Hercules Capital
HERCULES TECHNOLOGY GROWTH CAPITAL INC (Form: 10-Q, Received: 08/02/2012 16:32:20)
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2012

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

Commission File Number: 814-00702

 

 

HERCULES TECHNOLOGY GROWTH

CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Maryland   743113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

Identification No.)

 

400 Hamilton Ave., Suite 310

Palo Alto, California

  94301
(Address of Principal Executive Offices)   (Zip Code)

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

 

 

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 periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x     No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes   ¨     No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer   ¨       Accelerated Filer   x
Non-Accelerated Filer   ¨       Smaller Reporting Company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ¨     No   x

On August 1, 2012, there were 49,748,903 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

     3   

Item 1.

   Consolidated Financial Statements      3   
   Consolidated Statement of Assets and Liabilities as of June 30, 2012 (unaudited) and December 31, 2011      3   
   Consolidated Schedule of Investments as of June 30, 2012 (unaudited)      4   
   Consolidated Schedule of Investments as of December 31, 2011      20   
  

Consolidated Statement of Operations for the three and six month periods ended June 30, 2012 and 2011 (unaudited)

     34   
  

Consolidated Statement of Changes in Net Assets for the six month periods ended June 30, 2012 and 2011 (unaudited)

     35   
   Consolidated Statement of Cash Flows for the six-month periods ended June 30, 2012 and 2011 (unaudited)      36   
   Notes to Consolidated Financial Statements (unaudited)      37   

Item 2.

   Management’s Discussion and Analysis of Financial Condition and Results of Operations      55   

Item 3.

   Quantitative and Qualitative Disclosures About Market Risk      82   

Item 4.

   Controls and Procedures      83   

PART II. OTHER INFORMATION

     84   

Item 1.

   Legal Proceedings      84   

Item 1A.

   Risk Factors      84   

Item 2.

   Unregistered Sales of Equity Securities and Use of Proceeds      91   

Item 3.

   Defaults Upon Senior Securities      91   

Item 4.

   Mine Safety Disclosures      91   

Item 5.

   Other Information      91   

Item 6.

   Exhibits      91   
SIGNATURES      92   

 

2


Table of Contents

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Technology Growth Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts unless the context otherwise requires.

 

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)

 

     June 30,
2012
(unaudited)
    December 31,
2011
 

Assets

    

Investments:

    

Non-control/Non-affiliate investments (cost of $724,952 and $642,038, respectively)

   $ 715,447      $ 651,843   

Affiliate investments (cost of $8,065 and $3,236, respectively)

     7,197        —     

Control investments (cost of $10,696 and $11,266, respectively)

     169        1,027   
  

 

 

   

 

 

 

Total investments, at value (cost of $743,713 and $656,540, respectively)

     722,813        652,870   

Cash and cash equivalents

     56,140        64,474   

Interest receivable

     7,111        5,820   

Other assets

     15,808        24,230   
  

 

 

   

 

 

 

Total assets

   $ 801,872      $ 747,394   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable and accrued liabilities

   $ 9,317      $ 10,813   

Wells Fargo Loan

     3,130        10,187   

2019 Notes

     43,000        —     

Long-term Liabilities (Convertible Debt)

     70,894        70,353   

Long-term SBA Debentures

     200,750        225,000   
  

 

 

   

 

 

 

Total liabilities

     327,091        316,353   

Commitments and Contingencies (Note 10)

    

Net assets consist of:

    

Common stock, par value

     50        44   

Capital in excess of par value

     534,165        484,244   

Unrealized depreciation on investments

     (21,102     (3,431

Accumulated realized losses on investments

     (31,902     (43,042

Distributions in excess of investment income

     (6,430     (6,774

Total net assets

     474,781        431,041   
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 801,872      $ 747,394   
  

 

 

   

 

 

 

Shares of common stock outstanding ($0.001 par value, 100,000,000 authorized)

     49,743        43,853   

Net asset value per share

   $ 9.54      $ 9.83   

See notes to consolidated financial statements (unaudited)

 

3


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Anthera Pharmaceuticals Inc. (3)

   Drug Discovery & Development   

Senior Debt

Matures December 2014

Interest rate Prime + 7.30% or

Floor rate of 10.55%

      $ 25,000       $ 24,859       $ 24,005   

Aveo Pharmaceuticals, Inc. (3)

   Drug Discovery & Development   

Senior Debt

Matures September 2015

Interest rate Prime + 7.15% or

Floor rate of 11.90%

      $ 26,500         26,500         27,030   

Cempra, Inc. (3)

   Drug Discovery & Development   

Senior Debt

Matures December 2015

Interest rate Prime + 6.30% or

Floor rate of 9.55%

      $ 10,000         9,791         9,432   

Chroma Therapeutics, Ltd. (5) (10)

   Drug Discovery & Development   

Senior Debt

Matures November 2013

Interest rate Prime + 7.75% or

Floor rate of 12.00%

      $ 5,724         6,262         6,319   

Concert Pharmaceuticals, Inc. (4)

   Drug Discovery & Development   

Senior Debt

Matures October 2015

Interest rate Prime + 3.25% or

Floor rate of 8.50%

      $ 20,000         19,522         18,072   

Dicerna Pharmaceuticals, Inc.

   Drug Discovery & Development   

Senior Debt

Matures January 2015

Interest rate Prime + 5.75% or

Floor rate of 10.15%

      $ 11,081         10,834         10,607   

Insmed, Incorporated (3)

   Drug Discovery & Development   

Senior Debt

Matures January 2016

Interest rate Prime + 4.75% or

Floor rate of 9.25%

      $ 10,000         9,593         9,593   

NeurogesX, Inc. (3)

   Drug Discovery & Development   

Senior Debt

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

      $ 15,000         14,825         14,430   

NextWave Pharmaceuticals, Inc. (4)

   Drug Discovery & Development   

Senior Debt

Matures June 2015

Interest rate Prime + 4.30% or

Floor rate of 9.55%

      $ 6,000         5,960         5,751   

Paratek, Pharmaceuticals, Inc.

   Drug Discovery & Development   

Senior Debt (9)

Matures upon liquidation

Interest rate Fixed 10.00%

      $ 45         45         45   
              

 

 

    

 

 

 

Total Debt Drug Discovery & Development (26.39%)*

   Beginning September 2012            128,191         125,284   
              

 

 

    

 

 

 

See notes to consolidated financial statements (unaudited)

 

4


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Bridgewave Communications

   Communications & Networking   

Senior Debt

Matures March 2016

Interest rate Prime + 8.75% or

Floor rate of 12.00%

      $ 7,500       $ 6,879       $ 6,879   

OpenPeak, Inc. (4)

   Communications & Networking   

Senior Debt

Matures July 2015

Interest rate Prime + 8.75%

      $ 15,000         14,589         14,589   

Pac-West Telecomm, Inc.

   Communications & Networking   

Senior Debt

Matures October 2013

Interest rate Prime + 7.50% or

Floor rate of 12.00%

      $ 3,771         3,678         3,627   

PeerApp, Inc. (4)

   Communications & Networking   

Senior Debt

Matures April 2013

Interest rate Prime + 7.50% or

Floor rate of 11.50%

      $ 1,157         1,226         1,225   

PointOne, Inc.

   Communications & Networking   

Senior Debt

Matures April 2015

Interest rate Libor + 9.00% or

Floor rate of 11.50%

      $ 7,533         7,378         7,212   
     

Senior Debt

Matures September 2015

Interest rate Libor + 9.00% or

Floor rate of 11.50%

      $ 366         360         347   
              

 

 

    

 

 

 

Total PointOne, Inc.

