Filed pursuant to Rule 424(b)(3)

Registration No. 333-248850​

 

 

TRINITY CAPITAL INC.

 

Supplement No. 1 dated November 23, 2020

to

Prospectus dated October 20, 2020

 

This Supplement No. 1 dated November 23, 2020 (the “Supplement”) contains information that amends, supplements or modifies certain information contained in the accompanying prospectus of Trinity Capital Inc. (“we,” “us,” and “our”) dated October 20, 2020 (the “Prospectus”) and is part of, and should be read in conjunction with, the Prospectus. The Prospectus and this Supplement have been filed with the U.S. Securities and Exchange Commission and are available free of charge at www.sec.gov or by contacting us at 3075 West Ray Road, Suite 525, Chandler, Arizona 85226, calling us at (480) 374-5350 or visiting our corporate website located at www.trincapinvestment.com. Information on our website is not incorporated into or a part of the Prospectus and this Supplement. Capitalized terms used in this Supplement have the same meanings as in the Prospectus, unless otherwise stated herein.

 

Before investing in our 7.00% Notes due 2025 (the “Notes”), you should read carefully the Prospectus and this Supplement and consider carefully our investment objective, risks and expenses, including the discussion of the material risks of investing in the Notes in “Risk Factors” beginning on page 22 of the Prospectus and any other risk factors included in this Supplement. Investing in the Notes involves a high degree of risk, including credit risk and the risk of the use of leverage, and is highly speculative.

 

RECENT DEVELOPMENTS

 

On and effective November 16, 2020, Susan Echard resigned as our Chief Financial Officer and Treasurer, and our Board of Directors appointed David Lund as our Chief Financial Officer and Treasurer. In addition to these positions, Mr. Lund will continue to as our Executive Vice President — Finance and Strategic Planning.

 

QUARTERLY REPORT ON FORM 10-Q

FOR THE FISCAL QUARTER ENDED SEPTEMBER 30, 2020

 

On November 12, 2020, we filed our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 (the “Form 10-Q”) with the U.S. Securities and Exchange Commission. The Form 10-Q, excluding the exhibits thereto, is attached to this Supplement as Annex A, and incorporated herein by reference.

 

 

 

 

ANNEX A

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

(Mark One)

 

x 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: 000-56139

 

 

 

TRINITY CAPITAL INC.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland 35-2670395
(State or other jurisdiction of incorporation or
organization)
(IRS Employer Identification No.)

 

3075 West Ray Road
Suite 525
Chandler, Arizona
85226
(Address of principal executive offices) (Zip Code)

 

(480) 374-5350

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of each exchange on which registered
None   None   None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   x  No   ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes   ¨   No   ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer x Smaller reporting company ¨
    Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Act).  Yes   ¨   No   x

 

As of November 12, 2020, the registrant had 18,236,043 shares of common stock ($0.001 par value per share) outstanding.

 

 

 

 

 

TRINITY CAPITAL INC.

FORM 10-Q

 

TABLE OF CONTENTS

 

      PAGE 
NO.
PART I FINANCIAL INFORMATION   3
Item 1. Consolidated Financial Statements   3
  Consolidated Statements of Assets and Liabilities as of September 30, 2020 (unaudited) and December 31, 2019   3
  Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2020 and the period August 12, 2019 (date of inception) to September 30, 2019 (unaudited)   4
  Consolidated Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2020 and the period August 12, 2019 (date of inception) to September 30, 2019 (unaudited)   5
  Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2020 and the period August 12, 2019 (date of inception) to September 30, 2019 (unaudited)   7
  Consolidated Schedule of Investments as of September 30, 2020 (unaudited)   8
  Notes to Consolidated Financial Statements (unaudited)   22
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations   48
Item 3. Quantitative and Qualitative Disclosures About Market Risk   66
Item 4. Controls and Procedures   67
PART II OTHER INFORMATION   68
Item 1. Legal Proceedings   68
Item 1A. Risk Factors   68
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds   75
Item 3. Defaults Upon Senior Securities   75
Item 4. Mine Safety Disclosures   75
Item 5. Other Information   75
Item 6. Exhibits   76
SIGNATURES   77

 

2

 

 

PART I: FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

TRINITY CAPITAL INC.

Consolidated Statements of Assets and Liabilities

(In thousands, except share and per share data)

 

   September 30,   December 31, 
   2020   2019 
    (unaudited)      
ASSETS          
Investments at fair value:          
Control investments (cost of $57,147 and $0, respectively)  $49,797   $ 
Affiliate investments (cost of $25,760 and $0, respectively)   26,231     
Non-control / Non-affiliate investments (cost of $356,415 and $0, respectively)   349,456     
Total investments (cost of $439,322 and $0, respectively)   425,484     
Cash and cash equivalents   36,323     
Restricted cash   16,331     
Interest receivable   3,158     
Deferred financing costs       3,525 
Deferred offering costs       2,677 
Prepaid expenses   511     
Other assets   621     
Total assets  $482,428   $6,202 
           
LIABILITIES          
Credit facility, net of $2,589 and $0, respectively, of unamortized deferred financing costs  $112,411   $ 
Notes payable, net of $4,822, and $0, respectively, of unamortized deferred financing costs   120,178     
Accounts payable and accrued liabilities   5,051    5,668 
Due to related party       1,058 
Other liabilities   7,463     
Total liabilities   245,103    6,726 
           
Commitments and contingencies (Note 6)          
           
NET ASSETS          
Common stock, $0.001 par value per share (200,000,000 authorized, 18,236,043 and 10 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively)   18     
Paid-in capital in excess of par   262,534     
Distributable earnings (accumulated loss)   (25,227)   (524)
Total net assets   237,325    (524)
Total liabilities and net assets  $482,428   $6,202 
NET ASSET VALUE PER SHARE  $13.01   $(52,418.20)

 

See accompanying notes to consolidated financial statements.

