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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):

 

August 6, 2015

 

GSV CAPITAL CORP.

(Exact name of registrant as specified in its charter)

 

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

 

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 August 6, 2015, the registrant issued a press release announcing its financial results for the fiscal quarter ended June 30, 2015. 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

 

99.1Press release dated August 6, 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: August 6, 2015 GSV CAPITAL CORP.  
     
     
  By:  /s/ William F. Tanona  
    William F. Tanona
Chief Financial Officer, Treasurer and Corporate Secretary		  

 

 
 

 

EXHIBIT INDEX

 

Exhibit No.Description of Exhibits

 

99.1Press Release dated August 6, 2015

 

 
 

 

 

Exhibit 99.1

 

GSV Capital Corp.

Page 1 of 7

 

 

 

GSV Capital Corp. Reports Second Quarter 2015 Results of Operations

 

Net Asset Value of $15.72 Per Share as of June 30, 2015

 

WOODSIDE, Calif., August 6, 2015 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the second quarter ended June 30, 2015. Net assets totaled $303.6 million, or $15.72 per share, at June 30, 2015, as compared to $15.66 per share at March 31, 2015 and $14.86 per share at June 30, 2014.

 

"We are pleased that our NAV per share is again at an all-time high this quarter,” said Michael Moe, Chief Executive Officer of GSV Capital. “Our focus remains on systematically identifying and investing in what we believe are the world’s most dynamic growth companies, while capitalizing on attractive opportunities to monetize positions in our portfolio.”

 

Investment Portfolio as of June 30, 2015

 

At June 30, 2015, GSV owned positions in 52 portfolio companies with an aggregate fair value of $390.3 million. Excluding Treasuries, the Company’s three largest investments comprised 30.0% of the total portfolio value, while its top ten portfolio companies accounted for approximately 57.4% of the total portfolio value.

 

 

Top Ten Investments at June 30, 2015

 

$ in millions (rounded)  Fair Value   % of Total Portfolio 
Palantir Technologies, Inc.  $48.8    12.5%
2U, Inc.   38.2    9.8 
Dropbox, Inc.   30.0    7.7 
Twitter, Inc.   29.0    7.4 
Coursera, Inc.   14.5    3.7 
Solexel, Inc.   14.0    3.6 
PayNearMe, Inc.   14.0    3.6 
SugarCRM, Inc.   12.3    3.2 
Dataminr, Inc.   11.9    3.0 
Avenues Global Holdings, LLC   11.3    2.9 
Total (rounded)  $224.0    57.4%

 

 

Of the five key investment themes GSV has identified in its portfolio, Education Technology continues to be its largest commitment, constituting 36.4% of the total portfolio. Cloud Computing and Big Data represents 32.1% of the total portfolio, and Social Mobile, Marketplaces and Sustainability make up 15.3%, 10.4% and 5.8% of the total portfolio, respectively.

 

 

 
 

GSV Capital Corp.

Page 2 of 7

 

 

Second Quarter 2015 Portfolio Investment Activity

 

In the second quarter of 2015, GSV invested approximately $1.6 million, including in two follow-on investments of $1.5 million in GSVlabs and $50,000 in EarlyShares. Subsequent to quarter-end, GSV also invested $4.0 million in Enjoy Technology.

 

During the second quarter of 2015, GSV sold shares in the following public portfolio company:

 

      

Average

             
   Shares   Share   Net   Realized     
Portfolio Company  Sold   Price   Proceeds   Gain/(Loss)   IRR 
                    
Twitter, Inc.   400,000   $51.52   $20,608,011   $13,666,419    43.5%

 

At June 30, 2015, GSV had investments in 48 private companies and 4 public companies (2U (Nasdaq:TWOU), Chegg (NYSE:CHGG), Cricket Media (f/k/a ePals Inc.) (CVE:CKT) and Twitter (NYSE:TWTR)). In general, management intends to liquidate its public securities holdings within one year following the expiration of the corresponding IPO lock-up.

