Company Quick10K Filing
Harvest Capital Credit
10-Q 2020-09-30 Filed 2020-11-05
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-13
10-K 2019-12-31 Filed 2020-03-12
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-14
10-K 2018-12-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-04-02
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-15
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-15
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-10
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-03-16
10-Q 2014-09-30 Filed 2014-11-13
10-Q 2014-06-30 Filed 2014-08-13
10-Q 2014-03-31 Filed 2014-05-14
10-K 2013-12-31 Filed 2014-03-31
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-08-13
10-Q 2013-03-31 Filed 2013-06-11
8-K 2021-01-22 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-12-23 Enter Agreement, Regulation FD, Exhibits
8-K 2020-11-24
8-K 2020-06-10
8-K 2020-05-20
8-K 2020-04-13
8-K 2019-06-11
8-K 2019-05-10
8-K 2019-03-18
8-K 2018-11-01
8-K 2018-06-12
8-K 2018-04-29
8-K 2018-02-08

HCAP 10Q Quarterly Report

Part I - Financial Information
Item 1. Consolidated Financial Statements
Note 1. Organization
Note 2. Summary of Significant Accounting Policies
Note 3. Borrowings
Note 4. Concentrations of Credit Risk
Note 5. Stockholders' Equity
Note 6. Fair Value Measurements
Note 7. Related Party Transactions
Note 8. Commitments and Contingencies
Note 9. Net Increase (Decrease) in Net Assets Resulting From Operations per Common Share
Note 10. Income Tax
Note 11. Financial Highlights
Note 12. Significant Subsidiary
Note 13. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.2 exhibit102eleventhamen.htm
EX-31.1 exhibit311september302.htm
EX-31.2 exhibit312september302.htm
EX-32.1 exhibit321september302.htm
EX-32.2 exhibit322september302.htm

Harvest Capital Credit Earnings 2020-09-30

Balance SheetIncome StatementCash Flow

10-Q 1 hcapseptember302020q3x.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

þQUARTERLY 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: 1-35906
HARVEST CAPITAL CREDIT CORPORATION
(Exact name of registrant as specified in its charter)  
Delaware
(State or other Jurisdiction of
Incorporation or Organization)
46-1396995
(I.R.S. Employer
Identification Number)
767 Third Avenue, 29th Floor
New York, NY 10017
(Address of principal executive offices) (Zip Code)
(212) 906-3589
(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value of $0.001 per shareHCAPNASDAQ Global Market
6.125% Notes due 2022HCAPZNASDAQ Global Market

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  þ   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 filerþ
Smaller reporting company    ¨
Emerging growth company¨
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 þ.

There were 5,958,479 shares of the registrant’s common stock outstanding as of November 5, 2020.




HARVEST CAPITAL CREDIT CORPORATION
 
 QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER
ENDED SEPTEMBER 30, 2020
 
TABLE OF CONTENTS
 
Page
 
 
i


PART I - FINANCIAL INFORMATION
Item 1.           Consolidated Financial Statements

Harvest Capital Credit Corporation 
Consolidated Statements of Assets and Liabilities
September 30, 2020December 31, 2019
(unaudited)
ASSETS:
Non-affiliated/non-control investments, at fair value (cost of $51,191,614 at 9/30/20 and $61,379,670 at 12/31/19) $46,162,570 $60,973,556 
Affiliated investments, at fair value (cost of $42,260,687 at 9/30/20 and $48,111,833 at 12/31/19) 41,006,699 47,431,234 
Control investments, at fair value (cost of $14,021,701 at 9/30/20 and $13,958,202 at 12/31/19)8,811,999 8,404,600 
Cash 8,406,656 11,199,083 
Restricted cash29,338,582 10,648,199 
Interest receivable 652,593 663,191 
Accounts receivable – other 478,499 184,804 
Deferred financing costs 262,742 425,379 
Other assets 204,695 129,690 
Total assets $135,325,035 $140,059,736 
LIABILITIES:
Revolving line of credit $45,000,000 $43,700,000 
2022 Notes (net of deferred offering costs and unamortized discount of $464,967 at 9/30/20 and $623,276 at 12/31/19)28,285,033 28,126,724 
Accrued interest payable 96,276 152,544 
Accounts payable - base management fees512,047 593,266
Accounts payable - administrative services expense350,000 350,000
Accounts payable and accrued expenses462,605 355,720
Total liabilities 74,705,961 73,278,254 
Commitments and Contingencies (Note 8)
NET ASSETS:
Common stock, $0.001 par value, 100,000,000 shares authorized, 6,600,444 issued and 5,958,479 outstanding at 9/30/20 and 6,587,819 issued and 5,945,854 outstanding at 12/31/19 6,601 6,588 
Capital in excess of common stock 90,962,284 90,876,759 
Treasury shares, at cost, 641,965 shares at each of 9/30/20 and 12/31/19(6,723,505)(6,723,505)
Accumulated overdistributed earnings(23,626,306)(17,378,360)
Total net assets 60,619,074 66,781,482 
Total liabilities and net assets $135,325,035 $140,059,736 
Common stock outstanding5,958,479 5,945,854 
Net asset value per common share $10.17 $11.23 

