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, 2014

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

(Address of Principal Executive Offices)

 

94301

(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

 

x

  

Accelerated filer

 

¨

 

 

 

 

Non-accelerated filer

 

¨

  

Smaller reporting company

 

¨

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

On August 4, 2014, there were 63,252,132 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 

 

 


 

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, 2014 (unaudited) and December 31, 2013

  

3

 

 

 

Consolidated Statement of Operations for the three and six month periods ended June 30, 2014 and 2013 (unaudited)

  

5

 

 

 

Consolidated Statement of Changes in Net Assets for the three and six month periods ended June 30, 2014 and 2013 (unaudited)

  

6

 

 

 

Consolidated Statement of Cash Flows for the six month periods ended June 30, 2014 and 2013 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of June 30, 2014 (unaudited)

  

8

 

 

 

Consolidated Schedule of Investments as of December 31, 2013

  

22

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

36

Item 2.

 

 

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

  

62

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

97

Item 4.

 

 

Controls and Procedures

  

97

 

PART II. OTHER INFORMATION

  

99

 

Item 1.

 

Legal Proceedings

  

99

 

 

 

Item 1A. Risk Factors

  

99

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

 

 

 

2


 

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, 2014

 

 

December 31, 2013

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $980,524 and $891,059, respectively)

 

$

983,952

 

 

$

899,314

 

Affiliate investments (cost of $15,053 and $15,238, respectively)

 

 

7,393

 

 

 

10,981

 

Total investments, at value (cost of $995,577 and $906,297, respectively)

 

 

991,345

 

 

 

910,295

 

Cash and cash equivalents

 

 

116,008

 

 

 

268,368

 

Restricted cash

 

 

3,491

 

 

 

6,271

 

Interest receivable

 

 

8,700

 

 

 

8,962

 

Other assets

 

 

29,929

 

 

 

27,819

 

Total assets

 

$

1,149,473

 

 

$

1,221,715

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

10,393

 

 

$

14,268

 

Long-term Liabilities (Convertible Senior Notes)

 

 

73,060

 

 

 

72,519

 

Asset-Backed Notes

 

 

46,547

 

 

 

89,557

 

2019 Notes

 

 

170,364

 

 

 

170,364

 

Long-term SBA Debentures

 

 

190,200

 

 

 

225,000

 

Total liabilities

 

$

490,564

 

 

$

571,708

 

Commitments and Contingencies (Note 10)

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

64

 

 

 

62

 

Capital in excess of par value

 

 

668,673

 

 

 

656,594

 

Unrealized appreciation (depreciation) on investments

 

 

(5,224

)

 

 

3,598

 

Accumulated realized losses on investments

 

 

(7,897

)

 

 

(15,240

)

Undistributed net investment income

 

 

3,293

 

 

 

4,993

 

Total net assets

 

$

658,909

 

 

$

650,007

 

Total liabilities and net assets

 

$

1,149,473

 

 

$

1,221,715

 

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

 

 

63,251

 

 

 

61,837

 

Net asset value per share

 

$

10.42

 

 

$

10.51

 

 

See notes to consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


 

The following table presents the assets and liabilities of our consolidated securitization trust for asset-backed notes (see Note 4), which is a variable interest entity (“VIE”). The assets of our securitization VIE can only be used to settle obligations of our consolidated securitization VIE, these liabilities are only the obligations of our consolidated securitization 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, 2014

 

 

December 31, 2013

 

ASSETS

 

 

 

 

 

 

 

 

Restricted Cash

 

$

3,491

 

 

$

6,271

 

Total investments, at value (cost of $102,927 and $166,513, respectively)

 

 

100,773

 

 

 

165,445

 

Total assets

 

$

104,264

 

 

$

171,716

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Asset-Backed Notes

 

$

46,547

 

 

$

89,557

 

Total liabilities

 

$

46,547

 

 

$

89,557

 

 

See notes to consolidated financial statements.

 

 

4


 

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,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

$

30,384

 

 

$

29,780

 

 

$

59,766

 

 

$

58,099

 

Affiliate investments

 

152

 

 

 

514

 

 

 

1,616

 

 

 

1,124

 

Total interest income

 

30,536

 

 

 

30,294

 

 

 

61,382

 

 

 

59,223

 

Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

3,454

 

 

 

4,227

 

 

 

8,366

 

 

 

6,255

 

Affiliate investments

 

11

 

 

 

4

 

 

 

23

 

 

 

4

 

Total fees

 

3,465

 

 

 

4,231

 

 

 

8,389

 

 

 

6,259

 

Total investment income

 

34,001

 

 

 

34,525

 

 

 

69,771

 

 

 

65,482

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

6,534

 

 

 

7,570

 

 

 

13,682

 

 

 

15,202

 

Loan fees

 

1,091

 

 

 

1,191

 

 

 

3,167

 

 

 

2,269

 

General and administrative

 

2,126

 

 

 

2,403

 

 

 

4,587

 

 

 

4,655

 

Employee Compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

3,233

 

 

 

4,164

 

 

 

7,454

 

 

 

7,962

 

Stock-based compensation

 

2,466

 

 

 

1,587

 

 

 

4,026

 

 

 

2,753

 

Total employee compensation

 

5,699

 

 

 

5,751

 

 

 

11,480

 

 

 

10,715

 

Total operating expenses

 

15,450

 

 

 

16,915

 

 

 

32,916

 

 

 

32,841

 

Net investment income

 

18,551

 

 

 

17,610

 

 

 

36,855

 

 

 

32,641

 

Net realized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

2,470

 

 

 

2,192

 

 

 

7,343

 

 

 

4,184

 

Total net realized gain on investments

 

2,470

 

 

 

2,192

 

 

 

7,343

 

 

 

4,184

 

Net increase in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

(4,378

)

 

 

1,987

 

 

 

(5,418

)

 

 

2,087

 

Affiliate investments

 

(3,452

)

 

 

(910

)

 

 

(3,404

)

 

 

(1,344

)

Total net unrealized appreciation (depreciation) on

   investments

 

(7,830

)

 

 

1,077

 

 

 

(8,822

)

 

 

743

 

Total net realized and unrealized gain (loss)

 

(5,360

)

 

 

3,269

 

 

 

(1,479

)

 

 

4,927

 

Net increase in net assets resulting from operations

$

13,191

 

 

$

20,879

 

 

$

35,376

 

 

$

37,568

 

Net investment income before investment gains and losses per

   common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

0.29

 

 

$

0.59

 

 

$

0.56

 

Change in net assets per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.21

 

 

$

0.34

 

 

$

0.57

 

 

$

0.65

 

Diluted

$

0.20

 

 

$

0.34

 

 

$

0.55

 

 

$

0.64

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

61,089

 

 

 

60,339

 

 

 

60,980

 

 

 

57,029

 

Diluted

 

62,588

 

 

 

61,145

 

 

 

62,642

 

 

 

57,802

 

Dividends declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.28

 

 

$

0.62

 

 

$

0.55

 

 

See notes to consolidated financial statements.

 

 

 

5


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

net investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Accumulated

 

 

(Distributions

 

 

Provision for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Appreciation

 

 

Realized

 

 

in excess of

 

 

Income Taxes

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

(Depreciation)

 

 

Gains(Losses)

 

 

investment

 

 

on Investment

 

 

Net

 

 

Shares

 

 

Par Value

 

 

of par value

 

 

on Investments

 

 

on Investments

 

 

income)

 

 

Gains

 

 

Assets

 

Balance at December 31, 2012

 

52,925

 

 

$

53

 

 

$

564,508

 

 

$

(7,947

)

 

$

(36,916

)

 

$

(3,388

)

 

$

(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

 

 

 

 

 

 

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

 

Balance at December 31, 2013

 

61,837

 

 

$

62

 

 

$

656,594

 

 

$

3,598

 

 

$

(15,240

)

 

$

5,335

 

 

$

(342

)

 

$

650,007

 

Net increase in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(8,822

)

 

 

7,343

 

 

 

36,855

 

 

 

 

 

 

35,376

 

Issuance of common stock

 

104

 

 

 

 

 

 

1,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,342

 

Issuance of common stock under restricted stock plan

 

697

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock as stock dividend

 

45

 

 

 

 

 

 

664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

664

 

Retired shares from net issuance

 

(82

)

 

 

 

 

 

(3,444

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,444

)

Public offering

 

650

 

 

 

1

 

 

 

9,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,458

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,555

)

 

 

 

 

 

(38,555

)

Stock-based compensation

 

 

 

 

 

 

 

4,061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,061

 

Balance at June 30, 2014

 

63,251

 

 

$

64

 

 

$

668,673

 

 

$

(5,224

)

 

$

(7,897

)

 

$

3,635

 

 

$

(342

)

 

$

658,909

 

 

 

 

See notes to consolidated financial statements.

 

 

 

6


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

 

 

 

Six Months Ended June 30,

 

 

2014

 

 

2013

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

$

35,376

 

 

$

37,568

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash

   provided by (used in) operating activities:

 

 

 

 

 

 

 

Purchase of investments

 

(286,837

)

 

 

(341,678

)

Principal payments received on investments

 

200,704

 

 

 

203,357

 

Proceeds from sale of investments

 

10,271

 

 

 

11,401

 

Net unrealized depreciation (appreciation) on investments

 

8,822

 

 

 

(743

)

Net realized gain on investments

 

(7,343

)

 

 

(4,184

)

Accretion of paid-in-kind principal

 

(1,337

)

 

 

(1,420

)

Accretion of loan discounts

 

(5,170

)

 

 

(2,702

)

Accretion of loan discount on Convertible Senior Notes

 

541

 

 

 

541

 

Accretion of loan exit fees

 

373

 

 

 

(4,465

)

Change in deferred loan origination revenue

 

(349

)

 

 

2,929

 

Unearned fees related to unfunded commitments

 

(5,786

)

 

 

1,459

 

Amortization of debt fees and issuance costs

 

2,889

 

 

 

1,988

 

Depreciation

 

106

 

 

 

88

 

Stock-based compensation and amortization of restricted stock grants

 

4,061

 

 

 

2,792

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

262

 

 

 

(610

)

Prepaid expenses and other assets

 

576

 

 

 

153

 

Accounts payable

 

571

 

 

 

655

 

Accrued liabilities

 

(4,849

)

 

 

(721

)

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

(47,119

)

 

 

(93,593

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(57

)

 

 

(157

)

Reduction of (investment in) restricted cash

 

2,780

 

 

 

(1,658

)

Other long-term assets

 

 

 

 

(30

)

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

2,723

 

 

 

(1,845

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance (repurchase of employee shares due to restricted stock vesting) of

   common stock, net

 

7,771

 

 

 

94,250

 

Dividends paid

 

(37,891

)

 

 

(28,825

)

Repayments of Asset-Backed Notes

 

(43,010

)

 

 

(19,036

)

Repayments of Long-Term SBA Debentures

 

(34,800

)

 

 

 

Fees paid for credit facilities and debentures

 

(34

)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(107,964

)

 

 

46,389

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(152,360

)

 

 

(49,049

)

Cash and cash equivalents at beginning of period

 

268,368

 

 

 

182,994

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

$

116,008

 

 

$

133,944

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Dividends Reinvested

$

664

 

 

$

1,189

 

Paid-in-Kind Principal

$

1,337

 

 

$

1,420

 

 

See notes to consolidated financial statements.

