| Schedule of Investments in and Advances to Affiliates |
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|
(in thousands) |
|
Investment(1) |
|
Amount of Interest and Fees Credited to Income(2) |
|
|
Realized Gain (Loss) |
|
|
Fair Value as of
December 31, 2022 |
|
|
Gross Additions(3) |
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|
Gross Reductions(4) |
|
|
Net Change in Unrealized Appreciation/ (Depreciation) |
|
|
Fair Value as of March 31, 2023 |
|
Portfolio Company |
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|
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|
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|
|
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|
Control Investments |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority Owned Control Investments |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronado Aesthetics, LLC(8) |
|
Preferred Stock |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
313 |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
(60 |
) |
|
$ |
253 |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
3 |
|
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(5) |
|
Unsecured Debt |
|
|
815 |
|
|
|
— |
|
|
|
21,700 |
|
|
|
22 |
|
|
|
— |
|
|
|
2,867 |
|
|
|
24,589 |
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
14,137 |
|
|
|
— |
|
|
|
— |
|
|
|
805 |
|
|
|
14,942 |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
1,107 |
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
|
|
1,170 |
|
Hercules Adviser LLC(6) |
|
Unsecured Debt |
|
|
150 |
|
|
|
— |
|
|
|
12,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,000 |
|
|
|
Member Units |
|
|
— |
|
|
|
— |
|
|
|
19,153 |
|
|
|
— |
|
|
|
— |
|
|
|
5,442 |
|
|
|
24,595 |
|
Total Majority Owned Control Investments |
|
|
|
$ |
965 |
|
|
$ |
— |
|
|
$ |
68,416 |
|
|
$ |
22 |
|
|
$ |
— |
|
|
$ |
9,114 |
|
|
$ |
77,552 |
|
Other Control Investments |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tectura Corporation(7) |
|
Senior Debt |
|
$ |
170 |
|
|
$ |
— |
|
|
$ |
8,042 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(268 |
) |
|
$ |
7,774 |
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Other Control Investments |
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|
|
$ |
170 |
|
|
$ |
— |
|
|
$ |
8,042 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(268 |
) |
|
$ |
7,774 |
|
Total Control Investments |
|
$ |
1,135 |
|
|
$ |
— |
|
|
$ |
76,458 |
|
|
$ |
22 |
|
|
$ |
— |
|
|
$ |
8,846 |
|
|
$ |
85,326 |
|
(1)Stock and warrants are generally non-income producing and restricted.
(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.
(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) became classified as a control investment as a result of obtaining a controlling financial interest.
(6)Hercules Adviser LLC is a wholly owned subsidiary providing investment management and other services to the Adviser Funds and other External Parties.
(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.
(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company.
Schedule 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
For the Three Months Ended March 31, 2022 (unaudited)
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|
(in thousands) |
|
Investment(1) |
|
Amount of Interest and Fees Credited to Income(2) |
|
|
Realized Gain (Loss) |
|
|
Fair Value as of
December 31, 2021 |
|
|
Gross Additions(3) |
|
|
Gross Reductions(4) |
|
|
Net Change in Unrealized Appreciation/ (Depreciation) |
|
|
Fair Value as of March 31, 2022 |
|
Portfolio Company |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
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|
|
Control Investments |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority Owned Control Investments |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronado Aesthetics, LLC (10) |
|
Preferred Stock |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
500 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
86 |
|
|
$ |
586 |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
28 |
|
Gibraltar Business Capital, LLC (5) |
|
Unsecured Debt |
|
|
850 |
|
|
|
— |
|
|
|
23,212 |
|
|
|
19 |
|
|
|
— |
|
|
|
(274 |
) |
|
|
22,957 |
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
19,393 |
|
|
|
— |
|
|
|
— |
|
|
|
(897 |
) |
|
|
18,496 |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
1,225 |
|
|
|
— |
|
|
|
— |
|
|
|
(56 |
) |
|
|
1,169 |
|
Hercules Adviser LLC(6) |
|
Unsecured Debt |
|
|
111 |
|
|
|
— |
|
|
|
8,850 |
|
|
|
1,300 |
|
|
|
— |
|
|
|
— |
|
|
|
10,150 |
|
|
|
Member Units |
|
|
— |
|
|
|
— |
|
|
|
11,990 |
|
|
|
— |
|
|
|
— |
|
|
|
2,554 |
|
|
|
14,544 |
|
Total Majority Owned Control Investments |
|
|
|
$ |
961 |
|
|
$ |
— |
|
|
$ |
65,235 |
|
|
$ |
1,319 |
|
|
$ |
— |
|
|
$ |
1,376 |
|
|
$ |
67,930 |
|
Other Control Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tectura Corporation(7) |
