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HTGC Hercules Capital

Filed: 29 Jul 21, 4:32pm

 

 

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 June 30, 2021

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)

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

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 ☒

On July 22, 2021, there were 115,840,092 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 Statements of Assets and Liabilities as of June 30, 2021 (unaudited) and December 31, 2020

  

3

 

 

 

Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (unaudited)

  

5

 

 

 

Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 and 2020 (unaudited)

  

6

 

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of June 30, 2021 (unaudited)

  

8

 

 

 

Consolidated Schedule of Investments as of December 31, 2020

  

18

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

29

Item 2.

 

 

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

  

64

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

82

Item 4.

 

 

Controls and Procedures

  

83

 

PART II. OTHER INFORMATION

  

84

 

Item 1.

 

Legal Proceedings

  

84

Item 1A.

 

 

Risk Factors

 

84

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

85

Item 3.

 

Defaults Upon Senior Securities

  

85

Item 4.

 

 

Mine Safety Disclosures

  

85

Item 5.

 

 

Other Information

  

85

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

86

 

SIGNATURES

  

89

 

 

 

 


 

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, unless the context otherwise requires.

 

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $2,307,766 and $2,175,651, respectively)

 

$

2,444,849

 

 

$

2,288,338

 

Control investments (cost of $77,901 and $65,257, respectively)

 

 

66,491

 

 

 

57,400

 

Affiliate investments (cost of $13,307 and $74,450, respectively)

 

 

9,750

 

 

 

8,340

 

Total investments, at fair value (cost of $2,398,974 and $2,315,358, respectively)

 

 

2,521,090

 

 

 

2,354,078

 

Cash and cash equivalents

 

 

18,447

 

 

 

198,282

 

Restricted cash

 

 

5,766

 

 

 

39,340

 

Interest receivable

 

 

19,063

 

 

 

19,077

 

Right of use asset

 

 

8,039

 

 

 

9,278

 

Other assets

 

 

6,167

 

 

 

3,942

 

Total assets

 

$

2,578,572

 

 

$

2,623,997

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Debt (net of debt issuance costs - Note 5)

 

$

1,177,515

 

 

$

1,286,638

 

Accounts payable and accrued liabilities

 

 

36,886

 

 

 

36,343

 

Operating lease liability

 

 

7,813

 

 

 

9,312

 

Total liabilities

 

$

1,222,214

 

 

$

1,332,293

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

Common stock, par value

 

 

116

 

 

 

115

 

Capital in excess of par value

 

 

1,163,910

 

 

 

1,158,198

 

Total distributable earnings

 

 

192,332

 

 

 

133,391

 

Total net assets

 

$

1,356,358

 

 

$

1,291,704

 

Total liabilities and net assets

 

$

2,578,572

 

 

$

2,623,997

 

 

 

 

 

 

 

 

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

 

 

115,867

 

 

 

114,726

 

Net asset value per share

 

$

11.71

 

 

$

11.26

 

 

 

 

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 5 – Debt”), 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 Statements of Assets and Liabilities above.

 

 

 

June 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Restricted Cash

 

$

5,766

 

 

$

39,340

 

2027 Asset-Backed Notes, investments in securities, at value (cost of $219,537 and $267,657, respectively)

 

 

222,212

 

 

 

269,551

 

2028 Asset-Backed Notes, investments in securities, at value (cost of $321,429 and $355,236, respectively)

 

 

325,135

 

 

 

356,097

 

Total assets

 

$

553,113

 

 

$

664,988

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

2027 Asset-Backed Notes, net (principal of $117,896 and $180,988, respectively) (1)

 

$

116,571

 

 

$

178,812

 

2028 Asset-Backed Notes, net (principal of $196,485 and $250,000, respectively) (1)

 

 

194,749

 

 

 

247,647

 

Total liabilities

 

$

311,320

 

 

$

426,459

 

 

(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 5 – Debt”.

 

See notes to consolidated financial statements

 

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

$

60,276

 

 

$

62,667

 

 

$

123,258

 

 

$

128,005

 

Control investments

 

 

1,029

 

 

 

731

 

 

 

1,828

 

 

 

1,377

 

Affiliate investments

 

 

1

 

 

 

157

 

 

 

2

 

 

 

377

 

Total interest income

 

 

61,306

 

 

 

63,555

 

 

 

125,088

 

 

 

129,759

 

Fee income

 

 

 

 

 

 

 

 

 

 

 

 

Commitment, facility and loan fee income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

5,263

 

 

 

3,511

 

 

 

8,666

 

 

 

7,707

 

Control investments

 

 

15

 

 

 

5

 

 

 

23

 

 

 

10

 

Total commitment, facility and loan fee income

 

 

5,278

 

 

 

3,516

 

 

 

8,689

 

 

 

7,717

 

One-time fee income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

2,975

 

 

 

897

 

 

 

4,541

 

 

 

4,111

 

Total one-time fee income

 

 

2,975

 

 

 

897

 

 

 

4,541

 

 

 

4,111

 

Total fee income

 

 

8,253

 

 

 

4,413

 

 

 

13,230

 

 

 

11,828

 

Total investment income

 

 

69,559

 

 

 

67,968

 

 

 

138,318

 

 

 

141,587

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

14,490

 

 

 

15,076

 

 

 

29,240

 

 

 

29,608

 

Loan fees

 

 

2,220

 

 

 

1,650

 

 

 

5,020

 

 

 

3,444

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

Legal expenses

 

 

526

 

 

 

991

 

 

 

954

 

 

 

1,890

 

Tax expenses

 

 

1,746

 

 

 

899

 

 

 

3,184

 

 

 

2,034

 

Other expenses

 

 

3,542

 

 

 

3,973

 

 

 

6,710

 

 

 

7,998

 

Total general and administrative

 

 

5,814

 

 

 

5,863

 

 

 

10,848

 

 

 

11,922

 

Employee compensation

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

8,349

 

 

 

7,180

 

 

 

18,153

 

 

 

15,394

 

Stock-based compensation

 

 

2,926

 

 

 

2,515

 

 

 

5,670

 

 

 

4,955

 

Total employee compensation

 

 

11,275

 

 

 

9,695

 

 

 

23,823

 

 

 

20,349

 

Total gross operating expenses

 

 

33,799

 

 

 

32,284

 

 

 

68,931

 

 

 

65,323

 

Expenses allocated to the Adviser Subsidiary

 

 

(1,204

)

 

 

 

 

 

(2,137

)

 

 

 

Total net operating expenses

 

 

32,595

 

 

 

32,284

 

 

 

66,794

 

 

 

65,323

 

Net investment income

 

 

36,964

 

 

 

35,684

 

 

 

71,524

 

 

 

76,264

 

Net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

47,861

 

 

 

141

 

 

 

55,631

 

 

 

7,108

 

Affiliate investments

 

 

(62,143

)

 

 

 

 

 

(62,143

)

 

 

 

Total net realized gain (loss) on investments

 

 

(14,282

)

 

 

141

 

 

 

(6,512

)

 

 

7,108

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

3,075

 

 

 

23,613

 

 

 

21,097

 

 

 

(34,816

)

Control investments

 

 

(5,255

)

 

 

2,642

 

 

 

(3,553

)

 

 

(5,209

)

Affiliate investments

 

 

62,229

 

 

 

(315

)

 

 

64,338

 

 

 

(10,305

)

Total net change in unrealized appreciation (depreciation) on investments

 

 

60,049

 

 

 

25,940

 

 

 

81,882

 

 

 

(50,330

)

Total net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:

 

 

45,767

 

 

 

26,081

 

 

 

75,370

 

 

 

(43,222

)

Net increase (decrease) in net assets resulting from operations

 

$

82,731

 

 

$

61,765

 

 

$

146,894

 

 

$

33,042

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Basic

 

$

0.32

 

 

$

0.32

 

 

$

0.62

 

 

$

0.69

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.55

 

 

$

1.27

 

 

$

0.29

 

Diluted

 

$

0.65

 

 

$

0.55

 

 

$

1.21

 

 

$

0.29

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

114,654

 

 

 

111,558

 

 

 

114,480

 

 

 

110,256

 

Diluted

 

 

129,572

 

 

 

111,729

 

 

 

122,188

 

 

 

110,504

 

Distributions paid per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.39

 

 

$

0.32

 

 

$

0.76

 

 

$

0.72

 

 

 

See notes to consolidated financial statements

 

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2021

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2021

 

115,768

 

 

$

116

 

 

$

1,160,519

 

 

$

154,759

 

 

$

1,315,394

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

82,731

 

 

 

82,731

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Issuance of common stock due to stock option exercises

 

41

 

 

 

 

 

 

888

 

 

 

 

 

 

888

 

Retired shares from net issuance

 

(12

)

 

 

 

 

 

(486

)

 

 

 

 

 

(486

)

Issuance of common stock under restricted stock plan

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(33

)

 

 

 

 

 

(725

)

 

 

 

 

 

(725

)

Distributions reinvested in common stock

 

67

 

 

 

 

 

 

1,070

 

 

 

 

 

 

1,070

 

Distributions

 

 

 

 

 

 

 

 

 

 

(45,158

)

 

 

(45,158

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,647

 

 

 

 

 

 

2,647

 

Balance as of June 30, 2021

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

114,726

 

 

$

115

 

 

$

1,158,198

 

 

$

133,391

 

 

$

1,291,704

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

146,894

 

 

 

146,894

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

(198

)

 

 

 

 

 

(198

)

Issuance of common stock due to stock option exercises

 

263

 

 

 

 

 

 

3,633

 

 

 

 

 

 

3,633

 

Retired shares from net issuance

 

(62

)

 

 

 

 

 

(1,089

)

 

 

 

 

 

(1,089

)

Issuance of common stock under restricted stock plan

 

960

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(154

)

 

 

 

 

 

(3,906

)

 

 

 

 

 

(3,906

)

Distributions reinvested in common stock

 

134

 

 

 

 

 

 

2,110

 

 

 

 

 

 

2,110

 

Distributions

 

 

 

 

 

 

 

 

 

 

(87,953

)

 

 

(87,953

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,163

 

 

 

 

 

 

5,163

 

Balance as of June 30, 2021

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

 

(1)
Stock-based compensation includes $25 and $50 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2020

 

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2020

 

 

110,601

 

 

$

111

 

 

$

1,182,080

 

 

$

(85,111

)

 

$

1,097,080

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

61,765

 

 

 

61,765

 

Public offering, net of offering expenses

 

 

3,525

 

 

 

4

 

 

 

38,696

 

 

 

 

 

 

38,700

 

Issuance of common stock under restricted stock plan

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(10

)

 

 

 

 

 

(282

)

 

 

 

 

 

(282

)

Distributions reinvested in common stock

 

 

62

 

 

 

 

 

 

643

 

 

 

 

 

 

643

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(36,002

)

 

 

(36,002

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

2,126

 

 

 

 

 

 

2,126

 

Balance as of June 30, 2020

 

 

114,230

 

 

$

115

 

 

$

1,223,263

 

 

$

(59,348

)

 

$

1,164,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

 

107,364

 

 

$

108

 

 

$

1,145,106

 

 

$

(12,165

)

 

$

1,133,049

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

33,042

 

 

 

33,042

 

Public offering, net of offering expenses

 

 

5,966

 

 

 

6

 

 

 

73,656

 

 

 

 

 

 

73,662

 

Issuance of common stock due to stock option exercises

 

 

29

 

 

 

 

 

 

362

 

 

 

 

 

 

362

 

Retired shares from net issuance

 

 

(24

)

 

 

 

 

 

(376

)

 

 

 

 

 

(376

)

Issuance of common stock under restricted stock plan

 

 

801

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(27

)

 

 

 

 

 

(1,162

)

 

 

 

 

 

(1,162

)

Distributions reinvested in common stock

 

 

121

 

 

 

 

 

 

1,470

 

 

 

 

 

 

1,470

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(80,225

)

 

 

(80,225

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

4,208

 

 

 

 

 

 

4,208

 

Balance as of June 30, 2020

 

 

114,230

 

 

$

115

 

 

$

1,223,263

 

 

$

(59,348

)

 

$

1,164,030

 

 

(1)
Stock-based compensation includes $23 and $44 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2020.

 

See notes to consolidated financial statements

 

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Six Months Ended June 30,

 

 

2021

 

 

2020

 

Cash flows used in operating activities:

 

 

 

 

 

Net increase in net assets resulting from operations

$

146,894

 

 

$

33,042

 

Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided by (used in) operating activities:

 

 

 

Purchases of investments

 

(629,146

)

 

 

(365,890

)

Fundings assigned to External Funds

 

75,286

 

 

 

 

Principal and fee payments received on investments

 

394,801

 

 

 

269,234

 

Proceeds from the sale of investments

 

70,596

 

 

 

19,802

 

Net unrealized (appreciation) depreciation on investments

 

(81,882

)

 

 

50,330

 

Net realized loss (gain) on investments

 

6,512

 

 

 

(7,108

)

Accretion of paid-in-kind principal

 

(4,990

)

 

 

(4,230

)

Accretion of loan discounts

 

(1,789

)

 

 

(2,345

)

Accretion of loan discount on convertible notes

 

336

 

 

 

336

 

Accretion of loan exit fees

 

(11,372

)

 

 

(12,692

)

Change in deferred loan origination revenue

 

14,846

 

 

 

3,664

 

Unearned fees related to unfunded commitments

 

(2,503

)

 

 

(688

)

Amortization of debt fees and issuance costs

 

3,840

 

 

 

2,489

 

Depreciation

 

187

 

 

 

222

 

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

 

5,163

 

 

 

4,208

 

Change in operating assets and liabilities:

 

 

 

 

Interest receivable

 

14

 

 

 

749

 

Other assets

 

1,978

 

 

 

(1,387

)

Accounts payable

 

 

 

 

(16

)

Accrued liabilities

 

(956

)

 

 

(2,488

)

Net cash used in operating activities

 

(12,185

)

 

 

(12,768

)

 

 

 

 

 

Cash flows used in investing activities:

 

 

 

Purchases of capital equipment

 

(12

)

 

 

(67

)

Net cash used in investing activities

 

(12

)

 

 

(67

)

 

 

 

 

 

Cash flows used in financing activities:

 

 

 

Issuance of common stock

 

 

 

 

73,856

 

Offering expenses

 

(198

)

 

 

(194

)

Retirement of employee shares

 

(1,362

)

 

 

(1,178

)

Distributions paid

 

(85,843

)

 

 

(78,755

)

Issuance of debt

 

590,495

 

 

 

445,288

 

Repayments of debt

 

(700,658

)

 

 

(467,957

)

Debt issuance costs

 

(553

)

 

 

(1,419

)

Fees paid for credit facilities and debentures

 

(3,093

)

 

 

(2,319

)

Net cash used in financing activities

 

(201,212

)

 

 

(32,678

)

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

 

(213,409

)

 

 

(45,513

)

Cash, cash equivalents, and restricted cash at beginning of period

 

237,622

 

 

 

114,996

 

Cash, cash equivalents, and restricted cash at end of period

$

24,213

 

 

$

69,483

 

 

 

 

 

 

Supplemental disclosures of cash flow information and non-cash investing and financing activities:

 

Interest paid

 

28,711

 

 

 

28,761

 

Income tax, including excise tax, paid

 

3,624

 

 

 

2,486

 

Distributions reinvested

$

2,110

 

 

$

1,470

 

 

(1)
Stock-based compensation includes $50 and $44 of restricted stock and option expense related to director compensation for the six months ended June 30, 2021 and 2020, respectively.

