UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07074

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)

Registrant's telephone number, including area code: (973) 746-4500

Date of fiscal year end: December 31

Date of reporting period: September 30, 2018


Item 1. Consolidated Schedule of Investments and Schedule 12-14


1
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Unaffiliated Companies (2) -
 
 
 
 
 
 
 
 
 
40.1% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (3) -
 
 
 
 
 
 
 
 
 
19.1% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AutoTech Ventures Management I, LLC (4)(5)(6)
 
 
 
 
 
 
 
 
 
Venture capital investing in automotive-related companies
 
 
Asset Management & Custody Banks
 
 
 
 
 
 
LLC Interests (acquired 12/1/17)
(M) (L3)
 
 
 
$
0

 
0

 
$
0

 
 
 
 
 
 
 
 
 
 
D-Wave Systems, Inc. (4)(5)(7)
 
 
Technology Hardware, Storage & Peripherals
 
 
 
 
 
 
Developing high-performance quantum computing systems
 
 
 
 
 
 
 
 
 
Series 1 Class B Convertible Preferred Stock (acquired 9/30/08)
(M) (L3)
 
 
 
1,002,074

 
1,144,869

 
2,070,906

Series 1 Class C Convertible Preferred Stock (acquired 9/30/08)
(M) (L3)
 
 
 
487,804

 
450,450

 
831,961

Series 1 Class D Convertible Preferred Stock (acquired 9/30/08)
(M) (L3)
 
 
 
748,473

 
855,131

 
1,579,389

Series 1 Class E Convertible Preferred Stock (acquired 11/24/10)
(M) (L3)
 
 
 
248,049

 
269,280

 
518,797

Series 1 Class F Convertible Preferred Stock (acquired 11/24/10)
(M) (L3)
 
 
 
238,323

 
258,721

 
498,454

Series 1 Class H Convertible Preferred Stock (acquired 6/27/14)
(M) (L3)
 
 
 
909,088

 
460,866

 
1,207,131

Series 2 Class D Convertible Preferred Stock (acquired 9/30/08)
(M) (L3)
 
 
 
736,019

 
678,264

 
1,252,723

Series 2 Class E Convertible Preferred Stock (acquired 6/1/12-3/22/13)
(M) (L3)
 
 
 
659,493

 
513,900

 
1,036,359

Series 2 Class F Convertible Preferred Stock (acquired 6/1/12-3/22/13)
(M) (L3)
 
 
 
633,631

 
493,747

 
995,718

Warrants for Common Stock expiring 5/12/19 (acquired 5/12/14)
(M) (L3)
 
 
 
26,357

 
20,415

 
10,498

 
 
 
 
 
5,689,311

 
 
 
10,001,936

 
 
 
 
 
 
 
 
 
 
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, no maturity date)
(M) (L3)
 
 
 
225,000

 
$
225,000

 
225,000

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
2
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Unaffiliated Companies (2) -
 
 
 
 
 
 
 
 
 
40.1% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (3) -
 
 
 
 
 
 
 
 
 
19.1% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, maturing 8/4/19)
(M) (L3)
 
 
 
$
230,000

 
$
230,000

 
$
345,000

 
 
 
 
 
 
 
 
 
 
Magnolia Neurosciences Corporation (4)(5)(8)
 
 
Pharmaceuticals
 
 
 
 
 
 
Developing and commercializing novel therapeutics for treatment of neurodegeneration
 
 
 
 
 
 
 
 
 
Series A Convertible Preferred Stock (acquired 8/3/18)
(I) (L3)
 
 
 
862,872

 
862,872

 
864,623

 
 
 
 
 
 
 
 
 
 
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) (L3)
 
 
 
1,500,000

 
803,428

 
912,661

Series D Convertible Preferred Stock (acquired 11/7/05)
(I) (L3)
 
 
 
3,000,003

 
1,016,950

 
1,806,998

Series E Convertible Preferred Stock (acquired 8/13/10)
(I) (L3)
 
 
 
496,573

 
433,688

 
791,313

 
 
 
 
 
4,996,576

 
 
 
3,510,972

 
 
 
 
 
 
 
 
 
 
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) (L3)
 
 
 
69,168

 
4,462

 
39

Warrants for Series A-3 Preferred Stock expiring on 11/15/22 (acquired 11/15/12)
(I) (L3)
 
 
 
35,403

 
47,508

 
50,669

 
 
 
 
 
104,571

 
 
 
50,708

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
3
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Unaffiliated Companies (2) -
 
 
 
 
 
 
 
 
 
40.1% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (3) -
 
 
 
 
 
 
 
 
 
19.1% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Petra Pharma Corporation (4)(5)(9)
 
 
Pharmaceuticals
 
 
 
 
 
 
Developing small molecule inhibitors for treatment of cancer and metabolic diseases
 
 
 
 
 
 
 
 
 
