Edgar Filing: HERCULES TECHNOLOGY GROWTH CAPITAL INC

Form 10-Q

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 March 31, 2009

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

Commission File Number: 814-00702

HERCULES TECHNOLOGY GROWTH

CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland

743113410

(State or Jurisdiction of

Incorporation or Organization)

(IRS Employer

Identification No.)


400 Hamilton Ave., Suite 310 Palo Alto, California 94301		94301
(Address of Principal Executive Offices)		(Zip Code)

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

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

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

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

On May 8, 2009, there were 35,326,894 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 March 31, 2009 (unaudited) and December 31, 2008	3

	Consolidated Schedule of Investments as of March 31, 2009 (unaudited)	4

	Consolidated Schedule of Investments as of December 31, 2008	21

	Consolidated Statement of Operations for the three-month periods ended March 31, 2009 and 2008 (unaudited)	35

	Consolidated Statement of Changes in Net Assets for the three-month periods ended March 31, 2009 and 2008 (unaudited)	36

	Consolidated Statement of Cash Flows for the three-month periods ended March 31, 2009 and 2008 (unaudited)	37

	Notes to Consolidated Financial Statements (unaudited)	38

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65

Item 4.	Controls and Procedures	66

PART II. OTHER INFORMATION		66

Item 1.	Legal Proceedings	67

Item 1A.	Risk Factors	67

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68

Item 3.	Defaults Upon Senior Securities	68

Item 4.	Submission of Matters to a Vote of Security Holders	68

Item 5.	Other Information	68

Item 6.	Exhibits	69

SIGNATURES		70

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

(in thousands, except per share data)


	March 31, 2009 (unaudited)			December 31, 2008
Assets
Investments:
Non-affiliate investments (cost of $542,464 and $583,592)	$	531,027		$	579,079
Affiliate investments (cost of $7,421 and $8,756)		1,754			2,222

Total investments, at value (cost of $549,885 and $592,348 respectively)		532,781			581,301
Deferred loan origination revenue		(5,396	)		(6,871	)
Cash and cash equivalents		7,884			17,242
Interest receivable		7,961			8,803
Other assets		7,042			8,197

Total assets		550,272			608,672
Liabilities
Accounts payable and accrued liabilities		3,975			9,432
Short-term credit facility		—			89,582
Long-term credit facility		32,751			—
Long-term SBA Debentures		127,200			127,200

Total liabilities		163,926			226,214

Net assets	$	386,346		$	382,458

Net assets consist of:
Common stock, par value	$	35		$	33
Capital in excess of par value		405,755			395,760
Unrealized appreciation (depreciation) on investments		(17,227	)		(11,297	)
Accumulated realized gains on investments		2,760			3,906
Distributions in excess of investment income		(4,977	)		(5,944	)

Total net assets	$	386,346		$	382,458

Shares of common stock outstanding ($0.001 par value, 60,000 authorized)		35,325			33,096

Net asset value per share	$	10.94		$	11.56

See notes to consolidated financial statements (unaudited).

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Acceleron Pharmaceuticals, Inc. (0.54%)*	Drug Discovery	Senior Debt Matures January 2011 Interest rate 10.25%	$	1,385	$	1,367	$	1,367
		Preferred Stock Warrants				69		600
		Preferred Stock Warrants				35		113
Acceleron Pharmaceuticals, Inc. (0.44%)		Preferred Stock				1,243		1,691

Total Acceleron Pharmaceuticals, Inc.						2,714		3,771

Aveo Pharmaceuticals, Inc. (4.13%)	Drug Discovery	Senior Debt Matures November 2011 Interest rate 11.13%	$	15,000		14,918		14,918
		Preferred Stock Warrants				190		752
		Preferred Stock Warrants				104		223
		Preferred Stock Warrants				24		76

Total Aveo Pharmaceuticals, Inc.						15,236		15,969

Dicerna Pharmaceuticals, Inc. (0.51%)	Drug Discovery	Senior Debt Matures April 2012 Interest rate Prime + 9.20%	$	2,000		1,836		1,836
		Preferred Stock Warrants				164		153

Total Dicerna Pharmaceuticals, Inc.						2,000		1,989

Elixir Pharmaceuticals, Inc. (2.86%)	Drug Discovery	Senior Debt Matures January 2012 Interest rate Prime + 9.25%	$	11,000		11,000		11,000
		Preferred Stock Warrants				217		66

Total Elixir Pharmaceuticals, Inc.						11,217		11,066

EpiCept Corporation (0.10%)	Drug Discovery	Common Stock Warrants				31		163
		Common Stock Warrants				40		210
Epicept Corporation (0.04%)		Common Stock				22		143

Total EpiCept Corporation						93		516

Horizon Therapeutics, Inc. (1.76%)	Drug Discovery	Senior Debt Matures July 2011 Interest rate Prime + 1.50%	$	6,755		6,625		6,625
		Preferred Stock Warrants				231		204

Total Horizon Therapeutics, Inc.						6,856		6,829

Inotek Pharmaceuticals Corp. (0.31%)	Drug Discovery	Preferred Stock				1,500		1,211

Total Inotek Pharmaceuticals Corp.						1,500		1,211

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Merrimack Pharmaceuticals, Inc. (0.16%)	Drug Discovery	Preferred Stock Warrants			$	155	$	599
Merrimack Pharmaceuticals, Inc. (0.68%)		Preferred Stock				2,000		2,610

Total Merrimack Pharmaceuticals, Inc.						2,155		3,209

Paratek Pharmaceuticals, Inc. (0.03%)	Drug Discovery	Preferred Stock Warrants				137		98
Paratek Pharmaceuticals, Inc. (0.15%)		Preferred Stock				1,000		585

Total Paratek Pharmaceuticals, Inc.						1,137		683

Portola Pharmaceuticals, Inc. (2.77%)	Drug Discovery	Senior Debt Matures April 2011 Interest rate Prime + 2.16%	$	10,417		10,417		10,417
		Preferred Stock Warrants				152		290

Total Portola Pharmaceuticals, Inc.						10,569		10,707
Recoly, N.V. (0.78%)⁽⁵⁾	Drug Discovery	Senior Debt Matures May 2012 Interest rate Prime + 4.25%	$	3,000		3,000		3,000

Total Recoly, N.V.						3,000		3,000

Total Drug Discovery (15.26%)						56,477		58,950

Affinity Videonet, Inc. (1.63%)⁽⁴⁾	Communications & Networking	Senior Debt Matures June 2012 Interest rate Prime + 4.50%	$	3,761		3,742		3,742
		Senior Debt Matures June 2012 Interest rate Prime + 5.50%	$	2,000		2,000		2,000
		Revolving Line of Credit Matures June 2012 Interest rate Prime + 3.50%	$	500		500		500
		Preferred Stock Warrants				74		45

Total Affinity Videonet, Inc.						6,316		6,287
E-band Communications, Inc. (0.23%)⁽⁶⁾	Communications & Networking	Preferred Stock				2,000		904

Total E-Band Communications, Inc.						2,000		904

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
IKANO Communications, Inc. (2.85%)	Communications & Networking	Senior Debt Matures January 2011 Interest rate 12.00%	$	10,625	$	10,625	$	10,625
		Preferred Stock Warrants				45		148
		Preferred Stock Warrants				73		231

Total IKANO Communications, Inc.						10,743		11,004

Kadoink, Inc. (0.19%)	Communications & Networking	Senior Debt Matures April 2011 Interest rate Prime + 2.00%	$	1,695		1,657		753
		Preferred Stock Warrants				73		—
Kadoink, Inc. (0.00%)		Preferred Stock				250		—

Total Kadoink, Inc.						1,980		753

Neonova Holding Company (2.31%)	Communications & Networking	Senior Debt Matures September 2012 Interest rate Prime + 3.25%	$	8,888		8,826		8,826
		Preferred Stock Warrants				94		93
Neonova Holding Company (0.06%)		Preferred Stock				250		239

Total Neonova Holding Company						9,170		9,158
Peerless Network, Inc. (0.13%)⁽⁶⁾	Communications & Networking	Preferred Stock Warrants				95		—
Peerless Network, Inc. (0.00%)		Preferred Stock				1,000		500