 

 

 

7


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labcyte, Inc.(11)(13)(14)

 

Biotechnology Tools

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 6.70% or Floor rate of 9.95%

 

$

3,502

 

 

$

3,620

 

 

$

3,601

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,620

 

 

 

3,601

 

Subtotal: Biotechnology Tools (0.55%)*

 

 

 

 

 

 

 

 

 

 

 

 

3,620

 

 

 

3,601

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpenPeak, Inc.(11)(13)

 

Communications & Networking

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 8.75% or Floor rate of 12.00%

 

$

10,042

 

 

 

10,116

 

 

 

10,116

 

SkyCross, Inc. (13)

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70% or Floor rate of 10.95%

 

$

22,000

 

 

 

21,369

 

 

 

21,369

 

Spring Mobile Solutions, Inc.(13)

 

Communications & Networking

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

18,840

 

 

 

18,816

 

 

 

19,004

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

50,301

 

 

 

50,489

 

Subtotal: Communications & Networking (7.67%)*

 

 

 

 

 

 

 

 

 

 

 

 

50,301

 

 

 

50,489

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fluc, Inc.(9)

 

Consumer & Business Products

 

Convertible Senior Debt

 

March 2017

 

Interest rate FIXED 4.00%

 

$

100

 

 

 

100

 

 

 

100

 

Pong Research Corporation(13)

 

Consumer & Business Products

 

Senior Secured

 

December 2017

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

5,000

 

 

 

4,833

 

 

 

4,833

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,933

 

 

 

4,933

 

Subtotal: Consumer & Business Products (0.75%)*

 

 

 

 

 

 

 

 

 

 

 

 

4,933

 

 

 

4,933

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revance Therapeutics, Inc.(3)(13)

 

Drug Delivery

 

Senior Secured

 

March 2015

 

Interest rate PRIME + 6.60% or Floor rate of 9.85%

 

$

604

 

 

 

639

 

 

 

639

 

 

 

Drug Delivery

 

Senior Secured

 

March 2015

 

Interest rate PRIME + 6.60% or Floor rate of 9.85%

 

$

6,043

 

 

 

6,360

 

 

 

6,360

 

Total Revance Therapeutics, Inc.

 

 

 

 

 

 

 

$

6,647

 

 

 

6,999

 

 

 

6,999

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,999

 

 

 

6,999

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(10)(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.85% or Floor rate of 9.10%

 

$

25,000

 

 

 

24,461

 

 

 

24,231

 

BIND Therapeutics, Inc.(3)(13)(14)

 

Drug Delivery

 

Senior Secured

 

September 2016

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%

 

$

4,102

 

 

 

4,113

 

 

 

4,155

 

Celator Pharmaceuticals, Inc.(3)(13)

 

Drug Delivery

 

Senior Secured

 

December 2017

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

10,000

 

 

 

9,806

 

 

 

9,806

 

Celsion Corporation(3)(13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

10,000

 

 

 

9,671

 

 

 

9,864

 

Dance Biopharm, Inc.(13)(14)

 

Drug Delivery

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.40% or Floor rate of 10.65%

 

$

4,000

 

 

 

3,905

 

 

 

3,873

 

Neos Therapeutics, Inc.(13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate FIXED 9.00%

 

$

10,000

 

 

 

9,879

 

 

 

9,879

 

Zosano Pharma, Inc.(13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 6.80% or Floor rate of 12.05%

 

$

4,000

 

 

 

3,821

 

 

 

3,821

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

65,656

 

 

 

65,629

 

Subtotal: Drug Delivery (11.04%)*

 

 

 

 

 

 

 

 

 

 

 

 

72,655

 

 

 

72,628

 

See notes to consolidated financial statements.

8


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMA Biologics, Inc.(3)(12)

 

Drug Discovery & Development

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 3.00% or Floor rate of 8.75%, PIK Interest of 1.95%

 

$

10,053

 

 

$

9,891

 

 

$

9,891

 

Anacor Pharmaceuticals, Inc.(14)

 

Drug Discovery & Development

 

Senior Secured

 

July 2017

 

Interst rate PRIME + 6.40% or Floor rate of 11.65%

 

$

30,000

 

 

 

29,263

 

 

 

29,835

 

Aveo Pharmaceuticals, Inc.(3)(10)(11)(14)

 

Drug Discovery & Development

 

Senior Secured

 

September 2015

 

Interest rate PRIME + 7.15% or Floor rate of 11.90%

 

$

14,281

 

 

 

14,281

 

 

 

14,201

 

Cempra, Inc.(3)(13)

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 6.30% or Floor rate of 9.55%

 

$

18,000

 

 

 

18,000

 

 

 

18,000

 

Cleveland BioLabs, Inc.(3)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2017

 

Interest rate PRIME + 6.20% or Floor rate of 10.45%

 

$

2,000

 

 

 

2,000

 

 

 

2,060

 

Concert Pharmaceuticals, Inc.(3)(4)

 

Drug Discovery & Development

 

Senior Secured

 

October 2015

 

Interest rate PRIME + 3.25% or Floor rate of 8.50%

 

$

11,217

 

 

 

11,131

 

 

 

10,976

 

CTI BioPharma Corp.(11)

 

Drug Discovery & Development

 

Senior Secured

 

October 2016

 

Interest rate PRIME + 9.00% or Floor rate 12.25%

 

$

15,000

 

 

 

14,954

 

 

 

14,954

 

Insmed, Incorporated(11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2016

 

Interest rate PRIME + 4.75% or Floor rate of 9.25%

 

$

20,000

 

 

 

19,766

 

 

 

19,659

 

Lithera, Inc(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 5.75% or Floor rate of 9.0%

 

$

4,000

 

 

 

3,888

 

 

 

3,888

 

Merrimack Pharmaceuticals, Inc.(3)(13)

 

Drug Discovery & Development

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 5.30% or Floor rate of 10.55%

 

$

40,000

 

 

 

40,480

 

 

 

39,640

 

Nanotherapeutics, Inc.(13)

 

Drug Discovery & Development

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

10,000

 

 

 

9,108

 

 

 

9,108

 

Neuralstem, Inc.(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

6,575

 

 

 

6,586

 

 

 

6,716

 

uniQure B.V.(3)(5)(10)(13)

 

Drug Discovery & Development

 

Senior Secured

 

June 2018

 

Interest rate PRIME + 5.00% or Floor rate of 10.25%

 

$

20,000

 

 

 

19,801

 

 

 

19,801

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

199,149

 

 

 

198,729

 

Subtotal: Drug Discovery & Development (30.21%)*

 

 

 

 

 

 

 

 

 

 

 

 

199,149

 

 

 

198,729

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plures Technologies, Inc.(8)(12)

 

Electronics & Computer Hardware

 

Senior Secured

 

October 2016

 

Interest rate LIBOR + 8.75% or Floor rate of 12.00%, PIK Interest of 4.00%

 

$

267

 

 

 

179

 

 

 

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

179

 

 

 

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

 

 

179

 

 

 

 

 

Energy Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Superconductor Corporation(3)(11)(13)

 

Energy Technology

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 7.25% or Floor rate of 11.00%

 

$

2,308

 

 

 

2,778

 

 

 

2,778

 

Glori Energy, Inc.(3)(11)(13)

 

Energy Technology

 

Senior Secured

 

June 2015

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

3,556

 

 

 

3,766

 

 

 

3,766

 

Scifiniti (pka Integrated Photovoltaics, Inc.)(14)

 

Energy Technology

 

Senior Secured

 

February 2015

 

Interest rate PRIME + 7.38% or Floor rate of 10.63%

 

$

861

 

 

 

855

 

 

 

855

 

Stion Corporation(4)(6)(13)

 

Energy Technology

 

Senior Secured

 

February 2015

 

Interest rate PRIME + 8.75% or Floor rate of 12.00%

 

$

3,789

 

 

 

3,821

 

 

 

2,300

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,220

 

 

 

9,699

 

See notes to consolidated financial statements.

9


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.(14)

 

Energy Technology

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

6,000

 

 

$

5,995

 

 

$

4,030

 

American Superconductor Corporation(3)(11)(13)

 

Energy Technology

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 7.25% or Floor rate of 11.00%

 

$

9,712

 

 

 

9,703

 

 

 

9,847

 

Amyris, Inc.(10)

 

Energy Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 6.25% or Floor rate of 9.5%

 

$

25,000

 

 

 

25,000

 

 

 

25,000

 

 

 

Energy Technology

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

5,000

 

 

 

5,000

 

 

 

5,000

 

Total Amyris, Inc.

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

30,000

 

 

 

30,000

 

BioAmber, Inc.(5)(10)(13)

 

Energy Technology

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

25,000

 

 

 

26,135

 

 

 

26,385

 

Enphase Energy, Inc.(13)

 

Energy Technology

 

Senior Secured

 

August 2016

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

6,531

 

 

 

6,603

 

 

 

6,734

 

Fluidic, Inc. (13)

 

Energy Technology

 

Senior Secured

 

March 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

5,000

 

 

 

5,001

 

 

 

5,025

 

Fulcrum Bioenergy, Inc.(11)(13)

 

Energy Technology

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

8,942

 

 

 

8,957

 

 

 

8,957

 

Polyera Corporation(13)(14)

 

Energy Technology

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

4,758

 

 

 

4,855

 

 

 

4,778

 

TAS Energy, Inc.(13)

 

Energy Technology

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

10,064

 

 

 

10,203

 

 

 

10,203

 

TPI Composites, Inc.(13)

 

Energy Technology

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

15,000

 

 

 

15,134

 

 

 

15,261

 

 

 

Energy Technology

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

5,000

 

 

 

4,965

 

 

 

4,965

 

Total TPI Composites, Inc.

