock

 

47

 

 

 

 

 

 

632

 

 

 

 

 

 

 

 

 

632

 

Distributions

 

 

 

 

 

 

 

 

 

 

(29,900

)

 

 

 

 

 

(29,900

)

Stock-based compensation (1)

 

 

 

 

 

 

 

3,305

 

 

 

 

 

 

 

 

 

3,305

 

Balance at March 31, 2019

 

96,543

 

 

$

96

 

 

$

1,051,427

 

 

$

(61,174

)

 

$

 

 

$

990,349

 

 

(1)

Stock-based compensation includes $7 and $10 of restricted stock and option expense related to director compensation for the three months ended March 31, 2019 and 2018, respectively.

(2)

Certain prior year numbers have been adjusted to conform with the SEC final rules on disclosure updates and simplification effective November 5, 2018. See Note 2.

 

See notes to consolidated financial statements.

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Three Months Ended March 31,

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

61,585

 

 

$

5,946

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

Purchase of investments

 

(239,702

)

 

 

(236,285

)

Principal and fee payments received on investments

 

65,845

 

 

 

280,181

 

Proceeds from the sale of investments

 

9,830

 

 

 

1,582

 

Net unrealized depreciation (appreciation) on investments

 

(27,997

)

 

 

15,197

 

Net realized loss (gain) on investments

 

(4,555

)

 

 

4,920

 

Accretion of paid-in-kind principal

 

(2,099

)

 

 

(2,507

)

Accretion of loan discounts

 

(737

)

 

 

(763

)

Accretion of loan discount on convertible notes

 

168

 

 

 

168

 

Accretion of loan exit fees

 

(5,199

)

 

 

(4,407

)

Change in deferred loan origination revenue

 

3,754

 

 

 

631

 

Unearned fees related to unfunded commitments

 

992

 

 

 

321

 

Amortization of debt fees and issuance costs

 

2,653

 

 

 

840

 

Depreciation

 

51

 

 

 

46

 

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

 

3,305

 

 

 

2,319

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(1,407

)

 

 

1,175

 

Prepaid expenses and other assets

 

(9,272

)

 

 

1,870

 

Accounts payable

 

(198

)

 

 

(194

)

Accrued liabilities

 

1,417

 

 

 

(8,025

)

Net cash provided by (used in) operating activities

 

(141,566

)

 

 

63,015

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(83

)

 

 

(72

)

Net cash provided by (used in) investing activities

 

(83

)

 

 

(72

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

(43

)

 

 

5,952

 

Retirement of employee shares

 

(676

)

 

 

(460

)

Distributions paid

 

(29,268

)

 

 

(25,993

)

Issuance of 2028 Asset-Backed Notes

 

250,000

 

 

 

 

Repayments of 2024 Notes

 

(83,510

)

 

 

 

Repayments of 2021 Asset-Backed Notes

 

 

 

 

(15,577

)

Borrowings of credit facilities

 

110,834

 

 

 

 

Repayments of credit facilities

 

(119,523

)

 

 

 

Cash paid for debt issuance costs

 

(2,965

)

 

 

 

Fees paid for credit facilities and debentures

 

(2,443

)

 

 

 

Net cash provided by (used in) financing activities

 

122,406

 

 

 

(36,078

)

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

 

(19,243

)

 

 

26,865

 

Cash, cash equivalents and restricted cash at beginning of period

 

45,857

 

 

 

94,995

 

Cash, cash equivalents and restricted cash at end of period

$

26,614

 

 

$

121,860

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Distributions reinvested

 

632

 

 

 

426

 

 

(1)

Stock-based compensation includes $7 and $10 of restricted stock and option expense related to director compensation for the three months ended March 31, 2019 and 2018, 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 Three Months Ended March 31,

 

(Dollars in thousands)

2019

 

 

2018

 

Cash and cash equivalents

$

16,465

 

 

$

118,228

 

Restricted cash

 

10,149

 

 

 

3,632

 

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

$

26,614

 

 

$

121,860

 

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

See notes to consolidated financial statements.

8


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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. (11)

 

Biotechnology Tools

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 6.45% or Floor rate of 9.95%, 5.52% Exit Fee

 

$

4,999

 

 

$

5,146

 

 

$

5,146

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

5,146

 

 

 

5,146

 

Subtotal: Biotechnology Tools (0.52%)*

 

 

 

 

 

5,146

 

 

 

5,146

 

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

 

 

 

6,083

 

 

 

6,097

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,083

 

 

 

6,097

 

Subtotal: Consumer & Business Products (0.62%)*

 

 

 

 

 

 

6,083

 

 

 

6,097

 

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

 

 

 

14,741

 

 

 

14,903

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,741

 

 

 

14,903

 

Subtotal: Diversified Financial Services (1.50%)*

 

 

 

 

 

14,741

 

 

 

14,903

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year 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

 

$

8,872

 

 

 

9,982

 

 

 

9,982

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

9,982

 

 

 

9,982

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antares Pharma Inc. (10)(11)(15)

 

Drug Delivery

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.50%, 4.25% Exit Fee

 

$

25,000

 

 

 

25,393

 

 

 

25,390

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,393

 

 

 

25,390

 

Subtotal: Drug Delivery (3.57%)*

 

 

 

 

 

 

35,375

 

 

 

35,372

 

 

 

See notes to consolidated financial statements.

9


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70% or Floor rate of 9.20%, 7.82% Exit Fee

 

$

4,013

 

 

$

4,536

 

 

$

3,195

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,536

 

 

 

3,195

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee

 

$

10,000

 

 

 

9,929

 

 

 

9,938

 

Aveo Pharmaceuticals, Inc. (11)

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 5.40% Exit Fee

 

$

10,000

 

 

 

10,164

 

 

 

10,135

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 3.00% Exit Fee

 

$

10,000

 

 

 

10,289

 

 

 

10,279

 

Total Aveo Pharmaceuticals, Inc.

