\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n Debt Investment Portfolio Composition by Quarter<\/b><\/p>\n\n\n| (% of debt investment portfolio)<\/td>\n | | \nQ2 2021<\/b><\/td>\n | | \nQ1 2021<\/b><\/td>\n | | \nQ4 2020<\/b><\/td>\n | | \nQ3 2020<\/b><\/td>\n | | \nQ2 2020<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| First Lien Senior Secured<\/b><\/td>\n | | \n\n \n82.1%\n<\/p>\n<\/td>\n | | \n\n \n82.7%\n<\/p>\n<\/td>\n | | \n\n \n84.2%\n<\/p>\n<\/td>\n | | \n\n \n85.5%\n<\/p>\n<\/td>\n | | \n\n \n83.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Floating Rate w\/Floors<\/b><\/td>\n | | \n\n \n96.8%\n<\/p>\n<\/td>\n | | \n\n \n96.8%\n<\/p>\n<\/td>\n | | \n\n \n96.9%\n<\/p>\n<\/td>\n | | \n\n \n97.9%\n<\/p>\n<\/td>\n | | \n\n \n97.9%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n Effective Portfolio Yield and Core Portfolio Yield (\u201cCore Yield\u201d)<\/b><\/p>\n \nThe effective yield on Hercules\u2019 debt investment portfolio was 12.7% during Q2 2021, as compared to 13.2% for Q1 2021. The Company realized $167.9 million of early loan repayments in Q2 2021 compared to $191.5 million in Q1 2021, or a decrease of 12.3%. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments, and other one-time events. Effective yields are materially impacted by the elevated or reduced levels of early loan repayments and derived by dividing total investment income by the weighted average earning investment portfolio assets outstanding during the quarter, which excludes non-interest earning assets such as warrants and equity investments.\n<\/p>\n \nCore yield, a non-GAAP measure, was 11.5% during Q2 2021, within the Company\u2019s expected range of 11.0% to 12.0%, and decreased slightly compared to 11.6% in Q1 2021. Hercules defines core yield as yields that generally exclude any benefit from income related to early repayments attributed to the acceleration of unamortized income and prepayment fees and includes income from expired commitments.\n<\/p>\n Income Statement <\/b><\/p>\n \nTotal investment income increased to $69.6 million for Q2 2021, compared to $68.0 million in Q2 2020. The increase is primarily attributable to an increase in total fee income between periods.\n<\/p>\n \nNon-interest and fee expenses were $17.1 million in Q2 2021 versus $15.6 million for Q2 2020. The increase was due to higher employee compensation and stock-based compensation expenses.\n<\/p>\n \nInterest expense and fees were $16.7 million in Q2 2021, compared to $16.7 million in Q2 2020.\n<\/p>\n \nThe Company had a weighted average cost of borrowings comprised of interest and fees, of 5.4% in Q2 2021, as compared to 5.0% for Q2 2020. The increase is primarily due to the acceleration of fee recognition for the partial paydown of the SBA debentures and securitizations, due to the reinvestment period ending.\n<\/p>\n NII \u2013 Net Investment Income <\/b><\/p>\n \nNII for Q2 2021 was $37.0 million, or $0.32 per share, based on 114.7 million basic weighted average shares outstanding, compared to $35.7 million, or $0.32 per share, based on 111.6 million basic weighted average shares outstanding in Q2 2020. The increase is primarily attributable to an increase in the total fee income between periods.\n<\/p>\n Continued Credit Discipline and Strong Credit Performance <\/b><\/p>\n \nHercules\u2019 net cumulative realized gain\/(loss) position, since its first origination activities in October 2004 through June 30, 2021, (including net loan, warrant and equity activity) on investments, totaled ($86.2) million, on a GAAP basis, spanning over 16 years of investment activities.\n<\/p>\n \nWhen compared to total new debt investment commitments during the same period of over $12.0 billion, the total realized gain\/(loss) since inception of ($86.2) million represents approximately 72 basis points \u201cbps,\u201d or 0.72%, of cumulative debt commitments, or an effective annualized loss rate of 4.0 bps, or 0.04%.\n<\/p>\n Realized Gains\/(Losses) <\/b><\/p>\n \nDuring Q2 2021, Hercules had net realized losses of ($14.3) million comprised of gross realized gains of $47.8 million due to the sale of equity and warrant investments, offset by ($62.1) million of gross realized losses primarily due to the write-off of one legacy equity investment that had a fair value of $0.\n<\/p>\n Unrealized Appreciation\/(Depreciation) <\/b><\/p>\n \nDuring Q2 2021, Hercules recorded $60.0 million of net unrealized appreciation, primarily from net unrealized appreciation from our debt, equity and warrant investments.\n<\/p>\n Portfolio Asset Quality <\/b><\/p>\n \nAs of June 30, 2021, the weighted average grade of the debt investment portfolio, at fair value, improved to 1.93, compared to 2.01 as of March 31, 2021, based on a scale of 1 to 5, with 1 being the highest quality. Hercules\u2019 policy is to generally adjust the credit grading down on its portfolio companies as they approach their expected need for additional growth equity capital to fund their respective operations for the next 9-14 months. Various companies in the Company\u2019s portfolio will require additional rounds of funding from time to time to maintain their operations.\n<\/p>\n \nAdditionally, Hercules may selectively downgrade portfolio companies, from time to time, if they are not meeting the Company\u2019s financing criteria, or underperforming relative to their respective business plans.\n<\/p>\n \nAs of June 30, 2021, grading of the debt investment portfolio at fair value, excluding warrants and equity investments, was as follows:\n<\/p>\n \n\n| Credit Grading at Fair Value, Q2 2021 – Q2 2020 ($ in millions)<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \n\n Q2<\/b><\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Q1<\/b><\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Q4<\/b><\/p>\n<\/td>\n | | \n\n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Q3<\/b><\/p>\n<\/td>\n | | \n\n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Q2<\/b><\/p>\n<\/td>\n | | \n\n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Grade 1 – High<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n637.2\n<\/p>\n<\/td>\n | | \n\n \n28.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n497.5\n<\/p>\n<\/td>\n | | \n\n \n22.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n411.0\n<\/p>\n<\/td>\n | | \n\n \n19.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n406.5\n<\/p>\n<\/td>\n | | \n\n \n17.