See accompanying notes to unaudited consolidated financial statements.
1



Harvest Capital Credit Corporation 
Consolidated Statements of Operations (Unaudited) 
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Investment Income:
Interest:
Cash - non-affiliated/non-control investments $967,288 $1,416,656 $3,598,978 $4,247,511 
Cash - affiliated investments 1,083,399 1,432,203 3,490,270 3,493,857 
PIK - non-affiliated/non-control investments 156,105 18,471 376,321 49,236 
PIK - affiliated investments136,526 187,334 436,381 569,447 
Amortization of fees and discounts:
  Non-affiliated/non-control investments54,822 121,156 248,464 548,217 
  Affiliated investments476,421 60,970 591,965 118,125 
Total interest income 2,874,561 3,236,790 8,742,379 9,026,393 
Other income152,526 45,508 162,317 288,454 
Total investment income 3,027,087 3,282,298 8,904,696 9,314,847 
Expenses:
Interest expense - revolving line of credit 351,436 224,712 1,012,455 327,493 
Interest expense - unused line of credit 25,551 74,586 115,052 268,470 
Interest expense - deferred financing costs 58,085 58,258 240,245 168,898 
Interest expense - 2022 Notes440,235 440,235 1,320,705 1,320,705 
Interest expense - deferred offering costs and discount53,693 50,076 158,311 147,646 
Total interest expense 929,000 847,867 2,846,768 2,233,212 
Professional fees151,246 198,360 608,570 1,016,240 
General and administrative229,934 235,277 709,622 726,849 
Base management fees 512,046 578,466 1,643,020 1,613,040 
Administrative services expense 350,000 350,000 1,050,000 1,050,000 
Total expenses2,172,226 2,209,970 6,857,980 6,639,341 
Net Investment Income854,861 1,072,328 2,046,716 2,675,506 
Net realized gains (losses):
Non-affiliated / Non-control investments— — (2,176,202)52,451 
Affiliated investments248,294 — 248,294 20,750 
Control investments(21,950)(92,615)(86,501)(103,505)
Net realized gains (losses)226,344 (92,615)(2,014,409)(30,304)
Net change in unrealized appreciation (depreciation) on investments:
  Non-affiliated / Non-control investments(858,707)(2,759,004)(4,622,927)(3,448,583)
  Affiliated investments(1,191,301)658,765 (573,390)665,351 
  Control investments586,000 77,364 343,900 (758,030)
Net change in unrealized depreciation on investments(1,464,008)(2,022,875)(4,852,417)(3,541,262)
Total net unrealized and realized losses on investments (1,237,664)(2,115,490)(6,866,826)(3,571,566)
Net decrease in net assets resulting from operations $(382,803)$(1,043,162)$(4,820,110)$(896,060)
Net investment income per share$0.14 $0.18 $0.34 $0.43 
Net decrease in net assets resulting from operations per share$(0.06)$(0.17)$(0.81)$(0.15)
Weighted average shares outstanding, basic and diluted5,958,479 6,053,807 5,955,513 6,171,616 

 See accompanying notes to unaudited consolidated financial statements.
2


 Harvest Capital Credit Corporation 
Consolidated Statements of Changes in Net Assets (Unaudited)
Common Stock
Three Months Ended September 30, 2020SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of June 30, 20205,958,479$6,601 $90,962,284 $(6,723,505)$(23,243,503)$61,001,877 
Net decrease in net assets resulting from operations:
Net investment income — — — — 854,861 854,861 
Net realized gains— — — — 226,344 226,344 
Net change in unrealized depreciation on investments— — — — (1,464,008)(1,464,008)
Total decrease for the three months ended September 30, 2020— — — — (382,803)(382,803)
Balance as of September 30, 20205,958,479$6,601 $90,962,284 $(6,723,505)$(23,626,306)$60,619,074 

Common Stock
Three Months Ended September 30, 2019SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of June 30, 20196,126,724$6,570 $92,426,143 $(4,702,931)$(14,861,022)$72,868,760 
Net increase in net assets resulting from operations:
Net investment income — — — — 1,072,328 1,072,328 
Net realized losses— — — — (92,615)(92,615)
Net change in unrealized depreciation on investments— — — — (2,022,875)(2,022,875)
Distributions to stockholders (1):
Distributions— — — — (1,452,013)(1,452,013)
Capital share transactions
Reinvestment of dividends8,514 81,363 — — 81,371 
Share repurchases(159,561)— — (1,626,331)— (1,626,331)
Total increase (decrease) for the three months ended September 30, 2019(151,047)81,363 (1,626,331)(2,495,175)(4,040,135)
Balance as of September 30, 20195,975,677$6,578 $92,507,506 $(6,329,262)$(17,356,197)$68,828,625 


3


Common Stock
Nine Months Ended September 30, 2020SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of December 31, 20195,945,854$6,588 $90,876,759 $(6,723,505)$(17,378,360)$66,781,482 
Net decrease in net assets resulting from operations:
Net investment income — — — — 2,046,716 2,046,716 
Net realized losses— — — — (2,014,409)(2,014,409)
Net change in unrealized depreciation on investments— — — — (4,852,417)(4,852,417)
Distributions to shareholders (1):
Distributions— — — — (1,427,836)(1,427,836)
Capital share transactions
Reinvestment of dividends12,625 13 85,525 — — 85,538 
Total increase (decrease) for the nine months ended September 30, 202012,625 13 85,525 — (6,247,946)(6,162,408)
Balance as of September 30, 20205,958,479$6,601 $90,962,284 $(6,723,505)$(23,626,306)$60,619,074 



Common Stock
Nine Months Ended September 30, 2019SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of December 31, 20186,372,581$6,554 $92,270,273 $(1,956,055)$(11,924,808)$78,395,964 
Net increase in net assets resulting from operations:
Net investment income — — — — 2,675,506 2,675,506 
Net realized losses— — — — (30,304)(30,304)
Net change in unrealized depreciation on investments— — — — (3,541,262)(3,541,262)
Distributions to shareholders (1):
Distributions— — — — (4,535,329)(4,535,329)
Capital share transactions
Reinvestment of dividends24,165 24 237,233 — — 237,257 
Share repurchases(421,069)— — (4,373,207)— (4,373,207)
Total increase (decrease) for the nine months ended September 30, 2019(396,904)24 237,233 (4,373,207)(5,431,389)(9,567,339)
Balance as of September 30, 20195,975,677$6,578 $92,507,506 $(6,329,262)$(17,356,197)$68,828,625 

(1)The Company did not make any distributions during the three months ended September 30, 2020. Distributions exceeded net investment income for the three months ended September 30, 2019 by an amount of $379,685. Net investment income exceeded distributions for the nine months ended September 30, 2020 by $618,880 and distributions exceeded net investment income for the nine months ended September 30, 2019 by $1,859,823. See "Dividends and Distributions" in Note 2.
 

See accompanying notes to unaudited consolidated financial statements.

4



Harvest Capital Credit Corporation
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
20202019
Cash flows from operating activities:
Net decrease in net assets resulting from operations $(4,820,110)$(896,060)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
Payment-in-kind income (812,702)(618,683)
Payment-in-kind income collected140,920 124,184 
Net realized losses on investments 2,014,409 30,304 
Net change in unrealized depreciation of investments 4,852,417 3,541,262 
Amortization of fees and discounts on investments(840,429)(666,342)
Amortization of deferred financing costs 240,245 168,898 
Amortization of deferred offering costs and discount 158,311 147,646 
Proceeds from sales of investments1,728,081 6,078,795 
Purchase of investments (net of loan origination and other fees) (2,463,420)(50,952,846)
Proceeds from principal payments 15,995,741 21,668,998 
Changes in operating assets and liabilities:
(Increase) decrease in interest receivable 10,598 (33,408)
(Increase) decrease in accounts receivable - other and other assets (155,589)67,373 
Increase (decrease) in accrued interest payable (56,268)16,576 
Increase (decrease) in accounts payable and other liabilities 21,698 (295,946)
Net cash provided by (used in) operating activities 16,013,902 (21,619,249)
Cash flows from financing activities:
Borrowings on revolving credit facility92,713,837 76,300,000 
Repayment of borrowings on revolving credit facility (91,413,837)(57,000,000)
Financing costs(73,642)(23,210)
Repurchased shares (held in Treasury Stock)— (4,373,207)
Distributions to stockholders (net of stock issued under dividend reinvestment plan of $85,538 and $237,257, respectively)(1,342,304)(4,298,072)
Net cash provided by (used in) provided by financing activities (115,946)10,605,511 
Net increase (decrease) in cash during the period15,897,956 (11,013,738)
Cash at beginning of period 21,847,282 28,775,548 
Cash at end of period (1)$37,745,238 $17,761,810 
Non-cash operating activities:
Fair value of warrants received from Kleen-Tech Acquisition, LLC$— $186,970 
Fair value of warrants received from Surge Hippodrome Holdings LLC$— $237,579 
Conversion of Northeast Metal Works, LLC Revolving Credit Facility to Junior Secured Term Loan$— $446,494 
Conversion of Coastal Screen & Rail, LLC Revolving Credit Facility to Senior Secured Term Loan$— $950,000 
Conversion of General Nutrition Centers, Inc. Senior Secured Term Loan to Senior Secured Roll-up Term Loan$964,812 $— 
5