Total Peerless Network, Inc.						1,095		500

Ping Identity Corporation (0.05%)	Communications & Networking	Preferred Stock Warrants				52		178

Total Ping Identity Corporation						52		178

Purcell Systems, Inc. (1.69%)	Communications & Networking	Revolving Line of Credit Matures July 2009 Interest rate Prime + 2.75%	$	6,000		6,000		6,000
		Preferred Stock Warrants				123		569

Total Purcell Systems, Inc.						6,123		6,569
Rivulet Communications, Inc. (0.49%)⁽⁴⁾	Communications & Networking	Senior Debt Matures March 2010 Interest rate Prime + 8.00%	$	1,867		1,771		1,771
		Preferred Stock Warrants				146		107
Rivulet Communications, Inc. (0.02%)		Preferred Stock				250		58

Total Rivulet Communications, Inc.						2,167		1,936

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Seven Networks, Inc. (2.39%)	Communications & Networking	Senior Debt Matures April 2010 Interest rate Prime + 6.00%	$	5,716	$	5,664	$	5,664
		Revolving Line of Credit Matures September 2009 Interest rate Prime + 5.00%	$	3,000		3,000		3,000
		Preferred Stock Warrants				174		575

Total Seven Networks, Inc.						8,838		9,239

Stoke, Inc. (0.61%)	Communications & Networking	Senior Debt Matures August 2010 Interest rate 10.55%	$	493		469		469
		Senior Debt Matures August 2010 Interest rate 10.05%	$	984		984		984
		Senior Debt Matures August 2010 Interest rate 7.30%	$	812		812		812
		Preferred Stock Warrants				53		84

Total Stoke, Inc.						2,318		2,349

Tectura Corporation (6.36%)	Communications & Networking	Senior Debt Matures June 2011 Interest rate LIBOR + 10.75%	$	6,784		7,022		7,022
		Revolving Line of Credit Matures April 2010 Interest rate LIBOR + 10.75%	$	17,507		17,507		17,507
		Preferred Stock Warrants				51		61

Total Tectura Corporation						24,580		24,590
Wireless Channels, Inc. (2.40%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2010 Interest rate Prime + 4.25%	$	10,000		10,462		8,462
		Senior Debt Matures April 2010 Interest rate Prime + 0.50%%	$	665		665		665
		Preferred Stock Warrants				155		155

Total Wireless Channels, Inc.						11,282		9,282

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Zayo Bandwidth, Inc. (6.37%)	Communications & Networking	Senior Debt Matures November 2013 Interest rate Libor + 5.25%	$	25,000	$	25,000	$	24,563

Total Zayo Bandwith, Inc.						25,000		24,563

Total Communications & Networking (27.78%)						111,664		107,312

Atrenta, Inc. (2.22%)⁽⁴⁾	Software	Senior Debt Matures January 2010 Interest rate 11.50%	$	2,345		2,322		2,322
		Revolving Line of Credit Matures October 2009 Interest rate Prime + 2.00%	$	6,000		6,000		6,000
		Preferred Stock Warrants				102		167
		Preferred Stock Warrants				34		55
		Preferred Stock Warrants				95		61
Atrenta, Inc. (0.04%)		Preferred Stock				250		164

Total Atrenta, Inc.						8,803		8,769

Blurb, Inc. (1.58%)	Software	Senior Debt Matures December 2009 Interest rate 9.55%	$	1,100		1,094		1,094
		Senior Debt Matures June 2011 Interest rate Prime + 3.50%	$	4,836		4,631		4,631
		Preferred Stock Warrants				25		237
		Preferred Stock Warrants				299		136

Total Blurb, Inc.						6,049		6,098
Braxton Technologies, LLC. (1.85%)⁽⁴⁾	Software	Senior Debt Matures July 2012 Interest rate 13.00%	$	6,996		6,972		6,972
		Preferred Stock Warrants				188		160

Total Braxton Technologies, LLC.						7,160		7,132

Bullhorn, Inc. (0.06%)	Software	Preferred Stock Warrants				43		215

Total Bullhorn, Inc.						43		215

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Cittio, Inc. (0.16%)	Software	Senior Debt Matures May 2010 Interest rate 11.00%	$	610	$	604	$	604
		Preferred Stock Warrants				53		—

Total Cittio, Inc.						657		604

Clickfox, Inc. (1.16%)	Software	Senior Debt Matures September 2011 Interest rate Prime + 5.00%	$	2,500		2,379		2,379
		Revolving Line of Credit Matures July 2009 Interest rate Prime + 4.00%	$	2,000		2,000		2,000
		Preferred Stock Warrants				163		105

Total Clickfox, Inc.						4,542		4,484

Forescout Technologies, Inc. (0.32%)	Software	Senior Debt Matures August 2009 Interest rate 11.15%	$	612		605		605
		Revolving Line of Credit Matures April 2009 Interest rate Prime + 2.25%	$	500		500		500
		Preferred Stock Warrants				99		117

Total Forescout Technologies, Inc.						1,204		1,222

GameLogic, Inc. (0.00%)	Software	Preferred Stock Warrants				92		1

Total GameLogic, Inc.						92		1

Gomez, Inc. (0.09%)	Software	Preferred Stock Warrants				35		331

Total Gomez, Inc.						35		331

HighJump Acquisition, LLC. (3.88%)	Software	Senior Debt Matures May 2013 Interest rate Libor + 8.75%	$	15,000		15,000		15,000

Total HighJump Acquisition, LLC.						15,000		15,000

HighRoads, Inc. (0.01%)	Software	Preferred Stock Warrants				44		45

Total HighRoads, Inc.						44		45
Infologix, Inc. (5.37%)⁽⁴⁾	Software	Senior Debt Matures May 2012 Interest rate Prime + 9.75%	$	11,700		11,759		11,759
		Revolving Line of Credit Matures November 2009 Interest rate Prime + 7.75%	$	9,000		9,000		9,000

Total Infologix, Inc.						20,759		20,759

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Intelliden, Inc. (0.30%)	Software	Senior Debt Matures March 2010 Interest rate 13.20%	$	1,138	$	1,133	$	1,133
		Preferred Stock Warrants				18		32

Total Intelliden, Inc.						1,151		1,165
Proficiency, Inc. (0.09%)^(5)(6)(7)	Software	Senior Debt Matures August 2012 Interest rate 8.00%	$	1,480		1,480		350
		Preferred Stock Warrants				96		—
Proficiency, Inc. (0.00%)		Preferred Stock				2,750		—

Total Proficiency, Inc.						4,326		350

PSS Systems, Inc. (0.53%)	Software	Senior Debt Matures May 2010 Interest rate 11.48%	$	1,996		1,981		1,981
		Preferred Stock Warrants				51		79

Total PSS Systems, Inc.						2,032		2,060

Rockyou, Inc. (0.65%)	Software	Senior Debt Matures May 2011 Interest rate Prime + 2.50%	$	2,495		2,433	$	2,433
		Preferred Stock Warrants				117		94

Total Rockyou, Inc.						2,550		2,527
Savvion, Inc. (1.29%)⁽⁴⁾	Software	Senior Debt Matures February 2011 Interest rate Prime + 7.75%	$	3,349		3,297		3,297
		Revolving Line of Credit Matures May 2010 Interest rate Prime + 6.75%	$	1,500		1,500		1,500
		Preferred Stock Warrants				52		169

Total Savvion, Inc.						4,849		4,966

Sportvision, Inc. (0.02%)	Software	Preferred Stock Warrants				39		76

Total Sportvision, Inc.						39		76

WildTangent, Inc. (0.01%)	Software	Preferred Stock Warrants				238		48

Total WildTangent, Inc.						238		48

Total Software (19.63%)						79,573		75,852

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Luminus Devices, Inc. (3.08%)	Electronics & Computer Hardware	Senior Debt Matures June 2011 Interest rate 12.875%	$	11,796	$	11,810	$	11,810
		Preferred Stock Warrants				183		16
		Preferred Stock Warrants				84		8
		Preferred Stock Warrants				333		62

Total Luminus Devices, Inc.						12,410		11,896

Maxvision Holding, LLC. (2.65%)	Electronics & Computer Hardware	Senior Debt Matures October 2012 Interest rate Prime + 5.50%	$	5,000		5,000		5,000
		Senior Debt Matures April 2012 Interest rate Prime + 2.25%	$	5,042		5,264		5,264
Maxvision Holding, LLC. (0.07%)⁽⁴⁾		Common Stock				81		283

Total Maxvision Holding, LLC						10,345		10,547

Shocking Technologies, Inc. (0.83%)	Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate 9.75%	$	199		174		174
		Senior Debt Matures December 2010 Interest rate 7.50%	$	2,971		2,971		2,971
		Preferred Stock Warrants				63		50

Total Shocking Technologies, Inc.						3,208		3,195

SiCortex, Inc. (0.63%)	Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate Prime + 2.70%	$	6,525		6,447		2,422
		Preferred Stock Warrants				165		—

Total SiCortex, Inc.						6,612		2,422

Spatial Photonics, Inc. (0.86%)	Electronics & Computer Hardware	Senior Debt Matures April 2011 Interest rate 10.066%	$	2,918		2,861		2,861
		Senior Debt Mature April 2011 Interest rate 9.217%	$	291		291		291
		Preferred Stock Warrants				131		175
Spatial Photonics, Inc. (0.08%)		Preferred Stock				500		292

Total Spatial Photonics Inc.						3,783		3,620

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
VeriWave, Inc. (0.58%)	Electronics & Computer Hardware	Senior Debt Matures May 2010 Interest rate 10.75%	$	2,127	$	2,108	$	2,108
		Preferred Stock Warrants				54		107
		Preferred Stock Warrants				46		36

Total VeriWave, Inc.						2,208		2,251

Total Electronics & Computer Hardware (8.78%)						38,566		33,931

Aegerion Pharmaceuticals, Inc. (2.05%)⁽⁴⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2011 Interest rate Prime + 2.50%	$	7,525		7,525		7,525
		Covertible Senior Debt Matures December 2009 Interest rate Prime + 2.50%	$	178		178		178
		Preferred Stock Warrants				69		215
Aegerion Pharmaceuticals, Inc. (0.26%)⁽⁴⁾		Preferred Stock				1,000		1,000

Total Aegerion Pharmaceuticals, Inc.						8,772		8,918

Panacos Pharmaceuticals, Inc. (0.00%)	Specialty Pharmaceuticals	Common Stock Warrants				876		5
Panacos Pharmaceuticals, Inc. (0.00%)		Common Stock				410		6

Total Panacos Pharmaceuticals, Inc.						1,286		11

Quatrx Pharmaceuticals Company (5.20%)	Specialty Pharmaceuticals	Senior Debt Matures October 2011 Interest rate Prime + 8.90%	$	20,000		19,795		19,795
		Covertible Senior Debt Matures May 2009 Interest rate Prime + 2.50%	$	82		82		82
		Preferred Stock Warrants				220		109
		Preferred Stock Warrants				308		94
Quatrx Pharmaceuticals Company (0.19%)		Preferred Stock				750		750

Total Quatrx Pharmaceuticals Company						21,155		20,829

Total Specialty Pharmaceuticals (7.7%)						31,213		29,759

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Annie’s, Inc. (1.57%)	Consumer & Business Products	Senior Debt - Second Lien Matures April 2011 Interest rate LIBOR + 6.50%	$	6,000	$	5,882	$	5,882
		Preferred Stock Warrants				321		194

Total Annie’s, Inc.						6,203		6,076
IPA Holdings, LLC. (4.47%)⁽⁴⁾	Consumer & Business Products	Senior Debt Matures November 2012 Interest rate Prime + 3.50%	$	10,000		10,000		10,000
		Senior Debt Matures May 2013 Interest rate Prime + 6.00%	$	6,500		6,632		6,632
		Revolving Line of Credit Matures November 2012 Interest rate Prime + 2.50%	$	600		600		600
IPA Holding, LLC.(0.12%)		Common Stock				500		447

Total IPA Holding, LLC.						17,732		17,679

Market Force Information, Inc. (0.02%)	Consumer & Business Products	Preferred Stock Warrants				24		94
Market Force Information, Inc. (0.1%)		Preferred Stock				500		411

Total Market Force Information, Inc.						524		505
OnTech Operations, Inc. (0.00%)	Consumer & Business Products	Senior Debt Matures December 2009 Interest rate 16.00%	$	106		106		—
		Preferred Stock Warrants				452		—
		Preferred Stock Warrants				218		—
OnTech Operations, Inc. (0.00%)		Preferred Stock				1,000		—

Total OnTech Operations, Inc.						1,776		—

Wageworks, Inc. (0.24%)	Consumer & Business Products	Preferred Stock Warrants				252		911
Wageworks, Inc. (0.07%)		Preferred Stock				250		289

Total Wageworks, Inc.						502		1,200

Total Consumer & Business Products (6.59%)						26,737		25,460

Custom One Design, Inc. (0.17%)	Semiconductors	Senior Debt Matures September 2010 Interest rate 11.50%	$	660		665		665
		Common Stock Warrants				18		—

Total Custom One Design, Inc.						683		665

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Enpirion, Inc. (1.86%)	Semiconductors	Senior Debt Matures August 2011 Interest rate Prime + 2.00%	$	7,263	$	7,179	$	7,179
		Preferred Stock Warrants				157		8

Total Enpirion, Inc.						7,336		7,187

iWatt Inc. (0.09%)	Semiconductors	Preferred Stock Warrants				46		38
		Preferred Stock Warrants				51		17
		Preferred Stock Warrants				73		20
		Preferred Stock Warrants				459		278
iWatt Inc. (0.24%)		Preferred Stock				490		865

Total iWatt Inc.						1,119		1,218
NEXX Systems, Inc. (1.66%)⁽⁴⁾	Semiconductors	Senior Debt Matures March 2010 Interest rate Prime + 3.50%	$	2,157		2,105		2,105
		Revolving Line of Credit Matures December 2009 Interest rate Prime + 3.00%	$	4,150		4,150		4,150
		Preferred Stock Warrants				165		172

Total NEXX Systems, Inc.						6,420		6,427
Quartics, Inc. (0.07%)⁽⁷⁾	Semiconductors	Senior Debt Matures August 2010 Interest rate 8.80%	$	613		589		275
		Preferred Stock Warrants				53		—

Total Quartics, Inc.						642		275

Solarflare Communications, Inc. (0.09%)	Semiconductors	Senior Debt Matures August 2010 Interest rate 11.75%	$	400		363		363
		Common Stock Warrants				83		—
Solarflare Communications, Inc. (0.00%)		Common Stock				641		3

Total Solarflare Communications, Inc.						1,087		366

Total Semiconductors (4.18%)						17,287		16,138

Labopharm USA, Inc. (5.37%)⁽⁵⁾	Drug Delivery	Senior Debt Matures December 2011 Interest rate 10.95%	$	20,000		19,640		19,640
		Common Stock Warrants				458		803
		Common Stock Warrants				143		287

Total Labopharm USA, Inc.						20,241		20,730

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Transcept Pharmaceuticals, Inc. (0.00%)⁽⁴⁾	Drug Delivery	Common Stock Warrants			$	36	$	2
		Common Stock Warrants				51		7
Transcept Pharmaceuticals, Inc. (0.03%)⁽⁴⁾		Common Stock				500		125

Total Transcept Pharmaceuticals, Inc.						587		134

Total Drug Delivery (5.40%)						20,828		20,864


BARRX Medical, Inc.(0.86%)	Therapeutic	Senior Debt Mature December 2011 Interest rate 11.00%	$	3,333		3,288		3,288
		Preferred Stock Warrants				63		42
BARRX Medical, Inc. (0.36%)		Preferred Stock				1,500		1,388

Total BARRX Medical, Inc.						4,851		4,718

EKOS Corporation (1.22%)	Therapeutic	Senior Debt Matures November 2010 Interest rate Prime + 2.00%	$	4,771		4,650		4,650
		Preferred Stock Warrants				174		41
		Preferred Stock Warrants				153		20

Total EKOS Corporation						4,977		4,711

Gelesis, Inc. (0.39%)	Therapeutic	Senior Debt Matures May 2012 Interest rate Prime + 5.65%	$	1,500		1,480		1,480
		Preferred Stock Warrants				26		28

Total Gelesis, Inc.						1,506		1,508

Gynesonics, Inc. (0.03%)	Therapeutic	Preferred Stock Warrants				18		118
Gynesonics, Inc. (0.09%)		Preferred Stock				250		359

Total Gynesonics, Inc.						268		477

Light Science Oncology, Inc. (0.01%)	Therapeutic	Preferred Stock Warrants				99		28

Total Light Science Oncology, Inc.						99		28
Novasys Medical, Inc. (0.74%)⁽⁴⁾	Therapeutic	Senior Debt Matures February 2010 Interest rate 9.70%	$	2,808		2,795		2,795
		Preferred Stock Warrants				71		54
		Preferred Stock Warrants				54		25
Novasys Medical, Inc.(0.12%)		Preferred Stock				556		444

Total Novasys Medical, Inc.						3,476		3,318

Power Medical Interventions, Inc. (0.00%)	Therapeutic	Common Stock Warrants				21		1

Total Power Medical Interventions, Inc.						21		1

Total Therapeutic (3.82%)						15,198		14,761

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Cozi Group, Inc. (0.05%)	Internet Consumer & Business Services	Preferred Stock Warrants			$	147	$	185
Cozi Group, Inc. (0.06%)		Preferred Stock				177		226

Total Cozi Group, Inc.						324		411

Invoke Solutions, Inc. (0.22%)	Internet Consumer & Business Services	Senior Debt Matures November 2009 Interest rate Prime + 3.75%	$	661		671		671
		Preferred Stock Warrants				56		143
		Preferred Stock Warrants				27		33

Total Invoke Solutions, Inc.						754		847

Prism Education Group Inc. (0.38%)	Internet Consumer & Business Services	Senior Debt Matures December 2010 Interest rate 11.25%	$	1,344		1,323		1,323
		Preferred Stock Warrants				43		117

Total Prism Education Group Inc.						1,366		1,440
RazorGator Interactive Group, Inc. (0.97%)⁽⁴⁾	Internet Consumer & Business Services	Revolving Line of Credit Matures May 2010 Interest rate Prime + 6.00%	$	3,000		3,000		3,000
		Preferred Stock Warrants				13		696
		Preferred Stock Warrants				29		83
RazorGator Interactive Group, Inc. (0.45%)		Preferred Stock				1,000		1,742

Total RazorGator Interactive Group, Inc.						4,042		5,521
Serious USA, Inc. (0.23%) ⁽⁷⁾	Internet Consumer & Business Services	Senior Debt Matures Februrary 2011 Interest rate 14%	$	2,454		2,407		907
		Preferred Stock Warrants				93		—

Total Serious USA, Inc.						2,500		907

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Spa Chakra, Inc. (2.59%)	Internet Consumer & Business Services	Senior Debt Matures June 2010 Interest rate 14.45%	$	10,000	$	10,001	$	10,001

Total Spa Chakra, Inc.						10,001		10,001

Total Internet Consumer & Business Services (4.95%)						18,987		19,127


Lilliputian Systems, Inc. (1.14%)	Energy	Senior Debt Matures April 2010 Interest rate Prime + 6.00%	$	4,324		4,259		4,259
		Preferred Stock Warrants				106		133
		Common Stock Warrants				48		0

Total Lilliputian Systems, Inc.						4,413		4,392

Total Energy (1.14%)						4,413		4,392

Active Response Group, Inc. (2.55%)	Information Services	Senior Debt Matures July 2011 Interest rate LIBOR + 6.55%	$	6,355		6,321		6,321
		Revolving Line of Credit Matures December 2009 Interest rate Prime + 14.00%	$	3,500		3,500		3,500
		Common Stock Warrants				92		10
		Preferred Stock Warrants				46		9
Active Response Group, Inc. (0.03%)		Common Stock				105		105

Total Active Response Group, Inc.						10,064		9,945

Box.net, Inc. (0.36%)	Information Services	Senior Debt Matures May 2011 Interest rate Prime + 1.50%	$	1,000		959		959
		Senior Debt Matures September 2011 Interest rate Prime + 0.50%	$	400		400		400
		Preferred Stock Warrants				73		54

Total Box.net, Inc.						1,432		1,413

Buzznet, Inc. (0.00%)	Information Services	Preferred Stock Warrants				9		0
Buzznet, Inc. (0.02%)		Preferred Stock				250		74

Total Buzznet, Inc.						259		74

hi5 Networkss, Inc. (1.95%)	Information Services	Senior Debt Matures December 2010 Interest rate Prime + 2.5%	$	2,658		2,658		2,658
		Senior Debt Matures June 2011 Interest rate Prime + 0.5%	$	4,983		4,888		4,888
		Preferred Stock Warrants				213		—

Total hi5 Networks, Inc.						7,759		7,546

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Jab Wireless, Inc. (3.90%)	Information Services	Senior Debt Matures November 2012 Interest rate Prime + 3.50%	$	15,000	$	14,860	$	14,860
		Preferred Stock Warrants				265		207

Total Jab Wireless, Inc.						15,125		15,067

Solutionary, Inc. (1.49%)	Information Services	Senior Debt Matures June 2010 Interest rate LIBOR + 5.50%	$	3,880		4,144		4,144
		Revolving Line of Credit Matures June 2010 Interest rate LIBOR + 5.00%	$	1,500		1,500		1,500
		Preferred Stock Warrants				94		121
		Preferred Stock Warrants				2		4
Solutionary, Inc. (0.04%)		Preferred Stock				250		173

Total Solutionary, Inc.						5,990		5,942

The Generation Networks, Inc. (1.48%)	Information Services	Senior Debt Matures December 2012 Interest rate 7.42%	$	5,814		5,814		5,713
The Generation Networks, Inc. (0.13%)		Common Stock				500		498

Total The Generation Networks, Inc.						6,314		6,211

Visto Corporation	Information Services	Common Stock				603		603

Total Visto Corporation (0.16%)						603		603

Coveroo, Inc. (0.03%)	Information Services	Senior Debt Matures April 2010 Interest rate Prime + 9.75%	$	110		108		108
		Preferred Stock Warrants				7		—

Total Coveroo, Inc.						115		108

Zeta Interactive Corporation (3.55%)	Information Services	Senior Debt Matures November 2012 Interest rate 9.50%	$	5,781		5,693		5,693
		Senior Debt Matures November 2012 Interest rate 10.50%	$	7,836		7,836		7,836
		Preferred Stock Warrants				172		187
Zeta Interactive Corporation (0.13%)		Preferred Stock				500		500

Total Zeta Interactive Corporation						14,201		14,216

Total Information Services (15.82%)						61,862		61,125

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Novadaq Technologies, Inc. (0.09%)	Diagnostic	Common Stock				1,626		351

Total Novadaq Technologies, Inc.						1,626		351

Optiscan Biomedical, Corp. (2.62%)	Diagnostic	Senior Debt Matures June 2011 Interest rate 10.25%	$	10,000	$	9,598	$	9,598
		Preferred Stock Warrants				760		521
Optiscan Biomedical, Corp. (0.78%)		Preferred Stock				3,000		3,000

Total Optiscan Biomedical, Corp.						13,358		13,119

Total Diagnostic (3.49%)						14,984		13,470

Kamada, LTD. (5.16%)⁽⁵⁾	Biotechnology Tools	Senior Debt Matures February 2012 Interest rate Prime + 2.9%	$	20,000		19,610		19,610
		Common Stock Warrants				551		312

Total Kamada, LTD.						20,161		19,922

NuGEN Technologies, Inc. (0.59%)	Biotechnology Tools	Senior Debt Matures November 2010 Interest rate Prime + 3.45%	$	1,365		1,341		1,341
		Senior Debt Matures November 2010 Interest rate Prime + 1.70%	$	782		782		782
		Preferred Stock Warrants				45		159
		Preferred Stock Warrants				33		13
NuGEN Technologies, Inc. (0.08%)		Preferred Stock				500		305

Total NuGEN Technologies, Inc.						2,701		2,600
Solace Pharmaceuticals, Inc.(1.29%)⁽⁴⁾	Biotechnology Tools	Senior Debt Matures August 2012 Interest rate Prime + 4.25%	$	5,000		4,911		4,911
		Preferred Stock Warrants				42		44
		Preferred Stock Warrants				54		46

Total Solace Pharmaceuticals, Inc.						5,007		5,001

Total Biotechnology Tools (7.12%)						27,869		27,523


Crux Biomedical, Inc. (0.00%)	Surgical Devices	Preferred Stock Warrants				37		—
Crux Biomedical, Inc. (0.01%)		Preferred Stock				250		26

Total Crux Biomedical, Inc.						287		26

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Transmedics, Inc. (2.59%)⁽⁴⁾	Surgical Devices	Senior Debt Matures December 2011 Interest rate Prime + 5.25%	$	10,000	$	9,846	$	9,846
		Preferred Stock Warrants				225		176

Total Transmedics, Inc.						10,071		10,022

Total Surgical Devices (2.60%)						10,358		10,048


Glam Media, Inc. (1.41%)	Media/Content/ Info	Revolving Line of Credit Matures April 2009 Interest rate Prime + 1.50%	$	5,160		5,146		5,146
		Preferred Stock Warrants				482		283

Total Glam Media, Inc.						5,628		5,429
Waterfront Media Inc. (1.94%)⁽⁴⁾	Media/Content/ Info	Senior Debt Matures September 2010 Interest rate Prime + 3.00%	$	2,199		2,181		2,181
		Revolving Line of Credit Matures October 2009 Interest rate Prime + 3.75%	$	5,000		5,000		5,000
		Preferred Stock Warrants				60		327
Waterfront Media Inc. (0.29%)		Preferred Stock				1,000		1,132

Total Waterfront Media Inc.						8,241		8,640

Total Media/Content/Info (3.64%)						13,869		14,069

Total Investments (137.90%)					$	549,885	$	532,781

*	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 $8,289, $27,537 and $19,248, respectively. The tax cost of investments is $552,029.

(3)

Except for warrants in five publicly traded companies and common stock in four publicly traded companies, all investments are restricted at March 31, 2009 and were valued at fair value as determined in good faith by the Board of Directors. No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(4)	Debt investments of this portfolio company have been pledged as collateral under the Wells Facility.

(5)	Non-U.S. company or the company’s principal place of business is outside the United States.

(6)	Affiliate investment that is defined under the Investment Company Act of 1940 as companies in which HTGC owns as least 5% but not more than 25% of the voting securities of the company. All other investments are less than 5% owned.

(7)	Debt is on non-accrual status at March 31, 2009, and is therefore considered non-income producing.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Acceleron Pharmaceuticals, Inc. (0.64%)*⁽⁴⁾	Drug Discovery	Senior Debt Matures January 2010 Interest rate 10.25%	$	1,753	$	1,728	$	1,728
		Preferred Stock Warrants				69		596
		Preferred Stock Warrants				35		116
Acceleron Pharmaceuticals, Inc. (0.35%)		Preferred Stock				1,243		1,354

Total Acceleron Pharmaceuticals, Inc.						3,075		3,794

Aveo Pharmaceuticals, Inc. (3.99%)⁽⁴⁾	Drug Discovery	Senior Debt Matures November 2011 Interest rate 11.13%	$	15,000		14,904		14,904
		Preferred Stock Warrants				190		257
		Preferred Stock Warrants				104		83
		Preferred Stock Warrants				24		28

Total Aveo Pharmaceuticals, Inc.						15,222		15,272

Elixir Pharmaceuticals, Inc. (2.91%)⁽⁴⁾	Drug Discovery	Senior Debt Matures December 2010 Interest rate Prime + 4.50%	$	11,000		11,000		11,000
		Preferred Stock Warrants				217		116

Total Elixir Pharmaceuticals, Inc.						11,217		11,116

EpiCept Corporation (0.33%)⁽⁴⁾	Drug Discovery	Senior Debt Matures April 2009 Interest rate 15.00%	$	8		8		8
		Common Stock Warrants				161		992
		Common Stock Warrants				40		250

Total EpiCept Corporation						209		1,250

Horizon Therapeutics, Inc. (1.92%)⁽⁴⁾	Drug Discovery	Senior Debt Matures July 2011 Interest rate Prime + 1.50%	$	7,200		7,042		7,042
		Preferred Stock Warrants				231		281

Total Horizon Therapeutics, Inc.						7,273		7,323

Inotek Pharmaceuticals Corp. (0.30%)	Drug Discovery	Preferred Stock				1,500		1,144

Total Inotek Pharmaceuticals Corp.						1,500		1,144

Memory Pharmaceuticals Corp. (2.87%)⁽⁴⁾	Drug Discovery	Senior Debt Matures December 2010 Interest rate 11.45%	$	11,879		10,979		10,979
		Common Stock Warrants				1,751		—

Total Memory Pharmaceuticals Corp.						12,730		10,979

Merrimack Pharmaceuticals, Inc. (0.19%)⁽⁴⁾	Drug Discovery	Preferred Stock Warrants				155		743
Merrimack Pharmaceuticals, Inc. (0.68%)		Preferred Stock				2,000		2,610

Total Merrimack Pharmaceuticals, Inc.						2,155		3,353

Paratek Pharmaceuticals, Inc. (0.04%)⁽⁴⁾	Drug Discovery	Preferred Stock Warrants				137		164
Paratek Pharmaceuticals, Inc. (0.24%)		Preferred Stock				1,000		926

Total Paratek Pharmaceuticals, Inc.						1,137		1,090

Portola Pharmaceuticals, Inc. (3.14%)⁽⁴⁾	Drug Discovery	Senior Debt Matures September 2011 Interest rate Prime + 2.16%	$	11,668		11,600		11,600
		Preferred Stock Warrants				152		399

Total Portola Pharmaceuticals, Inc.						11,752		11,999

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Recoly, N.V. (0.79%)⁽⁶⁾	Drug Discovery	Senior Debt Matures May 2012 Interest rate Prime + 4.25%	$	3,000	$	3,000	$	3,000

Total Recoly, N.V.						3,000		3,000

Total Drug Discovery (18.39%)						69,270		70,320


Affinity Videonet, Inc. (1.70%)⁽⁴⁾	Communications & Networking	Senior Debt Matures June 2012 Interest rate Prime + 4.50%	$	4,000		3,942		3,942
		Senior Debt Matures June 2012 Interest rate Prime + 5.50%	$	2,000		2,000		2,000
		Revolving Line of Credit Matures June 2012 Interest rate Prime + 3.50%	$	500		500		500
		Preferred Stock Warrants				75		57

Total Affinity Videonet, Inc.						6,517		6,499

E-Band Communications, Inc. (0.24%)⁽⁷⁾	Communications & Networking	Preferred Stock				2,000		904

Total E-Band Communications, Inc.						2,000		904

IKANO Communications, Inc. (3.22%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2011 Interest rate 11.00%	$	11,946		11,946		11,946
		Preferred Stock Warrants				45		147
		Preferred Stock Warrants				73		221

Total IKANO Communications, Inc.						12,064		12,314

Kadoink, Inc. (0.50%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2011 Interest rate Prime + 2.00%	$	1,879		1,832		1,832
		Preferred Stock Warrants				73		72
Kadoink, Inc. (0.07%)		Preferred Stock				250		250

Total Kadoink, Inc.						2,155		2,154

Neonova Holding Company (2.35%)	Communications & Networking	Senior Debt Matures September 2012 Interest rate Prime + 3.25%	$	9,000		8,931		8,931
		Preferred Stock Warrants				94		66
Neonova Holding Company (0.06%)		Preferred Stock				250		224

Total Neonova Holding Company						9,275		9,221

Peerless Network, Inc. (0.34%)⁽⁵⁾⁽⁷⁾	Communications & Networking	Senior Debt Matures June 2011 Interest rate Prime + 3.25%	$	1,378		1,318		1,318
		Preferred Stock Warrants				95		—
Peerless Network, Inc. (0.00%)		Preferred Stock				1,000		—

Total Peerless Network, Inc.						2,413		1,318

Ping Identity Corporation (0.00%)⁽⁴⁾	Communications & Networking	Preferred Stock Warrants				52		2

Total Ping Identity Corporation						52		2

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Purcell Systems, Inc. (2.55%)	Communications & Networking	Senior Debt Matures June 2010 Interest rate Prime + 3.50%	$	1,659	$	1,601	$	1,601
		Revolving Line of Credit Matures July 2009 Interest rate Prime + 2.75%	$	6,000		6,000		6,000
		Senior Debt Matures July 2011 Interest rate Prime + 3.50%	$	1,600		1,600		1,600
		Preferred Stock Warrants				123		538

Total Purcell Systems, Inc.						9,324		9,739

Rivulet Communications, Inc. (0.51%)⁽⁵⁾	Communications & Networking	Senior Debt Matures April 2010 Interest rate 10.50%	$	1,982		1,960		1,960
		Preferred Stock Warrants				50		—
Rivulet Communications, Inc. (0.00%)		Preferred Stock				250		4

Total Rivulet Communications, Inc.						2,260		1,964

Seven Networks, Inc. (2.64%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2010 Interest rate Prime + 6.00%	$	6,941		6,875		6,875
		Revolving Line of Credit Matures September 2009 Interest rate Prime + 5.00%	$	3,000		3,000		3,000
		Preferred Stock Warrants				174		208

Total Seven Networks, Inc.						10,049		10,083

Stoke, Inc. (0.71%)	Communications & Networking	Senior Debt Matures August 2010 Interest rate 10.55%	$	574		545		545
		Senior Debt Matures August 2010 Interest rate 10.05%	$	1,144		1,144		1,144
		Senior Debt Matures August 2010 Interest rate 7.30%	$	946		946		946
		Preferred Stock Warrants				53		91

Total Stoke, Inc.						2,688		2,726

Tectura Corporation (6.54%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2012 Interest rate LIBOR + 6.90%	$	7,232		7,439		7,439
		Revolving Line of Credit Matures April 2009 Interest rate LIBOR + 6.35%	$	12,000		12,000		12,000
		Revolving Line of Credit Matures March 2009 Interest rate LIBOR + 7.50%	$	5,507		5,507		5,507
		Preferred Stock Warrants				51		77

Total Tectura Corporation						24,997		25,023

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Wireless Channels, Inc. (3.04%)⁽⁴⁾	Communications & Networking	Senior Debt Matures April 2010 Interest rate Prime + 4.25%	$	10,000	$	10,384	$	10,384
		Senior Debt Matures August 2010 Interest rate Prime + 0.50%	$	895		895		895
		Preferred Stock Warrants				155		344

Total Wireless Channels, Inc.						11,434		11,623

Zayo Bandwidth, Inc. (6.42%)	Communications & Networking	Senior Debt Matures November 2013 Interest rate Libor + 5.25%	$	25,000		25,000		24,563

Total Zayo Bandwith, Inc.						25,000		24,563

Total Communications & Networking (30.89%)						120,228		118,133

Atrenta, Inc. (2.36%)⁽⁵⁾	Software	Senior Debt Matures January 2010 Interest rate 11.50%	$	2,789		2,742		2,742
		Revolving Line of Credit Matures October 2009 Interest rate Prime + 2.00%	$	6,000		6,000		6,000
		Preferred Stock Warrants				103		176
		Preferred Stock Warrants				34		58
		Preferred Stock Warrants				71		43
Atrenta, Inc. (0.05%)		Preferred Stock				250		197

Total Atrenta, Inc.						9,200		9,216

Blurb, Inc. (1.76%)	Software	Senior Debt Matures December 2009 Interest rate 9.55%	$	1,414		1,405		1,405
		Senior Debt Matures June 2011 Interest rate Prime + 3.50%	$	5,000		4,701		4,701
		Preferred Stock Warrants				25		350
		Preferred Stock Warrants				299		276

Total Blurb, Inc.						6,430		6,732

Braxton Technologies, LLC. (2.64%)⁽⁵⁾	Software	Senior Debt Matures July 2012 Interest rate Libor + 7.25%	$	10,000		9,916		9,916
		Preferred Stock Warrants				188		172

Total Braxton Technologies, LLC.						10,104		10,088

Bullhorn, Inc. (0.26%)	Software	Senior Debt Matures November 2010 Interest rate Prime + 3.75%	$	782		760		760
		Preferred Stock Warrants				43		222

Total Bullhorn, Inc.						803		982

Cittio, Inc. (0.19%)	Software	Senior Debt Matures May 2010 Interest rate 11.00%	$	731		720		720
		Preferred Stock Warrants				53		—

Total Cittio, Inc.						773		720

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Clickfox, Inc. (0.65%)	Software	Senior Debt Matures September 2011 Interest rate 10.25%	$	2,500	$	2,357	$	2,357
		Preferred Stock Warrants				163		131

Total Clickfox, Inc.						2,520		2,488

Forescout Technologies, Inc. (0.40%)⁽⁴⁾	Software	Senior Debt Matures August 2009 Interest rate 11.15%	$	906		892		892
		Revolving Line of Credit Matures March 2009 Interest rate Prime + 2.25%	$	500		500		500
		Preferred Stock Warrants				99		130

Total Forescout Technologies, Inc.						1,491		1,522

GameLogic, Inc. (0.00%)⁽⁴⁾	Software	Preferred Stock Warrants				92		3

Total GameLogic, Inc.						92		3

Gomez, Inc. (0.22%)⁽⁴⁾	Software	Preferred Stock Warrants				35		833

Total Gomez, Inc.						35		833

HighJump Acquisition, LLC. (3.92%)⁽⁴⁾	Software	Senior Debt Matures May 2013 Interest rate Prime + 7.50%	$	15,000		15,000		15,000

Total HighJump Acquisition, LLC.						15,000		15,000

HighRoads, Inc. (0.02%)⁽⁴⁾	Software	Preferred Stock Warrants				44		59

Total HighRoads, Inc.						44		59

Infologix, Inc. (5.49%)⁽⁴⁾	Software	Senior Debt Matures May 2012 Interest rate Prime + 8.75%	$	12,000		12,007		12,007
		Revolving Line of Credit Matures November 2009 Interest rate Prime + 6.75%	$	9,000		9,000		9,000

Total Infologix, Inc.						21,007		21,007

Intelliden, Inc. (0.37%)	Software	Senior Debt Matures February 2010 Interest rate 13.20%	$	1,399		1,394		1,394
		Preferred Stock Warrants				18		38

Total Intelliden, Inc.						1,412		1,432

Oatsystems, Inc. (0.00%)⁽⁴⁾	Software	Preferred Stock Warrants				67		—

Total Oatsystems, Inc.						67		—

Proficiency, Inc. (0.00%)^(6)(7)(8)	Software	Senior Debt Matures August 2012 Interest rate 8.00%	$	1,500		1,497		—
		Preferred Stock Warrants				97		—
Proficiency, Inc. (0.00%)		Preferred Stock				2,750		—

Total Proficiency, Inc.						4,344		—

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
PSS Systems, Inc. (0.65%)⁽⁴⁾	Software	Senior Debt Matures May 2010 Interest rate 11.48%	$	2,423	$	2,403	$	2,403
		Preferred Stock Warrants				51		96

Total PSS Systems, Inc.						2,454		2,499

Rockyou, Inc. (0.72%)⁽⁴⁾	Software	Senior Debt Matures May 2011 Interest rate Prime + 2.50%	$	2,750		2,674		2,674
		Preferred Stock Warrants				117		66

Total Rockyou, Inc.						2,791		2,740

Savvion, Inc. (1.42%)⁽⁴⁾	Software	Senior Debt Matures April 2009 Interest rate Prime + 3.45%	$	331		279		279
		Revolving Line of Credit Matures March 2009 Interest rate Prime + 4.45%	$	3,366		3,366		3,366
		Revolving Line of Credit Matures March 2009 Interest rate Prime + 3.00%	$	1,619		1,619		1,619
		Preferred Stock Warrants				53		168

Total Savvion, Inc.						5,317		5,432

Sportvision, Inc. (0.02%)⁽⁴⁾	Software	Preferred Stock Warrants				39		91

Total Sportvision, Inc.						39		91

WildTangent, Inc. (0.01%)	Software	Preferred Stock Warrants				238		41

Total WildTangent, Inc.						238		41

Total Software (21.15%)						84,161		80,885

Luminus Devices, Inc. (3.08%)⁽⁴⁾	Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate 12.875%	$	11,792		11,514		11,514
		Preferred Stock Warrants				183		50
		Preferred Stock Warrants				84		25
		Preferred Stock Warrants				334		189

Total Luminus Devices, Inc.						12,115		11,778

Maxvision Holding, LLC. (2.71%)⁽⁴⁾	Electronics & Computer Hardware	Senior Debt Matures October 2012 Interest rate Prime + 5.50%	$	5,000		5,000		5,000
		Senior Debt Matures April 2012 Interest rate Prime + 2.25%	$	5,167		5,363		5,363
Maxvision Holding, LLC. (0.07%)⁽⁴⁾		Common Stock				81		268

Total Maxvision Holding, LLC						10,444		10,631

Shocking Technologies, Inc. (0.94%)	Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate 9.75%	$	225		192		192
		Senior Debt Matures December 2010 Interest rate 7.50%	$	3,365		3,365		3,365
		Preferred Stock Warrants				63		55

Total Shocking Technologies, Inc.						3,620		3,612

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
SiCortex, Inc. (1.83%)	Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate 10.95%	$	7,364	$	7,274	$	6,774
		Preferred Stock Warrants				164		216

Total SiCortex, Inc.						7,438		6,990

Spatial Photonics, Inc. (0.97%)⁽⁴⁾	Electronics & Computer Hardware	Senior Debt Matures April 2011 Interest rate 10.066%	$	3,216		3,146		3,146
		Senior Debt Mature April 2011 Interest rate 9.217%	$	321		321		321
		Preferred Stock Warrants				131		251
Spatial Photonics, Inc. (0.13%)		Preferred Stock				500		500

Total Spatial Photonics Inc.						4,098		4,218

VeriWave, Inc. (0.85%)	Electronics & Computer Hardware	Senior Debt Matures May 2010 Interest rate 10.75%	$	2,549		2,507		2,507
		Revolving Line of Credit Matures September 2009 Interest rate Prime + 4.50%	$	630		630		630
		Preferred Stock Warrants				54		76
		Preferred Stock Warrants				46		38

Total VeriWave, Inc.						3,237		3,251

Total Electronics & Computer Hardware (10.58%)						40,952		40,480

Aegerion Pharmaceuticals, Inc. (2.08%)⁽⁵⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2011 Interest rate Prime + 2.50%	$	7,525		7,525		7,525
		Covertible Senior Debt Matures December 2009 Interest rate Prime + 2.50%	$	178		178		178
		Preferred Stock Warrants				69		272
Aegerion Pharmaceuticals, Inc. (0.26%)⁽⁴⁾		Preferred Stock				1,000		1,000

Total Aegerion Pharmaceuticals, Inc.						8,772		8,975

Panacos Pharmaceuticals, Inc. (0.00%)⁽⁴⁾	Specialty Pharmaceuticals	Common Stock Warrants				877		11
Panacos Pharmaceuticals, Inc. (0.01%)		Common Stock				410		28

Total Panacos Pharmaceuticals, Inc.						1,287		39

Quatrx Pharmaceuticals Company (5.26%)⁽⁴⁾	Specialty Pharmaceuticals	Senior Debt Matures October 2011 Interest rate Prime +4.85%	$	20,000		19,761		19,761
		Covertible Senior Debt Matures May 2009 Interest rate Prime + 2.50%	$	82		82		82
		Preferred Stock Warrants				220		143
		Preferred Stock Warrants				308		120
Quatrx Pharmaceuticals Company (0.20%)		Preferred Stock				750		750

Total Quatrx Pharmaceuticals Company						21,121		20,856

Total Specialty Pharmaceuticals (7.81%)						31,180		29,870

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Annie’s, Inc. (1.59%)	Consumer & Business Products	Senior Debt - Second Lien Matures April 2011 Interest rate LIBOR + 6.50%	$	6,000	$	5,824	$	5,824
		Preferred Stock Warrants				321		273

Total Annie’s, Inc.						6,145		6,097

IPA Holdings, LLC. (4.50%)⁽⁴⁾	Consumer & Business Products	Senior Debt Matures November 2012 Interest rate Prime + 3.50%	$	10,000		10,000		10,000
		Senior Debt Matures May 2013 Interest rate Prime + 6.00%	$	6,500		6,590		6,590
		Revolving Line of Credit Matures November 2012 Interest rate Prime + 2.50%	$	600		600		600
IPA Holding, LLC.(0.12%)		Common Stock				500		447

Total IPA Holding, LLC.						17,690		17,637

Market Force Information, Inc. (0.01%)⁽⁴⁾	Consumer & Business Products	Preferred Stock Warrants				24		40
Market Force Information, Inc. (0.07%)		Preferred Stock				500		274


Total Market Force Information, Inc.						524		314

OnTech Operations, Inc. (0.01%)⁽⁸⁾	Consumer & Business Products	Revolving Line of Credit Matures June 2009 Interest rate Prime + 5.625%	$	54		54		54
		Preferred Stock Warrants				453		—
		Preferred Stock Warrants				218		—
OnTech Operations, Inc. (0.00%)		Preferred Stock				1,000		—

Total OnTech Operations, Inc.						1,725		54

Wageworks, Inc. (0.23%)⁽⁴⁾	Consumer & Business Products	Preferred Stock Warrants				252		881
Wageworks, Inc. (0.07%)		Preferred Stock				250		266

Total Wageworks, Inc.						502		1,147

Total Consumer & Business Products (6.60%)						26,586		25,249


Custom One Design, Inc. (0.14%)⁽⁸⁾	Semiconductors	Senior Debt Matures September 2010 Interest rate 11.50%	$	775		765		523
		Common Stock Warrants				18		—

Total Custom One Design, Inc.						783		523

Enpirion, Inc. (1.97%)	Semiconductors	Senior Debt Matures August 2011 Interest rate Prime + 4.00%	$	7,500		7,389		7,389
		Preferred Stock Warrants				157		136

Total Enpirion, Inc.						7,546		7,525

iWatt Inc. (0.07%)⁽⁴⁾	Semiconductors	Preferred Stock Warrants				46		28
		Preferred Stock Warrants				51		13
		Preferred Stock Warrants				73		13
		Preferred Stock Warrants				458		222
iWatt Inc. (0.25%)		Preferred Stock				490		961

Total iWatt Inc.						1,118		1,237

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
NEXX Systems, Inc. (2.03%)⁽⁴⁾	Semiconductors	Senior Debt Matures March 2010 Interest rate Prime + 3.50%	$	2,659	$	2,593	$	2,593
		Revolving Line of Credit Matures December 2009 Interest rate Prime + 3.00%	$	4,605		4,605		4,605
		Revolving Line of Credit Matures December 2009 Interest rate Prime + 5.00%	$	395		395		395
		Preferred Stock Warrants				165		182

Total NEXX Systems, Inc.						7,758		7,775

Quartics, Inc. (0.08%)⁽⁴⁾⁽⁸⁾	Semiconductors	Senior Debt Matures August 2010 Interest rate 8.80%	$	629		601		286
		Preferred Stock Warrants				53		—

Total Quartics, Inc.						654		286

Solarflare Communications, Inc. (0.11%)⁽⁴⁾	Semiconductors	Senior Debt Matures August 2010 Interest rate 11.75%	$	464		420		420
		Preferred Stock Warrants				83		—
Solarflare Communications, Inc. (0.00%)		Preferred Stock				641		—

Total Solarflare Communications, Inc.						1,144		420

Total Semiconductors (4.65%)						19,003		17,766

Labopharm, Inc. (5.55%)⁽⁴⁾⁽⁶⁾	Drug Delivery	Senior Debt Matures December 2011 Interest rate 10.95%	$	20,000		19,582		19,582
		Common Stock Warrants				458		1,206
		Common Stock Warrants				143		422

Total Labopharm USA, Inc.						20,183		21,210

Transcept Pharmaceuticals, Inc. (0.90%)⁽⁵⁾	Drug Delivery	Senior Debt Matures October 2009 Interest rate 10.69%	$	3,353		3,334		3,334
		Preferred Stock Warrants				35		46
		Preferred Stock Warrants				51		75
Transcept Pharmaceuticals, Inc. (0.07%)⁽⁴⁾		Preferred Stock				500		287

Total Transcept Pharmaceuticals, Inc.						3,920		3,742

Total Drug Delivery (6.52%)						24,103		24,952

BARRX Medical, Inc.(0.86%)⁽⁴⁾	Therapeutic	Senior Debt Mature December 2011 Interest rate 11.00%	$	3,333		3,270		3,270
		Preferred Stock Warrants				63		41
BARRX Medical, Inc. (0.36%)		Preferred Stock				1,500		1,388

Total BARRX Medical, Inc.						4,833		4,699

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
EKOS Corporation (1.29%)	Therapeutic	Senior Debt Matures November 2010 Interest rate Prime + 2.00%	$	5,000	$	4,846	$	4,846
		Preferred Stock Warrants				175		51
		Preferred Stock Warrants				153		25

Total EKOS Corporation						5,174		4,922

Gelesis, Inc. (0.39%)	Therapeutic	Senior Debt Matures May 2012 Interest rate Prime + 5.65%	$	1,500		1,477		1,477
		Preferred Stock Warrants				27		27

Total Gelesis, Inc.						1,504		1,504

Gynesonics, Inc. (0.02%)⁽⁴⁾	Therapeutic	Preferred Stock Warrants				18		92
Gynesonics, Inc. (0.08%)		Preferred Stock				250		304

Total Gynesonics, Inc.						268		396

Light Science Oncology, Inc. (0.01%)	Therapeutic	Preferred Stock Warrants				98		26

Total Light Science Oncology, Inc.						98		26

Novasys Medical, Inc. (0.96%)⁽⁴⁾	Therapeutic	Senior Debt Matures February 2010 Interest rate 9.70%	$	3,607		3,588		3,588
		Preferred Stock Warrants				71		56
		Preferred Stock Warrants				54		25
Novasys Medical, Inc.(0.12%)		Preferred Stock				555		444

Total Novasys Medical, Inc.						4,268		4,113

Power Medical Interventions, Inc. (0.00%)	Therapeutic	Common Stock Warrants				21		1

Total Power Medical Interventions, Inc.						21		1

Total Therapeutic (4.09%)						16,166		15,661


Cozi Group, Inc. (0.04%)	Internet Consumer & Business Services	Preferred Stock Warrants				147		150
Cozi Group, Inc. (0.06%)		Preferred Stock				177		225

Total Cozi Group, Inc.						324		375

Invoke Solutions, Inc. (0.29%)⁽⁴⁾	Internet Consumer & Business Services	Senior Debt Matures November 2009 Interest rate Prime + 3.75%	$	983		990		990
		Preferred Stock Warrants				56		101
		Preferred Stock Warrants				26		23

Total Invoke Solutions, Inc.						1,072		1,114

Prism Education Group Inc. (0.42%)	Internet Consumer & Business Services	Senior Debt Matures December 2010 Interest rate 11.25%	$	1,516		1,492		1,492
		Preferred Stock Warrants				43		115

Total Prism Education Group Inc.						1,535		1,607

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
RazorGator Interactive Group, Inc. (0.94%)⁽⁵⁾	Internet Consumer & Business Services	Revolving Line of Credit Matures January 2009 Interest rate Prime + 1.80%	$	3,000	$	3,000	$	3,000
		Preferred Stock Warrants				13		562
		Preferred Stock Warrants				29		42
RazorGator Interactive Group, Inc. (0.45%)		Preferred Stock				1,000		1,708

Total RazorGator Interactive Group, Inc.						4,042		5,312

Serious USA, Inc. (0.36%)	Internet Consumer & Business Services	Senior Debt Matures February 2011 Interest rate Prime + 7.00%	$	2,906		2,851		1,351
		Preferred Stock Warrants				93		—

Total Serious USA, Inc.						2,944		1,351

Spa Chakra, Inc. (2.61%)	Internet Consumer & Business Services	Senior Debt Matures June 2010 Interest rate 14.45%%	$	10,000		10,000		10,000

Total Spa Chakra, Inc.						10,000		10,000

Total Internet Consumer & Business Services (5.17%)						19,917		19,759

Lilliputian Systems, Inc. (1.15%)⁽⁴⁾	Energy	Senior Debt Matures March 2010 Interest rate Prime + 6.00%	$	4,324		4,204		4,204
		Preferred Stock Warrants				155		190

Total Lilliputian Systems, Inc.						4,359		4,394

Total Energy (1.15%)						4,359		4,394

Active Response Group, Inc. (2.58%)⁽⁴⁾	Information Services	Senior Debt Matures March 2012 Interest rate LIBOR + 6.55%	$	6,905		6,863		6,863
		Revolving Line of Credit Matures December 2009 Interest rate Prime + 14.00%	$	3,000		3,000		3,000
		Common Stock Warrants				92		11
		Preferred Stock Warrants				46		11
Active Response Group, Inc. (0.03%)⁽⁴⁾		Common Stock				105		105

Total Active Response Group, Inc.						10,106		9,990

Box.net, Inc. (0.37%)	Information Services	Senior Debt Matures June 2011 Interest rate Prime + 1.50%	$	1,000		950		950
		Senior Debt Matures September 2011 Interest rate Prime + 0.50%	$	400		400		400
		Preferred Stock Warrants				73		48

Total Box.net, Inc.						1,423		1,398

Buzznet, Inc. (0.00%)	Information Services	Preferred Stock Warrants				9		—
Buzznet, Inc. (0.06%)		Preferred Stock				250		224

Total Buzznet, Inc.						259		224

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2008

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
hi5 Networkss, Inc. (2.21%)	Information Services	Senior Debt Matures December 2010 Interest rate Prime + 2.5%	$	3,000	$	3,000	$	3,000
		Senior Debt Matures June 2011 Interest rate Prime + 0.5%	$	5,496		5,363		5,363
		Preferred Stock Warrants				213		75

Total hi5 Networks, Inc.						8,576		8,438

Jab Wireless, Inc. (3.94%)⁽⁴⁾	Information Services	Senior Debt Matures November 2012 Interest rate Prime + 6.50%	$	15,000		14,822		14,822
		Preferred Stock Warrants				264		246

Total Jab Wireless, Inc.						15,086		15,068

Solutionary, Inc. (1.68%)⁽⁴⁾	Information Services	Senior Debt Matures June 2010 Interest rate LIBOR + 5.50%	$	4,599		4,809		4,809
		Revolving Line of Credit Matures June 2010 Interest rate LIBOR + 5.00%	$	1,500		1,500		1,500
		Preferred Stock Warrants				94		125
		Preferred Stock Warrants				2		3
Solutionary, Inc. (0.04%)		Preferred Stock				250		162

Total Solutionary, Inc.						6,655		6,599

The Generation Networks, Inc. (1.52%)⁽⁴⁾	Information Services	Senior Debt Matures December 2012 Interest rate 7.42%	$	5,930		5,930		5,826
The Generation Networks, Inc. (0.12%)		Common stock				500		471

Total The Generation Networks, Inc.						6,430		6,297

Visto Corporation		Common Stock				603		603

Total Visto Corporation (0.16%)						603		603

Wallop Technologies, Inc. (0.03%)	Information Services	Senior Debt Matures April 2010 Interest rate 10.00%	$	134		131		131
		Preferred Stock Warrants				7		—

Total Wallop Technologies, Inc.						138		131

Zeta Interactive Corporation (3.74%)⁽⁴⁾	Information Services	Senior Debt Matures November 2011 Interest rate Prime +2.00%	$	6,164		6,063		6,063
		Senior Debt Matures November 2011 Interest rate Prime +3.00%	$	8,000		8,000		8,000
		Preferred Stock Warrants				172		222
Zeta Interactive Corporation (0.13%)		Preferred Stock				500		500

Total Zeta Interactive Corporation						14,735		14,785

Total Information Services (16.61%)						64,011		63,533

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Table of Contents

Table of Contents

Table of Contents