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, 2010
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 May 5, 2010, there were 36,248,195 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. | 3 | |||||
| 3 | ||||||
| Consolidated Schedule of Investments as of March 31, 2010 (unaudited) |
4 | |||||
| Consolidated Schedule of Investments as of December 31, 2009 |
17 | |||||
| 29 | ||||||
| 30 | ||||||
| 31 | ||||||
| 32 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
49 | ||||
| Item 3. | 66 | |||||
| Item 4. | 67 | |||||
| PART II. OTHER INFORMATION | 68 | |||||
| Item 1. | 68 | |||||
| Item 1A. | 68 | |||||
| Item 2. | 72 | |||||
| Item 3. | 72 | |||||
| Item 4. | 72 | |||||
| Item 5. | 72 | |||||
| Item 6. | 73 | |||||
| SIGNATURES | 74 | |||||
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)
| March 31, 2010 (unaudited) |
December 31, 2009 |
|||||||
| Assets |
||||||||
| Investments: |
||||||||
| Non-Control/Non-Affiliate investments (cost of $342,218 and $353,648, respectively) |
$ | 332,728 | $ | 335,979 | ||||
| Affiliate investments (cost of $2,880 and $2,880, respectively) |
2,222 | 2,274 | ||||||
| Control investments (cost of $44,806 and $23,823, respectively) |
45,023 | 32,184 | ||||||
| Total investments, at value (cost of $389,904 and $380,351 respectively) |
379,973 | 370,437 | ||||||
| Deferred loan origination revenue |
(3,210 | ) | (2,425 | ) | ||||
| Cash and cash equivalents |
106,138 | 124,828 | ||||||
| Interest receivable |
11,369 | 10,309 | ||||||
| Other assets |
6,687 | 5,818 | ||||||
| Total assets |
500,957 | 508,967 | ||||||
| Liabilities |
||||||||
| Accounts payable and accrued liabilities |
3,945 | 11,852 | ||||||
| Short-term credit facility |
— | — | ||||||
| Long-term SBA debentures |
130,600 | 130,600 | ||||||
| Total liabilities |
134,545 | 142,452 | ||||||
| Net assets |
$ | 366,412 | $ | 366,515 | ||||
| Net assets consist of: |
||||||||
| Common stock, par value |
$ | 35 | $ | 35 | ||||
| Capital in excess of par value |
410,349 | 409,036 | ||||||
| Unrealized appreciation (depreciation) on investments |
(10,288 | ) | (10,028 | ) | ||||
| Accumulated realized gains (losses) on investments |
(27,767 | ) | (28,129 | ) | ||||
| Distributions in excess of investment income |
(5,917 | ) | (4,399 | ) | ||||
| Total net assets |
$ | 366,412 | $ | 366,515 | ||||
| Shares of common stock outstanding ($0.001 par value, 60,000 authorized) |
36,248 | 35,634 | ||||||
| Net asset value per share |
$ | 10.11 | $ | 10.29 | ||||
See Notes to Consolidated Financial Statements (unaudited)
3
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Acceleron Pharmaceuticals, Inc. |
Drug Discovery |
Preferred Stock Warrants |
$ | 69 | $ | 1,100 | |||||||
| Preferred Stock Warrants |
35 | 226 | |||||||||||
| Preferred Stock |
1,243 | 2,464 | |||||||||||
| Total Acceleron Pharmaceuticals, Inc. |
1,347 | 3,790 | |||||||||||
| Aveo Pharmaceuticals, Inc. |
Drug Discovery |
Senior Debt Matures May 2012 Interest rate 11.13% |
$ | 13,232 | 13,187 | 13,187 | |||||||
| Preferred Stock Warrants |
190 | 279 | |||||||||||
| Preferred Stock Warrants |
104 | 67 | |||||||||||
| Preferred Stock Warrants |
24 | 26 | |||||||||||
| Total Aveo Pharmaceuticals, Inc. |
13,505 | 13,559 | |||||||||||
| Dicerna Pharmaceuticals, Inc. |
Drug Discovery |
Senior Debt Matures April 2012 Interest rate Prime + 9.20% or Floor rate of 12.95% |
$ | 5,987 | 5,851 | 5,851 | |||||||
| Preferred Stock Warrants |
206 | 154 | |||||||||||
| Preferred Stock Warrants |
31 | 27 | |||||||||||
| Total Dicerna Pharmaceuticals, Inc. |
6,088 | 6,032 | |||||||||||
| Elixir Pharmaceuticals, Inc. |
Drug Discovery |
Senior Debt Matures October 2011 Interest rate Prime + 9.25% or Floor rate of 12.5% |
$ | 6,967 | 6,967 | 1,967 | |||||||
| Preferred Stock Warrants |
217 | — | |||||||||||
| Total Elixir Pharmaceuticals, Inc. |
7,184 | 1,967 | |||||||||||
| EpiCept Corporation |
Drug Discovery |
Common Stock Warrants |
4 | 22 | |||||||||
| Common Stock Warrants |
40 | 255 | |||||||||||
| Total EpiCept Corporation |
44 | 277 | |||||||||||
| Horizon Therapeutics, Inc. |
Drug Discovery |
Senior Debt Matures July 2011 Interest rate Prime + 1.50% |
$ | 3,989 | 3,945 | 3,945 | |||||||
| Preferred Stock Warrants |
231 | — | |||||||||||
| Total Horizon Therapeutics, Inc. |
4,176 | 3,945 | |||||||||||
| Inotek Pharmaceuticals Corp. |
Drug Discovery |
Preferred Stock |
1,500 | 353 | |||||||||
| Total Inotek Pharmaceuticals Corp. |
1,500 | 353 | |||||||||||
| Merrimack Pharmaceuticals, Inc. |
Drug Discovery |
Preferred Stock Warrants |
155 | 64 | |||||||||
| Preferred Stock |
2,000 | 2,459 | |||||||||||
| Total Merrimack Pharmaceuticals, Inc. |
2,155 | 2,523 | |||||||||||
See Notes to Consolidated Financial Statements (unaudited)
4
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Paratek Pharmaceuticals, Inc. |
Drug Discovery | Preferred Stock Warrants |
$ | 137 | $ | 117 | |||||||
| Preferred Stock |
1,000 | 1,000 | |||||||||||
| Total Paratek Pharmaceuticals, Inc. |
1,137 | 1,117 | |||||||||||
| PolyMedix, Inc. |
Drug Discovery | Senior Debt Matures September 2013 Interest rate Prime + 7.1% |
$ | 10,000 | 9,679 | 9,679 | |||||||
| Preferred Stock Warrants |
321 | 321 | |||||||||||
| Total PolyMedix, Inc. |
10,000 | 10,000 | |||||||||||
| Portola Pharmaceuticals, Inc. |