Nine Months Ended September 30,
20202019
Non-cash financing activities:
Value of shares issued in connection with dividend reinvestment plan $85,538 $237,257 
Supplemental disclosures of cash flow information:
Cash paid during the period for interest$2,504,479 $1,900,092 
Cash paid during the period for taxes$45,061 $46,591 

(1) Consists of cash and restricted cash of $8,406,656 and $29,338,582, respectively, at September 30, 2020, and $16,344,322 and $1,417,488, respectively, at September 30, 2019.

See accompanying notes to unaudited consolidated financial statements.
6


Harvest Capital Credit Corporation
Consolidated Schedule of Investments (Unaudited)
As of September 30, 2020
Portfolio CompanyDate**IndustryInvestment (1) (2) (10) (11) (12) Principal Cost Fair Value
Non-Control / Non-Affiliate Investments
Back Porch International, Inc. (11.4%)*09/2019High Tech IndustriesSenior Secured Term Loan, due 03/2024 (13.50%; 1M LIBOR + 10.25% with a 2.25% LIBOR floor + 1.00% PIK)(4)$6,895,770 $6,797,583 $6,895,770 
6,895,770 6,797,583 6,895,770 
Brite Media LLC (0.2%)*04/2014Media: Advertising, Printing & PublishingClass A Interest (0.86% fully diluted common equity)125,000 142,767 
125,000 142,767 
Coastal Screen and Rail, LLC (12.7%)*01/2018Construction & BuildingSenior Secured Term Loan, due 01/2023 (14.00%; 10.50% Cash + 3.50% PIK)(4)7,370,206 7,286,568 7,286,468 
Senior Secured Revolving Line of Credit, due 07/2022 (8.23%; 3M LIBOR + 8.00%)(3)100,000 100,000 100,000 
Preferred Equity Class B Interest 10.34% / (3.90% fully diluted common equity)(5)150,000 282,000 
7,470,206 7,536,568 7,668,468 
Deluxe Entertainment Services Group Inc.(1.7%)*01/2019Media: Diversified & ProductionJunior Secured Term Loan, due 9/2024 (9.50%, LIBOR + 6.00% with a 1.00% LIBOR floor + 2.50% PIK)522,923 522,923 522,923 
Common Equity (0.63% fully diluted common equity)2,056,418 487,679 
522,923 2,579,341 1,010,602 
General Nutrition Centers, Inc. (7.6%)*02/2019Beverage, Food, & TobaccoSenior Secured Term Loan, due 08/2020 (11.00%; LIBOR + 8.75% with a 0.75% LIBOR floor; ABR + 7.75%)(9) (13)2,998,961 2,910,829 2,685,000 
DIP New Money Term Loan, due upon restructuring (15.25%; Prime + 13.25%)(9) (13)964,812 941,502 964,812 
DIP Roll-up Term Loan, due upon restructuring (13.50%; Prime + 10.25%)(9) (13)964,812 901,081 964,812 
4,928,585 4,753,412 4,614,624 
GK Holdings, Inc. (2.4%)*01/2015High Tech IndustriesJunior Secured Term Loan, due 01/2022 (13.25%; 3M LIBOR + 10.25% + 2.00% default interest with a 1.00% LIBOR floor)(4) (9)3,000,000 2,972,406 1,450,000 
3,000,000 2,972,406 1,450,000 
KC Engineering & Construction Services, LLC (4.8%)*10/2017Environmental IndustriesClass A Membership Interest (2.5% fully diluted common equity)(5)906,761 2,905,978 
906,761 2,905,978 
Peerless Media, LLC (6.0%)*02/2019Media: Advertising, Printing & PublishingSenior Secured Term Loan, due 02/2024 (11.40%; 1M LIBOR + 8.50% with a 2.40% LIBOR floor + 0.50% PIK)3,639,914 3,612,977 3,639,914 
3,639,914 3,612,977 3,639,914 
ProAir Holdings Corporation (6.6%)*09/2017Capital EquipmentJunior Secured Term Loan, due 12/2022 (17.50%; 13.50% + 4.0% PIK default interest)(4) (9)7,644,474 7,424,544 4,019,000 
7,644,474 7,424,544 4,019,000 
Safety Services Acquisition Corp. (7.3%)*03/2017Services: BusinessSenior Secured Term Loan, due 08/2021 (13.75%; 3M LIBOR + 8.75% with a 1.00% LIBOR floor + 4.0% PIK)(4)4,420,208 4,418,045 4,340,579 
04/2012Series A Preferred Stock (0.57% fully diluted common equity)100,000 63,148 
4,420,208 4,518,045 4,403,727 
Surge Busy Bee Holdings, LLC (11.5%)*11/2017Services: BusinessSenior Secured Term Loan, due 11/2022 (11.15%; 1M LIBOR + 11.00%)(4)3,800,000 3,703,801 3,732,000 
7