                 7,738         7,559   
              

 

 

    

 

 

 

Total Debt Communications & Networking (7.14%)*

           34,110         33,879   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

5


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Box.net, Inc. (4)

   Software   

Senior Debt

Matures March 2015

Interest rate Prime + 3.75% or

Floor rate of 7.50%

      $ 10,000       $ 9,880       $ 9,295   
     

Senior Debt

Matures July 2014

Interest rate Prime + 5.25% or

Floor rate of 8.50%

      $ 1,310         1,352         1,326   
     

Senior Debt

Matures July 2016

Interest rate Prime + 5.13% or

Floor rate of 8.88%

      $ 20,000         19,999         20,000   
              

 

 

    

 

 

 

Total Box.net, Inc.

                 31,231         30,621   

Caplinked

   Software   

Senior Debt (9)

Matures May 2015

Interest rate Fixed 5.00%

      $ 50         50         50   

Central Desktop, Inc.

   Software   

Senior Debt

Matures April 2014

Interest rate Prime + 6.75% or

Floor rate of 10.50%

      $ 2,420         2,353         2,353   

Clickfox, Inc.

   Software   

Senior Debt

Matures July 2013

Interest rate Prime + 6.00% or

Floor rate of 11.25%

      $ 2,817         2,780         2,775   
     

Senior Debt

Matures December 2012

Interest rate Fixed 10.00%

      $ 3,000         3,000         2,903   
              

 

 

    

 

 

 

Total Clickfox, Inc.

                 5,780         5,678   

Hillcrest Laboratories, Inc

     

Senior Debt

Matures July 2015

Interest rate Prime + 7.50% or

Floor rate of 10.75%

      $ 4,000         3,896         3,896   

Kxen, Inc. (4)

   Software   

Senior Debt

Matures January 2015

Interest rate Prime + 5.08% or

Floor rate of 8.33%

      $ 2,838         2,835         2,692   

Tada Innovations, Inc.

   Software   

Senior Debt (9)

Matures August 2012

Interest rate Fixed 8.00%

      $ 100         99         99   

Tectura

   Software   

Revolving Line of Credit

Matures July 2013

Interest rate Fixed 11.00%

      $ 17,064         18,162         18,162   
     

Senior Debt

Matures December 2014

Interest rate Fixed 13.00%

      $ 6,978         6,865         6,705   
     

Senior Debt

Matures April 2013

Interest rate Fixed 13.00%

      $ 1,607         1,571         1,570   
              

 

 

    

 

 

 

Total Tectura

                 26,598         26,437   

White Sky, Inc.

   Software   

Senior Debt

Matures June 2014

Interest rate Prime + 7.00% or

Floor rate of 10.25%

      $ 1,164         1,134         1,134   
              

 

 

    

 

 

 

Total Debt Software (15.37%)*

                 73,976         72,960   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

6


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Maxvision Holding, LLC. (7)(8)

   Electronics & Computer Hardware   

Senior Debt

Matures December 2013

Interest rate Prime + 8.25% or

Floor rate of 12.00%, PIK

interest 5.00%

      $ 4,002       $ 3,732       $ 169   
     

Senior Debt

Matures December 2013

Interest rate Prime + 6.25% or

Floor rate of 10.00%, PIK

interest 2.00%

      $ 2,180         2,448         —     
     

Revolving Line of Credit

Matures December 2013

Interest rate Prime + 6.25% or

Floor rate of 10.00%

      $ 852         935         —     
              

 

 

    

 

 

 

Total Maxvision Holding, LLC

                 7,115         169   
              

 

 

    

 

 

 

Total Debt Electronics & Computer Hardware (0.04%)*

           7,115         169   
              

 

 

    

 

 

 

Althea Technologies, Inc.

   Specialty Pharmaceuticals   

Senior Debt

Matures October 2013

Interest rate Prime + 7.70% or

Floor rate of 10.95%

      $ 9,047         9,115         9,267   

Quatrx Pharmaceuticals Company

   Specialty Pharmaceuticals   

Senior Debt (9)

Matures March 2014

Interest rate Fixed 8.00%

      $ 1,888         1,888         2,252   
              

 

 

    

 

 

 

Total Debt Specialty Pharmaceuticals (2.43%)*

           11,003         11,519   
              

 

 

    

 

 

 

Achronix Semiconductor Corporation

   Semiconductors   

Senior Debt

Matures January 2015

Interest rate Prime + 10.60% or

Floor rate of 13.85%

      $ 2,213         2,148         2,209   

Kovio Inc.

   Semiconductors   

Senior Debt

Matures March 2015

Interest rate Prime + 5.50% or

Floor rate of 9.25%

      $ 1,250         1,225         1,150   
     

Senior Debt

Matures March 2015

Interest rate Prime - 3.75% or

Floor rate of 9.75%

      $ 3,000         2,934         2,789   
              

 

 

    

 

 

 

Total Kovio Inc.

                 4,159         3,939   
              

 

 

    

 

 

 

Total Debt Semiconductors (1.29%)*

           6,307         6,148   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

7


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

AcelRX Pharmaceuticals, Inc. (3)

   Drug Delivery   

Senior Debt

Matures December 2014

Interest rate Prime + 3.25% or

Floor rate of 8.50%

      $ 10,000       $ 9,855       $ 9,473   
     

Senior Debt

Matures December 2014

Interest rate Prime + 3.25% or

Floor rate of 8.50%

      $ 10,000         9,855         9,473   
              

 

 

    

 

 

 

Total AcelRX Pharmaceuticals, Inc.

                 19,710         18,946   

Alexza Pharmaceuticals, Inc. (3)(4)

   Drug Delivery   

Senior Debt

Matures October 2013

Interest rate Prime + 6.5% or

Floor rate of 10.75%

      $ 7,849         8,072         8,072   

BIND Biosciences, Inc.

   Drug Delivery   

Senior Debt

Matures July 2014

Interest rate Prime + 7.45% or

Floor rate of 10.70%

      $ 4,259         4,148         4,233   

Intelliject, Inc. (4)

   Drug Delivery   

Senior Debt

Matures September 2015

Interest rate Prime + 5.75% or

Floor rate of 11.00%

      $ 15,000         14,294         14,295   

Revance Therapeutics, Inc.

   Drug Delivery   

Senior Debt

Matures March 2015

Interest rate Prime + 6.60% or

Floor rate of 9.85%

      $ 22,000         21,643         21,078   
              

 

 

    

 

 

 

Total Debt Drug Delivery (14.03%)*

                 67,867         66,624   
              

 

 

    

 

 

 

Gelesis, Inc. (6)

   Therapeutic   

Senior Debt

Matures April 2013

Interest rate Prime + 8.75% or

Floor rate of 12.00%

      $ 3,568         3,809         3,809   

Gynesonics, Inc.

   Therapeutic   

Senior Debt

Matures October 2013

Interest rate Prime + 8.25% or

Floor rate of 11.50%

      $ 4,991         4,905         4,991   
     

Senior Debt (9)

Matures November 2012

Interest rate Fixed 8.00%

      $ 181         181         181   
              

 

 

    

 

 

 

Total Gynesonics, Inc.

                 5,086         5,172   

Oraya Therapeutics, Inc. (4)

   Therapeutic   

Senior Debt

Matures March 2015

Interest rate Prime + 4.75% or

Floor rate of 9.50%

      $ 7,500         7,329         7,265   

Novasys Medical, Inc.

   Therapeutic   

Senior Debt (9)

Matures January 2013

Interest rate Fixed 8.00%

      $ 65         61         62   
              

 

 

    

 

 

 

Total Debt Therapeutic (3.43%)*

                 16,285         16,308   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

8


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Ahhha, Inc.

   Internet Consumer & Business Services   

Senior Debt

Matures January 2015

Interest rate Fixed 10.00%

      $ 350       $ 346       $ 50   

Blurb, Inc.

