180 DEGREE CAPITAL CORP. |
(Exact Name of Registrant as Specified in Its Charter) |
7 N. Willow Street, Suite 4B, Montclair NJ | 07042 | |
(Address of Principal Executive Offices) | (Zip Code) |
Daniel B. Wolfe President and Chief Financial Officer 180 Degree Capital Corp. 7 N. Willow Street, Suite 4B Montclair, NJ 07042 |
(Name and address of agent for service) |
Copy to: John J. Mahon, Esq. Schulte Roth & Zabel, LLP 1152 Fifteenth Street, NW Suite 850 Washington, DC 20005 (202) 729-7477 |
• | The price we pay relative to the business we buy is the most important driver of investment returns. |
• | The public markets continuously overreact to near-term or environmental challenges in certain stocks, thus creating attractive valuations and buying opportunities. |
• | Out-of-favor companies and industries create opportunities to identify investments that offer asymmetric return to risk potential. |
• | Companies with strong franchises, managements, and balance sheets are best positioned for turnarounds, increased market share, and improved profitability. |
• | A portfolio of strong business franchises, purchased at the right price, outperforms over a market cycle. |
180 DEGREE CAPITAL CORP. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) |
June 30, 2017 | |||
ASSETS | |||
Investments, in portfolio securities at value: | |||
Unaffiliated privately held companies (cost: $13,413,900) | $ | 16,061,037 | |
Unaffiliated rights to milestone payments (adjusted cost basis: $548,998) | 2,239,142 | ||
Unaffiliated publicly traded securities (cost: $10,278,446) | 9,389,135 | ||
Non-controlled affiliated privately held companies (cost: $47,544,536) | 32,060,980 | ||
Non-controlled affiliated publicly traded companies (cost: $16,843,447) | 8,311,524 | ||
Controlled affiliated privately held companies (cost: $19,349,898) | 4,371,659 | ||
Equity method privately held company (adjusted cost basis: $158,283) | 158,283 | ||
Total, investments in private portfolio companies, rights to milestone payments and public securities at value (cost: $108,137,508) | $ | 72,591,760 | |
Cash | 4,877,878 | ||
Restricted funds | 46,151 | ||
Receivable from funds in escrow from sales of investments at value | 13,203 | ||
Receivable from portfolio companies | 11,306 | ||
Interest receivable | 490,906 | ||
Prepaid expenses | 168,581 | ||
Other assets | 103,762 | ||
Total assets | $ | 78,303,547 | |
LIABILITIES & NET ASSETS | |||
Post retirement plan liabilities | $ | 1,284,474 | |
Accrued severance | 404,066 | ||
Accounts payable and accrued liabilities | 368,573 | ||
Deferred rent | 118,136 | ||
Payable for purchases of investments | 116,425 | ||
Total liabilities | $ | 2,291,674 | |
Commitments and contingencies (Note 11) | |||
Net assets | $ | 76,011,873 | |
Net assets are comprised of: | |||
Preferred stock, $0.10 par value, 2,000,000 shares authorized; none issued | $ | 0 | |
Common stock, $0.01 par value, 45,000,000 shares authorized at 6/30/17; 34,623,341 issued at 6/30/17 | 334,594 | ||
Additional paid in capital | 215,159,282 | ||
Accumulated net operating and realized loss | (99,526,475 | ) | |
Accumulated unrealized depreciation of investments | (35,545,748 | ) | |
Accumulated other comprehensive income | 195,745 | ||
Treasury stock, at cost (3,501,779 shares at 6/30/17) | (4,605,525 | ) | |
Net assets | $ | 76,011,873 | |
Shares outstanding | 31,121,562 | ||
Net asset value per outstanding share | $ | 2.44 |
180 DEGREE CAPITAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
Six Months Ended June 30, 2017 | |||
Income: | |||
Interest from: | |||
Unaffiliated companies | $ | 10,463 | |
Non-controlled affiliated companies | 264,116 | ||
Controlled affiliated companies | 101,490 | ||
Cash and U.S. Treasury securities and other | 5,333 | ||