Series A Convertible Preferred Stock (acquired 12/23/15-1/8/18)
(I) (L3)
 
 
 
$
1,894,798

 
1,894,798

 
$
882,263

Secured Convertible Bridge Note, 7% PIK, (acquired 8/30/18, maturing 1/31/19)
(M) (L3)
 
 
 
372,017

 
$
369,748

 
372,017

 
 
 
 
 
2,266,815

 
 
 
1,254,280

 
 
 
 
 
 
 
 
 
 
Phylagen, Inc. (4)
 
 
Research & Consulting Services
 
 
 
 
 
 
Developing technology to improve human health and business productivity
 
 
 
 
 
 
 
 
 
Secured Convertible Bridge Note, 5% PIK, (acquired 2/5/15, maturing 6/12/19)
(M) (L3)
 
 
 
236,548

 
$
200,000

 
373,497

Secured Convertible Bridge Note, 5% PIK, (acquired 6/5/15, maturing 6/12/19)
(M) (L3)
 
 
 
11,663

 
$
10,000

 
18,415

 
 
 
 
 
248,211

 
 
 
391,912

 
 
 
 
 
 
 
 
 
 
Total Unaffiliated Privately Held Companies (cost: $14,623,356)
 
 
 
 
 
 
 
 
$
16,644,431

 
 
 
 
 
 
 
 
 
 
Unaffiliated Publicly Traded Securities (10) -
 
 
 
 
 
 
 
 
 
21.0% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adesto Technologies Corporation (5)
 
 
Semiconductors
 
 
 
 
 
 
Developing low-power, high-performance memory devices
 
 
 
 
 
 
 
 
 
Common Stock (acquired 10/27/15-9/27/18)
(M) (L1)
 
 
 
$
5,960,164

 
979,400

 
$
5,827,430

 
 
 
 
 
 
 
 
 
 
Airgain, Inc. (5)(8)
 
 
Electronic Components
 
 
 
 
 
 
Providing advanced antenna technologies for high-performance wireless networking
 
 
 
 
 
 
 
 
 
Common Stock (acquired 6/4/18-6/29/18)
(M) (L1)
 
 
 
1,625,270

 
190,084

 
2,497,704

 
 
 
 
 
 
 
 
 
 
Emcore Corporation (5)
 
 
Communications Equipment
 
 
 
 
 
 
Providing mixed-signal optical products
 
 
 
 
 
 
 
 
 
Common Stock (acquired 5/3/18-9/19/18)
(M) (L1)
 
 
 
2,688,299

 
565,628

 
2,686,733

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
4
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Unaffiliated Companies (2) -
 
 
 
 
 
 
 
 
 
40.1% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated Publicly Traded Securities (10) -
 
 
 
 
 
 
 
 
 
21.0% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lantronix, Inc. (5)(8)
 
 
Communications Equipment
 
 
 
 
 
 
Providing secure data access and management solutions
 
 
 
 
 
 
 
 
 
Common Stock (acquired 9/18/18)
(M) (L1)
 
 
 
$
1,000,000

 
250,000

 
$
1,017,500

 
 
 
 
 
 
 
 
 
 
Mersana Therapeutics, Inc. (5)
 
 
Biotechnology
 
 
 
 
 
 
Developing antibody drug conjugates for cancer therapy
 
 
 
 
 
 
 
 
 
Common Stock (acquired 7/27/12-9/28/18)
(M) (L1)
 
 
 
4,317,173

 
275,155

 
2,751,550

 
 
 
 
 
 
 
 
 
 
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) (L2)
 
 
 
425,579

 
12,033

 
3,114

Warrants for the Purchase of Common Stock expiring 2/17/25 (acquired 5/5/15)
(I) (L3)
 
 
 
785

 
1,248

 
618

 
 
 
 
 
426,364

 
 
 
3,732

 
 
 
 
 
 
 
 
 
 
PDL BioPharma, Inc. (5)(8)
 
 
Biotechnology
 
 
 
 
 
 
Owner of royalty rights, debt securities and other assets in life science sectors
 
 
 
 
 
 
 
 
 
Common Stock (acquired 8/31/18-9/14/18)
(M) (L1)
 
 
 
1,183,826

 
500,000

 
1,315,000

 
 
 
 
 
 
 
 
 
 
Synacor, Inc. (5)
 
 
Application Software
 
 
 
 
 
 
Providing technology development, multiplatform services and revenue partner for video, internet and communications providers, device manufacturers, and enterprises
 
 
 
 
 
 
 
 
 
Common Stock (acquired 4/6/17-8/2/18)
(M) (L1)
 
 
 
4,044,745

 
1,402,165

 
2,243,464

 
 
 
 
 
 
 
 
 
 
Total Unaffiliated Publicly Traded Securities (cost: $21,245,841)
 
 
 
 
 
 
 
 
$
18,343,113

 
 
 
 
 
 
 
 
 
 
