Hercules Capital
HERCULES TECHNOLOGY GROWTH CAPITAL INC (Form: 10-Q, Received: 11/01/2012 16:34:52)
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 September 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 October 29, 2012, there were 52,884,820 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 September 30, 2012 (unaudited) and December 31, 2011

     3   
  

Consolidated Schedule of Investments as of September 30, 2012 (unaudited)

     4   
  

Consolidated Schedule of Investments as of December 31, 2011

     19   
  

Consolidated Statement of Operations for the three and nine-month periods ended September 30, 2012 and 2011 (unaudited)

     33   
  

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

     34   
  

Consolidated Statement of Cash Flows for the nine-month periods ended September 30, 2012 and 2011 (unaudited)

     35   
  

Notes to Consolidated Financial Statements (unaudited)

     36   

Item 2.

  

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

     57   

Item 3.

  

Quantitative and Qualitative Disclosures About Market Risk

     85   

Item 4.

  

Controls and Procedures

     86   

PART II. OTHER INFORMATION

     87   

Item 1.

  

Legal Proceedings

     87   

Item 1A.

  

Risk Factors

     87   

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

     94   

Item 3.

  

Defaults Upon Senior Securities

     94   

Item 4.

  

Mine Safety Disclosures

     94   

Item 5.

  

Other Information

     94   

Item 6.

  

Exhibits

     94   

SIGNATURES

     95   

 

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)

 

     September 30,
2012
(unaudited)
    December 31,
2011
 

Assets

    

Investments:

    

Non-control/Non-affiliate investments (cost of $788,526 and $642,038, respectively)

   $ 771,184      $ 651,843   

Affiliate investments (cost of $4,256 and $3,236, respectively)

     3,275        —     

Control investments (cost of $0 and $11,266, respectively)

     —          1,027   
  

 

 

   

 

 

 

Total investments, at value (cost of $792,782 and $656,540, respectively)

     774,459        652,870   

Cash and cash equivalents

     107,093        64,474   

Interest receivable

     7,774        5,820   

Other assets

     20,187        24,230   
  

 

 

   

 

 

 

Total assets

   $ 909,513      $ 747,394   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable and accrued liabilities

   $ 9,491      $ 10,813   

Wells Fargo Loan

     —          10,187   

Notes Payable

     159,490        —     

Long-term Liabilities (Convertible Senior Notes)

     71,165        70,353   

Long-term SBA Debentures

     200,250        225,000   
  

 

 

   

 

 

 

Total liabilities

     440,396        316,353   

Commitments and Contingencies (Note 10)

    

Net assets consist of:

    

Common stock, par value

     51        44   

Capital in excess of par value

     535,707        484,244   

Unrealized depreciation on investments

     (18,618     (3,431

Accumulated realized losses on investments

     (40,993     (43,042

Distributions in excess of investment income

     (7,030     (6,774

Total net assets

     469,117        431,041   
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 909,513      $ 747,394   
  

 

 

   

 

 

 

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

     49,785        43,853   

Net asset value per share

   $ 9.42      $ 9.83   

See notes to consolidated financial statements (unaudited)

 

3


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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%

    $ 22,799      $ 22,828      $ 22,929   

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        9,827        9,529   

Chroma Therapeutics, Ltd. (5)(10)

  Drug Discovery & Development   Senior Debt          
     

Matures November 2013

Interest rate Prime + 7.75% or

Floor rate of 12.00%

    $ 4,727        5,339        3,313   

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        19,576        18,520   

Coronado BioSciences, Inc. (3)

  Drug Discovery & Development   Senior Debt          
     

Matures March 2016

Interest rate Prime + 6.00% or

Floor rate of 9.25%

    $ 15,000        14,684        14,684   

Dicerna Pharmaceuticals, Inc.

  Drug Discovery & Development   Senior Debt          
     

Matures January 2015

Interest rate Prime + 5.75% or

Floor rate of 10.15%

    $ 10,136        9,931        9,822   

Insmed, Incorporated (3)

  Drug Discovery & Development   Senior Debt          
     

Matures January 2016

Interest rate Prime + 4.75% or

Floor rate of 9.25%

    $ 10,000        9,648        9,648   

NeurogesX, Inc. (3)

  Drug Discovery & Development   Senior Debt          
     

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

    $ 14,559        14,507        14,295   

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        5,982        5,862   

Paratek Pharmaceuticals, Inc.

  Drug Discovery & Development   Senior Debt (9)          
     

Matures upon liquidation

Interest rate Fixed 10.00%

    $ 45        45        45   
    Senior Debt (9)          
     

Matures upon liquidation

Interest rate Fixed 10.00%

    $ 36        31        31   
           

 

 

   

 

 

 

Total Paratek Pharmaceuticals, Inc.

              76        76   
           

 

 

   

 

 

 

Total Debt Drug Discovery & Development (28.93%)*

            138,898        135,708   
           

 

 

   

 

 

 

See notes to consolidated financial statements (unaudited)

 

4


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 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      $ 6,946      $ 6,778   

OpenPeak, Inc. (4)

  Communications & Networking   Senior Debt          
     

Matures July 2015

Interest rate Prime + 8.75% or

Floor rate of 12.00%

    $ 15,000        14,809        14,958   

Pac-West Telecomm, Inc.

  Communications & Networking   Senior Debt          
     

Matures October 2013

Interest rate Prime + 7.50% or

Floor rate of 12.00%

    $ 3,458        3,400        3,320   

PeerApp, Inc. (4)

  Communications & Networking   Senior Debt          
     

Matures April 2013

Interest rate Prime + 7.50% or

Floor rate of 11.50%

    $ 834        914        914   

PointOne, Inc.

  Communications & Networking   Senior Debt          
     

Matures April 2015

Interest rate Libor + 9.00% or

Floor rate of 11.50%

    $ 7,333        7,195        6,881   
   

Senior Debt

         
     

Matures September 2015

Interest rate Libor + 9.00% or

Floor rate of 11.50%

    $ 356        351        330   
           

 

 

   

 

 

 

Total PointOne, Inc.