 

3

 

 

TRINITY CAPITAL INC.

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

                For the Period  
    For the Three     For the Nine     of August 12, 2019  
    Months Ended     Months Ended     (date of inception)  
    September 30, 2020     September 30, 2020     to September 30, 2019  
INVESTMENT INCOME:                        
Interest income:                        
Control investments   $ 1,045     $ 2,617     $  
Affiliate investments     144       876        
Non-Control / Non-Affiliate investments     11,372       33,322        
Total interest income     12,561       36,815        
Fee income:                        
One-time fee income:                        
Non-Control / Non-Affiliate investments     968       2,806        
Total fee income     968       2,806        
Total investment income     13,529       39,621        
                         
EXPENSES:                        
Interest expense and other debt financing costs     3,965       12,554        
Compensation and benefits     2,782       5,841        
General and administrative     1,237       3,265       38  
Total expenses     7,984       21,660       38  
                         
NET INVESTMENT INCOME     5,545       17,961       (38 )
                         
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS:                        
Control investments                  
Affiliate investments                  
Non-Control / Non-Affiliate investments     (1,490 )     (4,374 )      
Net realized loss from investments     (1,490 )     (4,374 )      
                         
NET CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) FROM INVESTMENTS:                        
Control investments     818       (7,350 )      
Affiliate investments     2,605       471        
Non-Control / Non-Affiliate investments     4,856       (6,957 )      
Net change in unrealized appreciation/(depreciation) from investments     8,279       (13,836 )      
                         
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS BEFORE FORMATION COSTS     12,334       (249 )     (38 )
Costs related to the acquisition of Trinity Capital Holdings and Legacy Funds           (15,586 )      
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ 12,334     $ (15,835 )   $ (38 )
                         
NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED   $ 0.31     $ 1.00       $N/M  
                         
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED   $ 0.68     $ (0.88 )     N/M  
                         
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED     18,166,491       18,033,173       10  

 

See accompanying notes to consolidated financial statements.

 

4

 

 

TRINITY CAPITAL INC.

Consolidated Statements of Changes in Net Assets

(In thousands, except share and per share data)

(Unaudited)

 

For the Three Months Ended September 30, 2020:

               Distributable     
               Earnings     
   Common Stock   Paid In Capital   (Accumulated   Total 
   Shares   Par Value   in Excess of Par   Loss)   Net Assets 
Balance as of June 30, 2020 (unaudited)   18,137,600   $18   $261,292   $(32,664)  $228,646 
Distributions to stockholders               (4,897)   (4,897)
Net increase (decrease) in net assets resulting from operations:                         
Net investment income               5,545    5,545 
Net realized gain (loss) from investments               (1,490)   (1,490)
Net unrealized appreciation (depreciation) from investments               8,279    8,279 
Issuance of common stock pursuant to distribution reinvestment plan   98,443         1,242        1,242 
Balance as of September 30, 2020 (unaudited)   18,236,043   $18   $262,534   $(25,227)  $237,325 

 

 

For the Nine Months Ended September 30, 2020:

           Paid In Capital  

Distributable

Earnings

     
   Common Stock   in Excess of   (Accumulated   Total 
   Shares   Par Value   Par Value   Loss)   Net Assets 
Balance as of December 31, 2019 (audited)   10   $   $   $(524)  $(524)
Issuance of shares related to Formation Transaction (1)   9,716,517    10    145,738        145,748 
Issuance of common stock, net of issuance costs   8,333,333    8    114,463        114,471 
Distributions to stockholders               (8,868)   (8,868)
Net increase (decrease) in net assets resulting from operations:                         
Net investment income               17,961    17,961 
Net realized gain (loss) from investments               (4,374)   (4,374)
Net unrealized appreciation (depreciation) from investments               (13,836)   (13,836)
Issuance of common stock pursuant to distribution reinvestment plan   186,183        2,333        2,333 
Costs related to the acquisition of Trinity Capital Holdings and Legacy Funds               (15,586)   (15,586)
Balance as of September 30, 2020 (unaudited)   18,236,043   $18   $262,534   $(25,227)  $237,325 

(1)See “Note 1 - Organization and Basis of Presentation” and “Note 12 - Formation Transactions”.

 

See accompanying notes to consolidated financial statements.

 

5

 

 

TRINITY CAPITAL INC.

Consolidated Statements of Changes in Net Assets

(In thousands, except share and per share data)

(Unaudited)

 

For the Period August 12, 2019 (date of inception) to September 30, 2019:

 

               Distributable     
           Paid In Capital   Earnings     
   Common Stock   in Excess of   (Accumulated   Total 
   Shares   Par Value   Par Value   Loss)   Net Assets 
Balance as of August 12, 2019 (date of inception)     $    $    $    $  
Issuance of common stock, net of issuance costs   10                 
Net increase (decrease) in net assets resulting from operations:                         
Net investment income               (38)   (38)
Balance as of September 30, 2019 (unaudited)   10   $   $   $(38)  $(38)

 

See accompanying notes to consolidated financial statements.

 

6

 

 

 

TRINITY CAPITAL INC.