Total Investments in Unaffiliated Companies (cost: $35,869,197)
 
 
 
 
 
 
 
 
$
34,987,544

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
5
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Non-Controlled Affiliated Companies (2) -
 
 
 
 
 
 
 
 
 
42.5% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (11) -
 
 
 
 
 
 
 
 
 
30.6% 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) (L3)
 
 
 
$
435,000

 
390,000

 
$
5,924

Series B Convertible Preferred Stock (acquired 11/8/13-6/25/14)
(I) (L3)
 
 
 
1,217,644

 
1,037,751

 
416,876

Secured Convertible Bridge Note, 8% PIK, (acquired 1/20/16, maturing 12/31/18)
(M) (L3)
 
 
 
121,589

 
$
100,000

 
121,589

Secured Convertible Bridge Note, 8% PIK, (acquired 3/28/17, maturing 12/31/19)
(M) (L3)
 
 
 
28,025

 
$
25,000

 
28,025

 
 
 
 
 
1,802,258

 
 
 
572,414

 
 
 
 
 
 
 
 
 
 
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) (L3)
 
 
 
2,000,000

 
2,000,000

 
10,483,248

Series A-2 Convertible Preferred Stock (acquired 4/9/13-10/15/13)
(I) (L3)
 
 
 
521,740

 
417,392

 
2,222,038

Series B Convertible Preferred Stock (acquired 8/7/15)
(I) (L3)
 
 
 
500,006

 
160,526

 
952,756

 
 
 
 
 
3,021,746

 
 
 
13,658,042

 
 
 
 
 
 
 
 
 
 
Coba Therapeutics Corporation (4)(8)
 
 
 
 
 
 
 
 
 
Developing therapeutics for obesity, diabetes and liver diseases
 
 
Pharmaceuticals
 
 
 
 
 
 
Unsecured Convertible Bridge Note, 6% PIK, (acquired 2/27/18, maturing 2/27/19)
(M) (L3)
 
 
 
150,697

 
$
145,530

 
150,697

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
6
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Non-Controlled Affiliated Companies (2) -
 
 
 
 
 
 
 
 
 
42.5% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (11) -
 
 
 
 
 
 
 
 
 
30.6% 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) (L3)
 
 
 
$
1,250,000

 
4,194,630

 
$
1,025,822

Series Seed-2 Convertible Preferred Stock (acquired 1/22/16)
(I) (L3)
 
 
 
500,000

 
1,476,668

 
367,867

Series A-2 Convertible Preferred Stock (acquired 3/23/17)
(I) (L3)
 
 
 
350,000

 
1,471,577

 
438,671

 
 
 
 
 
2,100,000

 
 
 
1,832,360

 
 
 
 
 
 
 
 
 
 
Ensemble Therapeutics Corporation (4)(5)(12)
 
 
Pharmaceuticals
 
 
 
 
 
 
Developed DNA-Programmed ChemistryTM for the discovery of new classes of therapeutics
 
 
 
 
 
 
 
 
 
Series B Convertible Preferred Stock (acquired 6/6/07)
(I) (L3)
 
 
 
2,000,000

 
1,449,275

 
0

Series B-1 Convertible Preferred Stock (acquired 4/21/14)
(I) (L3)
 
 
 
551,553

 
492,575

 
86,104

 
 
 
 
 
2,551,553

 
 
 
86,104

 
 
 
 
 
 
 
 
 
 
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) (L3)
 
 
 
20

 
200,000

 
125,821

Series A Convertible Preferred Stock (acquired 11/18/16)
(I) (L3)
 
 
 
2,750,000

 
2,750,000

 
2,755,878

 
 
 
 
 
2,750,020

 
 
 
2,881,699

 
 
 
 
 
 
 
 
 
 
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) (L3)
 
 
 
658,190

 
658,190

 
781,379

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
7
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Non-Controlled Affiliated Companies (2) -
 
 
 
 
 
 
 
 
 
42.5% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (11) -
 
 
 
 
 
 
 
 
 
30.6% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NGX Bio, Inc. (4)(5)
 
 
Research & Consulting Services
 
 
 
 
 
 
Developing translational genomics solutions
 
 
 
 
 
 
 
 
 
Series Seed Convertible Preferred Stock (acquired 6/6/14-1/10/16)
(M) (L3)
 
 
 
$
500,002

 
666,667

 
$
135,975

Series Seed 2 Convertible Preferred Stock (acquired 8/20/15-9/30/15)
(M) (L3)
 
 
 
499,999

 
329,989

 
101,981

Series Seed 3 Convertible Preferred Stock (acquired 6/26/17)
(M) (L3)
 
 
 
686,329

 
666,001

 
152,139

 
 
 
 
 
1,686,330

 
 
 
390,095

 
 
 
 
 
 
 
 
 
 
ORIG3N, Inc. (4)(5)
 
 
Health Care Technology
 
 
 
 
 