Drug Discovery | Senior Debt Matures April 2011 Interest rate Prime + 2.16% |
$ | 5,416 | 5,416 | 5,416 | |||||||
| Preferred Stock Warrants |
152 | 370 | |||||||||||
| Total Portola Pharmaceuticals, Inc. |
5,568 | 5,786 | |||||||||||
| Total Drug Discovery (13.47%)* |
52,704 | 49,349 | |||||||||||
| Affinity Videonet, Inc. (4) |
Communications & Networking | Senior Debt Matures June 2012 Interest rate Prime + 8.75% or Floor rate of 12.00% |
$ | 2,117 | 2,139 | 2,139 | |||||||
| Senior Debt |
|||||||||||||
| Matures June 2012 Interest rate Prime + 14.75% or Floor rate of 18.00% |
$ | 2,000 | 2,063 | 2,063 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures June 2012 Interest rate Prime + 9.75% or Floor rate of 13.00% |
$ | 500 | 500 | 500 | |||||||||
| Preferred Stock Warrants |
101 | 99 | |||||||||||
| Total Affinity Videonet, Inc. |
4,803 | 4,801 | |||||||||||
| E-band Communications, Inc. (6) |
Communications & Networking | Preferred Stock |
2,880 | 2,222 | |||||||||
| Total E-Band Communications, Inc. |
2,880 | 2,222 | |||||||||||
| IKANO Communications, Inc. |
Communications & Networking | Senior Debt Matures August 2011 Interest rate 12.00% |
$ | 5,156 | 5,156 | 5,156 | |||||||
| Preferred Stock Warrants |
45 | — | |||||||||||
| Preferred Stock Warrants |
72 | — | |||||||||||
| Total IKANO Communications, Inc. |
5,273 | 5,156 | |||||||||||
| Neonova Holding Company |
Communications & Networking | Preferred Stock Warrants |
94 | 44 | |||||||||
| Preferred Stock |
250 | 247 | |||||||||||
| Total Neonova Holding Company |
344 | 291 | |||||||||||
See Notes to Consolidated Financial Statements
5
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Peerless Network, Inc. |
Communications & Networking | Preferred Stock Warrants |
$ | 95 | $ | — | |||||||
| Preferred Stock |
1,000 | 820 | |||||||||||
| Total Peerless Network, Inc. |
1,095 | 820 | |||||||||||
| Ping Identity Corporation |
Communications & Networking | Preferred Stock Warrants |
52 | 199 | |||||||||
| Total Ping Identity Corporation |
52 | 199 | |||||||||||
| Purcell Systems, Inc. |
Communications & Networking | Preferred Stock Warrants |
123 | 402 | |||||||||
| Total Purcell Systems, Inc. |
123 | 402 | |||||||||||
| Seven Networks, Inc. |
Communications & Networking | Preferred Stock Warrants |
174 | 2 | |||||||||
| Total Seven Networks, Inc. |
174 | 2 | |||||||||||
| Stoke, Inc. |
Communications & Networking | Preferred Stock Warrants |
53 | 60 | |||||||||
| Total Stoke, Inc. |
53 | 60 | |||||||||||
| Tectura Corporation |
Communications & Networking | Senior Debt Matures September 2010 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 1,250 | 1,250 | 1,250 | |||||||
| Revolving Line of Credit Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 9,908 | 10,367 | 10,367 | |||||||||
| Revolving Line of Credit Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 5,000 | 5,220 | 5,220 | |||||||||
| Preferred Stock Warrants |
51 | — | |||||||||||
| Total Tectura Corporation |
16,888 | 16,837 | |||||||||||
| Total Communications & Networking (8.40%)* |
31,685 | 30,790 | |||||||||||
| Atrenta, Inc. |
Software |
Preferred Stock Warrants |
102 | 225 | |||||||||
| Preferred Stock Warrants |
34 | 74 | |||||||||||
| Preferred Stock Warrants |
95 | 174 | |||||||||||
| Preferred Stock |
250 | 375 | |||||||||||
| Total Atrenta, Inc. |
481 | 848 | |||||||||||
| Blurb, Inc. |
Software |
Senior Debt Matures June 2011 Interest rate Prime + 3.50% or Floor rate of 8.5% |
$ | 2,804 | 2,737 | 2,737 | |||||||
| Preferred Stock Warrants |
25 | 308 | |||||||||||
| Preferred Stock Warrants |
299 | 190 | |||||||||||
| Total Blurb, Inc. |
3,061 | 3,235 | |||||||||||
See Notes to Consolidated Financial Statements
6
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Braxton Technologies, LLC. |
Software |
Preferred Stock Warrants |
$ | 188 | $ | 119 | |||||||
| Total Braxton Technologies, LLC. |
188 | 119 | |||||||||||
| Bullhorn, Inc. |
Software |
Preferred Stock Warrants |
43 | 247 | |||||||||
| Total Bullhorn, Inc. |
43 | 247 | |||||||||||
| Clickfox, Inc. |
Software |
Senior Debt |
|||||||||||
| Matures September 2011 Interest rate Prime + 5.00% or Floor rate of 10.25% |
$ | 3,259 | 3,213 | 3,213 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures July 2010 Interest rate Prime + 8.50% or Floor rate of 13.5% |
$ | 2,000 | 1,996 | 1,996 | |||||||||
| Preferred Stock Warrants |
177 | 299 | |||||||||||
| Total Clickfox, Inc. |
5,386 | 5,508 | |||||||||||
| Forescout Technologies, Inc. |
Software |
Preferred Stock Warrants |
99 | 127 | |||||||||
| Total Forescout Technologies, Inc. |
99 | 127 | |||||||||||
| GameLogic, Inc. |
Software |
Preferred Stock Warrants |
92 | 2 | |||||||||
| Total GameLogic, Inc. |
92 | 2 | |||||||||||
| 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 | 44 | |||||||||
| Total HighRoads, Inc. |
44 | 44 | |||||||||||
| Infologix, Inc. (4),(7) |
Software |
Senior Debt |
|||||||||||
| Matures November 2013 Interest rate 12.00% |
$ | 5,500 | 5,500 | 5,500 | |||||||||
| Convertible Senior Debt |
|||||||||||||
| Matures November 2014 Interest rate 12.00% |
$ | 5,000 | 5,035 | 9,563 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures May 2011 Interest rate 12.00% |
$ | 8,909 | 8,909 | 8,909 | |||||||||
| Senior Debt |
|||||||||||||
| Matures December 2010 Interest rate 18.00% |
$ | 2,250 | 2,250 | 2,250 | |||||||||
| Preferred Stock Warrants |