 

$

20,000

 

 

 

20,453

 

 

 

20,414

 

Axovant Gene Therapies Ltd. (p.k.a. Axovant Sciences Ltd.) (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80% or Floor rate of 10.55%

 

$

45,293

 

 

 

44,700

 

 

 

44,627

 

BridgeBio Pharma LLC (13)(16)

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.35% or Floor rate of 9.35%, 6.35% Exit Fee

 

$

35,000

 

 

 

35,220

 

 

 

35,704

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 3.35% or Floor rate of 9.10%, 5.75% Exit Fee

 

$

20,000

 

 

 

19,999

 

 

 

19,999

 

Total BridgeBio Pharma LLC

 

 

 

 

 

 

 

 

 

$

55,000

 

 

 

55,219

 

 

 

55,703

 

Chemocentryx, Inc. (10)(15)

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee

 

$

20,000

 

 

 

20,054

 

 

 

20,379

 

Constellation Pharmaceuticals, Inc. (17)

 

Drug Discovery & Development

 

Senior Secured

 

April 2023

 

Interest rate PRIME + 2.55% or Floor rate of 8.55%, 6.35% Exit Fee

 

$

20,000

 

 

 

19,847

 

 

 

19,847

 

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

 

 

 

14,235

 

 

 

14,189

 

Merrimack Pharmaceuticals, Inc. (11)

 

Drug Discovery & Development

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 4.00% or Floor rate of 9.25%, 5.55% Exit Fee

 

$

15,000

 

 

 

15,122

 

 

 

15,073

 

Mesoblast (5)(10)(11)(16)

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 4.95% or Floor rate of 9.45%, 6.95% Exit Fee

 

$

50,000

 

 

 

50,385

 

 

 

50,204

 

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

 

$

17,187

 

 

 

17,948

 

 

 

17,885

 

Motif BioSciences Inc. (5)(10)(11)(15)

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.50% or Floor rate of 10.00%, 2.15% Exit Fee

 

$

7,599

 

 

 

7,713

 

 

 

7,562

 

Myovant Sciences, Ltd. (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.00% or Floor rate of 8.25%, 6.55% Exit Fee

 

$

40,000

 

 

 

40,592

 

 

 

40,453

 

Nabriva Therapeutics (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 4.30% or Floor rate of 9.80%, 6.95% Exit Fee

 

$

25,000

 

 

 

24,886

 

 

 

24,886

 

Paratek Pharmaceuticals, Inc. (10)(11)(15)(16)

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee

 

$

40,000

 

 

 

41,011

 

 

 

40,905

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,280

 

 

 

10,243

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 2.25% Exit Fee

 

$

10,000

 

 

 

10,104

 

 

 

10,042

 

 

 

Drug Discovery & Development

 

Senior Secured

 

August 2022

 

Interest rate PRIME + 2.10% or Floor rate of 7.85%, 6.95% Exit Fee

 

$

10,000

 

 

 

10,070

 

 

 

9,975

 

Total Paratek Pharmaceuticals, Inc.

 

$

70,000

 

 

 

71,465

 

 

 

71,165

 

Stealth Bio Therapeutics Corp. (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 6.68% Exit Fee

 

$

17,220

 

 

 

17,746

 

 

 

17,783

 

TG Therapeutics, Inc. (10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 5.50% or Floor rate of 10.25%, 3.25% Exit Fee

 

$

30,000

 

 

 

29,148

 

 

 

29,148

 

Tricida, Inc. (11)(15)(17)

 

Drug Discovery & Development

 

Senior Secured

 

April 2023

 

Interest rate PRIME + 2.35% or Floor rate of 8.35%, 14.10% Exit Fee

 

$

40,000

 

 

 

39,564

 

 

 

39,558

 

uniQure B.V. (5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 7.72% Exit Fee

 

$

35,000

 

 

 

35,677

 

 

 

35,486

 

Urovant Sciences, Ltd. (10)(13)(17)

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 4.65% or Floor rate of 10.15%, 4.25% Exit Fee

 

$

15,000

 

 

 

14,743

 

 

 

14,743

 

Verastem, Inc. (11)

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,092

 

 

 

5,121

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,105

 

 

 

5,125

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,084

 

 

 

5,103

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,100

 

 

 

10,088

 

Total Verastem, Inc.

 

 

 

 

 

 

 

 

 

$

25,000

 

 

 

25,381

 

 

 

25,437

 

X4 Pharmaceuticals, Inc. (11)

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.25% or Floor rate of 9.50%, 7.95% Exit Fee

 

$

10,000

 

 

 

9,828

 

 

 

9,828

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

584,635

 

 

 

584,308

 

Subtotal: Drug Discovery & Development (59.32%)*

 

 

 

589,171

 

 

 

587,503

 

 

 

See notes to consolidated financial statements.

10


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

10,211

 

 

$

10,270

 

Glo AB (5)(10)(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

 

$

11,389

 

 

 

11,518

 

 

 

6,547

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,729

 

 

 

16,817

 

Subtotal: Electronics & Computer Hardware (1.70%)*

 

 

 

21,729

 

 

 

16,817

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oak Street Health (11)

 

Healthcare Services, Other

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.75%, 5.95% Exit Fee

 

$

30,000

 

 

 

30,656

 

 

 

30,689

 

PH Group Holdings (13)

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45% or Floor rate of 10.95%

 

$

20,000

 

 

 

19,916

 

 

 

19,904

 

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45% or Floor rate of 10.95%

 

$

10,000

 

 

 

9,952

 

 

 

9,946

 

Total PH Group Holdings

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

29,868

 

 

 

29,850

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60,524

 

 

 

60,539

 

Subtotal: Healthcare Services, Other (6.11%)*

 

 

 

60,524

 

 

 

60,539

 

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%

 

$

15,353

 

 

 

15,152

 

 

 

15,187

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,152

 

 

 

15,187

 

Subtotal: Information Services (1.53%)*

 

 

 

15,152

 

 

 

15,187

 

 

 

See notes to consolidated financial statements.

11


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LogicSource (12)

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25% or Floor rate of 9.75%, 5.00% Exit Fee

 

$

2,201

 

 

$

2,607

 

 

$

2,607

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,607

 

 

 

2,607

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AppDirect, Inc. (11)(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

 

 

 

20,081

 

 

 

20,188

 

Arctic Wolf Networks, Inc. (17)(19)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2023

 

Interest rate 3-month LIBOR + 7.75% or Floor rate of 10.10%, 7.55% Exit Fee

 

$

20,000

 

 

 

19,791

 

 

 

19,791

 

Cloudpay, Inc. (5)(10)(11)

 

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

 

 

 

11,085

 

 

 

11,182

 

Contentful, Inc. (5)(10)(11)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 2.95% or Floor rate of 7.95%, PIK Interest 1.25%, 3.55% Exit Fee

 

$

3,758

 

 

 

3,713

 

 

 

3,713

 

Convercent, Inc. (14)(15)(17)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 2.55% or Floor rate of 7.80%, PIK Interest 2.95%, 1.00% Exit Fee

 

$

7,547

 

 

 

7,479

 

 

 

7,479

 

EverFi, Inc. (11)(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%

 

$

61,079

 

 

 

61,040

 

 

 

61,662

 

Fastly, Inc. (11)(17)(19)

 

Internet Consumer & Business Services

 

Senior Secured

 

December 2021

 

Interest rate PRIME + 4.25%, 1.50% Exit Fee

 

$

6,667

 

 

 

6,578

 

 

 

6,578

 

First Insight, Inc. (15)

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 6.25% or Floor rate of 11.25%

 

$

10,000

 

 

 

9,828

 

 

 

9,882

 

Greenphire, Inc. (17)

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 8.00% or Floor rate of 9.00%

 

$

2,427

 

 

 

2,427

 

 

 

2,440

 

 

 

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.

