Company Quick10K Filing
Harvest Capital Credit
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 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 exhibit10210thamendmen.htm
EX-31.1 exhibit311june302020q2.htm
EX-31.2 exhibit312june302020q2.htm
EX-32.1 exhibit321june302020q2.htm
EX-32.2 exhibit322june302020q2.htm

Harvest Capital Credit Earnings 2020-06-30

Balance SheetIncome StatementCash Flow

10-Q 1 hcap10-qjune302020q2x2.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 June 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 August 6, 2020.




HARVEST CAPITAL CREDIT CORPORATION
 
 QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER
ENDED JUNE 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
June 30, 2020December 31, 2019
(unaudited)
ASSETS:
Non-affiliated/non-control investments, at fair value (cost of $50,851,230 at 6/30/20 and $61,379,670 at 12/31/19) $46,680,895  $60,973,556  
Affiliated investments, at fair value (cost of $49,417,580 at 6/30/20 and $48,111,833 at 12/31/19) 49,354,892  47,431,234  
Control investments, at fair value (cost of $14,043,651 at 6/30/20 and $13,958,202 at 12/31/19)8,247,949  8,404,600  
Cash 8,764,304  11,199,083  
Restricted cash21,458,381  10,648,199  
Interest receivable 560,097  663,191  
Accounts receivable – other 143,819  184,804  
Deferred financing costs 332,330  425,379  
Other assets 281,921  129,690  
Total assets $135,824,588  $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 $518,659 at 6/30/20 and $623,276 at 12/31/19)28,231,341  28,126,724  
Accrued interest payable 96,378  152,544  
Accounts payable - base management fees549,808  593,266
Accounts payable - administrative services expense350,000  350,000
Accounts payable and accrued expenses595,184  355,720
Total liabilities 74,822,711  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 6/30/20 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 6/30/20 and 12/31/19(6,723,505) (6,723,505) 
Accumulated overdistributed earnings(23,243,503) (17,378,360) 
Total net assets 61,001,877  66,781,482  
Total liabilities and net assets $135,824,588  $140,059,736  
Common stock outstanding5,958,479  5,945,854  
Net asset value per common share $10.24  $11.23  

See accompanying notes to unaudited consolidated financial statements.
1



Harvest Capital Credit Corporation 
Consolidated Statements of Operations (Unaudited) 
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Investment Income:
Interest:
Cash - non-affiliated/non-control investments $1,067,603  $1,349,743  $2,631,690  $2,830,855  
Cash - affiliated investments 1,105,081  1,100,708  2,406,871  2,061,654  
PIK - non-affiliated/non-control investments 110,582  18,647  220,216  30,766  
PIK - affiliated investments144,527  187,598  299,855  382,112  
Amortization of fees and discounts
  Non-affiliated/non-control investments103,647  200,200  193,642  427,062  
  Affiliated investments55,797  34,423  115,544  57,155  
Total interest income 2,587,237  2,891,319  5,867,818  5,789,604  
Other income3,610  102,987  9,790  242,946  
Total investment income 2,590,847  2,994,306  5,877,608  6,032,550  
Expenses:
Interest expense - revolving line of credit 339,900  92,295  661,019  102,781  
Interest expense - unused line of credit 34,105  92,135  89,501  193,884  
Interest expense - deferred financing costs 124,155  55,629  182,160  110,640  
Interest expense - 2022 Notes440,235  440,235  880,470  880,470  
Interest expense - deferred offering costs and discount52,765  49,210  104,618  97,570  
Total interest expense 991,160  729,504  1,917,768  1,385,345  
Professional fees248,279  297,546  457,324  817,880  
General and administrative248,416  236,619  479,688  491,572  
Base management fees 549,808  539,727  1,130,974  1,034,573  
Administrative services expense 350,000  350,000  700,000  700,000  
Total expenses2,387,663  2,153,396  4,685,754  4,429,370  
Net Investment Income203,184  840,910  1,191,854  1,603,180  
Net realized gains (losses):
Non-affiliated / Non-control investments(2,089,775) 6,151  (2,176,202) 52,451  
Affiliated investments(64,551) 20,750  (64,551) 20,750  
Control investments—  —  —  (10,890) 
Net realized gains (losses)(2,154,326) 26,901  (2,240,753) 62,311  
Net change in unrealized appreciation (depreciation) on investments:
  Non-affiliated / Non-control investments(522,115) 49,377  (3,764,219) (689,578) 
  Affiliated investments2,345,794  67,816  617,911  6,586  
  Control investments(632,550) (898,894) (242,100) (835,394) 
Net change in unrealized appreciation (depreciation) on investments1,191,129  (781,701) (3,388,408) (1,518,386) 
Total net unrealized and realized losses on investments (963,197) (754,800) (5,629,161) (1,456,075) 
Net increase (decrease) in net assets resulting from operations $(760,013) $86,110  $(4,437,307) $147,105  
Net investment income per share$0.03  $0.14  $0.20  $0.26  
Net increase (decrease) in net assets resulting from operations per share$(0.13) $0.01  $(0.75) $0.02  
Weighted average shares outstanding, basic and diluted5,958,479  6,161,052  5,954,014  6,231,496  