725 | 1,073 | |||||||||||
| Common Stock |
5,036 | 5,414 | |||||||||||
| Total Infologix, Inc. |
27,455 | 32,709 | |||||||||||
See Notes to Consolidated Financial Statements
7
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| PSS Systems, Inc. |
Software |
Preferred Stock Warrants |
$ | 51 | $ | 94 | |||||||
| Total PSS Systems, Inc. |
51 | 94 | |||||||||||
| Rockyou, Inc. |
Software |
Preferred Stock Warrants |
117 | 132 | |||||||||
| Total Rockyou, Inc. |
117 | 132 | |||||||||||
| Sportvision, Inc. |
Software |
Preferred Stock Warrants |
39 | 36 | |||||||||
| Total Sportvision, Inc. |
39 | 36 | |||||||||||
| WildTangent, Inc. |
Software |
Preferred Stock Warrants |
239 | 46 | |||||||||
| Total WildTangent, Inc. |
239 | 46 | |||||||||||
| Total Software (15.87%)* |
52,295 | 58,147 | |||||||||||
| Luminus Devices, Inc. |
Electronics & Computer Hardware |
Senior Debt Matures December 2011 Interest rate 11.875% |
$ | 1,290 | 1,290 | 1,290 | |||||||
| Preferred Stock Warrants |
183 | — | |||||||||||
| Preferred Stock Warrants |
84 | — | |||||||||||
| Preferred Stock Warrants |
334 | — | |||||||||||
| Total Luminus Devices, Inc. |
1,891 | 1,290 | |||||||||||
| Maxvision Holding, LLC. |
Electronics & Computer Hardware |
Senior Debt Matures October 2012 Interest rate Prime + 5.50% |
$ | 5,000 | 5,255 | 5,255 | |||||||
| Senior Debt |
|||||||||||||
| Matures April 2012 Interest rate Prime + 2.25% |
$ | 4,159 | 4,159 | 4,159 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures April 2012 Interest rate Prime + 2.25% |
$ | 2,500 | 2,580 | 2,580 | |||||||||
| Common Stock |
81 | 170 | |||||||||||
| Total Maxvision Holding, LLC |
12,075 | 12,164 | |||||||||||
| Shocking Technologies, Inc. |
Electronics & Computer Hardware |
Senior Debt Matures December 2010 Interest rate Prime + 2.50% |
$ | 1,414 | 1,409 | 1,409 | |||||||
| Preferred Stock Warrants |
63 | 108 | |||||||||||
| Total Shocking Technologies, Inc. |
1,472 | 1,517 | |||||||||||
See Notes to Consolidated Financial Statements
8
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Spatial Photonics, Inc. |
Electronics & Computer Hardware | Senior Debt |
|||||||||||
| Matures April 2011 Interest rate 10.07% |
$ | 1,651 | $ | 1,635 | $ | 1,635 | |||||||
| Senior Debt |
|||||||||||||
| Mature April 2011 Interest rate 9.22% |
$ | 164 | 164 | 165 | |||||||||
| Preferred Stock Warrants |
130 | — | |||||||||||
| Preferred Stock |
500 | 129 | |||||||||||
| Total Spatial Photonics Inc. |
2,429 | 1,929 | |||||||||||
| VeriWave, Inc. |
Electronics & Computer Hardware | Preferred Stock Warrants |
54 | — | |||||||||
| Preferred Stock Warrants |
46 | — | |||||||||||
| Total VeriWave, Inc. |
100 | — | |||||||||||
| Total Electronics & Computer Hardware (4.61%)* |
17,967 | 16,900 | |||||||||||
| Aegerion Pharmaceuticals, Inc. (4) |
Specialty Pharmaceuticals |
Senior Debt Matures September 2011 Interest rate Prime + 2.50% or Floor rate of 11.00% |
$ | 4,763 | 4,763 | 4,763 | |||||||
| Convertible Senior Debt |
|||||||||||||
| Matures December 2010 |
$ | 340 | 340 | 340 | |||||||||
| Preferred Stock Warrants |
69 | 142 | |||||||||||
| Preferred Stock |
1,000 | 710 | |||||||||||
| Total Aegerion Pharmaceuticals, Inc. |
6,172 | 5,955 | |||||||||||
| QuatRx Pharmaceuticals Company |
Specialty Pharmaceuticals |
Senior Debt Matures October 2011 Interest rate Prime + 8.90% or Floor rate of 12.15% |
$ | 14,306 | 14,212 | 14,212 | |||||||
| Convertible Senior Debt |
|||||||||||||
| Matures March 2012 |
$ | 1,888 | 1,888 | 2,861 | |||||||||
| Preferred Stock Warrants |
220 | — | |||||||||||
| Preferred Stock Warrants |
308 | — | |||||||||||
| Preferred Stock |
750 | — | |||||||||||
| Total Quatrx Pharmaceuticals Company |
17,378 | 17,073 | |||||||||||
| Total Specialty Pharmaceuticals (6.28%)* |
23,550 | 23,028 | |||||||||||
| 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 | 6,119 | 6,119 | |||||||
| Preferred Stock Warrants |
321 | 85 | |||||||||||
| Total Annie's, Inc. |
6,440 | 6,204 | |||||||||||
See Notes to Consolidated Financial Statements
9
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| IPA Holdings, LLC. (4) |
Consumer & Business Products | Senior Debt Matures November 2012 Interest rate Prime + 8.25% or Floor rate of 12.5% |
$ | 9,250 | $ | 9,442 | $ | 9,442 | |||||
| Senior Debt |
|||||||||||||
| Matures May 2013 Interest rate Prime + 11.25% or Floor rate of 15.5% |
$ | 6,500 | 6,709 | 6,709 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures November 2012 Interest rate Prime + 7.75% or Floor rate of 12.00% |
$ | 1,356 | 1,356 | 1,356 | |||||||||
| Preferred Stock Warrants |
275 | — | |||||||||||
| Common Stock |
500 | 120 | |||||||||||
| Total IPA Holding, LLC. |
18,282 | 17,627 | |||||||||||
| Market Force Information, Inc. |
Consumer & Business Products | Preferred Stock Warrants |
24 | 42 | |||||||||
| Preferred Stock |
500 | 500 | |||||||||||
| Total Market Force Information, Inc. |
524 | 542 | |||||||||||
| OnTech Operations, Inc. |
Consumer & Business Products | Senior Debt Matures June 2010 Interest rate 16.00% |
$ | 106 | 106 | — | |||||||
| Preferred Stock Warrants |
452 | — | |||||||||||
| Preferred Stock Warrants |
218 | — | |||||||||||
| Preferred Stock |
1,000 | — | |||||||||||
| Total OnTech Operations, Inc. |
1,776 | — | |||||||||||
| Velocity Technology Solutions |