              7,546        7,211   
           

 

 

   

 

 

 

Total Debt Communications & Networking (7.08%)*

            33,615        33,181   
           

 

 

   

 

 

 

Box, Inc. (4)

  Software   Senior Debt          
     

Matures March 2015

Interest rate Prime + 3.75% or

Floor rate of 7.50%

    $ 10,000        9,904        9,425   
   

Senior Debt

         
     

Matures July 2014

Interest rate Prime + 5.25% or

Floor rate of 8.50%

    $ 1,165        1,216        1,205   
   

Senior Debt

         
     

Matures July 2016

Interest rate Prime + 5.13% or

Floor rate of 8.88%

    $ 20,000        20,064        19,529   
           

 

 

   

 

 

 

Total Box, Inc.

              31,184        30,159   

Caplinked

  Software   Senior Debt (9)          
     

Matures May 2015

Interest rate Fixed 5.00%

    $ 50        50        50   

Clickfox, Inc.

  Software   Senior Debt          
     

Matures November 2015

Interest rate Prime + 8.25% or

Floor rate of 11.50%

    $ 8,000        7,213        7,453   

EndPlay,Inc.

 

Software

  Senior Debt          
     

Matures August 2015

Interest rate Prime + 7.35% or

Floor rate 10.6%

    $ 2,000        1,914        1,914   

Hillcrest Laboratories, Inc

  Software   Senior Debt          
     

Matures July 2015

Interest rate Prime + 7.50% or

Floor rate of 10.75%

    $ 4,000        3,910        3,909   

JackBe Corporation

  Software   Senior Debt          
     

Matures January 2016

Interest rate Prime + 7.25% or

Floor rate of 10.50%

    $ 3,000        2,882        2,882   

 

See notes to consolidated financial statements (unaudited)

 

5


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  

Kxen, Inc. (4)

  Software   Senior Debt          
     

Matures January 2015

Interest rate Prime + 5.08% or

Floor rate of 8.33%

    $ 2,590      $ 2,608      $ 2,422   

Tada Innovations, Inc.

  Software   Senior Debt (9)          
     

Matures November 2012

Interest rate Fixed 8.00%

    $ 100        100        100   
           

 

 

   

 

 

 

Total Debt Software (10.42%)*

              49,861        48,889   
           

 

 

   

 

 

 

Althea Technologies, Inc.

  Specialty Pharmaceuticals   Senior Debt          
     

Matures October 2013

Interest rate Prime + 7.70% or

Floor rate of 10.95%

    $ 8,364        8,537        8,538   

Quatrx Pharmaceuticals Company

  Specialty Pharmaceuticals   Senior Debt (9)          
     

Matures March 2014

Interest rate Fixed 8.00%

    $ 1,888        1,888        2,346   
           

 

 

   

 

 

 

Total Debt Specialty Pharmaceuticals (2.32%)*

            10,425        10,884   
           

 

 

   

 

 

 

Achronix Semiconductor Corporation

  Semiconductors   Senior Debt          
     

Matures January 2015

Interest rate Prime + 10.60% or

Floor rate of 13.85%

    $ 2,034        1,979        1,980   

Kovio Inc.

  Semiconductors   Senior Debt          
     

Matures March 2015

Interest rate Prime + 5.50% or

Floor rate of 9.25%

    $ 1,216        1,194        1,106   
   

Senior Debt

         
     

Matures March 2015

Interest rate Prime - 3.75% or

Floor rate of 9.75%

    $ 2,836        2,782        2,603   
           

 

 

   

 

 

 

Total Kovio Inc.

              3,976        3,709   
           

 

 

   

 

 

 

Total Debt Semiconductors (1.20%)*

            5,955        5,689   
           

 

 

   

 

 

 

AcelRX Pharmaceuticals, Inc. (3)

  Drug Delivery   Senior Debt          
     

Matures December 2014

Interest rate Prime + 3.25% or

Floor rate of 8.50%

    $ 9,097        8,994        8,753   
   

Senior Debt

         
     

Matures December 2014

Interest rate Prime + 3.25% or

Floor rate of 8.50%

    $ 9,097        8,994        8,752   
           

 

 

   

 

 

 

Total AcelRX Pharmaceuticals, Inc.

              17,988        17,505   

Alexza Pharmaceuticals, Inc. (3)(4)

  Drug Delivery   Senior Debt          
     

Matures October 2013

Interest rate Prime + 6.50% or

Floor rate of 10.75%

    $ 6,470        6,771        6,772   

BIND Biosciences, Inc.

  Drug Delivery   Senior Debt          
     

Matures July 2014

Interest rate Prime + 7.45% or

Floor rate of 10.70%

    $ 3,799        3,744        3,820   

Intelliject, Inc. (4)

  Drug Delivery   Senior Debt          
     

Matures September 2015

Interest rate Prime + 5.75% or

Floor rate of 11.00%

    $ 15,000        14,485        14,485   

Revance Therapeutics, Inc.

  Drug Delivery   Senior Debt          
     

Matures March 2015

Interest rate Prime + 6.60% or

Floor rate of 9.85%

    $ 20,248        20,016        19,710   
           

 

 

   

 

 

 

Total Debt Drug Delivery (13.28%)*

            63,004        62,292   
           

 

 

   

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

6


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  

Ahhha, Inc. (8)

  Internet Consumer & Business Services   Senior Debt          
     

Matures January 2015

Interest rate Fixed 10.00%

    $ 350      $ 347      $ —     

Blurb, Inc.

  Internet Consumer & Business Services   Senior Debt          
     

Matures December 2015

Interest rate Prime + 5.25% or

Floor rate 8.50%

    $ 8,000        7,667        7,576   

Education Dynamics, LLC

  Internet Consumer & Business Services   Senior Debt          
     

Matures March 2016

Interest rate LIBOR + 9.50%,

PIK Interest 1.50%

    $ 27,500        26,889        26,889   

Just.Me, Inc.

  Internet Consumer & Business Services   Senior Debt          
     

Matures June 2015

Interest rate Prime + 2.50% or

Floor rate 5.75%

    $ 600        584        584   

Loku, Inc.

  Internet Consumer & Business Services   Senior Debt (9)          
     

Matures June 2013

Interest rate Fixed 6.00%

    $ 100        100        100   

NetPlenish, Inc.