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

 

   For the Nine Months Ended  

For the Period August 12, 2019

(date of inception)

 
   September 30, 2020   to September 30, 2019 
Cash flows from operating activities:          
Net decrease in net assets resulting from operations  $(15,835)  $(38)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by (used in) operating activities:          
Purchase of investments   (137,505)    
Proceeds from sales and paydowns of investments   118,644     
Net change in unrealized depreciation from investments   13,836     
Costs related to the acquisition of Trinity Capital Holdings and Legacy Funds   15,586     
Net realized gain/(loss) from investments   4,374     
Accretion of original issue discounts and end of term payments on investments   (7,810)    
Amortization of deferred financing costs   2,182     
Depreciation of fixed assets   33     
Change in operating assets and liabilities          
Increase in interest receivable   (2,045)    
Increase in prepaid expenses   (511)    
Increase in other assets   (250)    
Increase in accounts payable and accrued liabilities   3,404     
Decrease in due to related party   (1,058)   38 
Increase in other liabilities   3,053     
Net cash used in operating activities   (3,902)    
           
Cash flows used in investing activities:          
Formation Transactions of Legacy Funds, net of cash acquired (1)   (89,515)    
Acquisition of Trinity Capital Holdings   (2,211)    
Acquisition of fixed assets   (61)    
Net cash used in investing activities   (91,787)    
           
Cash flows provided by (used in) financing activities          
Issuance of common stock   125,000     
Common stock issuance costs   (10,529)    
Proceeds from issuance of notes payable   125,000     
Financing costs paid related to notes payable   (5,610)    
Distributions paid   (6,535)    
Proceeds under credit facility   10,000     
Repayments under credit facility   (85,000)    
Financing costs paid related to credit facility   (3,983)    
Net cash provided by financing activities   148,343     
           
Net increase in cash, cash equivalents and restricted cash   52,654     
Cash, beginning of period        
Cash, cash equivalents and restricted cash at end of period  $52,654   $ 
           
Supplemental and non-cash investing and financing activities:          
Cash paid for interest  $9,592   $ 
Shares issued to Trinity Capital Holdings (1)  $8,000   $ 
Assumption of severance liability (1)  $3,508   $ 
Shares issued to the Legacy Investors as part of the Formation Transactions (1)  $137,748   $ 
Issuance of common stock pursuant to distribution reinvestment plan  $2,333   $ 
Non-cash settlement of investments  $731   $ 

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statement of Cash Flows:

 

   As of September 30, 
   2020   2019 
Cash and cash equivalents  $36,323   $ 
Restricted cash   16,331     
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows  $52,654   $ 

 

 

(1) See “Note 1 - Organization and Basis of Presentation” and “Note 12 - Formation Transactions”

 

See accompanying notes to consolidated financial statements.

 

7

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)  Type of Investment (3)  Maturity Date  Interest Rate (4)  Principal 
 Amount (5)
   Cost   Fair Value (6) 
Debt Securities                        
                         
Administrative and Support and Waste Management and Remediation (2)                  
CleanPlanet Chemical, Inc.  Equipment Financing  January 1, 2022  Fixed interest rate 9.2%; EOT 9.0%  $1,526   $1,800   $1,755 
   Equipment Financing  May 1, 2022  Fixed interest rate 9.5%; EOT 9.0%   380    429    421 
   Equipment Financing  August 1, 2022  Fixed interest rate 9.8%; EOT 9.0%   466    513    503 
   Equipment Financing  February 1, 2023  Fixed interest rate 9.9%; EOT 9.0%   937    979    979 
Total CleanPlanet Chemical, Inc.            3,309    3,721    3,658 
                         
Seaon Environmental, LLC  Equipment Financing  January 1, 2023  Fixed interest rate 9.0%; EOT 12.0%  $2,374   $2,562   $2,495 
                         
Sub-total: Administrative and Support and Waste Management and Remediation (2.6%)*  $5,683   $6,283   $6,153 
                         
Agriculture, Forestry, Fishing and Hunting (2)                    
Bowery Farming, Inc.  Equipment Financing  January 1, 2023  Fixed interest rate 8.5%; EOT 8.5%  $2,762   $3,000   $2,879 
   Equipment Financing  February 1, 2023  Fixed interest rate 8.7%; EOT 8.5%   2,718    2,880    2,918 
   Equipment Financing  May 1, 2023  Fixed interest rate 8.7%; EOT 8.5%   3,346    3,513    3,542 
Total Bowery Farming, Inc.            8,826    9,393    9,339 
                         
Robotany, Inc.  Equipment Financing  January 1, 2024  Fixed interest rate 7.6%; EOT 22.0%  $1,747   $1,736   $1,761 
                         
Sub-total: Agriculture, Forestry, Fishing and Hunting (4.7%)*  $10,573   $11,129   $11,100 
                         
Construction                        
Dandelion Energy, Inc.  Equipment Financing  April 1, 2024  Fixed interest rate 9.0%; EOT 12.5%  $490   $488   $500 
                         
Project Frog, Inc. (7)  Secured Loan  May 1, 2023  Fixed interest rate 12.0%  $4,128   $4,029   $4,018 
                         
Sub-total: Construction (1.9%)*  $4,618   $4,517   $4,518 
                         
Educational Services (2)                        
Examity, Inc.  Secured Loan  February 1, 2022  Fixed interest rate 11.5%; EOT 8.0%  $4,211   $4,698   $4,591 
   Secured Loan  February 1, 2022  Fixed interest rate 11.5%; EOT 4.0%   1,985    2,095    2,096 
   Secured Loan  January 1, 2023  Fixed interest rate 12.25%; EOT 4.0%   1,069    1,103    1,100 
Total Examity, Inc.            7,265    7,896    7,787 
                         
Qubed, Inc. dba Yellowbrick  Secured Loan  April 1, 2023  Variable interest rate PRIME + 8.25% or Floor rate 11.5%; EOT 5.0% (18)  $2,000   $2,033   $2,035 
   Secured Loan  October 1, 2023  Fixed interest rate 11.5%; EOT 4.0%   500    501    508 
Total Qubed, Inc. dba Yellowbrick            2,500    2,534    2,543 
                         
