UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

x

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

For The Quarterly Period Ended September 30, 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 November 3, 2014, there were 64,199,024 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 September 30, 2014 (unaudited) and December 31, 2013

  

3

 

 

 

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

  

5

 

 

 

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

  

6

 

 

 

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

  

7

 

 

 

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

  

8

 

 

 

Consolidated Schedule of Investments as of December 31, 2013

  

20

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

32

Item 2.

 

 

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

  

58

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

93

Item 4.

 

 

Controls and Procedures

  

94

 

PART II. OTHER INFORMATION

  

95

 

Item 1.

 

Legal Proceedings

  

95

 

 

 

Item 1A. Risk Factors

  

95

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

97

Item 3.

 

 

Defaults Upon Senior Securities

  

97

Item 4.

 

 

Mine Safety Disclosures

  

97

Item 5.

 

 

Other Information

  

97

Item 6.

 

 

Exhibits

  

97

 

SIGNATURES

  

98

 

 

 

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)

 

 

 

September 30, 2014

 

 

December 31, 2013

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $996,338 and $891,059, respectively)

 

$

990,068

 

 

$

899,314

 

Affiliate investments (cost of  $15,959 and $15,238, respectively)

 

 

8,845

 

 

 

10,981

 

Total investments, at value (cost of $1,012,297 and $906,297, respectively)

 

 

998,913

 

 

 

910,295

 

Cash and cash equivalents

 

 

158,627

 

 

 

268,368

 

Restricted cash

 

 

2,096

 

 

 

6,271

 

Interest receivable

 

 

9,146

 

 

 

8,962

 

Other assets

 

 

30,556

 

 

 

27,819

 

Total assets

 

$

1,199,338

 

 

$

1,221,715

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

11,613

 

 

$

14,268

 

Long-term Liabilities (Convertible Senior Notes)

 

 

40,012

 

 

 

72,519

 

Asset-Backed Notes

 

 

27,951

 

 

 

89,557

 

2019 Notes

 

 

170,364

 

 

 

170,364

 

2024 Notes

 

 

103,000

 

 

 

 

Long-term SBA Debentures

 

 

190,200

 

 

 

225,000

 

Total liabilities

 

$

543,140

 

 

$

571,708

 

Commitments and Contingencies (Note 10)

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

65

 

 

 

62

 

Capital in excess of par value

 

 

670,711

 

 

 

656,594

 

Unrealized appreciation (depreciation) on investments

 

 

(14,706

)

 

 

3,598

 

Accumulated realized losses on investments

 

 

(2,233

)

 

 

(15,240

)

Undistributed net investment income

 

 

2,361

 

 

 

4,993

 

Total net assets

 

$

656,198

 

 

$

650,007

 

Total liabilities and net assets

 

$

1,199,338

 

 

$

1,221,715

 

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

 

 

64,182

 

 

 

61,837

 

Net asset value per share

 

$

10.22

 

 

$

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)

 

September 30, 2014

 

 

December 31, 2013

 

ASSETS

 

 

 

 

 

 

 

 

Restricted Cash

 

$

2,096

 

 

$

6,271

 

Total investments, at value (cost of $87,405 and $166,513, respectively)

 

 

85,233

 

 

 

165,445

 

Total assets

 

$

87,329

 

 

$

171,716

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Asset-Backed Notes

 

$

27,951

 

 

$

89,557

 

Total liabilities

 

$

27,951

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

$

33,210

 

 

$

35,623

 

 

$

92,975

 

 

$

93,722

 

Affiliate investments

 

130

 

 

 

561

 

 

 

1,747

 

 

 

1,684

 

Total interest income

 

33,340

 

 

 

36,184

 

 

 

94,722

 

 

 

95,406

 

Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

3,671

 

 

 

4,832

 

 

 

12,037

 

 

 

11,088

 

Affiliate investments

 

8

 

 

 

5

 

 

 

30

 

 

 

9

 

Total fees

 

3,679

 

 

 

4,837

 

 

 

12,067

 

 

 

11,097

 

Total investment income

 

37,019

 

 

 

41,021

 

 

 

106,789

 

 

 

106,503

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

6,495

 

 

 

7,587

 

 

 

20,177

 

 

 

22,788

 

Loan fees

 

1,364

 

 

 

1,072

 

 

 

4,531

 

 

 

3,341

 

General and administrative

 

2,397

 

 

 

2,176

 

 

 

6,984

 

 

 

6,831

 

Employee Compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

3,922

 

 

 

7,030

 

 

 

11,375

 

 

 

14,992

 

Stock-based compensation

 

2,823

 

 

 

1,596

 

 

 

6,849

 

 

 

4,349

 

Total employee compensation

 

6,745

 

 

 

8,626

 

 

 

18,224

 

 

 

19,341

 

Total operating expenses

 

17,001

 

 

 

19,461

 

 

 

49,916

 

 

 

52,301

 

Loss on debt extinguishment (Long-term Liabilities - Convertible Senior Notes)

 

(1,023

)

 

 

 

 

 

(1,023

)

 

 

 

Net investment income

 

18,995

 

 

 

21,560

 

 

 

55,850

 

 

 

54,202

 

Net realized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

5,664

 

 

 

7,125

 

 

 

13,007

 

 

 

11,309

 

Total net realized gain on investments

 

5,664

 

 

 

7,125

 

 

 

13,007

 

 

 

11,309

 

Net increase in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

(10,029

)

 

 

9,288

 

 

 

(15,447

)

 

 

10,506

 

Affiliate investments

 

547

 

 

 

(992

)

 

 

(2,857

)

 

 

(1,468

)

Total net unrealized appreciation (depreciation) on investments

 

(9,482

)

 

 

8,296

 

 

 

(18,304

)

 

 

9,038

 

Total net realized and unrealized gain (loss)

 

(3,818

)

 

 

15,421

 

 

 

(5,297

)

 

 

20,347

 

Net increase in net assets resulting from operations

$

15,177

 

 

$

36,981

 

 

$

50,553

 

 

$

74,549

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

0.35

 

 

$

0.89

 

 

$

0.91

 

Change in net assets per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.24

 

 

$

0.61

 

 

$

0.80

 

 

$

1.26

 

Diluted

$

0.23

 

 

$

0.59

 

 

$

0.78

 

 

$

1.23

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

62,356

 

 

 

60,522

 

 

 

61,444

 

 

 

58,206

 

Diluted

 

63,779

 

 

 

60,750

 

 

 

63,554

 

 

 

58,396

 

Dividends declared per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.31

 

 

$

0.31

 

 

$

0.93

 

 

$

0.86

 

 

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

 

 

 

 

 

 

 

 

 

 

9,038

 

 

 

11,309

 

 

 

54,202

 

 

 

 

 

 

74,549

 

Issuance of common stock

 

1,337

 

 

 

1

 

 

 

16,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,543

 

Issuance of common stock under

   restricted stock plan

 

472

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock as

   stock dividend

 

142

 

 

 

 

 

 

1,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,923

 

Retired shares from net issuance

 

(1,170

)

 

 

(1

)

 

 

(18,259

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,260

)

Public offering

 

8,050

 

 

 

8

 

 

 

95,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,537

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47,292

)

 

 

 

 

 

(47,292

)

Stock-based compensation

 

 

 

 

 

 

 

4,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,408

 

Balance at September 30, 2013

 

61,756

 

 

$

62

 

 

$

664,650

 

 

$

1,091

 

 

$

(25,607

)

 

$

3,522

 

 

$

(342

)

 

$

643,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2013

 

61,837

 

 

$

62

 

 

$

656,594

 

 

$

3,598

 

 

$

(15,240

)

 

$

5,335

 

 

$

(342

)

 

$

650,007

 

Net increase (decrease) in net assets

   resulting from operations

 

 

 

 

 

 

 

 

 

 

(18,304

)

 

 

13,007

 

 

 

55,850

 

 

 

 

 

 

50,553

 

Issuance of common stock

 

256

 

 

 

 

 

 

2,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,873

 

Issuance of common stock under

   restricted stock plan

 

632

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock as

   stock dividend

 

76

 

 

 

 

 

 

1,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,152

 

Retired shares from net issuance

 

(193

)

 

 

 

 

 

(5,992

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,992

)

Public offering

 

1,574

 

 

 

2

 

 

 

9,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,182

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(58,482

)

 

 

 

 

 

(58,482

)

Stock-based compensation

 

 

 

 

 

 

 

6,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,905

 

Balance at September 30, 2014

 

64,182

 

 

$

65

 

 

$

670,711

 

 

$

(14,706

)

 

$

(2,233

)

 

$

2,703

 

 

$

(342

)

 

$

656,198

 

 

See notes to consolidated financial statements.