 

 

 

 

 

 

 

 

 

$

20,000

 

 

 

20,099

 

 

 

20,226

 

ULTURA, Inc.(12)(13)

 

Energy Technology

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

18,338

 

 

 

18,193

 

 

 

17,697

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

145,744

 

 

 

143,882

 

Subtotal: Energy Technology (23.19%)*

 

 

 

 

 

 

 

 

 

 

 

 

156,964

 

 

 

153,581

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InstaMed Communications, LLC(13)(14)

 

Healthcare Services, Other

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%

 

$

3,000

 

 

 

3,039

 

 

 

3,096

 

MDEverywhere, Inc.(13)

 

Healthcare Services, Other

 

Senior Secured

 

June 2017

 

Interest rate LIBOR + 9.50% or Floor rate of 10.75%

 

$

2,500

 

 

 

2,478

 

 

 

2,343

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

5,517

 

 

 

5,439

 

Subtotal: Healthcare Services, Other (0.83%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,517

 

 

 

5,439

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eccentex Corporation(11)(13)

 

Information Services

 

Senior Secured

 

May 2015

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%

 

$

436

 

 

 

446

 

 

 

118

 

Womensforum.com(11)(12)

 

Information Services

 

Senior Secured

 

April 2015

 

Interest rate LIBOR + 6.50% or Floor rate of 9.00%

 

$

1,250

 

 

 

1,237

 

 

 

1,237

 

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,683

 

 

 

1,355

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

InXpo, Inc.(13)(14)

 

Information Services

 

Senior Secured

 

July 2016

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

2,057

 

 

 

2,035

 

 

 

1,955

 

Womensforum.com(11)(12)

 

Information Services

 

Senior Secured

 

October 2016

 

Interest rate LIBOR + 7.50% or Floor rate of 10.25%, PIK Interest 2.00%

 

$

4,654

 

 

 

4,594

 

 

 

4,594

 

 

 

Information Services

 

Senior Secured

 

October 2016

 

Interest rate LIBOR + 6.50% or Floor rate of 9.25%

 

$

6,300

 

 

 

6,219

 

 

 

6,219

 

Total Womensforum.com

 

 

 

 

 

 

 

 

 

$

10,954

 

 

 

10,813

 

 

 

10,813

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

12,848

 

 

 

12,768

 

Subtotal: Information Services (2.15%)*

 

 

 

 

 

 

 

 

 

 

 

 

14,531

 

 

 

14,123

 

See notes to consolidated financial statements.

10


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gazelle, Inc.(12)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

1,021

 

 

$

1,008

 

 

$

1,008

 

NetPlenish(8)(9)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2015

 

Interest rate FIXED 10.00%

 

$

95

 

 

 

95

 

 

 

 

Tectura Corporation(8)(12)

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

143

 

 

 

143

 

 

 

51

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

6,468

 

 

 

6,467

 

 

 

2,283

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

563

 

 

 

563

 

 

 

199

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

5,000

 

 

 

5,000

 

 

 

1,765

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

Interest rate LIBOR + 8.00% or Floor rate of 11.00%, PIK Interest 1.00%

 

$

10,777

 

 

 

10,777

 

 

 

3,083

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

$

22,951

 

 

 

22,950

 

 

 

7,381

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

24,053

 

 

 

8,389

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

4,867

 

 

 

4,867

 

 

 

4,867

 

CashStar, Inc.(12)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 6.25% or Floor rate 10.50%, PIK Interest 1.00%

 

$

8,049

 

 

 

7,903

 

 

 

8,002

 

Education Dynamics, LLC(12)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2016

 

Interest rate LIBOR + 12.5% or Floor rate 12.50%, PIK Interest 1.50%

 

$

22,552

 

 

 

22,166

 

 

 

22,623

 

Gazelle, Inc.(12)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2016

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%, PIK Interest 2.50%

 

$

12,522

 

 

 

12,466

 

 

 

12,466

 

Just Fabulous, Inc.(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

15,000

 

 

 

14,217

 

 

 

14,667

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

August 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

15,000

 

 

 

14,484

 

 

 

14,484

 

Total Just Fabulous, Inc.

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

28,701

 

 

 

29,151

 

LightSpeed Retail, Inc.(5)(10)

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 3.25% or Floor rate of 6.50%

 

$

2,000

 

 

 

1,982

 

 

 

1,982

 

NetPlenish(8)(9)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate FIXED 10.00%

 

$

382

 

 

 

374

 

 

 

 

Reply! Inc.(11)(12)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate PRIME + 6.88% or Floor rate of 10.13%, PIK Interest 2.00%

 

$

8,821

 

 

 

8,940

 

 

 

8,896

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate PRIME + 7.25% or Floor rate of 11.00%, PIK Interest 2.00%

 

$

1,944

 

 

 

1,981

 

 

 

2,000

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2016

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%, PIK Interest 2.00%

 

$

3,046

 

 

 

2,879

 

 

 

2,939

 

Total Reply! Inc.

 

 

 

 

 

 

 

 

 

$

13,811

 

 

 

13,800

 

 

 

13,835

 

Vaultlogix, LLC(12)(13)(14)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2016

 

Interest rate LIBOR + 8.50% or Floor rate of 10.00%, PIK interest 2.50%

 

$

8,050

 

 

 

8,025

 

 

 

8,010

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

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

 

$

6,622

 

 

 

6,725

 

 

 

6,725

 

Total Vaultlogix, LLC

 

 

 

 

 

 

 

 

 

$

14,672

 

 

 

14,750

 

 

 

14,735

 

WaveMarket, Inc.(11)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

361

 

 

 

363

 

 

 

355

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2016

 

Interest rate PRIME + 5.75% or Floor rate of 9.50%

 

$

9,108

 

 

 

9,067

 

 

 

8,929

 

Total WaveMarket, Inc.

 

 

 

 

 

 

 

 

 

$

9,469

 

 

 

9,430

 

 

 

9,284

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

116,439

 

 

 

116,945

 

Subtotal: Internet Consumer & Business Services (19.05%)*

 

 

 

 

 

 

 

 

 

 

 

 

140,492

 

 

 

125,334

 

See notes to consolidated financial statements.

11


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zoom Media Group, Inc.(12)

 

Media/Content/Info

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

4,400

 

 

$

4,335

 

 

$

4,286

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,335

 

 

 

4,286

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rhapsody International, Inc.(12)(14)

 

Media/Content/Info

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 5.25% or Floor rate of 9.00%, PIK interest of 1.50%

 

$

20,052

 

 

 

19,487

 

 

 

19,569

 

Zoom Media Group, Inc.(12)

 

Media/Content/Info

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%. PIK Interest 3.75%

 

$

3,431

 

 

 

3,333

 

 

 

3,331

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

22,820

 

 

 

22,900

 

Subtotal: Media/Content/Info (4.13%)*

 

 

 

 

 

 

 

 

 

 

 

 

27,155

 

 

 

27,186

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(3)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.70% or Floor rate of 10.95%

 

$

20,000

 

 

 

19,306

 

 

 

19,306

 

Baxano Surgical, Inc.(3)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 7.75% or Floor rate of 12.5%

 

$

7,500

 

 

 

7,341

 

 

 

7,276

 

Home Dialysis Plus, Inc.(13)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 6.35% or Floor rate of 9.60%

 

$

10,000

 

 

 

9,878

 

 

 

9,818

 

InspireMD, Inc.(3)(5)(10)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 5.00% or Floor rate of 10.50%

 

$

10,000

 

 

 

9,884

 

 

 

10,048

 

Medrobotics Corporation(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2016

 

Interest rate PRIME + 7.85% or Floor rate of 11.10%

 

$

3,646

 

 

 

3,661

 

 

 

3,641

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 5.00% or Floor rate of 11.00%

 

$

5,000

 

 

 

4,793

 

 

 

4,813

 

NinePoint Medical, Inc.(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2016

 

Interest rate PRIME + 5.85% or Floor rate of 9.10%

 

$

4,624

 

 

 

4,674

 

 

 

4,640

 

Oraya Therapeutics, Inc.(11)(12)

 

Medical Devices & Equipment

 

Senior Secured

 

September 2015

 

Interest rate PRIME + 5.50% or Floor rate of 10.25%, PIK Interest of 1.00%

 

$

6,143

 

 

 

6,095

 

 

 

4,442

 

Quanterix Corporation(13)

 

Medical Devices & Equipment

 

Senior Secured

 

November 2017

 

Interest rate PRIME + 2.75% or Floor rate of 8.00%

 

$

5,000

 

 

 

4,861

 

 

 

4,861

 

SonaCare Medical, LLC (pka US HIFU, LLC)(11)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

April 2016

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

4,667

 

 

 

4,856

 

 

 

4,950

 

SynergEyes, Inc.(13)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

5,000

 

 

 

4,932

 

 

 

4,932

 

United Orthopedic Group, Inc.(13)

 

Medical Devices & Equipment

 

Senior Secured

 

July 2016

 

Interest rate PRIME + 8.60% or Floor rate of 11.85%

 

$

25,000

 

 

 

24,993

 

 

 

25,287

 

ViewRay, Inc.(12)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%, PIK Interest 1.50%

 

$

15,105

 

 

 

14,695

 

 

 

14,844

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

119,969

 

 

 

118,858

 

Subtotal: Medical Devices & Equipment (18.07%)*

 

 

 

 

 

 

 

 

 

 

 

 

119,969

 

 

 

118,858

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Senior Secured

 

January 2015

 

Interest rate PRIME + 10.60% or Floor rate of 13.85%

 

$

580

 

 

 

577

 

 

 

577

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

577

 

 

 

577

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avnera Corporation(13)

 

Semiconductors

 

Senior Secured

 

April 2017

 

Interest rate PRIME + 5.75% or Floor rate of 9.00%

 

$

5,000

 

 

 

4,943

 

 

 

4,943

 

SiTime Corporation(14)

 

Semiconductors

 

Senior Secured

 

September 2016

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

3,389

 

 

 

3,389

 

 

 

3,389

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,332

 

 

 

8,332

 

Subtotal: Semiconductors (1.35%)*

 

 

 

 

 

 

 

 

 

 

 

 

8,909

 

 

 

8,909

 

See notes to consolidated financial statements.