 

 

 

 

 

 

 

 

 

$

3,927

 

 

 

3,927

 

 

 

3,940

 

Intent (p.k.a. Intent Media, Inc.) (12)(17)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.13% or Floor rate of 10.13%, 2.00% Exit Fee

 

$

12,200

 

 

 

12,229

 

 

 

12,255

 

Interactions Corporation (11)(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

 

 

 

25,114

 

 

 

25,281

 

Lendio, Inc. (17)(19)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2023

 

Interest rate PRIME + 4.45% or Floor rate of 9.95%, 5.25% Exit Fee

 

$

5,000

 

 

 

4,902

 

 

 

4,902

 

Postmates, Inc. (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

 

 

 

19,817

 

 

 

19,942

 

RumbleON, Inc. (11)

 

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

 

 

 

5,050

 

 

 

5,045

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2021

 

Interest rate PRIME + 5.75% or Floor rate of 10.25%, 2.95% Exit Fee

 

$

5,000

 

 

 

4,968

 

 

 

4,968

 

Total RumbleON, Inc.

 

 

 

 

 

 

 

 

 

$

10,000

 

 

 

10,018

 

 

 

10,013

 

Snagajob.com, Inc. (13)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

August 2020

 

Interest rate PRIME + 5.15% or Floor rate of 9.15%, PIK Interest 1.95%, 2.55% Exit Fee

 

$

42,045

 

 

 

42,290

 

 

 

42,419

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

August 2020

 

Interest rate PRIME + 5.65% or Floor rate of 10.65%, PIK Interest 1.95%, 2.55% Exit Fee

 

$

5,058

 

 

 

4,921

 

 

 

4,937

 

Total Snagajob.com, Inc.

 

 

 

 

 

 

 

 

 

$

47,103

 

 

 

47,211

 

 

 

47,356

 

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

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%, PIK Interest 3.00%

 

$

21,081

 

 

 

21,081

 

 

 

10,260

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

 

$

10,680

 

 

 

240

 

 

 

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

$

31,761

 

 

 

21,321

 

 

 

10,260

 

Thumbtack, Inc. (13)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2022

 

Interest rate PRIME + 3.45% or Floor rate of 7.95%, PIK Interest 1.50%, 2.95% Exit Fee

 

$

25,000

 

 

 

24,631

 

 

 

24,631

 

Wheels Up Partners LLC (11)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.55% or Floor rate of 9.55%

 

$

19,486

 

 

 

19,337

 

 

 

19,349

 

Xometry, Inc. (13)(17)(19)

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 3.95% or Floor rate of 8.45%, 7.09% Exit Fee

 

$

11,000

 

 

 

11,078

 

 

 

11,194

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

339,180

 

 

 

329,598

 

Subtotal: Internet Consumer & Business Services (33.54%)*

 

 

 

341,787

 

 

 

332,205

 

 

See notes to consolidated financial statements.

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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%, 3.12% Exit Fee

 

$

15,390

 

 

$

15,457

 

 

$

15,675

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,457

 

 

 

15,675

 

Subtotal: Media/Content/Info (1.58%)*

 

 

 

 

 

15,457

 

 

 

15,675

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Micell Technologies, Inc. (8)

 

Medical Devices & Equipment

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%, 5.00% Exit Fee

 

$

1,762

 

 

 

2,174

 

 

 

496

 

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

 

 

 

7,678

 

 

 

7,678

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

9,852

 

 

 

8,174

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flowonix Medical Incorporated (11)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

October 2021

 

Interest rate PRIME + 4.00% or Floor rate of 9.00%, PIK Interest 0.5%, 7.95% Exit Fee

 

$

15,024

 

 

 

14,875

 

 

 

14,929

 

Intuity Medical, Inc. (11)(15)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.25%, 5.95% Exit Fee

 

$

17,500

 

 

 

17,680

 

 

 

17,675

 

Quanta Fluid Solutions (5)(10)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 8.05% or Floor rate of 11.55%, 5.00% Exit Fee

 

$

4,722

 

 

 

5,274

 

 

 

5,393

 

Rapid Micro Biosystems, Inc. (11)(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

 

 

 

18,253

 

 

 

18,290

 

Sebacia, Inc. (11)(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

 

 

 

11,242

 

 

 

11,197

 

Transenterix, Inc. (10)(11)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2022

 

Interest rate PRIME + 4.55% or Floor rate of 9.55%, 6.95% Exit Fee

 

$

30,000

 

 

 

30,138

 

 

 

29,972

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

97,462

 

 

 

97,456

 

Subtotal: Medical Devices & Equipment (10.67%)*

 

 

 

 

 

107,314

 

 

 

105,630

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elenion Technologies LLC (13)(14)

 

Semiconductors

 

Senior Secured

 

February 2022

 

Interest rate PRIME + 4.25% or Floor rate of 9.75%, PIK Interest 2.25%, 5.00% Exit Fee

 

$

10,013

 

 

 

9,927

 

 

 

9,927

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,927

 

 

 

9,927

 

Subtotal: Semiconductors (1.00%)*

 

 

 

 

 

9,927

 

 

 

9,927

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signpost, Inc. (11)(14)

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.15% or Floor rate of 8.15%, PIK Interest 1.75%, 5.75% Exit Fee

 

$

15,856

 

 

 

16,477

 

 

 

16,477

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

16,477

 

 

 

16,477

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abrigo (18)

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.88% or Floor rate of 7.88%

 

$

39,601

 

 

$

38,813

 

 

$

38,744

 

Businessolver.com, Inc. (11)(16)(17)

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50% or Floor rate of 7.50%

 

$

53,933

 

 

 

53,011

 

 

 

53,407

 

 

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50% or Floor rate of 7.50%

 

$

1,275

 

 

 

1,275

 

 

 

1,275

 

Total Businessolver.com, Inc.

 

 

 

 

 

 

 

 

 

$

55,208

 

 

 

54,286

 

 

 

54,682

 

Clarabridge, Inc. (12)(14)(17)

 

Software

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.80% or Floor rate of 8.55%, PIK Interest 2.25%

 

$

42,511

 

 

 

42,088

 

 

 

42,715

 

Cloudian, Inc. (11)

 

Software

 

Senior Secured

 

November 2022

 

Interest rate PRIME + 3.25% or Floor rate of 8.25%, 9.75% Exit Fee

 

$

15,000

 

 

 

14,933

 

 

 

14,933

 

Couchbase, Inc. (15)(19)

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.25% or Floor rate of 10.75%

 

$

35,000

 

 

 

34,812

 

 

 

34,699

 

Credible Behavioral Health, Inc. (11)(14)(17)

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 3.20% or Floor rate of 7.95%, PIK Interest 3.30%

 

$

7,636

 

 

 

7,565

 

 

 

7,662

 

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

 

$

10,095

 

 

 

10,195

 

 

 

10,346

 

 

 

Software

 

Senior Secured

 

March 2023

 

Interest rate PRIME + 4.05% or Floor rate of 8.55%, PIK Interest 1.10%, 4.95% Exit Fee

 

$

10,000

 

 

 

9,692

 

 

 

9,692

 

Total Dashlane, Inc.