 

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:

 

 

For the Six Months Ended June 30,

 

(Dollars in thousands)

2021

 

 

2020

 

Cash and cash equivalents

$

18,447

 

 

$

35,884

 

Restricted cash

 

5,766

 

 

 

33,599

 

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

$

24,213

 

 

$

69,483

 

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

 

See notes to consolidated financial statements

 

7


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Cytracom Holdings LLC (11)(17)(18)

Communications & Networking

Senior Secured

February 2025

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%

 

$

7,000

 

 

$

6,837

 

 

$

7,000

 

Rocket Lab Global Services, LLC (16)

Communications & Networking

Senior Secured

June 2024

Interest rate PRIME + 4.90% or Floor rate of 8.15%, 3.25% Exit Fee

 

$

88,000

 

 

 

87,182

 

 

 

87,182

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

94,019

 

 

 

94,182

 

Subtotal: Communications & Networking (6.94%)*

 

 

 

 

 

 

 

 

94,019

 

 

 

94,182

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Grove Collaborative, Inc. (17)(19)

Consumer & Business Products

Senior Secured

April 2025

Interest rate PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee

 

$

9,800

 

 

 

9,572

 

 

 

9,572

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

9,572

 

 

 

9,572

 

Subtotal: Consumer & Business Products (0.71%)*

 

 

 

 

 

 

 

 

9,572

 

 

 

9,572

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Hercules Adviser LLC (7)

Diversified Financial Services

Unsecured

May 2023

Interest rate FIXED 5.00%

 

$

3,000

 

 

 

3,000

 

 

 

3,000

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

Diversified Financial Services

Unsecured

September 2026

Interest rate FIXED 14.50%

 

$

15,000

 

 

 

14,639

 

 

 

13,936

 

Diversified Financial Services

Unsecured

September 2026

Interest rate FIXED 11.50%

 

$

10,000

 

 

 

9,808

 

 

 

9,385

 

Total Gibraltar Business Capital, LLC

 

 

 

 

 

$

25,000

 

 

 

24,447

 

 

 

23,321

 

Subtotal: Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

24,447

 

 

 

23,321

 

Subtotal: Diversified Financial Services (1.94%)*

 

 

 

 

 

 

 

 

27,447

 

 

 

26,321

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Antares Pharma Inc. (10)(11)

Drug Delivery

Senior Secured

July 2022

Interest rate PRIME + 4.50% or Floor rate of 8.50%, 4.14% Exit Fee

 

$

25,000

 

 

 

26,442

 

 

 

26,576

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

26,442

 

 

 

26,576

 

Subtotal: Drug Delivery (1.96%)*

 

 

 

 

 

 

 

 

26,442

 

 

 

26,576

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Mesoblast (5)(10)(11)(13)

Drug Discovery & Development

Senior Secured

March 2022

Interest rate PRIME + 4.95% or Floor rate of 9.70%, 9.40% Exit Fee

 

$

50,000

 

 

 

53,968

 

 

 

53,968

 

Petros Pharmaceuticals, Inc. (p.k.a. Metuchen Pharmaceuticals LLC)

Drug Discovery & Development

Senior Secured

December 2021

Interest rate PRIME + 7.25% or Floor rate of 11.50%, 3.05% Exit Fee

 

$

3,425

 

 

 

3,422

 

 

 

3,422

 

Stealth Bio Therapeutics Corp. (10)(11)

Drug Discovery & Development

Senior Secured

January 2022

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 8.30% Exit Fee

 

$

5,456

 

 

 

5,686

 

 

 

5,686

 

TG Therapeutics, Inc. (10)(13)

Drug Discovery & Development

Senior Secured

March 2022

Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.25% Exit Fee

 

$

22,800

 

 

 

23,571

 

 

 

23,571

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

86,647

 

 

 

86,647

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Albireo Pharma, Inc. (10)(11)(17)

Drug Discovery & Development

Senior Secured

July 2024

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee

 

$

10,000

 

 

 

10,116

 

 

 

10,346

 

Aldeyra Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

October 2023

Interest rate PRIME + 3.10% or Floor rate of 8.60%, 6.95% Exit Fee

 

$

15,000

 

 

 

15,521

 

 

 

15,738

 

Applied Genetic Technologies Corporation (11)

Drug Discovery & Development

Senior Secured

April 2024

Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee

 

$

20,000

 

 

 

20,073

 

 

 

20,088

 

Aveo Pharmaceuticals, Inc. (11)(15)

Drug Discovery & Development

Senior Secured

September 2023

Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee

 

$

35,000

 

 

 

35,323

 

 

 

35,682

 

Axsome Therapeutics, Inc. (10)(13)(17)

Drug Discovery & Development

Senior Secured

October 2025

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 4.85% Exit Fee

 

$

50,000

 

 

 

49,417

 

 

 

51,562

 

Bicycle Therapeutics PLC (5)(10)(11)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee

 

$

24,000

 

 

 

24,091

 

 

 

24,059

 

BridgeBio Pharma LLC (12)(13)(16)(17)

Drug Discovery & Development

Senior Secured

May 2025

Interest rate PRIME + 4.40% or Floor rate of 7.65%, 5.54% Exit Fee

 

$

100,000

 

 

 

102,776

 

 

 

104,292

 

Century Therapeutics (11)

Drug Discovery & Development

Senior Secured

April 2024

Interest rate PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee

 

$

10,000

 

 

 

9,982

 

 

 

10,398

 

Chemocentryx, Inc. (10)(11)

Drug Discovery & Development

Senior Secured

December 2022

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

 

$

20,000

 

 

 

20,919

 

 

 

21,140

 

Drug Discovery & Development

Senior Secured

February 2024

Interest rate PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee

 

$

5,000

 

 

 

5,099

 

 

 

5,364

 

Total Chemocentryx, Inc.

 

 

 

 

 

$

25,000

 

 

 

26,018

 

 

 

26,504

 

 

 

See notes to consolidated financial statements

  

8


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(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)

 

Codiak Biosciences, Inc. (11)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 3.75% or Floor rate of 9.00%, 5.50% Exit Fee

 

$

25,000

 

 

$

25,304

 

 

$

25,361

 

G1 Therapeutics, Inc. (10)(11)(17)

Drug Discovery & Development

Senior Secured

June 2025

Interest rate PRIME + 6.20% or Floor rate of 9.45%, 6.95% Exit Fee

 

$

26,000

 

 

 

26,216

 

 

 

26,425

 

Geron Corporation (10)(13)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee

 

$

22,750

 

 

 

22,772

 

 

 

22,804

 

Hibercell, Inc. (15)

Drug Discovery & Development

Senior Secured

May 2025

Interest rate PRIME + 5.40% or Floor rate of 8.65%, 4.95% Exit Fee

 

$

17,000

 

 

 

16,897

 

 

 

16,897

 

Humanigen, Inc. (9)(10)

Drug Discovery & Development

Senior Secured

March 2025

Interest rate PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee

 

$

20,000

 

 

 

20,019

 

 

 

20,019

 

Kaleido Biosciences, Inc. (13)

Drug Discovery & Development

Senior Secured

January 2024

Interest rate PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee

 

$

22,500

 

 

 

23,203

 

 

 

23,251

 

Nabriva Therapeutics (5)(10)

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 4.30% or Floor rate of 9.80%, 9.95% Exit Fee

 

$

5,000

 

 

 

5,391

 

 

 

5,368

 

Scynexis, Inc.

Drug Discovery & Development

Senior Secured

March 2025

Interest rate PRIME + 5.80% or Floor rate of 9.05%, 3.95% Exit Fee

 

$

16,000

 

 

 

15,706

 

 

 

15,706

 

Seres Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

November 2023

Interest rate PRIME + 4.40% or Floor rate of 9.65%, 4.85% Exit Fee

 

$

25,000

 

 

 

25,474

 

 

 

26,293

 

Syndax Pharmaceutics Inc. (13)

Drug Discovery & Development

Senior Secured

September 2023

Interest rate PRIME + 5.10% or Floor rate of 9.85%, 4.99% Exit Fee

 

$

20,000

 

 

 

20,428

 

 

 

20,860

 

uniQure B.V. (5)(10)(11)(16)(17)

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 4.95% Exit Fee

 

$

35,000

 

 

 

35,871

 

 

 

36,140

 

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 5.00% or Floor rate of 8.25%, 4.85% Exit Fee

 

$

35,000

 

 

 

35,170

 

 

 

35,171

 

Total uniQure B.V.

 

 

 

 

 

$

70,000

 

 

 

71,041

 

 

 

71,311

 

Unity Biotechnology, Inc. (10)(11)

Drug Discovery & Development

Senior Secured

August 2024

Interest rate PRIME + 6.10% or Floor rate of 9.35%, 6.25% Exit Fee

 

$

25,000

 

 

 

25,204

 

 

 

25,974

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC) (11)

Drug Discovery & Development

Senior Secured

May 2024

Interest rate PRIME + 6.45% or Floor rate of 9.70%, 3.85% Exit Fee

 

$

11,500

 

 

 

11,416

 

 

 

11,485

 

X4 Pharmaceuticals, Inc. (11)(13)

Drug Discovery & Development

Senior Secured

July 2024

Interest rate PRIME + 3.75% or Floor rate of 8.75%, 8.80% Exit Fee

 

$

32,500

 

 

 

33,602

 

 

 

34,025

 

Yumanity Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

January 2024

Interest rate PRIME + 4.00% or Floor rate of 8.75%, 5.92% Exit Fee

 

$

15,000

 

 

 

15,298

 

 

 

15,415

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

651,288

 

 

 

659,863

 

Subtotal: Drug Discovery & Development (55.04%)*

 

 

 

 

 

 

 

 

737,935

 

 

 

746,510

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Carbon Health Technologies, Inc. (13)(17)(19)

Healthcare Services, Other

Senior Secured

March 2025

Interest rate PRIME + 5.60% or Floor rate of 8.85%, 3.95% Exit Fee

 

$

11,250

 

 

 

11,201

 

 

 

11,201

 

Equality Health, LLC (14)(17)

Healthcare Services, Other

Senior Secured

February 2026

Interest rate PRIME + 6.25% or Floor rate of 9.50%, PIK Interest 1.55%

 

$

35,166

 

 

 

34,825

 

 

 

34,825

 

The CM Group LLC (11)(17)

Healthcare Services, Other

Senior Secured

June 2024

Interest rate 1-month LIBOR + 9.35% or Floor rate of 10.35%

 

$

9,286

 

 

 

9,174

 

 

 

9,284

 

Healthcare Services, Other

Senior Secured

June 2024

Interest rate 3-month LIBOR + 9.35% or Floor rate of 10.35%

 

$

1,000

 

 

 

1,000

 

 

 

1,000

 

Total The CM Group LLC

 

 

 

 

 

$

10,286

 

 

 

10,174

 

 

 

10,284

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

56,200

 

 

 

56,310

 

Subtotal: Healthcare Services, Other (4.15%)*

 

 

 

 

 

 

 

 

56,200

 

 

 

56,310

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Planet Labs, Inc. (11)

Information Services

Senior Secured

June 2022

Interest rate PRIME + 5.50% or Floor rate of 11.00%, 3.00% Exit Fee

 

$

25,000

 

 

 

25,172

 

 

 

25,172

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

25,172

 

 

 

25,172

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Yipit, LLC (11)(17)(18)

Information Services

Senior Secured

May 2024

Interest rate 1-month LIBOR + 8.88% or Floor rate of 9.88%

 

$

11,970

 

 

 

11,781

 

 

 

11,970

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

11,781

 

 

 

11,970

 

Subtotal: Information Services (2.74%)*

 

 

 

 

 

 

 

 

36,953

 

 

 

37,142

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

EverFi, Inc. (13)(14)(16)

Internet Consumer & Business Services

Senior Secured

May 2022

Interest rate PRIME + 3.90% or Floor rate of 9.15%, PIK Interest 2.30%

 

$

85,063

 

 

 

84,561

 

 

 

84,561

 

Intent (p.k.a. Intent Media, Inc.) (8)(14)

Internet Consumer & Business Services

Senior Secured

September 2021

PIK Interest 10.13%, 1.20% Exit Fee

 

$

2,170

 

 

 

2,195

 

 

 

93

 

Nextroll, Inc. (14)(19)

Internet Consumer & Business Services

Senior Secured

June 2022

Interest rate PRIME + 3.75% or Floor rate of 7.00%, PIK Interest 2.95%, 3.50% Exit Fee

 

$

21,235

 

 

 

21,737

 

 

 

21,737

 

 

 

See notes to consolidated financial statements

   

9


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(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)

 

Snagajob.com, Inc. (13)

Internet Consumer & Business Services

Senior Secured

October 2021

Interest rate PRIME + 6.90% or Floor rate of 10.15%, 3.05% Exit Fee

 

$

43,005

 

 

$

43,950

 

 

$

43,325

 

Internet Consumer & Business Services

Senior Secured

October 2021

Interest rate PRIME + 7.80% or Floor rate of 11.05%, 3.05% Exit Fee

 

$

5,173

 

 

 

5,295

 

 

 

5,206

 

Total Snagajob.com, Inc.