12


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Maturity Date

 

Interest Rate and Floor

 

Principal Amount

 

 

Cost(2)

 

 

Value(3)

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobile Posse, Inc.(13)(14)

 

Software

 

Senior Secured

 

June 2015

 

Interest rate PRIME + 2.00% or Floor rate of 5.25%

 

$

500

 

 

$

485

 

 

$

469

 

StartApp, Inc.(13)

 

Software

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 2.75% or Floor rate of 6.00%

 

$

200

 

 

 

196

 

 

 

196

 

Touchcommerce, Inc.(14)

 

Software

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 2.25% or Floor rate of 6.50%

 

$

3,811

 

 

 

3,793

 

 

 

3,720

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,474

 

 

 

4,385

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CareCloud Corporation(13)

 

Software

 

Senior Secured

 

July 2017

 

Interest rate PRIME + 5.50% or Floor rate of 8.75%

 

$

10,000

 

 

 

9,747

 

 

 

9,747

 

Clickfox, Inc.(13)(14)

 

Software

 

Senior Secured

 

September 2017

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

6,000

 

 

 

5,952

 

 

 

5,952

 

 

 

Software

 

Senior Secured

 

July 2015

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

2,000

 

 

 

1,986

 

 

 

1,971

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

 

$

8,000

 

 

 

7,938

 

 

 

7,923

 

Hillcrest Laboratories, Inc.(14)

 

Software

 

Senior Secured

 

July 2015

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

1,871

 

 

 

1,857

 

 

 

1,853

 

Knowledge Adventure, Inc.(13)(14)

 

Software

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

11,750

 

 

 

11,653

 

 

 

11,653

 

Mobile Posse, Inc.(13)(14)

 

Software

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

3,590

 

 

 

3,528

 

 

 

3,564

 

Neos Geosolutions, Inc.(13)(14)

 

Software

 

Senior Secured

 

May 2016

 

Interest rate PRIME + 5.75% or Floor rate of 10.50%

 

$

3,072

 

 

 

3,155

 

 

 

3,107

 

Poplicus, Inc.(13)

 

Software

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

1,500

 

 

 

1,482

 

 

 

1,482

 

Sonian, Inc.(13)(14)

 

Software

 

Senior Secured

 

July 2017

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%

 

$

5,500

 

 

 

5,393

 

 

 

5,422

 

StartApp, Inc.(13)

 

Software

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

3,244

 

 

 

3,285

 

 

 

3,318

 

Touchcommerce, Inc.(14)

 

Software

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 6.00% or Floor rate of 10.25%

 

$

5,000

 

 

 

4,691

 

 

 

4,741

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

52,729

 

 

 

52,810

 

Subtotal: Software (8.69%)*

 

 

 

 

 

 

 

 

 

 

 

 

57,203

 

 

 

57,195

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(3)

 

Specialty Pharmaceuticals

 

Senior Secured

 

May 2018

 

Interest rate PRIME + 7.65% or Floor rate of 10.90%

 

$

10,000

 

 

 

9,480

 

 

 

9,480

 

Cranford Pharmaceuticals, LLC(12)(13)(14)

 

Specialty Pharmaceuticals

 

Senior Secured

 

February 2017

 

Interest rate LIBOR + 9.55% or Floor rate of 10.80%, PIK Interest of 1.35%

 

$

18,079

 

 

 

17,860

 

 

 

17,860

 

 

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2015

 

Interest rate LIBOR + 8.25% or Floor rate of 9.50%

 

$

2,500

 

 

 

2,457

 

 

 

2,457

 

Total Cranford Pharmaceuticals, LLC

 

 

 

 

 

 

 

$

20,579

 

 

 

20,317

 

 

 

20,317

 

Rockwell Medical, Inc. (13)(14)

 

Specialty Pharmaceuticals

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 9.25% or Floor rate of 12.50%

 

$

20,000

 

 

 

20,271

 

 

 

20,271

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

50,068

 

 

 

50,068

 

Subtotal: Specialty Pharmaceuticals (7.61%)*

 

 

 

 

 

 

 

 

 

 

 

 

50,068

 

 

 

50,068

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmedics, Inc.(11)(13)

 

Surgical Devices

 

Senior Secured

 

November 2015

 

Interest rate FIXED 12.95%

 

$

7,087

 

 

 

6,957

 

 

 

6,957

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,957

 

 

 

6,957

 

Subtotal: Surgical Devices (1.06%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,957

 

 

 

6,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt (136.35%)*

 

 

 

 

 

 

 

 

 

 

 

 

918,602

 

 

 

898,030

 

 

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuGEN Technologies, Inc.(14)

 

Biotechnology Tools

 

Equity

 

Preferred Series C

 

 

189,394

 

 

$

500

 

 

$

550

 

Subtotal: Biotechnology Tools (0.08%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

550

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc.(3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

102

 

 

 

171

 

Peerless Network, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

3,920

 

Stoke, Inc.(14)

 

Communications & Networking

 

Equity

 

Preferred Series E

 

 

152,905

 

 

 

500

 

 

 

122

 

Subtotal: Communications & Networking (0.64%)*

 

 

 

 

 

 

 

 

 

 

1,602

 

 

 

4,213

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Caivis Acquisition Corporation(14)

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

295,861

 

 

 

819

 

 

 

 

IPA Holdings, LLC

 

Consumer & Business Products

 

Equity

 

LLC Interest

 

 

500,000

 

 

 

500

 

 

 

869

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Preferred Series B

 

 

187,970

 

 

 

500

 

 

 

350

 

Subtotal: Consumer & Business Products (0.19%)*

 

 

 

 

 

 

 

 

 

 

1,819

 

 

 

1,219

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulex, Inc.

 

Diagnostic

 

Equity

 

Common Stock

 

 

937,998

 

 

 

750

 

 

 

750

 

Subtotal: Diagnostic (0.11%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

750

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(10)(14)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

54,240

 

 

 

108

 

 

 

577

 

Merrion Pharmaceuticals, Plc(3)(5)(10)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

20,000

 

 

 

9

 

 

 

 

Neos Therapeutics, Inc.(14)

 

Drug Delivery

 

Equity

 

Preferred Series C

 

 

300,000

 

 

 

1,500

 

 

 

1,476

 

Transcept Pharmaceuticals, Inc.(3)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

41,570

 

 

 

500

 

 

 

83

 

Subtotal: Drug Delivery (0.32%)*

 

 

 

 

 

 

 

 

 

 

2,117

 

 

 

2,136

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acceleron Pharma, Inc.(3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

258,822

 

 

 

1,477

 

 

 

8,647

 

Aveo Pharmaceuticals, Inc.(3)(10(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

167,864

 

 

 

842

 

 

 

308

 

Dicerna Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

3,224

 

Inotek Pharmaceuticals Corporation

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

15,334

 

 

 

1,500

 

 

 

 

Merrimack Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

848,591

 

 

 

3,213

 

 

 

6,100

 

Paratek Pharmaceuticals, Inc.

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

2,882

 

 

 

5

 

 

 

2

 

 

 

Drug Discovery & Development

 

Equity

 

Preferred Series A

 

 

167,468

 

 

 

1,125

 

 

 

156

 

Total Partek Pharmaceuticals, Inc.

 

 

 

 

 

 

170,350

 

 

 

1,130

 

 

 

158

 

Subtotal: Drug Discovery & Development (2.80%)*

 

 

 

 

 

 

 

 

 

 

9,162

 

 

 

18,437

 

 

Energy Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glori Energy, Inc.(3)

 

Energy Technology

 

Equity

 

Common Stock

 

 

18,208

 

 

 

165

 

 

 

169

 

SCIEnergy, Inc.

 

Energy Technology

 

Equity

 

Preferred Series 1

 

 

385,000

 

 

 

761

 

 

 

35

 

Subtotal: Energy Technology (0.03%)*

 

 

 

 

 

 

 

 

 

 

926

 

 

 

204

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Good Technologies, Inc. (pka Visto Corporation)(14)

 

Information Services

 

Equity

 

Common Stock

 

 

500,000

 

 

 

603

 

 

 

485

 

Subtotal: Information Services (0.07%)*

 

 

 

 

 

 

 

 

 

 

603

 

 

 

485

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(14)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

325

 

Philotic, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Common Stock

 

 

8,121

 

 

 

93

 

 

 

 

Progress Financial

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series G

 

 

218,351

 

 

 

250

 

 

 

238

 

Subtotal: Internet Consumer & Business Services (0.09%)*

 

 

 

 

 

 

 

 

 

 

518

 

 

 

563

 

See notes to consolidated financial statements.

14


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Everyday Health, Inc. (pka Waterfront Media, Inc.)(3)

 

Media/Content/Info

 

Equity

 

Common Stock

 

 

97,060

 

 

$

1,000

 

 

$

1,794

 

Subtotal: Media/Content/Info (0.27%)*

 

 

 

 

 

 

 

 

 

 

1,000

 

 

 

1,794

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gelesis, Inc.(6)(14)

 

Medical Devices & Equipment

 

Equity

 

LLC Interest

 

 

2,024,092

 

 

 

925

 

 

 

351

 

Medrobotics Corporation(14)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

264

 

Novasys Medical, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D-1

 

 

4,118,444

 

 

 

1,000

 

 

 

 

Optiscan Biomedical, Corp.(6)(14)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series B

 

 

6,185,567

 

 

 

3,000

 

 

 

387

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

131

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

41,352,489

 

 

 

3,945

 

 

 

4,055

 

Total Optiscan Biomedical, Corp

 

 

 

 

 

 

 

 

49,465,365

 

 

 

7,600

 

 

 

4,573

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series 1

 

 

1,086,969

 

 

 

500

 

 

 

 

Subtotal: Medical Devices & Equipment (0.79%)*

 

 

 

 

 

 

 

 

 

 

10,275

 

 

 

5,188

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atrenta, Inc.

 

Software

 

Equity

 

Preferred Series C

 

 

1,196,845

 

 

 

986

 

 

 

2,057

 

 

 

Software

 

Equity

 

Preferred Series D

 

 

635,513

 

 

 

508

 

 

 

1,264

 

Total Atrenta, Inc

 

 

 

 

 

 

 

 

1,832,358

 

 

 

1,494

 

 

 

3,321

 

Box, Inc.(14)

 

Software

 

Equity

 

Preferred Series B

 

 

271,070

 

 

 

251

 

 

 

5,109

 

 

 

Software

 

Equity

 

Preferred Series C

 

 

589,844

 

 

 

872

 

 

 

11,118

 

 

 

Software

 

Equity

 

Preferred Series D

 

 

158,133

 

 

 

500

 

 

 

2,980

 

 

 

Software

 

Equity

 

Preferred Series D-1

 

 

186,766

 

 

 

1,694

 

 

 

3,520

 

 

 

Software

 

Equity

 

Preferred Series D-2

 

 

220,751

 

 

 

2,001

 

 

 

4,161

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

38,183

 

 

 

500

 

 

 

720

 

Total Box, Inc

 

 

 

 

 

 

 

 

1,464,747

 

 

 

5,818

 

 

 

27,608

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

86

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

808

 

HighRoads, Inc.