Sub-total: Educational Services (4.4%)*  $9,765   $10,430   $10,330 

 

8

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)  Type of Investment (3)  Maturity Date  Interest Rate (4)  Principal 
 Amount (5)
   Cost   Fair Value (6) 
Debt Securities, Continued                     
                         
Finance and Insurance (2)                        
DailyPay, Inc.  Secured Loan (19) (23)  October 1, 2024  Variable interest rate PRIME + 7.0% or Floor rate 12.0%; EOT 6.0% (18)  $340   $   $ 
                         
Petal Card, Inc.  Secured Loan  December 1, 2023  Fixed interest rate 11.0%; EOT 3.0%  $10,000   $9,952   $10,043 
                         
Sub-total: Finance and Insurance (4.2%)*        $10,340   $9,952   $10,043 
                         
Health Care and Social Assistance (2)                     
Lark Technologies, Inc.  Secured Loan  April 1, 2025  Variable interest rate PRIME + 8.25% or Floor rate 11.5%; EOT 4.0% (18)  $5,000   $4,774   $4,774 
                         
WorkWell Prevention & Care  Secured Loan  March 1, 2024  Fixed interest rate 8.0%; EOT 10.0%  $3,370   $3,591   $3,383 
   Secured Loan  March 1, 2024  Fixed interest rate 8.0%; EOT 10.0%   700    729    701 
Total WorkWell Prevention & Care (7)            4,070    4,320    4,084 
                         
Sub-total: Health Care and Social Assistance (3.7%)*     $9,070   $9,094   $8,858 
                         
Information (2)                        
Figg, Inc.  Secured Loan  January 1, 2022  Fixed interest rate 12.0%; EOT 5.0%  $1,467   $1,584   $1,589 
                         
Firefly Systems, Inc.  Equipment Financing  February 1, 2023  Fixed interest rate 9.0%; EOT 10.0%  $4,372   $4,401   $4,314 
   Equipment Financing  September 1, 2023  Fixed interest rate 9.0%; EOT 10.0%   3,472    3,519    3,519 
   Equipment Financing  October 1, 2023  Fixed interest rate 9.0%; EOT 10.0%   419    423    423 
Total Firefly Systems, Inc.            8,263    8,343    8,256 
                         
Gobiquity, Inc.  Equipment Financing  April 1, 2022  Fixed interest rate 7.5%; EOT 20.0%  $352   $434   $436 
                         
Hytrust, Inc.  Secured Loan  February 1, 2021  Fixed interest rate 11.1%; EOT 10.5%  $482   $993   $790 
                         
Oto Analytics, Inc.  Secured Loan  March 1, 2023  Fixed interest rate 11.5%; EOT 6.0%  $8,222   $8,615   $8,659 
                         
RapidMiner, Inc.  Secured Loan  October 1, 2023  Fixed interest rate 12.0%; EOT 7.5%  $10,000   $10,011   $9,999 
                         
Smule, Inc.  Secured Loan  January 1, 2022  Fixed interest rate 0.0% (24)  $204   $204   $185 
                         
STS Media, Inc. (9)  Secured Loan  May 1, 2022  Fixed interest rate 11.9%; EOT 4.0%  $7,811   $737   $100 
                         
Unitas Global, Inc.  Equipment Financing  July 1, 2021  Fixed interest rate 9.0%; EOT 12.0%  $861   $1,195   $1,169 
   Equipment Financing  April 1, 2021  Fixed interest rate 7.8%; EOT 6.0%   104    124    124 
Total Unitas Global, Inc.            965    1,319    1,293 
                         
Sub-total: Information (13.2%)*        $37,766   $32,240   $31,307 

 

9

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)  Type of Investment (3)  Maturity Date  Interest Rate (4)  Principal 
 Amount (5)
   Cost   Fair Value (6) 
Debt Securities, Continued                     
                         
Manufacturing (2)                        
AyDeeKay LLC  Secured Loan  October 1, 2022  Variable interest rate PRIME + 7.5% or Floor rate 10.75%; EOT 3.0% (18)  $11,325   $11,578   $11,220 
                         
BHCosmetics, LLC  Equipment Financing  March 1, 2021  Fixed interest rate 8.9%; EOT 5.0%  $262   $318   $319 
   Equipment Financing  April 1, 2021  Fixed interest rate 8.7%; EOT 5.0%   314    368    369 
Total BHCosmetics, LLC            576    686    688 
                         
Footprint International Holding, Inc.  Equipment Financing  March 1, 2024  Fixed interest rate 10.3%; EOT 8.0%  $15,747   $16,068   $15,979 
   Secured Loan  July 1, 2024  Fixed interest rate 12.0%; EOT 9.0%   7,000    7,031    7,100 
Total Footprint International Holding, Inc.            22,747    23,099    23,079 
                         
Happiest Baby, Inc.  Equipment Financing  September 1, 2022  Fixed interest rate 8.4%; EOT 9.5%  $1,052   $1,141   $1,119 
   Equipment Financing  November 1, 2022  Fixed interest rate 8.6%; EOT 9.5%   841    901    904 
   Equipment Financing  January 1, 2023  Fixed interest rate 8.6%; EOT 9.5%   800    843    848 
   Equipment Financing  June 1, 2023  Fixed interest rate 8.2%; EOT 9.5%   985    1,023    1,013 
   Equipment Financing  January 1, 2024  Fixed interest rate 7.8%; EOT 9.5%   1,344    1,347    1,347 
Total Happiest Baby, Inc.            5,022    5,255    5,231 
                         
