Trinity Capital Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Trinity Capital Inc. filed its 2023 10-K, detailing various debt, warrant, and equity investments across technology and other sectors.</b>

AI Summary

Trinity Capital Inc. (TRINI) filed a Annual Report (10-K) with the SEC on March 6, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Includes details on warrant investments in companies like Edeniq, Inc. (exp. 2031) and Astranis Space Technology Corporation (exp. 2033). Details debt securities investments, including Rigetti & Co, Inc. (maturity 2025) with a variable rate (Prime + 7.5%). Lists equity investments such as Axiom Space, Inc. (Series C Preferred). Mentions a secured loan to Ambient Photonics, Inc. with a variable interest rate (Prime + 6.0%).

Why It Matters

For investors and stakeholders tracking Trinity Capital Inc., this filing contains several important signals. The 10-K provides a comprehensive overview of Trinity Capital's investment portfolio, including specific details on maturity dates, interest rates, and expiration dates for its debt and warrant holdings. Information on specific portfolio companies like Rigetti & Co, Inc. and Ambient Photonics, Inc. offers insight into the company's lending and investment strategies within the technology sector.

Risk Assessment

Risk Level: medium — Trinity Capital Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. The complexity of the investments and the nature of venture debt can introduce inherent risks, but the filing itself does not indicate unusual or elevated risks.

Analyst Insight

Review the detailed breakdown of debt and warrant investments to assess the performance and risk profile of Trinity Capital's portfolio companies.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of Report)
• 2024-03-06 — Filing Date (Date Filed)
• November 29, 2031 — Edeniq, Inc. Warrant Expiration (Specific Investment Detail)
• April 13, 2033 — Astranis Space Technology Corporation Warrant Expiration (Specific Investment Detail)
• April 1, 2025 — Rigetti & Co, Inc. Maturity Date (Specific Investment Detail)
• Prime + 7.5% — Rigetti & Co, Inc. Interest Rate (Specific Investment Detail)
• July 01, 2025 — Ambient Photonics, Inc. Maturity Date (Specific Investment Detail)
• Prime + 6.0% — Ambient Photonics, Inc. Interest Rate (Specific Investment Detail)

Key Players & Entities

• Trinity Capital Inc. (company) — Filer name
• Edeniq, Inc. (company) — Portfolio Company Warrant Investments
• Astranis Space Technology Corporation (company) — Portfolio Company Warrant Investments
• Rigetti & Co, Inc. (company) — Portfolio Company Debt Securities
• Ambient Photonics, Inc. (company) — Portfolio Company Debt Securities
• Axiom Space, Inc. (company) — Portfolio Company Equity Investments
• Phoenix (location) — Business Address City
• MD (location) — State of Incorporation

FAQ

Risk Factors

• Investment Portfolio Risks [medium — financial]: The company's investments in debt and equity securities are subject to various risks, including market fluctuations, credit risk, and the risk of loss of principal.
• Economic Conditions [medium — market]: Adverse economic conditions, including inflation and interest rate changes, can negatively impact the performance of portfolio companies and the value of the company's investments.
• Operational Risks [low — operational]: The company faces operational risks related to managing its investment portfolio, including valuation challenges and the potential for errors in financial reporting.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share TRIN Nasdaq Global Select
• $13.26 — aq Global Select Market on that date of $13.26 per share. As of March 5, 2024, the r
• $125.0 m — gregate gross proceeds of approximately $125.0 million, inclusive of an over-allotment o
• $125.0 million — k Offering, the "Private Offerings") of $125.0 million in aggregate principal amount of our un
• $137.7 million — or an aggregate amount of approximately $137.7 million and paid approximately $108.7 million i
• $108.7 million — y $137.7 million and paid approximately $108.7 million in cash to the Legacy Funds' investors,
• $10.0 m — ings for an aggregate purchase price of $10.0 million, which was comprised of 533,332 s
• $8.0 m — ur common stock, totaling approximately $8.0 million, and approximately $2.0 million i
• $2.0 million — imately $8.0 million, and approximately $2.0 million in cash. In connection with the acquisi
• $3.5 million — uch equity interests, we also assumed a $3.5 million severance related liability with respec
• $0 — 1 shares of our common stock, par value $0.001, inclusive of an over-allotment opt
• $300 million — securing lending in conjunction with a $300 million credit agreement, as amended, with KeyB
• $100 million — s and expected annual revenues of up to $100 million. These companies typically are private
• $5 million — uipment financings generally range from $5 million to $50 million, and we generally limit
• $50 m — ings generally range from $5 million to $50 million, and we generally limit each loan