  Internet Consumer & Business Services   Senior Debt          
     

Matures April 2015

Interest rate Fixed 10.00%

    $ 500        488        456   

Reply! Inc. (4)

  Internet Consumer & Business Services   Senior Debt          
     

Matures June 2015

Interest rate Prime + 6.875% or

Floor rate of 10.125%

    $ 12,068        11,895        11,719   
   

Senior Debt

         
     

Matures June 2015

Interest rate Prime + 7.25% or

Floor rate of 11.00%

    $ 2,000        1,926        1,926   
           

 

 

   

 

 

 

Total Reply! Inc.

              13,821        13,645   

Second Rotation, Inc.

  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        5,966        5,966   
  Internet Consumer & Business Services   Senior Debt          
     

Matures August 2015

Interest rate Prime + 6.50% or

Floor rate of 10.25% , PIK Interest 1.50%

    $ 2,000        1,927        1,927   
           

 

 

   

 

 

 

Total Second Rotation, Inc.

              7,893        7,893   

Tectura Corporation

  Internet Consumer & Business Services   Revolving Line of Credit          
     

Matures July 2013

Interest rate Fixed 11.00%

    $ 16,404        16,419        16,098   
   

Senior Debt

         
     

Matures December 2014

Interest rate Fixed 13.00%

    $ 6,978        7,776        7,699   
   

Senior Debt

         
     

Matures April 2013

Interest rate Fixed 13.00%

    $ 1,390        1,471        1,471   
           

 

 

   

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

7


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  

Total Tectura Corporation

              25,666        25,268   

Trulia, Inc. (3)(4)

  Internet Consumer & Business Services   Senior Debt          
     

Matures March 2015

Interest rate Prime + 2.75% or

Floor rate of 6.00%

    $ 5,000      $ 4,914      $ 4,567   
   

Senior Debt

         
     

Matures March 2015

Interest rate Prime + 5.50% or

Floor rate of 8.75%

    $ 5,000        4,914        4,780   
           

 

 

   

 

 

 

Total Trulia, Inc.

              9,828        9,347   

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        7,620        6,874   
   

Senior Debt

         
     

Matures September 2015

Interest rate LIBOR + 7.00% or Floor rate of 8.50%

    $ 10,850        10,761        10,025   
           

 

 

   

 

 

 

Total Vaultlogix, Inc.

              18,381        16,899   

Votizen, Inc.

  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        9,814        9,814   
           

 

 

   

 

 

 

Total Debt Internet Consumer & Business Services (25.28%)*

          121,578        118,571   
           

 

 

   

 

 

 

Cha Cha Search, Inc.

  Information Services   Senior Debt          
     

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

    $ 2,912        2,866        2,803   

Eccentex Corporation

  Information Services   Senior Debt          
     

Matures May 2015

Interest rate Prime + 7.00% or

Floor rate of 10.25%

    $ 1,000        968        968   

InXpo, Inc.

  Information Services   Senior Debt          
     

Matures March 2014

Interest rate Prime + 7.50% or

Floor rate of 10.75%

    $ 2,550        2,457        2,423   

Jab Wireless, Inc.

  Information Services   Senior Debt          
     

Matures August 2016

Interest rate Prime + 5.25% or

Floor rate of 6.75%

    $ 25,773        25,459        25,386   

RichRelevance, Inc.

  Information Services   Senior Debt          
     

Matures January 2015

Interest rate Prime + 3.25% or

Floor rate of 7.50%

    $ 4,702        4,647        4,534   
           

 

 

   

 

 

 

Total Debt Information Services (7.70%)*

          36,397        36,114   
           

 

 

   

 

 

 

Gynesonics, Inc.

  Medical Device & Equipment   Senior Debt          
     

Matures October 2013

Interest rate Prime + 8.25% or

Floor rate of 11.50%

    $ 4,726        4,736        4,798   
    Senior Debt (9)          
     

Matures November 2012

Interest rate Fixed 8.00%

    $ 253        202        202   
           

 

 

   

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

8


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  

Total Gynesonics, Inc.

              4,938        5,000   

Lanx, Inc.

  Medical Device & Equipment   Senior Debt          
     

Matures October 2016

Interest rate Prime + 6.50% or

Floor rate of 10.25%

    $ 15,000      $ 14,239      $ 14,239   
  Medical Device & Equipment   Revolving Line of Credit          
     

Matures October 2015

Interest rate Prime + 5.25% or

Floor rate of 9.00%

    $ 5,500        5,287        5,287   
           

 

 

   

 

 

 

Total Lanx, Inc.

              19,526        19,526   

Novasys Medical, Inc.

  Medical Device & Equipment   Senior Debt (9)          
     

Matures January 2013

Interest rate Fixed 8.00%

    $ 65        63        63   
    Senior Debt (9)          
     

Matures August 2013

Interest rate Fixed 8.00%

    $ 22        20        20   
           

 

 

   

 

 

 

Total Novasys Medical, Inc.

              83        83   

Optiscan Biomedical, Corp.

  Medical Device & Equipment   Senior Debt          
     

Matures December 2013

Interest rate Prime + 8.00% or

Floor rate of 11.45%

    $ 8,260        8,747        2,500   
    Senior Debt (9)          
     

Matures April 2013

Interest rate Fixed 8.00%

    $ 288        288        —     
           

 

 

   

 

 

 

Total Optiscan Biomedical, Corp.

              9,035        2,500   

Oraya Therapeutics, Inc. (4)

  Medical Device & Equipment   Senior Debt (9)          
     

Matures December 2013

Interest rate Fixed 7.00%

    $ 500        500        500   
    Senior Debt          
     

Matures September 2015

Interest rate Prime + 5.50% or

Floor rate of 10.25%

    $ 10,000        9,765        9,563   
           

 

 

   

 

 

 

Total Oraya Therapeutics, Inc.

          10,265        10,063   

USHIFU, LLC

  Medical Device & Equipment   Senior Debt          
     

Matures April 2016

Interest rate Prime + 7.75% or

Floor rate of 11.00%

    $ 6,000        5,200        5,200   
           

 

 

   

 

 

 

Total Debt Medical Device & Equipment (9.03%)*

          49,047        42,372   
           

 

 

   

 

 

 

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

  Diagnostic   Senior Debt          
     

Matures December 2014

Interest rate Prime + 6.75% or

Floor rate of 10.00%

    $ 6,380        6,271        6,314   

Tethys Bioscience Inc.