6


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

Nine Months Ended September 30,

 

 

2014

 

 

2013

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

$

50,553

 

 

$

74,549

 

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

   (used in) operating activities:

 

 

 

 

 

 

 

Purchase of investments

 

(415,399

)

 

 

(411,515

)

Principal payments received on investments

 

316,543

 

 

 

336,438

 

Proceeds from the sale of investments

 

17,977

 

 

 

29,459

 

Net unrealized depreciation (appreciation) on investments

 

18,304

 

 

 

(9,038

)

Net realized gain on investments

 

(13,007

)

 

 

(11,309

)

Accretion of paid-in-kind principal

 

(1,990

)

 

 

(2,269

)

Accretion of loan discounts

 

(7,690

)

 

 

(4,556

)

Accretion of loan discount on Convertible Senior Notes

 

738

 

 

 

812

 

Loss on conversion of Convertible Senior Notes

 

1,023

 

 

 

 

Accretion of loan exit fees

 

(754

)

 

 

(10,031

)

Change in deferred loan origination revenue

 

(616

)

 

 

2,540

 

Unearned fees related to unfunded commitments

 

(7,789

)

 

 

(364

)

Amortization of debt fees and issuance costs

 

4,131

 

 

 

2,918

 

Depreciation

 

161

 

 

 

162

 

Stock-based compensation and amortization of restricted stock grants

 

6,905

 

 

 

4,408

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

(184

)

 

 

(641

)

Prepaid expenses and other assets

 

59

 

 

 

570

 

Accounts payable

 

1,126

 

 

 

(63

)

Accrued liabilities

 

(4,203

)

 

 

2,588

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

(34,112

)

 

 

4,658

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(94

)

 

 

(240

)

Reduction of (investment in) restricted cash

 

4,175

 

 

 

(3,632

)

Other long-term assets

 

 

 

 

(30

)

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

4,081

 

 

 

(3,902

)

Cash flows from financing activities:

 

 

 

 

 

 

 

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

   common stock, net

 

6,734

 

 

 

93,443

 

Dividends paid

 

(57,330

)

 

 

(45,368

)

Issuance of 2024 Notes, net

 

99,655

 

 

 

 

Repayments of Asset-Backed Notes

 

(61,606

)

 

 

(26,832

)

Repayments of Long-Term SBA Debentures

 

(34,800

)

 

 

 

Cash paid for redemption of Convertible Senior Notes

 

(31,577

)

 

 

 

Fees paid for credit facilities and debentures

 

(786

)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(79,710

)

 

 

21,243

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(109,741

)

 

 

21,999

 

Cash and cash equivalents at beginning of period

 

268,368

 

 

 

182,994

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

$

158,627

 

 

$

204,993

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

Dividends Reinvested

$

1,152

 

 

$

1,923

 

Paid-in-Kind Principal

$

1,990

 

 

$

2,269

 

 

 

 

See notes to consolidated financial statements.

7


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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 Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

$

3,104

 

 

$

3,252

 

 

$

3,262

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

3,252

 

 

 

3,262

 

Subtotal: Biotechnology Tools (0.50%)*

 

 

 

 

 

 

 

 

 

 

 

 

3,252

 

 

 

3,262

 

 

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%

 

$

9,296

 

 

 

9,454

 

 

 

9,331

 

SkyCross, Inc.  (13)(14)

 

Communications & Networking

 

Senior Secured

 

January 2018

 

Interest rate PRIME + 9.70%

 

$

7,500

 

 

 

7,278

 

 

 

7,440

 

 

 

Communications & Networking

 

Senior Secured

 

January 2018

 

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

 

$

14,500

 

 

 

14,050

 

 

 

14,362

 

Total SkyCross, Inc.

 

 

 

 

 

 

 

 

 

$

22,000

 

 

 

21,328

 

 

 

21,802

 

Spring Mobile Solutions, Inc. (13)

 

Communications & Networking

 

Senior Secured

 

November 2016

 

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

 

$

18,840

 

 

 

18,886

 

 

 

19,075

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

49,668

 

 

 

50,208

 

Subtotal: Communications & Networking (7.65%)*

 

 

 

 

 

 

 

 

 

 

 

 

49,668

 

 

 

50,208

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fluc, Inc. (9)

 

Consumer & Business Products

 

Convertible Senior Note

 

March 2017

 

Interest rate FIXED 4.00%

 

$

100

 

 

 

100

 

 

 

100

 

Pong Research Corporation (13)(14)

 

Consumer & Business Products

 

Senior Secured

 

December 2017

 

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

 

$

5,000

 

 

 

4,872

 

 

 

4,872

 

The Neat Company (12)(13)(14)

 

Consumer & Business Products

 

Senior Secured

 

September 2017

 

Interest rate PRIME + 7.75% or Floor rate of 11.00%, PIK Interest 1.00%

 

$

20,010

 

 

 

19,221

 

 

 

19,221

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

24,193

 

 

 

24,193

 

Subtotal: Consumer & Business Products (3.69%)*

 

 

 

 

 

 

 

 

 

 

 

 

24,193

 

 

 

24,193

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

24,643

 

 

 

24,791

 

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

 

Drug Delivery

 

Senior Secured

 

September 2016

 

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

 

$

3,694

 

 

 

3,736

 

 

 

3,638

 

Celator Pharmaceuticals, Inc. (3)(13)

 

Drug Delivery

 

Senior Secured

 

December 2017

 

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

 

$

10,000

 

 

 

9,865

 

 

 

9,865

 

Celsion Corporation (3)(13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

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

 

$

10,000

 

 

 

9,763

 

 

 

9,966

 

Dance Biopharm, Inc. (13)(14)

 

Drug Delivery

 

Senior Secured

 

November 2017

 

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

 

$

4,000

 

 

 

3,935

 

 

 

3,965

 

Edge Therapeutics, Inc. (13)

 

Drug Delivery

 

Senior Secured

 

March 2018

 

Interest rate PRIME + 5.95% or Floor rate of 10.45%

 

$

3,000

 

 

 

2,846

 

 

 

2,846

 

Neos Therapeutics, Inc. (13)(14)

 

Drug Delivery

 

Senior Secured

 

October 2017

 

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

 

$

5,000

 

 

 

4,881

 

 

 

4,881

 

 

 

Drug Delivery

 

Senior Secured

 

October 2017

 

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

 

$

10,000

 

 

 

10,000

 

 

 

9,689

 

Total Neos Therapeutics, Inc.

 

 

 

 

 

 

 

 

 

$

15,000

 

 

 

14,881

 

 

 

14,570

 

Zosano Pharma, Inc. (13)

 

Drug Delivery

 

Senior Secured

 

June 2017

 

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

 

$

4,000

 

 

 

3,857

 

 

 

3,857

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

73,526

 

 

 

73,498

 

 

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%

 

$

410

 

 

 

445

 

 

 

445

 

 

 

Drug Delivery

 

Senior Secured

 

March 2015

 

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

 

$

4,096

 

 

 

4,439

 

 

 

4,439

 

Total Revance Therapeutics, Inc.