Filing Documents

• trin-20231231.htm (10-K) — 18772KB
• trin-ex4_12.htm (EX-4.12) — 51KB
• trin-ex10_08.htm (EX-10.08) — 1852KB
• trin-ex23_1.htm (EX-23.1) — 3KB
• trin-ex31_1.htm (EX-31.1) — 15KB
• trin-ex31_2.htm (EX-31.2) — 15KB
• trin-ex32_1.htm (EX-32.1) — 8KB
• trin-ex32_2.htm (EX-32.2) — 8KB
• trin-ex97_1.htm (EX-97.1) — 52KB
• img121367592_0.jpg (GRAPHIC) — 39KB
• img121367592_1.jpg (GRAPHIC) — 85KB
• img121367592_2.jpg (GRAPHIC) — 66KB
• img121367592_3.jpg (GRAPHIC) — 344KB
• img121367592_4.jpg (GRAPHIC) — 13KB
• 0000950170-24-026865.txt (&nbsp;) — 62019KB
• trin-20231231.xsd (EX-101.SCH) — 2023KB
• trin-20231231_htm.xml (XML) — 15860KB

Business

Business 6 Item 1A

Risk Factors

Risk Factors 22 Item 1B Unresolved Staff Comments 66 Item 1C Cybersecurity 66 Item 2

Properties

Properties 66 Item 3

Legal Proceedings

Legal Proceedings 66 Item 4 Mine Safety Disclosures 67 PART II OTHER INFORMATION 68 Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 68 Item 6 [Reserved] 71 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 72 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 85 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 87 Note 1 Organization and Basis of Presentation 142 Note 2 Summary of Significant Accounting Policies 144 Note 3 Investments 150 Note 4 Fair Value of Financial Instruments 153 Note 5 Borrowings 160 Note 6 Commitments and Contingencies 166 Note 7 Stockholder's Equity 167 Note 8 Equity Incentive Plans 170 Note 9 Earnings Per Share 172 Note 10 Income Taxes 173 Note 11 Financial Highlights 175 Note 12 Related Party Transactions 178 Note 13 Recent Accounting Pronouncements 178 Note 14 Subsequent Events 179 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 179 Item 9A

Controls and Procedures

Controls and Procedures 179 Item 9B Other Information 180 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 181 PART III 182 Item 10 Directors, Executive Officers and Corporate Governance 182 Item 11

Executive Compensation

Executive Compensation 182 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 182 Item 13 Certain Relationships and Related Transactions, and Director Independence 182 Item 14 Principal Accountant Fees and Services 182 PART IV 183 Item 15 Exhibits and Financial Statement Schedules 183

SIGNATURES

SIGNATURES 186 3 Table of Contents Cautionary Note Regarding Forward-Looking Statements This annual report on Form 10-K contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors discussed under Item 1A. "Risk Factors" of Part I of this annual report on Form 10-K, including, but not limited to, the following: our limited operating history as a business development company ("BDC"); our future operating results; our dependence upon our management team and key investment professionals; our ability to manage our business and future growth; risks related to investments in growth-stage companies, other venture capital-backed companies and generally U.S. companies; the ability of our portfolio companies to achieve their objectives, including due to the impact of supply chain disruptions and the interest rate and inflation rate environments; the use of leverage; risks related to the uncertainty of the value of our portfolio investments; changes in political, economic or industry con

Business

Item 1. Business Organization Trinity Capital Inc. ("Trinity Capital"), incorporated in Maryland on August 12, 2019, is an internally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). Because we are internally managed, all of our executive officers and employees are employed by Trinity Capital. Therefore, we do not pay any external investment advisory fees, but instead directly incur the operating costs associated with employing investment and portfolio management professionals. We have elected to be treated, currently qualify and intend to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes. In order to maintain our treatment as a RIC, we are generally required to distribute at least annually to our stockholders at least the sum of 90% of our investment company taxable income (which generally includes our net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of our net tax-exempt income (if any). We generally will not be subject to U.S. federal income tax on these distributed amounts but will pay U.S. federal income tax at corporate rates tax on any retained amounts. On January 16, 2020, we completed a private equity offering (the "Private Common Stock Offering") of shares of our common stock, pursuant to which we issued and sold 8,333,333 shares of our common stock for total aggregate gross proceeds of approximately $125.0 million, inclusive of an over-allotment option that was exercised in full on January 29, 2020. Concurrent with the closing of the Private Common Stock Offering, we completed a private debt offering (the "144A Note Offering" and together with the Private Common Stock Offering,

View Full Filing

View this 10-K filing on SEC EDGAR