Hercules Capital, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Commitments and Contingencies (Tables)

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Schedule of Unfunded Contractual Commitments and Unencumbered Unfunded Commitments

As of March 31, 2025 and December 31, 2024, the Company’s unfunded contractual commitments available at the request of the portfolio company, including undrawn revolving facilities, and unencumbered by milestones were as follows:


(in thousands)	Unfunded Commitments (1) as of
Portfolio Company	March 31, 2025		December 31, 2024
Debt Investments:
Earnix, Inc.	$	41,250	$	41,250
Arcus Biosciences, Inc.	37,500		37,500
Thumbtack, Inc.	30,000		30,000
Harness, Inc.	26,950		11,550
Armis, Inc.	25,000		25,000
Disc Medicine, Inc.	22,500		22,500
Pindrop Security, Inc.	19,375		19,375
Coronet Cyber Security Ltd.	17,000		17,000
Marathon Health, LLC	16,550		24,250
Locus Robotics Corp.	16,250		16,250
Akero Therapeutics, Inc.	15,000		15,000
Dragos, Inc.	13,000		13,000
Aryaka Networks, Inc.	12,500		12,500
GoEuro Travel GmbH	12,468		26,250
WellBe Senior Medical, LLC	12,000		12,000
Semperis Technologies Inc.	11,250		—
Alector, Inc.	10,500		10,500
DocPlanner	9,538		—
CoreView USA, Inc.	9,000		10,000
iSpot.tv, Inc.	8,250		—
Suzy, Inc.	8,000		8,000
PayIt, LLC	8,000		8,000
Heron Therapeutics, Inc.	8,000		8,000
Curana Health Holdings, LLC	7,500		7,500
SmartSheet Inc.	4,840		—
Ennoble Care LLC	4,500		—
Babel Street	4,367		4,367
AlphaSense, Inc.	4,000		4,000
Reveleer	4,000		—
Allvue Systems, LLC	3,590		3,590
Behavox Limited	3,500		—
LogRhythm, Inc.	3,143		3,143
Zappi, Inc.	2,571		2,571
Dashlane, Inc.	2,500		5,000
Loftware, Inc.	2,277		2,277
Streamline Healthcare Solutions	2,200		2,200
New Relic, Inc.	2,176		2,176
Sumo Logic, Inc.	2,000		2,000
LogicSource	1,209		1,209
TaxCalc	1,166		1,166
LinenMaster, LLC	1,000		1,000
Alchemer LLC	890		—
Main Street Rural, Inc.	874		874
Fortified Health Security	840		840


(in thousands)	Unfunded Commitments (1) as of
Portfolio Company	March 31, 2025		December 31, 2024
Debt Investments:




Dispatch Technologies, Inc.	$	813	$	563
Omeda Holdings, LLC	750		731
Dronedeploy, Inc.	625		625
ShadowDragon, LLC	333		333
Zimperium, Inc.	282		196
Strive Health Holdings, LLC	—		8,299
Viridian Therapeutics, Inc.	—		8,000
ATAI Life Sciences N.V.	—		7,000
Saama Technologies, LLC	—		3,875
Ceros, Inc.	—		1,707
3GTMS, LLC	—		886
Flight Schedule Pro, LLC	—		646































































Total Unfunded Debt Commitments:	451,827		444,699

Investment Funds & Vehicles:(2)
Forbion Growth Opportunities Fund I C.V.	1,757		1,757
Forbion Growth Opportunities Fund II C.V.	2,072		2,072
Total Unfunded Commitments in Investment Funds & Vehicles:	3,829		3,829

Total Unfunded Commitments	$	455,656	$	448,528

(1)For debt investments, amounts represent unfunded commitments, including undrawn revolving facilities, which are available at the request of the portfolio company. Amount excludes unfunded commitments which are unavailable due to the borrower having not met certain milestones. These amounts also exclude $136.0 million and $139.7 million of unfunded commitments as of March 31, 2025 and December 31, 2024, respectively, to portfolio companies related to loans assigned to or directly committed by the Adviser Funds as described in “Note -12 Related Party Transactions”.

(2)For investment funds and vehicles, the amount represents uncalled capital commitments in private equity funds.