 

 

 

 

 

 

 

$

4,506

 

 

 

4,884

 

 

 

4,884

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,884

 

 

 

4,884

 

Subtotal: Drug Delivery (11.94%)*

 

 

 

 

 

 

 

 

 

 

 

 

78,410

 

 

 

78,382

 

 

See notes to consolidated financial statements.

8


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)(13)

 

Drug Discovery & Development

 

Senior Secured

 

June 2017

 

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

 

$

10,103

 

 

$

9,961

 

 

$

10,026

 

Anacor Pharmaceuticals, Inc. (14)

 

Drug Discovery & Development

 

Senior Secured

 

July 2017

 

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

 

$

30,000

 

 

 

29,316

 

 

 

29,916

 

Aveo Pharmaceuticals, Inc. (3)(10)(11)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

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

 

$

10,000

 

 

 

9,688

 

 

 

9,688

 

Celladon Corporation (3)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 3.00% or Floor rate of 8.25%

 

$

10,000

 

 

 

9,939

 

 

 

9,939

 

Cempra, Inc. (3)(13)

 

Drug Discovery & Development

 

Senior Secured

 

April 2018

 

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

 

$

18,000

 

 

 

18,010

 

 

 

18,010

 

Cerecor Inc. (13)

 

Drug Discovery & Development

 

Senior Secured

 

August 2017

 

Interest rate PRIME + 4.70% or Floor rate of 7.95%

 

$

7,500

 

 

 

7,337

 

 

 

7,337

 

Cleveland BioLabs, Inc. (3)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2017

 

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

 

$

2,000

 

 

 

2,000

 

 

 

2,040

 

Concert Pharmaceuticals, Inc. (3)(4)

 

Drug Discovery & Development

 

Senior Secured

 

October 2015

 

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

 

$

9,218

 

 

 

9,162

 

 

 

9,254

 

CTI BioPharma Corp. (pka Cell Therapeutics, Inc.) (11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

October 2016

 

Interest rate PRIME + 9.00% or Floor rate 12.25%

 

$

15,000

 

 

 

14,962

 

 

 

15,332

 

Insmed, Incorporated (11)(13)

 

Drug Discovery & Development

 

Senior Secured

 

January 2016

 

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

 

$

20,000

 

 

 

19,871

 

 

 

20,071

 

Neothetics, Inc. (pka Lithera, Inc) (13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

January 2018

 

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

 

$

4,000

 

 

 

3,909

 

 

 

3,909

 

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

 

 

 

40,516

 

 

 

40,599

 

Neuralstem, Inc. (9)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

June 2016

 

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

 

$

5,834

 

 

 

5,904

 

 

 

6,138

 

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

 

 

 

19,826

 

 

 

19,826

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

200,401

 

 

 

202,085

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aveo Pharmaceuticals, Inc. (3)(10)(11)(13)(14)

 

Drug Discovery & Development

 

Senior Secured

 

September 2015

 

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

 

$

11,611

 

 

 

11,611

 

 

 

11,611

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

11,611

 

 

 

11,611

 

Subtotal: Drug Discovery & Development (32.57%)*

 

 

 

 

 

 

 

 

 

 

 

 

212,012

 

 

 

213,696

 

 

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

 

 

 

180

 

 

 

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

180

 

 

 

 

Subtotal: Electronics & Computer Hardware (0.00%)*

 

 

 

 

 

 

 

 

 

 

 

 

180

 

 

 

 

 

See notes to consolidated financial statements.

9


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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)

 

Energy Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agrivida, Inc. (14)

 

Energy Technology

 

Senior Secured

 

December 2016

 

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

 

$

5,468

 

 

$

5,518

 

 

$

2,992

 

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

 

Energy Technology

 

Senior Secured

 

November 2016

 

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

 

$

8,667

 

 

 

8,763

 

 

 

8,741

 

Amyris, Inc. (10)(13)

 

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%

 

$

22,153

 

 

 

23,573

 

 

 

23,290

 

Enphase Energy, Inc. (13)

 

Energy Technology

 

Senior Secured

 

August 2016

 

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

 

$

5,861

 

 

 

5,956

 

 

 

6,001

 

Fluidic, Inc.  (13)

 

Energy Technology

 

Senior Secured

 

March 2016

 

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

 

$

4,347

 

 

 

4,386

 

 

 

4,370

 

Polyera Corporation (13)(14)

 

Energy Technology

 

Senior Secured

 

June 2016

 

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

 

$

4,214

 

 

 

4,346

 

 

 

4,369

 

TAS Energy, Inc. (13)

 

Energy Technology

 

Senior Secured

 

December 2015

 

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

 

$

8,506

 

 

 

8,674

 

 

 

8,608

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

91,216

 

 

 

88,371

 

 

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%

 

$

1,154

 

 

 

1,648

 

 

 

1,648

 

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

 

Energy Technology

 

Senior Secured

 

June 2015

 

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

 

$

2,667

 

 

 

2,908

 

 

 

2,908

 

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

 

Energy Technology

 

Senior Secured

 

February 2015

 

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

 

$

549

 

 

 

546

 

 

 

546

 

Stion Corporation (4)(6)(13)

 

Energy Technology

 

Senior Secured

 

February 2015

 

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

 

$

3,379

 

 

 

3,415

 

 

 

2,501

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

8,517

 

 

 

7,603

 

Subtotal: Energy Technology (14.63%)*

 

 

 

 

 

 

 

 

 

 

 

 

99,733

 

 

 

95,974

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (3)(13)(14)

 

Healthcare Services, Other

 

Senior Secured

 

April 2018

 

Interest rate PRIME + 6.10% or Floor rate of 9.35%

 

$

2,500

 

 

 

2,387

 

 

 

2,387

 

InstaMed Communications, LLC (13)(14)

 

Healthcare Services, Other

 

Senior Secured

 

December 2016

 

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

 

$

2,736

 

 

 

2,805

 

 

 

2,825

 

MDEverywhere, Inc. (13)

 

Healthcare Services, Other

 

Senior Secured

 

June 2017

 

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

 

$

2,383

 

 

 

2,375

 

 

 

2,266

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

7,567

 

 

 

7,478

 

Subtotal: Healthcare Services, Other (1.14%)*

 

 

 

 

 

 

 

 

 

 

 

 

7,567

 

 

 

7,478

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

2,056

 

 

 

2,064

 

Womensforum.com (11)(12)

 

Information Services

 

Senior Secured

 

October 2016

 

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

 

$

6,200

 

 

 

6,128

 

 

 

5,739

 

 

 

Information Services

 

Senior Secured

 

October 2016

 

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

 

$

4,678

 

 

 

4,624

 

 

 

4,342

 

Total Womensforum.com

 

 

 

 

 

 

 

 

 

$

10,878

 

 

 

10,752

 

 

 

10,081

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

12,808

 

 

 

12,145

 

 

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%

 

$

322

 

 

 

334

 

 

 

161

 

Womensforum.com (11)(12)

 

Information Services

 

Senior Secured

 

April 2015

 

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

 

$

1,250

 

 

 

1,241

 

 

 

1,162

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

1,575

 

 

 

1,323

 

Subtotal: Information Services (2.05%)*

 

 

 

 

 

 

 

 

 

 

 

 

14,383

 

 

 

13,468

 

 

See notes to consolidated financial statements.