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n443.6\n<\/p>\n<\/td>\n | | \n\n \n20.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Grade 2<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,192.7\n<\/p>\n<\/td>\n | | \n\n \n53.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n1,240.7\n<\/p>\n<\/td>\n | | \n\n \n56.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n1,027.9\n<\/p>\n<\/td>\n | | \n\n \n49.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n1,053.1\n<\/p>\n<\/td>\n | | \n\n \n46.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n877.9\n<\/p>\n<\/td>\n | | \n\n \n39.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Grade 3<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n403.8\n<\/p>\n<\/td>\n | | \n\n \n18.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n426.2\n<\/p>\n<\/td>\n | | \n\n \n19.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n621.3\n<\/p>\n<\/td>\n | | \n\n \n29.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n772.3\n<\/p>\n<\/td>\n | | \n\n \n34.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n849.7\n<\/p>\n<\/td>\n | | \n\n \n38.3\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Grade 4<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n8.4\n<\/p>\n<\/td>\n | | \n\n \n0.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n20.4\n<\/p>\n<\/td>\n | | \n\n \n0.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n25.3\n<\/p>\n<\/td>\n | | \n\n \n1.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n26.7\n<\/p>\n<\/td>\n | | \n\n \n1.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n25.0\n<\/p>\n<\/td>\n | | \n\n \n1.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Grade 5 – Low<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1.3\n<\/p>\n<\/td>\n | | \n\n \n0.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.2\n<\/p>\n<\/td>\n | | \n\n \n0.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n8.9\n<\/p>\n<\/td>\n | | \n\n \n0.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.9\n<\/p>\n<\/td>\n | | \n\n \n0.3\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n20.1\n<\/p>\n<\/td>\n | | \n\n \n0.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Weighted Avg.<\/b><\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 1.93<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.01<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.16<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.22<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2.30<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n<\/table>\nNon-Accruals <\/b><\/p>\n \nNon-accruals decreased slightly as a percentage of the overall investment portfolio in the second quarter of 2021. As of June 30, 2021, the Company had three (3) debt investments on non-accrual with an investment cost and fair value of approximately $23.0 million and $7.7 million, respectively, or 1.0% and 0.3% as a percentage of the Company\u2019s total investment portfolio at cost and value, respectively.\n<\/p>\n \nCompared to March 31, 2021, the Company had four (4) debt investments on non-accrual with an investment cost and fair value of approximately $24.1 million and $8.0 million, respectively, or 1.0% and 0.3% as a percentage of the total investment portfolio at cost and value, respectively.\n<\/p>\n \n\n | \nQ2 2021<\/b><\/td>\n | | \nQ1 2021<\/b><\/td>\n | | \nQ4 2020<\/b><\/td>\n | | \nQ3 2020<\/b><\/td>\n | | \nQ2 2020<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Investments at Cost<\/b><\/td>\n | \n \n$2,399.0\n<\/p>\n<\/td>\n | | \n\n \n$2,403.8\n<\/p>\n<\/td>\n | | \n\n \n$2,315.4\n<\/p>\n<\/td>\n | | \n\n \n$2,505.8\n<\/p>\n<\/td>\n | | \n\n \n$2,501.4\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Loans on non-accrual as a % of Total<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Investments at Value<\/b><\/td>\n | \n \n0.3%\n<\/p>\n<\/td>\n | | \n\n \n0.3%\n<\/p>\n<\/td>\n | | \n\n \n0.5%\n<\/p>\n<\/td>\n | | \n\n \n0.3%\n<\/p>\n<\/td>\n | | \n\n \n0.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Loans on non-accrual as a % of Total <\/b><\/td>\n | \n \n1.0%\n<\/p>\n<\/td>\n | | \n\n \n1.0%\n<\/p>\n<\/td>\n | | \n\n \n1.3%\n<\/p>\n<\/td>\n | | \n\n \n0.9%\n<\/p>\n<\/td>\n | | \n\n \n2.4%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Investments at Cost<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n<\/table>\nLiquidity and Capital Resources<\/b><\/p>\n \nThe Company ended Q2 2021 with $610.0 million in available liquidity, including $18.4 million in unrestricted cash and cash equivalents, and $591.6 million in available credit facilities and SBA Debentures, subject to existing terms and advance rates and regulatory and covenant requirements.\n<\/p>\n Bank Facilities<\/b><\/p>\n \nAs of June 30, 2021, there were $1.7 million outstanding borrowings under the Hercules\u2019 $400.0 million committed credit facility with Union Bank as Agent and no outstanding borrowings under the Hercules\u2019 $75.0 million committed credit facility with Wells Fargo Capital Finance.\n<\/p>\n Leverage <\/b><\/p>\n \nAs of June 30, 2021, Hercules\u2019 GAAP leverage ratio, including its Small Business Administration \u201cSBA\u201d debentures, was 87.7%. Hercules\u2019 regulatory leverage, or debt-to-equity ratio, excluding its SBA debentures, was 83.8% and net regulatory leverage, a non-GAAP measure (excluding cash of approximately $18.5 million), was 82.4%. Hercules\u2019 net leverage ratio, including its SBA debentures, was 86.4%.\n<\/p>\n Available Unfunded Commitments \u2013 Representing 12.7% of Total Assets<\/b><\/p>\n \nThe Company\u2019s unfunded commitments and contingencies consist primarily of unused commitments to extend credit in the form of loans to select portfolio companies. A portion of these unfunded contractual commitments are dependent upon the portfolio company reaching certain milestones in order to gain access to additional funding. Furthermore, the Company\u2019s credit agreements contain customary lending provisions that allow us relief from funding obligations for previously made commitments. In addition, since a portion of these commitments may also expire without being drawn, unfunded contractual commitments do not necessarily represent future cash requirements.