 
Developing precision medicine applications for induced pluripotent stems cells
 
 
 
 
 
 
 
 
 
Series 1 Convertible Preferred Stock (acquired 2/5/15-8/5/15)
(H) (L3)
 
 
 
500,000

 
1,195,315

 
1,261,746

Series A Convertible Preferred Stock (acquired 11/25/15-9/7/16)
(H) (L3)
 
 
 
1,500,000

 
1,364,666

 
1,463,379

Series A-2 Convertible Preferred Stock (acquired 5/11/17-2/8/18)
(H) (L3)
 
 
 
200,002

 
176,386

 
193,162

 
 
 
 
 
2,200,002

 
 
 
2,918,287

 
 
 
 
 
 
 
 
 
 
Produced Water Absorbents, Inc. (4)(13)
 
 
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) (L3)
 
 
 
7,670,281

 
50,243,350

 
0

Warrants for Common Stock expiring upon liquidation event (acquired 4/30/16)
(M) (L3)
 
 
 
65,250

 
450,000

 
0

Senior Secured Debt, 15% commencing on 4/1/16, maturing on 12/31/19 (acquired 4/1/16)
(M) (L3)
 
 
 
2,276,104

 
$
2,533,766

 
0

 
 
 
 
 
10,011,635

 
 
 
0

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
8
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Non-Controlled Affiliated Companies (2) -
 
 
 
 
 
 
 
 
 
42.5% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (11) -
 
 
 
 
 
 
 
 
 
30.6% of net assets at value (cont.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TARA Biosystems, Inc. (4)(5)
 
 
Life Sciences Tools & Services
 
 
 
 
 
 
Developing human tissue models for toxicology and drug discovery applications
 
 
 
 
 
 
 
 
 
Common Stock (acquired 8/20/14)
(I) (L3)
 
 
 
$
20

 
2,000,000

 
$
658,457

Series A Convertible Preferred Stock (acquired 3/31/17)
(I) (L3)
 
 
 
2,545,493

 
6,878,572

 
2,831,460

 
 
 
 
 
2,545,513

 
 
 
3,489,917

 
 
 
 
 
 
 
 
 
 
Total Non-Controlled Affiliated Privately Held Companies (cost: $29,477,944)
 
 
 
 
 
 
 
 
$
26,760,994

 
 
 
 
 
 
 
 
 
 
Non-Controlled Affiliated Publicly Traded Securities (14) -
 
 
 
 
 
 
 
 
 
11.9% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TheStreet, Inc. (4)(5)(15)
 
 
Financial Exchanges & Data
 
 
 
 
 
 
Providing financial news and proprietary data to consumers and businesses
 
 
 
 
 
 
 
 
 
Common Stock (acquired 4/19/17-5/18/18)
(M) (L1)
 
 
 
$
4,949,734

 
4,668,552

 
$
10,270,814

Stock Options for Common Stock Expiring 1/1/25 (acquired 1/1/18)
(I) (L3)
 
 
 
0

 
3,333

 
2,544

Stock Options for Common Stock Expiring 5/18/25 (acquired 5/18/18)
(I) (L3)
 
 
 
0

 
10,000

 
4,588

Restricted Stock Units (acquired 5/18/18)
(M) (L3)
 
 
 
0

 
33,333

 
69,094

 
 
 
 
 
4,949,734

 
 
 
10,347,040

 
 
 
 
 
 
 
 
 
 
Total Non-Controlled Affiliated Publicly Traded Securities (cost: $4,949,734)
 
 
 
 
 
 
 
 
$
10,347,040

 
 
 
 
 
 
 
 
 
 
Total Investments in Non-Controlled Affiliated Companies (cost: $34,427,678)
 
 
 
 
 
 
 
 
$
37,108,034

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
9
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investments in Controlled Affiliated Companies (2) -
 
 
 
 
 
 
 
 
 
4.6% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Companies (Illiquid) (16) -
 
 
 
 
 
 
 
 
 
4.6% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Black Silicon Holdings, Inc. (4)(12)(17)
 
 
Semiconductors
 
 
 
 
 
 
Holding company for interest in a company that develops silicon-based optoelectronic products
 
 
 
 
 
 
 
 
 
Series A Convertible Preferred Stock (acquired 8/4/15)
(M) (L3)
 
 
 
$
750,000

 
233,499

 
$
0

Series A-1 Convertible Preferred Stock (acquired 8/4/15)
(M) (L3)
 
 
 
890,000

 
2,966,667

 
0

Series A-2 Convertible Preferred Stock (acquired 8/4/15)
(M) (L3)
 
 
 
2,445,000

 
4,207,537

 
0

Series B-1 Convertible Preferred Stock (acquired 8/4/15)
(M) (L3)
 
 
 
1,169,561

 
1,892,836

 
0

Series C Convertible Preferred Stock (acquired 8/4/15)
(M) (L3)
 
 
 