Consumer & Business Products | Senior Debt Matures February 2015 Interest rate LIBOR + 8% |
$ | 16,667 | 16,667 | 16,667 | |||||||
| Senior Debt |
|||||||||||||
| Matures February 2015 Interest rate LIBOR + 8% |
$ | 8,333 | 8,339 | 8,339 | |||||||||
| Total Velocity Technology Solutions |
25,006 | 25,006 | |||||||||||
| Wageworks, Inc. |
Consumer & Business Products | Preferred Stock Warrants |
252 | 1,371 | |||||||||
| Preferred Stock |
250 | 368 | |||||||||||
| Total Wageworks, Inc. |
502 | 1,739 | |||||||||||
| Total Consumer & Business Products (13.95%)* |
52,530 | 51,118 | |||||||||||
| Enpirion, Inc. |
Semiconductors | Senior Debt |
|||||||||||
| Matures August 2011 Interest rate Prime + 2.00% or Floor rate of 7.625% |
$ | 4,341 | 4,313 | 4,313 | |||||||||
| Preferred Stock Warrants |
157 | 0 | |||||||||||
| Total Enpirion, Inc. |
4,470 | 4,313 | |||||||||||
See Notes to Consolidated Financial Statements
10
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| iWatt Inc. |
Semiconductors |
Preferred Stock Warrants |
$ | 46 | $ | — | |||||||
| Preferred Stock Warrants |
51 | — | |||||||||||
| Preferred Stock Warrants |
73 | — | |||||||||||
| Preferred Stock Warrants |
458 | — | |||||||||||
| Preferred Stock |
490 | 950 | |||||||||||
| Total iWatt Inc. |
1,118 | 950 | |||||||||||
| NEXX Systems, Inc. (4) |
Semiconductors |
Revolving Line of Credit |
|||||||||||
| Matures June 2010 Interest rate Prime + 8.00% or Floor rate of 13.25% |
$ | 3,000 | 2,923 | 2,923 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures June 2010 Interest rate Prime + 8.00% or Floor rate of 17.50% |
$ | 2,500 | 2,500 | 2,500 | |||||||||
| Preferred Stock Warrants |
297 | 489 | |||||||||||
| Preferred Stock |
277 | 733 | |||||||||||
| Total NEXX Systems, Inc. |
5,997 | 6,645 | |||||||||||
| Quartics, Inc. |
Semiconductors |
Senior Debt |
|||||||||||
| Matures May 2010 Interest rate 10.00% |
$ | 55 | 55 | 55 | |||||||||
| Preferred Stock Warrants |
53 | — | |||||||||||
| Total Quartics, Inc. |
108 | 55 | |||||||||||
| Solarflare Communications, Inc. |
Semiconductors |
Senior Debt |
|||||||||||
| Matures August 2010 Interest rate 11.75% |
$ | 125 | 116 | 116 | |||||||||
| Preferred Stock Warrants |
83 | — | |||||||||||
| Common Stock |
641 | — | |||||||||||
| Total Solarflare Communications, Inc. |
840 | 116 | |||||||||||
| Total Semiconductors (3.30%)* |
12,533 | 12,079 | |||||||||||
| Labopharm USA, Inc. (5) |
Drug Delivery |
Senior Debt |
|||||||||||
| Matures June 2012 Interest rate 10.95% |
$ | 20,000 | 19,765 | 19,765 | |||||||||
| Common Stock Warrants |
635 | 710 | |||||||||||
| Total Labopharm USA, Inc. |
20,400 | 20,475 | |||||||||||
| Transcept Pharmaceuticals, Inc. |
Drug Delivery |
Common Stock Warrants |
36 | 52 | |||||||||
| Common Stock Warrants |
51 | 45 | |||||||||||
| Common Stock |
500 | 331 | |||||||||||
| Total Transcept Pharmaceuticals, Inc. |
587 | 428 | |||||||||||
| Total Drug Delivery (5.70%)* |
20,987 | 20,903 | |||||||||||
See Notes to Consolidated Financial Statements
11
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| BARRX Medical, Inc. |
Therapeutic |
Senior Debt |
|||||||||||
| Mature December 2011 Interest rate 11.00% |
$ | 4,861 | $ | 4,855 | $ | 4,855 | |||||||
| Revolving Line of Credit |
|||||||||||||
| Matures May 2010 Interest rate 10.00% |
$ | 1,000 | 1,000 | 1,000 | |||||||||
| Preferred Stock Warrants |
76 | 86 | |||||||||||
| Preferred Stock |
1,500 | 2,318 | |||||||||||
| Total BARRX Medical, Inc. |
7,431 | 8,259 | |||||||||||
| EKOS Corporation |
Therapeutic |
Senior Debt |
|||||||||||
| Matures November 2010 Interest rate Prime + 2.00% |
$ | 1,959 | 1,932 | 1,932 | |||||||||
| Preferred Stock Warrants |
174 | — | |||||||||||
| Preferred Stock Warrants |
153 | — | |||||||||||
| Total EKOS Corporation |
2,259 | 1,932 | |||||||||||
| Gelesis, Inc. (8) |
Therapeutic |
Senior Debt |
|||||||||||
| Matures May 2012 Interest rate Prime + 7.5% or Floor rate of 10.75% |
$ | 2,847 | 2,820 | — | |||||||||
| Preferred Stock Warrants |
58 | — | |||||||||||
| Total Gelesis, Inc. |
2,878 | — | |||||||||||
| Gynesonics, Inc. |
Therapeutic |
Convertible Subordinated Debt |
|||||||||||
| Matures July 2010 Interest rate 8.00% |
$ | 51 | 51 | 51 | |||||||||
| Preferred Stock Warrants |
17 | — | |||||||||||
| Preferred Stock |
250 | 250 | |||||||||||
| Total Gynesonics, Inc. |
318 | 301 | |||||||||||
| Light Science Oncology, Inc. |
Therapeutic |
Preferred Stock Warrants |
99 | 26 | |||||||||
| Total Light Science Oncology, Inc. |
99 | 26 | |||||||||||
| Novasys Medical, Inc. |
Therapeutic |
Preferred Stock Warrants |
71 | — | |||||||||
| Preferred Stock Warrants |
54 | — | |||||||||||
| Preferred Stock |
1,000 | 1,170 | |||||||||||
| Total Novasys Medical, Inc. |
1,125 | 1,170 | |||||||||||
| Pacific Child & Family Associates, LLC |
Therapeutic |
Senior Debt |
|||||||||||
| Matures January 2015 Interest rate 8.0% |
$ | 6,750 | 6,750 | 6,750 | |||||||||
| Senior Debt |
|||||||||||||
| Matures January 2015 Interest rate 10.50% |
$ | 5,900 | 5,928 | 5,928 | |||||||||
| Total Pacific Child & Family Associates, LLC |
12,678 | 12,678 | |||||||||||
| Total Therapeutic (6.65%)* |
26,788 | 24,366 | |||||||||||
See Notes to Consolidated Financial Statements
12
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Cozi Group, Inc. |
Internet Consumer & Business Services | Preferred Stock Warrants |