 

Software

 

Equity

 

Preferred Series B

 

 

190,170

 

 

 

307

 

 

 

294

 

Subtotal: Software (4.88%)*

 

 

 

 

 

 

 

 

 

 

8,068

 

 

 

32,117

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series E

 

 

241,829

 

 

 

750

 

 

 

 

 

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series E-1

 

 

26,955

 

 

 

 

 

 

 

 

 

Specialty Pharmaceuticals

 

Equity

 

Preferred Series G

 

 

4,667,636

 

 

 

 

 

 

 

Total QuatRx Pharmaceuticals Company

 

 

 

 

 

 

4,936,420

 

 

 

750

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.00%)*

 

 

 

 

 

 

 

 

 

 

750

 

 

 

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(14)

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

219,298

 

 

 

250

 

 

 

83

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

656,538

 

 

 

282

 

 

 

143

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

967

 

Total Gynesonic, inc

 

 

 

 

 

 

 

 

2,866,993

 

 

 

1,244

 

 

 

1,193

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

311

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

194

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

925

 

Total Transmedics

 

 

 

 

 

 

 

 

468,960

 

 

 

2,050

 

 

 

1,430

 

Subtotal: Surgical Devices (0.40%)*

 

 

 

 

 

 

 

 

 

 

3,294

 

 

 

2,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity (10.68%)*

 

 

 

 

 

 

 

 

 

$

41,384

 

 

$

70,279

 

See notes to consolidated financial statements.

15


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labcyte, Inc.(14)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

$

323

 

 

$

24

 

Subtotal: Biotechnology Tools (0.00%)*

 

 

 

 

 

 

 

 

 

 

323

 

 

 

24

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelepeer, Inc.(14)

 

Communications & Networking

 

Warrant

 

Preferred Series C

 

 

117,958

 

 

 

102

 

 

 

36

 

OpenPeak, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

108,982

 

 

 

149

 

 

 

137

 

PeerApp, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series B

 

 

298,779

 

 

 

61

 

 

 

39

 

Peerless Network, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

415

 

Ping Identity Corporation

 

Communications & Networking

 

Warrant

 

Preferred Series B

 

 

1,136,277

 

 

 

52

 

 

 

95

 

SkyCross, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series F

 

 

9,762,777

 

 

 

394

 

 

 

394

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

2,834,375

 

 

 

418

 

 

 

384

 

Stoke, Inc.(14)

 

Communications & Networking

 

Warrant

 

Preferred Series C

 

 

158,536

 

 

 

53

 

 

 

 

 

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

118,181

 

 

 

65

 

 

 

 

Total Stoke, Inc.

 

 

 

 

 

 

276,717

 

 

 

118

 

 

 

 

Subtotal: Communications & Networking (0.23%)*

 

 

 

 

 

 

 

 

 

 

1,389

 

 

 

1,500

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Beauty, Inc.(14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

628

 

IPA Holdings, LLC

 

Consumer & Business Products

 

Warrant

 

Common Stock

 

 

650,000

 

 

 

275

 

 

 

554

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

99,286

 

 

 

24

 

 

 

8

 

Pong Research Corporation

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

1,662,441

 

 

 

228

 

 

 

228

 

Subtotal: Consumer & Business Products (0.22%)*

 

 

 

 

 

 

 

 

 

 

757

 

 

 

1,418

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Navidea Biopharmaceuticals, Inc. (pka Neoprobe)(3)(14)

 

Diagnostic

 

Warrant

 

Common Stock

 

 

333,333

 

 

 

244

 

 

 

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal: Diagnostic (0.01%)*

 

 

 

 

 

 

 

 

 

 

244

 

 

 

54

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(10)(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

786

 

 

 

776

 

Alexza Pharmaceuticals, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

37,639

 

 

 

645

 

 

 

 

BIND Therapeutics, Inc.(3)(14)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

71,359

 

 

 

367

 

 

 

186

 

Celator Pharmaceuticals, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

158,006

 

 

 

107

 

 

 

149

 

Celsion Corporation(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

422

 

Dance Biopharm, Inc.(14)

 

Drug Delivery

 

Warrant

 

Preferred Series A

 

 

97,701

 

 

 

74

 

 

 

152

 

Intelliject, Inc.

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

594

 

 

 

921

 

Neos Therapeutics, Inc.(14)

 

Drug Delivery

 

Warrant

 

Preferred Series C

 

 

60,000

 

 

 

113

 

 

 

106

 

Revance Therapeutics, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

53,511

 

 

 

556

 

 

 

546

 

Transcept Pharmaceuticals, Inc.(3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

61,452

 

 

 

87

 

 

 

 

Zosano Pharma, Inc.

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

126,696

 

 

 

164

 

 

 

165

 

Subtotal: Drug Delivery (0.52%)*

 

 

 

 

 

 

 

 

 

 

3,921

 

 

 

3,423

 

See notes to consolidated financial statements.

16


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acceleron Pharma, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

11,611

 

 

$

39

 

 

$

245

 

ADMA Biologics, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

66,550

 

 

 

218

 

 

 

220

 

Anthera Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

Cempra, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

138,797

 

 

 

458

 

 

 

519

 

Chroma Therapeutics, Ltd.(5)(10)

 

Drug Discovery & Development

 

Warrant

 

Preferred Series D

 

 

325,261

 

 

 

490

 

 

 

 

Cleveland BioLabs, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

156,250

 

 

 

105

 

 

 

26

 

Concert Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

70,796

 

 

 

367

 

 

 

96

 

Coronado Biosciences, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

31

 

Dicerna Pharmaceuticals, Inc.(3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

200

 

 

 

28

 

 

 

 

Horizon Pharma, Inc.(3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,408

 

 

 

231

 

 

 

47

 

Lithera, Inc

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

114,285

 

 

 

89

 

 

 

89

 

Nanotherapeutics, Inc.

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

65,108

 

 

 

838

 

 

 

844

 

uniQure B.V.(3)(5)(10)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

174

 

Subtotal: Drug Discovery & Development (0.35%)*

 

 

 

 

 

 

 

 

 

 

4,207

 

 

 

2,291

 

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clustrix, Inc.

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

50,000

 

 

 

12

 

 

 

13

 

Identiv, Inc.(3)

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

99,208

 

 

 

247

 

 

 

441

 

Subtotal: Electronics & Computer Hardware (0.07%)*

 

 

 

 

 

 

 

 

 

 

259

 

 

 

454

 

 

Energy Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

77,447

 

 

 

120

 

 

 

 

Alphabet Energy, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series A

 

 

86,329

 

 

 

81

 

 

 

148

 

American Superconductor Corporation(3)

 

Energy Technology

 

Warrant

 

Common Stock

 

 

512,820

 

 

 

391

 

 

 

138

 

Brightsource Energy, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series 1

 

 

175,000

 

 

 

780

 

 

 

321

 

Calera, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

EcoMotors, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series B

 

 

437,500

 

 

 

308

 

 

 

438

 

Fluidic, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

59,665

 

 

 

102

 

 

 

78

 

Fulcrum Bioenergy, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

151

 

GreatPoint Energy, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series D-1

 

 

393,212

 

 

 

548

 

 

 

 

Polyera Corporation(14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

161,575

 

 

 

69

 

 

 

147

 

Propel Fuels(14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

3,200,000

 

 

 

211

 

 

 

240

 

SCIEnergy, Inc.

 

Energy Technology

 

Warrant

 

Common Stock

 

 

530,811

 

 

 

181

 

 

 

 

 

 

Energy Technology

 

Warrant

 

Preferred Series 1

 

 

145,811

 

 

 

50

 

 

 

1

 

Total SCIEnergy

 

 

 

 

 

 

 

 

676,622

 

 

 

231

 

 

 

1

 

Scifiniti (pka Integrated Photovoltaics, Inc.)(14)

 

Energy Technology

 

Warrant

 

Preferred Series A-1

 

 

390,000

 

 

 

82

 

 

 

75

 

Solexel, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

541

 

Stion Corporation(6)(14)

 

Energy Technology

 

Warrant

 

Preferred Series Seed

 

 

2,154

 

 

 

1,377

 

 

 

 

TAS Energy, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series F

 

 

428,571

 

 

 

299

 

 

 

265

 

TPI Composites, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series B

 

 

160

 

 

 

273

 

 

 

252

 

Trilliant, Inc.(14)

 

Energy Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

162

 

 

 

89

 

Subtotal: Energy Technology (0.44%)*

 

 

 

 

 

 

 

 

 

 

6,984

 

 

 

2,884

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MDEverywhere, Inc.

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

129

 

 

 

94

 

 

 

30

 

Subtotal: Healthcare Services, Other (0.00%)*

 

 

 

 

 

 

 

 

 

 

94

 

 

 

30

 

See notes to consolidated financial statements.

17


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cha Cha Search, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series G

 

 

48,232

 

 

$

58

 

 

$

11

 

InXpo, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series C

 

 

648,400

 

 

 

98

 

 

 

37

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

740,832

 

 

 

58

 

 

 

43

 

Total InXpo, Inc.

 

 

 

 

 

 

 

 

1,389,232

 

 

 

156

 

 

 

80

 

Jab Wireless, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series A

 

 

266,567

 

 

 

265

 

 

 

927

 

RichRelevance, Inc.(14)

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.15%)*

 

 

 

 

 

 

 

 

 

 

577

 

 

 

1,018

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

218,684

 

 

 

299

 

 

 

73

 

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

147

 

Total Blurb, Inc.