 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 June 30, 2020SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of March 31, 20205,958,479$6,601  $90,962,284  $(6,723,505) $(22,483,490) $61,761,890  
Net decrease in net assets resulting from operations:
Net investment income —  —  —  —  203,184  203,184  
Net realized losses—  —  —  —  (2,154,326) (2,154,326) 
Net change in unrealized appreciation on investments—  —  —  —  1,191,129  1,191,129  
Total decrease for the three months ended June 30, 2020—  —  —  —  (760,013) (760,013) 
Balance as of June 30, 20205,958,479$6,601  $90,962,284  $(6,723,505) $(23,243,503) $61,001,877  

Common Stock
Three Months Ended June 30, 2019SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of March 31, 20196,189,542$6,562  $92,347,663  $(3,959,962) $(13,468,725) $74,925,538  
Net increase in net assets resulting from operations:
Net investment income —  —  —  —  840,910  840,910  
Net realized gains—  —  —  —  26,901  26,901  
Net change in unrealized depreciation on investments—  —  —  —  (781,701) (781,701) 
Distributions to stockholders (1):
Distributions—  —  —  —  (1,478,407) (1,478,407) 
Capital share transactions
Reinvestment of dividends7,929   78,480  —  —  78,488  
Share repurchases(70,747) —  —  (742,969) —  (742,969) 
Total increase (decrease) for the three months ended June 30, 2019(62,818)  78,480  (742,969) (1,392,297) (2,056,778) 
Balance as of June 30, 20196,126,724$6,570  $92,426,143  $(4,702,931) $(14,861,022) $72,868,760  


3


Common Stock
Six Months Ended June 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 —  —  —  —  1,191,854  1,191,854  
Net realized losses—  —  —  —  (2,240,753) (2,240,753) 
Net change in unrealized depreciation on investments—  —  —  —  (3,388,408) (3,388,408) 
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 six months ended June 30, 202012,625  13  85,525  —  (5,865,143) (5,779,605) 
Balance as of June 30, 20205,958,479$6,601  $90,962,284  $(6,723,505) $(23,243,503) $61,001,877  



Common Stock
Six Months Ended June 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 —  —  —  —  1,603,180  1,603,180  
Net realized gains—  —  —  —  62,311  62,311  
Net change in unrealized depreciation on investments—  —  —  —  (1,518,386) (1,518,386) 
Distributions to shareholders (1):
Distributions—  —  —  —  (3,083,319) (3,083,319) 
Capital share transactions
Reinvestment of dividends15,651  16  155,870  —  —  155,886  
Share repurchases(261,508) —  —  (2,746,876) —  (2,746,876) 
Total increase (decrease) for the six months ended June 30, 2019(245,857) 16  155,870  (2,746,876) (2,936,214) (5,527,204) 
Balance as of June 30, 20196,126,724$6,570  $92,426,143  $(4,702,931) $(14,861,022) $72,868,760  