Fees for providing managerial assistance to portfolio companies | 218,306 | ||
Yield-enhancing fees on debt securities | 76,114 | ||
Other income | 12,060 | ||
Total income | 687,882 | ||
Operating expenses: | |||
Salaries, benefits and stock-based compensation (Note 7) | 337,358 | ||
Administration and operations | 184,845 | ||
Professional fees | 279,287 | ||
Rent | 139,361 | ||
Insurance expense | 120,623 | ||
Directors' fees and expenses | 128,172 | ||
Custody fees | 15,945 | ||
Depreciation | 19,856 | ||
Total operating expenses | 1,225,447 | ||
Expenses related to restructure: | |||
Severance | 520,619 | ||
Loss on abandoned lease | 139,778 | ||
Professional fees | 138,402 | ||
Disposal of fixed assets | 94,592 | ||
Administration and operations | 82,235 | ||
Directors' fees and expenses | 60,833 | ||
Other | (69,361 | ) | |
Total expenses related to restructure | 967,098 | ||
Total expenses | 2,192,545 | ||
Net operating loss | (1,504,663 | ) | |
Net realized loss | |||
Realized gain (loss) from investments: | |||
Unaffiliated companies | 130,522 | ||
Controlled affiliated companies | (1,788,463 | ) | |
Unaffiliated rights to milestone payments | (232,865 | ) | |
Publicly traded companies | (45,489 | ) | |
Realized loss from investments | (1,936,295 | ) | |
Income tax expense | 5,273 | ||
Net realized loss from investments | (1,941,568 | ) | |
Net decrease (increase) in unrealized depreciation on investments: | |||
Unaffiliated companies | 1,036,723 | ||
Controlled affiliated companies | 694,263 | ||
Unaffiliated rights to milestone payments | (67,346 | ) | |
Non-controlled affiliated companies | 774,299 | ||
Publicly traded non-controlled affiliated companies | 4,023,003 | ||
Publicly traded unaffiliated companies | 1,586,336 | ||
Net decrease in unrealized depreciation on investments | 8,047,278 | ||
Net realized and unrealized gain on investments | 6,105,710 | ||
Share of loss on equity method investment | (20,077 | ) | |
Net increase in net assets resulting from operations: | |||
Total | $ | 4,580,970 | |
Per average basic and diluted outstanding share | $ | 0.15 | |
Average outstanding shares – basic and diluted | 31,021,892 |
180 DEGREE CAPITAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
Six Months Ended June 30, 2017 | |||
Cash flows used in operating activities: | |||
Net increase in net assets resulting from operations | $ | 4,580,970 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||
Net realized loss and change in unrealized depreciation on investments | (6,110,983 | ) | |
Depreciation of fixed assets, amortization of premium or discount on U.S. government securities and prepaid assets and accretion of bridge note interest | (95,341 | ) | |
Share of loss on equity method investee | 20,077 | ||
Stock-based compensation expense | (580,435 | ) | |
Amortization of prior service cost | (104,492 | ) | |
Purchase of affiliated portfolio companies | (3,325,001 | ) | |
Purchase of publicly traded portfolio companies | (4,926,929 | ) | |
Proceeds from sale of investments of affiliated portfolio companies | 160,000 | ||
Proceeds from sale of publicly traded portfolio companies | 4,655 | ||
Proceeds from unaffiliated portfolio companies | 234,294 | ||
Changes in assets and liabilities: | |||
Restricted funds | (46,151 | ) | |
Receivable from portfolio companies | (11,306 | ) | |
Interest receivable | (200,320 | ) | |
Prepaid expenses | 75,470 | ||
Other assets | (16,163 | ) | |
Post retirement plan liabilities | 15,451 | ||
Accrued severance | 404,066 | ||
Accounts payable and accrued liabilities | (508,559 | ) | |
Deferred rent | (102,167 | ) | |
Payable for purchases of investments | 116,425 | ||
Net cash used in operating activities | (10,416,439 | ) | |
Cash flows from investing activities: | |||
Purchase of fixed assets | (1,978 | ) | |