 

 

 

 

 

 

 

 

 

$

20,095

 

 

 

19,887

 

 

 

20,038

 

DocuTAP, Inc. (11)(17)

 

Software

 

Senior Secured

 

October 2023

 

Interest rate 3-month LIBOR + 8.00% or Floor rate of 8.00%

 

$

14,000

 

 

 

13,625

 

 

 

13,625

 

Emma, Inc. (13)(17)(18)

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 8.39% or Floor rate of 8.39%

 

$

36,944

 

 

 

35,824

 

 

 

35,841

 

 

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 8.18% or Floor rate of 8.18%

 

$

6,000

 

 

 

5,837

 

 

 

5,837

 

Total Emma, Inc.

 

 

 

 

 

 

 

 

 

$

42,944

 

 

 

41,661

 

 

 

41,678

 

Evernote Corporation (11)(14)(15)(19)

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45% or Floor rate of 8.95%

 

$

5,549

 

 

 

5,400

 

 

 

5,395

 

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 1.25%

 

$

4,087

 

 

 

3,956

 

 

 

3,956

 

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 1.25%

 

$

5,029

 

 

 

4,936

 

 

 

5,065

 

Total Evernote Corporation

 

 

 

 

 

 

 

 

 

$

14,665

 

 

 

14,292

 

 

 

14,416

 

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

 

$

51,328

 

 

 

51,660

 

 

 

52,722

 

Imperva, Inc. (19)

 

Software

 

Senior Secured

 

January 2027

 

Interest rate 3-month LIBOR + 7.75% or Floor rate of 7.75%

 

$

20,000

 

 

 

19,791

 

 

 

19,791

 

Insurance Technologies Corporation (11)(17)(18)

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.82% or Floor rate of 8.75%

 

$

12,500

 

 

 

12,270

 

 

 

12,395

 

Lightbend, Inc. (14)(15)

 

Software

 

Senior Secured

 

February 2022

 

Interest rate PRIME + 4.25% or Floor rate of 8.50%, PIK Interest 2.00%

 

$

16,259

 

 

 

15,968

 

 

 

16,009

 

Lithium Technologies, Inc. (11)(16)(17)

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 1-month LIBOR + 8.00% or Floor rate of 9.00%

 

$

12,000

 

 

 

11,797

 

 

 

11,797

 

 

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 1-month LIBOR + 8.00% or Floor rate of 9.00%

 

$

43,000

 

 

 

42,062

 

 

 

42,062

 

Total Lithium Technologies, Inc.

 

$

55,000

 

 

 

53,859

 

 

 

53,859

 

Microsystems Holding Company, LLC (11)(19)

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.25% or Floor rate of 9.25%

 

$

12,000

 

 

 

11,863

 

 

 

11,983

 

Nuvolo Technologies Corporation (19)

 

Software

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 6.25% or Floor rate of 11.75%

 

$

10,000

 

 

 

9,812

 

 

 

9,812

 

Pollen, Inc. (15)

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 4.25% or Floor rate of 8.50%, 5.95% Exit Fee

 

$

7,000

 

 

 

7,268

 

 

 

7,203

 

Quid, Inc. (14)(15)

 

Software

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75% or Floor rate of 8.25%, PIK Interest 2.25%, 4.60% Exit Fee

 

$

8,542

 

 

 

8,715

 

 

 

8,702

 

 

 

See notes to consolidated financial statements.

14


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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)

 

Regent Education (14)

 

Software

 

Senior Secured

 

January 2022

 

Interest rate FIXED 10.00%, PIK Interest 2.00%, 7.94% Exit Fee

 

$

3,107

 

 

$

3,139

 

 

$

1,585

 

Salsa Labs, Inc. (11)(17)

 

Software

 

Senior Secured

 

April 2023

 

Interest rate 3-month LIBOR + 8.15% or Floor rate of 9.15%

 

$

6,000

 

 

 

5,899

 

 

 

6,004

 

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

 

$

7,539

 

 

 

7,483

 

 

 

7,541

 

Vela Trading Technologies (11)(18)

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 9.50% or Floor rate of 10.50%

 

$

19,625

 

 

 

19,246

 

 

 

19,443

 

YouEarnedIt, Inc. (11)(18)

 

Software

 

Senior Secured

 

July 2023

 

Interest rate 1-month LIBOR + 8.66%

 

$

8,955

 

 

 

8,723

 

 

 

8,723

 

ZocDoc (11)(19)

 

Software

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 6.20% or Floor rate of 10.95%, 2.00% Exit Fee

 

$

30,000

 

 

 

30,053

 

 

 

30,213

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

547,711

 

 

 

549,177

 

Subtotal: Software (57.12%)*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

564,188

 

 

 

565,654

 

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

 

 

 

10,286

 

 

 

10,287

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

PIK Interest 10.00%

 

$

666

 

 

 

666

 

 

 

666

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 10.70% or Floor rate of 15.70%, PIK Interest 2.00%

 

$

1,609

 

 

 

1,609

 

 

 

1,609

 

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

 

 

 

 

 

 

 

 

 

$

12,275

 

 

 

12,561

 

 

 

12,562

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

12,561

 

 

 

12,562

 

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

 

 

 

13,310

 

 

 

13,304

 

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 5.40% or Floor rate of 9.90%, 14.27% Exit Fee

 

$

11,909

 

 

 

11,692

 

 

 

11,688

 

Total FuelCell Energy, Inc.

 

 

 

 

 

 

 

 

 

$

25,000

 

 

 

25,002

 

 

 

24,992

 

Impossible Foods, Inc. (12)(16)

 

Sustainable and Renewable Technology

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 3.95% or Floor rate of 8.95%, 9.00% Exit Fee

 

$

50,000

 

 

 

50,102

 

 

 

49,875

 

Metalysis Limited (5)(10)(11)

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.25%, 6.95% Exit Fee

 

$

6,498

 

 

 

6,718

 

 

 

6,324

 

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

 

$

25,596

 

 

 

26,968

 

 

 

27,198

 

 

 

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

 

$

5,119

 

 

 

5,433

 

 

 

5,458

 

Total Proterra, Inc.