|
Senior Debt |
|
$ |
170 |
|
|
$ |
— |
|
|
$ |
8,269 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
78 |
|
|
$ |
8,347 |
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Other Control Investments |
|
|
|
$ |
170 |
|
|
$ |
— |
|
|
$ |
8,269 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
78 |
|
|
$ |
8,347 |
|
Total Control Investments |
|
$ |
1,131 |
|
|
$ |
— |
|
|
$ |
73,504 |
|
|
$ |
1,319 |
|
|
$ |
— |
|
|
$ |
1,454 |
|
|
$ |
76,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Black Crow AI, Inc.(8) |
|
Preferred Stock |
|
$ |
— |
|
|
$ |
3,772 |
|
|
$ |
1,120 |
|
|
$ |
— |
|
|
$ |
(1,000 |
) |
|
$ |
(120 |
) |
|
$ |
— |
|
Pineapple Energy LLC (9) |
|
Senior Debt |
|
|
1,047 |
|
|
|
— |
|
|
|
7,747 |
|
|
|
— |
|
|
|
(4,781 |
) |
|
|
20 |
|
|
|
2,986 |
|
|
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
591 |
|
|
|
400 |
|
|
|
— |
|
|
|
853 |
|
|
|
1,844 |
|
Total Affiliate Investments |
|
$ |
1,047 |
|
|
$ |
3,772 |
|
|
$ |
9,458 |
|
|
$ |
400 |
|
|
$ |
(5,781 |
) |
|
$ |
753 |
|
|
$ |
4,830 |
|
Total Control and Affiliate Investments |
|
$ |
2,178 |
|
|
$ |
3,772 |
|
|
$ |
82,962 |
|
|
$ |
1,719 |
|
|
$ |
(5,781 |
) |
|
$ |
2,207 |
|
|
$ |
81,107 |
|
(1)Stock and warrants are generally non-income producing and restricted.
(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.
(3)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.
(5)As of March 31, 2018, the Company's investment in Gibraltar Business Capital, LLC became classified as a control investment as a result of obtaining a controlling financial interest.
(6)Hercules Adviser LLC is a wholly-owned subsidiary providing investment management and other services to External Parties.
(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the
portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.
(8)During the three months ended March 31, 2022, the Company sold its investments in Black Crow AI, Inc., as a result it is no longer an affiliate investment as of March 31, 2022.
(9)As of December 11, 2020, the Company's investment in Pineapple Energy LLC became classified as an affiliate investment as a result of obtaining more than 5% but less than 25% of the
voting securities of the portfolio company.
(10)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting
securities of the portfolio company.
Schedule 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of March 31, 2023 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor |
|
Principal or Shares |
|
|
Cost |
|
|
Value (2) |
|
Portfolio Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Control Investments |
|
|
|
|
|
|
|
|
|
Majority Owned Control Investments |
|
|
|
|
|
|
|
|
|
Coronado Aesthetics, LLC |
|
Medical Devices & Equipment |
|
Preferred Series A Equity |
|
|
|
|
|
|
5,000,000 |
|
|
$ |
250 |
|
|
$ |
253 |
|
|
|
Medical Devices & Equipment |
|
Common Stock |
|
|
|
|
|
|
180,000 |
|
|
|
— |
|
|
|
3 |
|
Total Coronado Aesthetics, LLC |
|
|
|
|
$ |
250 |
|
|
$ |
256 |
|
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) |
|
Diversified Financial Services |
|
Unsecured Debt |
|
September 2026 |
|
Interest rate FIXED 11.50% |
|
$ |
25,000 |
|
|
|
24,589 |
|
|
|
24,589 |
|
|
|
Diversified Financial Services |
|
Preferred Series A Equity |
|
|
|
|
|
|
10,602,752 |
|
|
|
26,122 |
|
|
|
14,942 |
|
|
|
Diversified Financial Services |
|
Common Stock |
|
|
|
|
|
|
830,000 |
|
|
|
1,884 |
|
|
|
1,170 |
|
Total Gibraltar Acquisition, LLC |
|
|
|
|
$ |
52,595 |
|
|
$ |
40,701 |
|
Hercules Adviser LLC |
|
Diversified Financial Services |
|
Unsecured Debt |
|
June 2025 |
|
Interest rate FIXED 5.00% |
|
$ |
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
Diversified Financial Services |
|
Member Units |
|
|
|
|
|
|
1 |
|
|
|
35 |
|
|
|
24,595 |
|
Total Hercules Adviser LLC |
|
|
|
|
$ |
12,035 |
|
|
$ |
36,595 |
|
Total Majority Owned Control Investments (5.17%)* |
|
|
|
|
$ |
64,880 |
|
|
$ |
77,552 |
|
Other Control Investments |
|
|
|
|
|
|
|
|
|
Tectura Corporation |
|
Consumer & Business Services |
|
Senior Secured Debt |
|
July 2024 |
|
PIK Interest 5.00% |
|
$ |
23,703 |
|
|
$ |
13,263 |
|
|
$ |
— |
|
|
|
Consumer & Business Services |
|
Senior Secured Debt |
|
July 2024 |
|
Interest rate FIXED 8.25% |
|
$ |
8,250 |
|
|
|
8,250 |
|
|
|
7,774 |
|
|
|
Consumer & Business Services |
|
Preferred Series BB Equity |
|
|
|
|
|
|
1,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
Consumer & Business Services |
|
Common Stock |
|
|
|
|
|
|
414,994,863 |
|
|
|
900 |
|
|
|
— |
|
Total Tectura Corporation |
|
|
|
|
$ |
22,413 |
|
|
$ |
7,774 |
|
Total Other Control Investments (0.52%)* |
|
|
|
|
$ |
22,413 |
|
|
$ |
7,774 |
|
Total Control Investments (5.69%)* |
|
|
|
|
$ |
87,293 |
|
|
$ |
85,326 |
|
* Value as a percent of net assets
(1)Stock and warrants are generally non-income producing and restricted.