 

 

 

 

 

$

48,178

 

 

 

49,245

 

 

 

48,531

 

Tectura Corporation (7)(8)(14)

Internet Consumer & Business Services

Senior Secured

May 2021

PIK Interest 5.00%

 

$

10,680

 

 

 

240

 

 

 

 

Internet Consumer & Business Services

Senior Secured

May 2021

Interest rate FIXED 8.25%

 

$

8,250

 

 

 

8,250

 

 

 

8,250

 

Internet Consumer & Business Services

Senior Secured

May 2021

PIK Interest 5.00%

 

$

13,023

 

 

 

13,023

 

 

 

124

 

Total Tectura Corporation

 

 

 

 

 

$

31,953

 

 

 

21,513

 

 

 

8,374

 

Xometry, Inc. (13)

Internet Consumer & Business Services

Senior Secured

May 2022

Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.25% Exit Fee

 

$

15,000

 

 

 

15,713

 

 

 

16,153

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

194,964

 

 

 

179,449

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

AppDirect, Inc. (11)(17)

Internet Consumer & Business Services

Senior Secured

August 2024

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 7.95% Exit Fee

 

$

30,790

 

 

 

31,050

 

 

 

31,768

 

ePayPolicy Holdings, LLC (11)(17)

Internet Consumer & Business Services

Senior Secured

December 2024

Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

8,190

 

 

 

8,008

 

 

 

8,019

 

Houzz, Inc. (9)(13)(14)(16)

Internet Consumer & Business Services

Senior Secured

November 2022

Interest rate PRIME + 3.20% or Floor rate of 8.45%, PIK Interest 2.50%, 4.50% Exit Fee

 

$

52,056

 

 

 

52,960

 

 

 

55,306

 

Landing Holdings Inc. (14)(15)

Internet Consumer & Business Services

Senior Secured

March 2023

Interest rate PRIME + 6.00% or Floor rate of 9.25%, PIK Interest 2.55%

 

$

10,061

 

 

 

9,884

 

 

 

9,884

 

Rhino Labs, Inc. (14)(15)(17)

Internet Consumer & Business Services

Senior Secured

March 2024

Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 2.25%

 

$

8,043

 

 

 

7,847

 

 

 

7,847

 

SeatGeek, Inc. (14)

Internet Consumer & Business Services

Senior Secured

June 2023

Interest rate PRIME + 5.00% or Floor rate of 10.50%, PIK Interest 0.50%

 

$

60,454

 

 

 

59,629

 

 

 

59,201

 

Skyword, Inc. (14)

Internet Consumer & Business Services

Senior Secured

September 2024

Interest rate PRIME + 3.88% or Floor rate of 9.38%, PIK Interest 1.90%, 4.00% Exit Fee

 

$

12,307

 

 

 

12,472

 

 

 

12,268

 

Thumbtack, Inc. (13)(14)

Internet Consumer & Business Services

Senior Secured

September 2023

Interest rate PRIME + 3.45% or Floor rate of 8.95%, PIK Interest 1.50%, 3.95% Exit Fee

 

$

25,423

 

 

 

25,521

 

 

 

26,025

 

Varsity Tutors LLC (13)(14)(17)

Internet Consumer & Business Services

Senior Secured

August 2023

Interest rate PRIME + 5.25% or Floor rate of 10.75%, PIK Interest 0.55%, 3.00% Exit Fee

 

$

39,374

 

 

 

39,792

 

 

 

41,331

 

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%

 

$

11,544

 

 

 

11,517

 

 

 

12,006

 

Worldremit Group Limited (5)(10)(16)(19)

Internet Consumer & Business Services

Senior Secured

February 2025

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%, 3.00% Exit Fee

 

$

96,750

 

 

 

95,005

 

 

 

95,005

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

353,685

 

 

 

358,660

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Houzz, Inc. (9)(13)(14)(16)

Internet Consumer & Business Services

Convertible Debt

May 2028

PIK Interest 5.50%

 

$

20,000

 

 

 

20,000

 

 

 

20,000

 

Subtotal: Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

20,000

 

 

 

20,000

 

Subtotal: Internet Consumer & Business Services (41.15%)*

 

 

 

 

 

 

 

 

568,649

 

 

 

558,109

 

Manufacturing Technology

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Velo3d, Inc. (17)(19)

Manufacturing Technology

Senior Secured

October 2023

Interest rate PRIME + 5.75% or Floor rate of 9.00%, 8.80% Exit Fee

 

$

5,357

 

 

 

5,321

 

 

 

5,321

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

5,321

 

 

 

5,321

 

Subtotal: Manufacturing Technology (0.39%)*

 

 

 

 

 

 

 

 

 

5,321

 

 

 

5,321

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Quanterix Corporation (11)

Medical Devices & Equipment

Senior Secured

October 2021

Interest rate PRIME + 2.75% or Floor rate of 8.00%, 0.96% Exit Fee

 

$

7,688

 

 

 

7,800

 

 

 

7,800

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

7,800

 

 

 

7,800

 

Subtotal: Medical Devices & Equipment (0.58%)*

 

 

 

 

 

 

 

 

7,800

 

 

 

7,800

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Regent Education (14)

Software

Senior Secured

January 2022

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

 

$

3,147

 

 

 

3,260

 

 

 

1,252

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

3,260

 

 

 

1,252

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3GTMS, LLC. (11)(18)

Software

Senior Secured

February 2025

Interest rate 3-Month LIBOR + 9.28% or Floor rate of 10.28%

 

$

11,667

 

 

 

11,453

 

 

 

11,500

 

Abrigo (18)

Software

Senior Secured

May 2023

Interest rate 3-month LIBOR + 7.88% or Floor rate of 8.88%

 

$

37,143

 

 

 

36,775

 

 

 

37,143

 

Software

Senior Secured

May 2023

Interest rate 3-month LIBOR + 5.96% or Floor rate of 6.96%

 

$

2,260

 

 

 

2,231

 

 

 

2,260

 

Total Abrigo

 

 

 

 

 

$

39,403

 

 

 

39,006

 

 

 

39,403

 

 

 

 

 

See notes to consolidated financial statements

   

10


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(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)

 

Bitsight Technologies, Inc. (13)(17)(19)

Software

Senior Secured

November 2025

Interest rate PRIME + 6.75% or Floor rate of 10.00%, 3.50% Exit Fee

 

$

12,500

 

 

$

12,333

 

 

$

12,619

 

Businessolver.com, Inc. (11)(17)

Software

Senior Secured

May 2023

Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%

 

$

41,300

 

 

 

40,876

 

 

 

41,300

 

Campaign Monitor Limited (11)(19)

Software

Senior Secured

November 2025

Interest rate 6-month LIBOR + 8.90% or Floor rate of 9.90%

 

$

33,000

 

 

 

32,402

 

 

 

33,000

 

Clarabridge, Inc. (12)(13)(14)(17)

Software

Senior Secured

May 2024

Interest rate PRIME + 5.30% or Floor rate of 8.55%, PIK Interest 2.25%

 

$

56,461

 

 

 

56,057

 

 

 

57,026

 

Cloud 9 Software (13)

Software

Senior Secured

April 2024

Interest rate 3-month LIBOR + 8.20% or Floor rate of 9.20%

 

$

10,000

 

 

 

9,885

 

 

 

10,000

 

CloudBolt Software Inc. (11)(19)

Software

Senior Secured

October 2024

Interest rate PRIME + 6.70% or Floor rate of 9.95%, 2.95% Exit Fee

 

$

10,000

 

 

 

9,833

 

 

 

9,945

 

Dashlane, Inc. (11)(14)(17)(19)

Software

Senior Secured

July 2025

Interest rate PRIME + 3.05% or Floor rate of 7.55%, PIK Interest 1.10%, 7.10% Exit Fee

 

$

20,603

 

 

 

21,421

 

 

 

21,421

 

Delphix Corp. (13)(19)

Software

Senior Secured

February 2023

Interest rate PRIME + 5.50% or Floor rate of 10.25%, 5.00% Exit Fee

 

$

60,000

 

 

 

60,795

 

 

 

61,853

 

Envisage Technologies, LLC (13)(18)

Software

Senior Secured

March 2025

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%

 

$

12,025

 

 

 

11,765

 

 

 

12,025

 

Esentire, Inc. (5)(10)(18)

Software

Senior Secured

May 2024

Interest rate 3-month LIBOR + 9.96% or Floor rate of 10.96%

 

$

21,000

 

 

 

20,644

 

 

 

20,644

 

ExtraHop Networks, Inc. (13)(19)

Software

Senior Secured

September 2023

Interest rate PRIME + 7.00% or Floor rate of 10.25%, 2.50% Exit Fee

 

$

15,000

 

 

 

14,893

 

 

 

15,917

 

FreedomPay, Inc. (13)(17)(19)

Software

Senior Secured

June 2023

Interest rate PRIME + 7.70% or Floor rate of 10.95%, 3.55% Exit Fee

 

$

10,000

 

 

 

10,060

 

 

 

10,219

 

Gryphon Networks Corp. (17)

Software

Senior Secured

January 2026

Interest rate 3-month LIBOR + 9.69% or Floor rate of 10.69%

 

$

5,232

 

 

 

5,093

 

 

 

5,093

 

Ikon Science Limited (5)(10)(11)(17)(18)

Software

Senior Secured

October 2024

Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%

 

$

7,000

 

 

 

6,775

 

 

 

7,000

 

Jolt Software, Inc. (14)

Software

Senior Secured

October 2022

Interest rate PRIME + 3.00% or Floor rate of 8.50%, PIK Interest 1.75%, 4.50% Exit Fee

 

$

7,706

 

 

 

7,859

 

 

 

7,975

 

Kazoo, Inc. (p.k.a. YouEarnedIt, Inc.) (11)(18)

Software

Senior Secured

July 2023

Interest rate 3-month LIBOR + 10.14% or Floor rate of 11.14%

 

$

8,650

 

 

 

8,431

 

 

 

8,382

 

Khoros (p.k.a Lithium Technologies) (11)(17)

Software

Senior Secured

October 2022

Interest rate 6-month LIBOR + 8.00% or Floor rate of 9.00%

 

$

55,000

 

 

 

54,390

 

 

 

55,000

 

Logicworks (13)(17)

Software

Senior Secured

January 2024

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

10,000

 

 

 

9,830

 

 

 

9,922

 

Mixpanel, Inc. (14)(19)

Software

Senior Secured

August 2024

Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.80%, 3.00% Exit Fee

 

$

20,245

 

 

 

20,024

 

 

 

20,676

 

Mobile Solutions Services (11)(17)(18)

Software

Senior Secured

December 2025

Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%

 

$

18,650

 

 

 

18,101

 

 

 

18,282

 

Nuvolo Technologies Corporation (13)(19)

Software

Senior Secured

July 2025

Interest rate PRIME + 7.70% or Floor rate of 10.95%, 1.75% Exit Fee

 

$

15,000

 

 

 

14,919

 

 

 

14,918

 

Pollen, Inc. (14)(17)

Software

Senior Secured

November 2023

Interest rate PRIME + 4.75% or Floor rate of 8.00%, PIK Interest 0.50%, 4.50% Exit Fee

 

$

7,439

 

 

 

7,445

 

 

 

7,593

 

Pymetrics, Inc (14)

Software

Senior Secured

October 2022

Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.75%, 4.00% Exit Fee

 

$

9,581

 

 

 

9,621

 

 

 

9,560

 

Reltio, Inc. (13)(14)(19)

Software

Senior Secured

July 2023

Interest rate PRIME + 5.70% or Floor rate of 8.95%, PIK Interest 1.70%, 4.95% Exit Fee

 

$

10,160

 

 

 

10,127

 

 

 

10,402

 

Tact.ai Technologies, Inc. (11)(14)

Software

Senior Secured

February 2023

Interest rate PRIME + 4.00% or Floor rate of 8.75%, PIK Interest 2.00%, 5.50% Exit Fee

 

$

5,133

 

 

 

5,168

 

 

 

5,195

 

ThreatConnect, Inc. (13)(17)(18)

Software

Senior Secured

May 2026

Interest rate 3-month LIBOR + 8.26% or Floor rate of 9.26%

 

$

11,200

 

 

 

10,857

 

 

 

10,857

 

Udacity, Inc. (14)(17)

Software

Senior Secured

September 2024

Interest rate PRIME + 4.50% or Floor rate of 7.75%, PIK Interest 2.00%, 3.00% Exit Fee

 

$

35,487

 

 

 

35,229

 

 

 

36,504

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

575,292

 

 

 

584,231

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Imperva, Inc. (19)

Software

Senior Secured

January 2027

Interest rate 3-month LIBOR + 7.75% or Floor rate of 8.75%

 

$

20,000

 

 

 

19,839

 

 

 

19,810

 

Subtotal: Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

19,839

 

 

 

19,810

 

Subtotal: Software (44.63%)*

 

 

 

 

 

 

 

 

598,391

 

 

 

605,293

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Pineapple Energy LLC (6)(8)(9)(17)

Sustainable and Renewable Technology

Convertible Debt

January 2022

Interest rate FIXED 10.00%

 

$

40

 

 

 

40

 

 

 

40

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

40

 

 

 

40

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc. (12)(13)

Sustainable and Renewable Technology

Senior Secured

July 2022

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

 

$

27,211

 

 

 

31,194

 

 

 

31,328

 

 

 

 

See notes to consolidated financial statements

   

11


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(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)

 

Pineapple Energy LLC (6)(8)(9)(17)

Sustainable and Renewable Technology

Senior Secured

December 2023

PIK Interest 10.00%

 

$

7,500

 

 

$

7,500

 

 

$

7,500

 

Pivot Bio, Inc. (14)(15)

Sustainable and Renewable Technology

Senior Secured

April 2024

Interest rate PRIME + 4.90% or Floor rate of 8.15%, PIK Interest 1.25%, 3.25% Exit Fee

 

$

31,583

 

 

 

31,372

 

 

 

31,372

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

70,066

 

 

 

70,200

 

Subtotal: Sustainable and Renewable Technology (5.18%)*

 

 

 

 

 

 

 

 

70,106

 

 

 

70,240

 

Total: Debt Investments (165.40%)*

 

 

 

 

 

 

 

$

2,238,835

 

 

$

2,243,376

 

 

 

See notes to consolidated financial statements

   

12


 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment 
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Equity

 

Common Stock

 

 

3,328

 

 

$

 

 

$

10

 

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,135,000

 

 

 

1,230

 

 

 

4,891

 

Total Peerless Network Holdings, Inc.

 

 

 

 

 

 

 

 

1,138,328

 

 

 

1,230

 

 

 

4,901

 

Subtotal: Communications & Networking (0.36%)*

 

 

 

 

1,230

 

 

 

4,901

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TechStyle, Inc. (p.k.a. Just Fabulous, Inc.)