\n<\/p>\n \nAs of June 30, 2021, the Company had $327.3 million of available unfunded commitments at the request of the portfolio company and unencumbered by any milestones, including undrawn revolving facilities, representing 12.7% of Hercules\u2019 total assets. This increased from the previous quarter of $257.9 million of available unfunded commitments or 10.0% of Hercules\u2019 total assets.\n<\/p>\n Existing Pipeline and Signed Term Sheets<\/b><\/p>\n \nAfter closing $440.8 million in new debt and equity commitments in Q2 2021, Hercules has pending commitments of $402.5 million in signed non-binding term sheets outstanding as of July 26, 2021. Since the close of Q2 2021 and as of July 26, 2021, Hercules has closed new debt and equity commitments of $27.0 million and funded $23.4 million.\n<\/p>\n \nSigned non-binding term sheets are subject to satisfactory completion of Hercules\u2019 due diligence and final investment committee approval process as well as negotiations of definitive documentation with the prospective portfolio companies. These non-binding term sheets generally convert to contractual commitments in approximately 90 days from signing and some portion may be assigned or allocated to private funds managed by Hercules Adviser prior to or after closing. It is important to note that not all signed non-binding term sheets are expected to close and do not necessarily represent future cash requirements or investments.\n<\/p>\n Net Asset Value<\/b><\/p>\n \nAs of June 30, 2021, the Company\u2019s net assets were $1.36 billion, compared to $1.32 billion at the end of Q1 2021. NAV per share increased 3.1% to $11.71 on 115.9 million outstanding shares of common stock as of June 30, 2021, compared to $11.36 on 115.8 million outstanding shares of common stock as of March 31, 2021. The increase in NAV per share was primarily attributed to the net change in unrealized appreciation and a decrease in liabilities between periods.\n<\/p>\n Interest Rate Sensitivity <\/b><\/p>\n \nHercules has an asset sensitive debt investment portfolio with 96.8% of its debt investment portfolio being priced at floating interest rates as of June 30, 2021, with a Prime or LIBOR-based interest rate floor, combined with 99.9% of its outstanding debt borrowings bearing fixed interest rates, leading to higher net investment income sensitivity.\n<\/p>\n \nBased on Hercules\u2019 Consolidated Statement of Assets and Liabilities as of June 30, 2021, the following table shows the approximate annualized increase\/(decrease) in components of net income resulting from operations of hypothetical base rate changes in interest rates, such as Prime Rate, assuming no changes in Hercules\u2019 debt investments and borrowings. These estimates are subject to change due to the impact from active participation in the Company\u2019s equity ATM program and any future equity offerings.\n<\/p>\n \n\n| (in thousands)<\/b><\/td>\n | | \nInterest<\/b><\/td>\n | | \nInterest<\/b><\/td>\n | | \nNet<\/b><\/td>\n | | \nEPS(2)<\/sup><\/b><\/td>\n<\/tr>\n\n| Basis Point Change<\/b><\/td>\n | | \nIncome(1)<\/sup><\/b><\/td>\n | \nExpense<\/b><\/td>\n | | \nIncome<\/b><\/td>\n | | \n | <\/tr>\n\n| \n \n(75)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(3)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(21)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n18\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(50)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(3)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(14)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n11\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(25)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(3)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(7)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n25\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n3,425\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n7\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n3,418\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.03\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n50\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n6,893\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n14\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n6,879\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.06\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n75\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n10,339\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n21\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n10,318\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.09\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n100\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n13,862\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n28\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n13,834\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.12\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n200\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n29,236\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n56\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n29,180\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.25\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n(1) <\/sup>Source: Hercules Capital Form 10-Q for Q2 2021<\/td>\n | \n | \n | \n | \n | \n | <\/tr>\n\n(2) <\/sup>EPS calculated on basic weighted shares outstanding of 114,654. Estimates are subject to change due to impact from active<\/td>\n<\/tr>\n\n| participation in the Company’s equity ATM program and any future equity offerings.<\/td>\n | | \n | \n | \n | <\/tr>\n<\/table>\nExisting Equity and Warrant Portfolio <\/b><\/p>\n Equity Portfolio<\/b><\/p>\n \nHercules held equity positions in 67 portfolio companies with a fair value of $229.9 million and a cost basis of $133.8 million as of June 30, 2021. On a fair value basis, 62.6% or $143.9 million is related to existing public equity positions.\n<\/p>\n Warrant Portfolio<\/b><\/p>\n \nHercules held warrant positions in 93 portfolio companies with a fair value of $46.7 million and a cost basis of $25.1 million as of June 30, 2021. On a fair value basis, 31.4% or $14.7 million is related to existing public warrant positions.