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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

___________________________________

 

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

 

March 12, 2015

 

GSV CAPITAL CORP.

(Exact name of registrant as specified in its charter)

 

Maryland   1-35156 27-4443543
(State or other jurisdiction   (Commission File Number)   (I.R.S. Employer Identification No.)
of incorporation)        

 

2925 Woodside Road

Woodside, CA 94062

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code: (650) 235-4769

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.02Results of Operations and Financial Condition.

 

On March 12, 2015, the registrant issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2014. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

 

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

 

Item 9 .01Financial Statements and Exhibits.

 

(a)Not applicable.

 

(b)Not applicable.

 

(c)Not applicable.

 

(d)Exhibits.

 

Exhibit No.   Description
     
99.1   Press release dated March 12, 2015

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: March 12, 2015   GSV CAPITAL CORP.
     
     
  By:   /s/ William F. Tanona
    William F. Tanona
    Chief Financial Officer, Treasurer and
    Corporate Secretary

 

 

Exhibit 99.1

 

GSV Capital Corp.

Page 1 of 8

 

 

 

GSV Capital Corp. Reports Fourth Quarter 2014 Results of Operations

 

Net Asset Value of $14.80 Per Share as of December 31, 2014

 

WOODSIDE, Calif., March 12, 2015 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the fourth quarter ended December 31, 2014. Net assets totaled $285.9 million or $14.80 per share at December 31, 2014, as compared to $15.17 per share at September 30, 2014, and $14.91 per share at December 31, 2013. Twitter (Nasdaq: TWTR), GSV’s largest position (currently 15.5% of total portfolio value), declined in stock price over the course of the fourth quarter, from $51.58 per share on September 30, 2014 to $35.87 per share on December 31, 2014. The net effect of this resulted in a decrease in net assets of $9.8 million, or approximately $0.51 per share. Subsequent to quarter end, Twitter’s stock has increased to $46.27 per share (as of March 11, 2015).

 

"We are pleased that we made several new investments this quarter in what we believe are disruptive, game-changing companies, including Clever, DogVacay, Enjoy, and Lytro,” said Michael Moe, Chief Executive Officer of GSV Capital. “Another positive milestone in the quarter was monetizing our positions in TrueCar and a portion of Palantir with strong returns. We believe it’s important to demonstrate an ability to get liquidity for both our public and private holdings to optimize portfolio performance.”

 

Fourth Quarter 2014 Portfolio Highlights

 

·GSV sold shares in its public and private portfolio companies including:

 

1)Palantir: 1,052,000 shares, resulting in $6.1 million in net proceeds, $3.1 million in realized gains, and a 34% Internal Rate of Return (IRR).

 

2)TrueCar (Nasdaq: TRUE): 251,572 shares, resulting in $5.1 million in net proceeds, $3.0 million in realized gains, and a 33% IRR.

 

·GSV invested $25.2 million in the quarter, including new investments of $7.5 million in Lytro, $2.5 million in DogVacay, $2.0 million in Clever, and $1.0 million in Enjoy. In addition, GSV made follow-on investments in the following portfolio companies: CorpU, GSV Sustainability Partners, nestGSV (d/b/a GSVlabs), Learnist, and Ozy Media.

 

Investment Portfolio as of December 31, 2014

 

At December 31, 2014, GSV owned positions in 52 portfolio companies with an aggregate fair value of $371.0 million. The Company’s three largest investments comprised 34.6% of the total portfolio value, excluding Treasuries, while its top ten portfolio companies represented 60.2% of the total portfolio value, excluding Treasuries.

 

 
GSV Capital Corp.
Page 2 of 8

 

Top Ten Investments at December 31, 2014

 

$ in millions (rounded)  Fair Value   % of Total Portfolio 
Twitter, Inc.   57.4    15.5%
Palantir Technologies, Inc.   45.5    12.3 
Dropbox, Inc.   25.1    6.8 
2U, Inc.   23.3    6.3 
Coursera, Inc.   14.5    3.9 
Solexel, Inc.   14.0    3.8 
Avenues Global Holdings LLC   11.3    3.0 
SugarCRM, Inc.   11.3    3.0 
Ozy Media, Inc.   10.7    2.9 
Declara, Inc.   10.0    2.7 
          Total (rounded)   223.2    60.2%

 

Fourth Quarter 2014 Portfolio Investment Activity

 

In the fourth quarter of 2014, GSV invested $25.2 million, including new investments of $7.5 million in Lytro, $2.5 million in DogVacay, $2.0 million in Clever, and $1.0 million in Enjoy. In addition, GSV made follow-on investments in the following portfolio companies: CorpU, GSV Sustainability Partners, GSVlabs, Learnist, and Ozy Media.