$ | 147 | $ | — | |||||||
| Preferred Stock |
177 | 7 | |||||||||||
| Total Cozi Group, Inc. |
324 | 7 | |||||||||||
| Invoke Solutions, Inc. |
Internet Consumer & Business Services | Preferred Stock Warrants |
56 | 117 | |||||||||
| Preferred Stock Warrants |
26 | 26 | |||||||||||
| Total Invoke Solutions, Inc. |
82 | 143 | |||||||||||
| Prism Education Group Inc. |
Internet Consumer & Business Services | Senior Debt Matures December 2010 Interest rate 11.25% |
$ | 609 | 601 | 601 | |||||||
| Preferred Stock Warrants |
43 | 98 | |||||||||||
| Total Prism Education Group Inc. |
644 | 699 | |||||||||||
| RazorGator Interactive Group, Inc. (4) |
Internet Consumer & Business Services | Revolving Line of Credit Matures October 2011 Interest rate Prime + 9.50% or Floor rate of 14.00% |
$ | 6,158 | 6,158 | 6,158 | |||||||
| Preferred Stock Warrants |
13 | 582 | |||||||||||
| Preferred Stock Warrants |
28 | 45 | |||||||||||
| Preferred Stock |
1,000 | 452 | |||||||||||
| Total RazorGator Interactive Group, Inc. |
7,199 | 7,237 | |||||||||||
| Spa Chakra Acquisition Corporation (7) |
Internet Consumer & Business Services | Revolving Line of Credit Matures April 2011 Interest rate Prime + 9.00% or Floor rate of 12.50% |
$ | 2,314 | 2,314 | 2,314 | |||||||
| Preferred Stock |
15,037 | 10,000 | |||||||||||
| Total Spa Chakra Acquisition Corporation |
17,351 | 12,314 | |||||||||||
| Total Internet Consumer & Business Services (5.57%)* |
25,600 | 20,400 | |||||||||||
| Lilliputian Systems, Inc. |
Energy | Preferred Stock Warrants |
107 | 92 | |||||||||
| Common Stock Warrants |
48 | — | |||||||||||
| Total Lilliputian Systems, Inc. |
155 | 92 | |||||||||||
| Total Energy (0.03%)* |
155 | 92 | |||||||||||
| Box.net, Inc. |
Information Services | Senior Debt |
|||||||||||
| Matures May 2011 Interest rate Prime + 1.50% |
$ | 563 | 552 | 552 | |||||||||
| Senior Debt |
|||||||||||||
| Matures September 2011 Interest rate Prime + 0.50% |
$ | 248 | 248 | 248 | |||||||||
| Preferred Stock Warrants | 73 | 195 | |||||||||||
| Total Box.net, Inc. | 873 | 995 | |||||||||||
See Notes to Consolidated Financial Statements
13
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Buzznet, Inc. | Information Services | Preferred Stock Warrants | $ | 9 | $ | 1 | |||||||
| Preferred Stock | 250 | 74 | |||||||||||
| Total Buzznet, Inc. | 259 | 75 | |||||||||||
| XL Education Corp. | Information Services | Common Stock | 880 | 880 | |||||||||
| Total XL Education Corp. | 880 | 880 | |||||||||||
| hi5 Networks, Inc. | Information Services | Senior Debt | |||||||||||
| Matures December 2010 Interest rate Prime + 2.5% |
$ | 1,182 | 1,182 | 1,182 | |||||||||
| Senior Debt | |||||||||||||
| Matures June 2011 Interest rate Prime + 0.5% |
$ | 2,856 | 2,825 | 2,825 | |||||||||
| Preferred Stock Warrants | 212 | — | |||||||||||
| Total hi5 Networks, Inc. | 4,219 | 4,007 | |||||||||||
| Jab Wireless, Inc. | Information Services | Senior Debt | |||||||||||
| Matures November 2012 Interest rate Prime + 3.50% or Floor rate of 9.5% |
$ | 14,375 | 14,603 | 14,603 | |||||||||
| Revolving Line of Credit | |||||||||||||
| Matures October 2010 Interest rate Prime + 3.50% or Floor rate of 9.5% |
$ | 2,500 | 2,517 | 2,517 | |||||||||
| Preferred Stock Warrants | 265 | 158 | |||||||||||
| Total Jab Wireless, Inc. | 17,385 | 17,278 | |||||||||||
| Solutionary, Inc. | Information Services | Preferred Stock Warrants | 94 | — | |||||||||
| Preferred Stock Warrants | 2 | — | |||||||||||
| Preferred Stock | 250 | 50 | |||||||||||
| Total Solutionary, Inc. | 346 | 50 | |||||||||||
| Ancestry.com, Inc. | Information Services | Common Stock | 452 | 1,348 | |||||||||
| Total Ancestry.com | 452 | 1,348 | |||||||||||
| Intelligent Beauty, Inc. | Senior Debt | ||||||||||||
| Matures March 2013 Interest rate Prime + 8.0% or Floor rate of 11.25% |
$ | 6,000 | 6,000 | 6,000 | |||||||||
| Total Intelligent Beauty, Inc. | 6,000 | 6,000 | |||||||||||
| Good Technologies, Inc. | Information Services | Common Stock | 603 | 603 | |||||||||
| Total Good Technologies, Inc. | 603 | 603 | |||||||||||
See Notes to Consolidated Financial Statements
14
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Coveroo, Inc. | Information Services | Preferred Stock Warrants | $ | 7 | $ | — | |||||||
| Total Coveroo, Inc. | 7 | — | |||||||||||
| Zeta Interactive Corporation | Information Services | Senior Debt | |||||||||||
| Matures November 2012 Interest rate 10.0% |
$ | 4,731 | 4,378 | 4,378 | |||||||||
| Senior Debt | |||||||||||||
| Matures November 2012 Interest rate 12.0% |
$ | 6,025 | 6,261 | 6,261 | |||||||||
| Preferred Stock Warrants | 172 | — | |||||||||||
| Preferred Stock | 500 | 310 | |||||||||||
| Total Zeta Interactive Corporation | 11,311 | 10,949 | |||||||||||
| Total Information Services (11.51%)* | 42,335 | 42,185 | |||||||||||
| Novadaq Technologies, Inc. (5) | Diagnostic | Common Stock | 1,474 | 497 | |||||||||
| Total Novadaq Technologies, Inc. | 1,474 | 497 | |||||||||||
| Optiscan Biomedical, Corp. | Diagnostic | Senior Debt | |||||||||||
| Matures June 2011 Interest rate 10.25% |
$ | 6,496 | 6,372 | 6,372 | |||||||||
| Preferred Stock Warrants | 761 | 168 | |||||||||||
| Preferred Stock | 3,000 | 3,000 | |||||||||||
| Total Optiscan Biomedical, Corp. | 10,133 | 9,540 | |||||||||||
| Total Diagnostic (2.74%)* | 11,607 | 10,037 | |||||||||||