Proceeds from fixed assets | 2,156 | ||
Net cash provided by investing activities | 178 | ||
Cash flows from financing activities: | |||
Payment of withholdings related to net settlement of restricted stock | (139,780 | ) | |
Net cash used in financing activities | (139,780 | ) | |
Net decrease in cash | (10,556,041 | ) | |
Cash at beginning of the period | 15,433,919 | ||
Cash at end of the period | $ | 4,877,878 | |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | $ | 5,273 |
180 DEGREE CAPITAL CORP. CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS |
UNAUDITED | |||||||
Six Months Ended June 30, 2017 | Year Ended December 31, 2016 | ||||||
Changes in net assets from operations: | |||||||
Net operating loss | $ | (1,504,663 | ) | $ | (4,516,108 | ) | |
Net realized loss on investments | (1,941,568 | ) | (8,075,175 | ) | |||
Net decrease (increase) in unrealized depreciation on investments | 8,047,278 | (3,683,822 | ) | ||||
Share of loss on equity method investment | (20,077 | ) | (91,255 | ) | |||
Net increase (decrease) in net assets resulting from operations | 4,580,970 | (16,366,360 | ) | ||||
Changes in net assets from capital stock transactions: | |||||||
Acquisition of vested restricted stock awards to pay required employee withholding tax | (139,780 | ) | (39,691 | ) | |||
Stock-based compensation (benefit) expense | (580,435 | ) | 158,973 | ||||
Net decrease in net assets resulting from capital stock transactions | (720,215 | ) | 119,282 | ||||
Changes in net assets from accumulated other comprehensive loss: | |||||||
Other comprehensive loss | (104,492 | ) | (208,983 | ) | |||
Net decrease in net assets resulting from accumulated other comprehensive loss | (104,492 | ) | (208,983 | ) | |||
Net increase (decrease) in net assets | 3,756,263 | (16,456,061 | ) | ||||
Net Assets: | |||||||
Beginning of the period/year | 72,255,610 | 88,711,671 | |||||
End of the period/year | $ | 76,011,873 | $ | 72,255,610 |
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Unaffiliated Companies (2) - | |||||||||||||||
36.4% of net assets at value | |||||||||||||||
Private Placement Portfolio (Illiquid) (3) - | |||||||||||||||
21.1% of net assets at value | |||||||||||||||
D-Wave Systems, Inc. (4)(5)(6) | Technology Hardware, Storage & Peripherals | ||||||||||||||
Developing high-performance quantum computing systems | |||||||||||||||
Series 1 Class B Convertible Preferred Stock (acquired 9/30/08) | (H) | $ | 1,002,074 | 1,144,869 | $ | 2,178,499 | |||||||||
Series 1 Class C Convertible Preferred Stock (acquired 9/30/08) | (H) | 487,804 | 450,450 | 859,923 | |||||||||||
Series 1 Class D Convertible Preferred Stock (acquired 9/30/08) | (H) | 748,473 | 855,131 | 1,632,472 | |||||||||||
Series 1 Class E Convertible Preferred Stock (acquired 11/24/10) | (H) | 248,049 | 269,280 | 520,632 | |||||||||||
Series 1 Class F Convertible Preferred Stock (acquired 11/24/10) | (H) | 238,323 | 258,721 | 500,216 | |||||||||||
Series 1 Class H Convertible Preferred Stock (acquired 6/27/14) | (H) | 909,088 | 460,866 | 957,608 | |||||||||||
Series 2 Class D Convertible Preferred Stock (acquired 9/30/08) | (H) | 736,019 | 678,264 | 1,294,827 | |||||||||||
Series 2 Class E Convertible Preferred Stock (acquired 6/1/12-3/22/13) | (H) | 659,493 | 513,900 | 998,547 | |||||||||||
Series 2 Class F Convertible Preferred Stock (acquired 6/1/12-3/22/13) | (H) | 633,631 | 493,747 | 959,388 | |||||||||||
Warrants for Common Stock expiring 5/12/19 (acquired 5/12/14) | (I) | 26,357 | 20,415 | 11,262 | |||||||||||
5,689,311 | 9,913,374 | ||||||||||||||
Fleet Health Alliance, LLC (4)(5) | Health Care Technology | ||||||||||||||
Developing software for information transfer amongst healthcare providers and consumers | |||||||||||||||