 

 

 

 

 

 

 

 

452,964

 

 

 

935

 

 

 

220

 

CashStar, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

69

 

Gazelle, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

151,827

 

 

 

165

 

 

 

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

1,439

 

LightSpeed Retail, Inc.(5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

26,346

 

 

 

20

 

 

 

16

 

Prism Education Group, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

200,000

 

 

 

43

 

 

 

 

Progress Financial

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series G

 

 

174,562

 

 

 

78

 

 

 

44

 

Reply! Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

137,225

 

 

 

320

 

 

 

215

 

ShareThis, Inc.(14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

546

 

 

 

195

 

Tectura Corporation

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B-1

 

 

253,378

 

 

 

51

 

 

 

 

WaveMarket, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B-1

 

 

1,083,779

 

 

 

105

 

 

 

18

 

Subtotal: Internet Consumer & Business Services (0.34%)*

 

 

 

 

 

 

 

 

 

 

3,495

 

 

 

2,216

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Everyday Health, Inc. (pka Waterfront Media, Inc.)(3)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

73,345

 

 

 

60

 

 

 

747

 

Mode Media Corporation(14)

 

Media/Content/Info

 

Warrant

 

Preferred Series D

 

 

407,457

 

 

 

482

 

 

 

 

Rhapsody International, Inc.(14)

 

Media/Content/Info

 

Warrant

 

Common Stock

 

 

715,755

 

 

 

384

 

 

 

258

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

249

 

Subtotal: Media/Content/Info (0.19%)*

 

 

 

 

 

 

 

 

 

 

1,274

 

 

 

1,254

 

See notes to consolidated financial statements.

18


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation(3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

516,129

 

 

$

459

 

 

$

488

 

Baxano Surgical, Inc.(3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

882,353

 

 

 

439

 

 

 

97

 

Gelesis, Inc.(6)(14)

 

Medical Devices & Equipment

 

Warrant

 

LLC Interest

 

 

263,688

 

 

 

78

 

 

 

2

 

Home Dialysis Plus, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

300,000

 

 

 

245

 

 

 

274

 

InspireMD, Inc.(3)(5)(10)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

168,351

 

 

 

242

 

 

 

189

 

Medrobotics Corporation(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

261

 

MELA Sciences, Inc.(3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

693,202

 

 

 

401

 

 

 

19

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

2,568

 

 

 

408

 

 

 

138

 

NinePoint Medical, Inc.(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

204

 

Novasys Medical, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

109,449

 

 

 

2

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

526,840

 

 

 

125

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D-1

 

 

53,607

 

 

 

6

 

 

 

 

Total Novasys Medical, Inc.

 

 

 

 

 

 

 

 

689,896

 

 

 

133

 

 

 

 

Optiscan Biomedical, Corp.(6)(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

10,535,275

 

 

 

1,253

 

 

 

167

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

954

 

 

 

66

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series 1

 

 

1,632,084

 

 

 

676

 

 

 

 

Total Oraya Therapeutics

 

 

 

 

 

 

 

 

1,633,038

 

 

 

742

 

 

 

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

69,371

 

 

 

103

 

 

 

100

 

SonaCare Medical, LLC (pka US HIFU, LLC)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

409,704

 

 

 

188

 

 

 

152

 

United Orthopedic Group, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

423,076

 

 

 

608

 

 

 

543

 

ViewRay, Inc.(14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

312,500

 

 

 

333

 

 

 

293

 

Subtotal: Medical Devices & Equipment (0.44%)*

 

 

 

 

 

 

 

 

 

 

6,172

 

 

 

2,927

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

160

 

 

 

14

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

102,958

 

 

 

14

 

 

 

18

 

SiTime Corporation(14)

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

195,683

 

 

 

24

 

 

 

2

 

Subtotal: Semiconductors (0.01%)*

 

 

 

 

 

 

 

 

 

 

198

 

 

 

34

 

See notes to consolidated financial statements.

19


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of

Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atrenta, Inc.

 

Software

 

Warrant

 

Preferred Series D

 

 

392,670

 

 

$

121

 

 

$

431

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

276

 

Central Desktop, Inc.(14)

 

Software

 

Warrant

 

Preferred Series B

 

 

522,769

 

 

 

108

 

 

 

275

 

Clickfox, Inc.(14)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

329

 

 

 

306

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

251

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

46,109

 

 

 

14

 

 

 

14

 

Total Clickfox

 

 

 

 

 

 

 

 

1,676,691

 

 

 

1,073

 

 

 

571

 

Daegis Inc. (pka Unify Corporation)(3)(14)

 

Software

 

Warrant

 

Common Stock

 

 

718,860

 

 

 

1,433

 

 

 

73

 

ForeScout Technologies, Inc.

 

Software

 

Warrant

 

Preferred Series E

 

 

80,587

 

 

 

41

 

 

 

83

 

Hillcrest Laboratories, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

1,865,650

 

 

 

54

 

 

 

118

 

Knowledge Holdings, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

550,781

 

 

 

15

 

 

 

12

 

Mobile Posse, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

91

 

Neos Geosolutions, Inc.(14)

 

Software

 

Warrant

 

Preferred Series 3

 

 

221,150

 

 

 

22

 

 

 

 

Sonian, Inc.(14)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

66

 

SugarSync, Inc.(14)

 

Software

 

Warrant

 

Preferred Series CC

 

 

332,726

 

 

 

78

 

 

 

72

 

 

 

Software

 

Warrant

 

Preferred Series DD

 

 

107,526

 

 

 

34

 

 

 

25

 

Total SugarSync, Inc.

 

 

 

 

 

 

 

 

440,252

 

 

 

112

 

 

 

97

 

Touchcommerce, Inc.(14)

 

Software

 

Warrant

 

Preferred Series E

 

 

992,595

 

 

 

252

 

 

 

115

 

White Sky, Inc.(14)

 

Software

 

Warrant

 

Preferred Series B-2

 

 

124,295

 

 

 

54

 

 

 

2

 

WildTangent, Inc.(14)

 

Software

 

Warrant

 

Preferred Series 3

 

 

100,000

 

 

 

238

 

 

 

56

 

Subtotal: Software (0.34%)*

 

 

 

 

 

 

 

 

 

 

4,205

 

 

 

2,266

 

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc.(3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

171,010

 

 

 

466

 

 

 

468

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Warrant

 

Preferred Series E

 

 

155,324

 

 

 

307

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.07%)*

 

 

 

 

 

 

 

 

 

 

773

 

 

 

468

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc.(14)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

74

 

 

 

32

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

411

 

Total Gynesonics

 

 

 

 

 

 

 

 

1,756,445

 

 

 

394

 

 

 

443

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

225

 

 

 

4

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

328

 

Total Transmedics, Inc

 

 

 

 

 

 

 

 

215,436

 

 

 

325

 

 

 

332

 

Subtotal: Surgical Devices (0.12%)*

 

 

 

 

 

 

 

 

 

 

719

 

 

 

775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Warrant (3.50%)*

 

 

 

 

 

 

 

 

 

 

 

 

35,591

 

 

 

23,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (150.53%)*

 

 

 

 

 

 

 

 

 

$

995,577

 

 

$

991,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements.

20


 

*

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 $47.4million, $53.9 million and $6.6 million respectively. The tax cost of investments is $992.8 million.

(3)

Except for warrants in twenty-seven publicly traded companies and common stock in ten publicly traded companies, all investments are restricted at June 30, 2014 and were valued at fair value as determined in good faith by the Audit Committee of 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 HTGC owns at least 5% but not more than 25% of the voting securities of the company.

(7)

Control investment that is defined under the Investment Company Act of 1940 as companies in which HTGC owns at least 25% of the voting securities of the company or has greater than 50% representation on its board.

(8)

Debt is on non-accrual status at June 30, 2014, and is therefore considered non-income producing.

(9)

Denotes that all or a portion of the debt investment is convertible senior debt.

(10)

Indicates assets that the Company deems not “qualifying assets” under section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.

(11)

Denotes that all or a portion of the debt investment secures the notes offered in the Debt Securitization (as defined in Note 4).

(12)

Denotes that all or a portion of the debt investment principal includes accumulated PIK, or paid-in-kind, interest and is net of repayments.

(13)

Denotes that all or a portion of the debt investment includes an exit fee receivable.

(14)

Denotes that all or a portion of the investment in this portfolio company is held by HT II or HT III, the Company’s wholly-owned SBIC subsidiaries.

 

 

 

 

See notes to consolidated financial statements.

21


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

(dollars in thousands)

 

 

Portfolio Company  

 

Sub-Industry

 

Type of
Investment(1)

 

Maturity
Date

 

Interest Rate and Floor

 

Principal
Amount

 

 

Cost(2)

 

 

Value(3)

 

Debt

  

 

 

 

 

Biotechnology Tools

  

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

Labcyte, Inc.(11)

 

Biotechnology Tools

 

Senior Secured

  

June 2016

 

Interest rate PRIME + 6.70% or Floor rate of 9.95%

 

$

4,270

  

 

$

4,323

 

 

$

4,289

  

Subtotal: 1-5 Years Maturity

  

 

 

4,323

 

 

 

4,289

  

Subtotal: Biotechnology Tools (0.66%)*

  

 

 

4,323

 

 

 

4,289

  

 

 

 

 

 

 

 

 

 

 

Energy Technology

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

American Superconductor Corporation(3)(11)

 

Energy Technology

 

Senior Secured

  

December 2014

 

Interest rate PRIME + 7.25% or Floor rate of 11.00%

 

$

4,615

  

 

 

4,991

 

 

 

4,991

  

Brightsource Energy, Inc.

 

Energy Technology

 

Senior Secured

  

January 2014

 

Interest rate Prime + 8.25% or Floor rate of 11.50%

 

$

15,000

  

 

 

15,886

 

 

 

15,886

  

Enphase Energy, Inc.(11)

 

Energy Technology

 

Senior Secured

  

June 2014

 

Interest rate PRIME + 5.75% or Floor rate of 9.00%

 

$

1,315

  

 

 

1,358

 

 

 

1,358

  

Subtotal: Under 1 Year Maturity

  

 

 

22,236

 

 

 

22,236

  

1-5 Years Maturity

 

 

 

 

 

Agrivida, Inc.

 

Energy Technology

 

Senior Secured

  

December 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

6,000

  

 

 

5,887

 

 

 

5,770

  

American Superconductor Corporation(3)(11)

 

Energy Technology

 

Senior Secured

  

November 2016

 

Interest rate PRIME + 7.25% or Floor rate of 11.00%

 

$

10,000

  

 

 

9,801

 

 

 

9,801

  

APTwater, Inc

 

Energy Technology

 

Senior Secured

  

April 2017

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%, PIK Interest 2.75%

 

$

18,085

  

 

 

17,874

 

 

 

17,874

  

BioAmber, Inc.(5)(10)

 

Energy Technology

 

Senior Secured

  

June 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

25,000

  

 

 

25,298

 

 

 

25,798

  

Enphase Energy, Inc.(11)

 

Energy Technology

 

Senior Secured

  

August 2016

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

7,400

  

 

 

7,422

 

 

 

7,314

  

Fluidic, Inc.