10


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

$

7,120

 

 

$

7,008

 

 

$

7,074

 

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%

 

$

20,513

 

 

 

20,493

 

 

 

20,593

 

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%

 

$

13,625

 

 

 

13,410

 

 

 

13,410

 

Just Fabulous, Inc. (4)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2017

 

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

 

$

15,000

 

 

 

14,300

 

 

 

14,600

 

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

 

 

 

1,984

 

 

 

1,984

 

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

 

Internet Consumer & Business Services

 

Senior Secured

 

February 2016

 

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

 

$

2,939

 

 

 

2,825

 

 

 

2,883

 

Tapjoy, Inc. (13)

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2018

 

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

 

$

3,000

 

 

 

2,908

 

 

 

2,908

 

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%

 

$

8,102

 

 

 

8,090

 

 

 

8,090

 

WaveMarket, Inc. (11)(13)

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2016

 

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

 

$

8,195

 

 

 

8,172

 

 

 

8,253

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2017

 

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

 

$

331

 

 

 

334

 

 

 

343

 

Total WaveMarket, Inc.

 

 

 

 

 

 

 

 

 

$

8,526

 

 

 

8,506

 

 

 

8,596

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

79,524

 

 

 

80,138

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NetPlenish (8)(9)(14)

 

Internet Consumer & Business Services

 

Convertible Senior Note

 

April 2015

 

Interest rate FIXED 10.00%

 

$

92

 

 

 

92

 

 

 

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

Interest rate FIXED 10.00%

 

$

381

 

 

 

373

 

 

 

 

Total NetPlenish

 

 

 

 

 

 

 

 

 

$

473

 

 

 

465

 

 

 

 

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%

 

$

8,423

 

 

 

8,496

 

 

 

8,581

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

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

 

$

1,857

 

 

 

1,911

 

 

 

1,931

 

Total Reply! Inc.

 

 

 

 

 

 

 

 

 

$

10,280

 

 

 

10,407

 

 

 

10,512

 

Tectura Corporation (8)(12)

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

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

 

$

6,468

 

 

 

6,468

 

 

 

1,990

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

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

 

$

9,070

 

 

 

9,070

 

 

 

2,791

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

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

 

$

563

 

 

 

563

 

 

 

173

 

 

 

Internet Consumer & Business Services

 

Senior Secured

 

N/A

 

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

 

$

5,000

 

 

 

5,000

 

 

 

1,539

 

Total Tectura Corporation

 

 

 

 

 

 

 

 

 

$

21,101

 

 

 

21,101

 

 

 

6,493

 

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

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2015

 

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

 

$

5,740

 

 

 

5,876

 

 

 

5,876

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

37,849

 

 

 

22,881

 

Subtotal: Internet Consumer & Business Services (15.70%)*

 

 

 

 

 

 

 

 

 

 

 

 

117,373

 

 

 

103,019

 

 

See notes to consolidated financial statements.

11


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

$

20,129

 

 

$

19,618

 

 

$

19,612

 

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%

 

$

2,979

 

 

 

2,911

 

 

 

2,925

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

22,529

 

 

 

22,537

 

 

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%

 

$

4,500

 

 

 

4,474

 

 

 

4,474

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,474

 

 

 

4,474

 

Subtotal: Media/Content/Info (4.12%)*

 

 

 

 

 

 

 

 

 

 

 

 

27,003

 

 

 

27,011

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation (3)(9)(13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

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

 

$

20,000

 

 

 

19,501

 

 

 

19,783

 

Avedro, Inc. (13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

December 2017

 

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

 

$

7,500

 

 

 

7,183

 

 

 

7,183

 

Baxano Surgical, Inc. (3)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2017

 

Interest rate PRIME + 7.75% or Floor rate of 12.50%

 

$

7,500

 

 

 

7,405

 

 

 

4,925

 

Gamma Medica, Inc. (13)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

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

 

$

4,000

 

 

 

3,840

 

 

 

3,840

 

Home Dialysis Plus, Inc. (4)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

October 2017

 

Interest rate PRIME + 4.35% or Floor rate of 9.60%

 

$

15,000

 

 

 

14,732

 

 

 

14,732

 

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

 

Medical Devices & Equipment

 

Senior Secured

 

February 2017

 

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

 

$

9,710

 

 

 

9,694

 

 

 

9,653

 

Medrobotics Corporation (13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

March 2016

 

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

 

$

3,170

 

 

 

3,223

 

 

 

3,217

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Senior Secured

 

August 2017

 

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

 

$

5,000

 

 

 

4,796

 

 

 

4,878

 

NinePoint Medical, Inc. (13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2016

 

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

 

$

3,941

 

 

 

4,026

 

 

 

4,013

 

Quanterix Corporation (13)

 

Medical Devices & Equipment

 

Senior Secured

 

November 2017

 

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

 

$

5,000

 

 

 

4,895

 

 

 

4,895

 

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%

 

$

4,167

 

 

 

4,402

 

 

 

4,315

 

SynergEyes, Inc. (13)(14)

 

Medical Devices & Equipment

 

Senior Secured

 

January 2018

 

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

 

$

5,000

 

 

 

4,982

 

 

 

4,982

 

United Orthopedic Group, Inc. (13)

 

Medical Devices & Equipment

 

Senior Secured

 

July 2016

 

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

 

$

24,288

 

 

 

24,334

 

 

 

24,577

 

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%

 

$

15,163

 

 

 

14,807

 

 

 

14,603

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

127,820

 

 

 

125,596

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Dialysis Plus, Inc. (4)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

September 2015

 

Interest rate FIXED 8.00%

 

$

500

 

 

 

500

 

 

 

500

 

Oraya Therapeutics, Inc. (11)(12)(13)

 

Medical Devices & Equipment

 

Senior Secured

 

September 2015

 

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

 

$

6,159

 

 

 

6,120

 

 

 

4,443

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,620

 

 

 

4,943

 

Subtotal: Medical Devices & Equipment (19.89%)*

 

 

 

 

 

 

 

 

 

 

 

 

134,440

 

 

 

130,539

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

4,963

 

 

 

4,991

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

4,963

 

 

 

4,991

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Senior Secured

 

January 2015

 

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

 

$

341

 

 

 

341

 

 

 

341

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

341

 

 

 

341

 

Subtotal: Semiconductors (0.81%)*

 

 

 

 

 

 

 

 

 

 

 

 

5,304

 

 

 

5,332

 

 

See notes to consolidated financial statements.

12


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CareCloud Corporation (13)(14)

 

Software

 

Senior Secured

 

July 2017

 

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

 

$

10,000

 

 

$

9,792

 

 

$

9,792

 

Clickfox, Inc. (13)(14)

 

Software

 

Senior Secured

 

September 2017

 

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

 

$

6,000

 

 

 

5,981

 

 

 

5,981

 

Knowledge Adventure, Inc. (13)(14)

 

Software

 

Senior Secured

 

March 2018

 

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

 

$

11,750

 

 

 

11,712

 

 

 

11,770

 

Mobile Posse, Inc. (13)(14)

 

Software

 

Senior Secured

 

December 2016

 

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

 

$

3,274

 

 

 

3,241

 

 

 

3,274

 

Neos Geosolutions, Inc. (13)(14)

 

Software

 

Senior Secured

 

May 2016

 

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

 

$

2,707

 

 

 

2,811

 

 

 

2,829

 

Poplicus, Inc. (13)(14)

 

Software

 

Senior Secured

 

June 2017

 

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

 

$

1,500

 

 

 

1,493

 

 

 

1,493

 

Soasta, Inc. (13)(14)

 

Software

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 4.75% or Floor rate of 8.00%

 

$

15,000

 

 

 

14,289

 

 

 

14,289

 

 

 

Software

 

Senior Secured

 

February 2018

 

Interest rate PRIME + 2.25% or Floor rate of 5.50%

 

$

3,500

 

 

 

3,334

 

 

 

3,334

 

Total Soasta, Inc.

 

 

 

 

 

 

 

 

 

$

18,500

 

 

 

17,623

 

 

 

17,623

 

Sonian, Inc. (13)(14)

 

Software

 

Senior Secured

 

July 2017

 

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

 

$

5,500

 

 

 

5,421

 

 

 

5,427

 

StartApp, Inc. (13)

 

Software

 

Senior Secured

 

March 2017

 

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

 

$

2,981

 

 

 

3,046

 

 

 

3,038

 

Touchcommerce, Inc. (14)

 

Software

 

Senior Secured

 

June 2017

 

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

 

$

5,000

 

 

 

4,692

 

 

 

4,742

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

65,812

 

 

 

65,969

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clickfox, Inc. (13)(14)

 

Software

 

Senior Secured

 

July 2015

 

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

 

$

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

Software

 

Senior Secured

 

January 2015

 

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

 

$

2,500

 

 

 

2,494

 

 

 

2,494

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

 

$

4,500

 

 

 

4,494

 

 

 

4,494

 

Hillcrest Laboratories, Inc. (14)

 

Software

 

Senior Secured

 

July 2015

 

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

 

$

1,460

 

 

 

1,452

 

 

 

1,467

 

Mobile Posse, Inc. (14)

 

Software

 

Senior Secured

 

June 2015

 

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

 

$

500

 

 

 

489

 

 

 

489

 

StartApp, Inc. (13)

 

Software

 

Senior Secured

 

December 2014

 

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

 

$

200

 

 

 

200

 

 

 

200

 

Touchcommerce, Inc. (14)

 

Software

 

Senior Secured

 

December 2014

 

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

 

$

3,811

 

 

 

3,804

 

 

 

3,802

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

10,439

 

 

 

10,452

 

Subtotal: Software (11.65%)*

 

 

 

 

 

 

 

 

 

 

 

 

76,251

 

 

 

76,421

 

 

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%

 

$

35,000

 

 

 

34,050

 

 

 

33,225

 

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%

 

$

17,137

 

 

 

17,007

 

 

 

16,922

 

Rockwell Medical, Inc.  (13)(14)

 

Specialty Pharmaceuticals

 

Senior Secured

 

March 2017

 

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

 

$

19,436

 

 

 

19,840

 

 

 

19,840

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

70,897

 

 

 

69,987

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Specialty Pharmaceuticals

 

Senior Secured

 

August 2015

 

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

 

$

2,500

 

 

 

2,467

 

 

 

2,470

 

Subtotal: Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

2,467

 

 

 

2,470

 

Subtotal: Specialty Pharmaceuticals (11.04%)*

 

 

 

 

 

 

 

 

 

 

 

 

73,364

 

 

 

72,457

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmedics, Inc. (11)(13)

 

Surgical Devices

 

Senior Secured

 

November 2015

 

Interest rate FIXED 12.95%

 

$

6,583

 

 

 

6,483

 

 

 

6,483

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

6,483

 

 

 

6,483

 

Subtotal: Surgical Devices (0.99%)*

 

 

 

 

 

 

 

 

 

 

 

 

6,483

 

 

 

6,483

 

Total Debt Investments (138.36%)*

 

 

 

 

 

 

 

 

 

 

 

 

929,616

 

 

 

907,923

 

 

 

See notes to consolidated financial statements.

13


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuGEN Technologies, Inc. (14)

 

Biotechnology Tools

 

Equity

 

Preferred Series C

 

 

189,394

 

 

$

500

 

 

$

578

 

Subtotal: Biotechnology Tools (0.09%)*

 

 

 

 

 

 

 

 

 

 

500

 

 

 

578

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlowPoint, Inc. (3)

 

Communications & Networking

 

Equity

 

Common Stock

 

 

114,192

 

 

 

102

 

 

 

148

 

Peerless Network, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series A

 

 

1,000,000

 

 

 

1,000

 

 

 

4,398

 

Stoke, Inc.

 

Communications & Networking

 

Equity

 

Preferred Series E

 

 

152,905

 

 

 

500

 

 

 

 

Subtotal: Communications & Networking (0.69%)*

 

 

 

 

 

 

 

 

 

 

1,602

 

 

 

4,546

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Caivis Acquisition Corporation (14)

 

Consumer & Business Products

 

Equity

 

Common Stock

 

 

295,861

 

 

 

819

 

 

 

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Equity

 

Preferred Series B

 

 

187,970

 

 

 

500

 

 

 

224

 

Subtotal: Consumer & Business Products (0.03%)*

 

 

 

 

 

 

 

 

 

 

1,319

 

 

 

224

 

 

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

 

 

 

298

 

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

 

 

 

1,523

 

Transcept Pharmaceuticals, Inc. (3)(15)

 

Drug Delivery

 

Equity

 

Common Stock

 

 

41,570

 

 

 

500

 

 

 

84

 

Subtotal: Drug Delivery (0.29%)*

 

 

 

 

 

 

 

 

 

 

2,117

 

 

 

1,905

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acceleron Pharma, Inc. (3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

147,001

 

 

 

1,025

 

 

 

4,401

 

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

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

167,864

 

 

 

842

 

 

 

186

 

Celladon Corporation (3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

105,263

 

 

 

1,000

 

 

 

892

 

Cerecor Inc.

 

Drug Discovery & Development

 

Equity

 

Preferred Series B

 

 

3,334,445

 

 

 

1,000

 

 

 

1,008

 

Dicerna Pharmaceuticals, Inc. (3)(14)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

142,858

 

 

 

1,000

 

 

 

1,818

 

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

 

 

 

7,523

 

Paratek Pharmaceuticals, Inc. (15)

 

Drug Discovery & Development

 

Equity

 

Common Stock

 

 

2,881

 

 

 

5

 

 

 

2

 

 

 

Drug Discovery & Development

 

Equity

 

Preferred Series A

 

 

167,468

 

 

 

1,126

 

 

 

156

 

Total Partek Pharmaceuticals, Inc.

 

 

 

 

 

 

 

 

170,349

 

 

 

1,131

 

 

 

158

 

Subtotal: Drug Discovery & Development (2.44%)*

 

 

 

 

 

 

 

 

 

 

10,711

 

 

 

15,986

 

 

Energy Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glori Energy, Inc. (3)

 

Energy Technology

 

Equity

 

Common Stock

 

 

18,208

 

 

 

165

 

 

 

142

 

SCIEnergy, Inc.

 

Energy Technology

 

Equity

 

Preferred Series 1

 

 

385,000

 

 

 

761

 

 

 

25

 

Subtotal: Energy Technology (0.03%)*

 

 

 

 

 

 

 

 

 

 

926

 

 

 

167

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Information Services

 

Equity

 

Common Stock

 

 

500,000

 

 

 

603

 

 

 

473

 

Subtotal: Information Services (0.07%)*

 

 

 

 

 

 

 

 

 

 

603

 

 

 

473

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc. (14)

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

220,653

 

 

 

175

 

 

 

377

 

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

 

 

 

246

 

Taptera, Inc.

 

Internet Consumer & Business Services

 

Equity

 

Preferred Series B

 

 

454,545

 

 

 

150

 

 

 

152

 

Subtotal: Internet Consumer & Business Services (0.12%)*

 

 

 

 

 

 

 

 

 

 

668

 

 

 

775

 

 

Media/Content/Info

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Media/Content/Info

 

Equity

 

Common Stock

 

 

97,060

 

 

 

1,000

 

 

 

1,356

 

Subtotal: Media/Content/Info (0.21%)*

 

 

 

 

 

 

 

 

 

 

1,000

 

 

 

1,356

 

 

See notes to consolidated financial statements.

14


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gelesis, Inc. (6)(14)

 

Medical Devices & Equipment

 

Equity

 

LLC Interest

 

 

2,024,092

 

 

$

925

 

 

$

314

 

Medrobotics Corporation (14)

 

Medical Devices & Equipment

 

Equity

 

Preferred Series E

 

 

136,798

 

 

 

250

 

 

 

271

 

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

 

 

 

421

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series C

 

 

1,927,309

 

 

 

655

 

 

 

130

 

 

 

Medical Devices & Equipment

 

Equity

 

Preferred Series D

 

 

55,103,923

 

 

 

5,257

 

 

 

5,257

 

Total Optiscan Biomedical, Corp.