Health-Ade, LLC  Equipment Financing  February 1, 2022  Fixed interest rate 9.4%; EOT 15.0%  $1,657   $2,142   $2,148 
   Equipment Financing  April 1, 2022  Fixed interest rate 8.6%; EOT 15.0%   931    1,154    1,155 
   Equipment Financing  July 1, 2022  Fixed interest rate 9.1%; EOT 15.0%   2,257    2,682    2,690 
Total Health-Ade, LLC            4,845    5,978    5,993 
                         
Mainspring Energy, Inc.  Secured Loan  August 1, 2023  Fixed interest rate 11.0%; EOT  3.8%  $9,276   $9,404   $9,316 
                         
Miyoko's Kitchen  Equipment Financing  September 1, 2022  Fixed interest rate 8.8%; EOT 9.0%  $660   $685   $677 
   Equipment Financing  March 1, 2023  Fixed interest rate 8.9%; EOT 9.0%   957    964    964 
Total Miyoko's Kitchen            1,617    1,649    1,641 
                         
Molekule, Inc.  Equipment Financing  January 1, 2024  Fixed interest rate 8.8%; EOT 10.0%  $2,707   $2,713   $2,693 
   Equipment Financing  April 1, 2024  Fixed interest rate 9.0%; EOT 10.0%   581    581    581 
Total Molekule, Inc.            3,288    3,294    3,274 
                         
Second Nature Brands, Inc.  Equipment Financing  April 1, 2024  Fixed interest rate 9.7%; EOT 11.50%  $2,356   $2,274   $2,274 
                         
Store Intelligence, Inc. (8)  Secured Loan  June 1, 2024  Fixed interest rate 12.0%; EOT 7.8%  $12,001   $12,143   $12,139 
                         
Vertical Communications, Inc.  Secured Loan  November 1, 2024  Fixed interest rate 9.5%; EOT 26.4%  $12,000   $12,705   $12,279 
   Secured Loan  July 1, 2022  Fixed interest rate 9.5%   924    924    922 
Total Vertical Communications, Inc. (7)            12,924    13,629    13,201 
                         
Sub-total:  Manufacturing (37.1%)*       $85,977   $88,989   $88,056 

 

10

 

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of Investment (3)   Maturity Date   Interest Rate (4)   Principal
Amount (5)
  Cost   Fair
Value (6)
Debt Securities, Continued                              
                               
Pharmaceutical (2)                              
Exela Pharma Sciences, LLC   Equipment Financing   October 1, 2021   Fixed interest rate 11.4%; EOT 11.0%   $  2,595   $  3,227   $  3,203
    Equipment Financing (19)   January 1, 2022   Fixed interest rate 11.6%; EOT 11.0%      1,372      231      224
Total Exela Pharma Sciences, LLC                  3,967      3,458      3,427
                               
Zosano Pharma Corporation   Equipment Financing   April 1, 2022   Fixed interest rate 9.4%; EOT 12.0%   $  2,537   $  2,992   $  2,821
    Equipment Financing   July 1, 2022   Fixed interest rate 9.7%; EOT 12.0%      1,655      1,881      1,809
    Equipment Financing   January 1, 2023   Fixed interest rate 9.9%; EOT 12.0%      1,728      1,858      1,850
    Equipment Financing   April 1, 2023   Fixed interest rate 9.9%; EOT 12.0%      1,905      2,002      2,026
    Equipment Financing   May 1, 2023   Fixed interest rate 10.5%; EOT 12.0%      1,396      1,481      1,481
Total Zosano Pharma Corporation                  9,221      10,214      9,987
                               
Sub-total:  Pharmaceutical (5.7%)*               $  13,188   $  13,672   $  13,414
                               
Professional, Scientific, and Technical Services (2)                              
Augmedix, Inc.   Secured Loan   April 1, 2023   Fixed interest rate 12.0%; EOT 6.5%   $  9,422   $  9,498   $  9,512
                               
BackBlaze, Inc.   Equipment Financing   January 1, 2023   Fixed interest rate 7.2%; EOT 11.5%   $  1,011   $  1,130   $  1,128
    Equipment Financing   April 1, 2023   Fixed interest rate 7.4%; EOT 11.5%      129      141      141
    Equipment Financing   June 1, 2023   Fixed interest rate 7.4%; EOT 11.5%      990      1,071      1,068
    Equipment Financing   August 1, 2023   Fixed interest rate 7.5%; EOT 11.5%      195      209      208
    Equipment Financing   September 1, 2023   Fixed interest rate 7.7%; EOT 11.5%      200      214      212
    Equipment Financing   October 1, 2023   Fixed interest rate 7.5%; EOT 11.5%      201      213      211
    Equipment Financing   November 1, 2023   Fixed interest rate 7.2%; EOT 11.5%      670      711      703
    Equipment Financing   December 1, 2023   Fixed interest rate 7.5%; EOT 11.5%      885      931      922
    Equipment Financing   January 1, 2024   Fixed interest rate 7.4%; EOT 11.5%      770      806      797
    Equipment Financing   February 1, 2024   Fixed interest rate 7.4%; EOT 11.5%      784      817      808
    Equipment Financing   March 1, 2024   Fixed interest rate 7.2%; EOT 11.5%      680      708      700
    Equipment Financing   April 1, 2024   Fixed interest rate 7.4%; EOT 11.5%      205      212      214
    Equipment Financing   May 1, 2024   Fixed interest rate 7.3%; EOT 11.5%      1,327      1,367      1,360
    Equipment Financing   August 1, 2024   Fixed interest rate 7.5%; EOT 11.5%      1,416      1,436      1,436
     Equipment Financing (19)   October 1, 2024   Fixed interest rate 7.2%; EOT 11.5%      —      1      1
Total BackBlaze, Inc.                  9,463      9,967      9,909
                               