Unsecured Convertible Bridge Note, 0%, (acquired 4/22/16) | (M) | 225,000 | $ | 225,000 | 225,000 | ||||||||||
Genome Profiling, LLC (4) | Life Sciences Tools & Services | ||||||||||||||
Developing a platform to analyze and understand the epigenome | |||||||||||||||
Unsecured Convertible Bridge Note, 8%, (acquired 8/4/16) | (M) | 230,000 | $ | 230,000 | 230,000 | ||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Unaffiliated Companies (2) - | |||||||||||||||
36.4% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (3) - | |||||||||||||||
21.1% of net assets at value (cont.) | |||||||||||||||
Muses Labs, Inc. (4) | Life Sciences Tools & Services | ||||||||||||||
Developing a data analytics platform for precision medicine | |||||||||||||||
Unsecured Convertible Bridge Note, 5%, (acquired 5/25/16) | (I) | $ | 223,675 | $ | 212,000 | $ | 223,425 | ||||||||
Nanosys, Inc. (4)(5) | Specialty Chemicals | ||||||||||||||
Developing inorganic nanowires and quantum dots for use in LED-backlit devices | |||||||||||||||
Series C Convertible Preferred Stock (acquired 4/10/03) | (I) | 1,500,000 | 803,428 | 843,368 | |||||||||||
Series D Convertible Preferred Stock (acquired 11/7/05) | (I) | 3,000,003 | 1,016,950 | 1,813,242 | |||||||||||
Series E Convertible Preferred Stock (acquired 8/13/10) | (I) | 496,573 | 433,688 | 792,861 | |||||||||||
4,996,576 | 3,449,471 | ||||||||||||||
NanoTerra, Inc. (4)(5) | Research & Consulting Services | ||||||||||||||
Developing surface chemistry and nano-manufacturing solutions | |||||||||||||||
Warrants for Common Stock expiring on 2/22/21 (acquired 2/22/11) | (I) | 69,168 | 4,462 | 1,172 | |||||||||||
Warrants for Series A-3 Preferred Stock expiring on 11/15/22 (acquired 11/15/12) | (I) | 35,403 | 47,508 | 125,776 | |||||||||||
104,571 | 126,948 | ||||||||||||||
Petra Pharma Corporation (4)(5) | Pharmaceuticals | ||||||||||||||
Developing small molecule inhibitors for treatment of cancer and metabolic diseases | |||||||||||||||
Series A Convertible Preferred Stock (acquired 12/23/15-10/27/16) | (I) | 1,525,050 | 1,525,050 | 1,540,426 | |||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Unaffiliated Companies (2) - | |||||||||||||||
36.4% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (3) - | |||||||||||||||
21.1% of net assets at value (cont.) | |||||||||||||||
Phylagen, Inc. (4) | Research & Consulting Services | ||||||||||||||
Developing technology to improve human health and business productivity | |||||||||||||||
Secured Convertible Bridge Note, 5%, (acquired 2/5/15) | (M) | $ | 224,027 | $ | 200,000 | $ | 313,638 | ||||||||
Secured Convertible Bridge Note, 5%, (acquired 6/5/15) | (M) | 11,037 | $ | 10,000 | 15,452 | ||||||||||
235,064 | 329,090 | ||||||||||||||
Xenio Corp. (4)(5)(7) | Technology Hardware, Storage & Peripherals | ||||||||||||||
Developing a smart platform for LED lighting that enables local intelligence and communication capabilities | |||||||||||||||
Common Stock (acquired 8/1/16) | (M) | 184,653 | 221,938 | 23,303 | |||||||||||
Total Unaffiliated Private Portfolio (cost: $13,413,900) | $ | 16,061,037 | |||||||||||||
Rights to Milestone Payments (Illiquid) (8) - | |||||||||||||||
2.9% of net assets at value | |||||||||||||||
Amgen, Inc. (4)(9) | Biotechnology | ||||||||||||||
Rights to Milestone Payments from Acquisition of BioVex Group, Inc. (acquired 3/4/11) | (I) | $ | 548,998 | $ | 548,998 | $ | 2,239,142 | ||||||||
Laird Technologies, Inc. (4)(10) | Electronic Components | ||||||||||||||
Rights to Milestone Payments from Merger & Acquisition of Nextreme Thermal Solutions, Inc. (acquired 2/13/13) | (I) | 0 | $ | 0 | 0 | ||||||||||
Total Unaffiliated Rights to Milestone Payments (cost: $548,998) | $ | 2,239,142 | |||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Publicly Traded Portfolio (11) - | |||||||||||||||