  Diagnostic   Senior Debt          
     

Matures December 2015

Interest rate Prime + 8.40% or

Floor rate of 11.65%

    $ 10,000        9,852        9,852   
           

 

 

   

 

 

 

Total Debt Diagnostic (3.45%)*

          16,123        16,166   
           

 

 

   

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

9


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 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%

    $ 4,143      $ 4,045      $ 4,128   

Labcyte, Inc.

  Biotechnology Tools   Senior Debt          
     

Matures May 2013

Interest rate Prime + 8.60% or

Floor rate of 11.85%

    $ 1,194        1,257        1,257   
    Senior Debt          
     

Matures June 2016

Interest rate Prime + 6.70% or

Floor rate of 9.95%

    $ 5,000        4,847        4,846   
           

 

 

   

 

 

 

Total Labcyte, Inc.

              6,104        6,103   
           

 

 

   

 

 

 

Total Debt Biotechnology Tools (2.18%)*

          10,149        10,231   
           

 

 

   

 

 

 

MedCall, LLC

  Healthcare Services, Other   Senior Debt          
     

Matures January 2016

Interest rate 7.79% or

Floor rate of 9.50%

    $ 5,038        4,961        4,680   
    Senior Debt          
     

Matures January 2016

Interest rate LIBOR +8.00% or

Floor rate of 10.00%

    $ 4,144        4,070        4,071   
           

 

 

   

 

 

 

Total MedCall, LLC

              9,031        8,751   

Pacific Child & Family Associates, LLC

  Healthcare Services, Other   Senior Debt          
     

Matures January 2015

Interest rate LIBOR + 8.00% or

Floor rate of 10.50%

    $ 3,511        3,554        3,486   
   

Revolving Line of Credit

         
     

Matures January 2015

Interest rate LIBOR + 6.50% or

Floor rate of 9.00%

    $ 1,500        1,488        1,312   
    Senior Debt          
     

Matures January 2015

Interest rate LIBOR + 10.50% or

Floor rate of 13.00%, PIK interest

3.75%

    $ 5,900        6,490        6,344   
           

 

 

   

 

 

 

Total Pacific Child & Family Associates, LLC

              11,532        11,142   

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%

    $ 16,804        16,568        16,252   
           

 

 

   

 

 

 

Total Debt Health Services, Other (7.70%)*

          37,131        36,145   
           

 

 

   

 

 

 

Entrigue Surgical, Inc.

  Surgical Devices   Senior Debt          
     

Matures December 2014

Interest rate Prime + 5.90% or

Floor rate of 9.65%

    $ 2,735        2,683        2,646   

Transmedics, Inc. (4)

  Surgical Devices   Senior Debt          
     

Matures February 2014

Interest rate Prime + 9.70% or

Floor rate of 12.95%

    $ 7,660        8,019        8,019   
           

 

 

   

 

 

 

Total Debt Surgical Devices (2.27%)*

          10,702        10,665   
           

 

 

   

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

10


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  

Westwood One Communications

  Media/Content/ Info   Senior Debt          
     

Matures October 2016

Interest rate LIBOR + 6.50% or Floor rate of 8.00%

    $ 20,606      $ 19,014      $ 18,804   

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        9,912        9,678   
             
     

Matures November 2015

Interest rate Libor + 7.50% or

Floor rate of 10.00%

    $ 8,449        8,304        7,959   
             
     

Matures November 2015

Interest rate Libor + 7.50% or

Floor rate of 10.00%

    $ 8,663        8,515        8,160   
           

 

 

   

 

 

 

Total Women’s Marketing, Inc.

          26,731        25,797   
           

 

 

   

 

 

 

Total Debt Media/Content/Info (9.51%)*

          45,745        44,601   
           

 

 

   

 

 

 

Alphabet Energy, Inc.

  Clean Tech   Senior Debt          
     

Matures February 2015

Interest rate Prime + 5.75% or

Floor rate of 9.00%

    $ 962        916        890   

American Supercondutor Corporation (3)

  Clean Tech   Senior Debt          
     

Matures December 2014

Interest rate Prime + 7.25% or

Floor rate of 11.00%

    $ 10,000        9,780        9,780   

BrightSource Energy, Inc.

  Clean Tech            
   

Senior Debt

         
     

Matures November 2012

Interest rate Prime + 7.25% or

Floor rate of 10.50%

    $ 35,000        34,992        34,992   

EcoMotors, Inc.

  Clean Tech   Senior Debt          
     

Matures February 2014

Interest rate Prime + 6.10% or

Floor rate of 9.35%

    $ 3,297        3,369        3,347   

Enphase Energy, Inc. (3)

  Clean Tech   Senior Debt          
     

Matures June 2014

Interest rate Prime + 4.40% or

Floor rate of 9.00%

    $ 4,335        4,297        4,164   

Glori Energy, Inc.

  Clean Tech   Senior Debt          
     

Matures June 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

    $ 8,000        7,754        7,754   

Integrated Photovoltaics, Inc.

  Clean Tech   Senior Debt          
     

Matures February 2015

Interest rate Prime + 7.38% or

Floor rate of 10.63%

    $ 2,832        2,742        2,668   

Propel Biofuels, Inc.

  Clean Tech   Senior Debt          
     

Matures September 2013

Interest rate of 11.00%

    $ 770        823        823   

SCIenergy, Inc. (4)

  Clean Tech   Senior Debt          
     

Matures September 2015

Interest rate Prime + 8.75% or

Floor rate 12.00%

    $ 5,296        5,012        5,170   

Solexel, Inc.

  Clean Tech   Senior Debt          
     

Matures June 2013

Interest rate Prime + 8.25% or

Floor rate of 11.50%

    $ 4,251        4,235        4,235   

 

See notes to consolidated financial statements (unaudited)

 

11


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
    Cost (2)     Value (3)  
    Senior Debt          
     

Matures June 2013

Interest rate Prime + 7.25% or

Floor rate of 10.50%

    $ 489      $ 487      $ 487   
           

 

 

   

 

 

 

Total Solexel, Inc.

          4,722        4,722   

Stion Corporation (4)

  Clean Tech   Senior Debt          
     

Matures February 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

    $ 8,286        8,170        7,957   
           

 

 

   

 

 

 

Total Debt Clean Tech (17.54%)*

          82,577        82,267   
           

 

 

   

 

 

 
             
           

 

 

   

 

 

 

Total Debt (147.89%)

          711,207        693,775   
           

 

 

   

 

 

 

Acceleron Pharmaceuticals, Inc.

  Drug Discovery & Development   Common Stock Warrants           39        53   
    Preferred Stock Warrants     Series A       69        340   
    Preferred Stock Warrants     Series B       35        63   
           

 

 

   

 

 

 

Total Warrants Acceleron Pharmaceuticals, Inc.

              143        456   

Anthera Pharmaceuticals Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           984        141   

Cempra, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           187        67   

Chroma Therapeutics, Ltd. (5)(10)

  Drug Discovery & Development   Preferred Stock Warrants     Series D       490        —     

Concert Pharmaceuticals, Inc. (4)

  Drug Discovery & Development   Preferred Stock Warrants     Series C       367        121   

Coronado Biosciences, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           142        109   

Dicerna Pharmaceuticals, Inc.

  Drug Discovery & Development   Common Stock Warrants           28        12   
    Preferred Stock Warrants     Series A       236        128   
    Preferred Stock Warrants     Series B       311        160   
           

 

 

   

 

 

 

Total Warrants Dicerna Pharmaceuticals, Inc.

              575        300   

EpiCept Corporation (3)

  Drug Discovery & Development   Common Stock Warrants           4        —     

Horizon Pharma, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           231        —     

Insmed, Incorporated (3)

  Drug Discovery & Development   Common Stock Warrants           570        840   

Merrimack Pharmaceuticals, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           155        1,347   

NeurogesX, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           503        126   

NextWave Pharmaceuticals, Inc. (4)

  Drug Discovery & Development   Preferred Stock Warrants     Series A-1       126        370   

PolyMedix, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants           480        8   

Portola Pharmaceuticals, Inc.

  Drug Discovery & Development   Preferred Stock Warrants     Series B       152        288   
           

 

 

   

 

 

 

Total Warrants Drug Discovery & Development (0.89%)*

          5,109        4,173   
           

 

 

   

 

 

 

Bridgewave Communications

  Communications & Networking   Preferred Stock Warrants     Series 5       753        720   

Intelepeer, Inc.

  Communications & Networking   Preferred Stock Warrants     Series C       102        116   

 

See notes to consolidated financial statements (unaudited)

 

12


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
  Cost (2)     Value (3)  

Neonova Holding Company

  Communications & Networking   Preferred Stock Warrants     Series A     $ 94      $ 45   

OpenPeak, Inc. (4)

  Communications & Networking   Preferred Stock Warrants     Series E       149        19   

Pac-West Telecomm, Inc.

  Communications & Networking   Common Stock Warrants           121        —     

PeerApp, Inc. (4)

  Communications & Networking   Preferred Stock Warrants     Series B       61        37   

Peerless Network, Inc.

  Communications & Networking   Preferred Stock Warrants     Series A       94        264   

Ping Identity Corporation

  Communications & Networking   Preferred Stock Warrants     Series B       52        125   

PointOne, Inc.

  Communications & Networking   Common Stock Warrants           131        10   

Purcell Systems, Inc.

  Communications & Networking   Preferred Stock Warrants     Series B       123        147   

Stoke, Inc.

  Communications & Networking   Preferred Stock Warrants     Series C       53        125   
    Preferred Stock Warrants     Series D       65        52   
           

 

 

   

 

 

 

Total Stoke, Inc.

          118        177   
           

 

 

   

 

 

 

Total Warrants Communications & Networking (0.35%)*

          1,798        1,660   
           

 

 

   

 

 

 

Atrenta, Inc.

  Software   Preferred Stock Warrants     Series C       136        779   
    Preferred Stock Warrants     Series D       95        261   
           

 

 

   

 

 

 

Total Atrenta, Inc.

              231        1,040   

Box, Inc. (4)

  Software   Preferred Stock Warrants     Series C       117        2,235   
    Preferred Stock Warrants     Series B       72        3,242   
    Preferred Stock Warrants     Series D-1       194        566   
           

 

 

   

 

 

 

Total Box, Inc.

              383        6,043   

Braxton Technologies, LLC.

  Software   Preferred Stock Warrants     Series A       188        —     

Central Desktop, Inc.

  Software   Preferred Stock Warrants     Series B       108        258   

Clickfox, Inc.

  Software   Preferred Stock Warrants     Series B       329        595   
    Preferred Stock Warrants     Series C       730        727   
           

 

 

   

 

 

 

Total Clickfox, Inc.

          1,059        1,322   

Daegis Inc. (pka Unify Corporation) (3)

  Software   Common Stock Warrants           1,434        62   

Endplay, Inc.

  Software   Preferred Stock Warrants     Series B       67        34   

Forescout Technologies, Inc.

  Software   Preferred Stock Warrants     Series D       99        163   

HighRoads, Inc.

  Software   Preferred Stock Warrants     Series B       45        8   

Hillcrest Laboratories, Inc.

  Software   Preferred Stock Warrants     Series E       55        23   

JackBe Corporation

  Software   Preferred Stock Warrants     Series C       73        73   

Kxen, Inc. (4)

  Software   Preferred Stock Warrants     Series D       47        14   

Rockyou, Inc.

  Software   Preferred Stock Warrants     Series B       117        —     

SugarSync Inc.

  Software   Preferred Stock Warrants     Series CC       78        139   
    Preferred Stock Warrants     Series DD       34        35   
           

 

 

   

 

 

 

Total SugarSync Inc.

          112        174   

Tada Innovations, Inc.

  Software   Preferred Stock Warrants     Series A       25        30   

White Sky, Inc.

  Software   Preferred Stock Warrants     Series B-2       54        4   

 

See notes to consolidated financial statements (unaudited)

 

13


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Industry

     

Type of Investment (1)

 

Series

  Principal
Amount
  Cost (2)     Value (3)  

WildTangent, Inc.