1,171,316

 
1,674,030

 
0

Secured Convertible Bridge Note, 8% PIK, (acquired 8/25/16, maturing 8/4/21)
(M) (L3)
 
 
 
1,444,368

 
$
1,278,453

 
105,070

 
 
 
 
 
7,870,245

 
 
 
105,070

 
 
 
 
 
 
 
 
 
 
HALE.life Corporation (4)(5)(9)
 
 
Health Care Technology
 
 
 
 
 
 
Developing a platform to facilitate precision health and medicine
 
 
 
 
 
 
 
 
 
Common Stock (acquired 3/1/16)
(M) (L3)
 
 
 
10

 
1,000,000

 
10

Series Seed Convertible Preferred Stock (acquired 3/28/17)
(M) (L3)
 
 
 
1,896,920

 
23,081,580

 
1,896,920

Unsecured Convertible Bridge Note, 0%, (acquired 3/28/17, no maturity date)
(M) (L3)
 
 
 
2,000,000

 
$
2,000,000

 
2,000,000

 
 
 
 
 
3,896,930

 
 
 
3,896,930

 
 
 
 
 
 
 
 
 
 
Total Controlled Affiliated Privately Held Companies (cost: $11,767,175)
 
 
 
 
 
 
 
 
$
4,002,000

 
 
 
 
 
 
 
 
 
 
Total Investments in Controlled Affiliated Privately Held Companies (cost: $11,767,175)
 
 
 
 
 
 
 
 
$
4,002,000

 
 
 
 
 
 
 
 
 
 
Total Investments in Privately Held Companies and Publicly Traded Securities (cost: $82,064,050)
 
 
 
 
 
 
 
 
$
76,097,578

 
 
 
 
 
 
 
 
 
 

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
10
180 DEGREE CAPITAL CORP.
CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2018 (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Method of
Valuation (1)
 
Industry
 
Cost
 
Shares/
Principal
 
Value


Investment in Equity Method Privately Held Company (18) -
 
 
 
 
 
 
 
 
 
0.2% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately Held Company (Illiquid) (18) -
 
 
 
 
 
 
 
 
 
0.2% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accelerator IV-New York Corporation (4)(5)(9)
 
 
Research & Consulting Services
 
 
 
 
 
 
Identifying and managing emerging biotechnology companies
 
 
 
 
 
 
 
 
 
Series A Common Stock (acquired 7/21/14-12/5/17)
(E)
 
 
 
$
148,146

 
719,427

 
$
148,146

 
 
 
 
 
 
 
 
 
 
Total Investment in Equity Method Privately Held Company (cost: $148,146)
 
 
 
 
 
 
 
 
$
148,146

 
 
 
 
 
 
 
 
 
 
Total Investments (cost: $82,212,196)
 
 
 
 
 
 
 
 
$
76,245,724

 
 
 
 
 
 
 
 
 
 
Derivative Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated Rights to Payments (Illiquid) (19) -
 
 
 
 
 
 
 
 
 
2.5% of net assets at value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amgen, Inc. (4)(5)(20)
 
 
Biotechnology
 
 
 
 
 
 
Rights to Milestone Payments from Acquisition of BioVex Group, Inc. (acquired 3/4/11)
(I) (L3)
 
 
 
$
548,998

 
$
548,998

 
$
2,195,701

 
 
 
 
 
 
 
 
 
 
Xenio Holdings, Inc. (4)(5)(21)
 
 
Technology Hardware, Storage & Peripherals
 
 
 
 
 
 
Rights to Payments from the Merger with Xenio Systems, Inc. (acquired 10/20/17)
(I) (L3)
 
 
 
0

 
$
0

 
0

 
 
 
 
 
 
 
 
 
 
Total Unaffiliated Rights to Payments (cost: $548,998)
 
 
 
 
 
 
 
 
$
2,195,701

 
 
 
 
 
 
 
 
 
 
Total Derivative Investments (cost: $548,998)
 
 
 
 
 
 
 
 
$
2,195,701

 
 
 
 
 
 
 
 
 
 
Total Investments and Derivatives (cost: $82,761,194)
 
 
 
 
 
 
 
 
$
78,441,425

 
 
 
 
 
 
 
 
 
 
OTHER ASSETS (INCLUDING CASH) MINUS LIABILITIES
 
 
 
 
 
 
 
 
$
8,918,303

 
 
 
 
 
 
 
 
 
 
NET ASSETS (equivalent to $2.81 per share based on 31,121,562 shares of common stock outstanding)
 
 
 
 
 
 
 
 
$
87,359,728



The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
11
180 DEGREE CAPITAL CORP.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Notes to Consolidated Schedule of Investments

