Hercules Capital, Inc.

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.

On March 20, 2026, a putative shareholder class action lawsuit (i.e., the lawsuit has not yet been certified as a class action by a court) captioned Hunter v. Hercules Capital, Inc. et al., No. 26-cv-2465-VC, was filed in the United States District Court for the Northern District of California against the Company and certain of its officers. The lawsuit, which sought monetary damages, alleged that the Company and certain officers made materially false and misleading statements regarding the Company’s business operations and processes. A lead plaintiff was appointed on June 25, 2026, and ordered to file an amended complaint on or before July 23, 2026. On July 22, 2026, the lawsuit was voluntarily dismissed by the plaintiff without prejudice.

Additionally, two shareholder derivative complaints were filed, alleging breaches of fiduciary duties and other misconduct by certain directors and officers of the Company as a result of substantially the same allegations and claimed damages as referenced above. The derivative complaints were consolidated before the same judge as the putative shareholder class action lawsuit under the caption In re Hercules Capital, Inc. Stockholder Derivative Litigation, No. 5:26-cv-03213 (N.D. Cal.). On July 17, 2026, the parties filed a stipulation to stay the derivative action pending resolution of the Hunter litigation discussed above, which the Court granted on July 22, 2026. On August 10, 2026, the parties stipulated to dismissal without prejudice of the derivative action, which the Court granted on August 11, 2026.