| Kamada, LTD. (5) | Biotechnology Tools | Preferred Stock Warrants | 159 | 310 | |||||||||
| Common Stock | 752 | 1,697 | |||||||||||
| Total Kamada, LTD. | 911 | 2,007 | |||||||||||
| Labcyte, Inc. | Biotechnology Tools | Senior Debt Matures November 2012 Interest rate Prime + 8.6% or Floor rate of 11.85% |
$ | 3,500 | 3,347 | 3,347 | |||||||
| Common Stock Warrants | 192 | — | |||||||||||
| Total Labcyte, Inc. |
3,539 | 3,347 | |||||||||||
| NuGEN Technologies, Inc. |
Biotechnology Tools | Preferred Stock Warrants | 45 | 298 | |||||||||
| Preferred Stock Warrants | 33 | 24 | |||||||||||
| Preferred Stock | 500 | 517 | |||||||||||
| Total NuGEN Technologies, Inc. | 578 | 839 | |||||||||||
See Notes to Consolidated Financial Statements
15
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
March 31, 2010
(unaudited)
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Solace Pharmaceuticals, Inc. (4) | Biotechnology Tools | Senior Debt Matures August 2012 Interest rate Prime + 4.25% or Floor rate of 9.85% |
$ | 2,386 | $ | 2,351 | $ | 2,351 | |||||
| Senior Debt | |||||||||||||
| Matures August 2012 Interest rate 8.0% |
$ | 250 | 250 | 250 | |||||||||
| Preferred Stock Warrants | 42 | — | |||||||||||
| Preferred Stock Warrants | 54 | — | |||||||||||
| Total Solace Pharmaceuticals, Inc. | 2,697 | 2,601 | |||||||||||
| Total Biotechnology Tools (2.40%)* | 7,725 | 8,794 | |||||||||||
| Crux Biomedical, Inc. | Surgical Devices | Preferred Stock Warrants | 37 | — | |||||||||
| Preferred Stock | 250 | 26 | |||||||||||
| Total Crux Biomedical, Inc. | 287 | 26 | |||||||||||
| Transmedics, Inc. | Surgical Devices | Senior Debt | |||||||||||
| Matures February 2014 Interest rate Prime + 9.70% or Floor rate of 12.95% |
$ | 8,375 | 8,288 | 8,288 | |||||||||
| Preferred Stock Warrants | 225 | — | |||||||||||
| Preferred Stock | 1,100 | 1,100 | |||||||||||
| Total Transmedics, Inc. | 9,613 | 9,388 | |||||||||||
| Total Surgical Devices (2.57%)* | 9,900 | 9,414 | |||||||||||
| Glam Media, Inc. | Media/Content/Info | Preferred Stock Warrants | 483 | 283 | |||||||||
| Total Glam Media, Inc. | 483 | 283 | |||||||||||
| Everyday Health (Waterfront Media) |
Media/Content/Info | Preferred Stock Warrants | 60 | 588 | |||||||||
| Preferred Stock | 1,000 | 1,500 | |||||||||||
| Total Everyday Health | 1,060 | 2,088 | |||||||||||
| Total Media/Content/Info (0.65%)* | 1,543 | 2,371 | |||||||||||
| Total Investments | 389,904 | 379,973 | |||||||||||
| * | 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 $14,747, $27,408 and $12,661, respectively. The tax cost of investments is $389,558. |
| (3) | Except for warrants in seven publicly traded companies and common stock in five publicly traded companies, all investments are restricted at March 31, 2010. 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. |
| (7) | Control investment that is defined under the Investment Company Act of 1940 as companies in which HTGC owners as least 25% or more of the voting securities of such company or has greater than 50% representation on its board. |
| (8) | Debt is on non-accrual status at March 31, 2010, and is therefore considered non-income producing. |
See Notes to Consolidated Financial Statements
16
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Acceleron Pharmaceuticals, Inc. |
Drug Discovery | Preferred Stock Warrants |
$ | 69 | $ | 1,157 | |||||||
| Preferred Stock Warrants |
35 | 215 | |||||||||||
| Preferred Stock |
1,243 | 2,508 | |||||||||||
| Total Acceleron Pharmaceuticals, Inc. |
1,347 | 3,880 | |||||||||||
| Aveo Pharmaceuticals, Inc. |
Drug Discovery | Senior Debt |
$ | 14,564 | 14,509 | 14,509 | |||||||
| Preferred Stock Warrants |
190 | 725 | |||||||||||
| Preferred Stock Warrants |
104 | 219 | |||||||||||
| Preferred Stock Warrants |
24 | 76 | |||||||||||
| Total Aveo Pharmaceuticals, Inc. |
14,827 | 15,529 | |||||||||||
| Dicerna Pharmaceuticals, Inc. |
Drug Discovery | Senior Debt Floor rate of 12.95% |
$ | 6,603 | 6,434 | 6,434 | |||||||
| Preferred Stock Warrants |
206 | 128 | |||||||||||
| Preferred Stock Warrants |
31 | 22 | |||||||||||
| Total Dicerna Pharmaceuticals, Inc. |
6,671 | 6,584 | |||||||||||
| Elixir Pharmaceuticals, Inc. |
Drug Discovery | Senior Debt |
|||||||||||
| Matures October 2011 Floor rate of 12.5% |
$ | 8,067 | 8,067 | 8,067 | |||||||||
| Preferred Stock Warrants |
217 | — | |||||||||||
| Total Elixir Pharmaceuticals, Inc. |
8,284 | 8,067 | |||||||||||
| EpiCept Corporation |
Drug Discovery | Common Stock Warrants |
8 | 38 | |||||||||
| Common Stock Warrants |
40 | 201 | |||||||||||
| Total EpiCept Corporation |
48 | 239 | |||||||||||
| Horizon Therapeutics, Inc. |
Drug Discovery | Senior Debt |
|||||||||||
| Matures July 2011 |
$ | 4,699 | 4,638 | 4,638 | |||||||||
| Preferred Stock Warrants |
231 | — | |||||||||||
| Total Horizon Therapeutics, Inc. |
4,869 | 4,638 | |||||||||||
| Inotek Pharmaceuticals Corp. |
Drug Discovery | Preferred Stock |
1,500 | 353 | |||||||||
| Total Inotek Pharmaceuticals Corp. |
1,500 | 353 | |||||||||||
| Merrimack Pharmaceuticals, Inc. |
Drug Discovery | Preferred Stock Warrants |
155 | 269 | |||||||||
| Preferred Stock |
2,000 | 1,699 | |||||||||||
| Total Merrimack Pharmaceuticals, Inc. |
2,155 | 1,968 | |||||||||||
| Paratek Pharmaceuticals, Inc. |
Drug Discovery | Preferred Stock Warrants |
137 | 55 | |||||||||
| Preferred Stock |