Portfolio CompanyDate**IndustryInvestment (1) (2) (10) (11) (12) Principal Cost Fair Value
Senior Secured Term Loan, due 11/2022 (15.00%; 13.00% cash + 2.00% PIK)(4)3,591,483 3,516,203 3,261,880 
Senior Secured Revolving Line of Credit, due 11/2021 (1M LIBOR + 8.00%)(3)— — — 
Class B Equity Warrants (4.75% fully diluted common equity)76,475 2,106 
7,391,483 7,296,479 6,995,986 
Water-Land Manufacturing & Supply, LLC (4.0%)*08/2018Consumer Goods - DurableJunior Secured Term Loan, due 05/2023 (12.75%; 3M LIBOR + 10.50% with a 2.25% LIBOR floor)2,500,000 2,468,498 2,415,734 
2,500,000 2,468,498 2,415,734 
World Business Lenders, LLC (-%)*12/2013Banking, Finance, Insurance & Real EstateClass B Equity Interest (0.28% fully diluted common equity)(7)200,000 — 
200,000 — 
Subtotal Non-Control / Non-Affiliate Investments$48,413,563 $51,191,614 $46,162,570 
Affiliate Investments
Flight Lease XII, LLC (0.3%)*03/2017Aerospace & DefenseCommon Equity Interest (19.23% fully diluted common equity)(5)197,933 197,933 
197,933 197,933 
Kleen-Tech Acquisition, LLC (0.4%)*05/2019Services: BusinessCommon Equity Units (7.35% fully diluted common equity)(5)250,000 266,092 
250,000 266,092 
National Program Management & Project Controls, LLC (21.2%)*06/2018Construction & BuildingSenior Secured Term Loan, due 06/2023 (9.75%; 1M LIBOR + 8.25% with a 1.50% LIBOR floor)5,462,388 5,398,434 5,451,888 
05/2020Delayed Draw Term Loan, due 06/2023 (9.75%; 1M LIBOR + 8.25% with a 1.50% LIBOR floor)(3)63,595 63,312 63,473 
Class A Membership Interest (5.10% fully diluted common equity)(5)2,791,241 7,337,701 
5,525,983 8,252,987 12,853,062 
Northeast Metal
Works, LLC (17.5%)*
09/2014Metals & MiningSenior Secured Term Loan, due 06/2020 (10.00%; 7.00% Cash + 3.00% PIK)13,515,098 13,513,370 10,553,135 
05/2017Preferred Equity Interest (22.79% fully diluted common equity; 12.0% cumulative preferred return)(5)1,515,520 — 
13,515,098 15,028,890 10,553,135 
Slappey Communications, LLC (13.4%)*05/2019TelecommunicationsSenior Secured Term Loan, due 05/2024 (13.00%; 3M LIBOR + 10.00% with a 2.50% LIBOR floor + 0.50% PIK)7,781,908 7,657,050 7,781,908 
Senior Secured Revolving Line of Credit, due 05/2023 (3M LIBOR + 10.00% with a 2.50% LIBOR floor)(3)— — — 
Common Equity Units (12.90% preferred equity / 7.59% fully diluted common equity)(5)200,000 357,000 
7,781,908 7,857,050 8,138,908 
Surge Hippodrome Holdings LLC (8.1%)*08/2019Services: BusinessSenior Secured Term Loan (Last Out), due 08/2024 (13.50%; 3M LIBOR + 11.50% with a 2.00% LIBOR floor) 5,460,000 5,170,452 4,804,158 
Common Equity Interest (10.08% fully diluted common equity)(5)360,000 72,525 
Common Equity Warrants (9.50% fully diluted common equity)(5)237,579 52,886 
5,460,000 5,768,031 4,929,569 
8


Portfolio CompanyDate**IndustryInvestment (1) (2) (10) (11) (12) Principal Cost Fair Value
V-Tek, Inc. (6.7%) *03/2017Capital EquipmentSenior Secured Term Loan, due 03/2022 (6.00%)3,237,500 3,219,699 2,610,000 
Senior Secured Revolving Line of Credit, due 03/2021 (6.75%; 3M LIBOR + 6.50%)(3)1,536,097 1,536,097 1,458,000 
Common Stock (8.98% fully diluted common equity)(5)150,000 — 
4,773,597 4,905,796 4,068,000 
Subtotal Affiliate Investments$37,056,586 $42,260,687 $41,006,699 
Control Investments
Flight Lease VII, LLC (0.5%) *03/2016Aerospace & DefenseCommon Equity Interest (46.14% fully diluted common equity)(8)$325,999 $325,999 
325,999 325,999 
Infinite Care, LLC (14.0%) *02/2016Healthcare & PharmaceuticalsSenior Secured Term Loan, due 01/2021 (3.00%)(6) (9)4,740,284 3,377,702 4,031,000 
Senior Secured Revolving Line of Credit, due 01/2021 (3.00%)(6) (9)4,506,271 4,369,000 4,455,000 
Membership Interest (100% membership interests)(5) (6)5,949,000 — 
9,246,555 13,695,702 8,486,000 
Subtotal Control Investments$9,246,555 $14,021,701 $8,811,999 
Total Investments at 9/30/20 (158.3%) *$94,716,704 $107,474,002 $95,981,268 

* Fair value as a percentage of net assets
** Date refers to the origination date of the investment

(1)Debt investments are income-producing investments unless an investment is on non-accrual. Common equity, preferred equity, residual values and warrants are non-income-producing.
(2)For each loan, the Company has provided the interest rate in effect on the date presented, as well as the contractual components of that interest rate. In the case of the Company's variable or floating rate loans, the interest rate in effect takes into account the applicable LIBOR in effect on September 30, 2020 or, if higher, the applicable LIBOR floor.
(3)Line of credit has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 in the accompanying Notes to the Consolidated Financial Statements for further discussion on unfunded commitments.
(4)The cash coupon and/or PIK coupon on the loan is subject to a pricing grid based on certain leverage ratios of the portfolio company.
(5)This investment is owned by HCAP Equity Holdings, LLC, one of the Company's taxable blocker subsidiaries.
(6)Infinite Care LLC ("ICC") is in default under the terms of its credit agreement and was on non-accrual status as of September 30, 2020. ICC was current on its interest payments to the Company through December 31, 2017; however, it failed to repay the Company’s protective loan advances at various dates in the fourth quarter of 2017 as well as throughout 2018, 2019, and through September 30, 2020.  ICC was previously in breach of its minimum EBITDA, minimum fixed charge and total leverage covenants, but these breaches were waived by the Company through December 31, 2017 in connection with its entry into an agreement, dated as of January 13, 2017, with ICC relating thereto.  In October 2017, the Company exercised its rights under a stock pledge of ICC. The Company formed a wholly owned subsidiary, HCAP ICC, LLC, to exercise its proxy right under the pledge agreement and take control of ICC’s board of directors. In January 2018, the Company took control of ICC's equity after accelerating the debt and auctioning ICC’s equity in a public sale.  The Company bid a portion of its outstanding debt to gain control of ICC in connection with the public sale process. Upon the completion of the sale process in January 2018, the Company converted $2.0 million of its debt investment in ICC into shares of ICC’s membership interests.