(1)
See "Note 1. Investment Valuation Procedures."
(2)
Investments in unaffiliated companies consist of investments in which we own less than five percent of the voting shares of the portfolio company. Investments in non-controlled affiliated companies consist of investments in which we own five percent or more, but less than 25 percent, of the voting shares of the portfolio company, or where we control one or more seats on the portfolio company’s board of directors but do not control the company. Investments in controlled affiliated companies consist of investments in which we own 25 percent or more of the outstanding voting rights of the portfolio company or otherwise control the company, including control of a majority of the seats on the board of directors, or more than 25 percent of the seats on the board of directors, with no other entity or person in control of more director seats than us.
(3)
The aggregate cost for federal income tax purposes of investments in unaffiliated privately held companies is $14,623,356. The gross unrealized appreciation based on the tax cost for these securities is $4,573,077. The gross unrealized depreciation based on the tax cost for these securities is $2,552,002.
(4)
We are subject to legal restrictions on the sale of some or all of our securities in this company. The total amount of restricted securities held is $49,824,954, or 57.0 percent of net assets.
(5)
Represents a non-income producing investment. Investments that have not paid dividends or interest within the last 12 months are considered to be non-income producing.
(6)
We received LLC Interests of 1.25 percent in AutoTech Ventures Management I, LLC ("AutoTech") pursuant to an Administrative Services Agreement between us and AutoTech and due to us following the termination of a former employee of the Company. These LLC Interests were separate from the compensation received for providing the administrative services under the agreement that were paid in cash. We are not investors in AutoTech. The LLC interests have a capital percentage of 0 percent.
(7)
D-Wave Systems, Inc., is located and is doing business primarily in Canada. We invested in D-Wave through Parallel Universes, Inc., a Delaware company. Our investment is denominated in Canadian dollars and is subject to foreign currency translation.
(8)
Initial investment was made in 2018.
(9)
See "Note 4. Commitments and Contingencies."
(10)
The aggregate cost for federal income tax purposes of investments in unaffiliated publicly traded securities is $21,245,841. The gross unrealized appreciation based on the tax cost for these securities is $1,021,108. The gross unrealized depreciation based on the tax cost for these securities is $3,923,836.
(11)
The aggregate cost for federal income tax purposes of investments in non-controlled affiliated privately held companies is $29,477,944. The gross unrealized appreciation based on the tax cost for these securities is $12,553,853. The gross unrealized depreciation based on the tax cost for these securities is $15,270,803.
(12)
Represents a non-operating entity that exists to collect future payments from licenses or other engagements and/or monetize assets for future distributions to investors and debt holders.
(13)
Produced Water Absorbents, Inc., also does business as ProSep, Inc. We placed our senior secured debt of this company on non-accrual status during the third quarter of 2018.
(14)
The aggregate cost for federal income tax purposes of investments in non-controlled affiliated publicly traded securities is $4,949,734. The gross unrealized appreciation based on the tax cost for these securities is $5,397,306. The gross unrealized depreciation based on the tax cost for these securities is $0.

The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
12
180 DEGREE CAPITAL CORP.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(15)
The stock options and restricted stock units were issued to Kevin Rendino for service on the Board of Directors of TST. Mr. Rendino entered into an assignment and assumption agreement with us that transfers all beneficial and voting interest to us. The stock options issued in May 2018 and the restricted stock issued in May 2018 are subject to vesting and therefore considered restricted securities as of September 30, 2018.
(16)
The aggregate cost for federal income tax purposes of investments in controlled affiliated privately held companies is $11,767,175. The gross unrealized appreciation based on the tax cost for these securities is $0. The gross unrealized depreciation based on the tax cost for these securities is $7,765,175.
(17)
On August 4, 2015, SiOnyx, Inc., reorganized its corporate structure to become a subsidiary of a new company, Black Silicon Holdings, Inc.  Our security holdings of SiOnyx were converted into securities of Black Silicon Holdings.  SiOnyx was then acquired by an undisclosed buyer.  Black Silicon Holdings owns a profit interest in the undisclosed buyer. We placed our secured convertible bridge note on non-accrual status during the second quarter of 2018.
(18)
The aggregate cost for federal income tax purposes of investments in our equity method privately held company is $148,146. Under the equity method, investments are carried at cost, plus or minus the Company's equity in the increases and decreases in the investee's net assets after the date of acquisition and certain other adjustments. The Company owns approximately 9 percent of Accelerator IV-New York Corporation.
(19)
The aggregate cost for federal income tax purposes of investments in unaffiliated rights to payments is $548,998. The gross unrealized appreciation based on the tax cost for these securities is $1,646,703. The gross unrealized depreciation based on the tax cost for these securities is $0.
(20)
If all the remaining milestones are met, we would receive $5,384,482. There can be no assurance as to how much of these amounts we will ultimately realize or when they will be realized, if at all.
(21)
In October 2017, Xenio Systems, Inc., merged with Xenio Holdings, Inc. In conjunction with this merger, all common stock of Xenio Systems, Inc., was canceled and shareholders were granted a right to a future payment in the event of a sale of Xenio Holdings, Inc. The maximum amount we could receive from such payments is approximately $11,000. There can be no assurance as to how much of these amounts we will ultimately realize or when they will be realized, if at all.