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

42,989

 

 

 

128

 

 

 

429

 

Subtotal: Consumer & Business Products (0.03%)*

 

 

 

 

128

 

 

 

429

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

Diversified Financial Services

 

Equity

 

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

1,404

 

 

Diversified Financial Services

 

Equity

 

Preferred Series A

 

 

10,602,752

 

 

 

26,122

 

 

 

19,469

 

Total Gibraltar Business Capital, LLC

 

 

 

 

 

 

 

 

11,432,752

 

 

 

28,006

 

 

 

20,873

 

Hercules Adviser LLC (7)

 

Diversified Financial Services

 

Equity

 

Member Units

 

 

 

 

 

35

 

 

 

10,923

 

Subtotal: Diversified Financial Services (2.34%)*

 

 

 

 

28,041

 

 

 

31,796

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

176,730

 

 

 

1,329

 

 

 

244

 

Aytu BioScience, Inc. (p.k.a. Neos Therapeutics, Inc.) (4)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

13,600

 

 

 

1,500

 

 

 

68

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

175

 

Kaleo, Inc.

 

Drug Delivery

 

Equity

 

Preferred Series B

 

 

82,500

 

 

 

1,007

 

 

 

1,946

 

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

 

Drug Delivery

 

Equity

 

Common Stock

 

 

2,498

 

 

 

309

 

 

 

31

 

Subtotal: Drug Delivery (0.18%)*

 

 

 

 

4,645

 

 

 

2,464

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albireo Pharma, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

25,000

 

 

 

1,000

 

 

 

880

 

Applied Molecular Transport (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

1,000

 

 

 

42

 

 

 

46

 

Aveo Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

190,179

 

 

 

1,715

 

 

 

1,253

 

Bicycle Therapeutics PLC (4)(5)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

98,100

 

 

 

1,871

 

 

 

2,978

 

BridgeBio Pharma LLC (4)(16)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

231,329

 

 

 

2,255

 

 

 

14,101

 

Cerecor, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

389

 

Chemocentryx, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

17,241

 

 

 

1,000

 

 

 

231

 

Concert Pharmaceuticals, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,796

 

 

 

1,367

 

 

 

299

 

Dare Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

26

 

Dynavax Technologies (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

197

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

27,933

 

 

 

2,000

 

 

 

65

 

Hibercell, Inc. (15)

 

Drug Discovery & Development

 

Equity

 

Preferred Series B

 

 

3,466,840

 

 

 

4,250

 

 

 

4,481

 

Humanigen, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

43,243

 

 

 

800

 

 

 

752

 

Kaleido Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

86,585

 

 

 

1,000

 

 

 

644

 

Paratek Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

522

 

Rocket Pharmaceuticals, Ltd. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

944

 

 

 

1,500

 

 

 

42

 

Savara, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

11,119

 

 

 

203

 

 

 

19

 

Sio Gene Therapies, Inc. (p.k.a. Axovant Gene Therapies Ltd.) (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

16,228

 

 

 

1,269

 

 

 

44

 

Tricida, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

68,816

 

 

 

863

 

 

 

297

 

uniQure B.V. (4)(5)(10)(16)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

17,175

 

 

 

332

 

 

 

529

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)

 

Drug Discovery & Development

 

Equity

 

Preferred Series B

 

 

510,308

 

 

 

3,000

 

 

 

5,461

 

X4 Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

198,277

 

 

 

1,641

 

 

 

1,289

 

Subtotal: Drug Discovery & Development (2.55%)*

 

 

 

 

31,402

 

 

 

34,545

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23andMe, Inc. (4)

 

Healthcare Services, Other

 

Equity

 

Common Stock

 

 

828,360

 

 

 

5,094

 

 

 

9,684

 

Carbon Health Technologies, Inc.

 

Healthcare Services, Other

 

Equity

 

Preferred Series C

 

 

217,880

 

 

 

1,687

 

 

 

1,964

 

Subtotal: Healthcare Services, Other (0.86%)*

 

 

 

 

6,781

 

 

 

11,648

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zeta Global Corp. (4)(20)

 

Information Services

 

Equity

 

Common Stock

 

 

295,861

 

 

 

 

 

 

1,926

 

Subtotal: Information Services (0.14%)*

 

 

 

 

 

 

 

1,926

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Crow AI, Inc. (6)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series Seed

 

 

872,797

 

 

 

1,000

 

 

 

1,309

 

Black Crow AI, Inc. affiliates(21)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Note

 

 

3

 

 

 

3,000

 

 

 

3,000

 

Brigade Group, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

9,023

 

 

 

93

 

 

 

 

Contentful Global, Inc. (p.k.a. Contentful, Inc.) (5)(10)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

41,000

 

 

 

138

 

 

 

582

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

108,500

 

 

 

500

 

 

 

1,585

 

Total Contentful Global, Inc. (p.k.a. Contentful, Inc.)

 

 

 

 

 

 

 

 

149,500

 

 

 

638

 

 

 

2,167

 

 

 

See notes to consolidated financial statements

  

13


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

 

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment 
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

DoorDash, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

200,000

 

 

$

2,305

 

 

$

35,666

 

Lyft, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

100,738

 

 

 

5,263

 

 

 

6,093

 

Nextdoor.com, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

328,190

 

 

 

4,854

 

 

 

9,997

 

OfferUp, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,863

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

708

 

Total OfferUp, Inc.

 

 

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

2,571

 

Oportun (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

48,365

 

 

 

578

 

 

 

968

 

Reischling Press, Inc. (p.k.a. Blurb, Inc.)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

1,163

 

 

 

15

 

 

 

 

Savage X Holding, LLC

 

Internet Consumer & Business Services

 

Equity

 

Class A Units

 

 

42,137

 

 

 

13

 

 

 

106

 

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

 

 

 

 

TFG Holding, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

42,989

 

 

 

89

 

 

 

303

 

Uber Technologies, Inc. (p.k.a. Postmates, Inc.) (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

32,991

 

 

 

317

 

 

 

1,653

 

Subtotal: Internet Consumer & Business Services (4.71%)*

 

 

 

 

21,360

 

 

 

63,833

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

 

Gelesis, Inc.

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

227,013

 

 

 

 

 

 

903

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

243,432

 

 

 

502

 

 

 

1,016

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

778

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

662,071

 

 

 

1,002

 

 

 

2,697

 

Medrobotics Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ViewRay, Inc. (4)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

36,457

 

 

 

333

 

 

 

241

 

Subtotal: Medical Devices & Equipment (0.22%)*

 

 

 

 

3,740

 

 

 

2,938

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

90

 

Docker, Inc.

 

Software

 

Equity

 

Common Stock

 

 

20,000

 

 

 

4,284

 

 

 

58

 

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

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

1,680

 

 

Software

 

Equity

 

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

392

 

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

 

 

 

 

 

 

 

 

552,461

 

 

 

1,300

 

 

 

2,072

 

HighRoads, Inc.

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

Lightbend, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

384,616

 

 

 

265

 

 

 

98

 

Palantir Technologies (4)

 

Software

 

Equity

 

Common Stock

 

 

1,668,337

 

 

 

10,198

 

 

 

43,978

 

SingleStore, Inc. (p.k.a. memsql, Inc.)

 

Software

 

Equity

 

Preferred Series E

 

 

580,983

 

 

 

2,000

 

 

 

1,911

 

Sprinklr, Inc. (4)(20)

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

10,948

 

Subtotal: Software (4.36%)*

 

 

 

 

22,154

 

 

 

59,155

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

18

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

55

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

175

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

271

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

1,523,693

 

 

 

118

 

 

 

209

 

 

Surgical Devices

 

Equity

 

Preferred Series F-1

 

 

2,418,125

 

 

 

150

 

 

 

303

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

9,595,178

 

 

 

1,941

 

 

 

1,031

 

Subtotal: Surgical Devices (0.08%)*

 

 

 

 

1,941

 

 

 

1,031

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series E-1

 

 

188,611

 

 

 

2,000

 

 

 

2,032

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series A-1

 

 

103,584

 

 

 

500

 

 

 

 

NantEnergy LLC (p.k.a. NantEnergy, Inc.)

 

Sustainable and Renewable Technology

 

Equity

 

Common Units

 

 

59,665

 

 

 

102

 

 

 

 

Pineapple Energy LLC (6)

 

Sustainable and Renewable Technology

 

Equity

 

Class A Units

 

 

17,647

 

 

 

4,767

 

 

 

901

 

 

 

See notes to consolidated financial statements

  

14


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment 
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Proterra, Inc. (4)

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

455,890

 

 

$

543

 

 

$

7,801

 

Pivot Bio, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series D

 

 

59,307

 

 

 

4,500

 

 

 

4,500

 

Subtotal: Sustainable and Renewable Technology (1.12%)*

 

 

 

 

12,412

 

 

 

15,234

 

Total: Equity Investments (16.95%)*

 

 

 

 

 

 

 

 

 

 

$

133,834

 

 

$

229,900

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.00%)*

 

 

 

 

418

 

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Penumbra Brands, LLC (p.k.a. Gadget Guard)

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

Grove Collaborative, Inc.

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

83,625

 

 

 

433

 

 

 

395

 

TechStyle, Inc. (p.k.a. Just Fabulous, Inc.)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

206,185

 

 

 

1,101

 

 

 

2,115

 

The Neat Company

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

54,054

 

 

 

365

 

 

 

 

Whoop, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

68,627

 

 

 

18

 

 

 

940

 

Subtotal: Consumer & Business Products (0.25%)*

 

 

 

 

2,145

 

 

 

3,450

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerami Therapeutics (p.k.a. Dance Biopharm, Inc.)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

46

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

3,929

 

 

 

390

 

 

 

2

 

Subtotal: Drug Delivery (0.00%)*

 

 

 

 

465

 

 

 

48

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (4)(5)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

201,330

 

 

 

304

 

 

 

43

 

ADMA Biologics, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

 

Albireo Pharma, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

5,311

 

 

 

61

 

 

 

85

 

Axsome Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

15,541

 

 

 

681

 

 

 

394

 

Brickell Biotech, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,005

 

 

 

119

 

 

 

 

Century Therapeutics (4)

 

Drug Discovery & Development

 

Warrant

 

Common Units

 

 

16,112

 

 

 

37

 

 

 

202

 

Concert Pharmaceuticals, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

61,273

 

 

 

178

 

 

 

11

 

Dermavant Sciences Ltd. (10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

223,642

 

 

 

101

 

 

 

460

 

Evofem Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,806

 

 

 

266

 

 

 

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

41,176

 

 

 

165

 

 

 

7

 

Motif Bio PLC (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

121,337,041

 

 

 

282

 

 

 

 

Myovant Sciences, Ltd. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,710

 

 

 

460

 

 

 

753

 

Paratek Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

469,388

 

 

 

643

 

 

 

1,110

 

Stealth Bio Therapeutics Corp. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

500,000

 

 

 

158

 

 

 

1

 

Scynexis, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

60,591

 

 

 

188

 

 

 

193

 

TG Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

147,058

 

 

 

564

 

 

 

3,843

 

Tricida, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

31,352

 

 

 

281

 

 

 

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)

 

Drug Discovery & Development

 

Warrant

 

Common Units

 

 

102,216

 

 

 

257

 

 

 

492

 

X4 Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

108,334

 

 

 

672

 

 

 

78

 

Yumanity Therapeutics, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

15,414

 

 

 

110

 

 

 

51

 

Subtotal: Drug Discovery & Development (0.57%)*

 

 

 

 

5,822

 

 

 

7,723

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 Devices, Inc. (4)

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

49,078

 

 

 

101

 

 

 

1,090

 

Subtotal: Electronics & Computer Hardware (0.08%)*

 

 

 

 

101

 

 

 

1,090

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InMobi Inc. (10)

 

Information Services

 

Warrant

 

Common Stock

 

 

65,587

 

 

 

82

 

 

 

 

Netbase Solutions, Inc.

 

Information Services

 

Warrant

 

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

529

 

Planet Labs, Inc.

 

Information Services

 

Warrant

 

Common Stock

 

 

357,752

 

 

 

615

 

 

 

4,119

 

Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.)

 

Information Services

 

Warrant

 

Common Stock

 

 

2,812,500

 

 

 

283

 

 

 

885

 

Subtotal: Information Services (0.41%)*

 

 

 

 

1,336

 

 

 

5,533

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

231,535

 

 

 

73

 

 

 

 

Cloudpay, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

6,763

 

 

 

54

 

 

 

213

 

First Insight, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

75,917

 

 

 

96

 

 

 

81

 

Houzz, Inc. (16)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

529,661

 

 

 

20

 

 

 

236

 

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

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

 

Interactions Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G-3

 

 

68,187

 

 

 

204

 

 

 

526

 

Landing Holdings Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

11,806

 

 

 

116

 

 

 

108

 

 

 

See notes to consolidated financial statements

  

15


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment 
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Lendio, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

127,032

 

 

$

39

 

 

$

83

 

LogicSource

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

149

 

Rhino Labs, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

13,106

 

 

 

470

 

 

 

305

 

RumbleON, Inc. (4)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

5,139

 

 

 

87

 

 

 

37

 

SeatGeek, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

1,379,761

 

 

 

843

 

 

 

654

 

ShareThis, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

 

Skyword, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

444,444

 

 

 

83

 

 

 

30

 

Snagajob.com, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

600,000

 

 

 

16

 

 

 

55

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

1,800,000

 

 

 

782

 

 

 

55

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

1,211,537

 

 

 

62

 

 

 

25

 

Total Snagajob.com, Inc.

 

 

 

 

 

 

 

 

3,611,537

 

 

 

860

 

 

 

135

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

280

 

The Faction Group LLC

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series AA

 

 

8,076

 

 

 

234

 

 

 

915

 

Thumbtack, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

190,953

 

 

 

553

 

 

 

1,098

 

Worldremit Group Limited (5)(10)(16)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

77,215

 

 

 

129

 

 

 

137

 

Xometry, Inc. (4)(20)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

87,784

 

 

 

47

 

 

 

3,611

 

Subtotal: Internet Consumer & Business Services (0.63%)*

 

 

 

 

4,969

 

 

 

8,598

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

 

Subtotal: Media/Content/Info (0.00%)*

 

 

 

 

348

 

 

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

22,572

 

 

 

455

 

 

 

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series BB

 

 

725,806

 

 

 

351

 

 

 

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

 

 

881,131

 

 

 

713

 

 

 

 

Intuity Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B-1

 

 

3,076,323

 

 

 

294

 

 

 

455

 

Medrobotics Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

 

Outset Medical, Inc. (4)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

62,794

 

 

 

402

 

 

 

1,979

 

SonaCare Medical, LLC

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Tela Bio, Inc. (4)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

15,712

 

 

 

61

 

 

 

14

 

Subtotal: Medical Devices & Equipment (0.18%)*

 

 

 

 

 

2,483

 

 

 

2,448

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

1,185

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

3,190

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

 

 

1,110,000

 

 

 

259

 

 

 

4,375

 

Subtotal: Semiconductors (0.32%)*

 

 

 

 

259

 

 

 

4,375

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitsight Technologies, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

29,691

 

 

 

284

 

 

 

598

 

CloudBolt Software, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

211,342

 

 

 

117

 

 

 

147

 

Cloudian, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

477,454

 

 

 

72

 

 

 

84

 

Couchbase, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

105,350

 

 

 

462

 

 

 

749

 

Dashlane, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

560,536

 

 

 

405

 

 

 

377

 

Delphix Corp.

