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) Ind ...

April 29, 2021 FIRST QUARTER 2021 INVESTOR PRESENTATION Financing the Growth of Tomorrow's Companies TodayTM IMPORTANT NOTICE: FORWARD LOOKING STATEMENTS This presentation may contain "forward-looking statements" 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 "safe harbor" provisions ...

Hercules Capital, Inc. (NYSE:HTGC) Q1 2021 Earnings Conference Call April 29, 2021 5:00 PM ET Company Participants Michael Hara - MD of IR Scott Bluestein - CEO Seth Meyer - CFO Conference Call Participants Finian O'Shea - Wells Fargo Securities Crispin Love - Piper Sandler Devin Ryan - JMP Securities Ryan Lynch - KBW Sarkis Sherbetchyan - B. Riley Securities Casey Alexander - Compass Point Christopher Nolan - Ladenburg Thalmann John Hecht - Jefferies Operator Ladies and gentlemen, thank you for stand ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 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. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ (Exact Nam ...

Financial Performance Highlights - Net Investment Income (NII) reached $42.2 million, a 5.1% year-over-year increase[8] - Total Investment Income amounted to $75.3 million, reflecting a 6.7% year-over-year growth[8] - The company reported a Net Interest Margin (NIM) of 10.3%[8] - The Return on Average Equity (ROAE) was 13.8%[8] - The Return on Average Assets (ROAA) was 6.6%[8] Portfolio and Investment Activity - Total Debt Investments at cost stood at $2.10 billion[8] - Total Investments at cost reached $2.32 billion[8] - The effective yield on the portfolio was 13.3%[8] - Since inception, the company has made $11.1 billion in total debt commitments[8] Capitalization and Liquidity - Available liquidity was $673.3 million[8] - The price-to-NAV ratio was 1.39x as of February 19, 2021[8]