   Internet Consumer & Business Services   

Senior Debt

Matures December 2015

Interest rate Prime + 5.25% or

Floor rate 8.50%

      $ 8,000         7,624         7,372   

Just.Me

   Internet Consumer & Business Services   

Senior Debt

Matures June 2015

Interest rate Prime + 2.50% or

Floor rate 5.75%

      $ 150         146         146   

NetPlenish

   Internet Consumer & Business Services   

Senior Debt

Matures April 2015

Interest rate Fixed 10.00%

      $ 500         486         486   

Reply! Inc. (4)

   Internet Consumer & Business Services   

Senior Debt

Matures June 2015

Interest rate Prime + 6.875% or

Floor rate of 10.125%

      $ 13,000         12,797         12,411   
   Internet Consumer & Business Services   

Senior Debt

Matures June 2015

Interest rate Prime + 7.25% or

Floor rate of 11.00%

      $ 2,000         1,905         1,905   
              

 

 

    

 

 

 
                 14,702         14,316   

Second Rotation

   Internet Consumer & Business Services   

Senior Debt

Matures August 2015

Interest rate Prime + 6.50% or

Floor rate of 10.25%, PIK

Interest 2.50%

      $ 6,000         5,914         5,914   

Trulia, Inc. (4)

   Internet Consumer & Business Services   

Senior Debt

Matures March 2015

Interest rate Prime + 2.75% or

Floor rate of 6.00%

      $ 5,000         4,903         4,558   
     

Senior Debt

Matures March 2015

Interest rate Prime + 5.50% or

Floor rate of 8.75%

      $ 5,000         4,903         4,740   
              

 

 

    

 

 

 

Total Trulia, Inc.

                 9,806         9,298   

 

See notes to consolidated financial statements (unaudited)

 

9


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Vaultlogix, Inc.

   Internet Consumer & Business Services   

Senior Debt

Matures September 2016

Interest rate LIBOR + 8.50% or

Floor rate of 10.00%, PIK

interest 2.50%

      $ 7,500       $ 7,560       $ 7,560   
     

Senior Debt

Matures September 2015

Interest rate LIBOR + 7.00% or

Floor rate of 8.50%

      $ 11,125         11,013         10,691   
     

Revolving Line of Credit

Matures September 2015

Interest rate Libor + 6.00% or

Floor rate of 7.50%

      $ 300         286         287   
              

 

 

    

 

 

 

Total Vaultlogix, Inc.

                 18,859         18,538   

Votizen

   Internet Consumer & Business Services   

Senior Debt (9)

Matures February 2013

Interest rate Fixed 5.00%

      $ 100         100         100   

Wavemarket, Inc. (4)

   Internet Consumer & Business Services   

Senior Debt

Matures September 2015

Interest rate Prime + 5.75% or

Floor rate of 9.50%

      $ 10,000         9,787         9,786   
              

 

 

    

 

 

 

Total Debt Internet Consumer & Business Services (13.90%) *

           67,770         66,006   
              

 

 

    

 

 

 

Cha Cha Search, Inc.

   Information Services   

Senior Debt

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

      $ 3,000         2,945         2,800   

Eccentex Corporation

   Information Services   

Senior Debt

Matures May 2015

Interest rate Prime + 7.00% or

Floor rate of 10.25%

      $ 1,000         962         962   

InXpo, Inc.

   Information Services   

Senior Debt

Matures March 2014

Interest rate Prime + 7.50% or

Floor rate of 10.75%

      $ 2,550         2,445         2,467   

Jab Wireless, Inc.

   Information Services   

Senior Debt

Matures August 2016

Interest rate Prime + 5.25% or

Floor rate of 6.75%

      $ 21,902         21,635         21,635   

RichRelevance, Inc.

   Information Services   

Senior Debt

Matures January 2015

Interest rate Prime + 3.25% or

Floor rate of 7.50%

      $ 5,000         4,925         4,673   
              

 

 

    

 

 

 

Total Debt Information Services (6.85%) *

                 32,912         32,537   
              

 

 

    

 

 

 

Optiscan Biomedical, Corp.

   Medical Device & Equipment   

Senior Debt (9)

Matures December 2013

Interest rate Prime + 8.20% or

Floor rate of 11.45%

      $ 10,056         10,437         10,437   
              

 

 

    

 

 

 

Total Debt Medical Device & Equipment (2.20%)*

           10,437         10,437   
              

 

 

    

 

 

 

Navidea Biopharmaceuticals, Inc. (pka Neoprobe) (3)

   Diagnostic   

Senior Debt

Matures December 2014

Interest rate Prime + 6.75% or

Floor rate of 10.00%

      $ 7,000         6,822         6,822   

Tethys Bioscience Inc.

   Diagnostic   

Senior Debt

Matures December 2015

Interest rate Prime + 8.40% or

Floor rate of 11.65%

      $ 10,000         9,755         9,755   
              

 

 

    

 

 

 

Total Debt Diagnostic (3.49%) *

                 16,577         16,577   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

10


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

deCODE genetics ehf. (5) (10)

   Biotechnology Tools   

Senior Debt

Matures September 2014

Interest rate Prime + 10.25% or

Floor rate of 13.50%, PIK interest 2.00%

      $ 4,578       $ 4,412       $ 4,331   

Labcyte, Inc.

   Biotechnology Tools   

Senior Debt

Matures May 2013

Interest rate Prime + 8.60% or

Floor rate of 11.85%

      $ 1,613         1,663         1,663   
     

Senior Debt

Matures June 2016

Interest rate Prime + 6.70% or

Floor rate of 9.95%

      $ 5,000         4,809         4,809   
              

 

 

    

 

 

 
                 6,472         6,472   
              

 

 

    

 

 

 

Total Debt Biotechnology Tools (2.28%)*

                 10,884         10,803   
              

 

 

    

 

 

 

ScriptSave (Medical Security Card Company, LLC)

   Healthcare Services, Other   

Senior Debt

Matures February 2016

Interest rate LIBOR + 8.75% or

Floor rate of 11.25%

      $ 17,317         17,053         17,400   

MedCall

   Healthcare Services, Other   

Senior Debt

Matures January 2016

Interest rate 7.79% or

Floor rate of 9.50%

      $ 5,168         5,078         5,078   
     

Senior Debt

Matures January 2016

Interest rate LIBOR + 8.00% or

Floor rate of 10.00%

      $ 4,250         4,170         4,170   
              

 

 

    

 

 

 
                 9,248         9,248   

Pacific Child & Family Associates, LLC

   Healthcare Services, Other   

Senior Debt

Matures January 2015

Interest rate LIBOR + 8.00% or

Floor rate of 10.50%

      $ 3,877         3,904         3,836   
     

Revolving Line of Credit

Matures January 2015

Interest rate LIBOR + 6.50% or

Floor rate of 9.00%

      $ 1,500         1,487         1,411   
     

Senior Debt

Matures January 2015

Interest rate LIBOR + 10.50% or

Floor rate of 13.00%, PIK interest 3.75%

      $ 5,900         6,412         6,589   
              

 

 

    

 

 

 

Total Pacific Child & Family Associates, LLC

                 11,803         11,836   
              

 

 

    

 

 

 

Total Debt Health Services, Other (8.11%) *

                 38,104         38,484   
              

 

 

    

 

 

 

Entrigue Surgical, Inc.

   Surgical Devices   

Senior Debt

Matures December 2014

Interest rate Prime + 5.90% or

Floor rate of 9.65%

      $ 3,000         2,925         2,883   

Transmedics, Inc. (4)

   Surgical Devices   

Senior Debt

Matures February 2014

Interest rate Prime + 9.70% or

Floor rate of 12.95%

      $ 8,375         8,693         8,694   
              

 

 

    

 

 

 

Total Debt Surgical Devices (2.44%)*

                 11,618         11,577   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

11


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Women’s Marketing, Inc.

  

Media/

Content/ Info

  

Senior Debt

Matures May 2016

Interest rate Libor + 9.50% or

Floor rate of 12.00%, PIK interest 3.00%

      $ 9,681       $ 9,820       $ 9,920   
     

Senior Debt

Matures November 2015

Interest rate Libor + 7.50% or

Floor rate of 10.00%

      $ 8,819         8,655         8,653   
     

Senior Debt

Matures November 2015

Interest rate Libor + 7.50% or

Floor rate of 10.00%

      $ 9,043         8,873         8,874   
              

 

 

    

 

 

 

Total Women’s Marketing, Inc.