 

Software

 

Warrant

 

Common Stock

 

 

718,898

 

 

 

1,593

 

 

 

3,351

 

DNAnexus, Inc.

 

Software

 

Warrant

 

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

87

 

Evernote Corporation

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

57

 

ExtraHop Networks, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

154,784

 

 

 

191

 

 

 

1,253

 

Fuze, Inc.

 

Software

 

Warrant

 

Preferred Series F

 

 

256,158

 

 

 

89

 

 

 

 

Lightbend, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

854,787

 

 

 

130

 

 

 

74

 

Mixpanel, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

82,362

 

 

 

252

 

 

 

554

 

Nuvolo Technologies Corporation

 

Software

 

Warrant

 

Common Stock

 

 

50,000

 

 

 

88

 

 

 

440

 

OneLogin, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

381,620

 

 

 

305

 

 

 

826

 

Poplicus, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

132,168

 

 

 

 

 

 

 

Pymetrics, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

150,943

 

 

 

77

 

 

 

171

 

RapidMiner, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

51

 

Reltio, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

69,120

 

 

 

215

 

 

 

268

 

Signpost, Inc.

 

Software

 

Warrant

 

Series Junior 1 Preferred

 

 

474,019

 

 

 

314

 

 

 

 

 

 

See notes to consolidated financial statements

  

16


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment 
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

SingleStore, Inc. (p.k.a. memsql, Inc.)

 

Software

 

Warrant

 

Preferred Series D

 

 

312,596

 

 

$

103

 

 

$

633

 

Tact.ai Technologies, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

1,041,667

 

 

 

206

 

 

 

546

 

Udacity, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

486,359

 

 

 

218

 

 

 

510

 

ZeroFox, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

648,350

 

 

 

100

 

 

 

341

 

Subtotal: Software (0.82%)*

 

 

 

 

5,448

 

 

 

11,117

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (4)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

30,581

 

 

 

132

 

 

 

45

 

Subtotal: Specialty Pharmaceuticals (0.00%)*

 

 

 

 

132

 

 

 

45

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

151,123

 

 

 

67

 

 

 

14

 

TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)

 

Surgical Devices

 

Warrant

 

Common Stock

 

 

64,440

 

 

 

139

 

 

 

1,107

 

Subtotal: Surgical Devices (0.08%)*

 

 

 

 

206

 

 

 

1,121

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

471,327

 

 

 

120

 

 

 

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

922

 

Halio, Inc. (p.k.a. Kinestral Technologies, Inc.)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

325,000

 

 

 

155

 

 

 

184

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

61

 

Total Halio, Inc. (p.k.a. Kinestral Technologies, Inc.)

 

 

 

 

 

 

 

 

456,883

 

 

 

218

 

 

 

245

 

Polyera Corporation

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

311,609

 

 

 

337

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.09%)*

 

 

 

 

950

 

 

 

1,167

 

Total: Warrant Investments (3.44%)*

 

 

 

 

 

 

 

 

 

 

$

25,082

 

 

$

46,715

 

Total: Investments in Securities (185.79%)*

 

 

 

 

 

 

 

 

 

 

$

2,397,751

 

 

$

2,519,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Funds & Vehicles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forbion Growth Opportunities Fund I C.V. (5)(10)(17)

 

Drug Discovery & Development

 

Investment Funds & Vehicles

 

 

 

 

 

 

1,223

 

 

 

1,099

 

Total: Investments in Investment Funds & Vehicles (0.08%)*

 

 

 

 

$

1,223

 

 

$

1,099

 

Total: Investments (185.87%)*

 

 

 

 

 

 

 

 

 

 

$

2,398,974

 

 

$

2,521,090

 

 

 

 

* 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 3.25% as of June 30, 2021. 1-month LIBOR, 3-month LIBOR and 6-month LIBOR represent 0.10%, 0.15%, and 0.16%, respectively, as of June 30, 2021.
(3)
Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $190.4 million, $66.5 million and $123.9 million, respectively. The tax cost of investments is $2.5 billion.
(4)
Except for warrants in 26 publicly traded companies and common stock in 33 publicly traded companies, all investments are restricted as of June 30, 2021 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”). 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 as of June 30, 2021, and is therefore considered non-income producing. Note that as of June 30, 2021, only the PIK, or payment-in-kind, portion 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 2027 Asset-Backed Notes or 2028 Asset-Backed Notes (as defined in Note 5).
(12)
Denotes that all or a portion of the debt investment is pledged as collateral under the Wells Facility (as defined in Note 5).
(13)
Denotes that all or a portion of the debt investment is pledged as collateral under the Union Bank Facility (as defined in Note 5).
(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 Capital IV, L.P., the Company’s wholly owned small business investment company.
(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 net assets as of June 30, 2021.
(17)
Denotes that there is an unfunded contractual commitment available at the request of this portfolio company as of June 30, 2021. Refer to “Note 11 - Commitments and Contingencies”.
(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.
(20)
Denotes all or a portion of the public equity or warrant investment was acquired in a transaction exempt from registration under the Securities Act of 1933 (“Securities Act”) and may be deemed to be “restricted securities” under the Securities Act. As of June 30, 2021, the aggregate fair value of these securities is $16,485, or 1.22% of the Company’s net assets.
(21)
Denotes investment in a non-voting security in the form of a promissory note. The terms of the notes provide the Company with a lien on the issuers' shares of Common Stock in portfolio company Black Crow AI, Inc., subject to release upon repayment of the outstanding balance of the notes. As of June 30, 2021, the Black Crow AI, Inc. affiliates promissory notes had an outstanding balance of $3.0 million.

 

See notes to consolidated financial statements

  

17


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(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

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

Cytracom Holdings LLC (11)(17)(18)

Communications & Networking

Senior Secured

February 2025

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%

$

7,000

 

$

6,819

 

$

6,955

 

Subtotal: 1-5 Years Maturity

 

 

6,819

 

 

6,955

 

Subtotal: Communications & Networking (0.59%)*

 

 

6,819

 

 

6,955

 

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

 

 

14,838

 

 

14,970

 

Subtotal: 1-5 Years Maturity

 

 

14,838

 

 

14,970

 

Subtotal: Diversified Financial Services (1.28%)*

 

 

14,838

 

 

14,970

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

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 4.50%, 4.14% Exit Fee

$

40,000

 

 

41,104

 

 

41,242

 

Subtotal: 1-5 Years Maturity

 

 

41,104

 

 

41,242

 

Subtotal: Drug Delivery (3.52%)*

 

 

41,104

 

 

41,242

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Genocea Biosciences, Inc. (11)

Drug Discovery & Development

Senior Secured

May 2021

Interest rate PRIME + 3.00% or Floor rate of 8.00%, 5.90% Exit Fee

$

12,922

 

 

13,892

 

 

13,892

 

Petros Pharmaceuticals, Inc. (p.k.a. Metuchen Pharmaceuticals LLC)

Drug Discovery & Development

Senior Secured

December 2021

Interest rate PRIME + 7.25% or Floor rate of 11.50%, 3.05% Exit Fee

$

6,653

 

 

7,167

 

 

7,156

 

Stealth Bio Therapeutics Corp. (10)(11)

Drug Discovery & Development

Senior Secured

July 2021

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 7.69% Exit Fee

$

9,027

 

 

10,463

 

 

10,463

 

Subtotal: Under 1 Year Maturity

 

 

31,522

 

 

31,511

 

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

$

5,452

 

 

5,775

 

 

5,754

 

Albireo Pharma, Inc. (10)(11)

Drug Discovery & Development

Senior Secured

July 2024

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee

$

10,000

 

 

9,995

 

 

10,106

 

Aldeyra Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

October 2023

Interest rate PRIME + 3.10% or Floor rate of 9.10%, 6.95% Exit Fee

$

15,000

 

 

15,349

 

 

15,623

 

Applied Genetic Technologies Corporation (11)

Drug Discovery & Development

Senior Secured

December 2023

Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee

$

10,000

 

 

10,025

 

 

10,163

 

Aveo Pharmaceuticals, Inc. (11)

Drug Discovery & Development

Senior Secured

September 2023

Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee

$

15,000

 

 

15,069

 

 

15,069

 

Axsome Therapeutics, Inc. (10)(17)

Drug Discovery & Development

Senior Secured

October 2025

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 4.85% Exit Fee

$

50,000

 

 

49,023

 

 

49,023

 

Bicycle Therapeutics PLC (5)(10)(11)(17)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee

$

15,000

 

 

14,984

 

 

14,984

 

BridgeBio Pharma LLC (12)(13)(16)

Drug Discovery & Development

Senior Secured

November 2023

Interest rate PRIME + 3.85% or Floor rate of 8.75%, 6.35% Exit Fee

$

35,000

 

 

36,163

 

 

36,930

 

Drug Discovery & Development

Senior Secured

November 2023

Interest rate PRIME + 2.85% or Floor rate of 8.60%, 5.75% Exit Fee

$

20,000

 

 

20,541

 

 

20,977

 

Drug Discovery & Development

Senior Secured

November 2023

Interest rate PRIME + 3.10% or Floor rate of 8.85%, 5.75% Exit Fee

$

20,000

 

 

20,400

 

 

20,822

 

Total BridgeBio Pharma LLC

 

 

 

 

$

75,000

 

 

77,104

 

 

78,729

 

Century Therapeutics (11)

Drug Discovery & Development

Senior Secured

April 2024

Interest rate PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee

$

10,000

 

 

9,897

 

 

9,897

 

Chemocentryx, Inc. (10)(11)(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

 

 

20,704

 

 

21,031

 

Drug Discovery & Development

Senior Secured

February 2024

Interest rate PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee

$

5,000

 

 

5,039

 

 

5,332

 

Total Chemocentryx, Inc.

 

 

 

 

$

25,000

 

 

25,743

 

 

26,363

 

Codiak Biosciences, Inc. (11)(17)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 3.75% or Floor rate of 9.00%, 5.50% Exit Fee

$

25,000

 

 

25,099

 

 

25,223

 

Dermavant Sciences Ltd. (10)(13)

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 4.45% or Floor rate of 9.95%, 6.95% Exit Fee

$

20,000

 

 

20,615

 

 

20,553

 

Eidos Therapeutics, Inc. (10)(13)

Drug Discovery & Development

Senior Secured

October 2023

Interest rate PRIME + 3.25% or Floor rate of 8.50%, 5.95% Exit Fee

$

8,750

 

 

8,905

 

 

9,182

 

G1 Therapeutics, Inc. (10)(11)(17)

Drug Discovery & Development

Senior Secured

June 2024

Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee

$

20,000

 

 

20,053

 

 

20,404

 

Geron Corporation (10)(17)

Drug Discovery & Development

Senior Secured

October 2024

Interest rate PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee

$

16,250

 

 

16,158

 

 

16,158

 

Kaleido Biosciences, Inc. (13)

Drug Discovery & Development

Senior Secured

January 2024

Interest rate PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee

$

22,500

 

 

22,916

 

 

23,135

 

Mesoblast (5)(10)(11)(13)

Drug Discovery & Development

Senior Secured

March 2022

Interest rate PRIME + 4.95% or Floor rate of 9.70%, 8.70% Exit Fee

$

50,000

 

 

53,043

 

 

53,086

 

Nabriva Therapeutics (5)(10)

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 4.30% or Floor rate of 9.80%, 7.01% Exit Fee

$

5,000

 

 

5,259

 

 

5,251

 

Seres Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

November 2023

Interest rate PRIME + 4.40% or Floor rate of 9.65%, 4.85% Exit Fee

$

25,000

 

 

25,238

 

 

25,990

 

 

See notes to consolidated financial statements

  

18


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

 

Portfolio Company

Sub-Industry

Type of
Investment 
(1)

Maturity
Date

Interest Rate and Floor (2)

Principal
Amount

 

Cost (3)

 

Value (4)

 

Syndax Pharmaceutics Inc. (13)

Drug Discovery & Development

Senior Secured

September 2023

Interest rate PRIME + 5.10% or Floor rate of 9.85%, 4.99% Exit Fee

$

20,000

 

$

20,221

 

$

20,582

 

TG Therapeutics, Inc. (10)(13)

Drug Discovery & Development

Senior Secured

March 2022

Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.25% Exit Fee

$

30,000

 

 

30,423

 

 

30,820

 

Tricida, Inc. (11)(13)(15)(16)

Drug Discovery & Development

Senior Secured

April 2023

Interest rate PRIME + 2.35% or Floor rate of 8.35%, 11.04% Exit Fee

$

75,000

 

 

78,266

 

 

79,452

 

uniQure B.V. (5)(10)(11)

Drug Discovery & Development

Senior Secured

June 2023

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 4.95% Exit Fee

$

35,000

 

 

35,660

 

 

36,849

 

Unity Biotechnology, Inc. (10)

Drug Discovery & Development

Senior Secured

August 2024

Interest rate PRIME + 6.10% or Floor rate of 9.35%, 6.25% Exit Fee

$

25,000

 

 

24,938

 

 

24,938

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC) (11)

Drug Discovery & Development

Senior Secured

May 2024

Interest rate PRIME + 6.45% or Floor rate of 9.70%, 3.85% Exit Fee

$

11,500

 

 

11,279

 

 

11,394

 

X4 Pharmaceuticals, Inc. (11)

Drug Discovery & Development

Senior Secured

July 2024

Interest rate PRIME + 3.75% or Floor rate of 8.75%, 8.80% Exit Fee

$

32,500

 

 

33,082

 

 

33,097

 

Yumanity Therapeutics, Inc. (11)

Drug Discovery & Development

Senior Secured

January 2024

Interest rate PRIME + 4.00% or Floor rate of 8.75%, 7.25% Exit Fee

$

15,000

 