Hercules Capital, Inc. (NYSE:HTGC) Q4 2020 Earnings Conference Call February 23, 2021 5:00 PM ET Company Participants Michael Hara - IR and Corporate Communications Scott Bluestein - CEO and Chief Investment Officer Seth Meyer - CFO Conference Call Participants Crispin Love - Piper Sandler Devin Ryan - JMP Securities Christopher Nolan - Ladenburg Thalmann Finian O'Shea - Wells Fargo Securities Ryan Lynch - KBW John Hecht - Jefferies Sarkis Sherbetchyan - B Riley Securities Casey Alexander - Compass Point Op ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) Hercules Capital, Inc. is an internally managed BDC and RIC providing senior secured loans to high-growth, venture-backed companies in technology, life sciences, and sustainable technology sectors - The company is a specialty finance firm providing senior secured loans to high-growth, venture capital-backed companies in technology, life sciences, and sustainable/renewable technology industries[22](index=22&type=chunk)[23](index=23&type=chunk) - The primary investment strategy involves structured debt with warrants, designed to generate current income and potential capital appreciation[24](index=24&type=chunk)[25](index=25&type=chunk) - Operates two wholly-owned SBIC subsidiaries, HT III and HC IV, with HT III holding approximately **$201.2 million in assets** (7.7% of total assets) and HC IV providing access to an additional **$175.0 million in SBA debentures**[26](index=26&type=chunk)[27](index=27&type=chunk) - The company is an internally managed BDC and has elected to be treated as a RIC for tax purposes, requiring distribution of at least **90% of its taxable income**[32](index=32&type=chunk)[34](index=34&type=chunk) - The investment portfolio is monitored using a 5-point grading system (1=highest quality, 5=workout), with a weighted average investment grade of **2.16** as of December 31, 2020[91](index=91&type=chunk) - As of December 31, 2020, the company employed **82 professionals**, with over **40% being women** and over **35% from diverse ethnic backgrounds**[101](index=101&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its BDC structure, substantial indebtedness, concentrated portfolio in volatile sectors, and the ongoing impact of the COVID-19 pandemic - As an internally managed BDC, the company is dependent on key management personnel and may face limitations in compensation flexibility compared to externally managed peers[187](index=187&type=chunk)[188](index=188&type=chunk) - The company operates with substantial indebtedness and an asset coverage ratio of **150%**, which increases leverage and magnifies potential gains and losses[200](index=200&type=chunk)[201](index=201&type=chunk) - The investment portfolio is highly concentrated in specific technology-related industries, with **87.2% of the portfolio's fair value** in the Software, Drug Discovery & Development, and Internet Consumer & Business Services industries as of year-end 2020[273](index=273&type=chunk)[274](index=274&type=chunk) - The COVID-19 pandemic has negatively impacted the global economy and may disrupt operations, impair portfolio companies' ability to repay loans, and increase credit risk[388](index=388&type=chunk)[389](index=389&type=chunk) - The discontinuation of LIBOR presents a risk, as it may affect the value of financial obligations and require renegotiation of credit agreements for both assets and liabilities[256](index=256&type=chunk)[258](index=258&type=chunk) - The company's common stock may trade below its NAV per share, which could limit its ability to raise additional equity capital without stockholder approval and cause dilution[347](index=347&type=chunk)[350](index=350&type=chunk) [Unresolved SEC Staff Comments](index=72&type=section&id=Item%201B.%20Unresolved%20SEC%20Staff%20Comments) The company reports no unresolved comments from the SEC staff - There are no unresolved staff comments as of the report date[430](index=430&type=chunk) [Properties](index=72&type=section&id=Item%202.%20Properties) The company leases all its office spaces, including its principal executive offices, and does not own any real estate - The company leases all its office spaces, including its principal executive offices in Palo Alto, CA, and does not own any real estate[431](index=431&type=chunk) [Legal Proceedings](index=72&type=section&id=Item%203.%20Legal%20Proceedings) The company does not expect any current legal proceedings to materially impact its financial condition or operations - The company is not currently involved in any legal proceedings that are expected to have a material adverse effect on its financial condition[432](index=432&type=chunk) [Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine safety disclosures are not applicable[433](index=433&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=73&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with a variable distribution policy and no share repurchases in 2020 Quarterly Stock Price and Distribution Data (2020) | Quarter | NAV per Share ($) | High Price ($) | Low Price ($) | High as % of NAV | Low as % of NAV | Distribution per Share ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Q1 2020 | 9.92 | 15.99 | 6.81 | 61.2% | -31.4% | 0.320 | | Q2 2020 | 10.19 | 11.83 | 6.64 | 16.1% | -34.8% | 0.320 | | Q3 2020 | 10.26 | 11.97 | 10.02 | 16.7% | -2.3% | 0.340 | | Q4 2020 | 11.26 | 14.42 | 11.13 | 28.1% | -1.2% | 0.370 | - The company's Board of Directors maintains a variable distribution policy with the objective of distributing **90-100% of its taxable quarterly or annual income**[452](index=452&type=chunk) - A stock repurchase plan for up to **$25.0 million** expired on June 18, 2019, with no shares repurchased during 2020 or 2019[447](index=447&type=chunk) - On February 17, 2021, the Board declared a Q1 2021 cash distribution of **$0.32 per share** plus a supplemental cash distribution of **$0.05 per share**[451](index=451&type=chunk) [Selected Consolidated Financial Data](index=76&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This section summarizes key financial data from 2016 to 2020, showing growth in total assets and net assets, and detailing 2020 investment income and net asset increase Selected Financial Data (in thousands, except per share) | (in thousands, except per share) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Balance Sheet Data:** | | | | | Total Assets | $2,623,997 | $2,461,968 | $1,945,191 | | Total Net Assets | $1,291,704 | $1,133,049 | $955,444 | | NAV per Share | $11.26 | $10.55 | $9.90 | | **Operations Data:** | | | | | Total Investment Income | $287,258 | $267,874 | $207,753 | | Net Investment Income | $157,140 | $143,272 | $108,729 | | Net Increase in Net Assets | $227,261 | $173,598 | $76,496 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=78&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses 2020 financial performance, highlighting portfolio growth, increased investment income, net unrealized appreciation, strong liquidity, and regulatory asset coverage, while noting COVID-19 impacts Portfolio Activity (Year Ended Dec 