Refer to Note 12 in the accompanying Notes to the Consolidated Financial Statements for summarized financial information for ICC for the three and nine months ended September 30, 2020 and September 30, 2019.
(7)Investment is not a qualifying asset as defined under Section 55(a) of the Investment Company Act of1940, as amended (the "1940 Act"). Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets The Company's non-qualifying assets, on a fair value basis, totaled approximately 1.2% of the Company's total assets as of September 30, 2020.
(8)This is an equity investment that receives a cash flow stream based on lease payments received by Flight Lease VII, LLC. Flight Lease VII, LLC owns an aircraft that was leased to one lessee. The lessee had been in arrears on its lease payments and in June of 2018, Flight Lease VII, LLC terminated the lease. As a result of the cessation of cash flows, future payments on this equity investment will resume only if Flight Lease VII, LLC is successful in obtaining a new lessee or sells the aircraft.
(9)This debt investment is on non-accrual status as of September 30, 2020.
(10)The Company's Credit Facility is secured by all of the Company's assets. Refer to Note 3 in the accompanying Notes to the Consolidated Financial Statements for more information.
9


(11)All of the Company's portfolio investments are generally subject to restrictions on sale as "restricted securities", unless otherwise noted.
(12)Unless otherwise indicated, all portfolio company investments are Level 3 assets whose values were determined using significant unobservable inputs.
(13)In October 2020, General Nutrition, Inc. ("GNC") was restructured upon its sale. The Company received approximately $1.9 million representing a full payoff at par of each of its New Money DIP Term Loan and its Roll-up DIP Term Loan. The Company also received an additional $1.2 million, representing a discounted payoff of its $3.0 million original tranche B-2 Term Loan and received its pro rata share of a new Second Lien Term Loan with a par value of $1.8 million in the restructured GNC.

As of September 30, 2020, investments consisted of the following:

TypeAmortized CostFair Value% of Fair Value% of Net Assets
Senior Secured Debt$78,493,705 $75,079,797 78.3 %123.8 %
Junior Secured Debt13,388,371 8,407,657 8.7 %13.9 %
Equity15,591,926 12,493,814 13.0 %20.6 %
Total$107,474,002 $95,981,268 100.0 %158.3 %

The rate types of debt investments at fair value as of September 30, 2020 were as follows:

Rate TypeAmortized CostFair Value% of Fair Value% of Net Assets
Fixed Rate$42,707,086 $36,216,483 43.4 %59.7 %
Floating Rate49,174,990 47,270,971 56.6 %78.0 %
Total$91,882,076 $83,487,454 100.0 %137.7 %

The industry composition of investments at fair value as of September 30, 2020 was as follows:

IndustryAmortized CostFair Value% of Fair Value% of Net Assets
Aerospace & Defense$523,932 $523,932 0.6 %0.8 %
Banking, Finance, Insurance & Real Estate200,000 — — %— %
Beverage, Food & Tobacco4,753,412 4,614,624 4.8 %7.6 %
Capital Equipment12,330,341 8,087,000 8.4 %13.3 %
Construction & Building15,789,555 20,521,530 21.4 %33.9 %
Consumer Goods - Durable2,468,498 2,415,734 2.5 %4.0 %
Environmental Industries906,761 2,905,978 3.0 %4.8 %
Healthcare & Pharmaceuticals13,695,702 8,486,000 8.8 %14.0 %
High Tech Industries9,769,989 8,345,770 8.7 %13.8 %
Media: Advertising, Printing & Publishing3,737,977 3,782,681 3.9 %6.2 %
Media: Diversified & Production2,579,341 1,010,602 1.1 %1.7 %
Metals & Mining15,028,890 10,553,135 11.0 %17.4 %
Services: Business17,832,554 16,595,374 17.3 %27.4 %
Telecommunications7,857,050 8,138,908 8.5 %13.4 %
Total$107,474,002 $95,981,268 100.0 %158.3 %

The geographic concentrations at fair value as of September 30, 2020 were as follows:

10


United States RegionAmortized CostFair Value% of Fair Value% of Net Assets
West$41,124,454 $38,126,020 39.7 %62.9 %
Northeast36,659,788 30,733,228 32.0 %50.7 %
South22,265,216 23,103,020 24.1 %38.1 %
Midwest7,424,544 4,019,000 4.2 %6.6 %
$107,474,002 $95,981,268 100.0 %158.3 %

See accompanying notes to unaudited consolidated financial statements.

11


Harvest Capital Credit Corporation
Consolidated Schedule of Investments
As of December 31, 2019
Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14) Principal Cost Fair Value
Non-Control / Non-Affiliate Investments
Back Porch International, Inc. (10.3%)*09/2019High Tech IndustriesSenior Secured Term Loan, due 03/2024 (13.50%; 1M LIBOR + 10.25% + 1.00% PIK)$6,974,139 $6,850,952 $6,850,952 
Senior Secured Revolving Line of Credit, due 09/2020 (1M LIBOR + 8.00%)(4)— — — 
6,974,139 6,850,952 6,850,952 
Brite Media LLC (0.3%)*04/2014Media: Advertising, Printing & PublishingClass A Interest (0.86% fully diluted common equity)125,000 183,800 
125,000 183,800 
Coastal Screen and Rail, LLC (11.4%)*01/2018Construction & BuildingSenior Secured Term Loan, due 01/2023 (14.00%; 10.50% Cash plus 3.50% PIK)7,225,434 7,116,020 7,143,830 
Senior Secured Revolving Line of Credit, due 07/2022 (9.95%; 3M LIBOR + 8.00%)(4)100,000 100,000 100,000 
Preferred Equity Interest (3.90% fully diluted common equity)(6)150,000 367,000 
7,325,434 7,366,020 7,610,830 
CP Holding Co., Inc.
(Choice Pet) (3.3%)*
05/2013RetailerJunior Secured Term Loan, due 06/2020 (12.00%; 7.00% current and 5.00% deferred)(10)2,899,852 3,098,300 2,233,000 
2,899,852 3,098,300 2,233,000 
Deluxe Entertainment Services Group Inc. (2.9%)*01/2019Media: Diversified & ProductionJunior Secured Term Loan, due 09/2024 (10.44%; LIBOR + 6.00% plus 2.50% PIK)(15)513,098 513,098 513,098 
Common Equity (0.63% fully diluted common equity)(15)2,056,418 1,440,739 
513,098 2,569,516 1,953,837 
Flavors Holdings, Inc. (5.7%)*10/2014Beverage, Food & TobaccoJunior Secured Term Loan, due 10/2021 (11.94%; 3M LIBOR +10.00% with a 1.00% LIBOR floor)4,000,000 3,946,828 3,775,000 
4,000,000 3,946,828 3,775,000 
General Nutrition Centers, Inc. (6.2%)*02/2019Beverage, Food, & TobaccoSenior Secured Term Loan, due 03/2021 (10.58%; LIBOR + 8.75%; ABR + 7.75%)4,326,812 4,216,840 4,137,514 
4,326,812 4,216,840 4,137,514 
GK Holdings, Inc. (3.4%)*01/2015High Tech IndustriesJunior Secured Term Loan, due 01/2022 (12.19%; 3M LIBOR +10.25% with a 1.00% LIBOR floor)(5)3,000,000 2,968,933 2,246,250 
3,000,000 2,968,933 2,246,250 
KC Engineering & Construction Services, LLC (3.6%)*10/2017Environmental IndustriesClass A Membership Interest (3.0% fully diluted common equity)(6)675,030 2,373,686 
675,030 2,373,686 
Peerless Media, LLC (6.8%)*02/2019Media: Advertising, Printing & PublishingSenior Secured Term Loan, due 02/2024 (11.40%; 1M LIBOR + 8.50% with a 2.40% LIBOR floor plus 0.50% PIK)4,552,922 4,517,569 4,552,922 
4,552,922 4,517,569 4,552,922 
ProAir Holdings Corporation (11.2%)*09/2017Capital EquipmentJunior Secured Term Loan, due 12/2022 (13.50%)7,500,000 7,424,544 7,500,000 
7,500,000 7,424,544 7,500,000 
12


Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14) Principal Cost Fair Value
Regional Engine
Leasing, LLC (3.5%)*
03/2015Aerospace & DefenseSenior Secured Term Loan, due 03/2020 (11.00%; the greater of 11.00% or LIBOR + 4.50%)2,352,247 2,346,042 2,352,247 
Residual Value(3)102,421 — 
2,352,247 2,448,463 2,352,247 
Safety Services Acquisition Corp. (7.0%)*03/2017Services: BusinessSenior Secured Term Loan, due 12/2020 (10.00%; 3M LIBOR + 8.00% with a 1.00% floor)(5)4,468,750 4,463,773 4,468,750 
04/2012Series A Preferred Equity (0.57% fully diluted common equity)100,000 185,768 
4,468,750 4,563,773 4,654,518 
Surge Busy Bee Holdings, LLC (12.1%)*11/2017Services: BusinessSenior Secured Term Loan, due 11/2022 (12.80%; 1M LIBOR + 11.00%)4,081,250 3,953,009 3,940,500 
Senior Secured Term Loan, due 11/2022 (15.00%; 13.00% cash plus 2.00% PIK)3,774,563 3,690,463 3,611,000 
Senior Secured Revolving Line of Credit, due 11/2021 (9.80%; 1M LIBOR+8.00%)(4)150,000 150,000 150,000 
Class B Equity Warrants (9.50% fully diluted common equity)152,950 357,500 
8,005,813 7,946,422 8,059,000 
Water-Land Manufacturing & Supply, LLC (3.7%)*08/2018Consumer Goods - DurableJunior Secured Term Loan, due 05/2023 (12.75%; 3M LIBOR + 10.50% with a 2.25% LIBOR floor)2,500,000 2,461,480 2,490,000 
2,500,000 2,461,480 2,490,000 
World Business Lenders, LLC (-%)*12/2013Banking, Finance, Insurance & Real EstateClass B Equity Interest (0.28% fully diluted common equity)(8)200,000 — 
200,000 — 
Subtotal Non-Control / Non-Affiliate Investments$58,419,067 $61,379,670 $60,973,556 
Affiliate Investments
Flight Lease XII, LLC (0.5%)*03/2017Aerospace & DefenseCommon Equity Interest (19.23% fully diluted common equity)(6)389,757 345,980 
— 389,757 345,980 
Kleen-Tech Acquisition, LLC (11.0%)*05/2019Services: BusinessSenior Secured Term Loan, due 05/2024 (15.00%; 13.00% Cash plus 2.00% PIK)7,131,721 6,850,998 6,819,708 
Senior Secured Revolving line of Credit, due 05/2022 (15.00%; 13.00% Cash plus 2.00% PIK)(4)— — — 
Common Equity Units (7.96% fully diluted common equity)(6)250,000 274,136 
Common Equity Warrants (8.50% fully diluted common equity)(6)186,970 275,104 
7,131,721 7,287,968 7,368,948 
National Program Management & Project Controls, LLC (15.5%)*06/2018Construction & BuildingSenior Secured Term Loan, due 06/2023 (10.05%; 1M LIBOR + 8.25%)(4)5,566,764 5,487,512 5,566,763 
Class A Membership Interest (5.10% fully diluted common equity)(6)2,791,241 4,799,331 
5,566,764 8,278,753 10,366,094 
Northeast Metal
Works, LLC (17.3%)*
09/2014Metals & MiningSenior Secured Term Loan, due 06/2020 (15.00%; 11.00% Cash plus 4.00% PIK)(11)13,121,048 13,115,448 11,596,969 
05/2017Preferred Equity Interest (22.79% fully diluted common equity; 12.0% cumulative preferred return)(6) (11)1,515,520 — 
13,121,048 14,630,968 11,596,969 
Slappey Communications, LLC (10.6%)*05/2019TelecommunicationsSenior Secured Term Loan, due 05/2024 (13.00%; 3M LIBOR + 10.00% with a 2.50% LIBOR floor plus 0.50% PIK)6,845,352 6,718,056 6,828,238 
13


Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14) Principal Cost Fair Value
Senior Secured Revolving Line of Credit, due 05/2023 (3M LIBOR + 10.00% with a 2.50% LIBOR floor plus 0.50% PIK)(4)— — — 
Common Equity Units (12.90% preferred equity / 7.59% fully diluted common equity)(6)200,000 227,035 
6,845,352 6,918,056 7,055,273 
Surge Hippodrome Holdings, LLC (8.6%)*08/2019Services: BusinessSenior Secured Term Loan (Last Out), due 08/2024 (13.50%; 3M LIBOR + 11.50%)5,460,000 5,131,294 5,131,294 
Common Equity Interest (10.10% fully diluted common equity)(6)360,000 360,000 
Common Equity Interest (9.50% fully diluted common equity)(6)237,579 237,579 
5,460,000 5,728,873 5,728,873 
V-Tek, Inc. (7.4%)*03/2017Capital EquipmentSenior Secured Term Loan, due 03/2022 (13.00%; 3M LIBOR + 11.00%)3,237,500 3,191,361 3,175,500 
Senior Secured Revolving Line of Credit, due 03/2021 (8.50%; 3M LIBOR + 6.50%)(4)1,536,097 1,536,097 1,536,097 
Common Stock (8.98% fully diluted common equity)(6)150,000 257,500 
4,773,597 4,877,458 4,969,097 
Subtotal Affiliate Investments$42,898,482 $48,111,833 $47,431,234 
Control Investments
Flight Lease VII, LLC (0.6%)*03/2016Aerospace & DefenseCommon Equity Interest (46.14% fully diluted interest)(9)$412,500 $412,500 
— 412,500 412,500 
Infinite Care, LLC (12.0%)*02/2016Healthcare & PharmaceuticalsSenior Secured Term Loan, due 01/2021 (3.0%)(7)4,740,284 3,377,702 3,783,600 
Senior Secured Revolving Line of Credit, due 01/2021 (3.0%)(7)4,356,271 4,219,000 4,208,500 
Membership Interest (100% membership interests)(6) (7)5,949,000 — 
9,096,555 13,545,702 7,992,100 
Subtotal Control Investments$9,096,555 $13,958,202 $8,404,600 
Total Investments at 12/31/19 (174.9%) *$110,414,104 $123,449,705 $116,809,390 
* Fair value as a percentage of net assets
** Date refers to the origination date of the investment