\n<\/p>\n Portfolio Company IPO and M&A Activity in Q2 2021 and YTD Q3 2021<\/b><\/p>\n IPO Activity<\/b><\/p>\n \nAs of July 26, 2021, Hercules held debt, warrant or equity positions in 10 portfolio companies that have completed their IPOs and eight (8) companies that have registered for their IPOs or have entered into definitive agreements to go public via a merger or special purpose acquisition company \u201cSPAC,\u201d including:\n<\/p>\n Completed: <\/span><\/b><\/p>\n\n- \nIn July 2021, Hercules\u2019 portfolio company Couchbase, Inc. (NASDAQ: BASE)<\/b>, a provider of a leading modern database for enterprise applications, completed its initial public offering of 8.3 million shares of common stock at an initial offering price of $24.00 per share on the Nasdaq Global Select Market. Hercules initially committed $70.0 million in venture debt financing beginning in August 2018 and currently holds warrants for 105,530 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn July 2021, Hercules\u2019 portfolio company Wheels Up Partners LLC (NYSE: UP)<\/b>, a provider of subscription club memberships for private-jet flyers, completed its reverse merger initial public offering with Aspirational Consumer Lifestyle Corp. (NYSE: ASPL), a special purpose acquisition company. Hercules initially committed $23.0 million in venture debt financing beginning in December 2017.\n<\/li>\n<\/ul>\n
\n- \nIn July 2021, former Hercules\u2019 portfolio company Rapid Micro Biosystems (NASDAQ: RPID)<\/b>, a provider of an automated microbial quality control device and platform, completed its initial public offering of 7.9 million shares of common stock at an initial offering price of $20.00 per share on the Nasdaq Global Select Market. Hercules initially committed $18.0 million in venture debt financing beginning in March 2018.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company Century Therapeutics, Inc. (NASDAQ: IPSC)<\/b>, a preclinical biotech developing allogeneic stem cell treatments for multiple cancers, completed its initial public offering of 10.6 million shares of common stock at an initial offering price of $20.00 per share on the Nasdaq Global Select Market. Hercules initially committed $20.0 million in venture debt financing beginning in September 2020 and currently holds warrants for 16,112 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company Sprinklr, Inc. (NYSE: CXM)<\/b>, a developer of a social media management platform designed to provide digital transformation for enterprise businesses, completed its initial public offering of 16.6 million shares of common stock at an initial offering price of $16.00 per share on the New York Stock Exchange. Hercules currently holds 700,000 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company Zeta Global Holdings (NYSE: ZETA)<\/b>, a provider of a SaaS-based customer relationship management (CRM) platform and professional marketing services, completed its initial public offering of 14.8 million shares of common stock at an initial offering price of $10.00 per share on the New York Stock Exchange. Hercules initially committed $15.0 million in venture debt financing beginning in November 2007 and currently holds 295,861 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company Xometry (NASDAQ: XMTR)<\/b>, a leading AI-enabled marketplace for on-demand manufacturing, completed its initial public offering of 6.9 million shares of common stock at an initial offering price of $44.00 per share on the Nasdaq Global Select Market. Hercules initially committed $15.0 million in venture debt financing beginning in May 2018 and currently holds warrants for 87,784 shares of Preferred Series B stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company Proterra Inc. (NASDAQ: PTRA)<\/b>, a leading commercial electric vehicle technology and manufacturing company, completed its reverse merger initial public offering with ArcLight Clean Transition Corp. (NASDAQ: ACTC), a special purpose acquisition company. Hercules initially committed $30.0 million in venture debt financing beginning in May 2015 and currently holds 455,890 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn June 2021, Hercules\u2019 portfolio company 23andMe Inc. (NASDAQ: ME)<\/b>, a provider of consumer DNA-testing products, completed its reverse merger initial public offering with VG Acquisition Corp. (NYSE: VGAC.U), a special purpose acquisition company. Hercules currently holds 828,360 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn April 2021, Hercules\u2019 portfolio company Privia Health Group, Inc. (NASDAQ: PRVA)<\/b>, a technology-driven, national physician enablement company that collaborates with medical groups, health plans and health systems, completed its initial public offering of 19.5 million shares of common stock at an initial offering price of $23.00 per share on the Nasdaq Global Select Market. Hercules initially committed $35.0 million in venture debt financing beginning in August 2016.\n<\/li>\n<\/ul>\n
In Registration or SPAC:<\/span><\/b><\/p>\n\n- \nIn July 2021, Hercules\u2019 portfolio company Gelesis Inc.<\/b>, a biotherapeutics company advancing superabsorbent hydrogels to treat excess weight and metabolic disorders, announced it has entered into a definitive agreement for a reverse merger initial public offering with Capstar Special Purpose Acquisition Corp. (NYSE: CPSR), a special purpose acquisition company. Upon completion of the merger, the combined company will be listed on the New York Stock Exchange under the ticker symbol \u201cGLS.\u201d Hercules initially committed $3.0 million in venture debt financing in August 2008 and currently holds 227,013 shares of common stock, 243,432 shares of Preferred Series A-1 stock and 191,626 shares of Preferred Series A-2 stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn July 2021, Hercules\u2019 portfolio company Nextdoor<\/b>, a provider of a social network that connects neighbors, announced it has entered into a definitive agreement for a reverse merger initial public offering with Khosla Ventures Acquisition Co. II (NASDAQ: KVSB), a special purpose acquisition company. Upon completion of the merger, the combined company will be listed on the Nasdaq Global Select Market under the ticker symbol \u201cKIND.\u201d Hercules currently holds 328,190 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn July 2021, Hercules\u2019 portfolio company Planet Labs<\/b>, an earth data and analytics company, announced it has entered into a definitive agreement for a reverse merger initial public offering with dMY Technology Group IV Inc. (NYSE: DMYQ), a special purpose acquisition company. Upon completion of the merger, the combined company will be listed on the New York Stock Exchange under the ticker symbol \u201cPL.