Cuebiq, Inc.   Secured Loan   April 1, 2024   Variable interest rate PRIME + 7.25% or Floor rate 12%; EOT 4.5% (18)   $  5,000   $  5,005   $  5,035
                               
Edeniq, Inc.   Secured Loan   June 1, 2021   Fixed interest rate 13.0%; EOT 9.5%   $  3,401   $  1,464   $  1,204
    Secured Loan   September 1, 2021   Fixed interest rate 13.0%; EOT 9.5%      2,554      1,034      909
Total Edeniq, Inc. (7) (9)                  5,955      2,498      2,113

 

11

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of Investment (3)   Maturity Date   Interest Rate (4)   Principal
Amount (5)
  Cost   Fair
Value (6)
Debt Securities, Continued                              
                               
Professional, Scientific, and Technical Services, Continued                        
Hologram Inc.   Secured Loan   February 1, 2024   Variable interest rate PRIME + 6.25% or Floor rate 11.25%; EOT 5.0% (18)   $  3,000   $  2,986   $  3,228
                               
iHealth Solutions, LLC   Secured Loan   December 1, 2023   Variable interest rate PRIME + 7.75% or Floor rate 12.0%; EOT 10% (18)   $  4,000   $  4,211   $  4,000
                               
Incontext Solutions, Inc.   Secured Loan   October 1, 2023   Fixed interest rate 11.75%; EOT 11.4%   $  5,649   $  7,317   $  7,083
                               
Machine Zone, Inc.   Equipment Financing   January 1, 2020   Fixed interest rate 6.0%; EOT 19.8% (16)   $  —      67      67
                               
Matterport, Inc.   Secured Loan   May 1, 2022   Fixed interest rate 11.5%; EOT 5.0%   $  5,976   $  6,348   $  6,262
                               
Pendulum Therapeutics, Inc.   Equipment Financing   May 1, 2023   Fixed interest rate 7.7%; EOT 5.0%   $  381   $  363   $  392
    Equipment Financing   August 1, 2023   Fixed interest rate 7.8%; EOT 5.0%      2,264      2,312      2,301
    Equipment Financing   October 1, 2023   Fixed interest rate 7.7%; EOT 5.0%      665      663      666
    Equipment Financing   February 1, 2024   Fixed interest rate 9.8%; EOT 6.0%      955     946      946.00
Total Pendulum Therapeutics, Inc.                  4,265      4,284      4,305
                               
Reciprocity, Inc.   Secured Loan   October 1, 2024   Variable interest rate PRIME + 8.00% or Floor rate 11.3%; EOT 2.0% (18)   $  10,000   $  9,829   $  9,829
                               
Sun Basket, Inc.   Secured Loan   May 1, 2022   Fixed interest rate 11.8%; EOT 5.0%   $  8,977   $  9,534   $  9,470
                               
Utility Associates, Inc. (9)   Secured Loan   October 1, 2023   Fixed interest rate 11.0%   $  750   $  830   $  594
                               
Vidsys, Inc.   Secured Loan   November 1, 2020   Fixed interest rate 12.0% (8.0% current + 4.0% PIK) (9) (17)   $  5,000   $  4,896   $  1,290
    Secured Loan   October 1, 2023   Fixed interest rate 0.0% (24)      1,600      —      —
Total Vidsys, Inc. (8)                  6,600      4,896      1,290
                               
Sub-total:  Professional, Scientific, and Technical Services (30.6%)*       $  79,057   $  77,270   $  72,697

 

12

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of Investment (3)   Maturity Date   Interest Rate (4)   Principal
Amount (5)
  Cost   Fair
Value (6)
Debt Securities, Continued                              
                               
Real Estate and Rental and Leasing (2)                              
EquipmentShare, Inc.   Equipment Financing   July 1, 2023   Fixed interest rate 10.7%; EOT 5.0%   $  8,187   $  8,270   $  8,241
    Equipment Financing   August 1, 2023   Fixed interest rate 10.1%; EOT 5.0%      936      944      944
    Equipment Financing   September 1, 2023   Fixed interest rate 10.2%; EOT 5.0%      2,062      2,074      2,074
    Equipment Financing   October 1, 2023   Fixed interest rate 10.4%; EOT 5.0%      3,705      3,713      3,713
    Equipment Financing   October 1, 2024   Fixed interest rate 8.3%; EOT 10.0%      456      456      456
Total EquipmentShare, Inc.                  15,346      15,457      15,428
                               
Knockaway, Inc.   Secured Loan   December 1, 2023   Fixed interest rate 11.0%; EOT 3.0%   $  10,000   $  10,068   $  10,066
    Secured Loan   February 1 , 2024   Fixed interest rate 11.0%; EOT 3.0%      2,500      2,510      2,547
    Secured Loan   March 1, 2024   Fixed interest rate 11.0%; EOT 3.0%      2,500      2,507      2,546
Total Knockaway, Inc.                  15,000      15,085      15,159
                               
Wanderjaunt, Inc.   Equipment Financing   June 1, 2023   Fixed interest rate 10.2%; EOT 12.0%   $  421   $  410   $  436
    Equipment Financing   August 1, 2023   Fixed interest rate 10.2%; EOT 12.0%      1,333      1,396      1,364
Total Wanderjaunt, Inc.                  1,754      1,806      1,800
                               
Sub-total:  Real Estate and Rental and Leasing (13.6%)*       $  32,100   $  32,348   $  32,387
                               
Retail Trade (2)                              
Birchbox, Inc. (7)   Secured Loan   July 1, 2024   Fixed interest rate 9.0%; EOT 3.0%   $  10,000   $  10,397   $  9,924
                               