 

During the fourth quarter of 2014, GSV sold the following investments.

 

       Average         
   Shares   Share   Net   Realized 
Portfolio Company  Sold   Price   Proceeds   Gain/Loss 
                     
Palantir Technologies   1,052,000   $5.76   $6,059,520   $3,058,374 
TrueCar, Inc.   251,572   $20.09   $5,053,570   $3,038,548 
                     
Total Net Proceeds            $11,113,090   $6,096,922 

 

At December 31, 2014, GSV had investments in 48 private companies and 4 public companies (2U, Chegg, Cricket Media (f/k/a ePals Inc.), and Twitter). In general, management intends to liquidate its public securities holdings within one year following the expiration of the IPO lock-up.

 

Subsequent to fourth quarter end, until March 11, 2015, GSV Capital invested $4.5 million, including follow-on investments of $1.0 million in GSVlabs, $1.0 million in Fullbridge, and $2.5 million in Lyft. At quarter end, the balance on our credit facility was $18.0 million, and our current credit facility balance as of March 11, 2015 is $16.0 million.

 

As GSV's portfolio matures and realizes a cumulative net realized gain, GSV intends to distribute a portion of such gains to shareholders in the form of a distribution, though it is not certain as to when GSV will be able to do so.

 

 
GSV Capital Corp.
Page 3 of 8

 

Fourth Quarter 2014 Financial Results

 

   Three Months Ended
December 31, 2014		  Three Months Ended
December 31, 2013
  in millions  per share  in millions   per share
Net investment gain (loss)  $(1.7)  $(0.09)  $(0.9)  $(0.05)
             
Net realized and unrealized gains (losses) excluding tax provisions  $(9.4)  $(0.49)  $56.0  $2.90
             
Net increase (decrease) in net assets resulting from operations  $(7.2)  $(0.37)  $33.6  $1.74

 

Weighted average common shares outstanding were 19.3 million for the three months ended December 31, 2014 and December 31, 2013.

 

Our liquid assets ended the quarter at $92.7 million, consisting of $3.5 million of cash and $89.3 million of public securities not subject to lock-up agreements.

 

Fiscal Year 2014 Financial Results

 

   Year Ended
December 31, 2014		  Year Ended
December 31, 2013
  in millions  per share  in millions   per share
Net investment gain (loss)  $(12.8)  $(0.66)  $(8.9)  $(0.46)
             
Net change in unrealized appreciation (depreciation) excluding tax provisions  $(5.8)  $(0.30)  $87.4  $4.53
             
Net realized gain (loss) on investments excluding tax provisions  $23.9  $1.24  $(21.7)  ($1.12)
             
Net increase (decrease) in net assets resulting from operations  $(2.1)  $(0.11)  $35.4  $1.83

 

Weighted average common shares outstanding were 19.3 million for the years ended December 31, 2014 and December 31, 2013.

 

Conference Call and Webcast

 

Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number for U.S. participants is 800-575-5790, and the conference call number for participants outside the U.S. is 1 719-457-2657. The conference ID number for both call numbers is 2190127. Additionally, interested parties can listen to a live webcast of the call from the "Investors" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.

 

A replay of the conference call may be accessed through March 19, 2015 by dialing 888-203-1112 (U.S.) or 1 719-457-0820 (international), using conference ID number 2190127.

 

 
GSV Capital Corp.
Page 4 of 8

 

About GSV Capital Corp.

 

GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com

 

www.gsvcap.com

 

Follow GSV Capital on Twitter: @gsvcap

 

The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750

 

Forward-Looking Statements

 

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

 

Contact

 

GSV Capital Corp.