(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.
Schedule 12 – 14
HERCULES CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and for the year ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Industry |
|
Type of Investment (1) |
|
Maturity Date |
|
Interest Rate and Floor |
|
Principal
or Shares |
|
|
Cost |
|
|
Value (2) |
|
Portfolio Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Control Investments |
|
|
|
|
|
|
|
|
|
Majority Owned Control Investments |
|
|
|
|
|
|
|
|
|
Coronado Aesthetics, LLC |
|
Medical Devices & Equipment |
|
Preferred Series A Equity |
|
|
|
|
|
|
5,000,000 |
|
|
$ |
250 |
|
|
$ |
313 |
|
|
|
Medical Devices & Equipment |
|
Common Stock |
|
|
|
|
|
|
180,000 |
|
|
|
— |
|
|
|
6 |
|
Total Coronado Aesthetics, LLC |
|
|
|
|
$ |
250 |
|
|
$ |
319 |
|
Gibraltar Business Capital, LLC |
|
Diversified Financial Services |
|
Unsecured Debt |
|
September 2026 |
|
Interest rate FIXED 14.50% |
|
$ |
15,000 |
|
|
|
14,715 |
|
|
|
12,802 |
|
|
|
Diversified Financial Services |
|
Unsecured Debt |
|
September 2026 |
|
Interest rate FIXED 11.50% |
|
$ |
10,000 |
|
|
|
9,852 |
|
|
|
8,898 |
|
|
|
Diversified Financial Services |
|
Preferred Series A Equity |
|
|
|
|
|
|
10,602,752 |
|
|
|
26,122 |
|
|
|
14,137 |
|
|
|
Diversified Financial Services |
|
Common Stock |
|
|
|
|
|
|
830,000 |
|
|
|
1,884 |
|
|
|
1,107 |
|
Total Gibraltar Business Capital, LLC |
|
|
|
|
$ |
52,573 |
|
|
$ |
36,944 |
|
Hercules Adviser LLC |
|
Diversified Financial Services |
|
Unsecured Debt |
|
June 2025 |
|
Interest rate FIXED 5.00% |
|
$ |
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
Diversified Financial Services |
|
Member Units |
|
|
|
|
|
|
1 |
|
|
|
35 |
|
|
|
19,153 |
|
Total Hercules Adviser LLC |
|
|
|
|
$ |
12,035 |
|
|
$ |
31,153 |
|
Total Majority Owned Control Investments (4.88%)* |
|
|
|
|
$ |
64,858 |
|
|
$ |
68,416 |
|
Other Control Investments |
|
|
|
|
|
|
|
|
|
Tectura Corporation |
|
Consumer & Business Services |
|
Senior Secured Debt |
|
July 2024 |
|
PIK Interest 5.00% |
|
$ |
10,680 |
|
|
$ |
240 |
|
|
$ |
— |
|
|
|
Consumer & Business Services |
|
Senior Secured Debt |
|
July 2024 |
|
Interest rate FIXED 8.25% |
|
$ |
8,250 |
|
|
|
8,250 |
|
|
|
8,042 |
|
|
|
Consumer & Business Services |
|
Senior Secured Debt |
|
July 2024 |
|
PIK Interest 5.00% |
|
$ |
13,023 |
|
|
|
13,023 |
|
|
|
— |
|
|
|
Consumer & Business Services |
|
Preferred Series BB Equity |
|
|
|
|
|
|
1,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
Consumer & Business Services |
|
Common Stock |
|
|
|
|
|
|
414,994,863 |
|
|
|
900 |
|
|
|
— |
|
Total Tectura Corporation |
|
|
|
|
$ |
22,413 |
|
|
$ |
8,042 |
|
Total Other Control Investments (0.58%)* |
|
|
|
|
$ |
22,413 |
|
|
$ |
8,042 |
|
Total Control Investments (5.46%)* |
|
|
|
|
$ |
87,271 |
|
|
$ |
76,458 |
|
Total Control and Affiliate Investments (5.46%)* |
|
|
$ |
87,271 |
|
|
$ |
76,458 |
|
* Value as a percent of net assets
(1)Stock and warrants are generally non-income producing and restricted.
(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.
|