 

At quarter-end, GSV had $18.0 million of borrowing capacity available to it under its credit facility. As of August 6, 2015, GSV has $18.0 million of borrowing capacity available to it under its credit facility.

 

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

 

Second Quarter 2015 Financial Results

 

  

Three Months Ended

June 30, 2015

 

Three Months Ended

June 30, 2014

   $ in millions
(rounded)		 

 

per share

  $ in millions
(rounded)		 

 

per share

Net investment loss  $(3.6)  $(0.19)  $(3.4)  $(0.18)
             
Net realized gain(loss)  $13.6  $0.71  $(7.2)  $(0.38)
             
(Provision)/Benefit for taxes on net realized capital gains/losses  $(5.6)  $(0.29)  $3.0  $0.15
             
Net change in unrealized appreciation/(depreciation) of investments  $(5.7)  $(0.29)  $11.5  $0.60
             
(Provision)/Benefit for taxes on unrealized appreciation/ (depreciation) of investments  $2.4  $0.12  $(4.7)  $(0.24)
             
Net increase/(decrease) in net assets resulting from operations - basic  $1.1  $0.06  $(0.9)  $(0.05)

 

Weighted average common basic shares outstanding were approximately 19.3 million for the three months ended June 30, 2015 and June 30, 2014.

 

Our liquid assets ended the quarter at $102.8 million, consisting of $8.0 million of cash, $18.0 million of unused borrowings available under the credit facility, and $76.7 million of public securities not subject to lock-up agreements, of which $38.5 million are subject to periodic sales restrictions.

 

 
 

GSV Capital Corp.

Page 3 of 7

 

 

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 888-299-7212, and the conference call number for participants outside the U.S. is 1 719-457-2659. The conference ID number for both call numbers is 5002085. 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 August 13, 2015 by dialing 888-203-1112 (U.S.) or 1 719-457-0820 (international), using conference ID number 5002085.

 

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 our 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 SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.

 

Contact

 

GSV Capital Corp.

William Tanona

(650) 235-4769

IR@gsvam.com

  

 

 
 

GSV Capital Corp.

Page 4 of 7

 

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

   June 30, 2015   December 31, 2014 
ASSETS  (Unaudited)     
Investments at fair value:          
Investments in controlled securities (cost of $19,031,912 and $17,933,651 respectively) (1)  $20,666,877   $18,819,335 
Investments in affiliated securities (cost of $85,207,517 and $80,760,208 respectively) (1)   75,297,514    70,172,313 
Investments in non-controlled/non-affiliated securities (cost of $194,193,416 and $202,417,830 respectively)   294,378,268    281,992,669 
Investments in treasury bill (cost of $100,001,569 and $100,001,692 respectively)   100,001,569    100,000,056 
Investments owned and pledged (amortized cost of $5,485,542 and $7,286,332 respectively) (2)   5,498,112    7,298,042 
      Total Investments (cost of $403,919,956 and $408,399,713 respectively)   495,842,340    478,282,415 
           
Cash   8,049,760    3,472,880 
Restricted cash   41,181    48,889 
Due from:          
   GSV Asset Management(1)   1,124    204,825 
   Portfolio companies(1)   68,371    85,356 
Interest and dividends receivable   119,248    26,671 
Prepaid expenses and other assets   63,982    596,926 
Deferred financing costs   2,514,558    2,928,134 
Total Assets   506,700,564    485,646,096 
           