 

15,129

 

 

15,350

 

Subtotal: 1-5 Years Maturity

 

 

679,248

 

 

687,175

 

Subtotal: Drug Discovery & Development (61.26%)*

 

 

710,770

 

 

718,686

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Glo AB (8)(10)(14)

Electronics & Computer Hardware

Senior Secured

February 2021

Interest rate PRIME + 6.20% or Floor rate of 10.45%, PIK Interest 1.75%, 5.03% Exit Fee

$

1,631

 

 

2,145

 

 

2,145

 

Subtotal: Under 1 Year Maturity

 

 

2,145

 

 

2,145

 

Subtotal: Electronics & Computer Hardware (0.18%)*

 

 

2,145

 

 

2,145

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

The CM Group LLC (17)

Healthcare Services, Other

Senior Secured

June 2024

Interest rate 1-month LIBOR + 9.35% or Floor rate of 10.35%

$

10,358

 

 

10,229

 

 

10,086

 

Velocity Clinical Research, Inc. (13)(17)(18)

Healthcare Services, Other

Senior Secured

November 2024

Interest rate 1-month LIBOR + 9.08% or Floor rate of 10.08%

$

9,823

 

 

9,511

 

 

9,887

 

Subtotal: 1-5 Years Maturity

 

 

19,740

 

 

19,973

 

Subtotal: Healthcare Services, Other (1.70%)*

 

 

19,740

 

 

19,973

 

Information Services

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.) (14)(15)(19)

Information Services

Senior Secured

December 2021

Interest rate PRIME + 6.25% or Floor rate of 9.50%, PIK Interest 1.70%, 5.30% Exit Fee

$

15,825

 

 

16,216

 

 

16,216

 

Subtotal: Under 1 Year Maturity

 

 

16,216

 

 

16,216

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

Planet Labs, Inc. (11)

Information Services

Senior Secured

June 2022

Interest rate PRIME + 5.50% or Floor rate of 11.00%, 3.00% Exit Fee

$

25,000

 

 

24,902

 

 

24,957

 

Yipit, LLC (11)(17)(18)

Information Services

Senior Secured

May 2024

Interest rate 1-month LIBOR + 8.88% or Floor rate of 9.88%

$

12,000

 

 

11,782

 

 

12,000

 

Subtotal: 1-5 Years Maturity

 

 

36,684

 

 

36,957

 

Subtotal: Information Services (4.53%)*

 

 

52,900

 

 

53,173

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Black Crow AI, Inc. (8)(9)

Internet Consumer & Business Services

Convertible Debt

October 2021

PIK Interest 1.00%

$

3,000

 

 

2,993

 

 

1,565

 

Internet Consumer & Business Services

Convertible Debt

October 2021

PIK Interest 1.00%

$

1,000

 

 

1,000

 

 

643

 

Total Black Crow AI, Inc.

 

 

 

 

$

4,000

 

 

3,993

 

 

2,208

 

Intent (p.k.a. Intent Media, Inc.) (8)(14)

Internet Consumer & Business Services

Senior Secured

September 2021

PIK Interest 10.13%, 1.20% Exit Fee

$

4,125

 

 

4,150

 

 

1,413

 

Snagajob.com, Inc. (13)

Internet Consumer & Business Services

Senior Secured

June 2021

Interest rate PRIME + 6.90% or Floor rate of 10.15%, 3.05% Exit Fee

$

43,005

 

 

43,917

 

 

43,754

 

Internet Consumer & Business Services

Senior Secured

June 2021

Interest rate PRIME + 7.80% or Floor rate of 11.05%, 3.05% Exit Fee

$

5,173

 

 

5,281

 

 

5,255

 

Total Snagajob.com, Inc.

 

 

 

 

$

48,178

 

 

49,198

 

 

49,009

 

Tectura Corporation (7)(8)(14)

Internet Consumer & Business Services

Senior Secured

March 2021

PIK Interest 5.00%

$

10,680

 

 

240

 

 —

 

Internet Consumer & Business Services

Senior Secured

March 2021

Interest rate FIXED 8.25%

$

8,250

 

 

8,250

 

 

8,250

 

Internet Consumer & Business Services

Senior Secured

March 2021

PIK Interest 5.00%

$

13,023

 

 

13,023

 

 

350

 

Total Tectura Corporation

 

 

 

 

$

31,953

 

 

21,513

 

 

8,600

 

Subtotal: Under 1 Year Maturity

 

 

78,854

 

 

61,230

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

AppDirect, Inc. (11)

Internet Consumer & Business Services

Senior Secured

August 2024

Interest rate PRIME + 5.90% or Floor rate of 9.15%, 7.95% Exit Fee

$

30,790

 

 

30,712

 

 

30,712

 

ePayPolicy Holdings, LLC (11)(17)

Internet Consumer & Business Services

Senior Secured

December 2024

Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%

$

8,000

 

 

7,799

 

 

8,080

 

 

See notes to consolidated financial statements

  

19


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

Sub-Industry

Type of
Investment 
(1)

Maturity
Date

Interest Rate and Floor (2)

Principal
Amount

 

Cost (3)

 

Value (4)

 

EverFi, Inc. (13)(14)(16)

Internet Consumer & Business Services

Senior Secured

May 2022

Interest rate PRIME + 3.90% or Floor rate of 9.15%, PIK Interest 2.30%

$

84,081

 

$

83,900

 

$

84,987

 

Houzz, Inc. (13)(14)

Internet Consumer & Business Services

Senior Secured

November 2022

Interest rate PRIME + 3.20% or Floor rate of 8.45%, PIK Interest 2.50%, 4.50% Exit Fee

$

51,403

 

 

51,854

 

 

52,151

 

Nextroll, Inc. (14)(19)

Internet Consumer & Business Services

Senior Secured

June 2022

Interest rate PRIME + 3.85% or Floor rate of 9.35%, PIK Interest 2.95%, 3.50% Exit Fee

$

20,921

 

 

21,240

 

 

21,526

 

SeatGeek, Inc. (14)

Internet Consumer & Business Services

Senior Secured

June 2023

Interest rate PRIME + 5.00% or Floor rate of 10.50%, PIK Interest 0.50%

$

60,301

 

 

59,292

 

 

57,561

 

Skyword, Inc. (14)

Internet Consumer & Business Services

Senior Secured

September 2024

Interest rate PRIME + 3.88% or Floor rate of 9.38%, PIK Interest 1.90%, 4.00% Exit Fee

$

12,196

 

 

12,291

 

 

12,021

 

Thumbtack, Inc. (13)(14)

Internet Consumer & Business Services

Senior Secured

September 2023

Interest rate PRIME + 3.45% or Floor rate of 8.95%, PIK Interest 1.50%, 3.95% Exit Fee

$

25,231

 

 

25,096

 

 

25,348

 

Varsity Tutors LLC (13)(14)(17)

Internet Consumer & Business Services

Senior Secured

August 2023

Interest rate PRIME + 5.25% or Floor rate of 10.75%, PIK Interest 0.55%, 3.00% Exit Fee

$

39,264

 

 

39,438

 

 

40,272

 

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%

$

13,436

 

 

13,387

 

 

13,337

 

Xometry, Inc. (13)

Internet Consumer & Business Services

Senior Secured

May 2022

Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.18% Exit Fee

$

11,000

 

 

11,431

 

 

11,556

 

Internet Consumer & Business Services

Senior Subordinate

May 2022

Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.25% Exit Fee

$

4,000

 

 

4,157

 

 

4,219

 

Total Xometry, Inc.

 

 

 

 

$

15,000

 

 

15,588

 

 

15,775

 

Subtotal: 1-5 Years Maturity

 

 

360,597

 

 

361,770

 

Subtotal: Internet Consumer & Business Services (36.06%)*

 

 

439,451

 

 

423,000

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

Bustle (14)(15)

Media/Content/Info

Senior Secured

June 2023

Interest rate PRIME + 4.35% or Floor rate of 9.35%, PIK Interest 1.95%, 4.45% Exit Fee

$

21,045

 

 

21,279

 

 

21,555

 

Subtotal: 1-5 Years Maturity

 

 

21,279

 

 

21,555

 

Subtotal: Media/Content/Info (1.84%)*

 

 

21,279

 

 

21,555

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Intuity Medical, Inc. (11)(15)

Medical Devices & Equipment

Senior Secured

June 2021

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

$

11,217

 

 

12,365

 

 

12,365

 

Quanterix Corporation (11)

Medical Devices & Equipment

Senior Secured

October 2021

Interest rate PRIME + 2.75% or Floor rate of 8.00%, 0.96% Exit Fee

$

7,688

 

 

7,752

 

 

7,752

 

Sebacia, Inc. (8)

Medical Devices & Equipment

Senior Secured

January 2021

Interest rate PRIME + 4.35% or Floor rate of 8.85%

$

1,000

 

 

1,000

 

 —

 

Subtotal: Under 1 Year Maturity

 

 

21,117

 

 

20,117

 

Subtotal: Medical Devices & Equipment (1.71%)*

 

 

21,117

 

 

20,117

 

Software

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

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

 

 

30,509

 

 

30,509

 

Subtotal: Under 1 Year Maturity

 

 

30,509

 

 

30,509

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

3GTMS, LLC. (11)(17)(18)

Software

Senior Secured

February 2025

Interest rate 3-Month LIBOR + 9.28% or Floor rate of 10.28%

$

10,000

 

 

9,762

 

 

9,754

 

Abrigo (18)

Software

Senior Secured

March 2023

Interest rate 3-month LIBOR + 7.88% or Floor rate of 8.88%

$

38,457

 

 

37,993

 

 

38,264

 

Software

Senior Secured

March 2023

Interest rate 3-month LIBOR + 5.96% or Floor rate of 6.96%

$

2,312

 

 

2,273

 

 

2,296

 

Total Abrigo

 

 

 

 

$

40,769

 

 

40,266

 

 

40,560

 

Bitsight Technologies, Inc. (19)

Software

Senior Secured

November 2025

Interest rate PRIME + 6.75% or Floor rate of 10.00%, 3.50% Exit Fee

$

12,500

 

 

12,289

 

 

12,289

 

Businessolver.com, Inc. (11)(17)

Software

Senior Secured

May 2023

Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%

$

33,650

 

 

33,248

 

 

33,640

 

Software

Senior Secured

May 2023

Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%

$

7,650

 

 

7,532

 

 

7,579

 

Total Businessolver.com, Inc.

 

 

 

 

$

41,300

 

 

40,780

 

 

41,219

 

Campaign Monitor Limited (11)(19)

Software

Senior Secured

November 2025

Interest rate 6-month LIBOR + 8.90% or Floor rate of 9.90%

$

33,000

 

 

32,348

 

 

33,304

 

Clarabridge, Inc. (12)(13)(14)(17)

Software

Senior Secured

May 2024

Interest rate PRIME + 5.30% or Floor rate of 8.55%, PIK Interest 2.25%

$

55,823

 

 

55,359

 

 

56,940

 

Cloud 9 Software (13)

Software

Senior Secured

April 2024

Interest rate 3-month LIBOR + 8.20% or Floor rate of 9.20%

$

10,000

 

 

9,867

 

 

10,030

 

 

See notes to consolidated financial statements

  

20


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

Sub-Industry

Type of
Investment 
(1)

Maturity
Date

Interest Rate and Floor (2)

Principal
Amount

 

Cost (3)

 

Value (4)

 

CloudBolt Software Inc. (17)(19)

Software

Senior Secured

October 2024

Interest rate PRIME + 6.70% or Floor rate of 9.95%, 2.95% Exit Fee

$

5,000

 

$

4,867

 

$

4,867

 

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

 

 

15,883

 

 

15,883

 

Couchbase, Inc. (11)(15)(19)

Software

Senior Secured

June 2024

Interest rate PRIME + 5.25% or Floor rate of 10.75%, 3.75% Exit Fee

$

25,000

 

 

25,167

 

 

25,761

 

Dashlane, Inc. (11)(14)(17)(19)

Software

Senior Secured

April 2022

Interest rate PRIME + 4.05% or Floor rate of 8.55%, PIK Interest 1.10%, 8.50% Exit Fee

$

10,294

 

 

10,808

 

 

10,838

 

Software

Senior Secured

March 2023

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

$

10,195

 

 

10,312

 

 

10,343

 

Total Dashlane, Inc.