The following table provides additional information on the Company’s unencumbered unfunded commitments regarding milestones, expirations and type:


(in thousands) Unfunded Commitments
	March 31, 2025		December 31, 2024
Expiring during:


2025	$	244,624	$	251,941
2026	156,839		147,840
2027	10,020		10,553
2028	7,179		6,040
2029	24,149		24,149
2030	4,176		4,176
2031	4,840		—
Total Unfunded Debt Commitments	451,827		444,699

Unfunded Commitments in Investment Funds & Vehicles:
Expiring during:
2030	1,757		1,757
2032	2,072		2,072
Total Unfunded Commitments in Investment Funds & Vehicles	3,829		3,829
Total Unfunded Commitments	$	455,656	$	448,528

Schedule of Contractual Obligations

The following tables provide the Company’s contractual obligations as of March 31, 2025 and December 31, 2024:


As of March 31, 2025:	Payments due by period (in thousands)
Contractual Obligations(1)	Total		Less than 1 year		1 - 3 years		3 - 5 years		After 5 years
Debt(2)(3)	$	1,999,351	$	220,000	$	780,000	$	547,506	$	451,845
Lease and License Obligations(4)	23,400		3,287		6,710		5,618		7,785
Total	$	2,022,751	$	223,287	$	786,710	$	553,124	$	459,630

As of December 31, 2024:	Payments due by period (in thousands)
Contractual Obligations(1)	Total		Less than 1 year		1 - 3 years		3 - 5 years		After 5 years
Debt(5)(3)	$	1,783,265	$	170,000	$	891,000	$	283,790	$	438,475
Lease and License Obligations(4)	23,976		3,246		6,640		5,589		8,501
Total	$	1,807,241	$	173,246	$	897,640	$	289,379	$	446,976

(1)Excludes commitments to extend credit to the Company’s portfolio companies and uncalled capital commitments in investment funds.

(2)Includes $295.0 million in principal outstanding under the SBA Debentures, $70.0 million of the June 2025 Notes, $50.0 million of the June 2025 3-Year Notes, $50.0 million of the March 2026 A Notes, $50.0 million of the March 2026 B Notes, $116.8 million of the 2031 Asset-Backed Notes, $40.0 million of the 2033 Notes, $325.0 million of the September 2026 Notes, $350.0 million of the January 2027 Notes and $287.5 million of the 2028 Convertible Notes as of March 31, 2025. There was also $260.0 million outstanding under the SMBC Facility and $105.0 million outstanding under the MUFG Bank Facility as of March 31, 2025.

(3)Amounts represent future principal repayments and not the carrying value of each liability. See “Note 5 – Debt”.

(4)Leases and license obligations includes contractual amounts related to short-term leases.

(5)Includes $279.0 million in principal outstanding under the SBA Debentures, $50.0 million of the February 2025 Notes, $70.0 million of the June 2025 Notes, $50.0 million of the June 2025 3-Year Notes, $50.0 million of the March 2026 A Notes, $50.0 million of the March 2026 B Notes, $119.5 million of the 2031 Asset-Backed Notes, $40.0 million of the 2033 Notes, $325.0 million of the September 2026 Notes and $350.0 million of the January 2027 Notes as of December 31, 2024. There was also $283.8 million outstanding under the SMBC Facility and $116.0 million outstanding under the MUFG Bank Facility as of December 31, 2024.

Summary of Information Related to Measurement of Operating Lease Liabilities and Supplemental Cash Flow Information Related to Operating Leases

The following table sets forth information related to the measurement of the Company’s operating lease liabilities and supplemental cash flow information related to operating leases for the three months ended March 31, 2025 and 2024:


(in thousands)	Three Months Ended March 31,
	2025		2024
Total operating lease cost	$	774	$	533
Cash paid for amounts included in the measurement of lease liabilities	595		122


	As of March 31, 2025		As of December 31, 2024
Weighted-average remaining lease term (in years)	7.56		7.81
Weighted-average discount rate	6.84	%	6.85	%

Schedule of Future Minimum Lease Payments under Operating Leases and Reconciliation to Operating Lease Liability

The following table shows future minimum lease payments under the Company’s operating leases and a reconciliation to the operating lease liability as of March 31, 2025:


(in thousands)	As of March 31, 2025
2025	$	2,493
2026	3,179
2027	3,452
2028	2,766
Thereafter	11,324
Total lease payments	23,214
Less: imputed interest & other items	(6,003)
Total operating lease liability	$	17,211