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, 2009
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 814-00702
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
(Exact Name of Registrant as Specified in its Charter)
| Maryland | 743113410 | |
| (State or Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification No.) |
| 400 Hamilton Ave., Suite 310 Palo Alto, California 94301 | 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 November 6, 2009, there were 35,544,561 shares outstanding of the Registrant’s common stock, $0.001 par value.
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
FORM 10-Q TABLE OF CONTENTS
2
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
(dollars in thousands, except per share data)
| September 30, |
December 31, 2008 |
|||||||
| Assets |
||||||||
| Investments: |
||||||||
| Non-affiliate investments (cost of $431,497 and $583,592) |
$ | 410,567 | $ | 579,079 | ||||
| Affiliate investments (cost of $3,466 and $8,756) |
4,280 | 2,222 | ||||||
| Total investments, at value (cost of $434,963 and $592,348 respectively) |
414,847 | 581,301 | ||||||
| Deferred loan origination revenue |
(3,207 | ) | (6,871 | ) | ||||
| Cash and cash equivalents |
77,247 | 17,242 | ||||||
| Interest receivable |
10,382 | 8,803 | ||||||
| Other assets |
5,851 | 8,197 | ||||||
| Total assets |
505,120 | 608,672 | ||||||
| Liabilities |
||||||||
| Accounts payable and accrued liabilities |
5,798 | 9,432 | ||||||
| Short-term credit facility |
— | 89,582 | ||||||
| Long-term SBA Debentures |
130,600 | 127,200 | ||||||
| Total liabilities |
136,398 | 226,214 | ||||||
| Net assets |
$ | 368,722 | $ | 382,458 | ||||
| Net assets consist of: |
||||||||
| Common stock, par value |
$ | 35 | $ | 33 | ||||
| Capital in excess of par value |
408,733 | 395,760 | ||||||
| Unrealized depreciation on investments |
(20,405 | ) | (11,297 | ) | ||||
| Accumulated realized gain(loss) on investments |
(15,600 | ) | 3,906 | |||||
| Distributions in excess of investment income |
(4,041 | ) | (5,944 | ) | ||||
| Total net assets |
$ | 368,722 | $ | 382,458 | ||||
| Shares of common stock outstanding ($0.001 par value, 60,000 authorized) |
35,546 | 33,096 | ||||||
| Net asset value per share |
$ | 10.37 | $ | 11.56 | ||||
See Notes to consolidated financial statements (unaudited)
3
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| Acceleron Pharmaceuticals, Inc. | Drug Discovery | Preferred Stock Warrants | $ | 69 | $ | 909 | |||||||
| Preferred Stock Warrants | 35 | 154 | |||||||||||
| Acceleron Pharmaceuticals, Inc. | Preferred Stock | 1,243 | 2,131 | ||||||||||
| Total Acceleron Pharmaceuticals, Inc. | 1,347 | 3,194 | |||||||||||
| Aveo Pharmaceuticals, Inc. | Drug Discovery | Senior Debt Matures May 2012 Interest rate 11.13% |
$ | 15,000 | 14,933 | 14,933 | |||||||
| Preferred Stock Warrants | 190 | 195 | |||||||||||
| Preferred Stock Warrants | 104 | 53 | |||||||||||
| Preferred Stock Warrants | 24 | 19 | |||||||||||
| Total Aveo Pharmaceuticals, Inc. | 15,251 | 15,200 | |||||||||||
| Dicerna Pharmaceuticals, Inc. | Drug Discovery | Senior Debt Matures April 2012 Interest rate Prime + 9.20% or Floor rate of 12.95% |
$ | 7,000 | 6,807 | 6,807 | |||||||
| Preferred Stock Warrants | 206 | 162 | |||||||||||
| Preferred Stock Warrants | 31 | 28 | |||||||||||
| Total Dicerna Pharmaceuticals, Inc. | 7,044 | 6,997 | |||||||||||
| Elixir Pharmaceuticals, Inc. | Drug Discovery | Senior Debt Matures October 2011 Interest rate Prime + 9.25% or Floor rate of 12.5% |
$ | 9,167 | 9,167 | 9,167 | |||||||
| Preferred Stock Warrants | 217 | 61 | |||||||||||
| Total Elixir Pharmaceuticals, Inc. | 9,384 | 9,228 | |||||||||||
| EpiCept Corporation | Drug Discovery | Common Stock Warrants | 8 | 64 | |||||||||
| Common Stock Warrants | 40 | 335 | |||||||||||
| Epicept Corporation | Common Stock | — | — | ||||||||||
| Total EpiCept Corporation | 48 | 399 | |||||||||||
| Horizon Therapeutics, Inc. | Drug Discovery | Senior Debt Matures July 2011 Interest rate Prime + 1.50% |
$ | 5,397 | 5,316 | 5,316 | |||||||
| Preferred Stock Warrants | 230 | 191 | |||||||||||
| Total Horizon Therapeutics, Inc. | 5,546 | 5,507 | |||||||||||
| Inotek Pharmaceuticals Corp. | Drug Discovery | Preferred Stock | 1,500 | 475 | |||||||||
| Total Inotek Pharmaceuticals Corp. | 1,500 | 475 | |||||||||||
| Merrimack Pharmaceuticals, Inc. | Drug Discovery | Preferred Stock Warrants | 155 | 816 | |||||||||
| Merrimack Pharmaceuticals, Inc. | Preferred Stock | 2,000 | 3,158 | ||||||||||
| Total Merrimack Pharmaceuticals, Inc. | 2,155 | 3,974 | |||||||||||
| Paratek Pharmaceuticals, Inc. | Drug Discovery | Preferred Stock Warrants | 137 | 68 | |||||||||
| Paratek Pharmaceuticals, Inc. | Preferred Stock | 1,000 | 1,000 | ||||||||||
| Total Paratek Pharmaceuticals, Inc. | 1,137 | 1,068 | |||||||||||
| Portola Pharmaceuticals, Inc. | Drug Discovery | Senior Debt Matures April 2011 Interest rate Prime + 2.16% |
$ | 7,916 | 7,917 | 7,917 | |||||||
| Preferred Stock Warrants | 152 | 256 | |||||||||||
| Total Portola Pharmaceuticals, Inc. | 8,069 | 8,173 | |||||||||||
| Recoly, N.V. (5) | Drug Discovery | Senior Debt Matures June 2012 Interest rate Prime + 4.25% |
$ | 2,792 | 2,792 | 2,792 | |||||||
| Total Recoly, N.V. | 2,792 | 2,792 | |||||||||||
| Total Drug Discovery (15.46%) | 54,273 | 57,007 | |||||||||||
See notes to consolidated financial statements (unaudited).