  Software   Preferred Stock Warrants     Series 3A     $ 238      $ 84   
           

 

 

   

 

 

 

Total Warrants Software (1.99%)*

          4,335        9,332   
           

 

 

   

 

 

 

Luminus Devices, Inc.

  Electronics & Computer Hardware   Common Stock Warrants           600        —     

Shocking Technologies, Inc.

  Electronics & Computer Hardware   Preferred Stock Warrants     Series A-1       63        54   
           

 

 

   

 

 

 

Total Warrant Electronics & Computer Hardware (0.01%)*

          663        54   
           

 

 

   

 

 

 

Althea Technologies, Inc.

  Specialty Pharmaceuticals   Preferred Stock Warrants     Series D       309        758   

Pacira Pharmaceuticals, Inc. (3)

  Specialty Pharmaceuticals   Common Stock Warrants           1,086        1,303   

Quatrx Pharmaceuticals Company

  Specialty Pharmaceuticals   Preferred Stock Warrants     Series E       528        —     
           

 

 

   

 

 

 

Total Warrants Specialty Pharmaceuticals (0.44%)*

          1,923        2,061   
           

 

 

   

 

 

 

IPA Holdings, LLC

  Consumer & Business Products   Common Stock Warrants           275        377   

Market Force Information, Inc.

  Consumer & Business Products   Preferred Stock Warrants     Series A       24        68   

Seven Networks, Inc.

  Consumer & Business Products   Preferred Stock Warrants     Series C       174        253   

Wageworks, Inc. (3)

  Consumer & Business Products   Common Stock Warrants           252        1,953   

Wavemarket, Inc. (4)

  Consumer & Business Products   Preferred Stock Warrants     Series E       106        62   
           

 

 

   

 

 

 

Total Warrant Consumer & Business Products (0.58%)*

          831        2,713   
           

 

 

   

 

 

 

Achronix Semiconductor Corporation

  Semiconductors   Preferred Stock Warrants     Series D       160        132   

Enpirion, Inc.

  Semiconductors   Preferred Stock Warrants     Series D       157        —     

iWatt, Inc.

  Semiconductors   Preferred Stock Warrants     Series C       45        19   
    Preferred Stock Warrants     Series D       583        379   
           

 

 

   

 

 

 

Total iWatt, Inc.

          628        398   

Kovio Inc.

  Semiconductors   Preferred Stock Warrants     Series B       92        —     

Quartics, Inc.

  Semiconductors   Preferred Stock Warrants     Series C       53        —     
           

 

 

   

 

 

 

Total Warrants Semiconductors (0.11%)*

          1,090        530   
           

 

 

   

 

 

 

AcelRX Pharmaceuticals, Inc. (3)

  Drug Delivery   Common Stock Warrants           357        252   

Alexza Pharmaceuticals, Inc. (3)(4)

  Drug Delivery   Common Stock Warrants           645        17   

BIND Biosciences, Inc.

  Drug Delivery   Preferred Stock Warrants     Series C-1       291        503   

Intelliject, Inc. (4)

  Drug Delivery   Preferred Stock Warrants     Series B       594        518   

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

  Drug Delivery   Common Stock Warrants           210        100   

Revance Therapeutics, Inc.

  Drug Delivery   Preferred Stock Warrants     Series D       557        484   

Transcept Pharmaceuticals, Inc. (3)

  Drug Delivery   Common Stock Warrants           87        66   
           

 

 

   

 

 

 

Total Warrant Drug Delivery (0.41%)*

          2,741        1,940   
           

 

 

   

 

 

 

Blurb, Inc.

  Internet Consumer & Business Services   Preferred Stock Warrants     Series B       323        514   
    Preferred Stock Warrants     Series C       636        324   

 

See notes to consolidated financial statements (unaudited)

 

14


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Industry

       

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Total Blurb, Inc.

                  $ 959       $ 838   

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         24   

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         670   

Second Rotation

   Internet Consumer & Business Services    Preferred Stock Warrants       Series D         93         86   

Tectura Corporation

   Internet Consumer & Business Services    Preferred Stock Warrants       Series B-1         51         14   

Trulia, Inc. (3)(4)

   Internet Consumer & Business Services    Preferred Stock Warrants       Series D         188         573   
                 

 

 

    

 

 

 

Total Warrants Internet Consumer & Business Services (0.47%)*

              3,127         2,205   
                 

 

 

    

 

 

 

Buzznet, Inc.

   Information Services    Preferred Stock Warrants       Series B         9         —     

Cha Cha Search, Inc.

   Information Services    Preferred Stock Warrants       Series F         58         2   

Eccentex Corporation

   Information Services    Preferred Stock Warrants       Series A         31         4   

Intelligent Beauty, Inc.

   Information Services    Preferred Stock Warrants       Series B         230         531   

InXpo, Inc.

   Information Services    Preferred Stock Warrants       Series C         98         47   
   Information Services    Preferred Stock Warrants       Series C-1         25         25   
                 

 

 

    

 

 

 

Total InXpo, Inc.

                    123         72   

Jab Wireless, Inc.

   Information Services    Preferred Stock Warrants       Series A         265         412   

RichRelevance, Inc.

   Information Services    Preferred Stock Warrants       Series D         98         27   

Solutionary, Inc.

   Information Services    Preferred Stock Warrants       Series E         96         3   
                 

 

 

    

 

 

 

Total Warrants Information Services (0.22%)*

              910         1,051   
                 

 

 

    

 

 

 

EKOS Corporation

   Medical Device & Equipment    Preferred Stock Warrants       Series C         327         —     

Gelesis, Inc. (6)

   Medical Device & Equipment    Preferred Stock Warrants       Series A-1         78         102   

Lanx, Inc.

   Medical Device & Equipment    Preferred Stock Warrants       Series C         441         442   

Light Science Oncology, Inc.

   Medical Device & Equipment    Preferred Stock Warrants       Series B         99         —     

Novasys Medical, Inc.

   Medical Device & Equipment    Preferred Stock Warrants       Series D         131         2   
      Common Stock Warrants               2         —     
                 

 

 

    

 

 

 

Total Novasys Medial, Inc.

                    133         2   

Optiscan Biomedical, Corp.

   Medical Device & Equipment    Preferred Stock Warrants       Series B         679         —     
      Preferred Stock Warrants       Series C         390         —     
                 

 

 

    

 

 

 

Total Optiscan Biomedical, Corp.

                    1,069         —     

Oraya Therapeutics, Inc. (4)

   Medical Device & Equipment    Preferred Stock Warrants       Series C         676         344   
      Common Stock Warrants               66         66   
                 

 

 

    

 

 

 

Total Oraya Therapeutics, Inc.

                    742         410   

USHIFU, LLC

   Medical Device & Equipment    Preferred Stock Warrants       Series G         1,178         1,180   
                 

 

 

    

 

 

 

Total Warrants Medical Device & Equipment (0.46%)*

              4,067         2,136   
                 

 

 

    

 

 

 

 

See notes to consolidated financial statements (unaudited)

 

15


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Industry

       

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

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

   Diagnostic    Common Stock Warrants             $ 244       $ 370   

Tethys Bioscience, Inc.

   Diagnostic    Preferred Stock Warrants       Series E         148         114   
                 

 

 

    

 

 

 

Total Warrants Diagnostic (0.10%)*

              392         484   
                 

 

 

    

 

 

 

deCODE genetics ehf. (5)(10)

   Biotechnology Tools    Preferred Stock Warrants       Series A-2         305         303   

Labcyte, Inc.

   Biotechnology Tools    Preferred Stock Warrants       Series C         323         370   

NuGEN Technologies, Inc.

   Biotechnology Tools    Preferred Stock Warrants       Series B         45         145   
      Preferred Stock Warrants       Series C         33         7   
                 

 

 

    

 

 

 

Total NuGEN Technologies, Inc.

                    78         152   
                 

 

 

    

 

 

 

Total Warrants Biotechnology Tools (0.18%)*

              706         825   
                 

 

 

    

 

 

 

Entrigue Surgical, Inc.

   Surgical Devices    Preferred Stock Warrants       Series B         87         33   

Transmedics, Inc. (4)

   Surgical Devices    Preferred Stock Warrants       Series B         225         —     

Gynesonics, Inc.

   Surgical Devices    Preferred Stock Warrants       Series A         18         18   
      Preferred Stock Warrants       Series C         381         263   
                 

 

 

    

 

 

 

Total Gynesonics, Inc.

                    399         281   
                 

 

 

    

 

 

 

Total Warrants Surgical Devices (0.07%)*

              711         314   
                 

 

 

    

 

 

 

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

   Media/Content/ Info    Preferred Stock Warrants       Series C         60         216   

Glam Media, Inc.

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

 

 

    

 

 

 

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

              542         216   
                 

 

 

    

 

 

 

Alphabet Energy, Inc.

   Clean Tech    Preferred Stock Warrants       Series A         45         89   

American Supercondutor Corporation (3)

   Clean Tech    Common Stock Warrants               244         247   

BrightSource Energy, Inc.

   Clean Tech    Preferred Stock Warrants       Series D         675         798   

Calera, Inc.

   Clean Tech    Preferred Stock Warrants       Series C         513         188   

EcoMotors, Inc.

   Clean Tech    Preferred Stock Warrants       Series B         308         494   

Enphase Energy, Inc. (3)

   Clean Tech    Common Stock Warrants               102         27   

Fulcrum Bioenergy, Inc.

   Clean Tech    Preferred Stock Warrants       Series C-1         212         210   

Glori Energy, Inc.

   Clean Tech    Preferred Stock Warrants       Series C         165         92   

GreatPoint Energy, Inc.

   Clean Tech    Preferred Stock Warrants       Series D-1         548         4   

Integrated Photovoltaics, Inc.

   Clean Tech    Preferred Stock Warrants       Series A-1         81         106   

Lilliputian Systems, Inc.

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

 

 

    

 

 

 

Total Lilliputian Systems, Inc.

                    155         —     

Propel Biofuels, Inc.

   Clean Tech    Preferred Stock Warrants       Series C         211         318   

SCIenergy, Inc. (4)

   Clean Tech    Preferred Stock Warrants       Series C         361         239   

Solexel, Inc.

   Clean Tech    Preferred Stock Warrants       Series B         1,161         17   

Stion Corporation (4)

   Clean Tech    Preferred Stock Warrants       Series E         318         283   

Trilliant, Inc.

   Clean Tech    Preferred Stock Warrants       Series A         161         66   
                 

 

 

    

 

 

 

Total Warrants Clean Tech (0.68%)*

              5,260         3,178   
                 

 

 

    

 

 

 
                    
                 

 

 

    

 

 

 

Total Warrants (7.01%)

              34,205         32,872   
                 

 

 

    

 

 

 

Aegerion Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Common Stock               150         1,135   

Aveo Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Common Stock               842         1,747   

Dicerna Pharmaceuticals, Inc.

   Drug Discovery & Development    Preferred Stock       Series B         502         361   

Inotek Pharmaceuticals Corp.

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

Merrimack Pharmaceuticals,
Inc. (3)

   Drug Discovery & Development    Common Stock               2,000         5,126   

 

See notes to consolidated financial statements (unaudited)

 

16


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

       

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Paratek Pharmaceuticals, Inc.

   Drug Discovery & Development    Preferred Stock       Series H       $ 1,005       $ 396   
                 

 

 

    

 

 

 

Total Equity Drug Discovery & Development (1.87%)*

              5,999         8,765   
                 

 

 

    

 

 

 

Acceleron Pharmaceuticals, Inc.

   Drug Delivery    Preferred Stock       Series C         243         203   
      Preferred Stock       Series E         97         172   
      Preferred Stock       Series F         61         75   
      Preferred Stock       Series B         1,000         903   
                 

 

 

    

 

 

 

Total Acceleron Pharmaceuticals, Inc.