31, in millions) | (in millions) | 2020 | 2019 | | :--- | :--- | :--- | | New Debt Commitments | $1,173.1 | $1,457.1 | | Total Funded Investments | $761.3 | $1,025.7 | | Early Principal Repayments | $709.0 | $526.8 | Portfolio Yields | Yield Type | 2020 | 2019 | | :--- | :--- | :--- | | Weighted Average Core Yield | 11.6% | 12.5% | | Weighted Average Effective Yield | 12.9% | 13.4% | - Net realized losses were **$(56.1) million** in 2020, compared to net realized gains of **$16.5 million** in 2019, primarily from write-offs of several debt and equity investments[529](index=529&type=chunk)[530](index=530&type=chunk) - Net unrealized appreciation was **$126.2 million** in 2020, a significant increase from **$13.8 million** in 2019, driven by **$109.7 million** in net unrealized appreciation from the equity and warrant portfolios[531](index=531&type=chunk)[533](index=533&type=chunk) - As of December 31, 2020, the company had **$673.3 million in available liquidity**, including **$198.3 million** in cash and cash equivalents and available credit facilities[571](index=571&type=chunk) - The company's regulatory asset coverage ratio was **207.5%** (excluding SBA debentures), comfortably above the required minimum of **150%**[581](index=581&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=96&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, with most loans having floating rates and floors, and a sensitivity analysis showing the impact of rate changes on net income - The company's main market risk is from changes in interest rates, with **96.9% of the loan portfolio** having variable interest rates, primarily based on Prime or LIBOR with floors as of December 31, 2020[614](index=614&type=chunk) Interest Rate Sensitivity Analysis (Annualized) | Basis Point Change | Net Income Impact (in thousands) | EPS Impact | | :--- | :--- | :--- | | +100 | $8,797 | $0.08 | | +50 | $4,462 | $0.04 | | -25 | $19 | $0.00 | | -75 | $74 | $0.00 | - The company did not engage in any interest rate or foreign currency hedging activities during the year ended December 31, 2020[617](index=617&type=chunk) [Financial Statements and Supplementary Data](index=97&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements, including the unqualified auditor's report, and detailed notes on accounting policies, fair value measurement, borrowings, and commitments - The Report of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP) provides an unqualified opinion on the financial statements and effectiveness of internal controls, identifying the valuation of Level 3 investments as a critical audit matter due to significant management judgment[626](index=626&type=chunk)[634](index=634&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31, 2020, in thousands) | (in thousands) | Amount | | :--- | :--- | | Total Investments, at fair value | $2,354,078 | | Total Assets | $2,623,997 | | Total Liabilities | $1,332,293 | | Total Net Assets | $1,291,704 | Consolidated Operations Highlights (Year Ended Dec 31, 2020, in thousands) | (in thousands) | Amount | | :--- | :--- | | Total Investment Income | $287,258 | | Net Investment Income | $157,140 | | Net Realized (Loss) on Investments | $(56,105) | | Net Change in Unrealized Appreciation | $126,226 | | Net Increase in Net Assets | $227,261 | - Note 3 (Fair Value) shows that of the **$2.35 billion in investments**, **$2.20 billion** are classified as Level 3, indicating reliance on significant unobservable inputs for valuation[788](index=788&type=chunk)[791](index=791&type=chunk) - Note 5 (Borrowings) details approximately **$1.3 billion** in outstanding principal from various sources, including SBA Debentures, multiple series of notes, and convertible notes[826](index=826&type=chunk) - Note 11 (Commitments and Contingencies) discloses approximately **$179.8 million** in unfunded commitments to portfolio companies and investment funds as of December 31, 2020[946](index=946&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=170&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable as there were no changes in or disagreements with accountants on accounting and financial disclosure - Not Applicable[964](index=964&type=chunk) [Controls and Procedures](index=170&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no material changes reported - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[965](index=965&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was effective as of December 31, 2020, based on the COSO framework[969](index=969&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, such controls[971](index=971&type=chunk) [Other Information](index=171&type=section&id=Item%209B.%20Other%20Information) This section provides updated tables for fees, expenses, and senior securities, detailing annual expenses and regulatory asset coverage ratios Annual Expenses (as a percentage of net assets) | Expense Category | Percentage | | :--- | :--- | | Operating expenses | 5.49% | | Interest and fees paid on borrowed funds | 5.81% | | **Total annual expenses** | **11.30%** | - The Senior Securities table shows total outstanding senior securities of **$1.3 billion** as of December 31, 2020[984](index=984&type=chunk) - As of December 31, 2020, the company's regulatory asset coverage ratio was **207.5%** (excluding SBA debentures) and **199.3%** (including SBA debentures)[987](index=987&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=175&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - This information is incorporated by reference from the definitive Proxy Statement for the 2021 Annual Meeting of Shareholders[989](index=989&type=chunk) [Executive Compensation](index=175&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement - This information is incorporated by reference from the definitive Proxy Statement for the 2021 Annual Meeting of Shareholders[990](index=990&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=175&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2021 Proxy Statement - This information is incorporated by reference from the definitive Proxy Statement for the 2021 Annual Meeting of Shareholders[991](index=991&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=175&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the 2021 Proxy Statement - This information is incorporated by reference from the definitive Proxy Statement for the 2021 Annual Meeting of Shareholders[992](index=992&type=chunk) [Principal Accountant Fees and Services](index=175&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2021 Proxy Statement - This information is incorporated by reference from the definitive Proxy Statement for the 2021 Annual Meeting of Shareholders[993](index=993&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=176&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section provides an index of all financial statements, schedules, and exhibits filed with the annual report[996](index=996&type=chunk)[1014](index=1014&type=chunk) [Form 10-K Summary](index=176&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[997](index=997&type=chunk)