\u201d Hercules initially committed $25.0 million in venture debt financing beginning in June 2019 and currently holds warrants for 357,752 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn May 2021, Hercules\u2019 portfolio company Valo Health LLC<\/b>, a technology company using human-centric data and artificial intelligence powered computation to transform the drug discovery and development process, announced it has entered into a definitive agreement for a reverse merger initial public offering with Khosla Ventures Acquisition Co. (NASDAQ: KVAC), a special purpose acquisition company. Upon completion of the merger, the combined company will be listed on the Nasdaq Global Select Market under the ticker symbol \u201cVH.\u201d Hercules initially committed $20.0 million in venture debt financing beginning in June 2020 and currently holds 510,308 shares of Preferred Series B stock and warrants for 102,216 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn March 2021, Hercules\u2019 portfolio company Rocket Lab<\/b>, a developer of launch and space systems, announced it has entered into a definitive agreement for a reverse merger initial public offering with Vector Acquisition Corp. (NASDAQ: VACQ), a special purpose acquisition company. Upon completion of the merger, Rocket Lab will be listed on the Nasdaq Global Select Market under the ticker symbol \u201cRKLB.\u201d Hercules initially committed $100.0 million in venture debt financing beginning in June 2021.\n<\/li>\n<\/ul>\n
\n- \nIn March 2021, Hercules\u2019 portfolio company VELO3D<\/b>, a developer of metal laser sintering printing machines intended to offer 3D printing, announced it has entered into a definitive agreement for a reverse merger initial public offering with Jaws Spitfire Acquisition Corp. (NYSE: SPFR), a special purpose acquisition company. Upon completion of the merger, VELO3D will be listed on the New York Stock Exchange under the ticker symbol \u201cVLD.\u201d Hercules initially committed $12.5 million in venture debt financing beginning in May 2021.\n<\/li>\n<\/ul>\n
\n- \nIn March 2021, Hercules\u2019 portfolio company Pineapple Energy, LLC<\/b>, a U.S. operator and consolidator of residential solar, battery storage and grid services solutions, announced that it entered into a definitive merger agreement with Communications Systems, Inc. (NASDAQ: JCS), and IoT intelligent edge products and services company. Upon closing, CSI will commence doing business as Pineapple Energy, and expects shares of the combined company to continue to trade on the Nasdaq Global Select Market under the new ticker symbol \u201cPEGY.\u201d Hercules initially committed $12.3 million in venture debt financing beginning in December 2010 and currently holds 17,647 shares of Class A Units as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn February 2021, Nerdy, the parent company of Hercules\u2019 portfolio company Varsity Tutors<\/b>, a technology developer of an online tutoring platform, announced it has entered into a definitive agreement for a reverse merger initial public offering with TPG Pace Tech Opportunities (NYSE: PACE), a special purpose acquisition company. Upon completion of the merger, Nerdy will be listed on the New York Stock Exchange under the ticker symbol \u201cNRDY.\u201d Hercules initially committed $50.0 million in venture debt financing beginning in August 2019.\n<\/li>\n<\/ul>\n
\nThere can be no assurances that companies that have yet to complete their IPOs will do so.\n<\/p>\n M&A Activity <\/b><\/p>\n\n- \nIn June 2021, Hercules\u2019 portfolio company ExtraHop Networks Inc.<\/b>, a cloud-native network detection and response provider, announced that they entered into an agreement to be acquired by private equity firms Bain Capital and Crosspoint Capital for $900.0 million. The acquisition was completed in July. Hercules initially committed $15.0 million in venture debt financing beginning in September 2020 and currently holds warrants for 154,784 shares of common stock as of June 30, 2021.\n<\/li>\n<\/ul>\n
\n- \nIn May 2021, Hercules\u2019 portfolio company Greenphire<\/b>, a leader in global clinical trial financial process automation, announced that they have reached an agreement to be acquired by Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sector. Terms of the acquisition were not disclosed. Hercules initially committed $6.0 million in venture debt (via Ares Capital venture portfolio acquisition) financing beginning in November 2017.\n<\/li>\n<\/ul>\n
\n- \nIn May 2021, Hercules\u2019 portfolio company Vela Trading Systems LLC<\/b>, an independent provider of trading and market access technology for global multi-asset electronic trading, announced that they have merged with Exegy Inc., a provider of low-latency global market data solutions, predictive trading signals and hardware training platforms for the financial services industry. Terms of the acquisition were not disclosed. The merger was backed by Marlin Equity Partners, a global investment firm with over $7.5 billion of capital commitments under management. Hercules initially committed $20.0 million in venture debt financing beginning in June 2017.\n<\/li>\n<\/ul>\n
\n- \nIn April 2021, Hercules\u2019 portfolio company Message Systems (a.k.a. SparkPost)<\/b>, a worldwide provider of message management solutions and services for email service providers, social networks and large enterprises, announced that they have reached an agreement to be acquired by MessageBird BV, a provider of cloud-based communications services, for approximately $600.0 million. Hercules initially committed $25.0 million in venture debt financing beginning in January 2015.\n<\/li>\n<\/ul>\n
Subsequent Events <\/b><\/p>\n \n1. As of July 26, 2021, Hercules has:\n<\/p>\n \n- \nFunded $23.4 million to new and existing commitments since the close of the second quarter 2021.\n<\/li>\n
- \nPending commitments (signed non-binding term sheets) of $402.5 million.\n<\/li>\n<\/ol>\n
\nThe table below summarizes the Company\u2019s year-to-date closed and pending commitments as follows:\n<\/p>\n \n\n| \n Closed Commitments and Pending Commitments (in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nJanuary 1 \u2013 June 30, 2021 Closed Commitments(a)<\/sup><\/p>\n<\/td>\n| \n \n$971.7\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nQ3 2021 Closed Commitments (as of July 26, 2021)(b)<\/sup><\/p>\n<\/td>\n| \n \n$27.0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Year-to-Date Closed Commitments<\/b><\/p>\n<\/td>\n | \n \n$998.7\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nQ3 2021 Pending Commitments (as of July 26, 2021)(b)<\/sup><\/p>\n<\/td>\n| \n \n$402.5\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Year-to-Date 2021 Closed and Pending Commitments<\/b><\/p>\n<\/td>\n | \n \n$1,401.2\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNotes:\n<\/p>\n \n- \nClosed Commitments may include renewals of existing credit facilities and equity commitments. Not all Closed Commitments result in future cash requirements. Commitments generally fund over the two succeeding quarters from close.\n<\/li>\n
- \nNot all pending commitments (signed non-binding term sheets) are expected to close and do not necessarily represent any future cash requirements.\n<\/li>\n<\/ol>\n
\n2. On July 1, 2021, the Company fully redeemed the aggregate outstanding $75.0 million of principal and $0.6 million of accrued interest pursuant to the redemption terms of the April 2025 Notes Indenture. The Company accelerated $1.5 million of debt issuance costs associated with the extinguishment of the debt.\n<\/p>\n Conference Call <\/b><\/p>\n \nHercules has scheduled its second quarter 2021 financial results conference call for July 29, 2021 at 2:00 p.m. PT (5:00 p.m. ET). To listen to the call, please dial (877) 304-8957 (or (408) 427-3709 internationally) and reference Conference ID: 1598912 if asked, approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately three hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (855) 859-2056 or (404) 537-3406 and enter the passcode 1598912.\n<\/p>\n About Hercules Capital, Inc.<\/b><\/p>\n \nHercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $12.0 billion to over 530 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@htgc.com<\/a>, or call 650.289.3060.\n<\/p>\n\nHercules\u2019 common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol \u201cHTGC.\u201d In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).\n<\/p>\n \nCategory: Earnings\n<\/p>\n Forward-Looking Statements <\/b><\/p>\n \nThis press release may contain \u201cforward-looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the \u201csafe harbor\u201d provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.\n<\/p>\n \nThe information disclosed in this press release is made as of the date hereof and reflects Hercules\u2019 most current assessment of its historical financial performance. Actual financial results filed with the SEC may differ from those contained herein due to timing delays between the date of this release and confirmation of final audit results. These forward-looking statements are not guarantees of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including, without limitation, the risks, uncertainties, including the uncertainties surrounding the current market volatility, and other factors the Company identifies from time to time in its filings with the SEC. Although Hercules believes that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Hercules assumes no obligation to update the forward-looking statements for subsequent events.\n<\/p>\n \n\nHERCULES CAPITAL, INC.<\/b><\/td>\n<\/tr>\n\nCONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES<\/b><\/td>\n<\/tr>\n\n(dollars in thousands, except per share data)<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \nJune 30, 2021<\/b><\/td>\n | | \nDecember 31, 2020<\/b><\/td>\n<\/tr>\n\n| Assets<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n| Investments:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Non-control\/Non-affiliate investments (cost of $2,307,766 and $2,175,651, respectively)<\/td>\n | | \n\n \n$ 2,444,849\n<\/p>\n<\/td>\n | | \n\n \n$ 2,288,338\n<\/p>\n<\/td>\n<\/tr>\n | \n| Control investments (cost of $77,901 and $65,257, respectively)<\/td>\n | | \n\n \n66,491\n<\/p>\n<\/td>\n | | \n\n \n57,400\n<\/p>\n<\/td>\n<\/tr>\n | \n| Affiliate investments (cost of $13,307 and $74,450, respectively)<\/td>\n | | \n\n \n9,750\n<\/p>\n<\/td>\n | | \n\n \n8,340\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total investments in securities, at value (cost of $2,398,974 and $2,315,358, respectively)<\/td>\n | | \n\n \n2,521,090\n<\/p>\n<\/td>\n | | \n\n \n2,354,078\n<\/p>\n<\/td>\n<\/tr>\n | \n| Cash and cash equivalents<\/td>\n | | \n\n \n18,447\n<\/p>\n<\/td>\n | | \n\n \n198,282\n<\/p>\n<\/td>\n<\/tr>\n | \n| Restricted cash<\/td>\n | | \n\n \n5,766\n<\/p>\n<\/td>\n | | \n\n \n39,340\n<\/p>\n<\/td>\n<\/tr>\n | \n| Interest receivable<\/td>\n | | \n\n \n19,063\n<\/p>\n<\/td>\n | | \n\n \n19,077\n<\/p>\n<\/td>\n<\/tr>\n | \n| Right of use asset<\/td>\n | | \n\n \n8,039\n<\/p>\n<\/td>\n | | \n\n \n9,278\n<\/p>\n<\/td>\n<\/tr>\n | \n| Other assets<\/td>\n | | \n\n \n6,167\n<\/p>\n<\/td>\n | | \n\n \n3,942\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total assets<\/b><\/td>\n | | \n\n \n$ 2,578,572\n<\/p>\n<\/td>\n | | \n\n \n$ 2,632,997\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Liabilities<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \nDebt (net of debt issuance costs)(1)<\/sup><\/td>\n | \n\n \n$ 1,177,515\n<\/p>\n<\/td>\n | | \n\n \n$ 1,286,638\n<\/p>\n<\/td>\n<\/tr>\n | \n| Accounts payable and accrued liabilities<\/td>\n | | \n\n \n36,886\n<\/p>\n<\/td>\n | | \n\n \n36,343\n<\/p>\n<\/td>\n<\/tr>\n | \n| Operating lease liability<\/td>\n | | \n\n \n7,813\n<\/p>\n<\/td>\n | | \n\n \n9,312\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total liabilities<\/b><\/td>\n | | \n\n \n$ 1,222,214\n<\/p>\n<\/td>\n | | \n\n \n$ 1,332,293\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net assets consist of:<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n| Common stock, par value<\/td>\n | | \n\n \n116\n<\/p>\n<\/td>\n | | \n\n \n115\n<\/p>\n<\/td>\n<\/tr>\n | \n| Capital in excess of par value<\/td>\n | | \n\n \n1,163,910\n<\/p>\n<\/td>\n | | \n\n \n1,158,198\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total distributable earnings<\/td>\n | | \n\n \n192,332\n<\/p>\n<\/td>\n | | \n\n \n133,391\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total net assets<\/b><\/td>\n | | \n\n \n$ 1,356,358\n<\/p>\n<\/td>\n | | \n\n \n$ 1,291,704\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total liabilities and net assets<\/b><\/td>\n | | \n\n \n$ 2,578,572\n<\/p>\n<\/td>\n | | \n\n \n$ 2,623,997\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Shares of common stock outstanding ($0.001 par value, 200,000,000 authorized)<\/b><\/td>\n | | \n\n \n115,867\n<\/p>\n<\/td>\n | | \n\n \n114,726\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net asset value per share<\/b><\/td>\n | | \n\n \n$ 11.71\n<\/p>\n<\/td>\n | | \n\n \n$ 11.26\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | <\/tr>\n \n| (1) The Company\u2019s SBA Debentures, February 2025 Notes, June 2025 Notes, 2033 Notes, April 2025 Notes, 2022 Notes, 2027 Asset-Backed Notes, 2028 Asset-Backed Notes, 2022 Convertible Notes,<\/td>\n<\/tr>\n | \n| July 2024 Notes, and March 2026 A and B Notes, as each term is defined herein, are presented net of the associated debt issuance costs for each instrument.<\/td>\n | | \n | <\/tr>\n<\/table>\n\n\n| HERCULES CAPITAL, INC.<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n| CONSOLIDATED STATEMENTS OF OPERATIONS<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n| (in thousands, except per share data)<\/b><\/td>\n | | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \nThree Months Ended June 30,<\/b><\/td>\n | | \nSix Months Ended June 30,<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n\n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \nInvestment income:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nInterest and dividend income<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNon-control\/Non-affiliate investments<\/td>\n | | \n\n \n$ 60,276\n<\/p>\n<\/td>\n | | \n\n \n$ 62,667\n<\/p>\n<\/td>\n | | \n\n \n$ 123,258\n<\/p>\n<\/td>\n | | \n\n \n$ 128,005\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nControl investments<\/td>\n | | \n\n \n1,029\n<\/p>\n<\/td>\n | | \n\n \n731\n<\/p>\n<\/td>\n | | \n\n \n1,828\n<\/p>\n<\/td>\n | | \n\n \n1,377\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nAffiliate investments<\/td>\n | | \n\n \n1\n<\/p>\n<\/td>\n | | \n\n \n157\n<\/p>\n<\/td>\n | | \n\n \n2\n<\/p>\n<\/td>\n | | \n\n \n377\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal interest income<\/td>\n | | \n\n \n61,306\n<\/p>\n<\/td>\n | | \n\n \n63,555\n<\/p>\n<\/td>\n | | \n\n \n125,088\n<\/p>\n<\/td>\n | | \n\n \n129,759\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nFee income<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nCommitment, facility and loan fee income<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNon-control\/Non-affiliate investments<\/td>\n | | \n\n \n5,263\n<\/p>\n<\/td>\n | | \n\n \n3,511\n<\/p>\n<\/td>\n | | \n\n \n8,666\n<\/p>\n<\/td>\n | | \n\n \n7,707\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nControl investments<\/td>\n | | \n\n \n15\n<\/p>\n<\/td>\n | | \n\n \n5\n<\/p>\n<\/td>\n | | \n\n \n23\n<\/p>\n<\/td>\n | | \n\n \n10\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal commitment, facility and loan fee income<\/td>\n | | \n\n \n5,278\n<\/p>\n<\/td>\n | | \n\n \n3,516\n<\/p>\n<\/td>\n | | \n\n \n8,689\n<\/p>\n<\/td>\n | | \n\n \n7,717\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nOne-time fee income<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNon-control\/Non-affiliate investments<\/td>\n | | \n\n \n2,975\n<\/p>\n<\/td>\n | | \n\n \n897\n<\/p>\n<\/td>\n | | \n\n \n4,541\n<\/p>\n<\/td>\n | | \n\n \n4,111\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal one-time fee income<\/td>\n | | \n\n \n2,975\n<\/p>\n<\/td>\n | | \n\n \n897\n<\/p>\n<\/td>\n | | \n\n \n4,541\n<\/p>\n<\/td>\n | | \n\n \n4,111\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal fee income<\/td>\n | | \n\n \n8,253\n<\/p>\n<\/td>\n | | \n\n \n4,413\n<\/p>\n<\/td>\n | | \n\n \n13,230\n<\/p>\n<\/td>\n | | \n\n \n11,828\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal investment income<\/b><\/td>\n | | \n\n \n69,559\n<\/p>\n<\/td>\n | | \n\n \n67,968\n<\/p>\n<\/td>\n | | \n\n \n138,318\n<\/p>\n<\/td>\n | | \n\n \n141,587\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nOperating expenses:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nInterest<\/td>\n | | \n\n \n14,490\n<\/p>\n<\/td>\n | | \n\n \n15,076\n<\/p>\n<\/td>\n | | \n\n \n29,240\n<\/p>\n<\/td>\n | | \n\n \n29,608\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nLoan fees<\/td>\n | | \n\n \n2,220\n<\/p>\n<\/td>\n | | \n\n \n1,650\n<\/p>\n<\/td>\n | | \n\n \n5,020\n<\/p>\n<\/td>\n | | \n\n \n3,444\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nGeneral and administrative<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nLegal expenses<\/td>\n | | \n\n \n526\n<\/p>\n<\/td>\n | | \n\n \n991\n<\/p>\n<\/td>\n | | \n\n \n954\n<\/p>\n<\/td>\n | | \n\n \n1,890\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTax expenses<\/td>\n | | \n\n \n1,746\n<\/p>\n<\/td>\n | | \n\n \n899\n<\/p>\n<\/td>\n | | \n\n \n3,184\n<\/p>\n<\/td>\n | | \n\n \n2,034\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nOther expenses<\/td>\n | | \n\n \n3,542\n<\/p>\n<\/td>\n | | \n\n \n3,973\n<\/p>\n<\/td>\n | | \n\n \n6,710\n<\/p>\n<\/td>\n | | \n\n \n7,998\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal general and administrative<\/td>\n | | \n\n \n5,814\n<\/p>\n<\/td>\n | | \n\n \n5,863\n<\/p>\n<\/td>\n | | \n\n \n10,848\n<\/p>\n<\/td>\n | | \n\n \n11,922\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nEmployee compensation<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nCompensation and benefits<\/td>\n | | \n\n \n8,349\n<\/p>\n<\/td>\n | | \n\n \n7,180\n<\/p>\n<\/td>\n | | \n\n \n18,153\n<\/p>\n<\/td>\n | | \n\n \n15,394\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nStock-based compensation<\/td>\n | | \n\n \n2,926\n<\/p>\n<\/td>\n | | \n\n \n2,515\n<\/p>\n<\/td>\n | | \n\n \n5,670\n<\/p>\n<\/td>\n | | \n\n \n4,955\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal employee compensation<\/td>\n | | \n\n \n11,275\n<\/p>\n<\/td>\n | | \n\n \n9,695\n<\/p>\n<\/td>\n | | \n\n \n23,823\n<\/p>\n<\/td>\n | | \n\n \n20,349\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal gross operating expenses<\/td>\n | | \n\n \n33,799\n<\/p>\n<\/td>\n | | \n\n \n32,284\n<\/p>\n<\/td>\n | | \n\n \n68,931\n<\/p>\n<\/td>\n | | \n\n \n65,323\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nExpenses allocated to the Adviser Subsidiary<\/td>\n | | \n\n \n(1,204)\n<\/p>\n<\/td>\n | | \n\n \n\u2014\n<\/p>\n<\/td>\n | | \n\n \n(2,137)\n<\/p>\n<\/td>\n | | \n\n \n\u2014\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal net operating expenses<\/b><\/td>\n | | \n\n \n32,595\n<\/p>\n<\/td>\n | | \n\n \n32,284\n<\/p>\n<\/td>\n | | \n\n \n66,794\n<\/p>\n<\/td>\n | | \n\n \n65,323\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nNet investment income<\/b><\/td>\n | | \n\n \n36,964\n<\/p>\n<\/td>\n | | \n\n \n35,684\n<\/p>\n<\/td>\n | | \n\n \n71,524\n<\/p>\n<\/td>\n | | \n\n \n76,264\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nNet realized and change in unrealized appreciation (depreciation) on investments:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNet realized gain (loss) on investments<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNon-control\/Non-affiliate investments<\/td>\n | | \n\n \n47,861\n<\/p>\n<\/td>\n | | \n\n \n141\n<\/p>\n<\/td>\n | | \n\n \n55,631\n<\/p>\n<\/td>\n | | \n\n \n7,108\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nAffiliate investments<\/td>\n | | \n\n \n(62,143)\n<\/p>\n<\/td>\n | | \n\n \n\u2014\n<\/p>\n<\/td>\n | | \n\n \n(62,143)\n<\/p>\n<\/td>\n | | \n\n \n\u2014\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal net realized gain (loss) on investments<\/td>\n | | \n\n \n(14,282)\n<\/p>\n<\/td>\n | | \n\n \n141\n<\/p>\n<\/td>\n | | \n\n \n(6,512)\n<\/p>\n<\/td>\n | | \n\n \n7,108\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nNet change in unrealized appreciation (depreciation) on investments<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nNon-control\/Non-affiliate investments<\/td>\n | | \n\n \n3,075\n<\/p>\n<\/td>\n | | \n\n \n23,613\n<\/p>\n<\/td>\n | | \n\n \n21,097\n<\/p>\n<\/td>\n | | \n\n \n(34,816)\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nControl investments<\/td>\n | | \n\n \n(5,255)\n<\/p>\n<\/td>\n | | \n\n \n2,642\n<\/p>\n<\/td>\n | | \n\n \n(3,553)\n<\/p>\n<\/td>\n | | \n\n \n(5,209)\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nAffiliate investments<\/td>\n | | \n\n \n62,229\n<\/p>\n<\/td>\n | | \n\n \n(315)\n<\/p>\n<\/td>\n | | \n\n \n64,338\n<\/p>\n<\/td>\n | | \n\n \n(10,305)\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal net change in unrealized appreciation (depreciation) on investments<\/td>\n | | \n\n \n60,049\n<\/p>\n<\/td>\n | | \n\n \n25,940\n<\/p>\n<\/td>\n | | \n\n \n81,882\n<\/p>\n<\/td>\n | | \n\n \n(50,330)\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nTotal net realized and change in unrealized appreciation (depreciation) on investments:<\/b><\/td>\n | | \n\n \n45,767\n<\/p>\n<\/td>\n | | \n\n \n26,081\n<\/p>\n<\/td>\n | | \n\n \n75,370\n<\/p>\n<\/td>\n | | \n\n \n(43,222)\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nNet increase (decrease) in net assets resulting from operations<\/b><\/td>\n | | \n\n \n$ 82,731\n<\/p>\n<\/td>\n | | \n\n \n$ 61,765\n<\/p>\n<\/td>\n | | \n\n \n$ 146,894\n<\/p>\n<\/td>\n | | \n\n \n$ 33,042\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \nNet investment income before investment gains and losses per common share:<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nBasic<\/td>\n | | \n\n \n$ 0.32\n<\/p>\n<\/td>\n | | \n\n \n$ 0.32\n<\/p>\n<\/td>\n | | \n\n \n$ 0.62\n<\/p>\n<\/td>\n | | \n\n \n$ 0.69\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nChange in net assets resulting from operations per common share:<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nBasic<\/td>\n | | \n\n \n$ 0.71\n<\/p>\n<\/td>\n | | \n\n \n$ 0.55\n<\/p>\n<\/td>\n | | \n\n \n$ 1.27\n<\/p>\n<\/td>\n | | \n\n \n$ 0.29\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nDiluted<\/td>\n | | \n\n \n$ 0.65\n<\/p>\n<\/td>\n | | \n\n \n$ 0.55\n<\/p>\n<\/td>\n | | \n\n \n$ 1.21\n<\/p>\n<\/td>\n | | \n\n \n$ 0.29\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nWeighted average shares outstanding:<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nBasic<\/td>\n | | \n\n \n114,654\n<\/p>\n<\/td>\n | | \n\n \n111,558\n<\/p>\n<\/td>\n | | \n\n \n114,480\n<\/p>\n<\/td>\n | | \n\n \n110,256\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nDiluted<\/td>\n | | \n\n \n129,572\n<\/p>\n<\/td>\n | | \n\n \n111,729\n<\/p>\n<\/td>\n | | \n\n \n122,188\n<\/p>\n<\/td>\n | | \n\n \n110,504\n<\/p>\n<\/td>\n<\/tr>\n | \n | \nDistributions paid per common share:<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \nBasic<\/td>\n | | \n\n \n$ 0.39\n<\/p>\n<\/td>\n | | \n\n \n$ 0.32\n<\/p>\n<\/td>\n | | \n\n \n$ 0.76\n<\/p>\n<\/td>\n | | \n\n \n$ 0.72\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0\n<\/p>\n ![\"\"](\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&sty=20210729005948r1&sid=flmnd&distro=nx&lang=en\") <\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210729005948\/en\/<\/a><\/span><\/p>\n\nMichael Hara
\n
Investor Relations and Corporate Communications
\n
Hercules Capital, Inc.
\n
650-433-5578
\n
mhara@htgc.com<\/a><\/p>\nKEYWORDS:<\/b> United States North America California<\/p>\n INDUSTRY KEYWORDS:<\/b> Professional Services Finance<\/p>\n MEDIA:<\/b><\/p>\n\n\nLogo<\/b><\/font><\/td>\n<\/tr>\n\n![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20210729005948\/en\/511269\/3\/New_logo_hi_res.jpg\") <\/td>\n<\/tr>\n | \n| <\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":" Hercules Capital Reports Second Quarter 2021 Financial Results Record Year-to-Date Total Debt and Equity Commitments of $971.7 Million Record Year-to-Date Total Fundings of $634.0 Million Surpassed $12.0 Billion in Cumulative Total Debt Commitments since Inception Q2 2021 Net Asset Value per Share Increased 3.1% to $11.71 from Q1 2021 Record Undistributed Earnings Spillover of $160.2 Million, or $1.38(1) per Ending Shares Outstanding Q2 2021 Financial Achievements and Highlights Net Investment Income \u201cNII\u201d of $37.0 million, or $0.32 per share, an increase of 3.6% year-over-year Total Investment Income of $69.6 million, an increase of 2.3% year-over-year Total gross new debt and equity commitments of $440.8 million Net Hercules\u2019 debt and equity commitments of $399.7 million(2) Total gross fundings of $278.7 million … <\/p>\n Continue reading “Hercules Capital Reports Second Quarter 2021 Financial Results”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-520345","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n | | | | | | | | | | | | | | | | | | | | | | |