LIABILITIES          
Due to:          
   GSV Asset Management(1)   29,325    23,396 
Accounts payable and accrued expenses   62,169    292,950 
Accrued incentive fees (1)    23,914,966    14,137,899 
Accrued management fees (1)    670,128    641,276 
Accrued interest payable   1,056,563    1,139,458 
Payable for securities purchased   89,501,569    90,001,692 
Current taxes payable   134,733    134,733 
Deferred tax liability   19,153,303    6,907,666 
Line of credit payable   -    18,000,000 
Convertible Senior Notes embedded derivative liability   -    1,000 
Convertible Senior Notes payable 5.25% due September 15, 2018   68,528,012    68,462,353 
Total Liabilities   203,050,768    199,742,423 
Commitments and contingencies (Note 6)          
Net Assets  $303,649,796   $285,903,673 
           
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   (43,157,161)   (31,972,292)
Accumulated net realized gain on investments   16,386,895    496,782 
Accumulated net unrealized appreciation on investments   54,389,347    41,348,468 
Net Assets  $303,649,796   $285,903,673 
           
Net Asset Value Per Share  $15.72   $14.80 
           
(1)This balance is a related-party transaction.

 

(2)In accordance with the terms of the Company’s Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with the Trustee. These funds were used to purchase U.S. Treasury Strips with an original cost of $10,845,236. As of June 30, 2015, three of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement.

 

 
 

GSV Capital Corp.

Page 5 of 7

 

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2015   2014   2015   2014 
INVESTMENT INCOME                
Interest income from controlled securities (1)  $-   $667   $-   $5,733 
Interest income from affiliated securities(1)   69,165    68,591    120,396    103,453 
Interest income from non-controlled/non-affiliated securities   7,945    27,775    15,738    27,775 
Dividend income from non-controlled/non-affiliated securities   46,781    -    46,781    887 
Total Investment Income   123,891    97,033    182,915    137,848 
                     
OPERATING EXPENSES                    
Management fees (1)   2,010,385    1,933,663    3,931,513    3,689,859 
Incentive fees (1)   1,565,339    844,633    9,777,067    1,814,285 
Costs incurred under administration agreement(1)   785,036    929,701    1,587,432    1,838,233 
Directors’ fees   107,500    65,000    192,806    130,000 
Professional fees   394,228    402,555    735,972    859,094 
Interest and credit facility expense   1,228,783    1,533,971    2,597,586    2,713,696 
Other expenses   143,153    186,028    264,478    318,927 
Gain on fair value adjustment for embedded derivative   (1,000)   (20,000)   (1,000)   (640,000)
Total Operating Expenses   6,233,424    5,875,551    19,085,854    10,724,094 
                     
Benefit for taxes on net investment loss   2,494,459    2,359,369    7,718,070    4,372,283 
                     
Net Investment Loss   (3,615,074)   (3,419,149)   (11,184,869)   (6,213,963)
                     
Net Realized Gain(Loss):                      
From affiliated securities   -    -    -    10,419 
From non-controlled/non-affiliated securities   13,636,614    (7,249,566)   26,855,017    671,760 
Net Realized Gain(Loss) on investments   13,636,614    (7,249,566)   26,855,017    682,179 
                     
(Provision)/Benefit for taxes on realized                    
gains/losses on investments   (5,567,830)   2,959,998    (10,964,904)   (278,533)
                     
Net Change in Unrealized Appreciation                    
(Depreciation) on investments:                    
From controlled securities   (8,277)   (24,693)   (33,572)   (439,092)
From affiliated securities   (804,967)   (3,566,018)   (657,088)   (3,764,212)
From non-controlled/non-affiliated securities   (4,931,155)   15,063,436    22,730,342    12,602,350 
Total Change in Unrealized Appreciation                    
 (Depreciation) on investments   (5,744,399)   11,472,725    22,039,682    8,399,046 
                     
(Provision)/Benefit for taxes on unrealized                    
appreciation/depreciation on investments   2,372,190    (4,684,314)   (8,998,803)   (3,429,331)
                     
Net Increase(Decrease) in Net Assets                    
Resulting from Operations  $1,081,501   $(920,306)  $17,746,123   $(840,602)
                     
Net Increase(Decrease)  in Net Assets Resulting                    
from Operations per Common Share                    
Basic  $0.06   $(0.05)  $0.92   $(0.04)
Diluted(2)  $0.06   $(0.05)  $0.81   $(0.04)
                     
Weighted Average Common Shares Outstanding                     
Basic   19,320,100    19,320,100    19,320,100    19,320,100 
Diluted(2)   19,320,100    19,320,100    23,564,228    19,320,100 

 

 
 

GSV Capital Corp.