 

 

 

 

 

 

 

 

63,216,799

 

 

 

8,912

 

 

 

5,808

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Equity

 

Preferred Series 1

 

 

1,086,969

 

 

 

500

 

 

 

 

Subtotal: Medical Devices & Equipment (0.97%)*

 

 

 

 

 

 

 

 

 

 

11,587

 

 

 

6,393

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atrenta, Inc.

 

Software

 

Equity

 

Preferred Series C

 

 

1,196,845

 

 

 

986

 

 

 

1,391

 

Atrenta, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

635,513

 

 

 

508

 

 

 

1,098

 

Total Atrenta, Inc.

 

 

 

 

 

 

 

 

1,832,358

 

 

 

1,494

 

 

 

2,489

 

Box, Inc. (14)

 

Software

 

Equity

 

Preferred Series B

 

 

271,070

 

 

 

251

 

 

 

5,439

 

 

 

Software

 

Equity

 

Preferred Series C

 

 

589,844

 

 

 

872

 

 

 

11,834

 

 

 

Software

 

Equity

 

Preferred Series D

 

 

158,133

 

 

 

500

 

 

 

3,173

 

 

 

Software

 

Equity

 

Preferred Series D-1

 

 

186,766

 

 

 

1,694

 

 

 

3,747

 

 

 

Software

 

Equity

 

Preferred Series D-2

 

 

220,751

 

 

 

2,001

 

 

 

4,429

 

 

 

Software

 

Equity

 

Preferred Series E

 

 

38,183

 

 

 

500

 

 

 

766

 

Total Box, Inc.

 

 

 

 

 

 

 

 

1,464,747

 

 

 

5,818

 

 

 

29,388

 

CapLinked, Inc.

 

Software

 

Equity

 

Preferred Series A-3

 

 

53,614

 

 

 

51

 

 

 

90

 

ForeScout Technologies, Inc.

 

Software

 

Equity

 

Preferred Series D

 

 

319,099

 

 

 

398

 

 

 

724

 

HighRoads, Inc.

 

Software

 

Equity

 

Preferred Series B

 

 

190,170

 

 

 

307

 

 

 

146

 

Subtotal: Software (5.00%)*

 

 

 

 

 

 

 

 

 

 

8,068

 

 

 

32,837

 

 

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

 

 

 

138

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

1,991,157

 

 

 

712

 

 

 

1,000

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

2,866,993

 

 

 

1,244

 

 

 

1,221

 

Transmedics, Inc.

 

Surgical Devices

 

Equity

 

Preferred Series B

 

 

88,961

 

 

 

1,100

 

 

 

292

 

 

 

Surgical Devices

 

Equity

 

Preferred Series C

 

 

119,999

 

 

 

300

 

 

 

158

 

 

 

Surgical Devices

 

Equity

 

Preferred Series D

 

 

260,000

 

 

 

650

 

 

 

928

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

468,960

 

 

 

2,050

 

 

 

1,378

 

Subtotal: Surgical Devices (0.40%)*

 

 

 

 

 

 

 

 

 

 

3,294

 

 

 

2,599

 

Total Equity Investments (10.45%)*

 

 

 

 

 

 

 

 

 

 

43,895

 

 

 

68,589

 

 

See notes to consolidated financial statements.

15


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Warrant Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biotechnology Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labcyte, Inc. (14)

 

Biotechnology Tools

 

Warrant

 

Preferred Series C

 

 

1,127,624

 

 

$

323

 

 

$

54

 

Subtotal: Biotechnology Tools (0.01%)*

 

 

 

 

 

 

 

 

 

 

323

 

 

 

54

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelepeer, Inc. (14)

 

Communications & Networking

 

Warrant

 

Preferred Series C

 

 

117,958

 

 

 

102

 

 

 

31

 

OpenPeak, Inc.

 

Communications & Networking

 

Warrant

 

Common Stock

 

 

108,982

 

 

 

149

 

 

 

121

 

PeerApp, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series B

 

 

298,779

 

 

 

61

 

 

 

42

 

Peerless Network, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series A

 

 

135,000

 

 

 

95

 

 

 

467

 

Ping Identity Corporation

 

Communications & Networking

 

Warrant

 

Preferred Series B

 

 

1,136,277

 

 

 

52

 

 

 

102

 

SkyCross, Inc. (14)

 

Communications & Networking

 

Warrant

 

Preferred Series F

 

 

9,762,777

 

 

 

393

 

 

 

417

 

Spring Mobile Solutions, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

2,834,375

 

 

 

418

 

 

 

358

 

Stoke, Inc.

 

Communications & Networking

 

Warrant

 

Preferred Series D

 

 

118,181

 

 

 

65

 

 

 

 

Subtotal: Communications & Networking (0.23%)*

 

 

 

 

 

 

 

 

 

 

1,335

 

 

 

1,538

 

 

Consumer & Business Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Beauty, Inc. (14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series B

 

 

190,234

 

 

 

230

 

 

 

365

 

Market Force Information, Inc.

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

99,286

 

 

 

24

 

 

 

2

 

Pong Research Corporation (14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series A

 

 

1,662,441

 

 

 

228

 

 

 

197

 

The Neat Company (14)

 

Consumer & Business Products

 

Warrant

 

Preferred Series C-1

 

 

540,540

 

 

 

365

 

 

 

328

 

Subtotal: Consumer & Business Products (0.14%)*

 

 

 

 

 

 

 

 

 

 

847

 

 

 

892

 

 

Diagnostic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Diagnostic

 

Warrant

 

Common Stock

 

 

333,333

 

 

 

244

 

 

 

25

 

Subtotal: Diagnostic (0.00%)*

 

 

 

 

 

 

 

 

 

 

244

 

 

 

25

 

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

176,730

 

 

 

786

 

 

 

330

 

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

 

 

 

43

 

Celator Pharmaceuticals, Inc. (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

158,006

 

 

 

107

 

 

 

92

 

Celsion Corporation (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

194,986

 

 

 

428

 

 

 

341

 

Dance Biopharm, Inc. (14)

 

Drug Delivery

 

Warrant

 

Preferred Series A

 

 

97,701

 

 

 

74

 

 

 

164

 

Edge Therapeutics, Inc.

 

Drug Delivery

 

Warrant

 

Preferred Series C

 

 

129,870

 

 

 

390

 

 

 

392

 

Intelliject, Inc.

 

Drug Delivery

 

Warrant

 

Preferred Series B

 

 

82,500

 

 

 

593

 

 

 

1,119

 

Neos Therapeutics, Inc. (14)

 

Drug Delivery

 

Warrant

 

Preferred Series C

 

 

170,000

 

 

 

285

 

 

 

275

 

Revance Therapeutics, Inc. (3)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

53,511

 

 

 

558

 

 

 

95

 

Transcept Pharmaceuticals, Inc. (3)(15)

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

61,452

 

 

 

87

 

 

 

 

Zosano Pharma, Inc.

 

Drug Delivery

 

Warrant

 

Common Stock

 

 

31,674

 

 

 

164

 

 

 

109

 

Subtotal: Drug Delivery (0.45%)*

 

 

 

 

 

 

 

 

 

 

4,484

 

 

 

2,960

 

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMA Biologics, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

66,550

 

 

 

218

 

 

 

230

 

Anthera Pharmaceuticals, Inc. (3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

40,178

 

 

 

984

 

 

 

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

608,696

 

 

 

194

 

 

 

184

 

Cempra, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

138,797

 

 

 

458

 

 

 

538

 

Cerecor Inc.

 

Drug Discovery & Development

 

Warrant

 

Preferred Series B

 

 

625,208

 

 

 

70

 

 

 

68

 

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

 

 

 

24

 

Concert Pharmaceuticals, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

70,796

 

 

 

368

 

 

 

144

 

Coronado Biosciences, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

73,009

 

 

 

142

 

 

 

38

 

Dicerna Pharmaceuticals, Inc. (3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

200

 

 

 

28

 

 

 

 

Epirus Biopharmaceuticals, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

64,194

 

 

 

276

 

 

 

276

 

Horizon Pharma, Inc. (3)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

22,408

 

 

 

231

 

 

 

23

 

Neothetics, Inc. (pka Lithera, Inc)(14)

 

Drug Discovery & Development

 

Warrant

 

Preferred Series C

 

 

114,285

 

 

 

89

 

 

 

89

 

Nanotherapeutics, Inc. (14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

50,296

 

 

 

838

 

 

 

839

 

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

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

37,174

 

 

 

218

 

 

 

79

 

Subtotal: Drug Discovery & Development (0.39%)*

 

 

 

 

 

 

 

 

 

 

4,709

 

 

 

2,532

 

 

See notes to consolidated financial statements.

16


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Electronics & Computer Hardware

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clustrix, Inc.

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

50,000

 

 

$

12

 

 

$

11

 

Identiv, Inc. (3)

 

Electronics & Computer Hardware

 

Warrant

 

Common Stock

 

 

99,208

 

 

 

247

 

 

 

584

 

Subtotal: Electronics & Computer Hardware (0.09%)*

 

 

 

 

 

 

 

 

 

 

259

 

 

 

595

 

 

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

 

 

 

145

 

American Superconductor Corporation (3)

 

Energy Technology

 

Warrant

 

Common Stock

 

 

512,820

 

 

 

391

 

 

 

86

 

Brightsource Energy, Inc. (14)

 

Energy Technology

 

Warrant

 

Preferred Series 1

 

 

175,000

 

 

 

780

 

 

 

220

 

Calera, Inc. (14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

44,529

 

 

 

513

 

 

 

 

EcoMotors, Inc. (14)

 

Energy Technology

 

Warrant

 

Preferred Series B

 

 

437,500

 

 

 

308

 

 

 

368

 

Fluidic, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

59,665

 

 

 

102

 

 

 

70

 

Fulcrum Bioenergy, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series C-1

 

 

280,897

 

 

 

275

 

 

 

204

 

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

 

 

 

161

 

Propel Fuels (14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

3,200,000

 

 

 

211

 

 

 

 

SCIEnergy, Inc.

 

Energy Technology

 

Warrant

 

Common Stock

 

 

530,811

 

 

 

181

 

 

 

 

 

 

Energy Technology

 

Warrant

 

Preferred Series 1

 

 

145,811

 

 

 

50

 

 

 

 

Total SCIEnergy, Inc.

 

 

 

 

 

 

 

 

676,622

 

 

 

231

 

 

 

 

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

 

Energy Technology

 

Warrant

 

Preferred Series A-1

 

 

390,000

 

 

 

82

 

 

 

67

 

Solexel, Inc. (14)

 

Energy Technology

 

Warrant

 

Preferred Series C

 

 

1,171,625

 

 

 

1,162

 

 

 

614

 

Stion Corporation (6)

 

Energy Technology

 

Warrant

 

Preferred Series Seed

 

 

2,154

 

 

 

1,378

 

 

 

 

TAS Energy, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series F

 

 

428,571

 

 

 

299

 

 

 

302

 

TPI Composites, Inc.

 

Energy Technology

 

Warrant

 

Preferred Series B

 

 

160

 

 

 

273

 

 

 

136

 

Trilliant, Inc. (14)

 

Energy Technology

 

Warrant

 

Preferred Series A

 

 

320,000

 

 

 

161

 

 

 

41

 

Subtotal: Energy Technology (0.37%)*

 

 

 

 

 

 

 

 

 

 

6,984

 

 

 

2,414

 

 

Healthcare Services, Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chromadex Corporation (3)(14)

 

Drug Discovery & Development

 

Warrant

 

Common Stock

 

 

419,020

 

 

 

157

 

 

 

159

 

MDEverywhere, Inc.

 

Healthcare Services, Other

 

Warrant

 

Common Stock

 

 

129

 

 

 

93

 

 

 

29

 

Subtotal: Healthcare Services, Other (0.03%)*

 

 

 

 

 

 

 

 

 

 

250

 

 

 

188

 

 

Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cha Cha Search, Inc. (14)

 

Information Services

 

Warrant

 

Preferred Series G

 

 

48,232

 

 

 

58

 

 

 

14

 

InXpo, Inc. (14)

 

Information Services

 

Warrant

 

Preferred Series C

 

 

648,400

 

 

 

98

 

 

 

13

 

 

 

Information Services

 

Warrant

 

Preferred Series C-1

 

 

740,832

 

 

 

58

 

 

 

15

 

Total InXpo, Inc.

 

 

 

 

 

 

 

 

1,389,232

 

 

 

156

 

 

 

28

 

Jab Wireless, Inc. (14)

 

Information Services

 

Warrant

 

Preferred Series A

 

 

266,567

 

 

 

265

 

 

 

934

 

RichRelevance, Inc. (14)

 

Information Services

 

Warrant

 

Preferred Series E

 

 

112,612

 

 

 

98

 

 

 

 

Subtotal: Information Services (0.15%)*

 

 

 

 

 

 

 

 

 

 

577

 

 

 

976

 

 

Internet Consumer & Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blurb, Inc. (14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

218,684

 

 

 

299

 

 

 

88

 

 

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

234,280

 

 

 

636

 

 

 

180

 

Total Blurb, Inc.

 

 

 

 

 

 

 

 

452,964

 

 

 

935

 

 

 

268

 

CashStar, Inc. (14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C-2

 

 

727,272

 

 

 

130

 

 

 

57

 

Gazelle, Inc. (14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series A-1

 

 

991,288

 

 

 

158

 

 

 

158

 

Just Fabulous, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

206,184

 

 

 

1,102

 

 

 

1,521

 

LightSpeed Retail, Inc. (5)(10)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

24,561

 

 

 

20

 

 

 

63

 

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

 

 

 

32

 

Reply! Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series B

 

 

137,225

 

 

 

320

 

 

 

9

 

ShareThis, Inc. (14)

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series C

 

 

493,502

 

 

 

547

 

 

 

133

 

Tapjoy, Inc.

 

Internet Consumer & Business Services

 

Warrant

 

Preferred Series D

 

 

430,485

 

 

 

263

 

 

 

93

 

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

 

 

 

 

Subtotal: Internet Consumer & Business Services (0.36%)*

 

 

 

 

 

 

 

 

 

 

3,752

 

 

 

2,334

 

 

See notes to consolidated financial statements.

17


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 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

 

Warrant

 

Common Stock

 

 

73,345

 

 

$

60

 

 

$

499

 

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

 

 

 

165

 

Zoom Media Group, Inc.

 

Media/Content/Info

 

Warrant

 

Preferred Series A

 

 

1,204

 

 

 

348

 

 

 

330

 

Subtotal: Media/Content/Info (0.15%)*

 

 

 

 

 

 

 

 

 

 

1,274

 

 

 

994

 

 

Medical Devices & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amedica Corporation (3)(14)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

516,129

 

 

 

459

 

 

 

13

 

Avedro, Inc. (14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series D

 

 

1,308,451

 

 

 

400

 

 

 

358

 

Baxano Surgical, Inc. (3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

882,353

 

 

 

439

 

 

 

53

 

Gamma Medica, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

357,500

 

 

 

170

 

 

 

171

 

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

 

 

500,000

 

 

 

403

 

 

 

438

 

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

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

168,351

 

 

 

242

 

 

 

102

 

Medrobotics Corporation (14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series E

 

 

455,539

 

 

 

370

 

 

 

259

 

MELA Sciences, Inc. (3)

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

69,320

 

 

 

400

 

 

 

3

 

NetBio, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

2,568

 

 

 

408

 

 

 

62

 

NinePoint Medical, Inc. (14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A-1

 

 

587,840

 

 

 

170

 

 

 

169

 

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

 

 

 

1,252

 

 

 

221

 

Oraya Therapeutics, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Common Stock

 

 

954

 

 

 

66

 

 

 

 

 

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series 1

 

 

1,632,084

 

 

 

678

 

 

 

 

Total Oraya Therapeutics, Inc.