                 27,348         27,447   

Westwood One Communications

  

Media/Content/

Info

  

Senior Debt

Matures October 2016

Interest rate LIBOR + 6.50% or

Floor rate of 8.00%

      $ 20,831         19,118         19,479   
              

 

 

    

 

 

 

Total Debt Media/Content/Info (9.88%)*

                 46,466         46,926   
              

 

 

    

 

 

 

Alphabet Energy, Inc.

   Clean Tech   

Senior Debt

Matures February 2015

Interest rate Prime + 5.75% or

Floor rate of 9.00%

      $ 513         494         494   

American Superconductor Corporation (3)

   Clean Tech   

Senior Debt

Matures December 2014

Interest rate Prime + 7.25% or

Floor rate of 11.00%

      $ 10,000         9,615         9,615   

BrightSource Energy, Inc.

   Clean Tech   

Senior Debt

Matures November 2012

Interest rate Prime + 7.25% or

Floor rate of 10.50%

      $ 35,000         34,886         34,886   

EcoMotors, Inc.

   Clean Tech   

Senior Debt

Matures February 2014

Interest rate Prime + 6.10% or

Floor rate of 9.35%

      $ 3,837         3,855         3,826   

Enphase Energy, Inc. (3)

   Clean Tech   

Senior Debt

Matures June 2014

Interest rate Prime + 4.40% or

Floor rate of 9.00%

      $ 4,898         4,839         4,670   

Glori Energy, Inc.

   Clean Tech   

Senior Debt

Matures June 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

      $ 4,000         3,863         3,863   

Integrated Photovoltaics, Inc.

   Clean Tech   

Senior Debt

Matures February 2015

Interest rate Prime + 7.38% or

Floor rate of 10.63%

      $ 3,000         2,899         2,839   

Propel Biofuels, Inc.

   Clean Tech   

Senior Debt

Matures September 2013

Interest rate of 11.00%

      $ 963         1,015         964   

SCIenergy, Inc.

   Clean Tech   

Senior Debt

Matures October 2014

Interest rate 6.25%

      $ 202         202         156   
     

Senior Debt

Matures August 2015

Interest rate Prime + 4.90% or

Floor rate of 8.15%

      $ 5,000         4,909         4,507   
              

 

 

    

 

 

 

Total SCIenergy, Inc.

                 5,111         4,663   

 

See notes to consolidated financial statements (unaudited)

 

12


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
     Cost (2)      Value (3)  

Solexel, Inc.

   Clean Tech   

Senior Debt

Matures June 2013

Interest rate Prime + 8.25% or

Floor rate of 11.50%

      $ 5,578       $ 5,547       $ 5,547   
     

Senior Debt

Matures June 2013

Interest rate Prime + 7.25% or

Floor rate of 10.50%

      $ 642         639         639   
              

 

 

    

 

 

 

Total Solexel, Inc.

                 6,186         6,186   

Stion Corporation (4)

   Clean Tech   

Senior Debt

Matures February 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

      $ 9,031         8,824         8,824   
              

 

 

    

 

 

 

Total Debt Clean Tech (17.02%)*

                 81,587         80,830   
              

 

 

    

 

 

 

Total Debt (136.29%)

                 661,209         647,068   
              

 

 

    

 

 

 
Acceleron Pharmaceuticals, Inc.    Drug Discovery & Development    Common Stock Warrants            39         48   
      Preferred Stock Warrants    Series A         69         312   
      Preferred Stock Warrants    Series B         35         58   
              

 

 

    

 

 

 
Total Warrants Acceleron Pharmaceuticals, Inc.                  143         418   
Anthera Pharmaceuticals Inc. (3)    Drug Discovery & Development    Common Stock Warrants            984         94   
Cempra, Inc. (3)    Drug Discovery & Development    Common Stock Warrants            187         113   
Chroma Therapeutics, Ltd. (5) (10)    Drug Discovery & Development    Preferred Stock Warrants    Series D         490         500   
Concert Pharmaceuticals, Inc. (4)    Drug Discovery & Development    Preferred Stock Warrants    Series C         367         119   
Dicerna Pharmaceuticals, Inc.    Drug Discovery & Development    Common Stock Warrants            28         12   
      Preferred Stock Warrants    Series A         236         126   
      Preferred Stock Warrants    Series B         311         159   
              

 

 

    

 

 

 
Total Warrants Dicerna Pharmaceuticals, Inc.                  575         297   
EpiCept Corporation (3)    Drug Discovery & Development    Common Stock Warrants            4         1   
Horizon Pharma, Inc. (3)    Drug Discovery & Development    Preferred Stock Warrants    Series C         231         1   
Insmed, Incorporated (3)    Drug Discovery & Development    Preferred Stock Warrants    Series C         570         568   
Merrimack Pharmaceuticals, Inc. (3)    Drug Discovery & Development    Common Stock Warrants            155         897   
NeurogesX, Inc. (3)    Drug Discovery & Development    Common Stock Warrants            503         220   
NextWave Pharmaceuticals, Inc. (4)    Drug Discovery & Development    Preferred Stock Warrants    Series A-1         126         179   
PolyMedix, Inc. (3)    Drug Discovery & Development    Common Stock Warrants            480         15   
Portola Pharmaceuticals, Inc.    Drug Discovery & Development    Preferred Stock Warrants    Series B         152         198   
              

 

 

    

 

 

 
Total Warrants Drug Discovery & Development (0.76%)*            4,967         3,620   
              

 

 

    

 

 

 
Affinity Videonet, Inc.    Communications & Networking    Preferred Stock Warrants    Series A         102         180   
Bridgewave Communications    Communications & Networking    Preferred Stock Warrants    Series 5         752         740   
IKANO Communications, Inc.    Communications & Networking    Preferred Stock Warrants    Series D         72         —     
Intelepeer, Inc.    Communications & Networking    Preferred Stock Warrants    Series C         102         179   
Neonova Holding Company    Communications & Networking    Preferred Stock Warrants    Series A         94         47   
OpenPeak, Inc. (4)    Communications & Networking    Preferred Stock Warrants    Series E         149         138   
Pac-West Telecomm, Inc.    Communications & Networking    Common Stock Warrants            121         —     
PeerApp, Inc. (4)    Communications & Networking    Preferred Stock Warrants    Series B         61         37   

 

See notes to consolidated financial statements (unaudited)

 

13


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  
Peerless Network, Inc.    Communications & Networking    Preferred Stock Warrants    Series A       $ 95       $ 264   
Ping Identity Corporation    Communications & Networking    Preferred Stock Warrants    Series B         52         130   
PointOne, Inc.    Communications & Networking    Common Stock Warrants            131         14   
Purcell Systems, Inc.    Communications & Networking    Preferred Stock Warrants    Series B         123         115   
Stoke, Inc.    Communications & Networking    Preferred Stock Warrants    Series C         53         134   
      Preferred Stock Warrants    Series D         65         56   
              

 

 

    

 

 

 
Total Stoke, Inc.                  118         190   
              

 

 

    

 

 

 
Total Warrants Communications & Networking (0.43%)*            1,972         2,034   
              

 

 

    

 

 

 

Atrenta, Inc.

   Software    Preferred Stock Warrants    Series C         136         643   
      Preferred Stock Warrants    Series D         95         224   
              

 

 

    

 

 

 

Total Atrenta, Inc.

                 231         867   

Box.net, Inc. (4)

   Software    Preferred Stock Warrants    Series C         117         1,598   
      Preferred Stock Warrants    Series B         72         2,337   
      Preferred Stock Warrants    Series D-1         194         241   
              

 

 

    

 

 

 

Total Box.net, Inc.

                 383         4,176   

Braxton Technologies, LLC.