12.4% of net assets at value | |||||||||||||||
Champions Oncology, Inc. (5) | Life Sciences Tools & Services | ||||||||||||||
Developing its TumorGraftTM platform for personalized medicine and drug development | |||||||||||||||
Warrants for Common Stock expiring 1/28/19 (acquired 1/28/13) | (I) | $ | 400 | 5,500 | $ | 1,849 | |||||||||
Mersana Therapeutics, Inc. (4)(5)(12) | Biotechnology | ||||||||||||||
Developing antibody drug conjugates for cancer therapy | |||||||||||||||
Common Stock (acquired 7/27/12-6/28/17) | (M) | 4,924,753 | 294,557 | 3,849,162 | |||||||||||
OpGen, Inc. (5) | Biotechnology | ||||||||||||||
Developing tools for genomic sequence assembly and analysis | |||||||||||||||
Warrants for the Purchase of Common Stock expiring 5/8/20 (acquired 5/5/15) | (M) | 425,579 | 300,833 | 35,919 | |||||||||||
Warrants for the Purchase of Common Stock expiring 2/17/25 (acquired 5/5/15) | (I) | 785 | 31,206 | 13,706 | |||||||||||
426,364 | 49,625 | ||||||||||||||
Synacor, Inc. (5)(13) | Internet Software & Services | ||||||||||||||
Providing technology development, multiplatform services and revenue partner for video, internet and communications providers, device manufacturers, and enterprises | |||||||||||||||
Common Stock (acquired 4/6/17-6/8/17) | (M) | 2,451,446 | 700,000 | 2,555,000 | |||||||||||
TheStreet, Inc. (5)(13) | Financial Exchanges & Data | ||||||||||||||
Providing financial news and proprietary data to consumers and businesses | |||||||||||||||
Common Stock (acquired 4/20/17-6/30/17) | (M) | 827,833 | 925,902 | 768,499 | |||||||||||
USA Truck, Inc. (5)(13) | Trucking | ||||||||||||||
Providing over-the-road trucking and freight logistics | |||||||||||||||
Common Stock (acquired 5/19/17-6/7/17) | (M) | 1,647,650 | 250,000 | 2,165,000 | |||||||||||
Total Unaffiliated Publicly Traded Portfolio (cost: $10,278,446) | $ | 9,389,135 | |||||||||||||
Total Investments in Unaffiliated Companies (cost: $24,241,344) | 27,689,314 | ||||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Non-Controlled Affiliated Companies (2) - | |||||||||||||||
53.1% of net assets at value | |||||||||||||||
Private Placement Portfolio (Illiquid) (14) - | |||||||||||||||
42.2% of net assets at value | |||||||||||||||
ABSMaterials, Inc. (4) | Specialty Chemicals | ||||||||||||||
Developing nano-structured absorbent materials for water remediation and consumer applications | |||||||||||||||
Series A Convertible Preferred Stock (acquired 2/17/10-10/24/11) | (I) | $ | 435,000 | 390,000 | $ | 253,587 | |||||||||
Series B Convertible Preferred Stock (acquired 11/8/13-6/25/14) | (I) | 1,217,644 | 1,037,751 | 1,067,285 | |||||||||||
Secured Convertible Bridge Note, 8%, (acquired 1/20/16) | (M) | 111,573 | $ | 100,000 | 111,573 | ||||||||||
Secured Convertible Bridge Note, 8%, (acquired 3/28/17) | (M) | 25,521 | $ | 25,000 | 25,521 | ||||||||||
1,789,738 | 1,457,966 | ||||||||||||||
AgBiome, LLC (4)(5) | Fertilizers & Agricultural Chemicals | ||||||||||||||
Providing early-stage research and discovery for agriculture and utilizing the crop microbiome to identify products that reduce risk and improve yield | |||||||||||||||
Series A-1 Convertible Preferred Stock (acquired 1/30/13) | (I) | 2,000,000 | 2,000,000 | 6,833,127 | |||||||||||
Series A-2 Convertible Preferred Stock (acquired 4/9/13-10/15/13) | (I) | 521,740 | 417,392 | 1,475,755 | |||||||||||
Series B Convertible Preferred Stock (acquired 8/7/15) | (I) | 500,006 | 160,526 | 759,567 | |||||||||||
3,021,746 | 9,068,449 | ||||||||||||||
AgTech Accelerator Corporation (4)(5)(15) | Research & Consulting Services | ||||||||||||||
Identifying and managing emerging agriculture technologies companies | |||||||||||||||
Common Stock (acquired 5/4/16-11/17/16) | (M) | 300,000 | 300,000 | 300 | |||||||||||