Gobble, Inc.   Secured Loan   July 1, 2023   Fixed interest rate 11.3%; EOT 6.0%   $  3,726   $  3,798   $  3,759
    Secured Loan   July 1, 2023   Fixed interest rate 11.5%; EOT 6.0%      1,872      1,908      1,913
Total Gobble Inc.                  5,598      5,706      5,672
                               
Madison Reed, Inc.   Secured Loan   May 1, 2024   Variable interest rate PRIME + 6.0% or Floor rate 10.3%; EOT 4.0% (18)   $  17,500   $  17,391   $  17,700
                               
UnTuckIt, Inc.   Secured Loan   June 1, 2024   Fixed interest rate 12.0%; EOT 5.0%   $  20,000   $  21,107   $  19,605
                               
Sub-total:  Retail Trade (22.3%)*               $  53,098   $  54,601   $  52,901

 

13

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of Investment (3)   Maturity Date   Interest Rate (4)   Principal
Amount (5)
  Cost   Fair
Value (6)
Debt Securities, Continued                              
                               
Utilities (2)                              
Invenia, Inc.   Secured Loan   January 1, 2023   Fixed interest rate 11.5%; EOT 5.0%   $  7,258   $  7,733   $  7,654
    Secured Loan   May 1, 2023   Fixed interest rate 11.5%; EOT 5.0%      3,620      3,832      3,838
    Secured Loan   January 1, 2024   Fixed interest rate 11.5%; EOT 5.0%      3,000      3,043      3,159
    Secured Loan   February 1, 2024   Fixed interest rate 11.5%; EOT 5.0%      4,000      4,085      4,210
    Secured Loan   July 1, 2024   Fixed interest rate 11.5%: EOT 5.0%      4,000      4,025      4,070
Total Invenia, Inc. (21)                  21,878      22,718      22,931
                               
Sub-total:  Utilities (0.0%)*               $  21,878   $  22,718   $  22,931
                               
Wholesale Trade                              
BaubleBar, Inc.   Secured Loan   March 1, 2023   Fixed interest rate 11.5%; EOT 7.3%   $  6,305   $  7,099   $  6,644
                               
GrubMarket, Inc.   Secured Loan   July 1, 2024   Fixed interest rate 10.5%; EOT 3.0%   $  10,000   $  9,830   $  10,037
                               
Sub-total:  Wholesale Trade (7.0%)*               $  16,305   $  16,929   $  16,681
                               
Total:  Debt Securities (160.7%)* (22)               $  389,418   $  390,172   $  381,376

 

14

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of
 Investment (3)
  Expiration Date   Series   Shares   Strike Price   Cost   Fair Value (6)
Warrant Investments                                  
                                   
Agriculture, Forestry, Fishing and Hunting (2)                                  
Bowery Farming, Inc.   Warrant   June 10, 2029   Common Stock    68,863   $  5.08   $  410   $  395
                                   
Mainspring Energy, Inc.   Warrant   July 9, 2029   Common Stock    140,186   $  1.15   $  283   $  385
                                   
Robotany, Inc.   Warrant   July 19, 2029   Common Stock    23,579   $  1.52   $  128   $  39
                                   
Sub-Total: Agriculture, Forestry, Fishing and Hunting (0.3%)*                 $  821   $  819
                                   
Construction (2)                                  
Project Frog, Inc. (7)   Warrant   July 26, 2026   Preferred Series AA    391,990   $  0.19   $  18   $  2
                                   
Sub-Total: Construction (0.0%)*                         $  18   $  2
                                   
Educational Services (2)                                  
Qubed, Inc. dba Yellowbrick   Warrant   September 28, 2028   Common Stock    526,316   $  0.38   $  120   $  262
                                   
Sub-Total: Educational Services (0.1%)*                         $  120   $  262
                                   
Finance and Insurance (2)                                  
DailyPay, Inc.   Warrant   September 30, 2030   Common Stock    62,485   $  3.00   $  89   $  89
                                   
Petal Card, Inc.   Warrant   November 27, 2029   Preferred Series B    250,268   $ 1.32   $  147   $  371
                                   
Realty Mogul, Co   Warrant   December 18, 2027   Preferred Series B    234,421   $  3.88   $  285   $  140
                                   
Sub-Total: Finance and Insurance (0.3%)*                         $  521   $  600
                                   
Health Care and Social Assistance (2)                                  
Lark Technologies, Inc.   Warrant   September 30, 2030   Common Stock   76,231   $ 1.76   $  177   $  177
                                   
Sub-Total: Health Care and Social Assistance (0.1%)*                     $  177   $  177
                                   
Information (2)                                  
Convercent, Inc.   Warrant   November 30, 2025   Preferred Series 1    3,139,579   $  0.16   $  924   $  816
                                   
Figg, Inc. (20)   Warrant   March 31, 2028   Common Stock    935,198   $  0.07   $  —   $  —
                                   
Everalbum, Inc.   Warrant   July 29, 2026   Preferred Series A    851,063   $  0.10   $  24   $  6
                                   
Firefly Systems, Inc.   Warrant   January 29, 2030   Common Stock    133,147   $  1.14   $  282   $  236
                                   
Gtxcel, Inc.   Warrant   September 24, 2025   Preferred Series C    1,000,000   $  0.21   $  83   $  11
    Warrant   September 24, 2025   Preferred Series D    1,000,000   $  0.21      83      11
Total Gtxcel, Inc.                            166      22
                                   
Hytrust, Inc.   Warrant   June 23, 2026   Preferred Series D2    424,808   $  0.82   $  172   $  —
                                   