William Tanona

(650) 235-4769

IR@gsvam.com

 

 

 

 
GSV Capital Corp.
Page 5 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

 

   December 31, 2014   December 31, 2013 
ASSETS          
Investments at fair value:          
Investments in controlled securities (cost of $17,933,651 and $0, respectively) (1)  $18,819,335   $- 
Investments in affiliated securities (cost of $80,760,208 and $64,912,527, respectively) (1)   70,172,313    62,740,162 
Investments in non-controlled/non-affiliated securities (cost of $202,417,830 and $214,796,591, respectively)   281,992,669    292,643,491 
Investments in treasury bill (cost of $100,001,692 and $0, respectively)   100,000,056    - 
Investments owned and pledged (cost of $7,286,332  and $10,845,236, respectively)   7,298,042    10,865,200 
Total Investments (cost of $408,399,713 and $290,554,354, respectively)   478,282,415    366,248,853 
           
Cash   3,472,880    7,219,203 
Restricted cash   48,889    22,264 
Due from:          
   GSV Asset Management(1)   204,825    3,039 
   Portfolio companies(1)   85,356    153,178 
Interest and dividends receivable   26,671    31,678 
Prepaid expenses   179,556    49,739 
Deferred credit facility fees   261,065    288,249 
Deferred debt issuance costs   2,667,069    3,378,121 
Other assets   417,370    553,234 
Total Assets   485,646,096    377,947,558 
           
LIABILITIES          
Due to:          
   GSV Asset Management(1)   23,396    31,428 
Accounts payable   292,950    382,165 
Accrued incentive fees (1)    14,137,899    10,523,552 
Accrued management fees (1)    641,276    532,550 
Accrued interest payable   1,139,458    1,056,563 
Payable for securities purchased   90,001,692    - 
Current taxes payable   134,733    - 
Deferred tax liability   6,907,666    8,320,561 
Line of credit payable   18,000,000    - 
Convertible senior notes embedded derivative liability   1,000    799,000 
Convertible senior notes payable 5.25% due September 15, 2018   68,462,353    68,335,295 
Total Liabilities   199,742,423    89,981,114 
Commitments and contingencies          
Net Assets  $285,903,673   $287,966,444 
           
NET ASSETS          
Common stock, par value $0.01 per share          
(100,000,000 authorized; 19,320,100 issued and outstanding)  $193,201   $193,201 
Paid-in capital in excess of par   275,837,514    275,837,514 
Accumulated net investment loss   (31,972,292)   (19,192,401)
Accumulated net realized gain (loss) on investments   496,782    (13,660,306)
Accumulated net unrealized appreciation (depreciation) on investments   41,348,468    44,788,436 
Net Assets  $285,903,673   $287,966,444 
           
Net Asset Value Per Share  $14.80   $14.91 

 

(1) This balance is a related party transaction.

 

 
GSV Capital Corp.
Page 6 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

   Year ended
December 31,
2014		   Year ended
December 31,
2013		   Year ended
December 31,
2012		 
INVESTMENT INCOME               
Interest income from controlled securities  $10,233   $-   $- 
Interest income from affiliate securities   130,021    23,615    21,852 
Interest income  from non-affiliated/non-controlled securities   44,805    2,256    200,195 
Dividend income from affiliated securities   -    13,008    26,030 
Dividend income from non-affiliated/non-controlled securities   887    10,072    - 
Total Investment Income   185,946    48,951    248,077 
                
OPERATING EXPENSES               
Investment management fees (1)   7,562,488    5,426,485    4,419,345 
Accrued incentive fees(1)   3,614,347    10,523,552    - 
Costs incurred under administration agreement   3,199,904    3,089,771    2,384,764 
Directors’ fees(1)   260,000    260,250    237,500 
Professional fees   1,764,722    876,769    959,604 
Interest and credit facility expense   5,503,843    1,278,997    - 
Insurance expense   243,285    240,725    214,306 
Investor relations expense   208,710    198,809    182,193 
Other expenses   216,640    89,517    133,246 
Gain (Loss) on fair value adjustment for embedded derivative   (798,000)   99,000    - 
Total Operating Expenses   21,775,939    22,083,875    8,530,958 
                
Benefit for taxes on net investment loss   8,810,102    13,159,268    - 
                
Net Investment Loss   (12,779,891)   (8,875,656)   (8,282,881)
                
Net Realized gain (loss):               
From affiliated securities   10,419    (7,839,791)   - 
From non-controlled/non-affiliated securities   23,915,705    (13,866,230)   (1,380,519)
Total Realized Gain (Loss) on investments   23,926,124    (21,706,021)   (1,380,519)
                
(Provision)/Benefit for Taxes on realized gain/loss on investments   (9,769,036)   9,426,234    - 
                
Net Change in Unrealized Appreciation (Depreciation) on investments:               
From controlled securities   (662,619)   -    - 
From affiliated securities   (6,867,225)   1,600,822    (3,537,748)
From non-controlled/non-affiliated securities   1,718,047    85,844,327    (6,633,102)
Change in Unrealized Appreciation (Depreciation) on investments   (5,811,797)   87,445,149    (10,170,850)
                