1,000 | 1,000 | |||||||||||
| Total Paratek Pharmaceuticals, Inc. |
1,137 | 1,055 | |||||||||||
See Notes to Consolidated Financial Statements
17
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Portola Pharmaceuticals, Inc. |
Drug Discovery |
Senior Debt |
$ | 6,666 | $ | 6,667 | $ | 6,671 | |||||
| Preferred Stock Warrants |
152 | 288 | |||||||||||
| Total Portola Pharmaceuticals, Inc. |
6,819 | 6,959 | |||||||||||
| Recoly, N.V.(5) |
Drug Discovery | Senior Debt |
$ | 2,576 | 2,576 | 2,576 | |||||||
| Total Recoly, N.V. |
2,576 | 2,576 | |||||||||||
| Total Drug Discovery (14.15%)* |
50,233 | 51,848 | |||||||||||
| Affinity Videonet, Inc.(4) |
Communications & Networking |
Senior Debt Matures June 2012 Interest rate Prime + 8.75% or Floor rate of 12.00% |
$ | 2,318 | 2,326 | 2,326 | |||||||
| Senior Debt |
|||||||||||||
| Matures June 2012 Interest rate Prime + 14.75% or |
$ | 2,000 | 2,052 | 2,052 | |||||||||
| Revolving Line of Credit |
|||||||||||||
| Matures June 2012 Interest rate Prime + 9.75% or |
$ | 500 | 500 | 500 | |||||||||
| Preferred Stock Warrants |
102 | 83 | |||||||||||
| Total Affinity Videonet, Inc. |
4,980 | 4,961 | |||||||||||
| E-band Communications, Inc.(6) |
Communications & Networking | Preferred Stock |
2,880 | 2,274 | |||||||||
| Total E-Band Communications, Inc. |
2,880 | 2,274 | |||||||||||
| IKANO Communications, Inc. |
Communications & Networking | Senior Debt |
$ | 6,472 | 6,472 | 6,472 | |||||||
| Preferred Stock Warrants |
45 | — | |||||||||||
| Preferred Stock Warrants |
72 | — | |||||||||||
| Total IKANO Communications, Inc. |
6,589 | 6,472 | |||||||||||
| Neonova Holding Company |
Communications & Networking | Preferred Stock Warrants |
94 | 42 | |||||||||
| Preferred Stock |
250 | 247 | |||||||||||
| Total Neonova Holding Company |
344 | 289 | |||||||||||
| Peerless Network, Inc. |
Communications & Networking | Preferred Stock Warrants |
95 | — | |||||||||
| Preferred Stock |
1,000 | 800 | |||||||||||
| Total Peerless Network, Inc. |
1,095 | 800 | |||||||||||
| Ping Identity Corporation |
Communications & Networking | Preferred Stock Warrants |
52 | 168 | |||||||||
| Total Ping Identity Corporation |
52 | 168 | |||||||||||
See Notes to Consolidated Financial Statements
18
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Purcell Systems, Inc. |
Communications & Networking | Preferred Stock Warrants |
$ | 123 | $ | 386 | |||||||
| Total Purcell Systems, Inc. |
123 | 386 | |||||||||||
| Rivulet Communications, Inc. (4) |
Communications & Networking | Senior Debt |
$ | 1,063 | 1,060 | 1,060 | |||||||
| Preferred Stock Warrants |
146 | — | |||||||||||
| Common Stock |
250 | — | |||||||||||
| Total Rivulet Communications, Inc. |
1,456 | 1,060 | |||||||||||
| Seven Networks, Inc. |
Communications & Networking | Preferred Stock Warrants |
174 | 11 | |||||||||
| Total Seven Networks, Inc. |
174 | 11 | |||||||||||
| Stoke, Inc. |
Communications & Networking | Preferred Stock Warrants |
53 | 81 | |||||||||
| Total Stoke, Inc. |
53 | 81 | |||||||||||
| Tectura Corporation |
Communications & Networking | Senior Debt Matures September 2010 Interest rate Prime + 10.75% or Floor rate of 14.00% |
$ | 1,875 | 1,875 | 1,875 | |||||||
| Revolving Line of Credit |
$ | 9,908 | 10,238 | 10,238 | |||||||||
| Revolving Line of Credit |
$ | 5,000 | 5,156 | 5,156 | |||||||||
| Preferred Stock Warrants |
51 | — | |||||||||||
| Total Tectura Corporation |
17,320 | 17,269 | |||||||||||
| Zayo Bandwidth, Inc. |
Communications & Networking | Senior Debt |
$ | 24,750 | 24,750 | 24,317 | |||||||
| Total Zayo Bandwith, Inc. |
24,750 | 24,317 | |||||||||||
| Total Communications & Networking (15.85%)* |
59,816 | 58,088 | |||||||||||
| Atrenta, Inc. |
Software | Preferred Stock Warrants |
102 | 99 | |||||||||
| Preferred Stock Warrants |
34 | 32 | |||||||||||
| Preferred Stock Warrants |
95 | 159 | |||||||||||
| Preferred Stock |
250 | 375 | |||||||||||
| Total Atrenta, Inc. |
481 | 665 | |||||||||||
See Notes to Consolidated Financial Statements
19
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Blurb, Inc. |
Software | Senior Debt |
$ | 3,329 | $ | 3,234 | $ | 3,234 | |||||
| Preferred Stock Warrants |
25 | 128 | |||||||||||
| Preferred Stock Warrants |
299 | 69 | |||||||||||
| Total Blurb, Inc. |
3,558 | 3,431 | |||||||||||
| Braxton Technologies, LLC. |
Software | Preferred Stock Warrants |
188 | 116 | |||||||||
| Total Braxton Technologies, LLC. |
188 | 116 | |||||||||||
| Bullhorn, Inc. |
Software | Preferred Stock Warrants |
43 | 248 | |||||||||
| Total Bullhorn, Inc. |
43 | 248 | |||||||||||
| Clickfox, Inc. |
Software | Senior Debt |
$ | 3,754 | 3,683 | 3,683 | |||||||
| Revolving Line of Credit |
|||||||||||||
| $ | 2,000 | 2,003 | 2,003 | ||||||||||
| Preferred Stock Warrants |
177 | 143 | |||||||||||
| Total Clickfox, Inc. |
5,863 | 5,829 | |||||||||||
| Forescout Technologies, Inc. |
Software | Preferred Stock Warrants |
99 | 77 | |||||||||
| Total Forescout Technologies, Inc. |
99 | 77 | |||||||||||
| GameLogic, Inc. |
Software | Preferred Stock Warrants |
92 | 1 | |||||||||
| Total GameLogic, Inc. |
92 | 1 | |||||||||||
| HighJump Acquisition, LLC. |
Software | Senior Debt |
$ | 15,000 | 15,000 | 15,000 | |||||||
| Total HighJump Acquisition, LLC. |
15,000 | 15,000 | |||||||||||
| HighRoads, Inc. |
Software | Preferred Stock Warrants |