Class B Common Stock (acquired 11/17/16) | (M) | 0 | 138,000 | 138 | |||||||||||
300,000 | 438 | ||||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Non-Controlled Affiliated Companies (2) - | |||||||||||||||
53.1% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (14) - | |||||||||||||||
42.2% of net assets at value (cont.) | |||||||||||||||
EchoPixel, Inc. (4)(5) | Health Care Equipment | ||||||||||||||
Developing virtual reality 3-D visualization software for life sciences and health care applications | |||||||||||||||
Series Seed Convertible Preferred Stock (acquired 6/21/13-6/30/14) | (I) | $ | 1,250,000 | 4,194,630 | $ | 935,395 | |||||||||
Series Seed-2 Convertible Preferred Stock (acquired 1/22/16) | (I) | 500,000 | 1,476,668 | 334,209 | |||||||||||
Series A-2 Convertible Preferred Stock (acquired 3/23/17) | (I) | 350,000 | 1,471,577 | 411,869 | |||||||||||
2,100,000 | 1,681,473 | ||||||||||||||
Ensemble Therapeutics Corporation (4)(5)(16) | Pharmaceuticals | ||||||||||||||
Developed new classes of therapeutics | |||||||||||||||
Series B Convertible Preferred Stock (acquired 6/6/07) | (I) | 2,000,000 | 1,449,275 | 0 | |||||||||||
Series B-1 Convertible Preferred Stock (acquired 4/21/14) | (I) | 679,754 | 492,575 | 779,511 | |||||||||||
2,679,754 | 779,511 | ||||||||||||||
Essential Health Solutions, Inc. (4)(5) | Health Care Technology | ||||||||||||||
Developing software for information transfer amongst healthcare providers and consumers | |||||||||||||||
Common Stock (acquired 11/18/16) | (I) | 20 | 200,000 | 111,581 | |||||||||||
Series A Convertible Preferred Stock (acquired 11/18/16) | (I) | 2,750,000 | 2,750,000 | 2,772,929 | |||||||||||
2,750,020 | 2,884,510 | ||||||||||||||
HZO, Inc. (4) | Semiconductor Equipment | ||||||||||||||
Developing novel industrial coatings that protect electronics against damage from liquids | |||||||||||||||
Common Stock (acquired 6/23/14) | (I) | 666,667 | 405,729 | 448,764 | |||||||||||
Series I Convertible Preferred Stock (acquired 6/23/14) | (I) | 5,709,835 | 2,266,894 | 4,034,473 | |||||||||||
Series II Convertible Preferred Stock (acquired 6/23/14-8/3/15) | (I) | 2,500,006 | 674,638 | 1,728,107 | |||||||||||
Series II-A Convertible Preferred Stock (acquired 9/9/16) | (I) | 226,070 | 69,053 | 255,727 | |||||||||||
Warrants for Series II-A Convertible Preferred Stock expiring 7/15/23 (acquired 7/15/16) | (I) | 29,820 | 6,577 | 24,297 | |||||||||||
9,132,398 | 6,491,368 | ||||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Non-Controlled Affiliated Companies (2) - | |||||||||||||||
53.1% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (14) - | |||||||||||||||
42.2% of net assets at value (cont.) | |||||||||||||||
Laser Light Engines, Inc. (4)(5)(16) | Technology Hardware, Storage & Peripherals | ||||||||||||||
Manufactured solid-state light sources for digital cinema and large-venue projection displays | |||||||||||||||
Series A Convertible Preferred Stock (acquired 5/6/08) | (M) | $ | 2,000,000 | 7,499,062 | $ | 0 | |||||||||
Series B Convertible Preferred Stock (acquired 9/17/10) | (M) | 3,095,802 | 13,571,848 | 0 | |||||||||||
Secured Convertible Bridge Note, 12%, (acquired 10/7/2011) | (M) | 200,000 | $ | 200,000 | 0 | ||||||||||
Secured Convertible Bridge Note, 12%, (acquired 11/17/2011) | (M) | 95,652 | $ | 95,652 | 0 | ||||||||||
Secured Convertible Bridge Note, 12%, (acquired 12/21/2011) | (M) | 82,609 | $ | 82,609 | 0 | ||||||||||
Secured Convertible Bridge Note, 12%, (acquired 3/5/2012) | (M) | 434,784 | $ | 434,784 | 0 | ||||||||||
Secured Convertible Bridge Note, 12%, (acquired 7/26/2012) | (M) | 186,955 | $ | 186,955 | 0 | ||||||||||
Secured Convertible Bridge Note, 20%, (acquired 4/29/2013) | (M) | 166,667 | $ | 166,667 | 0 | ||||||||||
Secured Convertible Bridge Note, 20%, (acquired 7/22/2013) | (M) | 166,667 | $ | 166,667 | 0 | ||||||||||