 

Energy Technology

 

Senior Secured

  

March 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

5,000

  

 

 

4,922

 

 

 

4,922

  

Fulcrum Bioenergy, Inc.(11)

 

Energy Technology

 

Senior Secured

  

November 2016

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

10,000

  

 

 

9,944

 

 

 

9,694

  

Glori Energy, Inc.(11)

 

Energy Technology

 

Senior Secured

  

June 2015

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

5,333

  

 

 

5,457

 

 

 

5,414

  

Polyera Corporation

 

Energy Technology

 

Senior Secured

  

June 2016

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

5,809

  

 

 

5,797

 

 

 

5,686

  

SCIEnergy, Inc.(4)

 

Energy Technology

 

Senior Secured

  

September 2015

 

Interest rate PRIME + 8.75% or Floor rate of 12.00%

 

$

4,448

  

 

 

4,596

 

 

 

4,685

  

Scifiniti (pka Integrated Photovoltaics, Inc.)

 

Energy Technology

 

Senior Secured

  

February 2015

 

Interest rate PRIME + 7.38% or Floor rate of 10.63%

 

$

1,463

  

 

 

1,443

 

 

 

1,429

  

Stion Corporation.(4)(6)

 

Energy Technology

 

Senior Secured

  

February 2015

 

Interest rate PRIME + 6.75% or Floor rate of 10.00%

 

$

4,571

  

 

 

4,005

 

 

 

4,096

  

TAS Energy, Inc.

 

Energy Technology

 

Senior Secured

  

February 2015

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

15,000

  

 

 

15,277

 

 

 

15,421

  

 

 

Energy Technology

 

Senior Secured

  

February 2015

 

Interest rate PRIME + 6.25% or Floor rate of 9.50%

 

$

4,503

  

 

 

4,374

 

 

 

4,338

  

Total TAS Energy, Inc.

  

 

 

19,651

 

 

 

19,760

  

TPI Composites, Inc.

 

Energy Technology

 

Senior Secured

  

June 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

15,000

  

 

 

14,888

 

 

 

14,889

  

Subtotal: 1-5 Years  Maturity

  

 

 

136,985

 

 

 

137,131

  

Subtotal: Energy Technology (24.52%)*(13)

  

 

 

159,221

 

 

 

159,367

  

 

Communications & Networking

  

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpenPeak, Inc.(11)

 

Communications & Networking

 

Senior Secured

 

July 2015

 

Interest rate PRIME + 8.75% or Floor rate of 12.00%

 

$

10,029

  

 

 

10,714

 

 

 

10,814

  

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 8.00% or Floor rate of 11.25%

 

$

20,000

  

 

 

19,682

 

 

 

19,875

  

Subtotal: 1-5 Years Maturity

  

 

 

30,396

 

 

 

30,690

  

Subtotal: Communications & Networking (4.72%)*

  

 

 

30,396

 

 

 

30,690

  

 

See notes to consolidated financial statements.

 

22


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

(dollars in thousands)

 

Portfolio Company  

 

Sub-Industry

 

Type of
Investment(1)

 

Maturity
Date

 

Interest Rate and Floor

 

Principal
Amount

 

 

Cost(2)

 

 

Value(3)

 

Drug Delivery

  

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

AcelRx Pharmaceuticals, Inc.(3)(10)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 3.85% or Floor rate of 9.10%

 

$

15,000

  

 

$

14,556

  

 

$

15,006

  

BIND Therapeutics, Inc.(3)

 

Drug Delivery

 

Senior Secured

 

September 2016

 

Interest rate Prime + 7.00% or Floor rate of 10.25%

 

$

4,500

  

 

 

4,407

  

 

 

4,458

  

Celsion Corporation(3)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

Interest rate Prime + 8.00% or Floor rate of 11.25%

 

$

5,000

  

 

 

4,897

  

 

 

4,897

  

Dance Biopharm, Inc.

 

Drug Delivery

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 7.4% or Floor rate of 10.65%

 

$

1,000

  

 

 

974

  

 

 

974

  

Intelliject, Inc.(11)

 

Drug Delivery

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 5.75% or Floor rate of 11.00%

 

$

15,000

  

 

 

15,150

  

 

 

15,450

  

NuPathe, Inc.(3)

 

Drug Delivery

 

Senior Secured

 

May 2016

 

Interest rate Prime - 3.25% or Floor rate of 9.85%

 

$

5,749

  

 

 

5,629

  

 

 

5,744

  

Revance Therapeutics, Inc.

 

Drug Delivery

 

Senior Secured

 

March 2015

 

Interest rate PRIME + 6.60% or Floor rate of 9.85%

 

$

9,798

  

 

 

10,032

  

 

 

9,943

  

 

 

Drug Delivery

 

Senior Secured

 

March 2015

 

Interest rate PRIME + 6.60% or Floor rate of 9.85%

 

$

980

  

 

 

1,011

  

 

 

994

  

Total Revance Therapeutics, Inc.

  

 

 

11,043

  

 

 

10,937

  

Subtotal: 1-5 Years Maturity

  

 

 

56,655

  

 

 

57,466

  

Subtotal: Drug Delivery (8.84%)*

  

 

 

56,655

  

 

 

57,466

  

 

 

 

 

 

 

 

 

 

 

Drug Discovery & Development

  

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

ADMA Biologics, Inc.(3)

 

Drug Discovery & Development

 

Senior Secured

 

April 2016

 

Interest rate Prime + 2.75% or Floor rate of 8.50%

 

$

5,000

  

 

 

4,956

  

 

 

4,892

  

Anacor Pharmaceuticals, Inc.

 

Drug Discovery & Development

 

Senior Secured

 

July 2017

 

Interst rate PRIME + 6.40% or Floor rate of 11.65%

 

$

30,000

  

 

 

29,083

  

 

 

29,810

  

Aveo Pharmaceuticals, Inc.(3)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

September 2015

 

Interest rate PRIME + 7.15% or Floor rate of 11.90%

 

$

19,396

  

 

 

19,396

  

 

 

19,590

  

Cell Therapeutics, Inc.(3)(11)

 

Drug Discovery & Development

 

Senior Secured

 

October 2016

 

Interest rate Prime + 9.00% or Floor rate of 12.25%

 

$

15,000

  

 

 

14,750

  

 

 

15,200

  

Cempra, Inc.(3)(11)

 

Drug Discovery & Development

 

Senior Secured

 

June 2017

 

Interest rate PRIME + 6.30% or Floor rate of 9.55%

 

$

15,000

  

 

 

14,795

  

 

 

14,550

  

Cleveland BioLabs, Inc.(3)

 

Drug Discovery & Development

 

Senior Secured

 

January 2017

 

Interest rate PRIME + 6.20% or Floor rate of 10.45%

 

$

6,000

  

 

 

5,909

  

 

 

5,909

  

Concert Pharmaceuticals, Inc.(4)

 

Drug Discovery & Development

 

Senior Secured

 

October 2015

 

Interest rate PRIME + 3.25% or Floor rate of 8.50%

 

$

15,091

  

 

 

14,933

  

 

 

14,649

  

Coronado Biosciences, Inc.(3)(11)

 

Drug Discovery & Development

 

Senior Secured

 

March 2016

 

Interest rate PRIME + 6.00% or Floor rate of 9.25%

 

$

13,654

  

 

 

13,720

  

 

 

13,449

  

Dicerna Pharmaceuticals, Inc.

 

Drug Discovery & Development

 

Senior Secured

 

January 2015

 

Interest rate PRIME + 4.40% or Floor rate of 10.15%

 

$

5,026

  

 

 

4,991

  

 

 

4,981

  

Insmed, Incorporated(11)

 

Drug Discovery & Development

 

Senior Secured

 

January 2016

 

Interest rate PRIME + 4.75% or Floor rate of 9.25%

 

$

20,000

  

 

 

19,708

  

 

 

19,535

  

Merrimack Pharmaceuticals, Inc.(3)

 

Drug Discovery & Development

 

Senior Secured

 

November 2016

 

Interest rate PRIME + 5.30% or Floor rate of 10.55%

 

$

40,000

  

 

 

40,314

  

 

 

39,455

  

Neuralstem, Inc.(3)

 

Drug Discovery & Development

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

8,000

  

 

 

7,874

  

 

 

8,035

  

Paratek Pharmaceuticals, Inc.

 

Drug Discovery & Development

 

Senior Secured

 

N/A

 

Interest rate Fixed 10.00%

 

$

36

  

 

 

36

  

 

 

  

 

 

Drug Discovery & Development

 

Senior Secured

 

N/A

 

Interest rate Fixed 10.00%

 

$

45

  

 

 

45

  

 

 

  

 

 

Drug Discovery & Development

 

Senior Secured

 

N/A

 

N/A

 

$

28

  

 

 

28

  

 

 

  

Total Paratek Pharmaceuticals, Inc.

 

$

109

  

 

 

109

  

 

 

  

uniQure B.V.(5)(10)(11)

 

Drug Discovery & Development

 

Senior Secured

 

October 2016

 

Interest rate PRIME + 8.60% or Floor rate of 11.85%

 

$

10,000

  

 

 

9,695

  

 

 

9,818

  

Subtotal: 1-5 Years Maturity

  

 

 

200,232

  

 

 

199,872

  

Subtotal: Drug Discovery & Development (30.75%)*

  

 

 

200,232

  

 

 

199,872

  

 

See notes to consolidated financial statements.

 

23


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

(dollars in thousands)

 

Portfolio Company  

 

Sub-Industry

 

Type of
Investment(1)

 

Maturity
Date

 

Interest Rate and Floor

 

Principal
Amount

 

 

Cost(2)

 

 

Value(3)

 

Electronics & Computer Hardware

  

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

Clustrix, Inc.

 

Electronics & Computer Hardware

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

524

  

 

$

526

  

 

$

526

  

Identive Group, Inc.(3)(11)

 

Electronics & Computer Hardware

 

Senior Secured

 

November 2015

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%

 

$

5,938

  

 

 

5,696

  

 

 

5,755

  

OCZ Technology Group, Inc.