 

 

 

 

 

 

 

 

 

$

30,715

 

 

 

32,401

 

 

 

32,656

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

114,223

 

 

 

113,847

 

Subtotal: Sustainable and Renewable Technology (12.76%)*

 

 

 

 

 

 

126,784

 

 

 

126,409

 

Total: Debt Investments (191.56%)*

 

 

 

 

 

 

1,913,378

 

 

 

1,897,064

 

 

See notes to consolidated financial statements.

15


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

16

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,135,000

 

 

 

1,229

 

 

 

4,609

 

Subtotal: Communications & Networking (0.47%)*

 

 

 

1,331

 

 

 

4,625

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

533

 

Subtotal: Diagnostic (0.05%)*

 

 

 

 

 

 

 

 

 

 

 

 

750

 

 

 

533

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

Diversified Financial Services

 

Equity

 

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

2,002

 

 

 

Diversified Financial Services

 

Equity

 

Preferred Series A

 

 

10,602,752

 

 

 

26,122

 

 

 

27,748

 

Total Gibraltar Business Capital, LLC

 

 

 

 

 

 

 

 

11,432,752

 

 

 

28,006

 

 

 

29,750

 

Subtotal: Diversified Financial Services (3.00%)*

 

 

 

 

 

28,006

 

 

 

29,750

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

176,730

 

 

 

1,329

 

 

 

557

 

BioQ Pharma Incorporated (15)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

740

 

Neos Therapeutics, Inc. (4)(15)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

326

 

PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

2,498

 

 

 

309

 

 

 

18

 

Subtotal: Drug Delivery (0.17%)*

 

 

 

 

 

 

 

 

 

 

 

 

3,638

 

 

 

1,641

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc. (4)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

1,901,791

 

 

 

1,715

 

 

 

1,559

 

Axovant Gene Therapies Ltd. (p.k.a. Axovant Sciences Ltd.) (4)(5)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

129,827

 

 

 

1,269

 

 

 

173

 

BridgeBio Pharma LLC (16)

 

Drug Discovery & Development

 

Equity

 

Preferred Series D

 

 

1,008,929

 

 

 

2,000

 

 

 

2,121

 

Cerecor, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

695

 

Concert Pharmaceuticals, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,796

 

 

 

1,367

 

 

 

695

 

Dare Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

19

 

Dicerna Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

2,094

 

Dynavax Technologies (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

146

 

Eidos Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

15,000

 

 

 

255

 

 

 

352

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

223,463

 

 

 

2,000

 

 

 

132

 

Insmed, Incorporated (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,771

 

 

 

1,000

 

 

 

1,930

 

Melinta Therapeutics (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

10,364

 

 

 

2,000

 

 

 

36

 

Paratek Pharmaceuticals, Inc. (4)(10)(16)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

410

 

Rocket Pharmaceuticals, Ltd. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

944

 

 

 

1,500

 

 

 

17

 

Tricida, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

105,260

 

 

 

2,000

 

 

 

4,065

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

37,175

 

 

 

718

 

 

 

1,845

 

Subtotal: Drug Discovery & Development (1.64%)*

 

 

 

 

 

 

22,118

 

 

 

16,289

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identiv, Inc. (4)

 

Electronics & Computer Hardware

 

Equity

 

Common Stock

 

 

6,700

 

 

 

34

 

 

 

34

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

34

 

 

 

34

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23andMe, Inc.

 

Healthcare Services, Other

 

Equity

 

Common Stock

 

 

360,000

 

 

 

5,094

 

 

 

5,094

 

Subtotal: Healthcare Services, Other (0.51%)*

 

 

 

 

 

 

5,094

 

 

 

5,094

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DocuSign, Inc. (4)

 

Information Services

 

Equity

 

Common Stock

 

 

385,000

 

 

 

6,081

 

 

 

17,942

 

Subtotal: Information Services (1.81%)*

 

 

 

 

 

 

6,081

 

 

 

17,942

 

 

See notes to consolidated financial statements.

16


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

46

 

Brigade Group, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

9,023

 

 

 

93

 

 

 

 

Contentful, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

217

 

 

 

500

 

 

 

524

 

DoorDash, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

105,000

 

 

 

6,051

 

 

 

8,925

 

Lightspeed POS, Inc. (4)(5)(10)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

107,177

 

 

 

500

 

 

 

1,655

 

Lyft, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

200,738

 

 

 

10,487

 

 

 

15,715

 

Nextdoor.com, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

328,190

 

 

 

4,854

 

 

 

4,945

 

OfferUp, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,992

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

757

 

Total OfferUp, Inc.

 

 

394,790

 

 

 

2,295

 

 

 

2,749

 

Oportun

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

757

 

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series H

 

 

87,802

 

 

 

250

 

 

 

332

 

Total Oportun

 

 

306,153

 

 

 

500

 

 

 

1,089

 

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 (3.60%)*

 

 

 

 

 

 

26,355

 

 

 

35,648

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pinterest, Inc.

 

Media/Content/Info

 

Equity

 

Preferred Series Seed

 

 

206,666

 

 

 

4,085

 

 

 

3,307

 

Subtotal: Media/Content/Info (0.33%)*

 

 

 

 

 

 

4,085

 

 

 

3,307

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AtriCure, Inc. (4)(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

10,119

 

 

 

266

 

 

 

270

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

32

 

Gelesis, Inc.

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

198,202

 

 

 

 

 

 

871

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

936

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

886

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

581,038

 

 

 

925

 

 

 

2,693

 

Medrobotics Corporation (15)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series F

 

 

73,971

 

 

 

155

 

 

 

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series G

 

 

163,934

 

 

 

500

 

 

 

 

Total Medrobotics Corporation

 

 

374,703

 

 

 

905

 

 

 

 

Optiscan Biomedical, Corp. (6)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

61,855

 

 

 

3,000

 

 

 

427

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

19,273

 

 

 

655

 

 

 

123

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

551,038

 

 

 

5,257

 

 

 

3,628

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

507,103

 

 

 

4,240

 

 

 

4,265

 

Total Optiscan Biomedical, Corp.

 

 

1,139,269

 

 

 

13,152

 

 

 

8,443

 

Outset Medical, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

232,061

 

 

 

527

 

 

 

518

 

Quanterix Corporation (4)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

84,778

 

 

 

1,000

 

 

 

2,191

 

Subtotal: Medical Devices & Equipment (1.43%)*

 

 

 

 

 

 

18,275

 

 

 

14,147

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

99

 

Docker, Inc.

 

Software

 

Equity

 

Common Stock

 

 

200,000

 

 

 

4,284

 

 

 

4,284

 

Druva Holdings, Inc. (p.k.a. Druva, Inc.)

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

2,231

 

 

 

Software

 

Equity

 

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

481

 

Total Druva Holdings, Inc. (p.k.a. Druva, Inc.)

 

 

552,461

 

 

 

1,300

 

 

 

2,712

 

HighRoads, Inc.