   Software    Preferred Stock Warrants    Series A         188         —     

Central Desktop, Inc.

   Software    Preferred Stock Warrants    Series B         108         188   

Clickfox, Inc.

   Software    Preferred Stock Warrants    Series B         329         540   

Daegis Inc. (pka Unify Corporation) (3)

   Software    Common Stock Warrants            1,434         19   

Forescout Technologies, Inc.

   Software    Preferred Stock Warrants    Series D         99         155   

HighRoads, Inc.

   Software    Preferred Stock Warrants    Series B         44         9   

Hillcrest Laboratories, Inc.

   Software    Preferred Stock Warrants    Series E         55         25   

Kxen, Inc. (4)

   Software    Preferred Stock Warrants    Series D         47         19   

Rockyou, Inc.

   Software    Preferred Stock Warrants    Series B         117         —     

SugarSync Inc.

   Software    Preferred Stock Warrants    Series CC         78         151   
      Preferred Stock Warrants    Series DD         34         38   
              

 

 

    

 

 

 

Total SugarSync Inc.

                 112         189   

Tada Innovations, Inc.

   Software    Preferred Stock Warrants    Series A         25         30   

Tectura Corporation

   Software    Preferred Stock Warrants    Series B-1         51         14   

White Sky, Inc.

   Software    Preferred Stock Warrants    Series B-2         54         5   

WildTangent, Inc.

   Software    Preferred Stock Warrants    Series 3A         238         100   
              

 

 

    

 

 

 

Total Warrants Software (1.34%)*

                 3,515         6,336   
              

 

 

    

 

 

 

Luminous Devices, Inc.

   Electronics & Computer Hardware    Common Stock Warrants            601         —     

Shocking Technologies, Inc.

   Electronics & Computer Hardware    Preferred Stock Warrants    Series A-1         63         47   
              

 

 

    

 

 

 

Total Warrant Electronics & Computer Hardware (0.01%)*

           664         47   
              

 

 

    

 

 

 

Althea Technologies, Inc.

   Specialty Pharmaceuticals    Preferred Stock Warrants    Series D         309         447   

Pacira Pharmaceuticals, Inc. (3)

   Specialty Pharmaceuticals    Common Stock Warrants            1,086         1,222   

Quatrx Pharmaceuticals Company

   Specialty Pharmaceuticals    Preferred Stock Warrants    Series E         528         —     
              

 

 

    

 

 

 

Total Warrants Specialty Pharmaceuticals (0.35%)*

           1,923         1,669   
              

 

 

    

 

 

 

IPA Holdings, LLC

   Consumer & Business Products    Common Stock Warrants            275         163   

Market Force Information, Inc.

   Consumer & Business Products    Preferred Stock Warrants    Series A         24         139   

Seven Networks, Inc.

   Consumer & Business Products    Preferred Stock Warrants    Series C         174         204   

Wageworks, Inc. (3)

   Consumer & Business Products    Common Stock Warrants            252         1,484   

Wavemarket, Inc. (4)

   Consumer & Business Products    Preferred Stock Warrants    Series E         106         61   
              

 

 

    

 

 

 

Total Warrant Consumer & Business Products (0.43%)*

           831         2,051   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

14


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Achronix Semiconductor Corporation

   Semiconductors    Preferred Stock Warrants    Series D       $ 160       $ 136   

Enpirion, Inc.

   Semiconductors    Preferred Stock Warrants    Series D         157         —     

iWatt, Inc.

   Semiconductors    Preferred Stock Warrants    Series C         45         23   
      Preferred Stock Warrants    Series D         583         475   
              

 

 

    

 

 

 

Total iWatt, Inc.

                 628         498   

Kovio Inc.

   Semiconductors    Preferred Stock Warrants    Series B         92         —     

Quartics, Inc.

   Semiconductors    Preferred Stock Warrants    Series C         53         —     
              

 

 

    

 

 

 

Total Warrants Semiconductors (0.13%)*

                 1,090         634   
              

 

 

    

 

 

 

AcelRX Pharmaceuticals, Inc. (3)

   Drug Delivery    Common Stock Warrants            357         285   

Alexza Pharmaceuticals, Inc. (3)(4)

   Drug Delivery    Common Stock Warrants            645         19   

BIND Biosciences, Inc.

   Drug Delivery    Preferred Stock Warrants    Series C-1         291         485   

Intelliject, Inc. (4)

   Drug Delivery    Preferred Stock Warrants    Series B         594         602   

Merrion Pharma, Plc. (3)(5) (10)

   Drug Delivery    Common Stock Warrants            210         100   

Revance Therapeutics, Inc.

   Drug Delivery    Preferred Stock Warrants    Series D         557         473   

Transcept Pharmaceuticals, Inc. (3)

   Drug Delivery    Common Stock Warrants            87         93   
              

 

 

    

 

 

 

Total Warrant Drug Delivery (0.43%)*

                 2,741         2,057   
              

 

 

    

 

 

 

EKOS Corporation

   Therapeutic    Preferred Stock Warrants    Series C         327         —     

Gelesis, Inc. (6)

   Therapeutic    Preferred Stock Warrants    Series A-1         78         110   

Light Science Oncology, Inc.

   Therapeutic    Preferred Stock Warrants    Series B         99         —     

Novasys Medical, Inc.

   Therapeutic    Preferred Stock Warrants    Series D         131         16   

Oraya Therapeutics, Inc. (4)

   Therapeutic    Preferred Stock Warrants    Series C         550         221   
              

 

 

    

 

 

 

Total Warrants Therapeutic (0.07%)*

                 1,185         347   
              

 

 

    

 

 

 

Blurb, Inc.

   Internet Consumer & Business Services    Preferred Stock Warrants    Series B         323         655   
      Preferred Stock Warrants    Series C         636         411   
              

 

 

    

 

 

 

Total Blurb, Inc.

                 959         1,066   

Cozi Group, Inc.

   Internet Consumer & Business Services    Preferred Stock Warrants    Series A         147         —     

Invoke Solutions, Inc.

   Internet Consumer & Business Services    Common Stock Warrants            82         —     

Just.Me

   Internet Consumer & Business Services    Preferred Stock Warrants    Series A         20         25   

Prism Education Group, Inc.

   Internet Consumer & Business Services    Preferred Stock Warrants    Series B         43         —     

RazorGator Interactive Group, Inc.

   Internet Consumer & Business Services    Preferred Stock Warrants    Series C         1,224         —     

Reply! Inc. (4)

   Internet Consumer & Business Services    Preferred Stock Warrants    Series B         320         598   

Second Rotation

   Internet Consumer & Business Services    Preferred Stock Warrants    Series D         57         30   

Trulia, Inc. (4)

   Internet Consumer & Business Services    Preferred Stock Warrants    Series D         188         763   
              

 

 

    

 

 

 

Total Warrants Internet Consumer & Business Services (0.52%)*

           3,040         2,482   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

15


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Buzznet, Inc.

   Information Services    Preferred Stock Warrants    Series B       $ 9       $ —     

Cha Cha Search, Inc.

   Information Services    Preferred Stock Warrants   

Series F

        58         1   

Eccentex Corporation

   Information Services    Preferred Stock Warrants    Series A         31         3   

Intelligent Beauty, Inc.

   Information Services    Preferred Stock Warrants    Series B         230         467   

InXpo, Inc.

   Information Services    Preferred Stock Warrants    Series C         98         46   
      Preferred Stock Warrants    Series C-1         17         17   
              

 

 

    

 

 

 

Total InXpo, Inc.

                 115         63   

Magi.com (pka Hi5 Networks, Inc.)

   Information Services    Preferred Stock Warrants    Series B         213         —     

Jab Wireless, Inc.

   Information Services    Preferred Stock Warrants    Series A         265         355   

RichRelevance, Inc.

   Information Services    Preferred Stock Warrants    Series D         98         32   

Solutionary, Inc.