(1)Debt investments are income-producing investments unless an investment is on non-accrual. Common equity, preferred equity, residual values and warrants are non-income-producing.
(2)For each loan, the Company has provided the interest rate in effect on the date presented, as well as the contractual components of that interest rate. In the case of the Company's variable or floating rate loans, the interest rate in effect takes into account the applicable LIBOR in effect on December 31, 2019 or, if higher, the applicable LIBOR floor.
(3)"Residual value" represents the value of the Company's share in the collateral securing the loan.
(4)Line of credit has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 in the Notes to the audited Consolidated Financial Statements included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2019 for further discussion on unfunded commitments.
(5)The coupon on the loan is subject to a pricing grid based on certain leverage ratios of the portfolio company.
(6)This investment is owned by HCAP Equity Holdings, LLC, one of the Company's taxable blocker subsidiaries.
14


(7)ICC is in default under the terms of its credit agreement and was on non-accrual status as of December 31, 2019. ICC was current on its interest payments to the Company through December 31, 2017; however, it failed to repay the Company’s protective loan advances at various dates in the fourth quarter of 2017 as well as throughout 2018 and 2019.  ICC was previously in breach of its minimum EBITDA, minimum fixed charge and total leverage covenants, but these breaches were waived by the Company through December 31, 2017 in connection with its entry into an agreement, dated as of January 13, 2017, with ICC relating thereto.  In October 2017, the Company exercised its rights under a stock pledge of ICC. The Company formed a wholly owned subsidiary, HCAP ICC, LLC, to exercise its proxy right under the pledge agreement and take control of ICC’s board of directors. In January 2018, the Company took control of ICC's equity after accelerating the debt and auctioning ICC’s equity in a public sale.  The Company bid a portion of its outstanding debt to gain control of ICC in connection with the public sale process. Upon the completion of the sale process in January 2018, the Company converted $2.0 million of its debt investment in ICC into shares of ICC’s membership interests.

Refer to Note 13 in the Notes to the audited Consolidated Financial Statements included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2019 for summarized balance sheets for ICC as of December 31, 2019 and December 31, 2018 and summarized income statements for the years ending December 31, 2019, December 31, 2018, and December 31, 2017.
(8)Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets The Company's non-qualifying assets, on a fair value basis, totaled approximately 1.0% of the Company's total assets as of December 31, 2019.
(9)This is an equity investment that receives a cash flow stream based on lease payments received by Flight Lease VII, LLC. Flight Lease VII, LLC owns an aircraft that was leased to one lessee. The lessee had been in arrears on its lease payments and in June of 2018, Flight Lease VII, LLC terminated the lease. As a result of the cessation of cash flows, future payments on this equity investment will resume only if Flight Lease VII, LLC is successful in obtaining a new lessee or sells the aircraft. For the year ended December 31, 2019, the Company recognized an impairment charge of $0.3 million, which is presented in the net realized gains (losses) - control investments balance on the Consolidated Statement of Operations.
(10)This portfolio company failed to make its contractual deferred interest payment on July 23, 2018, partially paid its December 31, 2018 contractual current interest payment and failed to make any contractual interest payments throughout 2019. As such, this loan is on non-accrual status as of December 31, 2019. In addition, the Company's management determined that the contractual interest payments, including the deferred interest, were no longer collectible and, as a result, reversed the interest payment that had previously been viewed as collectible under the circumstances and had been accrued during the year ended December 31, 2019.
(11)On May 22, 2019, Northeast Metal Works, LLC ("Northeast Metal Works") entered into a new financing agreement with a senior lender. In conjunction with this, Northeast Metal Works and the Company entered into a subordination and inter-creditor agreement where the Company thereby agreed to subordinate its indebtedness to the senior lender through the earlier of the due date of the new financing agreement, which expires on May 31, 2020, or the date on which Northeast Metal Works has fully satisfied the indebtedness to the new senior lender. In addition, the new senior lender obtained a first priority interest in certain assets of Northeast Metal Works. As a result, the Company reclassified its term loan investment in Northeast Metal Works from senior secured to junior secured. In connection with the new financing agreement, Northeast Metal Works paid down the existing $1.5 million revolving line of credit by approximately $1.1 million. The remaining $0.4 million commitment under the revolving line of credit was transferred to the junior secured term loan as an increase in the outstanding principal amount. Finally, as part of the refinancing transaction, the Company sold 125 units of its preferred equity interest in Northeast Metal Works to a third party and recognized a realized gain of $20,750.

On September 27, 2019, the senior lender issued a Notice of Default to Northeast Metal Works. The Notice of Default prohibited Northeast Metal Works from making any further interest payments to the Company, despite having the cash on hand to do so. On October 31, 2019, the Company extended $1.7 million in additional credit to Northeast Metal Works by increasing the commitment on its junior secured term loan. Northeast Metal Works used the proceeds to pay off the existing senior secured debt and the senior secured debt was subsequently terminated. As a result of this transaction, the Company's junior secured term loan converted into a senior secured term loan.
(12)The Company's Credit Facility is secured by all of the Company's assets. Refer to Note 3 in the Notes to the audited Consolidated Financial Statements included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2019 for more information.
(13)All of the Company's portfolio investments are generally subject to restrictions on sale as "restricted securities", unless otherwise noted.
(14)Unless otherwise indicated, all portfolio company investments are Level 3 assets whose values were determined using significant unobservable inputs.
15


(15)On November 6, 2019, the Company's investment in Deluxe Entertainment Services Group Inc. ("Deluxe") was restructured whereby the Company's $5.4 million of debt at par value was deemed extinguished and in return the Company received its pro-rata share of a new second lien term loan with a par value of $0.5 million and 0.63% ownership in the common equity of a newly formed holding company, DESG Intermediate II Inc. ("DESG"). As a result of this transaction, the Company recorded a realized loss of $2.4 million, which is presented in the net realized gains (losses) - non-affiliated/non-control investments balance on the Consolidated Statement of Operations included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2019.