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments   2,371,829    (30,906,063)   - 
                
Net Increase (Decrease) in Net Assets Resulting From Operations  $(2,062,771)  $35,383,643   $(19,834,250)
                
 
GSV Capital Corp.
Page 7 of 8

 

Net Increase (Decrease) in Net Assets Resulting From Operations Per Common Share:            
Basic  $(0.11)  $1.83   $(1.23)
Diluted  $(0.11)  $1.78   $(1.23)
                
Weighted Average Common Shares Outstanding:               
Basic   19,320,100    19,320,100    16,096,330 
Diluted   19,320,100    20,541,014    16,096,330 

 

(1) This balance is a related party transaction.

 

 
GSV Capital Corp.
Page 8 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS (UNAUDITED)

 

   Three months ended
December 31, 2014		     Three months ended
December 31, 2013		   
Per Share Data:              
Net asset value at beginning of year  $15.17     $13.16   
Issuance of common shares   -  (1)      (1)
Underwriters’ discount   -  (1)      (1)
Offering costs   -  (1)      (1)
Net investment loss   (0.09 )(1)   (0.05 )(1)
Realized gain (loss)   0.31  (1)   (0.61 )(1)
Provision/Benefit for taxes on net realized capital gains/losses   (0.13 )(1)   0.49  (1)
Change in unrealized appreciation (depreciation)   (0.79 )(1)   3.52  (1)
Provision/Benefit for taxes on unrealized appreciation/deprecation of investments   0.33  (1)   (1.60 )(1)
Net asset value at end of year  $14.80     $14.91   

 

 

   Year ended December 31, 2014      Year ended December 31, 2013      Year ended
December 31, 2012		    
Per Share Data:                           
Net asset value at beginning of year  $14.91       $13.07       $12.95     
Issuance of common shares   -        -        1.91   (3)
Underwriters’ discount   -        -        (0.72)  (2)
Offering costs   -        -        (0.04)  (2)
Net investment loss   (0.66)  (1)   (0.46)  (1)   (0.51)  (1)
Realized gain (loss)   1.24   (1)   (1.12)  (1)   (0.09)  (1)
Provision/Benefit for taxes on net realized capital gains/losses   (0.51)  (1)   0.49   (1)   -   (1)
Change in unrealized appreciation (depreciation)   (0.30)  (1)   4.53   (1)   (0.43)  (4)
Provision/Benefit for taxes on unrealized appreciation/deprecation of investments   0.12   (1)   (1.60)  (1)   -   (1)
Net asset value at end of year  $14.80       $14.91       $13.07     
                            
Per share market value at end of year  $8.63       $12.09       $8.43     
Total return based on market value   (28.62)%  (5)   43.42%  (5)   (39.57)%  (5)
Total return based on net asset value   (0.74)%  (5)   14.08%  (5)   0.93%  (5)
Shares outstanding at end of year   19,320,100        19,320,100        19,320,100     
                            
Ratio / Supplemental Data:                           
Net assets at end of year  $285,903,673       $287,966,444       $252,582,801     
Average net assets  $284,953,811       $250,121,052       $208,050,344     
                            
Annualized ratio of gross operating expenses to average net assets (6)   7.64%       8.83%       4.10%    
Annualized ratio of net income tax provisions to average net assets(6)   (0.50)%       (3.33)%       -     
Annualized ratio of net operating expenses to average net assets (6)   7.14%       5.50%       4.10%    
                            
Annualized ratio of net investment loss to average net assets (6)   4.48%       (3.55)%       (3.98)%    

 

(1) Based on weighted average number of shares outstanding for the year/period.
(2) Based on shares outstanding at end of period.
(3) Issuance of common shares for the year ended December 31, 2012 is based on the change in net asset value from the secondary offerings on February 10, 2012 and May 11, 2012.
(4) Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.
(5) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share and the issuance of common shares in the period. The percentage returns noted above are based on the increase in our net asset value attributable to issuances of our common stock at a premium to our net asset value per share, rather than investment returns. Such issuances of our common stock at a premium to net asset value per share are not typical, and may not occur in the future. The total returns are not annualized.
(6) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly.  Non-recurring expenses were not annualized.  For the years ended December 31, 2014, December 31, 2013, December 31, 2012, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios.