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  • 10-Q Filing

Hercules Capital (HTGC) 10-Q2021 Q2 Quarterly report

Filed: 29 Jul 21, 4:32pm
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    • 10-Q Quarterly report
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    2021 Q2
    30 Jul 21
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    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.