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

Palantir Technologies

 

Software

 

Equity

 

Preferred Series D

 

 

9,535

 

 

 

47

 

 

 

47

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

1,749,089

 

 

 

10,489

 

 

 

8,661

 

 

 

Software

 

Equity

 

Preferred Series G

 

 

326,797

 

 

 

2,211

 

 

 

1,618

 

Total Palantir Technologies

 

 

2,085,421

 

 

 

12,747

 

 

 

10,326

 

Sprinklr, Inc.

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

4,602

 

WildTangent, Inc.

 

Software

 

Equity

 

Preferred Series 3

 

 

100,000

 

 

 

402

 

 

 

184

 

Subtotal: Software (2.24%)*

 

 

 

 

 

 

22,840

 

 

 

22,207

 

 

See notes to consolidated financial statements.

17


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

10

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

31

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

96

 

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

150

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

1,523,693

 

 

 

118

 

 

 

133

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F-1

 

 

2,418,125

 

 

 

150

 

 

 

191

 

Total Gynesonics, Inc.

 

 

9,595,178

 

 

 

1,941

 

 

 

611

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

416

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

561

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

1,216

 

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

100,200

 

 

 

500

 

 

 

469

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

569,160

 

 

 

2,550

 

 

 

2,662

 

Subtotal: Surgical Devices (0.33%)*

 

 

 

 

 

 

4,491

 

 

 

3,273

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series C

 

 

3,107,520

 

 

 

500

 

 

 

328

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series 5

 

 

99,280

 

 

 

500

 

 

 

452

 

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

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

380

 

 

 

61,502

 

 

 

1,775

 

Subtotal: Sustainable and Renewable Technology (0.26%)*

 

 

 

 

 

 

62,502

 

 

 

2,555

 

Total: Equity Investments (15.86%)*

 

 

 

 

 

 

205,600

 

 

 

157,045

 

 

See notes to consolidated financial statements.

18


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment (1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

3,328

 

 

$

 

 

$

10

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.00%)*

 

 

 

 

 

 

418

 

 

 

10

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard (15)

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

Intelligent Beauty, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

255

 

The Neat Company

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

54,054

 

 

 

365

 

 

 

 

WHOOP, INC.

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

68,627

 

 

 

18

 

 

 

6

 

Subtotal: Consumer & Business Products (0.03%)*

 

 

 

 

 

 

841

 

 

 

261

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agile Therapeutics, Inc. (4)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

180,274

 

 

 

730

 

 

 

47

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

846

 

Dance Biopharm, Inc. (15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

Kaleo, Inc.

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

3,449

 

Neos Therapeutics, Inc. (4)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

1

 

PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

3,929

 

 

 

390

 

 

 

 

Pulmatrix Inc. (4)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

2,515

 

 

 

116

 

 

 

 

ZP Opco, Inc. (4)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

3,618

 

 

 

266

 

 

 

 

Subtotal: Drug Delivery (0.44%)*

 

 

 

 

 

 

2,456

 

 

 

4,343

 

 

See notes to consolidated financial statements.

19


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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)(5)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

201,330

 

 

$

303

 

 

$

124

 

ADMA Biologics, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

31

 

Brickell Biotech, Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

26,086

 

 

 

119

 

 

 

 

Cerecor, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,328

 

 

 

70

 

 

 

25

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

61,273

 

 

 

178

 

 

 

117

 

CTI BioPharma Corp. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

29,239

 

 

 

165

 

 

 

 

CytRx Corporation (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

105,694

 

 

 

160

 

 

 

 

Dare Biosciences, 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. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,806

 

 

 

266

 

 

 

11

 

Fortress Biotech, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

11

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

403,136

 

 

 

431

 

 

 

101

 

Immune Pharmaceuticals (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

10,742

 

 

 

164

 

 

 

 

Melinta Therapeutics (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

8,109

 

 

 

626

 

 

 

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,452

 

 

 

282

 

 

 

38

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,710

 

 

 

460

 

 

 

871

 

Neuralstem, Inc. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

5,783

 

 

 

77

 

 

 

 

Ology Bioservices, Inc. (15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

 

Paratek Pharmaceuticals, Inc. (4)(10)(15)(16)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

94,841

 

 

 

204

 

 

 

20

 

Savara Inc. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

32,467

 

 

 

203

 

 

 

50

 

Sorrento Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

306,748

 

 

 

889

 

 

 

624

 

Stealth Bio Therapeutics Corp. (4)(5)(10)

 

Drug Discovery & Development

 

Warrant

 

American Depositary Shares

 

 

41,667

 

 

 

158

 

 

 

113

 

TG Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

147,058

 

 

 

564

 

 

 

637

 

Tricida, Inc. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

123,637

 

 

 

978

 

 

 

2,677

 

Urovant Sciences, Ltd. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

33,259

 

 

 

143

 

 

 

133

 

X4 Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

25,000

 

 

 

314

 

 

 

149

 

XOMA Corporation (4)(10)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,063

 

 

 

279

 

 

 

1

 

Subtotal: Drug Discovery & Development (0.58%)*

 

 

 

 

 

8,705

 

 

 

5,733

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

908 DEVICES INC. (15)

 

Electronics & Computer Hardware

 

Warrant

 

Preferred Series D

 

 

79,856

 

 

 

101

 

 

 

51

 

Subtotal: Electronics & Computer Hardware (0.01%)*

 

 

 

 

 

 

101

 

 

 

51

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (4)

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

139,673

 

 

 

157

 

 

 

157

 

Subtotal: Healthcare Services, Other (0.02%)*

 

 

 

 

 

 

157

 

 

 

157

 

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

 

 

 

200

 

Netbase Solutions, Inc.

 

Information Services

 

Warrant

 

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

418

 

RichRelevance, Inc.

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.06%)*

 

 

 

 

 

 

819

 

 

 

618

 

 

See notes to consolidated financial statements.

20


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

 

Blurb, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

14

 

Cloudpay, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

4,960

 

 

 

45

 

 

 

12

 

Contentful, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

82

 

 

 

1

 

 

 

50

 

Fastly, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series F

 

 

152,195

 

 

 

71

 

 

 

80

 

First Insight, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

75,917

 

 

 

96

 

 

 

105

 

Intent (p.k.a. Intent Media, Inc.)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

112

 

Interactions Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G-3

 

 

68,187

 

 

 

204

 

 

 

441

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

2,703

 

Lendio, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

127,032

 

 

 

39

 

 

 

39

 

Lightspeed POS, Inc. (4)(5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

61,402

 

 

 

20

 

 

 

528

 

LogicSource

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

60

 

Oportun

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

419

 

Postmates, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

189,865

 

 

 

317

 

 

 

338

 

RumbleON, Inc. (4)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

102,768

 

 

 

87

 

 

 

55

 

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

 

 

 

104

 

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

173,076

 

 

 

8

 

 

 

6

 

Total Snagajob.com, Inc.