   Information Services    Preferred Stock Warrants    Series E         96         2   

Zeta Interactive Corporation

   Information Services    Preferred Stock Warrants    Series A         172         —     
              

 

 

    

 

 

 

Total Warrants Information Services (0.19%) *

           1,287         923   
              

 

 

    

 

 

 

Optiscan Biomedical, Corp.

   Medical Device & Equipment    Preferred Stock Warrants    Series B         680         388   
      Preferred Stock Warrants    Series C         389         357   
              

 

 

    

 

 

 

Total Optiscan Biomedical, Corp.

                 1,069         745   
              

 

 

    

 

 

 

Total Warrants Medical Device & Equipment (0.16%)*

           1,069         745   
              

 

 

    

 

 

 

Navidea Biopharmaceuticals, Inc. (pka Neoprobe) (3)

   Diagnostic    Common Stock Warrants            245         563   

Tethys Bioscience, Inc.

   Diagnostic    Preferred Stock Warrants    Series E         147         147   
              

 

 

    

 

 

 

Total Warrants Diagnostic (0.15%)

                 392         710   
              

 

 

    

 

 

 

deCODE genetics ehf. (5) (10)

   Biotechnology Tools    Preferred Stock Warrants    Series A-2         305         378   

Labcyte, Inc.

   Biotechnology Tools    Preferred Stock Warrants    Series C         323         401   

NuGEN Technologies, Inc.

   Biotechnology Tools    Preferred Stock Warrants    Series B         45         135   
      Preferred Stock Warrants    Series C         33         7   
              

 

 

    

 

 

 

Total NuGEN Technologies, Inc.

                 78         142   
              

 

 

    

 

 

 

Total Warrants Biotechnology Tools (0.20%)*

           706         921   
              

 

 

    

 

 

 

Entrigue Surgical, Inc.

   Surgical Devices    Preferred Stock Warrants    Series B         87         39   

Transmedics, Inc. (4)

   Surgical Devices    Preferred Stock Warrants    Series B         225         —     

Gynesonics, Inc.

   Surgical Devices    Preferred Stock Warrants    Series A         18         7   
      Preferred Stock Warrants    Series C         365         273   
              

 

 

    

 

 

 
                 383         280   
              

 

 

    

 

 

 

Total Warrants Surgical Devices (0.07%)*

                 695         319   
              

 

 

    

 

 

 

Everyday Health, Inc. (pka Waterfront Media, Inc.)

   Media/Content/ Info    Preferred Stock Warrants    Series C         60         245   

Glam Media, Inc.

   Media/Content/ Info    Preferred Stock Warrants    Series D         482         —     
              

 

 

    

 

 

 

Total Warrants Media/Content/Info (0.05%)*

           542         245   
              

 

 

    

 

 

 

Alphabet Energy, Inc.

   Clean Tech    Preferred Stock Warrants    Series A         32         75   

American Supercondutor Corporation (3)

   Clean Tech    Common Stock Warrants            245         300   

BrightSource Energy, Inc.

   Clean Tech    Preferred Stock Warrants    Series D         675         601   

Calera, Inc.

   Clean Tech    Preferred Stock Warrants    Series C         513         173   

EcoMotors, Inc.

   Clean Tech    Preferred Stock Warrants    Series B         308         691   

Enphase Energy, Inc. (3)

   Clean Tech    Common Stock Warrants            102         65   

Glori Energy, Inc.

   Clean Tech    Preferred Stock Warrants    Series C         165         93   

GreatPoint Energy, Inc.

   Clean Tech    Preferred Stock Warrants    Series D-1         548         15   

Integrated Photovoltaics, Inc.

   Clean Tech    Preferred Stock Warrants    Series A-1         82         121   

Lilliputian Systems, Inc.

   Clean Tech    Preferred Stock Warrants    Series C         106         —     
      Common Stock Warrants            49         —     
              

 

 

    

 

 

 

Total Lilliputian Systems, Inc.

                 155         —     

Propel Biofuels, Inc.

   Clean Tech    Preferred Stock Warrants    Series C         211         392   

SCIenergy, Inc. (4)

   Clean Tech    Preferred Stock Warrants    Series C         138         25   

Solexel, Inc.

   Clean Tech    Preferred Stock Warrants    Series B         1,161         110   

Stion Corporation (4)

   Clean Tech    Preferred Stock Warrants    Series E         317         250   

Trilliant, Inc.

   Clean Tech    Preferred Stock Warrants    Series A         161         65   
              

 

 

    

 

 

 

Total Warrants Clean Tech (0.63%)*

                 4,813         2,976   
              

 

 

    

 

 

 

Total Warrants (5.92%)

                 31,432         28,116   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

16


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Aegerion Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Common Stock          $ 150       $ 1,136   

Aveo Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Common Stock            842         2,041   

Dicerna Pharmaceuticals, Inc.

   Drug Discovery & Development    Preferred Stock    Series B         501         357   

Inotek Pharmaceuticals Corp.

   Drug Discovery & Development    Preferred Stock    Series C         1,500         —     

Merrimack Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Common Stock            2,000         3,978   

Paratek Pharmaceuticals, Inc.

   Drug Discovery & Development    Preferred Stock    Series H         1,000         455   
              

 

 

    

 

 

 

Total Equity Drug Discovery & Development (1.68%)*

           5,993         7,967   
              

 

 

    

 

 

 

Acceleron Pharmaceuticals, Inc.

   Drug Delivery    Preferred Stock    Series C         243         186   
      Preferred Stock    Series E         98         158   
      Preferred Stock    Series F         60         70   
      Preferred Stock    Series B         1,000         828   
              

 

 

    

 

 

 

Total Acceleron Pharmaceuticals, Inc.

                 1,401         1,242   

Merrion Pharma, Plc. (3)(5) (10)

   Drug Delivery    Common Stock            8         5   

Transcept Pharmaceuticals, Inc. (3)

   Drug Delivery    Common Stock            500         258   
              

 

 

    

 

 

 

Total Equity Drug Delivery (0.32%)*

                 1,909         1,505   
              

 

 

    

 

 

 

E-band Communications, Corp. (6)

   Communications & Networking    Preferred Stock    Series B         2,000         497   
      Preferred Stock    Series C         372         182   
      Preferred Stock    Series D         508         288   
      Preferred Stock    Series E         374         537   
              

 

 

    

 

 

 

Total E-band Communications, Corp.

                 3,254         1,504   

Neonova Holding Company

   Communications & Networking    Preferred Stock    Series A         250         245   

Peerless Network, Inc.

   Communications & Networking    Preferred Stock    Series A         1,000         2,984   

Stoke, Inc.

   Communications & Networking    Preferred Stock    Series E         500         625   
              

 

 

    

 

 

 

Total Equity Communications & Networking (1.13%)*

           5,004         5,358   
              

 

 

    

 

 

 

Atrenta, Inc.

   Software    Preferred Stock    Series D         250         375   

Box.net, Inc. (4)

   Software    Preferred Stock    Series C         500         3,625   
      Preferred Stock    Series D         500         1,467   
      Preferred Stock    Series D-1         1,000         1,155   
      Preferred Stock    Series D-2         2,001         2,049   
              

 

 

    

 

 

 

Total Box.net, Inc.

                 4,001         8,296   
              

 

 

    

 

 

 

Total Equity Software (1.83%)*

                 4,251         8,671   
              

 

 

    

 

 

 

Maxvision Holding, LLC. (7)(8)

   Electronics & Computer Hardware    Preferred Stock    Series A         3,500         —     
      Preferred Stock    LLC interest         81         —     
              

 

 

    

 

 

 

Total Maxvision Holding, LLC.

                 3,581         —     

Spatial Photonics, Inc.