Secured Convertible Bridge Note, 10%, (acquired 10/30/2013) | (M) | 80,669 | $ | 80,669 | 0 | ||||||||||
Secured Convertible Bridge Note, 10%, (acquired 2/5/2014) | (M) | 19,331 | $ | 19,331 | 0 | ||||||||||
Secured Convertible Bridge Note, 10%, (acquired 6/24/2014) | (M) | 13,745 | $ | 13,745 | 0 | ||||||||||
6,542,881 | 0 | ||||||||||||||
Lodo Therapeutics Corporation (4)(5) | Pharmaceuticals | ||||||||||||||
Developing and commercializing novel therapeutics derived from a metagenome-based Natural Product Discovery Platform | |||||||||||||||
Series A Convertible Preferred Stock (acquired 12/21/15-4/22/16) | (I) | 658,190 | 658,190 | 663,747 | |||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Non-Controlled Affiliated Companies (2) - | |||||||||||||||
53.1% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (14) - | |||||||||||||||
42.2% of net assets at value (cont.) | |||||||||||||||
NGX Bio, Inc. (4)(17) | Research & Consulting Services | ||||||||||||||
Developing translational genomics solutions | |||||||||||||||
Series Seed Convertible Preferred Stock (acquired 6/6/14-1/10/16) | (I) | $ | 500,002 | 666,667 | $ | 703,496 | |||||||||
Series Seed 2 Convertible Preferred Stock (acquired 8/20/15-9/30/15) | (I) | 499,999 | 329,989 | 459,718 | |||||||||||
Series Seed 3 Convertible Preferred Stock (acquired 6/24/17) | (I) | 686,329 | 666,001 | 746,746 | |||||||||||
1,686,330 | 1,909,960 | ||||||||||||||
ORIG3N, Inc. (4) | Health Care Technology | ||||||||||||||
Developing precision medicine applications for induced pluripotent stems cells | |||||||||||||||
Series 1 Convertible Preferred Stock (acquired 2/5/15-8/5/15) | (I) | 500,000 | 1,195,315 | 949,223 | |||||||||||
Series A Convertible Preferred Stock (acquired 11/25/15-9/7/16) | (I) | Research & Consulting Services | 1,500,000 | 1,364,666 | 1,308,087 | ||||||||||
Series A-2 Convertible Preferred Stock (acquired 5/11/17) | (I) | 100,395 | 93,180 | 114,161 | |||||||||||
2,100,395 | 2,371,471 | ||||||||||||||
Produced Water Absorbents, Inc. (4)(18) | Oil & Gas Equipment & Services | ||||||||||||||
Providing integrated process separation solutions to the global oil and gas industries, enabling onsite treatment of produced and flowback water | |||||||||||||||
Common Stock (acquired 4/30/16) | (M) | 7,670,281 | 50,243,350 | 0 | |||||||||||
Warrants for Common Stock expiring upon liquidation event (acquired 4/30/16) | (I) | 65,250 | 450,000 | 0 | |||||||||||
Senior Secured Debt, 15% commencing on 4/1/16, maturing on 12/31/19 (acquired 4/1/16) | (I) | 2,058,255 | $ | 2,533,766 | 1,248,600 | ||||||||||
9,793,786 | 1,248,600 | ||||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Non-Controlled Affiliated Companies (2) - | |||||||||||||||
53.1% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (14) - | |||||||||||||||
42.2% of net assets at value (cont.) | |||||||||||||||
Senova Systems, Inc. (4)(16) | Life Sciences Tools & Services | ||||||||||||||
Developed next-generation sensors to measure pH | |||||||||||||||
Series B-1 Convertible Preferred Stock (acquired 8/1/13-1/15/14) | (I) | $ | 1,083,960 | 2,759,902 | $ | 0 | |||||||||
Series C Convertible Preferred Stock (acquired 10/24/14-4/1/15) | (I) | 1,208,287 | 1,611,049 | 70,465 | |||||||||||
Warrants for Series B Preferred Stock expiring 10/15/17 (acquired 10/15/12) | (I) | 131,538 | 164,423 | 0 | |||||||||||
Warrants for Series B Preferred Stock expiring 4/24/18 (acquired 4/24/13) | (I) | 20,000 | 25,000 | 0 | |||||||||||
2,443,785 | 70,465 | ||||||||||||||
TARA Biosystems, Inc. (4) | Specialty Chemicals | ||||||||||||||
Developing human tissue models for toxicology and drug discovery applications | |||||||||||||||
Common Stock (acquired 8/20/14) | (I) | 20 | 2,000,000 | 658,013 | |||||||||||