 

Electronics & Computer Hardware

 

Senior Secured

 

April 2016

 

Interest rate Prime + 8.75% or Floor rate of 12.50%, PIK Interest 3.00%

 

$

1,221

  

 

 

1,221

  

 

 

1,221

  

Plures Technologies, Inc.(3)

 

Electronics & Computer Hardware

 

Senior Secured

 

October 2016

 

Interest rate Prime + 12.75% or Floor rate of 16.00%, PIK Interest 4.00%

 

$

2,046

  

 

 

1,958

  

 

 

1,458

  

Subtotal: 1-5 Years Maturity

  

 

 

9,400

  

 

 

8,959

  

Subtotal: Electronics & Computer Hardware (1.38%)*

  

 

 

9,400

  

 

 

8,959

  

 

 

 

 

 

 

 

 

 

 

Healthcare Services, Other

  

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

InstaMed Communications, LLC

 

Healthcare Services, Other

 

Senior Secured

 

December 2016

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%

 

$

3,000

  

 

 

2,979

  

 

 

2,979

  

MDEverywhere, Inc.

 

Healthcare Services, Other

 

Senior Secured

 

June 2016

 

Interest rate LIBOR + 9.50% or Floor rate of 10.75%

 

$

2,000

  

 

 

1,875

  

 

 

1,907

  

Orion Healthcorp, Inc.

 

Healthcare Services, Other

 

Senior Secured

 

June 2017

 

Interest rate LIBOR + 10.50% or Floor rate of 12.00%, PIK Interest 3.00%

 

$

6,591

  

 

 

6,467

  

 

 

6,413

  

 

 

Healthcare Services, Other

 

Senior Secured

 

June 2017

 

Interest rate LIBOR + 9.50% or Floor rate of 11.00%

 

$

9,000

  

 

 

8,838

  

 

 

8,445

  

 

 

Healthcare Services, Other

 

Senior Secured

 

June 2016

 

Interest rate LIBOR + 8.25% or Floor rate of 9.50%

 

$

500

  

 

 

465

  

 

 

461

  

Total Orion Healthcorp, Inc.

 

$

16,091

  

 

 

15,769

  

 

 

15,318

  

Pacific Child & Family Associates, LLC

 

Healthcare Services, Other

 

Senior Secured

 

January 2015

 

Interest rate LIBOR + 9.00% or Floor rate of 11.50%

 

$

1,946

  

 

 

2,017

  

 

 

1,988

  

 

 

Healthcare Services, Other

 

Senior Secured

 

January 2015

 

Interest rate LIBOR + 11.00% or Floor rate of 14.00%, PIK interest 3.75%

 

$

6,836

  

 

 

6,867

  

 

 

6,833

  

Total Pacific Child & Family Associates, LLC

 

$

8,782

  

 

 

8,884

  

 

 

8,822

  

Subtotal: 1-5 Years Maturity

  

 

 

29,508

  

 

 

29,025

  

Subtotal: Healthcare Services, Other (4.47%)*

  

 

 

29,508

  

 

 

29,025

  

 

 

 

 

 

 

 

 

 

 

Information Services

  

 

 

 

 

 

 

 

 

1-5 Years Maturity

  

 

 

 

 

 

 

 

 

Eccentex Corporation(11)

 

Information Services

 

Senior Secured

 

May 2015

 

Interest rate PRIME + 7.00% or Floor rate of 10.25%

 

$

657

  

 

 

658

  

 

 

185

  

InXpo, Inc.

 

Information Services

 

Senior Secured

 

April 2016

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

2,550

  

 

 

2,489

  

 

 

2,384

  

Jab Wireless, Inc.

 

Information Services

 

Senior Secured

 

November 2017

 

Interest rate Libor + 6.75% or Floor rate of 8.00%

 

$

30,000

  

 

 

29,822

  

 

 

29,822

  

 

 

Information Services

 

Senior Secured

 

November 2017

 

Interest rate Prime + 6.75% or Floor rate of 8.00%

 

$

2,000

  

 

 

1,996

  

 

 

1,996

  

Total Jab Wireless, Inc.

 

$

32,000

  

 

 

31,818

  

 

 

31,818

  

Womensforum.com(11)

 

Information Services

 

Senior Secured

 

October 2016

 

Interest rate LIBOR + 7.50% or Floor rate of 10.25%, PIK Interest 2.00%

 

$

4,607

  

 

 

4,536

  

 

 

4,127

  

 

 

Information Services

 

Senior Secured

 

October 2016

 

Interest rate LIBOR + 6.50% or Floor rate of 9.25%

 

$

6,900

  

 

 

6,793

  

 

 

6,470

  

 

 

Information Services

 

Senior Secured

 

April 2015

 

Interest rate LIBOR + 6.50% or Floor rate of 9.00%

 

$

1,250

  

 

 

1,227

  

 

 

1,156

  

Total Womensforum.com

 

$

12,757

  

 

 

12,556

  

 

 

11,754

  

Subtotal: 1-5 Years Maturity

  

 

 

47,521

  

 

 

46,140

  

Subtotal: Information Services (7.10%)*

  

 

 

47,521

  

 

 

46,140

  

 

See notes to consolidated financial statements.

 

24


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

(dollars in thousands)

 

Portfolio Company  

 

Sub-Industry

 

Type of
Investment(1)

 

Maturity
Date

 

Interest Rate and Floor

 

Principal
Amount

 

 

Cost(2)

 

 

Value(3)

 

Internet Consumer & Business Services

  

 

 

 

 

 

 

 

 

Under 1 Year Maturity

  

 

 

 

 

 

 

 

 

Gazelle, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2014

 

Interest rate PRIME + 6.50% or Floor rate of 9.75%

 

$

2,137

  

 

$

2,115

  

 

$

2,115

  

Tectura Corporation(8)

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

6,468

  

 

 

6,467

  

 

 

3,566

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 8.00% or Floor rate of 11.00%, PIK Interest 1.00%

 

$

10,777

  

 

 

10,777

  

 

 

5,943

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

563

  

 

 

563

  

 

 

310

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2014

 

Interest rate LIBOR + 10.00% or Floor rate of 13.00%

 

$

5,000

  

 

 

5,000

  

 

 

2,757

  

Total Tectura Corporation

 

$

22,807

  

 

 

22,806

  

 

 

12,576

  

Subtotal: Under 1 Year Maturity

  

 

 

24,921

  

 

 

14,691

  

1-5 Years Maturity

  

 

 

 

 

 

 

 

 

Blurb, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

6,351

 

 

 

6,216

  

 

 

6,054

  

CashStar, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2016

 

Interest rate Prime + 6.25% or Floor rate 10.50%, PIK Interest 1.00%

 

$

4,018

  

 

 

3,944

  

 

 

3,916

  

Education Dynamics, LLC

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2016

 

Interest rate Libor + 12.5% or Floor rate 12.50%, PIK Interest 1.5%

 

$

24,685

  

 

 

24,284

  

 

 

23,582

  

Gazelle, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2016

 

Interest rate Prime + 7.00% or Floor rate of 10.25%, PIK Interest 2.50%

 

$

12,365

  

 

 

12,283

  

 

 

12,128

  

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2017

 

Interest rate PRIME + 8.25% or Floor rate of 11.50%

 

$

5,000

  

 

 

4,842

  

 

 

4,842

  

NetPlenish(8)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate FIXED 10.00%

 

$

383

  

 

 

375

  

 

 

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2015

 

Interest rate FIXED 10.00%

 

$

97

  

 

 

97

  

 

 

  

Total NetPlenish

 

$

480

  

 

 

472

  

 

 

  

Reply! Inc.(11)

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2016

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%, PIK Interest 2.00%

 

$

3,031

  

 

 

3,051

  

 

 

3,034

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate Prime + 6.88% or Floor rate of 10.13%, PIK Interest 2.00%

 

$

9,169

  

 

 

9,086

  

 

 

9,169

  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate Prime + 7.25% or Floor rate of 11.00%, PIK Interest 2.00%

 

$

2,020

  

 

 

2,044

  

 

 

2,070

  

Total Reply! Inc.

 

$

14,220

  

 

 

14,181

  

 

 

14,273

  

ShareThis, Inc.

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2016

 

Interest rate PRIME + 7.50% or Floor rate of 10.75%

 

$

14,578

 

 

 

14,160

 

 

 

14,160

 

VaultLogix, LLC

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

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

 

$

7,897

 

 

 

7,927

 

 

 

7,525

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2016

 

Interest rate LIBOR + 8.50% or Floor rate of 10.00%, PIK interest 2.50%

 

$

7,949

  

 

 

7,898

  

 

 

7,397

  

Total VaultLogix, LLC

 

$

15,847

  

 

 

15,826

  

 

 

14,923

  

WaveMarket, Inc.(11)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate Prime + 5.75% or Floor rate of 9.50%

 

$

10,000

  

 

 

9,940

  

 

 

9,665

  

Subtotal: 1-5 Years Maturity

  

 

 

106,148

  

 

 

103,545

  

Subtotal: Internet Consumer & Business Services (18.19%)*

  

 

 

131,069

  

 

 

118,236

  

 

See notes to consolidated financial statements.

 

25


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

(dollars in thousands)

 

Portfolio Company  

 

Sub-Industry

 

Type of
Investment(1)

 

Maturity
Date

 

Interest Rate and Floor

 

Principal
Amount

 

 

Cost(2)

 

 

Value(3)

 

Media/Content/Info

  

 

 

 

 

 

 

 

 

Under 1 Year Maturity

  

 

 

 

 

 

 

 

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Senior Secured

 

December 2014

 

Interest rate PRIME + 5.25% or Floor rate of 8.50%

 

$

4,000

  

 

$

3,858

  

 

$

3,858

  

Subtotal: Under 1 Year Maturity

  

 

 

3,858

  

 

 

3,858

  

1-5 Years Maturity

  

 

 

 

 

 

 

 

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Senior Secured

 

December 2015

 

Interest rate PRIME + 7.25% and PIK + 3.75% or Floor rate of 10.50%

 

$

4,288

  

 

 

4,122

  

 

 

4,071

  

Subtotal: 1-5 Years Maturity

  

 

 

4,122

  

 

 

4,071

  

Subtotal: Media/Content/Info (1.22%)*

  

 

 

7,981

  

 

 

7,929

  

 

 

 

 

 

 

 

 

 

 

Medical Devices & Equipment

  

 

 

 

 

 

 

 

 

Under 1 Year Maturity

  

 

 

 

 

 

 

 

 

Oraya Therapeutics, Inc.(9)(11)

 

Medical Devices & Equipment

 

Senior Secured

 

December 2014

 

Interest rate Fixed 7.00%

 

$

500

  

 

 

500

  

 

 

500

  

Subtotal: Under 1 Year Maturity

  

 

 

500

  

 

 

500

  

1-5 Years Maturity

  

 

 

 

 

 

 

 

 

Baxano Surgical, Inc.(3)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 7.75% or Floor rate of 12.5%

 

$

7,500

  

 

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