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

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

9. Earnings Per Share

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 March 31,
	2023			2022
Numerator
Net increase (decrease) in net assets resulting from operations	$	94,564		$	(3,336	)
Less: Total distributions declared		(64,774	)		(57,882	)
Total Earnings, net of total distributions		29,790			(61,218	)

Earnings, net of distributions attributable to common shares		29,442			(61,218	)
Add: Distributions declared attributable to common shares		64,023			57,261
Numerator for basic and diluted change in net assets per common share		93,465			(3,957	)

Denominator
Basic weighted average common shares outstanding		135,252			118,296
Common shares issuable		1,804			—
Weighted average common shares outstanding assuming dilution		137,056			118,296

Change in net assets per common share:
Basic	$	0.69		$	(0.03	)
Diluted	$	0.68		$	(0.03	)

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. For the three months ended March 31, 2022, as the Company had a net loss, the effect of unvested stock options, restricted stock units and awards, and Performance Awards were anti-dilutive, and therefore have been excluded from the calculation of diluted loss 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 months ended March 31, 2023, and 2022, 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 March 31,
Anti-dilutive Securities	2023		2022
Unvested common stock options		1,853		31,354
Restricted stock units		7,874		32,697
Unvested restricted stock awards		54,361		—
Performance awards*		—		547,626

*Included in these amounts are shares related to certain equity-based awards, which are fully-vested but have not been delivered and thus not outstanding for purposes of calculating earnings per share.

As of March 31, 2023 and December 31, 2022, 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.