Page 6 of 7

 

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(Unaudited)

 

 

(1)      This balance is a related-party transaction.

 

(2)       For the three months ended June 30, 2015, 4,244,128 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.

 

 

 

 
 

GSV Capital Corp.

Page 7 of 7

 

GSV CAPITAL CORP. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

 

   Three months ended      Three months ended    
   June 30, 2015      June 30, 2014    
Per Share Data:   (Unaudited)       (Unaudited)    
Net asset value at beginning of period  $15.66      $14.91    
Net investment loss   (0.19)  (1)   (0.18)  (1)
Net realized gain(loss)   0.71   (1)   (0.38)  (1)
(Provision)/Benefit for taxes on Net Realized Capital Gains/Losses   (0.29)  (1)   0.15   (1)
Net change in Unrealized Appreciation(Depreciation) of Investments   (0.29)  (1)   0.60   (1)
(Provision)/Benefit for taxes on Unrealized Appreciation/(Deprecation) of Investments   0.12   (1)   (0.24)  (1)
Net asset value at end of period  $15.72      $14.86    
                 
Per share market value at end of period  $10.31      $10.57    
Total return based on market value   5.20%  (2)   4.24%  (2)
Total return based on net asset value   0.38%  (2)   (0.34)%  (2)
Shares outstanding at end of period   19,320,100       19,320,100    
                 
Ratio / Supplemental Data:                
Net assets at end of period  $303,649,796      $287,125,842    
Average net assets  $295,688,346      $275,480,154    
                 
Annualized ratios                
Ratio of gross operating expenses to average net assets (3)   8.55%      8.55%   
Ratio of net income tax provisions to average net assets(3)   (0.96)%      (0.92)%   
Ratio of net operating expenses to average net assets (3)   7.59%      7.63%   
                 
Ratio of net investment loss to average net assets (3)   (4.96)%      (4.98)%   
                 

 

   Six months ended     Six months ended   
   June 30, 2015     June 30, 2014   
Per Share Data  (Unaudited)     (Unaudited)   
Net asset value at beginning of period  $14.80      $14.91    
Net investment loss   (0.58)  (1)   (0.32)  (1)
Realized gain   1.39   (1)   0.04   (1)
Provision for taxes on net realized capital gains   (0.57)  (1)   (0.01)  (1)
Net change in unrealized appreciation   1.15   (1)   0.43   (1)
Provision for taxes on unrealized appreciation of investments   (0.47)  (1)   (0.19)  (1)
Net asset value at end of period  $15.72      $14.86    
                 
Per share market value at end of period  $10.31      $10.57    
Total return based on market value   19.47%  (2)   (12.57)%  (2)
Total return based on net asset value   6.22%  (2)   (0.34)%  (2)
Shares outstanding at end of period   19,320,100       19,320,100    
                
Ratio / Supplemental Data:                
Net assets at end of period   303,649,796       287,125,842    
Average net assets   293,486,377       281,410,486    
                 
Annualized ratios                
Ratio of gross operating expenses to average net assets (3)   13.11%     7.68%   
Ratio of net income tax provisions to average net assets(3)   (8.41)%     (0.48)%   
Ratio of net operating expenses to average net assets (3)   4.70%     7.20%   
                 
Ratio of net investment loss to average net assets (3)   (7.69)%     (4.45)%   

 

(1) Based on weighted average number of shares outstanding for the year/period.
(2) 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.
(3) 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 are not annualized.  For the six months ended June 30, 2015, and 2014, 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.