October 29, 2020 THIRD QUARTER 2020 INVESTOR PRESENTATION Financing the Growth of Tomorrow's Companies TodayTM IMPORTANT NOTICE: FORWARD LOOKING STATEMENTS This presentation may contain "forward-looking statements" 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 "safe harbor" provisio ...

Financial Data and Key Metrics Changes - In Q3 2020, Hercules Capital generated total investment income of $70.3 million, an increase of 3.5% compared to the prior quarter, and net investment income of $38.7 million or $0.34 per share, reflecting a $3 million or $0.02 per share increase from the previous quarter [21][49] - Year-to-date, total investment income reached $211.9 million, up 7.4% year-over-year, while net investment income increased by 11.4% year-over-year to $115 million [21][22] - The weighted average internal credit rating improved to 2.22 in Q3 from 2.30 in Q2, with rate 1 and 2 credits increasing to 64.4% from 59.7% [24][25] Business Line Data and Key Metrics Changes - Hercules Capital originated over $514 million in new debt and equity commitments in Q3, with gross fundings of nearly $266 million [15][21] - The investment activity was skewed slightly more towards life sciences companies, with strong performance from both technology and life sciences teams [17][18] - The debt investment portfolio grew by $4.8 million at cost and $48.2 million at fair value during the quarter [20] Market Data and Key Metrics Changes - The venture capital ecosystem raised a total of $56.6 billion and invested over $112 billion in the U.S. through the first three quarters of 2020, indicating strong market activity despite the pandemic [41][118] - Approximately 90% of current life sciences debt investments at cost are in publicly traded companies, with a weighted average public market capitalization of about $1.5 billion [39] Company Strategy and Development Direction - Hercules Capital continues to focus on maximizing liquidity, ensuring balance sheet strength, and maintaining operational flexibility amid the pandemic [12][29] - The company emphasizes diversification and controlled growth, particularly in technology and life sciences sectors, which provide a competitive advantage [16][18] - The recent approval of a new SBA license allows Hercules to access an additional $175 million of flexible capital, enhancing its liquidity position [31][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and investment opportunities, noting a strong pipeline exceeding $1 billion [70][118] - The company anticipates early payoffs in Q4 to be between $100 million and $150 million, although this could change [31][60] - The core yield guidance remains at 11% to 12% for the remainder of 2020, with expectations for SG&A expenses to be slightly lower than prior guidance [59][60] Other Important Information - Hercules Capital wrote off two impaired loans during the quarter, which had been on non-accrual, but overall credit performance remained solid [14][25] - The company has a cumulative investment of over $11 billion in venture and growth stage companies since inception [23] Q&A Session Summary Question: Can you provide details on the improvements in credit quality? - Management noted that the migration of grade three loans to grade two was primarily driven by successful fundraising activities, with no specific credit trends indicating broader issues [64][65] Question: Are there more opportunities with new companies compared to earlier in the year? - Management indicated a strong pipeline of approximately $1 billion, with continued selectivity in evaluating new deals [70][72] Question: What attributes contribute to the strong credit quality and competitive positioning? - The quality and experience of the investment team were highlighted as key factors, along with strong fundamentals in the venture capital ecosystem [78][80] Question: Can you provide an update on Gibraltar? - Gibraltar continues to perform well, benefiting from the current environment for credit-oriented ABL lenders [81] Question: How do you view the cadence of investing in the near term? - Management acknowledged that Q3 was typically a slow quarter but noted strong performance this year, with ongoing activity into Q4 [82][85] Question: Can you update on the Strategic Initiatives regarding the RIA? - Management confirmed the exploration of opportunities following the SEC's no-action relief for creating a registered investment advisor [88][90] Question: What was the nature of the recent exits? - The two exited loans were previously impaired, with one linked to COVID impacts and the other being a long-term non-accrual situation [92][95] Question: How did you achieve strong funding despite a virtual environment? - The investment team adapted well to remote work, leveraging technology and existing relationships to conduct due diligence effectively [100][102] Question: Can you provide details on the equity positions sold during the quarter? - Management clarified that no larger equity positions were liquidated, focusing instead on smaller names [124] Question: How will the new SPI subsidiary be funded? - The plan involves putting in additional equity into the SPV as needed to draw down debentures [125] Question: Has the remote working environment led to operational efficiencies? - Management stated it is too early to determine long-term efficiencies related to real estate and operations [127]

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 September 30, 2020 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 ...