   Electronics & Computer Hardware    Preferred Stock    Series D         268         —     

Virident Systems

   Electronics & Computer Hardware    Preferred Stock    Series D         5,000         4,987   
              

 

 

    

 

 

 

Total Equity Electronics & Computer Hardware (1.05%)*

           8,849         4,987   
              

 

 

    

 

 

 

Quatrx Pharmaceuticals Company

   Specialty Pharmaceuticals    Preferred Stock    Series E         750         —     
              

 

 

    

 

 

 

Total Equity Specialty Pharmaceuticals (0.00%)*

           750         —     
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

17


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Caivis Acquisition Corporation

   Consumer & Business Products    Common Stock    Series A       $ 880       $ 642   

Facebook, Inc. (3)

   Consumer & Business Products    Common Stock    Series B         9,557         9,145   

IPA Holdings, LLC

   Consumer & Business Products    Preferred Stock    LLC interest         500         530   

Market Force Information, Inc.

   Consumer & Business Products    Preferred Stock    Series B         500         517   

Wageworks, Inc. (3)

   Consumer & Business Products    Common Stock    Series D         250         290   
              

 

 

    

 

 

 

Total Equity Consumer & Business Products (2.34%)*

           11,687         11,124   
              

 

 

    

 

 

 

iWatt, Inc.

   Semiconductors    Preferred Stock    Series E         491         1,234   
              

 

 

    

 

 

 

Total Equity Semiconductors (0.26%)*

                 491         1,234   
              

 

 

    

 

 

 

Gelesis, Inc. (6)

   Therapeutic    Common Stock            —           526   
      Preferred Stock    Series A-1         425         711   
      Preferred Stock    Series A-2         500         537   
              

 

 

    

 

 

 

Total Gelesis, Inc.

                 925         1,774   

Novasys Medical, Inc.

   Therapeutic    Preferred Stock    Series D-1         1,000         808   
              

 

 

    

 

 

 

Total Equity Therapeutic (0.54%)*

                 1,925         2,582   
              

 

 

    

 

 

 

Cozi Group, Inc.

   Internet Consumer & Business Services    Preferred Stock    Series B         179         20   

RazorGator Interactive Group, Inc.

   Internet Consumer & Business Services    Preferred Stock    Series A         1,000         —     
              

 

 

    

 

 

 

Total Equity Internet Consumer & Business Services (0.00%) *

           1,179         20   
              

 

 

    

 

 

 

Buzznet, Inc.

   Information Services    Preferred Stock    Series C         250         —     

Good Technologies, Inc. (pka Visto Corporation)

   Information Services    Common Stock            604         100   

Magi.com (pka Hi5 Networks, Inc.)

   Information Services    Preferred Stock    Series C         250         247   

Solutionary, Inc.

   Information Services    Preferred Stock    Series A-1         17         177   
      Preferred Stock    Series A-2         326         74   
              

 

 

    

 

 

 

Total Solutionary, Inc.

                 343         251   

Zeta Interactive Corporation

   Information Services    Preferred Stock    Series A         500         —     
              

 

 

    

 

 

 

Total Equity Information Services (0.13%) *

                 1,947         598   
              

 

 

    

 

 

 

Optiscan Biomedical, Corp.

   Medical Device & Equipment    Preferred Stock    Series B         3,000         1,502   
      Preferred Stock    Series C         655         608   
              

 

 

    

 

 

 

Total Optiscan Biomedical, Corp.

                 3,655         2,110   
              

 

 

    

 

 

 

Total Equity Medical Device & Equipment (0.44%)*

           3,655         2,110   
              

 

 

    

 

 

 

NuGEN Technologies, Inc.

   Biotechnology Tools    Preferred Stock    Series C         500         504   
              

 

 

    

 

 

 

Total Equity Biotechnology Tools (0.11%)*

           500         504   
              

 

 

    

 

 

 

Transmedics, Inc. (4)

   Surgical Devices    Preferred Stock    Series C         300         —     
      Preferred Stock    Series B         1,100         —     
              

 

 

    

 

 

 

Total Transmedics, Inc.

                 1,400         —     

Gynesonics, Inc.

   Surgical Devices    Preferred Stock    Series B         250         150   
      Preferred Stock    Series C         282         239   
              

 

 

    

 

 

 

Total Gynesonics, Inc.

                 532         389   
              

 

 

    

 

 

 

Total Equity Surgical Devices (0.08%)*

           1,932         389   
              

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

18


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

  

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Everyday Health, Inc. (pka Waterfront Media, Inc.)

  

Media/

Content/ Info

   Preferred Stock    Series D       $ 1,000       $ 580   
              

 

 

    

 

 

 

Total Equity Media/Content/Info (0.12%)*

                 1,000         580   
              

 

 

    

 

 

 

Total Equity (10.03%)

                 51,072         47,629   
              

 

 

    

 

 

 

Total Investments (152.24%)

               $ 743,713       $ 722,813   
              

 

 

    

 

 

 

 

* Value as a percent of net assets
(1) Preferred and common stock, warrants, and equity interests are generally non-income producing.
(2) Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $17,539, $35,500 and $17,961 respectively. The tax cost of investments is $748,632.
(3) Except for warrants in 18 publicly traded companies and common stock in seven publicly traded companies, all investments are restricted at June 30, 2012 and were valued at fair value as determined in good faith by the Board of Directors. No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.
(4) Debt investments of this portfolio company have been pledged as collateral under the Wells Facility.
(5) Non-U.S. company or the company’s principal place of business is outside the United States.
(6) Affiliate investment that is defined under the Investment Company Act of 1940 as companies in which the Company owns at least 5% but not more than 25% of the voting securities of the company.
(7) Control investment that is defined under the Investment Company Act of 1940 as companies in which the Company owns at least 25% of the voting securities of the company, or has greater than 50% representation on its board.
(8) Debt is on non-accrual status at June 30, 2012, and is therefore considered non-income producing.
(9) Convertible Senior Debt
(10) Indicates assets that the Company deems not “qualifying assets” under section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.

 

See notes to consolidated financial statements (unaudited)

 

19


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2011

(dollars in thousands)

 

Portfolio Company

   Industry   

Type of Investment (1)

   Principal
Amount
     Cost (2)      Value (3)  

Anthera Pharmaceuticals Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures September 2014
Interest rate Prime + 7.3% or
Floor rate of 10.55%

   $ 25,000       $ 24,433       $ 25,183   

Aveo Pharmaceuticals, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures June 2014
Interest rate Prime + 7.15% or
Floor rate of 11.9%

   $ 25,000         25,360         26,110   

Dicerna Pharmaceuticals, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures January 2015
Interest rate Prime + 4.40% or
Floor rate of 10.15%

   $ 12,000         11,665         11,665   

NextWave Pharmaceuticals, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures June 2015
Interest rate Prime + 4.3% or
Floor rate of 9.55%

   $ 6,000         5,925         5,926   

Concert Pharmaceuticals

   Drug Discovery
& Development
  

Senior Debt

Matures July 2015
Interest rate Prime + 3.25% or
Floor rate of 8.25%

   $ 7,500         7,350         7,350   

PolyMedix, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures September 2013
Interest rate Prime + 7.1% or
Floor rate of 12.35%

   $ 6,763         6,594         6,729   

Aegerion Pharmaceuticals, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures September 2014
Interest rate Prime + 5.65% or
Floor rate of 10.40%

   $ 10,000         10,070         10,070   

Chroma Therapeutics, Ltd. (5)

   Drug Discovery
& Development
  

Senior Debt

Matures September 2013
Interest rate Prime + 7.75% or
Floor rate of 12.00%

   $ 7,633         7,958         7,879   

NeurogesX, Inc.

   Drug Discovery
& Development
  

Senior Debt

Matures February 2015
Interest rate Prime + 6.25% or
Floor rate of 9.50%

   $ 15,000         14,558         14,558   
           

 

 

    

 

 

 

Total Debt Drug Discovery & Development (26.79%)*

  

     113,913         115,470   
           

 

 

    

 

 

 

E-band Communications, Corp. (6)

   Communications
& Networking
  

Convertible Senior
Debt Due on demand
Interest rate Fixed 6.00%

   $ 356         356         —     

Intelepeer, Inc.