Series A Convertible Preferred Stock (acquired 3/31/17) | (I) | 2,545,493 | 6,878,572 | 2,775,009 | |||||||||||
2,545,513 | 3,433,022 | ||||||||||||||
Total Non-Controlled Affiliated Private Portfolio (cost: $47,544,536) | $ | 32,060,980 | |||||||||||||
Publicly Traded Portfolio (19) - | |||||||||||||||
10.9% of net assets at value | |||||||||||||||
Adesto Technologies Corporation (5) | Semiconductors | ||||||||||||||
Developing low-power, high-performance memory devices | |||||||||||||||
Common Stock (acquired 10/27/15) | (M) | $ | 11,482,417 | 1,769,868 | $ | 8,052,899 | |||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Publicly Traded Portfolio (19) - | |||||||||||||||
10.9% of net assets at value (cont.) | |||||||||||||||
Enumeral Biomedical Holdings, Inc. (5) | Biotechnology | ||||||||||||||
Developed therapeutics and diagnostics through functional assaying of single cells | |||||||||||||||
Common Stock (acquired 7/31/14) | (M) | $ | 4,943,213 | 7,886,368 | $ | 252,364 | |||||||||
Warrants to purchase Common Stock expiring 2/2/2024 (acquired 7/31/14) | (I) | 57,567 | 255,120 | 5,588 | |||||||||||
Warrants to purchase Common Stock expiring 7/30/2019 (acquired 7/31/14) | (I) | 360,250 | 1,000,000 | 673 | |||||||||||
5,361,030 | 258,625 | ||||||||||||||
Total Non-Controlled Affiliated Publicly Traded Portfolio (cost: $16,843,447) | $ | 8,311,524 | |||||||||||||
Total Investments in Non-Controlled Affiliated Companies (cost: $64,387,983) | $ | 40,372,504 | |||||||||||||
Investments in Controlled Affiliated Companies (2) - | |||||||||||||||
5.8% of net assets at value | |||||||||||||||
Private Placement Portfolio (Illiquid) (20) - | |||||||||||||||
5.8% of net assets at value | |||||||||||||||
Black Silicon Holdings, Inc. (4)(16)(21) | Semiconductors | ||||||||||||||
Holding company for interest in a company that develops silicon-based optoelectronic products | |||||||||||||||
Series A Convertible Preferred Stock (acquired 8/4/15) | (I) | $ | 750,000 | 233,499 | $ | 0 | |||||||||
Series A-1 Convertible Preferred Stock (acquired 8/4/15) | (I) | 890,000 | 2,966,667 | 0 | |||||||||||
Series A-2 Convertible Preferred Stock (acquired 8/4/15) | (I) | 2,445,000 | 4,207,537 | 0 | |||||||||||
Series B-1 Convertible Preferred Stock (acquired 8/4/15) | (I) | 1,169,561 | 1,892,836 | 0 | |||||||||||
Series C Convertible Preferred Stock (acquired 8/4/15) | (I) | 1,171,316 | 1,674,030 | 0 | |||||||||||
Secured Convertible Bridge Note, 8%, (acquired 8/25/16) | (I) | 1,366,525 | $ | 1,278,453 | 444,729 | ||||||||||
7,792,402 | 444,729 | ||||||||||||||
180 DEGREE CAPITAL CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2017 (UNAUDITED) | |||||||||
Method of Valuation (1) | Industry | Cost | Shares/ Principal | Value |
Investments in Controlled Affiliated Companies (2) - | |||||||||||||||
5.8% of net assets at value (cont.) | |||||||||||||||
Private Placement Portfolio (Illiquid) (20) - | |||||||||||||||
5.8% of net assets at value (cont.) | |||||||||||||||
HALE.life Corporation (4)(22) | Health Care Technology | ||||||||||||||
Developing a platform to facilitate precision health and medicine | |||||||||||||||
Common Stock (acquired 3/1/16) | (M) | $ | 10 | 1,000,000 | $ | 10 | |||||||||
Series Seed Convertible Preferred Stock (acquired 3/28/17) | (M) | 1,896,920 | 11,000,000 | 1,896,920 | |||||||||||
Unsecured Convertible Bridge Note, 0%, (acquired 3/28/17) | (M) | 2,000,000 | $ | 2,000,000 | 2,000,000 | ||||||||||
3,896,930 | 3,896,930 | ||||||||||||||
SynGlyco, Inc. (4)(16) | Specialty Chemicals | ||||||||||||||
Developed synthetic carbohydrates for pharmaceutical applications | |||||||||||||||
Common Stock (acquired 12/13/11) | (I) | 2,729,817 | 57,463 | 0 | |||||||||||
Series A' Convertible Preferred Stock (acquired 12/13/11-6/7/12) | (I) |