The accompanying unaudited notes are an integral part of this consolidated schedule of investments.
13
180 DEGREE CAPITAL CORP.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 2018 (UNAUDITED)


NOTE 1. INVESTMENT VALUATION PROCEDURES
 
Investments are stated at "value" as defined in the 1940 Act and in the applicable regulations of the Securities and Exchange Commission ("SEC") and in accordance with GAAP. Value, as defined in Section 2(a)(41) of the 1940 Act, is (i) the market price for those securities for which a market quotation is readily available and (ii) the fair value as determined in good faith by, or under the direction of, the Board of Directors for all other assets. The Valuation Committee, comprised of all of the independent Board members, is responsible for determining the valuation of the Company’s assets within the guidelines established by the Board of Directors. The Valuation Committee receives information and recommendations from management. An independent valuation firm also reviews select portfolio company valuations. The independent valuation firm does not provide proposed valuations. The fair values assigned to these investments are based on available information and do not necessarily represent amounts that might ultimately be realized when that investment is sold, as such amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated or become readily marketable. The Valuation Committee values the Company's investment assets as of the end of each calendar quarter and as of any other time requested by the Board of Directors.

Accounting Standards Codification Topic 820, "Fair Value Measurements and Disclosures," ("ASC 820") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). It applies fair value terminology to all valuations whereas the 1940 Act applies market value terminology to readily marketable assets and fair value terminology to other assets.
 
The main approaches to measuring fair value utilized are the market approach, the income approach and the hybrid approach.
 
•
Market Approach (M): The market approach may use quantitative inputs such as prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities and the values of market multiples derived from a set of comparable companies. The market approach may also use qualitative inputs such as progress toward milestones, the long-term potential of the business, current and future financing requirements and the rights and preferences of certain securities versus those of other securities. The selection of the relevant inputs used to derive value under the market approach requires judgment considering factors specific to the significance and relevance of each input to deriving value.
•
Income Approach (I): The income approach uses valuation techniques to convert future amounts (for example, revenue, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. Those valuation techniques include present value techniques; option-pricing models, such as the Black-Scholes-Merton formula (a closed-form model) and a binomial model (a lattice model), which incorporate present value techniques; and the multi-period excess earnings method, which is used to measure the fair value of certain assets.
•
Hybrid Approach (H): The hybrid approach uses elements of both the market approach and the income approach. The hybrid approach calculates values using the market and income approach, individually. The resulting values are then distributed among the share classes based on probability of exit outcomes.

ASC Topic 820 classifies the inputs used to measure fair value by these approaches into the following hierarchy:

•
Level 1 (L1): Unadjusted quoted prices in active markets for identical assets or liabilities;

•
Level 2 (L2): Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are in those markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers; and

•
Level 3 (L3): Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect our own assumptions that market participants would use to price the asset or liability based upon the best available information.


14

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement and are not necessarily an indication of risks associated with the investment.    

Our investment in Accelerator IV-New York Corporation is accounted for under the equity method of accounting as it represents non-controlling interest in operating entities that provide investment advisory services to the Company. Under the equity method, investments are carried at cost, plus or minus the Company’s equity in the increases and decreases in the investee’s net assets after the date of acquisition and certain other adjustments. Upon sale of investments, the values that are ultimately realized may be different from the fair value presented in the Company's consolidated schedule of investments. The difference could be material.


15

NOTE 2. FAIR VALUE OF INVESTMENTS
 
At September 30, 2018, our financial assets valued at fair value were categorized as follows in the fair value hierarchy:

 
 
Fair Value Measurement at Reporting Date Using:
 
 
Description
 
Unadjusted Quoted
Prices in Active
Markets for Identical
Assets (Level 1)

 
 
Significant Other
Observable Inputs
(Level 2)

 
 
Significant
Unobservable Inputs
(Level 3)

 
September 30, 2018

 
 
 
 
 
 
 
 
 
Privately Held Portfolio Companies:
 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
Preferred Stock
 
$
0

 
$
0

 
$
42,822,621

 
$
42,822,621

Bridge Notes
 
0

 
0

 
3,739,310

 
3,739,310

Common Stock
 
0

 
0

 
784,288

 
784,288

Warrants
 
0

 
0

 
61,206

 
61,206

Senior Secured Debt
 
0

 
0

 
0

 
0

LLC Interests
 
0

 
0

 
0

 
0

 
 
 
 
 
 
 
 
 
Publicly Traded Portfolio Companies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock
 
$
28,610,195

 
$
0

 
$
0

 
$
28,610,195

Warrants
 
0

 
3,114

 
618

 
3,732

Restricted Stock Units and Stock Options
 
0

 
0

 
76,226

 
76,226

 
 
 
 
 
 
 
 
 
Total Investments:
 
$
28,610,195

 
$
3,114

 
$
47,484,269

 
$
76,097,578

 
 
 
 
 
 
 
 
 
Derivative Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rights to Milestone Payments
 
$
0

 
$
0

 
$
2,195,701

 
$
2,195,701

 
 
 
 
 
 
 
 
 
Total Financial Assets:
 
$
28,610,195

 
$
3,114

 
$
49,679,970

 
$
78,293,279

















16

Significant Unobservable Inputs
 
The table below presents the valuation technique and quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Unobservable inputs are those inputs for which little or no market data exists and, therefore, require an entity to develop its own assumptions.