Lucidworks, Inc.   Warrant   June 27, 2026   Preferred Series D    619,435   $  0.77   $  806   $  752
                                   
Market6   Warrant   November 19, 2020   Preferred Series B    53,410   $  1.65   $  29   $  —
                                   
Oto Analytics, Inc.   Warrant   August 31, 2028   Preferred Series B    1,018,718   $  0.79   $  295   $  213
                                   
RapidMiner, Inc.   Warrant   March 25, 2029   Preferred Series C-1    11,624   $  60.22   $  528   $  342
                                   
STS Media, Inc.   Warrant   March 15, 2028   Preferred Series C    20,210   $  24.74   $  —   $  —
                                   
Sub-Total: Information (1.0%)*                         $  3,226   $  2,387

 

15

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

                                   
Portfolio Company (1)   Type of
 Investment (3)
  Expiration Date   Series   Shares   Strike Price   Cost   Fair Value (6)
Warrant Investments, Continued                                  
                                   
Manufacturing (2)                                  
Atieva, Inc.   Warrant   March 31, 2027   Preferred Series D    390,016   $  5.13   $  3,067   $  950
    Warrant   September 8, 2027   Preferred Series D    195,008   $  5.13      1,533      475
Total Atieva, Inc.                            4,600      1,425
                                   
AyDeeKay LLC   Warrant   March 30, 2028   Preferred Series G    6,250   $  35.42   $  23   $  22
                                   
Footprint International Holding, Inc.   Warrant   February 14, 2030   Common Stock    26,852   $  0.31   $  5   $  21
    Warrant   June 22, 2030   Common Stock    10,836   $  0.31      4      9
Total Footprint International Holding, Inc.                            9      30
                                   
Happiest Baby, Inc.   Warrant   May 16, 2029   Common Stock    182,554   $  0.33   $  194   $  127
                                   
Hexatech, Inc. (20)   Warrant   April 2, 2022   Preferred Series A    226   $  2.77   $  —   $  —
                                   
Lensvector, Inc.   Warrant   December 30, 2021   Preferred Series C    85,065   $  1.18   $  32   $  —
                                   
Molekule, Inc.   Warrant   June 19, 2030   Preferred Series C-1    32,051      3.12   $  16   $  19
                                   
SBG Labs, Inc.   Warrant   June 29, 2023   Preferred Series A-1    42,857   $  0.70   $  13   $  8
    Warrant   September 18, 2024   Preferred Series A-1    25,714   $  0.70      8      5
    Warrant   January 14, 2024   Preferred Series A-1    21,492   $  0.70      7      4
    Warrant   March 24, 2025   Preferred Series A-1    12,155   $  0.70      4      2
    Warrant   October 10, 2023   Preferred Series A-1    11,150   $  0.70      4      2
    Warrant   May 6, 2024   Preferred Series A-1    11,145   $  0.70      4      2
    Warrant   June 9, 2024   Preferred Series A-1    7,085   $  0.70      2      1
    Warrant   May 20, 2024   Preferred Series A-1    342,857   $  0.70      110      66
    Warrant   March 26, 2025   Preferred Series A-1    200,000   $  0.70      65      39
Total SBG Labs, Inc.                            217      129
                                   
Vertical Communications, Inc. (7) (20)   Warrant   July 11, 2026   Preferred Series A    828,479   $  1.00   $  —   $  —
                                   
Sub-Total: Manufacturing (0.74%)*                         $  5,091   $  1,752

 

16

 

 

TRINITY CAPITAL INC.

Consolidated Schedule of Investments

September 30, 2020

(In thousands, except share and per share data)

(Unaudited)

 

Portfolio Company (1)   Type of
 Investment (3)
  Expiration Date   Series   Shares   Strike Price   Cost   Fair Value (6)
Warrant Investments, Continued                                  
                                   
Pharmaceutical (2)                                  
Nanotherapeutics, Inc. (8)   Warrant   November 14, 2021   Common Stock    67,961   $  1.03   $  1,122   $  1,657
                                   
Zosano Pharma Corporation   Warrant   September 25, 2025   Common Stock    75,000   $  3.59   $  69   $  64
                                   
Sub-Total: Pharmaceutical (0.7%)*                         $  1,191   $  1,721
                                   
Professional, Scientific, and Technical Services (2)                                  
Augmedix, Inc.   Warrant   September 3, 2029   Preferred Series B    1,379,028   $  1.21   $  449   $  267
                                   
Continuity, Inc.   Warrant   March 29, 2026   Preferred Series C    1,588,806   $  0.25   $  21   $  32
                                   
Crowdtap, Inc.   Warrant   December 16, 2025   Preferred Series B    442,233   $  1.09   $  42   $  89
    Warrant   November 30, 2027   Preferred Series B    100,000   $  1.09      9      20
Total Crowdtap, Inc.                            51      109
                                   
Dynamics, Inc.   Warrant   March 10, 2024   Common Stock    17,000   $  10.59   $  86   $  —
                                   
E La Carte, Inc.   Warrant   July 28, 2027   Common Stock    497,183   $  0.30   $  186   $  78
    Warrant   July 28, 2027   Preferred Series A    104,284   $  7.49      15      17
    Warrant   July 28, 2027   Preferred Series AA-1    106,841   $  7.49      15      16
Total E La Carte, Inc.                            216      111
                                   
Edeniq, Inc.   Warrant   December 23, 2026   Preferred Series B    2,685,501   $  0.22   $  —   $  —
    Warrant   December 23, 2026   Preferred Series B    2,184,672   $  0.01      —      —
    Warrant   March 12, 2028   Preferred Series C    5,106,972   $  0.44      —      —
    Warrant   October 15, 2028   Preferred Series C    3,850,294   $ &