4
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost(2) | Value(4) | ||||||||
| Affinity Videonet, Inc. (4) | Communications & Networking | Senior Debt Matures June 2012 Interest rate Prime + 8.75% or Floor rate of 12.00% |
$ | 2,318 | $ | 2,308 | $ | 2,308 | |||||
| Senior Debt | |||||||||||||
| Matures June 2012 Interest rate Prime + 14.75% or Floor rate of 18.00% |
$ | 2,000 | 2,041 | 2,042 | |||||||||
| Revolving Line of Credit | |||||||||||||
| Matures June 2012 Interest rate Prime + 9.75% or Floor rate of 13.00% |
$ | 500 | 500 | 500 | |||||||||
| Preferred Stock Warrants | 102 | 143 | |||||||||||
| Total Affinity Videonet, Inc. | 4,951 | 4,993 | |||||||||||
| E-band Communications, Inc. (6) | Communications & Networking | Preferred Stock | 2,372 | 3,300 | |||||||||
| Total E-Band Communications, Inc. | 2,372 | 3,300 | |||||||||||
| IKANO Communications, Inc. | Communications & Networking | Senior Debt Matures August 2011 Interest rate 12.00% |
$ | 7,804 | 7,804 | 7,804 | |||||||
| Preferred Stock Warrants | 45 | 147 | |||||||||||
| Preferred Stock Warrants | 72 | 230 | |||||||||||
| Total IKANO Communications, Inc. | 7,921 | 8,181 | |||||||||||
| Neonova Holding Company | Preferred Stock Warrants | 94 | 46 | ||||||||||
| Preferred Stock | 250 | 247 | |||||||||||
| Total Neonova Holding Company | 344 | 293 | |||||||||||
| Peerless Network, Inc. (6) | Communications & Networking | Preferred Stock Warrants | 95 | — | |||||||||
| Peerless Network, Inc. | Preferred Stock | 1,000 | 980 | ||||||||||
| Total Peerless Network, Inc. | 1,095 | 980 | |||||||||||
| Ping Identity Corporation | Communications & Networking | Preferred Stock Warrants | 52 | 169 | |||||||||
| Total Ping Identity Corporation | 52 | 169 | |||||||||||
| Purcell Systems, Inc. | Communications & Networking | Preferred Stock Warrants | 123 | 359 | |||||||||
| Total Purcell Systems, Inc. | 123 | 359 | |||||||||||
| Rivulet Communications, Inc. (4) | Communications & Networking | Senior Debt Matures March 2010 Interest rate Prime + 8.00% or Floor rate of 12% |
$ | 1,469 | 1,445 | 1,445 | |||||||
| Preferred Stock Warrants | 146 | 83 | |||||||||||
| Rivulet Communications, Inc. | Preferred Stock | 250 | 58 | ||||||||||
| Total Rivulet Communications, Inc. | 1,841 | 1,586 | |||||||||||
| Seven Networks, Inc. | Communications & Networking | Preferred Stock Warrants | 174 | 17 | |||||||||
| Total Seven Networks, Inc. | 174 | 17 | |||||||||||
| Stoke, Inc. | Preferred Stock Warrants | 53 | 88 | ||||||||||
| Total Stoke, Inc. | 53 | 88 | |||||||||||
See notes to consolidated financial statements (unaudited).
5
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| Tectura Corporation | Communications & Networking | Senior Debt Matures September 2010 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 2,500 | $ | 2,500 | $ | 2,500 | |||||
| Revolving Line of Credit | |||||||||||||
| Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 9,908 | 10,107 | 10,107 | |||||||||
| Revolving Line of Credit | |||||||||||||
| Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 5,000 | 5,092 | 5,092 | |||||||||
| Preferred Stock Warrants | 51 | 42 | |||||||||||
| Total Tectura Corporation | 17,750 | 17,741 | |||||||||||
| Wireless Channels, Inc. (4)(7) | Communications & Networking | Senior Debt Matures March 2011 Interest rate 6.72% |
$ | 9,647 | 10,158 | — | |||||||
| Senior Debt Matures April 2010 Interest rate Prime + 3.00% |
$ | 343 | 343 | — | |||||||||
| Preferred Stock Warrants | 155 | — | |||||||||||
| Total Wireless Channels, Inc. | 10,656 | — | |||||||||||
| Zayo Bandwidth, Inc. | Communications & Networking | Senior Debt Matures November 2013 Interest rate Libor + 5.25% |
$ | 24,812 | 24,812 | 24,378 | |||||||
| Total Zayo Bandwith, Inc. | 24,812 | 24,378 | |||||||||||
| Total Communications & Networking (16.84%) | 72,144 | 62,085 | |||||||||||
| Atrenta, Inc. (4) | Software | Preferred Stock Warrants | 102 | 266 | |||||||||
| Preferred Stock Warrants | 34 | 87 | |||||||||||
| Preferred Stock Warrants | 95 | 224 | |||||||||||
| Atrenta, Inc. | Preferred Stock | 250 | 375 | ||||||||||
| Total Atrenta, Inc. | 481 | 952 | |||||||||||
| Blurb, Inc. | Software | Senior Debt Matures December 2009 Interest rate Prime + 1.30% |
$ | 451 | 449 | 449 | |||||||
| Senior Debt Matures June 2011 Interest rate Prime + 3.50% or Floor rate of 8.5% |
$ | 3,843 | 3,716 | 3,716 | |||||||||
| Preferred Stock Warrants | 25 | 125 | |||||||||||
| Preferred Stock Warrants | 299 | 65 | |||||||||||
| Total Blurb, Inc. | 4,489 | 4,355 | |||||||||||
| Braxton Technologies, LLC. (4) | Software | Senior Debt Matures July 2012 Interest rate 13.00% |
$ | 6,683 | 6,744 | 6,744 | |||||||
| Preferred Stock Warrants | 189 | 148 | |||||||||||
| Total Braxton Technologies, LLC. | 6,933 | 6,892 | |||||||||||
| Bullhorn, Inc. | Software | Preferred Stock Warrants | 43 | 255 | |||||||||
| Total Bullhorn, Inc. | 43 | 255 | |||||||||||
See notes to consolidated financial statements (unaudited).
6
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| Clickfox, Inc. | Software | Senior Debt Matures September 2011 Interest rate Prime + 5.00% or Floor rate of 10.25% |
$ | 4,235 | $ | 4,146 | $ | 4,146 | |||||
| Revolving Line of Credit Matures July 2010 Interest rate Prime + 8.50% or Floor rate of 13.5% |
$ | 2,000 | 2,000 | 2,000 | |||||||||
| Preferred Stock Warrants | 177 | 219 | |||||||||||
| Total Clickfox, Inc. | 6,323 | 6,365 | |||||||||||
| Forescout Technologies, Inc. | Software | Preferred Stock Warrants | 99 | 106 | |||||||||
| Total Forescout Technologies, Inc. | 99 | 106 | |||||||||||
| GameLogic, Inc. | Software | Preferred Stock Warrants | 92 | — | |||||||||
| Total GameLogic, Inc. | 92 | — | |||||||||||
| Gomez, Inc. (8) | Software | Preferred Stock Warrants | 35 | 770 | |||||||||
| Total Gomez, Inc. | 35 | 770 | |||||||||||
| HighJump Acquisition, LLC. | Software | Senior Debt Matures May 2013 Interest rate Libor + 8.75% or Floor rate of 12.00% |
$ | 15,000 | 15,000 | 15,000 | |||||||
| Total HighJump Acquisition, LLC. | 15,000 | 15,000 | |||||||||||
| HighRoads, Inc. | Software | Preferred Stock Warrants | 44 | 36 | |||||||||
| Total HighRoads, Inc. | 44 | 36 | |||||||||||
| Infologix, Inc. (4) | Software | Senior Debt Matures May 2012 Interest rate Prime + 10.75% or Floor rate of 15.75% Revolving Line of Credit |
$ | 11,400 | 11,623 | 11,623 | |||||||
| Matures January 2010 Interest rate Prime + 9.75% or Floor rate of 14.25% |
$ | 9,000 | 9,035 | 9,035 | |||||||||
| Preferred Stock Warrants | 36 | 56 | |||||||||||
| Total Infologix, Inc. | 20,694 | 20,714 | |||||||||||
| Intelliden, Inc. | Software | Preferred Stock Warrants | 18 | — | |||||||||
| Total Intelliden, Inc. | 18 | — | |||||||||||
| PSS Systems, Inc. | Software | Preferred Stock Warrants | 52 | 108 | |||||||||
| Total PSS Systems, Inc. | 52 | 108 | |||||||||||
| Rockyou, Inc. | Software | Senior Debt Matures May 2011 Interest rate Prime + 2.50% |
$ | 1,969 | 1,932 | 1,932 | |||||||
| Preferred Stock Warrants | 117 | 115 | |||||||||||
| Total Rockyou, Inc. | 2,049 | 2,047 | |||||||||||
| Savvion, Inc. (4) | Software | Senior Debt Matures February 2011 Interest rate Prime + 7.75% or Floor rate of 11.00% |
$ | 2,539 | 2,487 | 2,487 | |||||||
| Revolving Line of Credit Matures May 2010 Interest rate Prime + 6.75% or Floor rate of 10.00% |
$ | 1,500 | 1,500 | 1,500 | |||||||||
| Preferred Stock Warrants | 52 | 169 | |||||||||||
| Total Savvion, Inc. | 4,039 | 4,156 | |||||||||||
See notes to consolidated financial statements (unaudited).
7
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| Sportvision, Inc. | Software | Preferred Stock Warrants | $ | 39 | $ | 79 | |||||||
| Total Sportvision, Inc. | 39 | 79 | |||||||||||
| WildTangent, Inc. | Software | Preferred Stock Warrants | 238 | 60 | |||||||||
| Total WildTangent, Inc. | 238 | 60 | |||||||||||
| Total Software (16.79%) | 60,668 | 61,895 | |||||||||||
| Luminus Devices, Inc. | Electronics & Computer Hardware | Senior Debt Matures December 2011 Interest rate 12.875% |
$ | 11,796 | 11,796 | 11,796 | |||||||
| Preferred Stock Warrants | 183 | — | |||||||||||
| Preferred Stock Warrants | 84 | 1 | |||||||||||
| Preferred Stock Warrants | 334 | 11 | |||||||||||
| Total Luminus Devices, Inc. | 12,397 | 11,808 | |||||||||||
| Maxvision Holding, LLC. | Electronics & Computer Hardware | Senior Debt Matures October 2012 Interest rate Prime + 5.50% |
$ | 5,000 | 5,193 | 5,193 | |||||||
| Senior Debt Matures April 2012 Interest rate Prime + 2.25% | $ | 4,617 | 4,617 | 4,617 | |||||||||
| Revolving Line of Credit | |||||||||||||
| Matures April 2012 Interest rate Prime + 2.25% |
$ | 1,600 | 1,680 | 1,680 | |||||||||
| Maxvision Holding, LLC. | Common Stock | 81 | 284 | ||||||||||
| Total Maxvision Holding, LLC | 11,571 | 11,774 | |||||||||||
| Shocking Technologies, Inc. | Electronics & Computer Hardware | Senior Debt Matures December 2010 Interest rate Prime + 2.50% |
$ | 146 | 133 | 133 | |||||||
| Senior Debt Matures December 2010 Interest rate Prime + 2.50% |
$ | 2,164 | 2,164 | 2,164 | |||||||||
| Preferred Stock Warrants | 63 | 50 | |||||||||||
| Total Shocking Technologies, Inc. | 2,360 | 2,347 | |||||||||||
| Spatial Photonics, Inc. | Electronics & Computer Hardware | Senior Debt Matures April 2011 Interest rate 10.066% |
$ | 2,301 | 2,268 | 2,268 | |||||||
| Senior Debt Mature April 2011 Interest rate 9.217% |
$ | 229 | 229 | 229 | |||||||||
| Preferred Stock Warrants | 130 | — | |||||||||||
| Spatial Photonics, Inc. | Preferred Stock | 500 | 465 | ||||||||||
| Total Spatial Photonics Inc. | 3,127 | 2,962 | |||||||||||
See notes to consolidated financial statements (unaudited).
8
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| VeriWave, Inc. | Electronics & Computer Hardware | Senior Debt Matures May 2010 Interest rate Prime + 2.5% |
$ | 1,249 | $ | 1,240 | $ | 1,240 | |||||
| Preferred Stock Warrants | 55 | 81 | |||||||||||
| Preferred Stock Warrants | 46 | 28 | |||||||||||
| Total VeriWave, Inc. | 1,341 | 1,349 | |||||||||||
| Total Electronics & Computer Hardware (8.20%) | 30,796 | 30,240 | |||||||||||
| Aegerion Pharmaceuticals, Inc. (4) | Specialty Pharmaceuticals | Senior Debt Matures September 2011 Interest rate Prime + 2.50% or Floor rate of 11.00% |
$ | 6,179 | 6,179 | 6,179 | |||||||
| Convertible Senior Debt | |||||||||||||
| Matures December 2010 | $ | 279 | 279 | 279 | |||||||||
| Preferred Stock Warrants | 70 | 604 | |||||||||||
| Aegerion Pharmaceuticals, Inc. (4) | Preferred Stock | 1,000 | 1,294 | ||||||||||
| Total Aegerion Pharmaceuticals, Inc. | 7,528 | 8,356 | |||||||||||
| QuatRx Pharmaceuticals Company | Specialty Pharmaceuticals | Senior Debt Matures October 2011 Interest rate Prime + 8.90% or Floor rate of 12.15% |
$ | 15,972 | 15,838 | 15,838 | |||||||
| Convertible Senior Debt | |||||||||||||
| Matures March 2010 | $ | 82 | 82 | 155 | |||||||||
| Convertible Senior Debt | |||||||||||||
| Matures March 2010 | $ | 1,250 | 1,250 | 2,356 | |||||||||
| Preferred Stock Warrants | 220 | — | |||||||||||
| Preferred Stock Warrants | 307 | — | |||||||||||
| Quatrx Pharmaceuticals Company | Preferred Stock | 750 | — | ||||||||||
| Total Quatrx Pharmaceuticals Company | 18,447 | 18,349 | |||||||||||
| Total Specialty Pharmaceuticals (7.24%) | 25,975 | 26,705 | |||||||||||
| Annie's, Inc. | Consumer & Business Products | Senior Debt - Second Lien Matures April 2011 Interest rate LIBOR + 6.50% or Floor rate of 10.00% |
$ | 6,000 | 6,002 | 6,002 | |||||||
| Preferred Stock Warrants | 321 | 132 | |||||||||||
| Total Annie's, Inc. | 6,323 | 6,134 | |||||||||||
| IPA Holdings, LLC. (4) | Consumer & Business Products | Senior Debt Matures November 2012 Interest rate Prime + 8.25% or Floor rate of 15.5% |
$ | 9,750 | 9,822 | 9,822 | |||||||
| Senior Debt Matures May 2013 Interest rate Prime + 11.25% or Floor rate of 8.5% |
$ | 6,500 | 6,541 | 6,541 | |||||||||
| Revolving Line of Credit Matures November 2012 Interest rate Prime + 7.75% or Floor rate of 12.00% |
$ | 1,556 | 1,556 | 1,556 | |||||||||
| Common Units Warrants | 275 | 32 | |||||||||||
| IPA Holding, LLC. | Common Units | 500 | 120 | ||||||||||
| Total IPA Holding, LLC. | 18,694 | 18,071 | |||||||||||
| Market Force Information, Inc. | Consumer & Business Products | Preferred Stock Warrants | 24 | — | |||||||||
| Market Force Information, Inc. | Preferred Stock | 500 | 440 | ||||||||||
| Total Market Force Information, Inc. | 524 | 440 | |||||||||||
See notes to consolidated financial statements (unaudited).
9
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment (1) |
Principal Amount |
Cost (2) | Value(4) | ||||||||
| OnTech Operations, Inc. | Consumer & Business Products | Senior Debt Matures December 2009 Interest rate 16.00% |
$ | 106 | $ | 106 | $ | — | |||||
| Preferred Stock Warrants | 453 | — | |||||||||||
| Preferred Stock Warrants | 218 | — | |||||||||||
| OnTech Operations, Inc. | Preferred Stock | 1,000 | — | ||||||||||
| Total OnTech Operations, Inc. | 1,777 | — | |||||||||||
| Wageworks, Inc. | Consumer & Business Products | Preferred Stock Warrants | 252 | 1,392 | |||||||||
| Wageworks, Inc. | Preferred Stock | 250 | 368 | ||||||||||
| Total Wageworks, Inc. | 502 | 1,760 | |||||||||||
| Total Consumer & Business Products (7.16%) | 27,820 | 26,405 | |||||||||||
| Custom One Design, Inc. | Semiconductors | Senior Debt Matures September 2010 Interest rate 11.50% |
$ | 466 | 461 | 461 | |||||||
| Common Stock Warrants | 18 | — | |||||||||||
| Total Custom One Design, Inc. | 479 | 461 | |||||||||||
| Enpirion, Inc. | Semiconductors | Senior Debt Matures August 2011 Interest rate Prime + 2.00% or Floor rate of 9.5% |
$ | 5,831 | 5,779 | 5,779 | |||||||
| Preferred Stock Warrants | 157 | 6 | |||||||||||
| Total Enpirion, Inc. | 5,936 | 5,785 | |||||||||||
| iWatt Inc. | Semiconductors | Preferred Stock Warrants | 46 | — | |||||||||
| Preferred Stock Warrants | 51 | — | |||||||||||
| Preferred Stock Warrants | 73 | — | |||||||||||
| Preferred Stock Warrants | 458 | — | |||||||||||
| iWatt Inc. | Preferred Stock | 490 | 950 | ||||||||||
| Total iWatt Inc. | 1,118 | 950 | |||||||||||
| NEXX Systems, Inc. (4) | Semiconductors | Senior Debt Matures March 2010 Interest rate Prime + 3.50% or Floor rate of 11.25% |
$ | 1,111 | 1,088 | 1,088 | |||||||
| Revolving Line of Credit Matures June 2010 Interest rate Prime + 8.00% or Floor rate of 13.25% |
$ | 3,000 | 3,000 | 3,000 | |||||||||
| Revolving Line of Credit Matures December 2009 Interest rate Prime + 5.00% or Floor rate of 14.00% |
$ | 2,000 | 2,000 | 2,000 | |||||||||
| Preferred Stock Warrants | 165 | 172 | |||||||||||
| Total NEXX Systems, Inc. | 6,253 | 6,260 | |||||||||||
| Quartics, Inc. | Semiconductors | Senior Debt Matures May 2010 Interest rate 10.00% |
$ | 222 | 212 | 212 | |||||||
| Preferred Stock Warrants | 53 | — | |||||||||||
| Total Quartics, Inc. | 265 | 212 | |||||||||||
| Solarflare Communications, Inc. | Semiconductors | Senior Debt Matures August 2010 Interest rate 11.75% |
$ | 267 | 244 | 244 | |||||||
| Preferred Stock Warrants | 83 | — | |||||||||||
| Solarflare Communications, Inc. | Common Stock | 641 | 3 | ||||||||||
| Total Solarflare Communications, Inc. | 968 | 247 | |||||||||||
| Total Semiconductors (3.77%) | 15,019 | 13,915 | |||||||||||
See notes to consolidated financial statements (unaudited).
10
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(4) | ||||||||
| Labopharm USA, Inc. (5) |
Drug Delivery | Senior Debt | |||||||||||
| Matures June 2012 Interest rate 10.95% |
$ | 20,000 | $ | 19,680 | $ | 19,680 | |||||||
| Common Stock Warrants | 687 | 776 | |||||||||||
| Total Labopharm USA, Inc. |
20,367 | 20,456 | |||||||||||
| Transcept Pharmaceuticals, Inc. |
Drug Delivery | Common Stock Warrants | 36 | 212 | |||||||||
| Common Stock Warrants | 51 | 271 | |||||||||||
| Transcept Pharmaceuticals, Inc. |
Common Stock | 500 | 574 | ||||||||||
| Total Transcept Pharmaceuticals, Inc. |
587 | 1,057 | |||||||||||
| Total Drug Delivery (5.83%) |
20,954 | 21,513 | |||||||||||
| BARRX Medical, Inc. |
Therapeutic | Senior Debt | |||||||||||
| Mature December 2011 Interest rate 11.00% |
$ | 6,083 | 6,073 | 6,073 | |||||||||
| Revolving Line of Credit | |||||||||||||
| Matures May 2010 Interest rate 10.00% |
$ | 1,000 | 1,000 | 1,000 | |||||||||
| Preferred Stock Warrants | 76 | — | |||||||||||
| BARRX Medical, Inc. |
Preferred Stock | 1,500 | 1,215 | ||||||||||
| Total BARRX Medical, Inc. |
8,649 | 8,288 | |||||||||||
| EKOS Corporation |
Therapeutic | Senior Debt | |||||||||||
| Matures November 2010 Interest rate Prime + 2.00% |
$ | 3,385 | 3,315 | 3,315 | |||||||||
| Preferred Stock Warrants | 175 | 41 | |||||||||||
| Preferred Stock Warrants | 152 | 20 | |||||||||||
| Total EKOS Corporation |
3,642 | 3,376 | |||||||||||
| Gelesis, Inc. (7) |
Therapeutic | Senior Debt | |||||||||||
| Matures May 2012 Interest rate Prime + 5.65% or Floor rate of 10.75% |
$ | 2,849 | 2,811 | — | |||||||||
| Preferred Stock Warrants | 58 | — | |||||||||||
| Total Gelesis, Inc. |
2,869 | — | |||||||||||
| Gynesonics, Inc. |
Therapeutic | Preferred Stock Warrants | 18 | 396 | |||||||||
| Gynesonics, Inc. |
Preferred Stock | 250 | 871 | ||||||||||
| Total Gynesonics, Inc. |
268 | 1,267 | |||||||||||
| Light Science Oncology, Inc. |
Therapeutic | Preferred Stock Warrants | 99 | 28 | |||||||||
| Total Light Science Oncology, Inc. |
99 | 28 | |||||||||||
| Novasys Medical, Inc.(4) |
Therapeutic | Senior Debt | |||||||||||
| Matures February 2010 Interest rate 9.70% |
$ | 1,153 | 1,151 | 1,151 | |||||||||
| Preferred Stock Warrants | 71 | 5 | |||||||||||
| Preferred Stock Warrants | 54 | 7 | |||||||||||
| Novasys Medical, Inc. |
Preferred Stock | 1,000 | 1,606 | ||||||||||
| Total Novasys Medical, Inc. |
2,276 | 2,769 | |||||||||||
| Total Therapeutic (4.27%) |
17,803 | 15,728 | |||||||||||
See notes to consolidated financial statements (unaudited).
11
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(4) | ||||||||
| Cozi Group, Inc. |
Internet Consumer & Business Services | Preferred Stock Warrants | $ | 148 | $ | — | |||||||
| Cozi Group, Inc. |
Preferred Stock | 177 | 7 | ||||||||||
| Total Cozi Group, Inc. |
325 | 7 | |||||||||||
| Invoke Solutions, Inc. |
Preferred Stock Warrants | 56 | 153 | ||||||||||
| Preferred Stock Warrants | 26 | 34 | |||||||||||
| Total Invoke Solutions, Inc. |
82 | 187 | |||||||||||
| Prism Education Group Inc. |
Internet Consumer & Business Services | Senior Debt | |||||||||||
| Matures December 2010 Interest rate 11.25% |
$ | 987 | 973 | 973 | |||||||||
| Preferred Stock Warrants | 43 | 115 | |||||||||||
| Total Prism Education Group Inc. |
1,016 | 1,088 | |||||||||||
| RazorGator Interactive Group, Inc. (4) |
Internet Consumer & Business Services | Revolving Line of Credit | |||||||||||
| Matures May 2010 Interest rate Prime + 6.00% or Floor rate of 12.00% |
$ | 3,000 | 3,000 | 3,000 | |||||||||
| Preferred Stock Warrants | 13 | 194 | |||||||||||
| Preferred Stock Warrants | 28 | 30 | |||||||||||
| RazorGator Interactive Group, Inc. |
Preferred Stock | 1,000 | 1,033 | ||||||||||
| Total RazorGator Interactive Group, Inc. |
4,041 | 4,257 | |||||||||||
| Serious USA, Inc. (7) |
Internet Consumer & Business Services | Senior Debt | |||||||||||
| Matures February 2011 Interest rate 14% |
$ | 2,212 | 2,179 | — | |||||||||
| Preferred Stock Warrants | 93 | — | |||||||||||
| Total Serious USA, Inc. |
2,272 | — | |||||||||||
| Spa Chakra, Inc. |
Internet Consumer & Business Services | Senior Debt | |||||||||||
| Matures October 2011 Interest rate 16.45% |
$ | 10,000 | 10,234 | 10,234 | |||||||||
| Senior Debt | |||||||||||||
| Matures April 2010 Interest rate 16.45% |
$ | 850 | 850 | 850 | |||||||||
| Preferred Stock Warrants | 1 | 1 | |||||||||||
| Total Spa Chakra, Inc. |
11,085 | 11,085 | |||||||||||
| Total Internet Consumer & Business Services (4.51%) |
18,821 | 16,624 | |||||||||||
| Lilliputian Systems, Inc. |
Energy | Preferred Stock Warrants | 106 | 127 | |||||||||
| Common Stock Warrants | 49 | — | |||||||||||
| Total Lilliputian Systems, Inc. |
155 | 127 | |||||||||||
| Total Energy (0.03%) |
155 | 127 | |||||||||||
| Box.net, Inc. |
Information Services | Senior Debt | |||||||||||
| Matures May 2011 Interest rate Prime + 1.50% |
$ | 786 | 762 | 762 | |||||||||
| Senior Debt | |||||||||||||
| Matures September 2011 Interest rate Prime + 0.50% |
$ | 325 | 325 | 325 | |||||||||
| Preferred Stock Warrants | 73 | 46 | |||||||||||
| Total Box.net, Inc. |
1,160 | 1,133 | |||||||||||
See notes to consolidated financial statements (unaudited).
12
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(4) | ||||||||
| Buzznet, Inc. |
Information Services | Preferred Stock Warrants | $ | 9 | $ | — | |||||||
| Buzznet, Inc. |
Preferred Stock | 250 | 74 | ||||||||||
| Total Buzznet, Inc. |
259 | 74 | |||||||||||
| Caivis Acquisition, Inc. |
Information Services | Common Stock | 880 | 880 | |||||||||
| Total Caivis Acquisition, Inc. |
880 | 880 | |||||||||||
| hi5 Networkss, Inc. |
Information Services | Senior Debt | |||||||||||
| Matures December 2010 Interest rate Prime + 2.5% |
$ | 1,698 | 1,698 | 1,698 | |||||||||
| Senior Debt | |||||||||||||
| Matures June 2011 Interest rate Prime + 0.5% |
$ | 4,170 | 4,112 | 4,112 | |||||||||
| Preferred Stock Warrants | 213 | 47 | |||||||||||
| Total hi5 Networks, Inc. |
6,023 | 5,857 | |||||||||||
| Jab Wireless, Inc. |
Information Services | Senior Debt | |||||||||||
| Matures November 2012 Interest rate Prime + 3.50% or Floor rate of 9.5% |
$ | 15,000 | 15,052 | 15,052 | |||||||||
| Preferred Stock Warrants | 265 | 188 | |||||||||||
| Total Jab Wireless, Inc. |
15,317 | 15,240 | |||||||||||
| Solutionary, Inc. |
Preferred Stock Warrants | 94 | 100 | ||||||||||
| Preferred Stock Warrants | 2 | 3 | |||||||||||
| Solutionary, Inc. |
Preferred Stock | 250 | 236 | ||||||||||
| Total Solutionary, Inc. |
346 | 339 | |||||||||||
| Ancestry.com, Inc.(The Generation Networks, Inc.) |
Common Stock | 500 | 937 | ||||||||||
| Total The Generation Networks, Inc. |
500 | 937 | |||||||||||
| Good Technologies, Inc. (Visto Corporation) |
Common Stock | 603 | 603 | ||||||||||
| Total Visto Corporation |
603 | 603 | |||||||||||
| Coveroo, Inc. |
Preferred Stock Warrants | 7 | — | ||||||||||
| Total Coveroo, Inc. |
7 | — | |||||||||||
| Zeta Interactive Corporation |
Information Services | Senior Debt | |||||||||||
| Matures November 2012 Interest rate 9.50% |
$ | 5,090 | 5,059 | 5,059 | |||||||||
| Senior Debt | — | — | |||||||||||
| Matures November 2012 Interest rate 10.50% |
$ | 6,946 | 7,111 | 7,111 | |||||||||
| Preferred Stock Warrants | 172 | — | |||||||||||
| Zeta Interactive Corporation |
Preferred Stock | 500 | 405 | ||||||||||
| Total Zeta Interactive Corporation |
12,842 | 12,575 | |||||||||||
| Total Information Services (10.21%) |
37,937 | 37,638 | |||||||||||
| Novadaq Technologies, Inc. |
Diagnostic | Common Stock | 1,605 | 422 | |||||||||
| Total Novadaq Technologies, Inc. |
1,605 | 422 | |||||||||||
| Optiscan Biomedical, Corp. |
Diagnostic | Senior Debt | |||||||||||
| Matures June 2011 Interest rate 10.25% |
$ | 8,864 | 8,618 | 8,618 | |||||||||
| Preferred Stock Warrants | 760 | 365 | |||||||||||
| Optiscan Biomedical, Corp. |
Preferred Stock | 3,000 | 3,000 | ||||||||||
| Total Optiscan Biomedical, Corp. |
12,378 | 11,983 | |||||||||||
| Total Diagnostic (3.36%) |
13,983 | 12,405 | |||||||||||
See notes to consolidated financial statements (unaudited).
13
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
September 30, 2009
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(4) | ||||||||
| Kamada, LTD. (5) |
Biotechnology Tools | Senior Debt | |||||||||||
| Matures February 2012 Interest rate 10.60% |
$ | 19,500 | $ | 19,115 | $ | 19,115 | |||||||
| Common Stock Warrants | 159 | 278 | |||||||||||
| Kamada, LTD. |
Common Stock | 794 | 1,586 | ||||||||||
| Total Kamada, LTD. |
20,068 | 20,979 | |||||||||||
| NuGEN Technologies, Inc. |
Biotechnology Tools | Senior Debt | |||||||||||
| Matures November 2010 Interest rate Prime + 3.45% |
$ | 984 | 976 | 976 | |||||||||
| Senior Debt | |||||||||||||
| Matures November 2010 Interest rate Prime + 1.70% |
$ | 558 | 558 | 558 | |||||||||
| Preferred Stock Warrants | 45 | — | |||||||||||
| Preferred Stock Warrants | 33 | — | |||||||||||
| NuGEN Technologies, Inc. |
Preferred Stock | 500 | 500 | ||||||||||
| Total NuGEN Technologies, Inc. |
2,112 | 2,034 | |||||||||||
| Solace Pharmaceuticals, Inc. (4) |
Biotechnology Tools | Senior Debt | |||||||||||
| Matures August 2012 Interest rate Prime + 4.25% or Floor rate of 9.85% |
$ | 5,000 | 4,923 | 4,923 | |||||||||
| Preferred Stock Warrants | 42 | 41 | |||||||||||
| Preferred Stock Warrants | 54 | 43 | |||||||||||
| Total Solace Pharmaceuticals, Inc. |
5,019 | 5,007 | |||||||||||
| Total Biotechnology Tools (7.60%) |
27,199 | 28,020 | |||||||||||
| Crux Biomedical, Inc. |
Surgical Devices | Preferred Stock Warrants | 37 | — | |||||||||
| Crux Biomedical, Inc. |
Preferred Stock | 250 | 26 | ||||||||||
| Total Crux Biomedical, Inc. |
287 | 26 | |||||||||||
| Transmedics, Inc. (4) (7) |
Surgical Devices | Senior Debt | |||||||||||
| Matures December 2011 Interest rate Prime + 5.25% |
$ | 9,475 | 9,362 | 2,362 | |||||||||
| Preferred Stock Warrants | 225 | — | |||||||||||
| Total Transmedics, Inc. |
9,587 | 2,362 | |||||||||||
| Total Surgical Devices (0.65%) |
9,874 | 2,388 | |||||||||||
| Glam Media, Inc. |
Media/Content/ Info | Preferred Stock Warrants | 482 | 283 | |||||||||
| Total Glam Media, Inc. |
482 | 283 | |||||||||||
| Waterfront Media Inc. |
Preferred Stock Warrants | 60 | 369 | ||||||||||
| Preferred Stock | 1,000 | 1,500 | |||||||||||
| Total Waterfront Media Inc. |
1,060 | 1,869 | |||||||||||
| Total Media/Content/Info (0.58%) |
1,542 | 2,152 | |||||||||||
| Total Investments (112.51%) |
$ | 434,963 | $ | 414,847 | |||||||||
| * | 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 $12,932, $35,436 and $22,504, respectively. The tax cost of investments is $435,171. |
| (3) | Except for warrants in five publicly traded companies and common stock in three publicly traded companies, all investments are restricted at September 30, 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 September 30, 2009, and is therefore considered non-income producing. |
| (8) | On October 7, 2009 Compuware Corporation (NASDAQ: CPWR) announced the signing of a definitive agreement to acquire privately-held Gomez, Inc. The $295.0 million cash acquisition is expected to close in the fourth quarter of 2009. The Company’s financial statements do not reflect any potential unrealized gains related to the transaction as of September 30, 2009. |
See notes to consolidated financial statements (unaudited).
14
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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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.
15
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 |
$ | 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 |
$ | 4,000 | 3,942 | 3,942 | |||||||
| Senior Debt |
$ | 2,000 | 2,000 | 2,000 | |||||||||
| Revolving Line of Credit |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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.
16
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 |
$ | 1,659 | $ | 1,601 | $ | 1,601 | |||||
| Revolving Line of Credit |
$ | 6,000 | 6,000 | 6,000 | |||||||||
| Senior Debt |
$ | 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 |
$ | 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 |
$ | 6,941 | 6,875 | 6,875 | |||||||
| Revolving Line of Credit |
$ | 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 |
$ | 574 | 545 | 545 | |||||||
| Senior Debt |
$ | 1,144 | 1,144 | 1,144 | |||||||||
| Senior Debt |
$ | 946 | 946 | 946 | |||||||||
| Preferred Stock Warrants |
53 | 91 | |||||||||||
| Total Stoke, Inc. |
2,688 | 2,726 | |||||||||||
| Tectura Corporation (6.54%)(4) |
Communications & Networking | Senior Debt |
$ | 7,232 | 7,439 | 7,439 | |||||||
| Revolving Line of Credit |
$ | 12,000 | 12,000 | 12,000 | |||||||||
| Revolving Line of Credit |
$ | 5,507 | 5,507 | 5,507 | |||||||||
| Preferred Stock Warrants |
51 | 77 | |||||||||||
| Total Tectura Corporation |
24,997 | 25,023 | |||||||||||
See notes to consolidated financial statements.
17
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2008
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal |
Cost(2) |
Value(3) | ||||||||
| Wireless Channels, Inc. (3.04%)(4) |
Communications & Networking | Senior Debt |
$ | 10,000 | $ | 10,384 | $ | 10,384 | |||||
| Senior Debt |
$ | 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 |
$ | 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 |
$ | 2,789 | 2,742 | 2,742 | |||||||
| Revolving Line of Credit |
$ | 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 |
$ | 1,414 | 1,405 | 1,405 | |||||||
| Senior Debt |
$ | 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 |
$ | 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 |
$ | 782 | 760 | 760 | |||||||
| Preferred Stock Warrants |
43 | 222 | |||||||||||
| Total Bullhorn, Inc. |
803 | 982 | |||||||||||
| Cittio, Inc. (0.19%) |
Software | Senior Debt |
$ | 731 | 720 | 720 | |||||||
| Preferred Stock Warrants |
53 | — | |||||||||||
| Total Cittio, Inc. |
773 | 720 | |||||||||||
See notes to consolidated financial statements.
18
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2008
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal |
Cost(2) |
Value(3) | ||||||||
| Clickfox, Inc. (0.65%) |
Software | Senior Debt |
$ | 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 |
$ | 906 | 892 | 892 | |||||||
| Revolving Line of Credit |
$ | 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 |
$ | 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 |
$ | 12,000 | 12,007 | 12,007 | |||||||
| Revolving Line of Credit |
$ | 9,000 | 9,000 | 9,000 | |||||||||
| Total Infologix, Inc. |
21,007 | 21,007 | |||||||||||
| Intelliden, Inc. (0.37%) |
Software | Senior Debt |
$ | 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 |
$ | 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.
19
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2008
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal |
Cost(2) |
Value(3) | ||||||||
| PSS Systems, Inc. (0.65%)(4) |
Software | Senior Debt |
$ | 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 |
$ | 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 |
$ | 331 | 279 | 279 | |||||||
| Revolving Line of Credit |
$ | 3,366 | 3,366 | 3,366 | |||||||||
| Revolving Line of Credit |
$ | 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 |
$ | 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 |
$ | 5,000 | 5,000 | 5,000 | |||||||
| Senior Debt |
$ | 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 |
$ | 225 | 192 | 192 | |||||||
| Senior Debt |
$ | 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.
20
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2008
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal |
Cost(2) |
Value(3) | ||||||||
| SiCortex, Inc. (1.83%) |
Electronics & Computer Hardware |
Senior Debt |
$ | 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 |
$ | 3,216 | 3,146 | 3,146 | |||||||
| Senior Debt |
$ | 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 |
$ | 2,549 | 2,507 | 2,507 | |||||||
| Revolving Line of Credit |
$ | 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 |
$ | 7,525 | 7,525 | 7,525 | |||||||
| Covertible Senior Debt |
$ | 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 |
$ | 20,000 | 19,761 | 19,761 | |||||||
| Covertible Senior Debt |
$ | 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.
21
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 |
$ | 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 |
$ | 10,000 | 10,000 | 10,000 | |||||||
| Senior Debt |
$ | 6,500 | 6,590 | 6,590 | |||||||||
| Revolving Line of Credit |
$ | 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 |
$ | 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 |
$ | 775 | 765 | 523 | |||||||
| Common Stock Warrants |
18 | — | |||||||||||
| Total Custom One Design, Inc. |
783 | 523 | |||||||||||
| Enpirion, Inc. (1.97%) |
Semiconductors | Senior Debt |
$ | 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.
22
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 |
$ | 2,659 | $ | 2,593 | $ | 2,593 | |||||
| Revolving Line of Credit |
$ | 4,605 | 4,605 | 4,605 | |||||||||
| Revolving Line of Credit |
$ | 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 |
$ | 629 | 601 | 286 | |||||||
| Preferred Stock Warrants | 53 | — | |||||||||||
| Total Quartics, Inc. | 654 | 286 | |||||||||||
| Solarflare Communications, Inc. (0.11%)(4) | Semiconductors | Senior Debt |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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.
23
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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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.
24
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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 6,905 | 6,863 | 6,863 | |||||||
| Revolving Line of Credit |
$ | 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 |
$ | 1,000 | 950 | 950 | |||||||
| Senior Debt |
$ | 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 | ||||||||||