 

 

 

 

$

20,489

 

 

21,120

 

 

21,181

 

Delphix Corp. (13)(19)

Software

Senior Secured

February 2023

Interest rate PRIME + 5.50% or Floor rate of 10.25%, 5.00% Exit Fee

$

60,000

 

 

59,932

 

 

61,159

 

Envisage Technologies, LLC (13)(18)

Software

Senior Secured

March 2025

Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%

$

9,750

 

 

9,525

 

 

9,750

 

ExtraHop Networks, Inc. (19)

Software

Senior Secured

September 2023

Interest rate PRIME + 7.00% or Floor rate of 10.25%, 2.50% Exit Fee

$

15,000

 

 

14,745

 

 

14,745

 

FreedomPay, Inc. (13)(19)

Software

Senior Secured

June 2023

Interest rate PRIME + 7.70% or Floor rate of 10.95%, 3.55% Exit Fee

$

10,000

 

 

9,972

 

 

10,126

 

Ikon Science Limited (5)(10)(11)(17)(18)

Software

Senior Secured

October 2024

Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%

$

7,000

 

 

6,744

 

 

6,724

 

Jolt Software, Inc. (14)

Software

Senior Secured

October 2022

Interest rate PRIME + 3.00% or Floor rate of 8.50%, PIK Interest 1.75%, 4.50% Exit Fee

$

7,639

 

 

7,725

 

 

7,828

 

Kazoo, Inc. (p.k.a. YouEarnedIt, Inc.) (11)(18)

Software

Senior Secured

July 2023

Interest rate 3-month LIBOR + 10.15% or Floor rate of 11.15%

$

8,695

 

 

8,477

 

 

8,509

 

Khoros (p.k.a Lithium Technologies) (11)

Software

Senior Secured

October 2022

Interest rate 6-month LIBOR + 8.00% or Floor rate of 9.00%

$

56,208

 

 

55,585

 

 

56,207

 

Logicworks (17)

Software

Senior Secured

January 2024

Interest rate PRIME + 7.50% or Floor rate of 10.75%

$

10,000

 

 

9,801

 

 

9,801

 

Mixpanel, Inc. (14)(19)

Software

Senior Secured

August 2024

Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.80%, 3.00% Exit Fee

$

20,062

 

 

19,703

 

 

19,703

 

Mobile Solutions Services (17)(18)

Software

Senior Secured

December 2025

Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%

$

5,500

 

 

5,323

 

 

5,400

 

Software

Senior Secured

December 2025

Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%

$

13,150

 

 

12,731

 

 

12,672

 

Total Mobile Solutions Services

 

 

 

 

$

18,650

 

 

18,054

 

 

18,072

 

Nuvolo Technologies Corporation (13)(17)(19)

Software

Senior Secured

April 2023

Interest rate PRIME + 7.25% or Floor rate of 11.50%

$

15,000

 

 

14,867

 

 

14,993

 

Optimizely Mergerco, Inc. (17)(18)

Software

Senior Secured

October 2025

Interest rate 6-month LIBOR + 10.00% or Floor rate of 11.00%

$

50,000

 

 

48,561

 

 

48,559

 

Pollen, Inc. (14)(15)(17)

Software

Senior Secured

November 2023

Interest rate PRIME + 4.75% or Floor rate of 8.00%, PIK Interest 0.50%, 4.50% Exit Fee

$

7,420

 

 

7,366

 

 

7,366

 

Pymetrics, Inc. (14)

Software

Senior Secured

October 2022

Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.75%, 4.00% Exit Fee

$

9,497

 

 

9,409

 

 

9,409

 

Regent Education (14)

Software

Senior Secured

January 2022

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

$

3,220

 

 

3,315

 

 

3,316

 

Reltio, Inc. (13)(14)(17)(19)

Software

Senior Secured

July 2023

Interest rate PRIME + 5.70% or Floor rate of 8.95%, PIK Interest 1.70%, 4.95% Exit Fee

$

10,073

 

 

9,928

 

 

10,136

 

SingleStore, Inc. (p.k.a. memsql, Inc.) (11)(14)(17)

Software

Senior Secured

May 2023

Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 0.75%, 3.95% Exit Fee

$

5,021

 

 

5,012

 

 

5,137

 

Tact.ai Technologies, Inc. (11)(14)

Software

Senior Secured

February 2023

Interest rate PRIME + 4.00% or Floor rate of 8.75%, PIK Interest 2.00%, 5.50% Exit Fee

$

5,081

 

 

4,995

 

 

4,970

 

ThreatConnect, Inc. (13)(17)(18)

Software

Senior Secured

May 2024

Interest rate 3-month LIBOR + 8.26% or Floor rate of 9.26%

$

4,500

 

 

4,391

 

 

4,441

 

Udacity, Inc. (14)(17)

Software

Senior Secured

September 2024

Interest rate PRIME + 4.50% or Floor rate of 7.75%, PIK Interest 2.00%, 3.00% Exit Fee

$

35,130

 

 

34,700

 

 

34,700

 

Vela Trading Technologies (11)(14)(18)

Software

Senior Secured

July 2022

Interest rate 3-month LIBOR + 12.00% or Floor rate of 11.50%, PIK Interest 2.50%

$

18,131

 

 

17,826

 

 

14,505

 

ZeroFox, Inc. (13)

Software

Senior Secured

January 2023

Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.00% Exit Fee

$

20,000

 

 

20,118

 

 

20,118

 

Subtotal: 1-5 Years Maturity

 

 

668,459

 

 

672,062

 

 

See notes to consolidated financial statements

  

21


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

Sub-Industry

Type of
Investment 
(1)

Maturity
Date

Interest Rate and Floor (2)

Principal
Amount

 

Cost (3)

 

Value (4)

 

Greater than 5 Years Maturity

 

 

 

 

 

 

 

 

 

 

Imperva, Inc. (19)

Software

Senior Secured

January 2027

Interest rate 3-month LIBOR + 7.75% or Floor rate of 8.75%

$

20,000

 

$

19,828

 

$

20,000

 

Subtotal: Greater than 5 Years Maturity

 

 

19,828

 

 

20,000

 

Subtotal: Software (61.60%)*

 

 

718,796

 

 

722,571

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)(8)(14)

Sustainable and Renewable Technology

Senior Secured

January 2021

PIK Interest 10.00%

$

681

 

 

681

 

 

 

Subtotal: Under 1 Year Maturity

 

 

681

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc. (12)(13)

Sustainable and Renewable Technology

Senior Secured

July 2022

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

$

38,868

 

 

42,285

 

 

42,548

 

Pineapple Energy LLC (6)(8)(9)

Sustainable and Renewable Technology

Senior Secured

December 2023

PIK Interest 10.00%

$

7,500

 

 

7,500

 

 

7,500

 

Subtotal: 1-5 Years Maturity

 

 

49,785

 

 

50,048

 

Subtotal: Sustainable and Renewable Technology (4.27%)*

 

 

50,466

 

 

50,048

 

Total: Debt Investments (178.54%)*

 

$

2,099,425

 

$

2,094,435

 

 

See notes to consolidated financial statements

  

22


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peerless Network Holdings, Inc.

 

Communications & Networking

 

Equity

 

Common Stock

 

 

3,328

 

 

$

 

 

$

8

 

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,135,000

 

 

 

1,230

 

 

 

3,800

 

Total Peerless Network Holdings, Inc.

 

 

 

 

 

 

 

 

1,138,328

 

 

 

1,230

 

 

 

3,808

 

Subtotal: Communications & Networking (0.29%)*

 

 

 

 

 

1,230

 

 

 

3,808

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Beauty, Inc.

 

Consumer & Business Products

 

Equity

 

Preferred Series B

 

 

111,156

 

 

 

230

 

 

 

743

 

Subtotal: Consumer & Business Products (0.06%)*

 

 

 

 

 

230

 

 

 

743

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

 

Diversified Financial Services

 

Equity

 

Common Stock

 

 

830,000

 

 

 

1,884

 

 

 

2,276

 

 

Diversified Financial Services

 

Equity

 

Preferred Series A

 

 

10,602,752

 

 

 

26,122

 

 

 

31,554

 

Total Gibraltar Business Capital, LLC

 

 

 

 

 

 

 

 

11,432,752

 

 

 

28,006

 

 

 

33,830

 

Subtotal: Diversified Financial Services (2.62%)*

 

 

 

 

 

28,006

 

 

 

33,830

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc. (4)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

176,730

 

 

 

1,329

 

 

 

219

 

BioQ Pharma Incorporated (15)

 

Drug Delivery

 

Equity

 

Preferred Series D

 

 

165,000

 

 

 

500

 

 

 

504

 

Kaleo, Inc.

 

Drug Delivery

 

Equity

 

Preferred Series B

 

 

82,500

 

 

 

1,007

 

 

 

4,117

 

Neos Therapeutics, Inc. (4)(15)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

125,000

 

 

 

1,500

 

 

 

78

 

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

 

Drug Delivery

 

Equity

 

Common Stock

 

 

2,498

 

 

 

309

 

 

 

5

 

Subtotal: Drug Delivery (0.38%)*

 

 

 

 

 

4,645

 

 

 

4,923

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albireo Pharma, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

25,000

 

 

 

1,000

 

 

 

938

 

Aveo Pharmaceuticals, Inc. (4)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

190,175

 

 

 

1,715

 

 

 

1,097

 

Bicycle Therapeutics PLC (4)(5)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

98,100

 

 

 

1,871

 

 

 

1,761

 

BridgeBio Pharma LLC (4)(16)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

203,579

 

 

 

2,000

 

 

 

14,476

 

Cerecor, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

119,087

 

 

 

1,000

 

 

 

314

 

Chemocentryx, Inc. (4)(10)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

17,241

 

 

 

1,000

 

 

 

1,068

 

Concert Pharmaceuticals, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

70,796

 

 

 

1,367

 

 

 

895

 

Dare Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

13,550

 

 

 

1,000

 

 

 

18

 

Dynavax Technologies (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

20,000

 

 

 

550

 

 

 

89

 

Eidos Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

15,000

 

 

 

255

 

 

 

1,974

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

27,932

 

 

 

2,000

 

 

 

67

 

Paratek Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

76,362

 

 

 

2,744

 

 

 

478

 

Rocket Pharmaceuticals, Ltd. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

944

 

 

 

1,500

 

 

 

52

 

Savara, Inc. (4)(15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

11,119

 

 

 

203

 

 

 

13

 

Sio Gene Therapies, Inc. (p.k.a. Axovant Gene Therapies Ltd.) (4)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

16,228

 

 

 

1,269

 

 

 

45

 

Tricida, Inc. (4)(15)(16)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

68,816

 

 

 

863

 

 

 

485

 

uniQure B.V. (4)(5)(10)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

17,175

 

 

 

332

 

 

 

621

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)

 

Drug Discovery & Development

 

Equity

 

Preferred Series B

 

 

510,308

 

 

 

3,000

 

 

 

3,000

 

X4 Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

83,334

 

 

 

641

 

 

 

536

 

Subtotal: Drug Discovery & Development (2.16%)*

 

 

 

 

 

24,310

 

 

 

27,927

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23andMe, Inc.

 

Healthcare Services, Other

 

Equity

 

Common Stock

 

 

360,000

 

 

 

5,094

 

 

 

7,546

 

Subtotal: Healthcare Services, Other (0.58%)*

 

 

 

 

 

5,094

 

 

 

7,546

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contentful, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series C

 

 

82

 

 

 

138

 

 

 

270

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series D

 

 

217

 

 

 

500

 

 

 

785

 

Total Contentful, Inc.

 

 

 

 

 

 

 

 

299

 

 

 

638

 

 

 

1,055

 

Countable Corporation (p.k.a. Brigade Group, Inc.)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

9,023

 

 

 

93

 

 

 

 

DoorDash, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

525,000

 

 

 

6,051

 

 

 

58,706

 

Fastly, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

6,238

 

 

 

8

 

 

 

545

 

Lyft, Inc. (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

200,738

 

 

 

10,487

 

 

 

9,862

 

Nextdoor.com, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

328,190

 

 

 

4,854

 

 

 

8,994

 

OfferUp, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A

 

 

286,080

 

 

 

1,663

 

 

 

1,867

 

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series A-1

 

 

108,710

 

 

 

632

 

 

 

709

 

Total OfferUp, Inc.

 

 

 

 

 

 

 

 

394,790

 

 

 

2,295

 

 

 

2,576

 

 

See notes to consolidated financial statements

  

23


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Oportun (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

48,365

 

 

$

577

 

 

$

937

 

Reischling Press, Inc. (p.k.a. Blurb, Inc.)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

1,163

 

 

 

15

 

 

 

 

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

 

 

 

 

Uber Technologies, Inc. (p.k.a. Postmates, Inc.) (4)

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

32,991

 

 

 

317

 

 

 

1,683

 

Subtotal: Internet Consumer & Business Services (6.53%)*

 

 

 

 

 

26,235

 

 

 

84,358

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Equity

 

Preferred Series AA

 

 

221,893

 

 

 

1,500

 

 

 

 

Gelesis, Inc.

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

227,013

 

 

 

 

 

 

626

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-1

 

 

191,210

 

 

 

425

 

 

 

554

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series A-2

 

 

191,626

 

 

 

500

 

 

 

540

 

Total Gelesis, Inc.

 

 

 

 

 

 

 

 

609,849

 

 

 

925

 

 

 

1,720

 

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

 

 

 

 

Outset Medical, Inc. (4)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

38,243

 

 

 

527

 

 

 

1,947

 

ViewRay, Inc. (4)(15)

 

Medical Devices & Equipment

 

Equity

 

Common Stock

 

 

36,457

 

 

 

333

 

 

 

139

 

Subtotal: Medical Devices & Equipment (0.29%)*

 

 

 

 

 

4,190

 

 

 

3,806

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

78

 

Docker, Inc.

 

Software

 

Equity

 

Common Stock

 

 

20,000

 

 

 

4,284

 

 

 

24

 

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

 

Software

 

Equity

 

Preferred Series 2

 

 

458,841

 

 

 

1,000

 

 

 

3,644

 

 

Software

 

Equity

 

Preferred Series 3

 

 

93,620

 

 

 

300

 

 

 

777

 

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

 

 

 

 

 

 

 

 

552,461

 

 

 

1,300

 

 

 

4,421

 

HighRoads, Inc.

 

Software

 

Equity

 

Common Stock

 

 

190

 

 

 

307

 

 

 

 

Lightbend, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

384,616

 

 

 

265

 

 

 

165

 

Palantir Technologies (4)

 

Software

 

Equity

 

Common Stock

 

 

1,668,337

 

 

 

10,198

 

 

 

36,015

 

SingleStore, Inc. (p.k.a. memsql, Inc.)

 

Software

 

Equity

 

Preferred Series E

 

 

580,983

 

 

 

2,000

 

 

 

2,153

 

Sprinklr, Inc.

