Hercules Capital
HERCULES TECHNOLOGY GROWTH CAPITAL INC (Form: 10-Q, Received: 08/01/2013 16:24:10)
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, 2013

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 July 30, 2013, there were 61,631,201 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, 2013 (unaudited) and December 31, 2012

     3   
  

Consolidated Statement of Operations for the three and six month periods ended June 30, 2013 and 2012 (unaudited)

     5   
  

Consolidated Statement of Changes in Net Assets for the three and six month periods ended June 30, 2013 and 2012 (unaudited)

     6   
  

Consolidated Statement of Cash Flows for the three and six month periods ended June 30, 2013 and 2012 (unaudited)

     7   
  

Consolidated Schedule of Investments as of June 30, 2013 (unaudited)

     8   
  

Consolidated Schedule of Investments as of December 31, 2012

     26   
  

Notes to Consolidated Financial Statements (unaudited)

     41   

Item 2.

  

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

     65   

Item 3.

  

Quantitative and Qualitative Disclosures About Market Risk

     94   

Item 4.

  

Controls and Procedures

     95   

PART II. OTHER INFORMATION

     96   

Item 1.

  

Legal Proceedings

     96   

Item 1A.

  

Risk Factors

     96   

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

     100   

Item 3.

  

Defaults Upon Senior Securities

     100   

Item 4.

  

Mine Safety Disclosures

     100   

Item 5.

  

Other Information

     100   

Item 6.

  

Exhibits

     100   

SIGNATURES

     101   

 

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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,
2013
    December 31,
2012
 

Assets

    

Investments:

    

Non-control/Non-affiliate investments (cost of $1,032,780 and $896,031, respectively)

   $ 1,027,555      $ 894,428   

Affiliate investments (cost of $17,222 and $18,307, respectively)

     13,565        11,872   
  

 

 

   

 

 

 

Total investments, at value (cost of $1,050,002 and $914,338, respectively)

     1,041,120        906,300   

Cash and cash equivalents

     133,944        182,994   

Restricted Cash

     1,658        —     

Interest receivable

     10,245        9,635   

Other assets

     23,886        24,714   
  

 

 

   

 

 

 

Total assets

   $ 1,210,853      $ 1,123,643   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable and accrued liabilities

   $ 11,402      $ 11,575   

Long-term Liabilities (Convertible Senior Note)

     71,977        71,436   

Asset-Backed Notes

     110,270        129,300   

2019 Notes

     170,364        170,364   

Long-term SBA Debentures

     225,000        225,000   
  

 

 

   

 

 

 

Total liabilities

   $ 589,013      $ 607,675   

Commitments and Contingencies (Note 9)

    

Net assets consist of:

    

Common stock, par value

     62        53   

Capital in excess of par value

     662,818        564,508   

Unrealized depreciation on investments and other assets

     (7,204     (7,947

Accumulated realized losses on investments

     (32,732     (36,916

Distributions in excess of investment income

     (1,104     (3,730
  

 

 

   

 

 

 

Total net assets

   $ 621,840      $ 515,968   
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 1,210,853      $ 1,123,643   
  

 

 

   

 

 

 

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

     61,637        52,925   

Net asset value per share

   $ 10.09      $ 9.75   

See notes to consolidated financial statements.

 

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Table of Contents

The following table presents the assets and liabilities of our consolidated variable interest entity (“VIE”). The assets of the VIE can only be used to settle obligations of the consolidated VIE, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.

 

(Dollars in thousands)

   June 30,
2013
     December 31,
2012
 

ASSETS

     

Restricted Cash

   $ 1,658       $ —     

Total investments, at value (cost of $206,594 and $0, respectively)

     203,869         226,997   
  

 

 

    

 

 

 

Total assets

   $ 205,527       $ 226,997   
  

 

 

    

 

 

 

LIABILITIES

     

Asset-Backed Notes

   $ 110,270       $ 129,300   
  

 

 

    

 

 

 

Total liabilities

   $ 110,270       $ 129,300   
  

 

 

    

 

 

 

See notes to consolidated financial statements.

 

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HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
           2013             2012             2013             2012      

Investment income:

        

Interest Income

        

Non-Control/Non-Affiliate investments

   $ 29,780      $ 20,934      $ 58,099      $ 40,989   

Affiliate investments

     514        205        1,124        450   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     30,294        21,139        59,223        41,439   
  

 

 

   

 

 

   

 

 

   

 

 

 

Fees

        

Non-Control/Non-Affiliate investments

     4,227        2,706        6,255        4,760   

Affiliate investments

     4        —          4        —     

Control investments

     —          13        —          26   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fees

     4,231        2,719        6,259        4,786   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     34,525        23,858        65,482        46,225   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Interest

     7,570        4,507        15,202        8,403   

Loan fees

     1,191        731        2,269        1,808   

General and administrative

     2,403        1,864        4,655        3,681   

Employee Compensation:

        

Compensation and benefits

     4,164        3,251        7,962        6,647   

Stock-based compensation

     1,587        1,195        2,753        2,002   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total employee compensation

     5,751        4,446        10,715        8,649   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     16,915        11,548        32,841        22,541   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     17,610        12,310        32,641        23,684   

Net realized gain on investments

        

Non-Control/Non-Affiliate investments

     2,192        8,263        4,184        11,140   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized gain on investments

     2,192        8,263        4,184        11,140   

Net unrealized appreciation (depreciation) on investments and other assets

        

Non-Control/Non-Affiliate investments

     1,987        (21,295     2,087        (19,761

Affiliate investments

     (910     1,083        (1,344     2,377   

Control investments

     —          (313     —          (287
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net unrealized appreciation (depreciation) on investments and other assets

     1,077        (20,525     743        (17,671
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized (unrealized) gain (loss)

     3,269        (12,262     4,927        (6,531
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

   $ 20,879      $ 48      $ 37,568        17,153   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income before investment gains and losses per common share:

        

Basic

   $ 0.29      $ 0.25      $ 0.56      $ 0.48   
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in net assets per common share:

        

Basic

   $ 0.34      $ —        $ 0.65      $ 0.35   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.34      $ —        $ 0.64      $ 0.35   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

        

Basic

     60,339        48,616        57,029        47,817   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     61,145        48,687        57,802        47,948   
  

 

 

   

 

 

   

 

 

   

 

 

 

See notes to consolidated financial statements.

 

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HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

    Common Stock     Capital  in
excess

of par value
    Unrealized
Appreciation

on Investments
    Accumulated
Realized
Gains(Losses)

on Investments
    Distributions
in Excess of
Investment

Income
    Provision for
Income Taxes
on Investment

Gains
    Net
Assets
 
    Shares     Par Value              

Balance at December 31, 2011

    43,853      $ 44      $ 484,244      $ (3,431   $ (43,042   $ (6,432   $ (342   $ 431,041   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

    —          —          —          (17,671     11,140        23,684        —          17,153   

Issuance of common stock

    490        —          2,674        —          —          —          —          2,674   

Issuance of common stock under restricted stock plan

    575        1        (1     —          —          —          —          —     

Issuance of common stock as stock dividend

    117        —          1,230        —          —          —          —          1,230   

Retired shares from net issuance

    (292     —          (3,670     —          —          —          —          (3,670

Public Offering

    5,000        5        47,649        —          —          —          —          47,654   

Dividends declared

    —          —          —          —          —          (23,340     —          (23,340

Stock-based compensation

    —          —          2,039        —          —          —          —          2,039   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2012

    49,743      $ 50      $ 534,165      $ (21,102   $ (31,902   $ (6,088   $ (342   $ 474,781   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

    52,925      $ 53      $ 564,509      $ (7,947   $ (36,916   $ (3,389   $ (342   $ 515,968   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

    —          —          —          743        4,184        32,641        —          37,568   

Issuance of common stock

    612        1        7,250        —          —          —          —          7,251   

Issuance of common stock under restricted stock plan

    501        1        (1     —          —          —          —          —     

Issuance of common stock as stock dividend

    93        0        1,189        —          —          —          —          1,189   

Retired shares from net issuance

    (544     (1     (8,390     —          —          —          —          (8,391

Public Offering

    8,050        8        95,469        —          —          —          —          95,477   

Dividends declared

    —          —          —          —          —          (30,014     —          (30,014

Stock-based compensation

    —          —          2,792        —          —          —          —          2,792   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2013

    61,637      $ 62      $ 662,818      $ (7,204   $ (32,732   $ (762   $ (342   $ 621,840   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

See notes to consolidated financial statements.

 

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Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

     For the Six Months Ended
June 30,
 
     2013     2012  

Cash flows from operating activities:

    

Net increase in net assets resulting from operations

   $ 37,568      $ 17,153   

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:

    

Purchase of investments

     (341,678     (177,725

Principal payments received on investments

     203,357        99,596   

Proceeds from sale of investments

     11,401        18,257   

Net unrealized (appreciation) / depreciation on investments and other assets

     (743     17,671   

Net realized gain on investments

     (4,184     (11,140

Accretion of paid-in-kind principal

     (1,420     (584

Accretion of loan discounts

     (2,702     (2,783

Accretion of loan discount on Convertible Senior Notes

     541        541   

Accretion of loan exit fees

     (4,465     (2,111

Change in deferred loan origination revenue

     2,929        269   

Unearned fees related to unfunded commitments

     1,459        (1,280

Amortization of debt fees and issuance costs

     1,988        1,374   

Depreciation

     88        141   

Stock-based compensation and amortization of restricted stock grants

     2,792        2,040   

Change in operating assets and liabilities:

    

Interest receivable

     (610     (1,292

Prepaid expenses and other assets

     153        (1,420

Accounts payable

     655        41   

Accrued liabilities

     (721     (1,429
  

 

 

   

 

 

 

Net cash used in operating activities

     (93,593     (42,681

Cash flows from investing activities:

    

Purchases of capital equipment

     (157     (40

Investment in restricted cash

     (1,658     —     

Other long-term assets

     (30     —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (1,845     (40

Cash flows from financing activities:

    

Proceeds from issuance of common stock, net

     94,250        46,658   

Dividends paid

     (28,825     (22,110

Issuance of 2019 Notes

     —          43,000   

Borrowings of credit facilities

     —          15,000   

Repayments of credit facilities

     (19,036     (46,307

Cash paid for debt issuance costs

     —          (1,854
  

 

 

   

 

 

 

Net cash provided by financing activities

     46,389        34,387   

Net decrease in cash and cash equivalents

     (49,049     (8,334

Cash and cash equivalents at beginning of period

     182,994        64,474   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 133,944      $ 56,140   
  

 

 

   

 

 

 

See notes to consolidated financial statements.

 

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Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

Maturity: Upon Liqudation

     

Paratek Pharmaceuticals, Inc. (9)

   Drug Discovery & Development    Senior Debt      
     

Matures upon liqudation

Interest rate Fixed 10.00%

  $ 45      $ 45      $ 45   
      Senior Debt      
     

Matures upon liqudation

Interest rate Fixed 10.00%

  $ 36        31        31   
      Senior Debt      
     

Matures upon liqudation

No intial interest rate

  $ 28        28        28   
         

 

 

   

 

 

 

Total Paratek Pharmaceuticals, Inc.

            104        104   

Maturity: Under 1 Year Maturity

     

Chroma Therapeutics, Ltd. (5)(10)

   Drug Discovery & Development      Senior Debt      
     

Matures November 2013

Interest rate Prime + 7.75% or

Floor rate of 12.00%

  $ 2,290        3,003        3,003   

Maturity: 1-5 Years Maturity

     

ADMA Biologics, Inc.

   Drug Discovery & Development    Senior Debt      
     

Matures April 2016

Interest rate Prime + 2.75% or

Floor rate of 8.50%

  $ 5,000        4,881        4,703   

Anacor Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Senior Debt      
     

Matures July 2017

Interest rate Prime + 6.40% or

Floor rate of 11.65%

  $ 30,000        28,890        28,890   

Aveo Pharmaceuticals, Inc. (3)(11)

   Drug Discovery & Development    Senior Debt      
     

Matures September 2015

Interest rate Prime + 7.15% or

Floor rate of 11.90%

  $ 24,206        24,206        24,448   

Cell Therapeutics, Inc. (3)

   Drug Discovery & Development    Senior Debt (11)      
     

Matures October 2016

Interest rate Prime + 9.00% or

Floor rate of 12.25%

  $ 10,000        9,780        9,780   

Cempra, Inc. (3)

   Drug Discovery & Development    Senior Debt (11)      
     

Matures June 2017

Interest rate Prime + 6.30% or

Floor rate of 9.55%

  $ 15,000        14,675        14,559   

Concert Pharmaceuticals, Inc.

   Drug Discovery & Development    Senior Debt (4)      
     

Matures October 2015

Interest rate Prime + 3.25% or

Floor rate of 8.50%

  $ 18,799        18,542        17,942   

Coronado BioSciences, Inc. (3)

   Drug Discovery & Development    Senior Debt (11)      
     

Matures March 2016

Interest rate Prime + 6.00% or

Floor rate of 9.25%

  $ 15,000        14,916        14,389   

Dicerna Pharmaceuticals, Inc.

   Drug Discovery & Development    Senior Debt      
     

Matures January 2015

Interest rate Prime + 4.40% or

Floor rate of 10.15%

  $ 7,148        7,051        6,922   

Insmed, Inc.

   Drug Discovery & Development    Senior Debt (11)      
     

Matures January 2016

Interest rate Prime + 4.75% or

Floor rate of 9.25%

  $ 20,000        19,584        19,426   

Merrimack Pharmaceuticals, Inc. (3)

   Drug Discovery & Development    Senior Debt      
     

Matures May 2016

Interest rate Prime + 5.30% or

Floor rate of 10.55%

  $ 40,000        40,013        38,974   

Neuralstem, Inc. (3)

   Drug Discovery & Development    Senior Debt      
     

Matures June 2016

Interest rate Prime + 7.75% or

Floor rate of 11.00%

  $ 8,000        7,726        7,726   

NeurogesX, Inc.

   Drug Discovery & Development    Senior Debt      
     

Matures February 2015

Interest rate Prime + 7.50% or

Floor rate of 10.75%

  $ 3,876        4,285        4,285   

See notes to consolidated financial statements.

 

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Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

UniQure Biopharma B.V. (5)(10)

  Drug Discovery & Development   Senior Debt      
   

Matures October 2016

Interest rate Prime + 8.60% or

Floor rate of 11.85%

  $ 10,000      $ 9,831      $ 9,831   
       

 

 

   

 

 

 

Total Debt Drug Discovery & Development (32.96%)*

      207,487        204,982   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Bridgewave Communications

  Communications & Networking   Senior Debt      
   

Matures March 2016

Interest rate Prime + 8.00% or

PIK Interest 8.00%

  $ 7,500        7,451        3,911   

OpenPeak, Inc.

  Communications & Networking   Senior Debt (11)      
   

Matures July 2015

Interest rate Prime + 8.75% or

Floor rate of 12.00%

  $ 12,805        13,187        13,315   

Spring Mobile Solutions, Inc.

  Communications & Networking   Senior Debt      
   

Matures November 2016

Interest rate Prime + 8.00% or

Floor rate of 11.25%

Deferred Interest 2.50%

  $ 20,000        19,381        19,381   

UPH Holdings, Inc. (8)

  Communications & Networking   Senior Debt      
   

Matures April 2015

Interest rate Libor + 11.00% or

Floor rate of 13.50%

  $ 5,971        5,859        5,500   
    Senior Debt      
   

Matures September 2015

Interest rate Libor + 11.00% or

Floor rate of 13.50%

  $ 338        334        —     
    Senior Debt      
   

Matures January 2017

Interest rate Libor + 11.00% or

Floor rate of 13.50%

  $ 3,594        3,594        —     
       

 

 

   

 

 

 

Total UPH Holdings, Inc.

          9,787        5,500   
       

 

 

   

 

 

 

Total Debt Communications & Networking (6.77%)*

      49,806        42,107   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Clustrix, Inc.

  Electronics & Computer Hardware   Senior Debt      
   

Matures December 2015

Interest rate Prime + 6.50% or

Floor rate of 9.75%

  $ 639        622        622   

Identive Group, Inc. (3)

  Electronics & Computer Hardware   Senior Debt (11)      
   

Matures November 2015

Interest rate Prime + 7.75% or

Floor rate 11.00%

  $ 7,284        7,326        7,134   

 

See notes to consolidated financial statements.

 

9


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

OCZ Technology Group, Inc. (3)

  Electronics & Computer Hardware   Senior Debt      
   

Matures April 2016

Interest rate Prime + 8.75% or

Floor rate of 12.50%,

PIK Interest 3.00%

  $ 10,000      $ 9,449      $ 9,359   

Plures Technologies, Inc. (3)

  Electronics & Computer Hardware   Senior Debt      
   

Matures October 2016

Interest rate Prime + 12.75% or

Floor rate of 16.00%,

PIK Interest 4.00%

  $ 2,000        1,895        1,895   
       

 

 

   

 

 

 

Total Debt Electronics & Computer Hardware (3.06%)

      19,292        19,010   
       

 

 

   

 

 

 

Maturity: Upon Liquidation

     
Tada Innovations, Inc. (9)   Software   Senior Debt      
   

Matures upon liqudation

Interest rate Fixed 8.00%

    $100        100        —     

Maturity: 1-5 Years Maturity

     
Box, Inc.   Software   Senior Debt (4)      
   

Matures March 2016

Interest rate Prime + 3.75% or

Floor rate of 7.50%

    $10,000        9,987        9,675   
    Senior Debt (4)      
   

Matures July 2014

Interest rate Prime + 5.25% or

Floor rate of 8.50%

    $712        781        781   
    Senior Debt (11)      
   

Matures July 2016

Interest rate Prime + 5.13% or

Floor rate of 8.88%

    $20,000        20,285        19,884   
       

 

 

   

 

 

 

Total Box, Inc.

          31,053        30,340   
Clickfox, Inc.   Software   Senior Debt      
   

Matures November 2015

Interest rate Prime + 8.25% or

Floor rate of 11.50%

    $7,159        6,680        6,895   
EndPlay, Inc.   Software   Senior Debt      
   

Matures August 2015

Interest rate Prime + 7.35% or

Floor rate 10.6%

    $1,935        1,894        1,886   
Hillcrest Laboratories, Inc   Software   Senior Debt      
   

Matures July 2015

Interest rate Prime + 7.50% or

Floor rate of 10.75%

    $3,406        3,355        3,341   
JackBe Corporation   Software   Senior Debt      
   

Matures January 2016

Interest rate Prime + 7.25% or

Floor rate of 10.50%

    $3,000        2,944        2,982   
Kxen, Inc.   Software   Senior Debt (4)      
   

Matures January 2015

Interest rate Prime + 5.08% or

Floor rate of 8.33%

    $1,814        1,876        1,741   
Mobile Posse, Inc.   Software   Senior Debt      
   

Matures December 2016

Interest rate Prime + 7.50% or

Floor rate of 10.75%

    $4,000        3,809        3,809   

 

See notes to consolidated financial statements.

 

10


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

Neos Geosolutions, Inc.

   Software    Senior Debt      
     

Matures May 2016

Interest rate Prime + 5.75% or

Floor rate of 9.50%

  $ 4,000      $ 3,982      $ 3,836   

StartApp, Inc.

   Software    Senior Debt      
     

Matures March 2017

Interest rate Prime + 7.75% or

Floor rate of 11.00%

  $ 2,500        2,468        2,468   

TouchCommerce, Inc.

   Software    Senior Debt      
     

Matures June 2017

Interest rate Prime + 6.00% or

Floor rate of 10.25%

  $ 5,000        4,683        4,684   

Total TouchCommerce, Inc.

   Software    Revolving Line of Credit      
     

Matures December 2014

Interest rate Prime + 2.25% or

Floor rate of 6.50%

  $ 2,111        2,046        2,046   
         

 

 

   

 

 

 

Total Debt Software (10.30%)*

      64,890        64,028   
         

 

 

   

 

 

 

Maturity: Under 1 Year Maturity

     

Quatrx Pharmaceuticals Company (9)

   Specialty Pharmaceuticals    Senior Debt      
     

Matures March 2014

Interest rate Fixed 8.00%

  $ 1,888        1,888        3,074   

Maturity: 1-5 Years Maturity

     

Rockwell Medical, Inc.

   Specialty Pharmaceuticals    Senior Debt      
     

Matures December 2016

Interest rate Prime + 9.25% or

Floor rate of 12.50%

  $ 20,000        19,770        19,770   
         

 

 

   

 

 

 

Total Debt Specialty Pharmaceuticals 3.67%)*

      21,658        22,844   
         

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Achronix Semiconductor Corporation

   Semiconductors    Senior Debt      
     

Matures January 2015

Interest rate Prime + 10.60% or

Floor rate of 13.85%

  $ 1,453        1,427        1,398   
         

 

 

   

 

 

 

Total Debt Semiconductors (0.22%)*

      1,427        1,398   
         

 

 

   

 

 

 

Maturity: Under 1 Year Maturity

     

Alexza Pharmaceuticals, Inc. (3)

   Drug Delivery    Senior Debt      
     

Matures October 2013

Interest rate Prime + 6.50% or

Floor rate of 10.75%

  $ 2,098        2,527        2,527   

Maturity: 1-5 Years Maturity

     

AcelRX Pharmaceuticals, Inc. (3)

   Drug Delivery    Senior Debt (11)      
     

Matures December 2014

Interest rate Prime + 3.25% or

Floor rate of 8.50%

  $ 12,525        12,540        12,323   

BIND Biosciences, Inc.

   Drug Delivery    Senior Debt      
     

Matures September 2016

Interest rate Prime + 7.00% or

Floor rate of 10.25%

  $ 4,500        4,372        4,372   

 

See notes to consolidated financial statements.

 

11


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

Intelliject, Inc.

  Drug Delivery   Senior Debt (11)      
   

Matures June 2016

Interest rate Prime + 5.75% or

Floor rate of 11.00%

  $ 15,000      $ 14,850      $ 15,201   

Nupathe, Inc. (3)

  Drug Delivery   Senior Debt      
   

Matures May 2016

Interest rate Prime - 3.25% or

Floor rate of 9.85%

  $ 8,500        8,275        8,335   

Revance Therapeutics, Inc.

  Drug Delivery   Senior Debt      
   

Matures March 2015

Interest rate Prime + 6.60% or

Floor rate of 9.85%

  $ 14,705        14,787        14,470   
       

 

 

   

 

 

 

Total Debt Drug Delivery (9.20%)*

      57,351        57,228   
       

 

 

   

 

 

 

Maturity: Under 1 Year Maturity

     

Loku, Inc. (9)

  Internet Consumer & Business Services   Senior Debt      
   

Matures June 2013

Interest rate Fixed 6.00%

  $ 100        100        —     

Tectura Corporation

  Internet Consumer & Business Services   Revolving Line of Credit      
   

Matures July 2013

Interest rate LIBOR + 10.75% or

Floor rate of 14.00%

PIK Interest 4.50%

  $ 16,340        18,197        17,579   
    Senior Debt      
   

Matures July 2013

Interest rate LIBOR + 10.00% or

Floor rate of 13.00%

  $ 563        563        563   
    Senior Debt      
   

Matures July 2013

Interest rate LIBOR + 10.00% or

Floor rate of 13.00%

  $ 4,000        4,000        4,000   
       

 

 

   

 

 

 

Total Tectura Corporation

          22,760        22,142   

Maturity: 1-5 Years Maturity

     

Ahhha, Inc. (8)

  Internet Consumer & Business Services   Senior Debt      
   

Matures January 2015

Interest rate Fixed 12.00%

  $ 350        347        —     

Blurb, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures December 2015

Interest rate Prime + 5.25% or

Floor rate 8.50%

  $ 7,770        7,561        7,433   

CashStar, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures June 2016

Interest rate Prime + 6.25% or Floor

rate 10.50%, PIK Interest 1.00%

  $ 4,000        3,899        3,899   

Education Dynamics, LLC

  Internet Consumer & Business Services   Senior Debt      
   

Matures March 2016

Interest rate Fixed 12.50%, PIK

Interest 1.50%

  $ 26,000        25,792        24,798   

Just.Me, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures June 2015

Interest rate Prime + 2.50% or

Floor rate 5.75%

  $ 722        714        —     
    Senior Debt      
   

Matures June 2015

Interest rate Prime + 5.00% or

Floor rate 8.25%

  $ 723        710        694   
       

 

 

   

 

 

 

Total Just.Me, Inc.

          1,423        694   

NetPlenish, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures April 2015

Interest rate Fixed 10.00%

  $ 496        488        250   

Progress Financial Corporation

  Internet Consumer & Business Services   Senior Debt      
   

Matures July 2014

Interest rate Prime + 6.75% or

Floor rate 12.00%

  $ 5,000        4,860        4,860   

Reply! Inc.

  Internet Consumer & Business Services   Senior Debt (11)      
   

Matures September 2015

Interest rate Prime + 6.875% or

Floor rate of 10.125%

PIK Interest 2.00%

  $ 11,031        10,996        10,847   

 

See notes to consolidated financial statements.

 

12


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  
    Senior Debt (11)      
   

Matures September 2015

Interest rate Prime + 7.25% or

Floor rate of 11.00%

PIK Interest 2.00%

  $ 2,000      $ 1,980      $ 1,999   
    Senior Debt      
   

Matures February 2016

Interest rate Prime + 7.25% or

Floor rate of 10.50%

PIK Interest 2.00%

  $ 3,000        2,992        2,928   
       

 

 

   

 

 

 

Total Reply! Inc.

          15,968        15,774   

Second Rotation, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures April 2016

Interest rate Prime + 7.00% or

Floor rate of 10.25% , PIK

Interest 2.50%

  $ 12,142        12,096        12,096   
    Revolving Line of Credit      
   

Matures October 2014

Interest rate Prime + 6.50% or

Floor rate of 9.75%

  $ 1,050        1,009        1,009   
       

 

 

   

 

 

 

Total Second Rotation, Inc.

          13,105        13,105   

ShareThis, Inc.

  Internet Consumer & Business Services   Senior Debt      
   

Matures June 2016

Interest rate Prime + 7.50% or

Floor rate of 10.75%

  $ 15,000        14,430        14,430   

Tectura Corporation

  Internet Consumer & Business Services   Senior Debt      
   

Matures December 2014

Interest rate LIBOR + 10.00% or

Floor rate of 13.00%

  $ 6,468        6,419        6,419   

Trulia, Inc. (3)

  Internet Consumer & Business Services   Senior Debt (11)      
   

Matures September 2015

Interest rate Prime + 2.75% or

Floor rate of 6.00%

  $ 4,535        4,481        4,388   
    Senior Debt (11)      
   

Matures September 2015

Interest rate Prime + 5.50% or

Floor rate of 8.75%

  $ 4,550        4,495        4,277   
       

 

 

   

 

 

 

Total Trulia, Inc.

          8,976        8,665   

 

See notes to consolidated financial statements.

 

13


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  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      $ 7,835      $ 7,289   
    Senior Debt      
   

Matures September 2015

Interest rate LIBOR + 7.00% or

Floor rate of 8.50%

  $ 9,528        9,511        8,919   
       

 

 

   

 

 

 

Total Vaultlogix, Inc.

          17,346        16,208   

Wavemarket, Inc.

  Internet Consumer & Business Services   Senior Debt (11)      
   

Matures September 2015

Interest rate Prime + 5.75% or

Floor rate of 9.50%

  $ 10,000        9,877        9,602   
       

 

 

   

 

 

 

Total Debt Internet Consumer & Business Services (23.85%)*

      153,352        148,279   
       

 

 

   

 

 

 

Maturity: Under 1 Year Maturity

     

InXpo, Inc.

    Senior Debt      
  Information Services  

Matures March 2014

Interest rate Prime + 7.50% or

Floor rate of 10.75%

  $ 2,550        2,469        2,294   

Maturity: 1-5 Years Maturity

     

Cha Cha Search, Inc.

  Information Services   Senior Debt      
   

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

  $ 2,081        2,058        2,022   

Eccentex Corporation

  Information Services   Senior Debt (11)      
   

Matures May 2015

Interest rate Prime + 7.00% or

Floor rate of 10.25%

  $ 866        856        370   

Jab Wireless, Inc.

  Information Services   Senior Debt      
   

Matures November 2017

Interest rate Prime + 6.75% or

Floor rate of 8.00%

  $ 30,000        29,803        29,844   
    Senior Debt      
   

Matures November 2017

Interest rate Prime + 6.75% or

Floor rate of 8.00%

  $ 2,000        1,996        1,996   
       

 

 

   

 

 

 

Total Jab Wireless, Inc.

          31,799        31,840   

Womensforum.com, Inc.

  Information Services   Senior Debt (11)      
   

Matures October 2016

Interest rate LIBOR + 6.50% or

Floor rate of 9.25%

  $ 7,800        7,667        7,128   
    Senior Debt (11)      
   

Matures October 2016

Interest rate LIBOR + 7.50% or

Floor rate of 10.25%

PIK Interest 2.00%

  $ 4,500        4,480        4,149   
       

 

 

   

 

 

 

Total Womensforum.com, Inc.

          12,147        11,277   
       

 

 

   

 

 

 

Total Debt Information Services (7.69%)*

      49,329        47,803   
       

 

 

   

 

 

 

Maturity: Upon Liquidation

     

Novasys Medical, Inc. (9)

  Medical Device & Equipment   Senior Debt      
   

Matures upon liqudation

Interest rate Fixed 8.00%

  $ 35        34        34   

Maturity: Under 1 Year Maturity

     

Optiscan Biomedical, Corp. (6)

  Medical Device & Equipment   Senior Debt      
   

Matures December 2013

Interest rate Prime + 8.20% or

Floor rate of 11.45%

  $ 8,260        9,380        9,544   

Oraya Therapeutics, Inc. (9)

  Medical Device & Equipment   Senior Debt (11)      
   

Matures December 2013

Interest rate Fixed 7.00%

  $ 500        500        500   

Maturity: 1-5 Years Maturity

     

Lanx, Inc.

  Medical Device & Equipment   Senior Debt      
   

Matures October 2016

Interest rate Prime + 8.00% or

Floor rate of 11.75%

PIK Interest 2.00%

  $ 13,953        13,634        14,053   
   

Revolving Line of Credit

     
   

Matures October 2015

Interest rate Prime + 5.25% or

Floor rate of 9.00%

  $ 5,500        5,229        5,055   
       

 

 

   

 

 

 

Total Lanx, Inc.

          18,863        19,108   

 

See notes to consolidated financial statements.

 

14


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

Medrobotics Corporation

  Medical Device & Equipment   Senior Debt      
   

Matures March 2016

Interest rate Prime + 7.85% or

Floor rate of 11.10%

  $ 5,000      $ 4,823      $ 4,823   

MELA Sciences, Inc. (3)

  Medical Device & Equipment   Senior Debt      
   

Matures November 2016

Interest rate Prime + 7.20% or

Floor rate of 10.45%

  $ 6,000        5,713        5,748   

NinePoint Medical, Inc.

  Medical Device & Equipment   Senior Debt      
   

Matures January 2016

Interest rate Prime + 5.85% or

Floor rate of 9.10%

  $ 7,000        6,858        6,696   

Oraya Therapeutics, Inc.

  Medical Device & Equipment   Senior Debt      
   

Matures September 2015

Interest rate Prime + 5.50% or

Floor rate of 10.25%

  $ 8,852        8,715        8,798   

United Orthopedic Group, Inc.

  Medical Device & Equipment   Senior Debt      
   

Matures July 2016

Interest rate Prime + 8.60% or

Floor rate of 11.85%

  $ 25,000        24,437        24,437   

SonaCare Medical, LLC

  Medical Device & Equipment   Senior Debt (11)      
   

Matures April 2016

Interest rate Prime + 7.75% or

Floor rate of 11.00%

  $ 10,000        9,842        9,784   
       

 

 

   

 

 

 

Total Debt Medical Device & Equipment (14.39%)*

      89,165        89,472   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Tethys Bioscience Inc.

  Diagnostic   Senior Debt (11)      
   

Matures December 2015

Interest rate Prime + 8.40% or

Floor rate of 11.65%

  $ 10,000        10,175        10,159   
       

 

 

   

 

 

 

Total Debt Diagnostic (1.63%)*

      10,175        10,159   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Labcyte, Inc.

  Biotechnology Tools   Senior Debt (11)      
   

Matures June 2016

Interest rate Prime + 6.70% or

Floor rate of 9.95%

  $ 5,000        4,976        4,941   
       

 

 

   

 

 

 

Total Debt Biotechnology Tools (0.79%)*

      4,976        4,941   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

 

See notes to consolidated financial statements.

 

15


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

MDeverywhere, Inc.

  Healthcare Services, Other   Senior Debt      
   

Matures June 2016

Interest rate LIBOR + 9.50% or

Floor rate of 10.75%

  $ 2,000      $ 1,866      $ 1,866   

MedCall, LLC

  Healthcare Services, Other   Senior Debt      
   

Matures January 2016

Interest rate 7.79% or

Floor rate of 9.50%

  $ 4,648        4,603        4,305   
    Senior Debt      
   

Matures January 2016

Interest rate LIBOR +8.00% or

Floor rate of 10.00%

  $ 3,825        3,774        3,603   
       

 

 

   

 

 

 

Total MedCall, LLC

          8,377        7,908   

Orion HealthCorp, Inc.

  Healthcare Services, Other   Senior Debt      
   

Matures June 2017

Interest rate LIBOR + 9.50% or

Floor rate of 11.00%

  $ 9,000        8,807        8,807   
  Healthcare Services, Other   Senior Debt      
   

Matures June 2017

Interest rate LIBOR + 10.50% or

Floor rate of 12.00%

PIK Interest 3.00%

  $ 6,500        6,361        6,361   
  Healthcare Services, Other   Revolving Line of Credit      
   

Matures June 2016

Interest rate LIBOR + 8.25% or

Floor rate of 9.50%

  $ 500        457        457   
       

 

 

   

 

 

 

Total Orion HealthCorp, Inc.

          15,625        15,625   

Pacific Child & Family Associates, LLC

  Healthcare Services, Other   Senior Debt      
   

Matures January 2015

Interest rate LIBOR + 9.00% or

Floor rate of 11.50%

  $ 2,579        2,627        2,567   
  Healthcare Services, Other   Revolving Line of Credit      
   

Matures January 2015

Interest rate LIBOR + 11.00% or

Floor rate of 14.00%,

PIK interest 3.75%

  $ 5,900        6,721        6,495   
       

 

 

   

 

 

 

Total Pacific Child & Family Associates, LLC

          9,348        9,062   

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%

  $ 13,427        13,280        13,038   
       

 

 

   

 

 

 

Total Debt Health Services, Other (7.64%)*

      48,496        47,499   
       

 

 

   

 

 

 

Maturity: 1-5 Years Maturity

     

Entrigue Surgical, Inc.

  Surgical Devices   Senior Debt      
   

Matures December 2014

Interest rate Prime + 5.90% or

Floor rate of 9.65%

  $ 1,898        1,899        1,899   

Transmedics, Inc.

  Surgical Devices   Senior Debt      
   

Matures November 2015

Interest rate Fixed 12.95%

  $ 7,250        7,144        7,144   
       

 

 

   

 

 

 

Total Debt Surgical Devices (1.46%)*

      9,043        9,043   
       

 

 

   

 

 

 

 

See notes to consolidated financial statements.

 

16


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Principal
Amount
    Cost (2)     Value (3)  

Maturity: 1-5 Years Maturity

     

Westwood One Communications

  Media/Content/ Info   Senior Debt      
   

Matures October 2016

Interest rate LIBOR + 6.50% or

Floor rate of 8.00%

  $ 18,157      $ 16,930      $ 16,910   

Zoom Media Corporation

  Media/Content/ Info   Senior Debt      
   

Matures December 2015

Interest rate Prime + 7.25% or

Floor rate of 10.50%, PIK 3.75%

  $ 5,000        4,835        4,761   
  Media/Content/ Info   Revolving Line of Credit      
   

Matures December 2014

Interest rate Prime + 5.25% or

Floor rate of 8.50%

  $ 4,000        3,772        3,576   
       

 

 

   

 

 

 

Total Zoom Media Corporation

          8,607        8,337   
       

 

 

   

 

 

 

Total Debt Media/Content/Info (4.06%)*

      25,537        25,247   
       

 

 

   

 

 

 

Maturity: Under 1 Year Maturity

     

BrightSource Energy, Inc.

  Clean Tech   Senior Debt      
   

Matures January 2014

Interest rate Prime + 8.25% or

Floor rate of 11.50%

  $ 35,000        34,913        34,913   

Maturity: 1-5 Years Maturity

     

Agrivida, Inc.

  Clean Tech   Senior Debt      
   

Matures December 2016

Interest rate Prime + 6.75% or

Floor rate of 10.00%

  $ 6,000        5,780        5,780   

Alphabet Energy, Inc.

  Clean Tech   Senior Debt      
   

Matures February 2015

Interest rate Prime + 5.75% or

Floor rate of 9.00%

  $ 1,558        1,486        1,486   

American Supercondutor Corporation (3)

  Clean Tech   Senior Debt (11)      
   

Matures December 2014

Interest rate Prime + 7.25% or

Floor rate of 11.00%

  $ 6,923        7,102        7,102   

Bioamber, Inc. (5)(10)

  Clean Tech   Senior Debt      
   

Matures June 2016

Interest rate Prime + 6.75% or

Floor rate of 10.00%

  $ 25,000        24,375        24,375   

Enphase Energy, Inc.

  Clean Tech   Senior Debt (11)      
   

Matures June 2014

Interest rate Prime + 5.75% or

Floor rate of 9.00%

  $ 2,564        2,583        2,550   
  Clean Tech   Senior Debt      
   

Matures August 2016

Interest rate Prime + 8.25% or

Floor rate of 11.50%

  $ 7,400        7,379        7,207   
       

 

 

   

 

 

 

Total Enphase Energy, Inc.

          9,962        9,757   

Fulcrum Bioenergy, Inc.

  Clean Tech   Senior Debt      
   

Matures March 2016

Interest rate Prime + 7.75% or

Floor rate of 11.00%

  $ 10,000        9,882        9,882   

Glori Energy, Inc.

  Clean Tech   Senior Debt (11)      
   

Matures June 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

  $ 7,111        7,071        7,045   

 

See notes to consolidated financial statements.

 

17


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment (1)

   Principal
Amount
     Cost (2)      Value (3)  

Scifiniti (fka Integrated Photovoltaics, Inc.)

   Clean Tech    Senior Debt         
     

Matures February 2015

Interest rate Prime + 7.38% or

Floor rate of 10.63%

   $ 2,032       $ 1,976       $ 1,960   

Polyera Corporation

   Clean Tech    Senior Debt         
     

Matures June 2016

Interest rate Prime + 6.75% or

Floor rate of 10.00%

   $ 3,000         2,990         2,883   

Redwood Systems, Inc.

   Clean Tech    Senior Debt         
     

Matures February 2016

Interest rate Prime + 6.50% or

Floor rate of 9.75%

   $ 5,000         5,024         5,024   

SCIenergy, Inc.

   Clean Tech    Senior Debt (4)         
     

Matures September 2015

Interest rate Prime + 8.75% or

Floor rate 12.00%

   $ 4,979         4,954         5,038   

Stion Corporation

   Clean Tech    Senior Debt (4)         
     

Matures February 2015

Interest rate Prime + 6.75% or

Floor rate of 10.00%

   $ 5,927         6,024         5,945   

TAS Energy, Inc.

   Clean Tech    Senior Debt         
     

Matures February 2015

Interest rate Prime + 7.75% or

Floor rate of 11.00%

   $ 15,000         14,753         15,054   
      Senior Debt         
     

Matures February 2015

Interest rate Prime + 6.25% or

Floor rate of 9.50%

   $ 5,000         4,812         4,745   
           

 

 

    

 

 

 

Total TAS Energy, Inc.

              19,565         19,799   

TPI Composites, Inc.

   Clean Tech    Senior Debt         
     

Matures June 2016

Interest rate Prime + 8.00% or

Floor rate of 11.25%

   $ 15,000         14,639         14,639   
           

 

 

    

 

 

 

Total Debt Clean Tech (25.03%)*

        155,743         155,628   
           

 

 

    

 

 

 
              
           

 

 

    

 

 

 

Total Debt (152.72%)

      $ 967,727       $ 949,668   
           

 

 

    

 

 

 

 

See notes to consolidated financial statements.

 

18


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

  Series   Shares     Cost (2)     Value (3)  

ADMA Biologics, Inc.

  Drug Discovery & Development     Common Stock Warrants       25,000      $ 129      $ 146   

Acceleron Pharmaceuticals, Inc.

  Drug Discovery & Development   Common Stock Warrants       46,446        39        52   
    Preferred Stock Warrants   Series B     110,270        35        52   
       

 

 

   

 

 

   

 

 

 

Total Warrants Acceleron Pharmaceuticals, Inc.

          156,716        74        104   

Anacor Pharmaceuticals, Inc. (3)

  Drug Discovery & Development   Preferred Stock Warrants   Series A       1,155        1,233   

Anthera Pharmaceuticals Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       321,429        984        27   

Cell Therapeutics, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       679,040        300        262   

Cempra, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       39,038        458        356   

Chroma Therapeutics, Ltd. (5)(10)

  Drug Discovery & Development   Preferred Stock Warrants   Series D     325,261        490        500   

Concert Pharmaceuticals, Inc.

  Drug Discovery & Development   Preferred Stock Warrants   Series C     400,000        367        207   

Coronado Biosciences, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       73,009        142        235   

Dicerna Pharmaceuticals, Inc.

  Drug Discovery & Development   Common Stock Warrants       50,000        28        6   
    Preferred Stock Warrants   Series A     525,000        236        66   
    Preferred Stock Warrants   Series B     660,000        311        82   
       

 

 

   

 

 

   

 

 

 

Total Warrants Dicerna Pharmaceuticals, Inc.

          1,235,000        575        154   

Horizon Pharma, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       22,408        231        —     

Merrimack Pharmaceuticals, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       302,143        155        777   

Neuralstem, Inc. (3)

  Drug Discovery & Development   Common Stock Warrants       608,695        295        445   

Omthera Pharmaceuticals, Inc. (3)

  Drug Discovery & Development   Preferred Stock Warrants   Series A       212        492   

Portola Pharmaceuticals, Inc. (3)

  Drug Discovery & Development   Preferred Stock Warrants   Series B     687,023        152        631   
         

 

 

   

 

 

 

Total Warrants Drug Discovery & Development (0.90%)*

        5,719        5,569   
         

 

 

   

 

 

 

Bridgewave Communications

  Communications & Networking   Preferred Stock Warrants   Series 5     2,942,618        753        —     

Intelepeer, Inc.

  Communications & Networking   Preferred Stock Warrants   Series C     117,958        102        183   

Neonova Holding Company

  Communications & Networking   Preferred Stock Warrants   Series A     450,000        94        12   

OpenPeak, Inc.

  Communications & Networking   Preferred Stock Warrants   Series E     25,646        149        —     

PeerApp, Inc.

  Communications & Networking   Preferred Stock Warrants   Series B     298,779        61        49   

Peerless Network, Inc.

  Communications & Networking   Preferred Stock Warrants   Series A     135,000        95        344   

Ping Identity Corporation

  Communications & Networking   Preferred Stock Warrants   Series B     1,136,277        52        79   

UPH Holdings, Inc. (8)

  Communications & Networking   Common Stock Warrants       145,877        130        —     

Purcell Systems, Inc.

  Communications & Networking   Preferred Stock Warrants   Series B     110,000        123        71   

Spring Mobile Solutions, Inc.

  Communications & Networking   Preferred Stock Warrants   Series A       418        507   

Stoke, Inc.

  Communications & Networking   Preferred Stock Warrants   Series C     158,536        53        182   
    Preferred Stock Warrants   Series D     72,727        65        79   
       

 

 

   

 

 

   

 

 

 

Total Stoke, Inc.

          231,263        118        261   
         

 

 

   

 

 

 

Total Warrants Communications & Networking (0.24%)*

        2,095        1,506   
         

 

 

   

 

 

 

 

See notes to consolidated financial statements.

 

19


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

 

Series

  Shares     Cost (2)     Value (3)  

Atrenta, Inc.

  Software   Preferred Stock Warrants   Series D     392,670      $ 121      $ 182   

Box, Inc.

  Software   Preferred Stock Warrants   Series C     271,070        117        2,485   
    Preferred Stock Warrants   Series B     199,219        73        3,549   
    Preferred Stock Warrants   Series D-1     62,255        194        382   
       

 

 

   

 

 

   

 

 

 

Total Box, Inc.

      532,544        384        6,416   

Braxton Technologies, LLC.

  Software   Preferred Stock Warrants   Series A     168,750        188        —     

Central Desktop, Inc.

  Software   Preferred Stock Warrants   Series B     522,823        108        184   

Clickfox, Inc.

  Software   Preferred Stock Warrants   Series B     1,038,563        329        474   
    Preferred Stock Warrants   Series C     592,019        730        296   
       

 

 

   

 

 

   

 

 

 

Total Clickfox, Inc.

      1,630,582        1,059        770   

Daegis Inc. (pka Unify Corporation) (3)

  Software   Common Stock Warrants       718,860        1,434        36   

Endplay, Inc.

  Software   Preferred Stock Warrants   Series B     180,000        67        —     

Forescout Technologies, Inc.

  Software   Preferred Stock Warrants   Series D     399,687        99        411   

Hillcrest Laboratories, Inc.

  Software   Preferred Stock Warrants   Series E     1,865,650        55        170   

JackBe Corporation

  Software   Preferred Stock Warrants   Series C     180,000        73        —     

Kxen, Inc.

  Software   Preferred Stock Warrants   Series D     184,614        47        10   

Mobile Posse, Inc.

  Software   Preferred Stock Warrants   Series A       130        129   

Neos Geosolutions, Inc.

  Software   Preferred Stock Warrants   Series 3     221,150        21        29   

Rockyou, Inc.

  Software   Preferred Stock Warrants   Series B     41,266        117        —     

SugarSync Inc.

  Software   Preferred Stock Warrants   Series CC     332,726        78        153   
    Preferred Stock Warrants   Series DD     107,526        34        34   
       

 

 

   

 

 

   

 

 

 

Total SugarSync Inc.

          440,252        112        187   

Tada Innovations, Inc.

  Software   Preferred Stock Warrants   Series A     20,833        25        —     

TouchCommerce, Inc.

  Software   Preferred Stock Warrants   Series A     992,595        252        250   

White Sky, Inc.

  Software   Preferred Stock Warrants   Series B-2     124,295        53        4   

WildTangent, Inc.

  Software   Preferred Stock Warrants   Series 3A     100,000        238        65   
         

 

 

   

 

 

 

Total Warrants Software (1.42%)*

        4,583        8,843   
         

 

 

   

 

 

 

Clustrix, Inc.

  Electronics & Computer Hardware   Preferred Stock Warrants   Series B     49,732        12        3   

OCZ Technology Group, Inc. (3)

  Electronics & Computer Hardware   Common Stock Warrants       688,073        803        973   

Plures Technologies, Inc. (3)

  Electronics & Computer Hardware   Preferred Stock Warrants   Series A     552,467        124        128   
         

 

 

   

 

 

 

Total Warrant Electronics & Computer Hardware (0.18%)*

        939        1,104   
         

 

 

   

 

 

 

Quatrx Pharmaceuticals Company

  Specialty Pharmaceuticals   Preferred Stock Warrants   Series E     340,534        307        —     
         

 

 

   

 

 

 

Total Warrants Specialty Pharmaceuticals (0.00%)*

        307        —     
         

 

 

   

 

 

 

 

See notes to consolidated financial statements.

 

20


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

 

Series

  Shares     Cost (2)     Value (3)  

CashStar, Inc.

  Consumer & Business Products   Preferred Stock Warrants   Series A     454,545      $ 102      $ 101   

IPA Holdings, LLC

  Consumer & Business Products   Common Stock Warrants       650,000        275        350   

Market Force Information, Inc.

  Consumer & Business Products   Preferred Stock Warrants   Series A     99,286        24        88   

Progress Financial Corporation

  Consumer & Business Products   Preferred Stock Warrants   Series A     130,175        40        40   

Seven Networks, Inc.

  Consumer & Business Products   Preferred Stock Warrants   Series C     1,821,429        174        6   

ShareThis, Inc.

  Consumer & Business Products   Preferred Stock Warrants   Series B     535,905        547        476   

Wavemarket, Inc.

  Consumer & Business Products   Preferred Stock Warrants   Series E     1,083,333        106        52   
         

 

 

   

 

 

 

Total Warrant Consumer & Business Products (0.18%)*

        1,268        1,113   
         

 

 

   

 

 

 

Achronix Semiconductor Corporation

  Semiconductors   Preferred Stock Warrants   Series D     360,000        160        120   

iWatt, Inc.

  Semiconductors   Preferred Stock Warrants   Series C     558,748        46        460   
    Preferred Stock Warrants   Series D     1,954,762        583        1,963   
       

 

 

   

 

 

   

 

 

 

Total iWatt, Inc.

          2,513,510        629        2,423   

Kovio Inc.

  Semiconductors   Preferred Stock Warrants   Series B     319,352        91        —     
         

 

 

   

 

 

 

Total Warrants Semiconductors (0.41%)*

        880        2,543   
         

 

 

   

 

 

 

AcelRX Pharmaceuticals, Inc. (3)

  Drug Delivery   Common Stock Warrants       274,508        178        665   

Alexza Pharmaceuticals, Inc. (3)

  Drug Delivery   Common Stock Warrants       37,639        645        2   

BIND Biosciences, Inc.

  Drug Delivery   Preferred Stock Warrants   Series C-1     150,000        291        451   
    Preferred Stock Warrants   Series D     1,954,762        76        85   
       

 

 

   

 

 

   

 

 

 

Total BIND Biosciences, Inc.

          2,104,762        367        536   

Intelliject, Inc.

  Drug Delivery   Preferred Stock Warrants   Series B     82,500        594        1,094   

NuPathe, Inc. (3)

  Drug Delivery   Common Stock Warrants       106,631        139        136   

Revance Therapeutics, Inc.

  Drug Delivery   Preferred Stock Warrants   Series D     269,663        557        413   

Transcept Pharmaceuticals, Inc. (3)

  Drug Delivery   Common Stock Warrants       61,452        87        17   
         

 

 

   

 

 

 

Total Warrant Drug Delivery (0.46%)*

        2,567        2,863   
         

 

 

   

 

 

 

Blurb, Inc.

  Internet Consumer & Business Services   Preferred Stock Warrants   Series B     439,336        323        533   
    Preferred Stock Warrants   Series C     234,280        636        357   
       

 

 

   

 

 

   

 

 

 

Total Blurb, Inc.

          673,616        959        890   

Invoke Solutions, Inc.

  Internet Consumer & Business Services   Common Stock Warrants       53,084        38        —     

Just.Me

  Internet Consumer & Business Services   Preferred Stock Warrants   Series A     102,299        20        —     

Prism Education Group, Inc.

  Internet Consumer & Business Services   Preferred Stock Warrants   Series B     200,000        43        —     

Reply! Inc.

  Internet Consumer & Business Services   Preferred Stock Warrants   Series B     137,225        320        227   

Second Rotation, Inc.

  Internet Consumer & Business Services   Preferred Stock Warrants   Series D     151,827        165        285   

Tectura Corporation

  Internet Consumer & Business Services   Preferred Stock Warrants   Series B-1     253,378        51        —     
         

 

 

   

 

 

 

Total Warrants Internet Consumer & Business Services (0.23%)*

        1,596        1,402   
         

 

 

   

 

 

 

 

See notes to consolidated financial statements.

 

21


Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2013

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment (1)

 

Series

  Shares     Cost (2)     Value (3)  

Buzznet, Inc.

  Information Services   Preferred Stock Warrants   Series B     19,962      $ 9      $ —     

Cha Cha Search, Inc.

  Information Services   Preferred Stock Warrants   Series F     48,232        58        3   

Eccentex Corporation

  Information Services   Preferred Stock Warrants   Series A     408,719        31        —     

Intelligent Beauty, Inc.

  Information Services   Preferred Stock Warrants   Series B     190,234        230        653   

InXpo, Inc.

  Information Services   Preferred Stock Warrants   Series C     648,400        98        33   
    Preferred Stock Warrants   Series C-1     582,015        49        29   
       

 

 

   

 

 

   

 

 

 

Total InXpo, Inc.

          1,230,415        147        62   

Jab Wireless, Inc.

  Information Services   Preferred Stock Warrants   Series A     266,567        265        365   

RichRelevance, Inc.

  Information Services   Preferred Stock Warrants   Series D     112,749        98        30   

Solutionary, Inc.

  Information Services   Preferred Stock Warrants   Series A-2     111,311        96        496