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CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES (Tables)

9 Months Ended

Sep. 30, 2023

Investments in and Advances to Affiliates [Abstract]

Schedule of Investments in and Advances to Affiliates

(in thousands)						Investment(1)						Amount of Interest and Fees Credited to Income(2)						Realized Gain (Loss)						Fair Value as of December 31, 2022						Gross Additions(3)						Gross Reductions(4)						Net Change in Unrealized Appreciation/ (Depreciation)						Fair Value as of September 30, 2023
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(8)						Preferred Stock						$	—					$	—					$	313					$	—					$	—					$	(68)					$	245
						Common Stock						—						—						6						—						—						(4)						2
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(5)						Unsecured Debt						2,359						—						21,700						9,872						—						2,867						34,439
						Member Units						—						—						15,244						4,500						—						1,809						21,553
Hercules Adviser LLC(6)						Unsecured Debt						455						—						12,000						—						—						—						12,000
						Member Units						—						—						19,153						—						—						9,515						28,668
Total Majority Owned Control Investments												$	2,814					$	—					$	68,416					$	14,372					$	—					$	14,119					$	96,907
Other Control Investments
Tectura Corporation(7)						Senior Debt						$	516					$	—					$	8,042					$	—					$	—					$	(1,799)					$	6,243
						Preferred Stock						—						—						—						—						—						—						—
						Common Stock						—						—						—						—						—						—						—
Total Other Control Investments												$	516					$	—					$	8,042					$	—					$	—					$	(1,799)					$	6,243
Total Control Investments												$	3,330					$	—					$	76,458					$	14,372					$	—					$	12,320					$	103,150

(1)Stock and warrants are generally non-income producing and restricted.

(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.

(5)As of March 31, 2018, the Company's investment in Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC) became classified as a control investment as a result of obtaining a controlling financial interest. Gibraltar Acquisition LLC is a wholly-owned subsidiary, which is the holding company for their wholly-owned affiliated portfolio companies, Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC. The subsidiary has no significant assets or liabilities, other than their equity and debt investments and equity interest in Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC, respectively.

(6)Hercules Adviser LLC is owned by Hercules Capital Management LLC and presented with Hercules Partner Holdings, LLC which are both wholly owned by the Company. Please refer to “Note 1” for additional disclosure.

(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.

(8)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company

Schedule 12 – 14

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

For the Nine Months Ended September 30, 2022 (unaudited)

(in thousands)						Investment(1)						Amount of Interest and Fees Credited to Income(2)						Realized Gain (Loss)						Fair Value as of December 31, 2021						Gross Additions(3)						Gross Reductions(4)						Net Change in Unrealized Appreciation/ (Depreciation)						Fair Value as of September 30, 2022
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC(10)						Preferred Stock						$	—					$	—					$	500					$	—					$	—					$	(109)					$	391
						Common Stock						—						—						65						—						—						(56)						9
Gibraltar Business Capital, LLC (5)						Unsecured Debt						2,581						—						23,212						60						—						(1,233)						22,039
						Preferred Stock						—						—						19,393						—						—						(4,904)						14,489
						Common Stock						—						—						1,225						—						—						(91)						1,134
Hercules Adviser LLC (6)						Unsecured Debt						393						—						8,850						3,150						—						—						12,000
						Member Units						—						—						11,990						—						—						9,955						21,945
Total Majority Owned Control Investments												$	2,974					$	—					$	65,235					$	3,210					$	—					$	3,562					$	72,007
Other Control Investments
Tectura Corporation(7)						Senior Debt						$	516					$	—					$	8,269					$	—					$	—					$	49					$	8,318
						Preferred Stock						—						—						—						—						—						—						—
						Common Stock						—						—						—						—						—						—						—
Total Other Control Investments												$	516					$	—					$	8,269					$	—					$	—					$	49					$	8,318
Total Control Investments												$	3,490					$	—					$	73,504					$	3,210					$	—					$	3,611					$	80,325
Affiliate Investments
Black Crow AI, Inc. (8)						Preferred Stock						$	—					$	3,772					$	1,120					$	—					$	(1,000)					$	(120)					$	—
Pineapple Energy LLC (9)						Senior Debt						1,204						(2,014)						7,747						—						(7,780)						33						—
						Common Stock						—						—						591						—						(4,767)						4,176						—
Total Affiliate Investments												$	1,204					$	1,758					$	9,458					$	—					$	(13,547)					$	4,089					$	—
Total Control and Affiliate Investments												$	4,694					$	1,758					$	82,962					$	3,210					$	(13,547)					$	7,700					$	80,325

(1)Stock and warrants are generally non-income producing and restricted.

(2)Represents the total amount of interest, fees, or dividends credited to income for the period an investment was an affiliate or control investment.

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, paid-in-kind interest or dividends, the amortization of discounts and closing fees and the exchange of one or more existing securities for one or more new securities.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include previously recognized depreciation on investments that become control or affiliate investments during the period.

(5)As of March 31, 2018, the Company's investment in Gibraltar Business Capital, LLC became classified as a control investment as a result of obtaining a controlling financial interest.

(6)Hercules Adviser LLC is a wholly-owned subsidiary providing investment management and other services to External Parties.

(7)As of March 31, 2017, the Company's investment in Tectura Corporation became classified as a control investment as of result of obtaining more than 50% representation on the portfolio company's board. In May 2018, the Company purchased common shares, thereby obtaining greater than 25% of voting securities of Tectura as of June 30, 2018.

(8)During the nine months ended September 30, 2022, the Company sold its investments in Black Crow AI, Inc., as a result it is no longer an affiliate investment.