 

 

1,973,076

 

 

 

790

 

 

 

110

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

7

 

The Faction Group LLC

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

8,703

 

 

 

234

 

 

 

324

 

Thumbtack, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

102,821

 

 

 

124

 

 

 

97

 

Xometry, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

87,784

 

 

 

47

 

 

 

90

 

Subtotal: Internet Consumer & Business Services (0.56%)*

 

 

 

 

 

 

5,025

 

 

 

5,584

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machine Zone, Inc.

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

1,552,710

 

 

 

1,960

 

 

 

2,003

 

Napster

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

383

 

 

 

110

 

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

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

255,818

 

 

 

4

 

 

 

4

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

26

 

Subtotal: Media/Content/Info (0.22%)*

 

 

 

 

 

 

2,695

 

 

 

2,143

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B-1

 

 

112,858

 

 

 

455

 

 

 

 

Avedro, Inc. (4)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

67,415

 

 

 

401

 

 

 

407

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

3

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series BB

 

 

725,806

 

 

 

351

 

 

 

409

 

Total Flowonix Medical Incorporated

 

 

881,131

 

 

 

713

 

 

 

412

 

Gelesis, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

 

78

 

 

 

203

 

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

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

1,105

 

 

 

 

 

 

 

Intuity Medical, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series 4

 

 

1,819,078

 

 

 

294

 

 

 

390

 

Medrobotics Corporation (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

 

Micell Technologies, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-2

 

 

84,955

 

 

 

262

 

 

 

 

NinePoint Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

144

 

Optiscan Biomedical, Corp. (6)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

74,424

 

 

 

573

 

 

 

287

 

Outset Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

500,000

 

 

 

402

 

 

 

250

 

Quanterix Corporation (4)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

66,039

 

 

 

204

 

 

 

754

 

Sebacia, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

778,301

 

 

 

133

 

 

 

157

 

Sintx Technologies, Inc. (4)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

8,603

 

 

 

459

 

 

 

 

SonaCare Medical, LLC

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Tela Bio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B

 

 

387,930

 

 

 

61

 

 

 

46

 

ViewRay, Inc. (4)(15)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

128,231

 

 

 

333

 

 

 

243

 

Subtotal: Medical Devices & Equipment (0.33%)*

 

 

 

 

 

 

5,096

 

 

 

3,293

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

242

 

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

433

 

Total Achronix Semiconductor Corporation

 

 

1,110,000

 

 

 

259

 

 

 

675

 

Aquantia Corp. (4)

 

Semiconductors

 

Warrant

 

Common Stock

 

 

19,683

 

 

 

4

 

 

 

3

 

Elenion Technologies Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

225

 

 

 

8

 

 

 

12

 

Subtotal: Semiconductors (0.07%)*

 

 

 

 

 

 

271

 

 

 

690

 

 

See notes to consolidated financial statements.

21


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

$

79

 

 

 

Software

 

Warrant

 

Preferred Series F

 

 

31,673

 

 

 

343

 

 

 

89

 

Total Actifio, Inc.

 

 

 

 

 

 

 

 

105,257

 

 

 

592

 

 

 

168

 

CareCloud Corporation (15)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

15

 

Clickfox, Inc. (15)

 

Software

 

Warrant

 

Preferred Series B

 

 

539,818

 

 

 

167

 

 

 

3

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

729

 

 

 

6

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

2,218,214

 

 

 

231

 

 

 

88

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

3,350,051

 

 

 

1,127

 

 

 

97

 

Cloudian, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

477,454

 

 

 

72

 

 

 

67

 

Dashlane, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

239,852

 

 

 

219

 

 

 

224

 

DNAnexus, Inc.

 

Software

 

Warrant

 

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

116

 

Evernote Corporation

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

75

 

Fuze, Inc. (15)(16)

 

Software

 

Warrant

 

Series F Preferred

 

 

256,158

 

 

 

89

 

 

 

 

Lightbend, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C-1

 

 

712,323

 

 

 

109

 

 

 

95

 

Message Systems, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C

 

 

503,718

 

 

 

333

 

 

 

796

 

Neos, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

221,150

 

 

 

22

 

 

 

 

Nuvolo Technologies Corporation

 

Software

 

Warrant

 

Common Stock

 

 

30,000

 

 

 

43

 

 

 

44

 

OneLogin, Inc. (15)

 

Software

 

Warrant

 

Common Stock

 

 

381,620

 

 

 

304

 

 

 

600

 

Poplicus, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

132,168

 

 

 

 

 

 

 

Quid, Inc. (15)

 

Software

 

Warrant

 

Preferred Series D

 

 

71,576

 

 

 

1

 

 

 

2

 

RapidMiner, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

18

 

RedSeal Inc. (15)

 

Software

 

Warrant

 

Preferred Series C-Prime

 

 

640,603

 

 

 

66

 

 

 

21

 

Signpost, Inc.

 

Software

 

Warrant

 

Preferred Series C

 

 

324,005

 

 

 

314

 

 

 

44

 

ThreatConnect, Inc. (15)

 

Software

 

Warrant

 

Preferred Series B

 

 

134,086

 

 

 

26

 

 

 

27

 

Subtotal: Software (0.24%)*

 

 

 

 

 

 

3,802

 

 

 

2,409

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (4)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

1,717,709

 

 

 

861

 

 

 

156

 

Subtotal: Specialty Pharmaceuticals (0.02%)*

 

 

 

 

 

 

861

 

 

 

156

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

74

 

 

 

7

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

321

 

 

 

31

 

Total Gynesonics, Inc.

 

 

1,756,445

 

 

 

395

 

 

 

38

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

382

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series F

 

 

50,544

 

 

 

38

 

 

 

 

Total Transmedics, Inc.

 

 

225,544

 

 

 

138

 

 

 

382

 

Subtotal: Surgical Devices (0.04%)*

 

 

 

 

 

 

533

 

 

 

420

 

 

See notes to consolidated financial statements.

22


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2019

(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

 

 

 

272

 

Calera, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

Fluidic, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

274

 

 

 

435

 

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

 

 

 

157

 

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

50

 

Total Kinestral Technologies, Inc.

 

 

456,883

 

 

 

218

 

 

 

207

 

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

 

 

 

150

 

Rive Technology, Inc. (15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series E

 

 

234,477

 

 

 

13

 

 

 

1

 

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

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.11%)*

 

 

 

 

 

 

2,505

 

 

 

1,065

 

Total: Warrant Investments (2.72%)*

 

 

 

 

 

 

34,285

 

 

 

26,933

 

Total Investments in Securities (210.13%)*

 

 

 

 

 

$

2,153,263

 

 

$

2,081,042

 

 

*

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 5.50% at March 31, 2019. Daily LIBOR, 1-month LIBOR, 3-month LIBOR and 12-month LIBOR represent 2.39%, 2.50%, 2.59% and

2.69%, respectively, at March 31, 2019.