 

 

 

 

 

 

 

 

1,633,038

 

 

 

744

 

 

 

 

Quanterix Corporation

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

69,371

 

 

 

103

 

 

 

91

 

SonaCare Medical, LLC (pka US HIFU, LLC)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

409,704

 

 

 

188

 

 

 

 

United Orthopedic Group, Inc.

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series A

 

 

423,076

 

 

 

608

 

 

 

 

ViewRay, Inc. (14)

 

Medical Devices & Equipment

 

Warrant

 

Preferred Series C

 

 

312,500

 

 

 

333

 

 

 

280

 

Subtotal: Medical Devices & Equipment (0.34%)*

 

 

 

 

 

 

 

 

 

 

6,900

 

 

 

2,222

 

 

Semiconductors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achronix Semiconductor Corporation

 

Semiconductors

 

Warrant

 

Preferred Series C

 

 

360,000

 

 

 

159

 

 

 

1

 

Avnera Corporation

 

Semiconductors

 

Warrant

 

Preferred Series E

 

 

102,958

 

 

 

14

 

 

 

21

 

SiTime Corporation (14)

 

Semiconductors

 

Warrant

 

Preferred Series G

 

 

195,683

 

 

 

24

 

 

 

 

Subtotal: Semiconductors (0.00%)*

 

 

 

 

 

 

 

 

 

 

197

 

 

 

22

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atrenta, Inc.

 

Software

 

Warrant

 

Preferred Series D

 

 

392,670

 

 

 

120

 

 

 

350

 

Braxton Technologies, LLC

 

Software

 

Warrant

 

Preferred Series A

 

 

168,750

 

 

 

188

 

 

 

 

CareCloud Corporation (14)

 

Software

 

Warrant

 

Preferred Series B

 

 

413,433

 

 

 

258

 

 

 

423

 

Central Desktop, Inc. (14)

 

Software

 

Warrant

 

Preferred Series B

 

 

522,769

 

 

 

108

 

 

 

296

 

Clickfox, Inc. (14)

 

Software

 

Warrant

 

Preferred Series B

 

 

1,038,563

 

 

 

330

 

 

 

456

 

 

 

Software

 

Warrant

 

Preferred Series C

 

 

592,019

 

 

 

730

 

 

 

354

 

 

 

Software

 

Warrant

 

Preferred Series C-A

 

 

46,109

 

 

 

14

 

 

 

20

 

Total Clickfox, Inc.

 

 

 

 

 

 

 

 

1,676,691

 

 

 

1,074

 

 

 

830

 

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

 

Software

 

Warrant

 

Common Stock

 

 

718,860

 

 

 

1,434

 

 

 

4

 

ForeScout Technologies, Inc.

 

Software

 

Warrant

 

Preferred Series E

 

 

80,587

 

 

 

41

 

 

 

57

 

Hillcrest Laboratories, Inc. (14)

 

Software

 

Warrant

 

Preferred Series E

 

 

1,865,650

 

 

 

54

 

 

 

79

 

Knowledge Holdings, Inc. (14)

 

Software

 

Warrant

 

Preferred Series E

 

 

550,781

 

 

 

15

 

 

 

7

 

Mobile Posse, Inc. (14)

 

Software

 

Warrant

 

Preferred Series C

 

 

396,430

 

 

 

130

 

 

 

79

 

Neos Geosolutions, Inc. (14)

 

Software

 

Warrant

 

Preferred Series 3

 

 

221,150

 

 

 

22

 

 

 

 

Soasta, Inc. (14)

 

Software

 

Warrant

 

Preferred Series E

 

 

410,800

 

 

 

691

 

 

 

772

 

Sonian, Inc. (14)

 

Software

 

Warrant

 

Preferred Series C

 

 

185,949

 

 

 

106

 

 

 

58

 

SugarSync, Inc. (14)

 

Software

 

Warrant

 

Preferred Series CC

 

 

332,726

 

 

 

78

 

 

 

87

 

 

 

Software

 

Warrant

 

Preferred Series DD

 

 

107,526

 

 

 

33

 

 

 

31

 

Total SugarSync, Inc.

 

 

 

 

 

 

 

 

440,252

 

 

 

111

 

 

 

118

 

Touchcommerce, Inc. (14)

 

Software

 

Warrant

 

Preferred Series E

 

 

992,595

 

 

 

252

 

 

 

123

 

White Sky, Inc. (14)

 

Software

 

Warrant

 

Preferred Series B-2

 

 

124,295

 

 

 

54

 

 

 

3

 

WildTangent, Inc. (14)

 

Software

 

Warrant

 

Preferred Series 3

 

 

100,000

 

 

 

238

 

 

 

46

 

Subtotal: Software (0.49%)*

 

 

 

 

 

 

 

 

 

 

4,896

 

 

 

3,245

 

See notes to consolidated financial statements.

18


 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of Investment(1)

 

Series

 

Shares

 

 

Cost(2)

 

 

Value(3)

 

Specialty Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alimera Sciences, Inc. (3)

 

Specialty Pharmaceuticals

 

Warrant

 

Common Stock

 

 

285,016

 

 

$

728

 

 

$

670

 

QuatRx Pharmaceuticals Company

 

Specialty Pharmaceuticals

 

Warrant

 

Preferred Series E

 

 

155,324

 

 

 

308

 

 

 

 

Subtotal: Specialty Pharmaceuticals (0.10%)*

 

 

 

 

 

 

 

 

 

 

1,036

 

 

 

670

 

 

Surgical Devices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gynesonics, Inc. (14)

 

Surgical Devices

 

Warrant

 

Preferred Series C

 

 

180,480

 

 

 

74

 

 

 

30

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

1,575,965

 

 

 

320

 

 

 

408

 

Total Gynesonics, Inc.

 

 

 

 

 

 

 

 

1,756,445

 

 

 

394

 

 

 

438

 

Transmedics, Inc.

 

Surgical Devices

 

Warrant

 

Preferred Series B

 

 

40,436

 

 

 

225

 

 

 

2

 

 

 

Surgical Devices

 

Warrant

 

Preferred Series D

 

 

175,000

 

 

 

100

 

 

 

300

 

Total Transmedics, Inc.

 

 

 

 

 

 

 

 

215,436

 

 

 

325

 

 

 

302

 

Subtotal: Surgical Devices (0.11%)*

 

 

 

 

 

 

 

 

 

 

719

 

 

 

740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Warrant Investments (3.41%)*

 

 

 

 

 

 

 

 

 

 

38,786

 

 

 

22,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments (152.23%)*

 

 

 

 

 

 

 

 

 

$

1,012,297

 

 

$

998,913

 

 

*

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 $42.7 million, $59.7 million and $17.0 million respectively. The tax cost of investments is $1.0 billion.

(3)

Except for warrants in twenty-nine publicly traded companies and common stock in eleven publicly traded companies, all investments are restricted at September 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. There were no control investments at September 30, 2014.

(8)

Debt is on non-accrual status at September 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.

(15)

Subsequent to September 30, 2014, this company completed a public merger. Note that the September 30, 2014 fair value does not reflect any potential impact of the conversion of our shares to the new entity.

 

 

See notes to consolidated financial statements.

19


 

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.

20


 

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.

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)

 

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