(9)As of December 11, 2020, the Company's investment in Pineapple Energy LLC became classified as an affiliate investment as a result of obtaining more than 5% but less than 25% of the voting securities of the portfolio company.

(10)As of December 31, 2021, the Company's investment in Coronado Aesthetics, LLC became classified as a control investment as a result of obtaining more than 25% of the voting securities of the portfolio company.

Schedule 12 – 14

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

As of September 30, 2023 (unaudited)

(in thousands)						Industry						Type of Investment (1)						Maturity Date						Interest Rate and Floor						Principal or Shares						Cost						Value (2)
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC						Medical Devices & Equipment						Preferred Series A Equity																		5,000,000						$	250					$	245
						Medical Devices & Equipment						Common Stock																		180,000						—						2
Total Coronado Aesthetics, LLC																																				$	250					$	247
Gibraltar Acquisition LLC (p.k.a. Gibraltar Business Capital, LLC)(3)						Diversified Financial Services						Unsecured Debt						September 2026						Interest rate FIXED 11.50%						$	25,000					24,638						24,638
						Diversified Financial Services						Unsecured Debt						September 2026						Interest rate FIXED 11.95%						$	10,000					9,801						9,801
						Diversified Financial Services						Member Units																		1						32,506						21,553
Total Gibraltar Acquisition, LLC																																				$	66,945					$	55,992
Hercules Adviser LLC(4)						Diversified Financial Services						Unsecured Debt						June 2025						Interest rate FIXED 5.00%						$	12,000					12,000						12,000
						Diversified Financial Services						Member Units																		1						35						28,668
Total Hercules Adviser LLC																																				$	12,035					$	40,668
Total Majority Owned Control Investments (5.87%)*																																				$	79,230					$	96,907
Other Control Investments
Tectura Corporation						Consumer & Business Services						Senior Secured Debt						July 2024						PIK Interest 5.00%						$	23,703					$	13,263					$	—
						Consumer & Business Services						Senior Secured Debt						July 2024						Interest rate FIXED 8.25%						$	8,250					8,250						6,243
						Consumer & Business Services						Preferred Series BB Equity																		1,000,000						—						—
						Consumer & Business Services						Common Stock																		414,994,863						900						—
Total Tectura Corporation																																				$	22,413					$	6,243
Total Other Control Investments (0.37%)*																																				$	22,413					$	6,243
Total Control Investments (6.24%)*																																				$	101,643					$	103,150

*Value as a percent of net assets

(1)Stock and warrants are generally non-income producing and restricted.

(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.

(3)Gibraltar Acquisition LLC is a wholly-owned subsidiary, which is the holding company for their wholly-owned affiliated portfolio companies, Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC. The subsidiary has no significant assets or liabilities, other than their equity and debt investments and equity interest in Gibraltar Business Capital, LLC and Gibraltar Equipment Finance, LLC, respectively.

(4)Hercules Adviser LLC is owned by Hercules Capital Management LLC and presented with Hercules Partner Holdings, LLC which are both wholly owned by the Company. Please refer to “Note 1” for additional disclosure.

Schedule 12 – 14

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

As of and for the year ended December 31, 2022

(in thousands)						Industry						Type of Investment (1)						Maturity Date						Interest Rate and Floor						Principal or Shares						Cost						Value (2)
Portfolio Company
Control Investments
Majority Owned Control Investments
Coronado Aesthetics, LLC						Medical Devices & Equipment						Preferred Series A Equity																		5,000,000						$	250					$	313
						Medical Devices & Equipment						Common Stock																		180,000						—						6
Total Coronado Aesthetics, LLC																																				$	250					$	319
Gibraltar Business Capital, LLC						Diversified Financial Services						Unsecured Debt						September 2026						Interest rate FIXED 14.50%						$	15,000					14,715						12,802
						Diversified Financial Services						Unsecured Debt						September 2026						Interest rate FIXED 11.50%						$	10,000					9,852						8,898
						Diversified Financial Services						Preferred Series A Equity																		10,602,752						26,122						14,137
						Diversified Financial Services						Common Stock																		830,000						1,884						1,107
Total Gibraltar Business Capital, LLC																																				$	52,573					$	36,944
Hercules Adviser LLC						Diversified Financial Services						Unsecured Debt						June 2025						Interest rate FIXED 5.00%						$	12,000					12,000						12,000
						Diversified Financial Services						Member Units																		1						35						19,153
Total Hercules Adviser LLC																																				$	12,035					$	31,153
Total Majority Owned Control Investments (4.88%)*																																				$	64,858					$	68,416
Other Control Investments
Tectura Corporation						Consumer & Business Services						Senior Secured Debt						July 2024						PIK Interest 5.00%						$	10,680					$	240					$	—
						Consumer & Business Services						Senior Secured Debt						July 2024						Interest rate FIXED 8.25%						$	8,250					8,250						8,042
						Consumer & Business Services						Senior Secured Debt						July 2024						PIK Interest 5.00%						$	13,023					13,023						—
						Consumer & Business Services						Preferred Series BB Equity																		1,000,000						—						—
						Consumer & Business Services						Common Stock																		414,994,863						900						—
Total Tectura Corporation																																				$	22,413					$	8,042
Total Other Control Investments (0.58%)*																																				$	22,413					$	8,042
Total Control Investments (5.46%)*																																				$	87,271					$	76,458

*Value as a percent of net assets

(1)Stock and warrants are generally non-income producing and restricted.

(2)All of the Company’s control and affiliate investments are Level 3 investments valued using significant unobservable inputs.

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- Definition

A tabular presentation of the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates, as prescribed by the SEC. It reflects specified information about ownership, financial results from, and financial position in such entities. Includes the tabular presentations that disaggregate investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates.

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