(3)

Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $63.5 million, $153.0 million and $89.4 million respectively. The tax cost of investments is $2.2 billion.

(4)

Except for warrants in 41 publicly traded companies and common stock in 25 publicly traded companies, all investments are restricted at March 31, 2019 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s board of directors (the “Board of Directors”). No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(5)

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

(6)

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

(7)

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

(8)

Debt is on non-accrual status at March 31, 2019, and is therefore considered non-income producing. Note that at March 31, 2019, 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.

(16)

Denotes that the fair value of the Company’s total investments in this portfolio company represent greater than 5% of the Company’s total assets at March 31, 2019.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company at March 31, 2019. 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, 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. (11)

 

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45% or Floor rate of 9.95%, 3.85% Exit Fee

 

$

4,999

 

 

$

5,165

 

 

$

5,165

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,165

 

 

 

5,165

 

Subtotal: Biotechnology Tools (0.54%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,165

 

 

 

5,165

 

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

 

 

 

6,026

 

 

 

5,983

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,026

 

 

 

5,983

 

Subtotal: Consumer & Business Products (0.63%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,026

 

 

 

5,983

 

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

 

 

 

14,729

 

 

 

14,401

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,729

 

 

 

14,401

 

Subtotal: Diversified Financial Services (1.51%)*

 

 

 

14,729

 

 

 

14,401

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

10,936

 

 

 

11,926

 

 

 

11,842

 

Antares Pharma Inc. (10)(11)(15)

 

 

Drug Delivery

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 4.25% Exit Fee

 

$

25,000

 

 

 

25,313

 

 

 

25,081

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,239

 

 

 

36,923

 

Subtotal: Drug Delivery (3.86%)*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,239

 

 

 

36,923

 

 

See notes to consolidated financial statements.

24


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 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

 

$

757

 

 

$

1,471

 

 

$

1,471

 

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

 

$

4,808

 

 

 

5,281

 

 

 

5,281

 

Epirus Biopharmaceuticals, Inc. (8)

 

 

Drug Discovery & Development

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 4.70% or Floor rate of 7.95%, 3.00% Exit Fee

 

$

2,203

 

 

 

2,487

 

 

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

9,239

 

 

 

6,752

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (10)(11)

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee

 

$

10,000

 

 

 

9,871

 

 

 

9,819

 

Aveo Pharmaceuticals, Inc. (11)

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 5.40% Exit Fee

 

$

10,000

 

 

 

10,111

 

 

 

10,042

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 3.00% Exit Fee

 

$

10,000

 

 

 

10,220

 

 

 

10,157

 

Total Aveo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

$

20,000

 

 

 

20,331

 

 

 

20,199

 

Axovant Sciences Ltd. (5)(10)(11)(16)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80% or Floor rate of 10.55%

 

$

50,219

 

 

 

49,485

 

 

 

49,286

 

BridgeBio Pharma LLC (13)(16)

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.35% or Floor rate of 9.35%, 6.35% Exit Fee

 

$

35,000

 

 

 

35,054

 

 

 

35,263

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 3.35% or Floor rate of 9.10%, 5.75% Exit Fee

 

$

20,000

 

 

 

19,904

 

 

 

19,904

 

Total BridgeBio Pharma LLC

 

 

 

 

 

 

 

$

55,000

 

 

 

54,958

 

 

 

55,167

 

Chemocentryx, Inc. (10)(15)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee

 

$

20,000

 

 

 

19,957

 

 

 

20,104

 

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

 

 

 

14,937

 

 

 

14,788

 

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

 

 

 

15,024

 

 

 

15,024

 

Mesoblast (5)(10)(11)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 4.95% or Floor rate of 9.45%, 6.95% Exit Fee

 

$

35,000

 

 

 

35,346

 

 

 

35,190

 

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

 

$

18,569

 

 

 

19,256

 

 

 

19,122

 

Motif BioSciences Inc. (5)(10)(11)(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

 

 

 

14,907

 

 

 

14,786

 

Myovant Sciences, Ltd. (5)(10)(11)

 

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.00% or Floor rate of 8.25%, 6.55% Exit Fee

 

$

40,000

 

 

 

40,320

 

 

 

40,151

 

 

See notes to consolidated financial statements.

25


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 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)

 

Nabriva Therapeutics (5)(10)

 

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 4.30% or Floor rate of 9.80%, 6.95% Exit Fee

 

$

25,000

 

 

$

24,750

 

 

$

24,750

 

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (10)(11)(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

 

 

 

40,882

 

 

 

40,472

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,240

 

 

 

10,137

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 2.25% Exit Fee

 

$

10,000

 

 

 

10,084

 

 

 

9,925

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

August 2022

 

Interest rate PRIME + 2.10% or Floor rate of 7.85%, 6.95% Exit Fee

 

$

10,000

 

 

 

10,014

 

 

 

10,014

 

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

 

$

70,000

 

 

 

71,220

 

 

 

70,548

 

Stealth Bio Therapeutics Corp. (5)(10)(11)

 

 

Drug Discovery & Development

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 6.25% Exit Fee

 

$

19,313

 

 

 

19,740

 

 

 

19,597

 

Tricida, Inc. (11)(15)

 

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 8.19% Exit Fee

 

$

40,000

 

 

 

39,622

 

 

 

39,794

 

uniQure B.V. (5)(10)(11)

 

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 7.72% Exit Fee

 

$

35,000

 

 

 

35,538

 

 

 

35,386

 

Verastem, Inc. (11)

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,058

 

 

 

5,059

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%

or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,082

 

 

 

5,083

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

5,000

 

 

 

5,057

 

 

 

5,057

 

 

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

 

$

10,000

 

 

 

10,033

 

 

 

9,976

 

Total Verastem, Inc.

 

 

 

 

 

 

 

 

 

 

$

25,000

 

 

 

25,230

 

 

 

25,175

 

X4 Pharmaceuticals Inc.

 

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.25% or Floor rate of 9.50%, 7.95% Exit Fee

 

$

10,000

 

 

 

9,746

 

 

 

9,746

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

520,238

 

 

 

518,632

 

Subtotal: Drug Discovery & Development (54.99%)*

 

 

 

 

 

 

529,477

 

 

 

525,384

 

 

See notes to consolidated financial statements.

26


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 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

 

 

$

10,145

 

 

$

10,155

 

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

 

$

12,192

 

 

 

12,265

 

 

 

5,556

 

Subtotal: 1-5 Years Maturity

 

 

  

 

 

22,410

 

  

15,711

 

Subtotal: Electronics & Computer Hardware (1.64%)*

 

  

 

 

22,410

 

 

15,711

Healthcare Services, Other