 
September 30, 2018
 
Valuation 
Approach(es)
 
Unobservable Input(s)
 
Range(s) (Weighted
Average(a))
 
 
 
 
 
 
 
 
 
 
 
 
 
Price Per Share
 
$1.30 ($1.30)
 
 
 
 
 
Volatility
 
79.4% (79.4%)
Preferred Stock
$
2,918,287

 
Hybrid Approach
 
Time to Exit / Cash Flows (Years)
 
4.7 (4.7)
 
 
 
 
 
Probability of Achieving Independent Milestones
 
12.5% (12.5%)
 
 
 
 
 
Probability of Achieving Dependent Milestones
 
30.7% - 85.3% (59.6%)
 
 
 
 
 
Price Per Share
 
$0.30 - $6.33 ($3.62)
 
 
 
 
 
Public Comparable Adjustment (Including Non-Performance Risk)
 
-80.4% - 19.0% (-2.2%)
 
 
 
 
 
Volatility
 
45.1% - 91.6% (72.3%)
Preferred Stock
27,625,881

 
Income Approach
 
Time to Exit / Cash Flows (Years)
 
1.8 - 8.3 (5.2)
 
 
 
 
 
Volatility
 
64.9% (64.9%)
 
 
 
 
 
Revenue Multiples
 
2.0 (2.0)
 
 
 
 
 
Time to Exit (Years)
 
0.3 (0.3)
 
 
 
 
 
Discount for Lack of Marketability
 
7.9% (7.9%)
Preferred Stock
12,278,453

 
Market Approach
 
Price Per Share
 
$0.00 - $1.95 ($1.65)
 
 
 
 
 
Estimated Value to Cost Ratio at Payout
 
0.07 (0.07)
Bridge Notes
3,739,310

 
Market Approach
 
Estimated Value to Cost Ratio at Conversion
 
1.00 - 1.58 (1.11)
 
 
 
 
 
Discount for Lack of Marketability
 
11.8% (11.8%)
 
 
 
 
 
Public Comparable Adjustment (Including Non-Performance Risk)
 
0.0% (0.0%)
 
 
 
 
 
Volatility
 
45.1% - 79.4% (73.9%)
 
 
 
 
 
Time to Exit (Years)
 
5.0 - 6.3 (5.2)
Common Stock
784,278

 
Income Approach
 
Price Per Share
 
$0.40 - $1.00 ($0.50)
 
 
 
 
 
Volatility
 
59.2% (59.2%)
 
 
 
 
 
Revenue Multiples
 
1.6 (1.6)
 
 
 
 
 
Time to Exit (Years)
 
0.7 (0.7)
 
 
 
 
 
Discount for Lack of Marketability
 
12.1% (12.1%)
Common Stock
10

 
Market Approach
 
Price Per Share
 
$0.00001 ($0.00001)
 
 
 
 
 
Price Per Share
 
$1.55 - $2.21 ($2.15)
 
 
 
 
 
Volatility
 
56.5% - 101.5% (57.3%)
Warrants
51,326

 
Income Approach
 
Time to Exit (Years)
 
2.4 - 6.4 (4.01)
Warrants
10,498

 
Market Approach
 
Price Per Share
 
$0.00 - $0.51 ($0.51)
 
 
 
 
 
Revenue Multiple
 
1.6x (1.6x)
 
 
 
 
 
Exit Date
 
0.7 (0.7)
 
 
 
 
 
Volatility Rate
 
59.2% (59.2%)
Senior Secured Debt
0

 
Market Approach
 
Discount for Lack of Marketability
 
12.1% (12.1%)
LLC Interests
0

 
Income Approach
 
Estimated Distributable Profits
 
$0 ($0)
 
 
 
 
 
 
 
 

17

 
September 30, 2018
 
Valuation 
Approach(es)
 
Unobservable Input(s)
 
Range(s) (Weighted
Average(a))
 
 
 
 
 
Volatility
 
47.5% (47.5%)
Restricted Stock Units and Stock Options
$
7,132

 
Income Approach
 
Time to Exit (Years)
 
0.3 (0.3)
 
 
 
 
 
Discount for Lack of Marketability
 
5.8% (5.8%)
 
 
 
 
 
Volatility