 

Software

 

Equity

 

Common Stock

 

 

700,000

 

 

 

3,749

 

 

 

7,088

 

Subtotal: Software (3.87%)*

 

 

 

 

 

22,154

 

 

 

49,944

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

14

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

44

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

137

 

 

Surgical Devices

 

Equity

 

Preferred Series E

 

 

2,786,367

 

 

 

429

 

 

 

213

 

 

Surgical Devices

 

Equity

 

Preferred Series F

 

 

1,523,693

 

 

 

118

 

 

 

181

 

 

Surgical Devices

 

Equity

 

Preferred Series F-1

 

 

2,418,125

 

 

 

150

 

 

 

259

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

9,595,178

 

 

 

1,941

 

 

 

848

 

TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)

 

Surgical Devices

 

Equity

 

Common Stock

 

 

162,617

 

 

 

2,550

 

 

 

3,236

 

Subtotal: Surgical Devices (0.32%)*

 

 

 

 

 

4,491

 

 

 

4,084

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impossible Foods, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series E-1

 

 

188,611

 

 

 

2,000

 

 

 

2,540

 

Modumetal, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series A-1

 

 

103,584

 

 

 

500

 

 

 

1

 

Pineapple Energy LLC (6)

 

Sustainable and Renewable Technology

 

Equity

 

Class A Units

 

 

17,647

 

 

 

4,767

 

 

 

840

 

 

See notes to consolidated financial statements

  

24


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Equity

 

Preferred Series 5

 

 

99,280

 

 

$

500

 

 

$

329

 

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

 

Sustainable and Renewable Technology

 

Equity

 

Common Stock

 

 

488

 

 

 

61,502

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.29%)*

 

 

 

 

 

69,269

 

 

 

3,710

 

Total: Equity Investments (17.39%)*

 

 

 

 

$

189,854

 

 

$

224,679

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

2,834,375

 

 

 

418

 

 

 

 

Subtotal: Communications & Networking (0.00%)*

 

 

 

 

 

418

 

 

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gadget Guard (15)

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

1,662,441

 

 

 

228

 

 

 

 

The Neat Company

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

54,054

 

 

 

365

 

 

 

 

Whoop, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series C

 

 

68,627

 

 

 

18

 

 

 

1,152

 

Subtotal: Consumer & Business Products (0.09%)*

 

 

 

 

 

611

 

 

 

1,152

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerami Therapeutics (p.k.a. Dance Biopharm, Inc.) (15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

110,882

 

 

 

74

 

 

 

 

BioQ Pharma Incorporated

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

459,183

 

 

 

1

 

 

 

579

 

Neos Therapeutics, Inc. (4)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

70,833

 

 

 

285

 

 

 

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

3,929

 

 

 

390

 

 

 

 

Subtotal: Drug Delivery (0.04%)*

 

 

 

 

 

750

 

 

 

579

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (4)(5)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

201,330

 

 

 

304

 

 

 

184

 

ADMA Biologics, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

89,750

 

 

 

295

 

 

 

5

 

Albireo Pharma, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

5,310

 

 

 

61

 

 

 

97

 

Axsome Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

15,541

 

 

 

681

 

 

 

682

 

Brickell Biotech, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

9,005

 

 

 

119

 

 

 

 

Century Therapeutics

 

Drug Discovery & Development

 

Warrant

 

Common Units

 

 

40,540

 

 

 

37

 

 

 

43

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

61,273

 

 

 

178

 

 

 

183

 

CytRx Corporation (15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

105,694

 

 

 

160

 

 

 

 

Dermavant Sciences Ltd. (10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

223,642

 

 

 

101

 

 

 

460

 

Evofem Biosciences, Inc. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

7,806

 

 

 

266

 

 

 

3

 

Genocea Biosciences, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

41,176

 

 

 

165

 

 

 

20

 

Motif BioSciences Inc. (10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

121,337,041

 

 

 

282

 

 

 

 

Myovant Sciences, Ltd. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,710

 

 

 

460

 

 

 

1,031

 

Ology Bioservices, Inc. (15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

171,389

 

 

 

838

 

 

 

 

Paratek Pharmaceuticals, Inc. (4)(15)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

469,388

 

 

 

644

 

 

 

960

 

Stealth Bio Therapeutics Corp. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

500,000

 

 

 

158

 

 

 

 

TG Therapeutics, Inc. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

147,058

 

 

 

563

 

 

 

5,307

 

Tricida, Inc. (4)(15)(16)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

31,353

 

 

 

280

 

 

 

8

 

Urovant Sciences, Ltd. (4)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

99,777

 

 

 

383

 

 

 

744

 

Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)

 

Drug Discovery & Development

 

Warrant

 

Common Units

 

 

102,216

 

 

 

257

 

 

 

296

 

X4 Pharmaceuticals, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

108,334

 

 

 

673

 

 

 

87

 

Yumanity Therapeutics, Inc. (4)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

15,414

 

 

 

110

 

 

 

98

 

Subtotal: Drug Discovery & Development (0.79%)*

 

 

 

 

 

7,015

 

 

 

10,208

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

908 Devices, Inc. (4)(15)

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

49,078

 

 

 

101

 

 

 

1,215

 

Subtotal: Electronics & Computer Hardware (0.09%)*

 

 

 

 

 

101

 

 

 

1,215

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InMobi Inc. (10)

 

Information Services

 

Warrant

 

Common Stock

 

 

65,587

 

 

 

82

 

 

 

 

NetBase Solutions, Inc.

 

Information Services

 

Warrant

 

Preferred Series 1

 

 

60,000

 

 

 

356

 

 

 

498

 

Planet Labs, Inc.

 

Information Services

 

Warrant

 

Common Stock

 

 

357,752

 

 

 

615

 

 

 

273

 

Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.) (15)

 

Information Services

 

Warrant

 

Common Stock

 

 

2,812,500

 

 

 

283

 

 

 

566

 

Subtotal: Information Services (0.10%)*

 

 

 

 

 

1,336

 

 

 

1,337

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aria Systems, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

231,535

 

 

 

73

 

 

 

 

Cloudpay, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

6,763

 

 

 

54

 

 

 

126

 

First Insight, Inc. (15)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

75,917

 

 

 

96

 

 

 

91

 

Houzz, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

529,661

 

 

 

20

 

 

 

150

 

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

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

140,077

 

 

 

168

 

 

 

 

Interactions Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G-3

 

 

68,187

 

 

 

204

 

 

 

549

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

2,791

 

 

See notes to consolidated financial statements

  

25


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

Lendio, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

127,032

 

 

$

39

 

 

$

32

 

LogicSource

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

79,625

 

 

 

30

 

 

 

104

 

RumbleON, Inc. (4)

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

5,139

 

 

 

87

 

 

 

32

 

SeatGeek, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

1,379,761

 

 

 

842

 

 

 

1,548

 

ShareThis, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

 

Skyword, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

444,444

 

 

 

83

 

 

 

78

 

Snagajob.com, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

600,000

 

 

 

16

 

 

 

53

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A

 

 

1,800,000

 

 

 

782

 

 

 

58

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

1,211,537

 

 

 

62

 

 

 

27

 

Total Snagajob.com, Inc.

 

 

 

 

 

 

 

 

3,611,537

 

 

 

860

 

 

 

138

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

748,670

 

 

 

316

 

 

 

16

 

The Faction Group LLC

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series AA

 

 

8,076

 

 

 

234

 

 

 

736

 

Thumbtack, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Common Stock

 

 

190,953

 

 

 

553

 

 

 

262

 

Xometry, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

87,784

 

 

 

47

 

 

 

527

 

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

 

 

 

 

 

5,355

 

 

 

7,180

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

255,818

 

 

 

3

 

 

 

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

 

Subtotal: Media/Content/Info (0.00%)*

 

 

 

 

 

351

 

 

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspire Bariatrics, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B-1

 

 

112,858

 

 

 

455

 

 

 

 

Flowonix Medical Incorporated

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series AA

 

 

155,325

 

 

 

362

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series BB

 

 

725,806

 

 

 

351

 

 

 

 

Total Flowonix Medical Incorporated

 

 

 

 

 

 

 

 

881,131

 

 

 

713

 

 

 

 

Gelesis, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

74,784

 

 

78

 

 

 

156

 

InspireMD, Inc. (4)(5)(10)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

23

 

 

0

 

 

 

 

Intuity Medical, Inc. (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series B-1

 

 

3,076,323

 

 

294

 

 

 

394

 

Medrobotics Corporation (15)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

370

 

 

 

 

NinePoint Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

170

 

 

 

 

Outset Medical, Inc. (4)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

62,794

 

 

402

 

 

 

1,982

 

Sebacia, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

778,301

 

 

133

 

 

 

 

SonaCare Medical, LLC

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

6,464

 

 

 

188

 

 

 

 

Tela Bio, Inc. (4)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

15,712

 

 

 

61

 

 

 

9

 

Subtotal: Medical Devices & Equipment (0.20%)*

 

 

 

 

 

2,864

 

 

 

2,541

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

175

 

 

Semiconductors

 

Warrant

 

Preferred Series D-2

 

 

750,000

 

 

 

99

 

 

 

717

 

Total Achronix Semiconductor Corporation

 

 

 

 

 

 

 

 

1,110,000

 

 

 

259

 

 

 

892

 

Subtotal: Semiconductors (0.07%)*

 

 

 

 

 

259

 

 

 

892

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitsight Technologies, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

29,691

 

 

 

208

 

 

 

208

 

CloudBolt Software Inc.

 

Software

 

Warrant

 

Common Stock

 

 

158,506

 

 

 

91

 

 

 

132

 

Cloudian, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

477,454

 

 

 

72

 

 

 

29

 

Couchbase, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

263,377

 

 

 

462

 

 

 

1,023

 

Dashlane, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

346,747

 

 

 

303

 

 

 

297

 

Delphix Corp.

 

Software

 

Warrant

 

Common Stock

 

 

718,898

 

 

 

1,594

 

 

 

1,857

 

DNAnexus, Inc.

 

Software

 

Warrant

 

Preferred Series C

 

 

909,091

 

 

 

97

 

 

 

153

 

Evernote Corporation

 

Software

 

Warrant

 

Common Stock

 

 

62,500

 

 

 

106

 

 

 

70

 

 

See notes to consolidated financial statements

  

26


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Series

 

Shares

 

 

Cost (3)

 

 

Value (4)

 

ExtraHop Networks, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

154,784

 

 

$

191

 

 

$

265

 

Fuze, Inc. (15)

 

Software

 

Warrant

 

Preferred Series F

 

 

256,158

 

 

 

89

 

 

 

 

Lightbend, Inc. (15)

 

Software

 

Warrant

 

Preferred Series C-1

 

 

854,787

 

 

 

130

 

 

 

169

 

Mixpanel, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

82,362

 

 

 

252

 

 

 

516

 

Nuvolo Technologies Corporation

 

Software

 

Warrant

 

Common Stock

 

 

50,000

 

 

 

88

 

 

 

192

 

OneLogin, Inc. (15)

 

Software

 

Warrant

 

Common Stock

 

 

381,620

 

 

 

305

 

 

 

610

 

Poplicus, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

132,168

 

 

 

 

 

 

 

Pymetrics, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

150,943

 

 

 

77

 

 

 

182

 

RapidMiner, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

4,982

 

 

 

24

 

 

 

46

 

Reltio, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

69,120

 

 

 

215

 

 

 

216

 

SignPost, Inc.

 

Software

 

Warrant

 

Series Junior 1 Preferred

 

 

474,019

 

 

 

314

 

 

 

 

SingleStore, Inc. (p.k.a. memsql, Inc.)

 

Software

 

Warrant

 

Preferred Series D

 

 

312,596

 

 

 

103

 

 

 

714

 

Tact.ai Technologies, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

1,041,667

 

 

 

206

 

 

 

204

 

Udacity, Inc.

 

Software

 

Warrant

 

Common Stock

 

 

486,359

 

 

 

218

 

 

 

284

 

ZeroFox, Inc.

 

Software

 

Warrant

 

Preferred Series C-1

 

 

648,350

 

 

 

100

 

 

 

363

 

Subtotal: Software (0.58%)*

 

 

 

 

 

5,245

 

 

 

7,530

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (4)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

30,581

 

 

 

132

 

 

 

5

 

Subtotal: Specialty Pharmaceuticals (0.00%)*

 

 

 

 

 

132

 

 

 

5

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (15)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

151,123

 

 

 

67

 

 

 

10

 

TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)

 

Surgical Devices

 

Warrant

 

Common Stock

 

 

64,441

 

 

 

139

 

 

 

487

 

Subtotal: Surgical Devices (0.04%)*

 

 

 

 

 

206

 

 

 

497

 

Sustainable and Renewable Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

471,327

 

 

 

120

 

 

 

 

Fulcrum Bioenergy, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

274

 

 

 

744

 

Kinestral Technologies, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series A

 

 

325,000

 

 

 

155

 

 

 

261

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series B

 

 

131,883

 

 

 

63

 

 

 

91

 

Total Kinestral Technologies, Inc.

 

 

 

 

 

 

 

 

456,883

 

 

 

218

 

 

 

352

 

NantEnergy, Inc. (p.k.a. Fluidic, Inc.)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series D

 

 

61,804

 

 

 

102

 

 

 

 

Polyera Corporation (15)

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series C

 

 

311,609

 

 

 

338

 

 

 

 

Proterra, Inc.

 

Sustainable and Renewable Technology

 

Warrant

 

Common Stock

 

 

36,630

 

 

 

1

 

 

 

14

 

 

Sustainable and Renewable Technology

 

Warrant

 

Preferred Series 4

 

 

477,517

 

 

 

41

 

 

 

376

 

Total Proterra, Inc.

 

 

 

 

 

 

 

 

514,147

 

 

 

42

 

 

 

390

 

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

 

Sustainable and Renewable Technology

 

Warrant

 

Class A Units

 

 

1

 

 

 

 

 

 

 

Subtotal: Sustainable and Renewable Technology (0.12%)*

 

 

 

 

 

1,094

 

 

 

1,486

 

Total: Warrant Investments (2.68%)*

 

 

 

 

$

25,737

 

 

$

34,622

 

Total: Investments in Securities (182.22%)*

 

 

 

 

$

2,315,016

 

 

$

2,353,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Funds & Vehicles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forbion Growth Opportunities Fund I C.V. (5)(10)(17)

 

Drug Discovery & Development

 

Investment Funds & Vehicles

 

 

 

 

 

 

 

342

 

 

 

342

 

Total: Investments in Investment Funds & Vehicles (0.03%)*

 

 

 

 

$

342

 

 

$

342

 

Total: Investments before Cash and Cash Equivalents (182.25%)*

 

 

 

 

$

2,315,358

 

 

$

2,354,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GS Financial Square Government Fund

 

 

 

Cash & Cash Equivalents

 

 

 

 

 

 

 

96,000

 

 

 

96,000

 

Total: Investments in Cash & Cash Equivalents (7.43%)*

 

 

 

 

$

96,000

 

 

$

96,000

 

Total: Investments after Cash and Cash Equivalents (189.68%)*

 

 

 

 

$

2,411,358

 

 

$

2,450,078

 

 

* 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 3.25% as of December 31, 2020. 1-month LIBOR, 3-month LIBOR, and 6-month LIBOR represent, 0.14%, 0.24%, and 0.36%, respectively, as of December 31, 2020.

See notes to consolidated financial statements

  

27


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

 

(3)
Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $166.2 million, $126.1 million, and $40.1 million, respectively. The tax cost of investments is $2.3 billion.
(4)
Except for warrants in 27 publicly traded companies and common stock in 30 publicly traded companies, all investments are restricted as of December 31, 2020 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s Board. 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 as of December 31, 2020 and is therefore considered non-income producing. Note that only the PIK portion is on non-accrual for the Company’s debt investments in Glo AB and 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 2027 Asset-Backed Notes or 2028 Asset-Backed Notes (as defined in “Note 5 — Debt”).
(12)
Denotes that all or a portion of the debt investment is pledged as collateral under the Wells Facility (as defined in “Note 5 — Debt”).
(13)
Denotes that all or a portion of the debt investment is pledged as collateral under the Union Bank Facility (as defined in “Note 5 — Debt”).
(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 HT III, the Company’s wholly owned small business investment