   Communications
& Networking
  

Senior Debt
Matures May 2013
Interest rate Prime + 8.12% or
Floor rate of 11.37%

   $ 6,524         6,346         6,476   
     

Senior Debt

Matures May 2012

Interest rate Prime + 4.25%

   $ 1,100         1,100         1,070   
           

 

 

    

 

 

 

Total Intelepeer, Inc.

              7,446         7,546   

Ahhha, Inc.

   Communications
& Networking
  

Senior Debt

Matures January 2015

Interest rate Fixed 10.00%

   $ 350         345         345   

Pac-West Telecomm, Inc.

   Communications
& Networking
  

Senior Debt
Matures October 2014
Interest rate Prime + 7.50% or
Floor rate of 12.00%

   $ 4,369         4,196         4,196   

PeerApp, Inc.

   Communications
& Networking
  

Senior Debt
Matures April 2013
Interest rate Prime + 7.5% or
Floor rate of 11.50%

   $ 1,776         1,814         1,835   

PointOne, Inc.

   Communications
& Networking
  

Senior Debt
Matures April 2013
Interest rate Libor + 9.0% or
Floor rate of 11.50%

   $ 8,308         8,107         8,100   

Stoke, Inc (4)

   Communications
& Networking
  

Senior Debt
Matures May 2013
Interest rate Prime + 7.0% or
Floor rate of 10.25%

   $ 2,627         2,586         2,612   
           

 

 

    

 

 

 

Total Debt Communications & Networking (5.71%)*

              24,850         24,634   
           

 

 

    

 

 

 

 

See notes to consolidated financial statements.

 

20


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2011

(dollars in thousands)

 

Portfolio Company

   Industry   

Type of Investment (1)

   Principal
Amount
     Cost (2)      Value (3)  

Central Desktop, Inc.

   Software   

Senior Debt
Matures April 2014
Interest rate Prime + 6.75% or
Floor rate of 10.50%

   $ 3,000       $ 2,894       $ 2,954   

Clickfox, Inc.

   Software   

Senior Debt
Matures July 2013
Interest rate Prime + 6.00% or
Floor rate of 11.25%

   $ 3,999         3,920         4,000   

Kxen, Inc.

   Software   

Senior Debt
Matures January 2015
Interest rate Prime + 5.08% or
Floor rate of 8.33%

   $ 3,000         2,958         2,858   

RichRelevance, Inc.

   Software   

Senior Debt
Matures January 2015
Interest rate Prime + 3.25% or
Floor rate of 7.50%

   $ 5,000         4,879         4,879   

Blurb, Inc

   Software   

Senior Debt
Matures December 2015
Interest rate Prime +5.25% or
Floor rate 8.5%

   $ 5,000         4,873         4,873   

SugarSync Inc.

   Software   

Senior Debt
Matures April 2015
Interest rate Prime + 4.50% or
Floor rate of 8.25%

   $ 2,000         1,950         1,950   

White Sky, Inc.

   Software   

Senior Debt
Matures June 2014
Interest rate Prime + 7.00% or
Floor rate of 10.25%

   $ 1,418         1,357         1,400   

Tada Innovations, Inc.

   Software   

Senior Debt
Matures August 2012
Interest rate Prime + 3.25% or
Floor rate of 6.50%

   $ 100         90         90   
           

 

 

    

 

 

 

Total Debt Software (5.34%)*

        22,921         23,004   
           

 

 

    

 

 

 

 

See notes to consolidated financial statements.

 

21


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2011

(dollars in thousands)

 

Portfolio Company

   Industry   

Type of Investment (1)

   Principal
Amount
     Cost (2)      Value (3)  

Maxvision Holding, LLC. (7)

   Electronics &
Computer Hardware
  

Senior Debt
Matures December 2013
Interest rate Prime + 8.25% or
Floor rate of 12.00%, PIK interest 5.00%

   $ 4,185       $ 4,143       $ —     
     

Senior Debt
Matures December 2013
Interest rate Prime + 6.25% or
Floor rate of 10.00%, PIK interest 2.00%

   $ 2,539         2,515         —     
     

Revolving Line of Credit
Matures December 2013
Interest rate Prime +5.00% or
Floor rate of 8.50%

   $ 892         1,027         1,027   
           

 

 

    

 

 

 

Total Maxvision Holding, LLC

              7,685         1,027   
           

 

 

    

 

 

 

Total Debt Electronics & Computer Hardware (0.24%)*

        7,685         1,027   
           

 

 

    

 

 

 

Althea Technologies, Inc.

   Specialty
Pharmaceuticals
  

Senior Debt
Matures October 2013
Interest rate Prime + 7.70% or
Floor rate of 10.95%

   $ 10,359         10,315         10,584   

Pacira Pharmaceuticals, Inc.

   Specialty
Pharmaceuticals
  

Senior Debt
Matures August 2014
Interest rate Prime + 6.25% or
Floor rate of 10.25%

   $ 11,250         11,257         11,397   
     

Senior Debt
Matures August 2014
Interest rate Prime + 8.65% or
Floor rate of 12.65%

   $ 15,000         14,386         14,574   
           

 

 

    

 

 

 

Total Pacira Pharmaceuticals, Inc.

              25,643         25,971   

Quatrx Pharmaceuticals Company

   Specialty
Pharmaceuticals
  

Convertible Senior Debt
Matures March 2012
Interest rate Fixed 8.00%

   $ 1,888         1,888         1,888   
           

 

 

    

 

 

 

Total Debt Specialty Pharmaceuticals (8.92%)*

        37,846         38,443   
           

 

 

    

 

 

 

Achronix Semiconductor Corporation

   Semiconductors   

Senior Debt
Matures January 2015
Interest rate Prime + 7.75% or
Floor rate of 11.00%

   $ 2,500         2,329         2,329   

Kovio Inc.

   Semiconductors   

Senior Debt
Matures March 2015
Interest rate Prime + 5.50% or
Floor rate of 9.25%

   $ 1,250         1,218         1,218   
     

Senior Debt
Matures March 2015
Interest rate Prime + 6.00% or
Floor rate of 9.75%

   $ 3,000         2,910         2,910   
           

 

 

    

 

 

 

Total Kovio Inc.

              4,128         4,128   
           

 

 

    

 

 

 

Total Debt Semiconductors (1.50%)*

        6,457         6,457   
           

 

 

    

 

 

 

 

See notes to consolidated financial statements.

 

22


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2011

(dollars in thousands)

 

Portfolio Company

   Industry   

Type of Investment (1)

   Principal
Amount
     Cost (2)      Value (3)  

AcelRX Pharmaceuticals, Inc.

   Drug Delivery   

Senior Debt
Matures December 2014
Interest rate Prime + 3.25% or
Floor rate of 8.50%

   $ 10,000       $ 9,773       $ 9,579   
     

Senior Debt
Matures December 2014
Interest rate Prime + 3.25% or
Floor rate of 8.50%

   $ 10,000         9,772         9,578   
           

 

 

    

 

 

 

Total AcelRX Pharmaceuticals, Inc.

              19,545         19,157   

Alexza Pharmaceuticals, Inc. (4)

   Drug Delivery   

Senior Debt
Matures October 2013
Interest rate Prime + 6.5% or
Floor rate of 10.75%

   $ 10,497         10,537         10,695   

BIND Biosciences, Inc.

   Drug Delivery   

Senior Debt
Matures July 2014
Interest rate Prime + 7.45% or
Floor rate of 10.70%

   $ 5,000         4,730         4,880   
           

 

 

    

 

 

 

Total BIND Biosciences, Inc.

              4,730         4,880   

Merrion Pharma, Plc. (5)

   Drug Delivery   

Senior Debt
Matures January 2015
Interest rate Prime + 9.20% or
Floor rate of 12.45%

   $ 5,000         4,765