Hercules Capital, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2024

Shares used in the computation of the Company’s basic and diluted earnings per share are as follows:


(in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator
Net increase (decrease) in net assets resulting from operations	$	68,711	$	27,967	$	201,527	$	217,306
Less: Total distributions declared	(77,943)		(72,534)		(231,868)		(204,687)
Total Earnings (loss), net of total distributions	(9,232)		(44,567)		(30,341)		12,619

Earnings (loss), net of distributions attributable to common shares	(9,232)		(44,567)		(30,341)		12,486
Add: Distributions declared attributable to common shares	77,263		71,860		229,650		202,556
Numerator for basic and diluted change in net assets per common share	$	68,031	$	27,293	$	199,309	$	215,042

Denominator
Basic weighted average common shares outstanding	161,019		146,899		159,742		141,223
Common shares issuable	496		211		511		903
Weighted average common shares outstanding assuming dilution	161,515		147,110		160,253		142,126

Change in net assets per common share:
Basic	$	0.42	$	0.19	$	1.25	$	1.52
Diluted	$	0.42	$	0.19	$	1.24	$	1.51

In the table above, unvested share-based payment awards that have non-forfeitable rights to distributions or distribution equivalents are treated as participating securities for calculating earnings per share. Unvested common stock options and restricted stock units are also considered for the purpose of calculating diluted earnings per share.

The calculation of change in net assets resulting from operations per common share assuming dilution, excludes all anti-dilutive shares. For the three and nine months ended September 30, 2024, and 2023, the number of anti-dilutive shares, as calculated based on the weighted average closing price of the Company’s common stock for the periods, are as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
Anti-dilutive Securities	2024	2023	2024	2023
Unvested common stock options	832	347	1,212	1,782
Restricted stock units	—	—	—	5,810
Unvested restricted stock awards	152	395	398	40,034

As of September 30, 2024 and December 31, 2023, the Company was authorized to issue 200.0 million shares of common stock with a par value of $0.001. Each share of common stock entitles the holder to one vote.

On October 28, 2024, the Company filed Articles of Amendment (the “Charter Amendment”) with the Secretary of State of the State of Maryland. The Charter Amendment amended the Company’s Articles of Incorporation to increase the number of authorized shares of Company stock from 200.0 million shares to 300.0 million shares, as approved by the Company’s Board. The Charter Amendment is effective as of October 28, 2024.