As of December 31, 2019, investments consisted of the following:

TypeAmortized CostFair Value% of Fair Value% of Net Assets
Senior Secured Debt$87,032,136 $85,954,384 73.6 %128.7 %
Junior Secured Debt20,413,183 18,757,348 16.0 %28.1 %
Equity16,004,386 12,097,658 10.4 %18.1 %
Total$123,449,705 $116,809,390 100.0 %174.9 %

The rate types of debt investments at fair value as of December 31, 2019 were as follows:

Rate TypeAmortized CostFair Value% of Fair Value% of Net Assets
Fixed Rate$51,238,518 $49,248,854 47.0 %73.7 %
Floating Rate56,206,802 55,462,878 53.0 %83.1 %
Total$107,445,320 $104,711,732 100.0 %156.8 %

The industry composition of investments at fair value as of December 31, 2019 was as follows:

IndustryAmortized CostFair Value% of Fair Value% of Net Assets
Aerospace & Defense$3,250,719 $3,110,727 2.7 %4.7 %
Banking, Finance, Insurance & Real Estate200,000 — — %— %
Beverage, Food & Tobacco8,163,668 7,912,514 6.8 %11.9 %
Capital Equipment12,302,002 12,469,097 10.7 %18.7 %
Construction & Building15,644,773 17,976,924 15.4 %26.9 %
Consumer Goods - Durable2,461,480 2,490,000 2.1 %3.7 %
Environmental Industries675,030 2,373,686 2.0 %3.6 %
Healthcare & Pharmaceuticals13,545,702 7,992,100 6.8 %12.0 %
High Tech Industries9,819,886 9,097,202 7.8 %13.6 %
Media: Advertising, Printing & Publishing4,642,569 4,736,722 4.1 %7.1 %
Media: Diversified & Production2,569,516 1,953,837 1.7 %2.9 %
Metals & Mining14,630,968 11,596,969 9.9 %17.4 %
Retailer3,098,300 2,233,000 1.9 %3.3 %
Services: Business25,527,036 25,811,339 22.1 %38.6 %
Telecommunications6,918,056 7,055,273 6.0 %10.5 %
Total$123,449,705 $116,809,390 100.0 %174.9 %

The geographic concentrations at fair value as of December 31, 2019 were as follows:

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United States RegionAmortized CostFair Value% of Fair Value% of Net Assets
West$48,099,122 $44,339,347 38.0 %66.4 %
Northeast44,285,800 40,083,277 34.3 %60.0 %
South23,640,239 24,886,766 21.3 %37.3 %
Midwest7,424,544 7,500,000 6.4 %11.2 %
$123,449,705 $116,809,390 100.0 %174.9 %

See accompanying notes to unaudited consolidated financial statements.

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Harvest Capital Credit Corporation
Notes to Unaudited Consolidated Financial Statements

Note 1. Organization 
 
Harvest Capital Credit Corporation ("HCAP" or the "Company") was incorporated as a Delaware corporation on November 14, 2012, for the purpose of, among other things, acquiring Harvest Capital Credit LLC (“HCC LLC”). HCAP acquired HCC LLC in May 2013, in connection with HCAP's initial public offering. HCAP is an externally managed, closed-end, non-diversified management investment company that has filed an election to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for tax purposes, HCAP has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As an investment company, the Company follows accounting and reporting guidance as set forth in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 946, Financial Services- Investment Companies.

On July 1, 2016, the Company formed HCAP Equity Holdings, LLC, a Delaware limited liability company, as a wholly-owned subsidiary of the Company to hold certain equity investments made by the Company in limited liability companies or other forms of pass-through entities. By investing through HCAP Equity Holdings, LLC, the Company is able to benefit from the tax treatment of this entity and create a tax structure that is advantageous with respect to the Company's status as a RIC. The Company also formed a wholly-owned subsidiary, HCAP ICC, LLC, a Delaware limited liability company, to exercise certain rights in connection with its investment in Infinite Care, LLC.

HCAP Equity Holdings, LLC and HCAP ICC, LLC are consolidated for financial reporting purposes, and the portfolio investments held by HCAP Equity Holdings, LLC are included in the Company's consolidated financial statements and recorded at fair value in conjunction with the Company's valuation policy. However, HCAP Equity Holdings, LLC and HCAP ICC, LLC are not consolidated for income tax purposes and may generate tax expense as a result of any ownership of portfolio companies.

Note 2. Summary of Significant Accounting Policies 
 
Basis of Financial Statement Presentation
 
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair statement of the Company's consolidated interim financial statements have been made.
 
In preparing the consolidated interim financial statements in accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, as of the date of the Consolidated Statements of Assets and Liabilities and the Consolidated Statements of Operations for the relevant period. Actual results could differ from those estimates.
 
Principles of Consolidation
 
The consolidated financial statements of the Company include the accounts of Harvest Capital Credit Corporation and its wholly-owned subsidiaries, HCAP Equity Holdings, LLC and HCAP ICC, LLC. The effects of all intercompany transactions between the Company and its subsidiaries have been eliminated in consolidation. Under ASC 946, Financial Services - Investment Companies, the Company is precluded from consolidating any entity other than another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries.

Recent Accounting Pronouncements

In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments require a financial asset (or a group of financial assets) measured at
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amortized cost basis to be presented at the net amount expected to be collected. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The new standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. The Company has adopted these amendments as currently required and the adoption did not have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements. ASU 2018-13 is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company has adopted these amendments as currently required and these are reflected in its consolidated financial statements and related disclosures.

Cash
 
Cash as presented in the Consolidated Statements of Assets and Liabilities and the Consolidated Statements of Cash Flows includes bank clearing accounts with financial institutions and cash held in these accounts may exceed the Federal Deposit Insurance Corporation insured limit.

Restricted Cash

Restricted cash of $29.3 million and $10.6 million as of September 30, 2020 and December 31, 2019, respectively, was held at financial institutions in conjunction with the Company's senior secured revolving credit facility (as amended, the "Credit Facility") (see Note 3. Borrowings). The Company is restricted from accessing this cash until the monthly settlement date when, after delivering a covenant compliance certificate, the net restricted cash is released to the Company after paying interest, fees, expenses, an