                    1,401         1,353   

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

   Drug Delivery    Common Stock               9         5   

Transcept Pharmaceuticals, Inc. (3)

   Drug Delivery    Common Stock               500         221   
                 

 

 

    

 

 

 

Total Equity Drug Delivery (0.33%)*

              1,910         1,579   
                 

 

 

    

 

 

 

E-band Communications, Corp. (6)

   Communications & Networking    Preferred Stock       Series B         2,000         490   
      Preferred Stock       Series C         372         181   
      Preferred Stock       Series D         508         287   
      Preferred Stock       Series E         374         525   
                 

 

 

    

 

 

 

Total E-band Communications, Corp.

                    3,254         1,483   

Glowpoint, Inc. (3)

   Communications & Networking    Common Stock               101         242   

Neonova Holding Company

   Communications & Networking    Preferred Stock       Series A         250         246   

Peerless Network, Inc.

   Communications & Networking    Preferred Stock       Series A         1,000         2,780   

Stoke, Inc.

   Communications & Networking    Preferred Stock       Series E         500         583   
                 

 

 

    

 

 

 

Total Equity Communications & Networking (1.14%)*

              5,105         5,334   
                 

 

 

    

 

 

 

Atrenta, Inc.

   Software    Preferred Stock       Series D         334         607   

Box, Inc. (4)

   Software    Preferred Stock       Series C         500         5,117   
      Preferred Stock       Series D         500         2,072   
      Preferred Stock       Series D-1         1,000         1,631   
      Preferred Stock       Series D-2         2,001         2,892   
      Preferred Stock       Series E         500         500   
                 

 

 

    

 

 

 

Total Box, Inc.

                    4,501         12,212   
                 

 

 

    

 

 

 

Total Equity Software (2.73%)*

              4,835         12,819   
                 

 

 

    

 

 

 

Spatial Photonics, Inc.

   Electronics & Computer Hardware    Preferred Stock       Series D         268         —     

Virident Systems

   Electronics & Computer Hardware    Preferred Stock       Series D         5,000         5,250   
                 

 

 

    

 

 

 

Total Equity Electronics & Computer Hardware (1.12%)*

              5,268         5,250   
                 

 

 

    

 

 

 

Quatrx Pharmaceuticals Company

   Specialty Pharmaceuticals    Preferred Stock       Series E         750         —     
                 

 

 

    

 

 

 

Total Equity Specialty Pharmaceuticals (0.00%)*

              750         —     
                 

 

 

    

 

 

 

Caivis Acquisition Corporation

   Consumer & Business Products    Common Stock       Series A         819         598   

Facebook, Inc. (3)

   Consumer & Business Products    Common Stock       Series B         9,558         6,660   

IPA Holdings, LLC

   Consumer & Business Products    Preferred Stock       LLC interest         500         552   

Market Force Information, Inc.

   Consumer & Business Products    Preferred Stock       Series B         500         532   

 

See notes to consolidated financial statements (unaudited)

 

17


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2012

(unaudited)

(dollars in thousands)

 


Portfolio Company

  

Industry

       

Type of Investment (1)

  

Series

   Principal
Amount
   Cost (2)      Value (3)  

Wageworks, Inc. (3)

   Consumer & Business Products    Common Stock       Series D       $ 250       $ 336   
                 

 

 

    

 

 

 

Total Equity Consumer & Business Products (1.85%)*

              11,627         8,678   
                 

 

 

    

 

 

 

iWatt, Inc.

   Semiconductors    Preferred Stock       Series E         490         985   
                 

 

 

    

 

 

 

Total Equity Semiconductors (0.21%)*

              490         985   
                 

 

 

    

 

 

 

Cozi Group, Inc.

   Internet Consumer & Business Services    Preferred Stock       Series B         177         13   

RazorGator Interactive Group, Inc.

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

 

 

    

 

 

 

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

                 1,177         13   
                 

 

 

    

 

 

 

Buzznet, Inc.

   Information Services    Preferred Stock       Series C         250         —     

Good Technologies, Inc. (pka Visto Corporation)

   Information Services    Common Stock               603         —     

Solutionary, Inc.

   Information Services    Preferred Stock       Series A-1         18         210   
      Preferred Stock       Series A-2         325         73   
                 

 

 

    

 

 

 

Total Solutionary, Inc.

                    343         283   
                 

 

 

    

 

 

 

Total Equity Information Services (0.06%)*

              1,196         283   
                 

 

 

    

 

 

 

Gelesis, Inc. (6)

   Medical Device & Equipment    Common Stock               —           67   
      Preferred Stock       Series A-1         425         893   
      Preferred Stock       Series A-2         500         729   
                 

 

 

    

 

 

 

Total Gelesis, Inc.

                    925         1,689   

Novasys Medical, Inc.

   Medical Device & Equipment    Preferred Stock       Series D-1         1,000         880   

Optiscan Biomedical, Corp.

   Medical Device & Equipment    Preferred Stock       Series B         3,000         —     
      Preferred Stock       Series C         655         —     
                 

 

 

    

 

 

 

Total Optiscan Biomedical, Corp.

                    3,655         —     
                 

 

 

    

 

 

 

Total Equity Medical Device & Equipment (0.55%)*

                 5,580         2,569   
                 

 

 

    

 

 

 

NuGEN Technologies, Inc.

   Biotechnology Tools    Preferred Stock       Series C         500         540   
                 

 

 

    

 

 

 

Total Equity Biotechnology Tools (0.12%)*

                 500         540   
                 

 

 

    

 

 

 

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         227   
      Preferred Stock       Series C         283         257   
                 

 

 

    

 

 

 

Total Gynesonics, Inc.

                    533         484   
                 

 

 

    

 

 

 

Total Equity Surgical Devices (0.10%)*

                 1,933         484   
                 

 

 

    

 

 

 

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

   Media/Content/ Info    Preferred Stock       Series D         1,000         513   
                 

 

 

    

 

 

 

Total Equity Media/Content/Info (0.11%)*

                 1,000         513   
                 

 

 

    

 

 

 

Total Equity (10.19%)

                    47,370         47,812   
                 

 

 

    

 

 

 

Total Investments (165.09%)

               $ 792,782       $ 774,459   
                 

 

 

    

 

 

 

 

* 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 $19,944, $38,763 and $18,819 respectively. The tax cost of investments is $794,938.
(3) Except for warrants in 20 publicly traded companies and common stock in eight publicly traded companies, all investments are restricted at September 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)