(1) The Company did not make any distributions during the three months ended June 30, 2020. Distributions exceeded net investment income for the three months ended June 30, 2019 by the amount of $637,497. Distributions exceeded net investment income for the six months ended June 30, 2020 and 2019 by the amount of $235,982 and $1,480,139, respectively. 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)
Six Months Ended June 30,
20202019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations $(4,437,307) $147,105  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Payment-in-kind income (520,071) (412,878) 
Payment-in-kind income collected42,546  87,065  
Net realized (gains) losses on investments 2,240,753  (62,311) 
Net change in unrealized depreciation of investments 3,388,408  1,518,386  
Amortization of fees and discounts on investments(309,186) (484,217) 
Amortization of deferred financing costs 182,160  110,640  
Amortization of deferred offering costs and discount 104,618  97,570  
Proceeds from sales of investments1,100,994  6,078,795  
Purchase of investments (net of loan origination and other fees) (1,705,475) (36,756,865) 
Proceeds from principal payments 8,437,688  14,190,434  
Changes in operating assets and liabilities:
(Increase) decrease in interest receivable 103,094  (57,743) 
(Increase) decrease in accounts receivable - other and other assets (261,244) 1,529  
Increase (decrease) in accrued interest payable (56,166) 26,503  
Increase (decrease) in accounts payable and other liabilities 132,532  (267,796) 
Net cash provided by (used in) operating activities 8,443,344  (15,783,783) 
Cash flows from financing activities:
Borrowings on revolving credit facility65,160,000  40,000,000  
Repayment of borrowings on revolving credit facility (63,860,000) (30,000,000) 
Financing costs(25,637) (9,282) 
Repurchased shares (held in Treasury Stock)—  (2,746,876) 
Distributions to stockholders (net of stock issued under dividend reinvestment plan of $85,525 and $155,886, respectively)(1,342,304) (2,927,433) 
Net cash provided by (used in) provided by financing activities (67,941) 4,316,409  
Net increase (decrease) in cash during the period8,375,403  (11,467,374) 
Cash at beginning of period 21,847,282  28,775,548  
Cash at end of period (1)$30,222,685  $17,308,174  
Non-cash operating activities:
Fair value of warrants received from Kleen-Tech Acquisition, LLC$—  $186,970  
Conversion of Northeast Metal Works, LLC Revolving Credit Facility to Junior Secured Term Loan$—  $446,494  
Conversion of Coastal Screen & Rail, LLC Revolving Credit Facility to Senior Secured Term Loan$—  $950,000  
Non-cash financing activities:
Value of shares issued in connection with dividend reinvestment plan $85,525  $155,886  
Supplemental disclosures of cash flow information:
5


Six Months Ended June 30,
20202019
Cash paid during the period for interest$1,687,156  $1,150,631  
Cash paid during the period for taxes$34,190  $36,431  

(1) Consists of cash and restricted cash of $8,764,304 and $21,458,381, respectively, at June 30, 2020, and $15,575,300 and $1,732,874, respectively at June 30, 2019.

See accompanying notes to unaudited consolidated financial statements.
6


Harvest Capital Credit Corporation
Consolidated Schedule of Investments (Unaudited)
As of June 30, 2020
Portfolio CompanyDate**IndustryInvestment (1) (2) (10) (11) (12) Principal Cost Fair Value
Non-Control / Non-Affiliate Investments
Back Porch International, Inc. (11.0%)*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)$6,921,831  $6,815,171  $6,707,912  
Senior Secured Revolving Line of Credit, due 09/2020 (1M LIBOR + 8.00%)(3)—  —  —  
6,921,831  6,815,171  6,707,912  
Brite Media LLC (0.2%)*04/2014Media: Advertising, Printing & PublishingClass A Interest (0.86% fully diluted common equity)125,000  148,164  
125,000  148,164  
Coastal Screen and Rail, LLC (12.2%)*01/2018Construction & BuildingSenior Secured Term Loan, due 01/2023 (14.00%; 10.50% Cash + 3.50% PIK)(4)7,354,230  7,261,798  7,245,838  
Senior Secured Revolving Line of Credit, due 07/2022 (8.31%; 3M LIBOR + 8.00%)(3)100,000  100,000  100,000  
Preferred Equity Class B Interest (3.90% fully diluted common equity)(5)150,000  121,849  
7,454,230  7,511,798  7,467,687  
Deluxe Entertainment Services Group Inc.(2.6%)*01/2019Media: Diversified & ProductionJunior Secured Term Loan, due 9/2024 (9.95%, LIBOR + 6.00% with a 1.00% LIBOR floor + 2.50% PIK)519,603  519,603  519,603  
Common Equity (0.63% fully diluted common equity)2,056,418  1,096,571  
519,603  2,576,021  1,616,174  
General Nutrition Centers, Inc. (2.4%)*02/2019Beverage, Food, & TobaccoSenior Secured Term Loan, due 08/2020 (9.50%; LIBOR + 8.75% with a 0.75% LIBOR floor; ABR + 7.75%)(9) (13)3,963,773  3,875,641  1,447,000  
3,963,773  3,875,641  1,447,000  
GK Holdings, Inc. (3.1%)*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  1,890,000  
3,000,000  2,972,406  1,890,000  
KC Engineering & Construction Services, LLC (4.1%)*10/2017Environmental IndustriesClass A Membership Interest (3.0% fully diluted common equity)(5)875,030  2,489,951  
875,030  2,489,951  
Peerless Media, LLC (6.4%)*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)3,993,402  3,963,337  3,923,865  
3,993,402  3,963,337  3,923,865  
ProAir Holdings Corporation (10.7%)*09/2017