44 | 13 | |||||||||
| Total HighRoads, Inc. |
44 | 13 | |||||||||||
| Infologix, Inc.(4)(7) |
Software |
Senior Debt |
$ | 5,500 | 5,500 | 5,500 | |||||||
| Convertible Senior Debt |
$ | 5,000 | 5,004 | 10,060 | |||||||||
| Revolving Line of Credit |
$ | 7,559 | 7,559 | 7,559 | |||||||||
| Common Stock Warrants |
760 | 1,494 | |||||||||||
| Common Stock |
5,000 | 7,571 | |||||||||||
| Total Infologix, Inc. |
23,823 | 32,184 | |||||||||||
| Intelliden, Inc. |
Software |
Preferred Stock Warrants |
18 | — | |||||||||
| Total Intelliden, Inc. |
18 | — | |||||||||||
| PSS Systems, Inc. |
Software |
Preferred Stock Warrants |
51 | 71 | |||||||||
| Total PSS Systems, Inc. |
51 | 71 | |||||||||||
| Rockyou, Inc. |
Software |
Preferred Stock Warrants |
117 | 140 | |||||||||
| Total Rockyou, Inc. |
117 | 140 | |||||||||||
See Notes to Consolidated Financial Statements
20
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Savvion, Inc.(4) |
Software |
Senior Debt |
$ | 2,117 | $ | 2,065 | $ | 2,065 | |||||
| Revolving Line of Credit Matures May 2010 Interest rate Prime + 6.75% or |
$ | 1,500 | 1,500 | 1,500 | |||||||||
| Preferred Stock Warrants |
52 | 183 | |||||||||||
| Total Savvion, Inc. |
3,617 | 3,748 | |||||||||||
| Sportvision, Inc. |
Software |
Preferred Stock Warrants |
39 | 47 | |||||||||
| Total Sportvision, Inc. |
39 | 47 | |||||||||||
| WildTangent, Inc. |
Software |
Preferred Stock Warrants |
238 | 77 | |||||||||
| Total WildTangent, Inc. |
238 | 77 | |||||||||||
| Total Software (16.82%)* |
53,272 | 61,647 | |||||||||||
| Luminus Devices, Inc. |
Electronics & Computer Hardware |
Senior Debt |
$ | 1,062 | 1,062 | 1,062 | |||||||
| Preferred Stock Warrants |
183 | — | |||||||||||
| Preferred Stock Warrants |
84 | — | |||||||||||
| Preferred Stock Warrants |
334 | — | |||||||||||
| Total Luminus Devices, Inc. |
1,663 | 1,062 | |||||||||||
| Maxvision Holding, LLC. |
Electronics & Computer Hardware |
Senior Debt |
$ | 5,000 | 5,220 | 5,220 | |||||||
| Senior Debt |
$ | 4,409 | 4,409 | 4,409 | |||||||||
| Revolving Line of Credit |
$ | 2,500 | 2,580 | 2,580 | |||||||||
| Common Stock |
81 | 170 | |||||||||||
| Total Maxvision Holding, LLC |
12,290 | 12,379 | |||||||||||
| Shocking Technologies, Inc. |
Electronics & Computer Hardware |
Senior Debt |
$ | 1,867 | 1,858 | 1,858 | |||||||
| Preferred Stock Warrants |
63 | 119 | |||||||||||
| Total Shocking Technologies, Inc. |
1,921 | 1,977 | |||||||||||
| Spatial Photonics, Inc. |
Electronics & Computer Hardware |
Senior Debt |
$ | 1,980 | 1,957 | 1,957 | |||||||
| Senior Debt |
$ | 197 | 197 | 197 | |||||||||
| Preferred Stock Warrants |
129 | — | |||||||||||
| Preferred Stock |
500 | 129 | |||||||||||
| Total Spatial Photonics Inc. |
2,783 | 2,283 | |||||||||||
See Notes to Consolidated Financial Statements
21
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| VeriWave, Inc. |
Electronics & Computer Hardware | Preferred Stock Warrants |
$ | 54 | $ | — | |||||||
| Preferred Stock Warrants |
46 | — | |||||||||||
| Total VeriWave, Inc. |
100 | — | |||||||||||
| Total Electronics & Computer Hardware (4.83%)* |
18,757 | 17,701 | |||||||||||
| Aegerion Pharmaceuticals, Inc.(4) |
Specialty Pharmaceuticals | Senior Debt |
$ | 5,481 | 5,482 | 5,482 | |||||||
| Convertible Senior Debt |
$ | 279 | 279 | 279 | |||||||||
| Preferred Stock Warrants |
69 | 253 | |||||||||||
| Preferred Stock |
1,000 | 1,019 | |||||||||||
| Total Aegerion Pharmaceuticals, Inc. |
6,830 | 7,033 | |||||||||||
| QuatRx Pharmaceuticals Company |
Specialty Pharmaceuticals | Senior Debt |
$ | 15,417 | 15,299 | 15,299 | |||||||
| Convertible Senior Debt |
$ | 1,888 | 1,888 | 2,861 | |||||||||
| Preferred Stock Warrants |
220 | — | |||||||||||
| Preferred Stock Warrants |
307 | — | |||||||||||
| Preferred Stock |
750 | — | |||||||||||
| Total QuatRx Pharmaceuticals Company |
18,464 | 18,160 | |||||||||||
| Total Specialty Pharmaceuticals (6.87%)* |
25,294 | 25,193 | |||||||||||
| Annie’s, Inc. |
Consumer & Business Products | Senior Debt - Second Lien |
$ | 6,000 | 6,060 | 6,060 | |||||||
| Preferred Stock Warrants |
321 | 113 | |||||||||||
| Total Annie’s, Inc. |
6,381 | 6,173 | |||||||||||
| IPA Holdings, LLC.(4) |
Consumer & Business Products | Senior Debt |
$ | 9,500 | 9,633 | 9,633 | |||||||
| Senior Debt |
|||||||||||||
| $ | 6,500 | 6,625 | 6,625 | ||||||||||
| Revolving Line of Credit |
|||||||||||||
| $ | 856 | 856 | 856 | ||||||||||
| Common Stock Warrants |
275 | — | |||||||||||
| Common Stock |
500 | 120 | |||||||||||
| Total IPA Holding, LLC. |
17,889 | 17,234 | |||||||||||
See Notes to Consolidated Financial Statements
22
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Market Force Information, Inc. |
Consumer & Business Products | Preferred Stock Warrants |
$ | 24 | $ | — | |||||||
| Preferred Stock |
500 | 267 | |||||||||||
| Total Market Force Information, Inc. |
524 | 267 | |||||||||||
| OnTech Operations, Inc.(8) |
Consumer & Business Products | Senior Debt |
$ | 106 | 106 | — | |||||||
| Preferred Stock Warrants |
452 | — | |||||||||||
| Preferred Stock Warrants |
218 | — | |||||||||||
| Preferred Stock |
1,000 | — | |||||||||||
| Total OnTech Operations, Inc. |
1,776 | — | |||||||||||
| Wageworks, Inc. |
Consumer & Business Products | Preferred Stock Warrants |
252 | 1,425 | |||||||||
| Preferred Stock |
250 | 368 | |||||||||||
| Total Wageworks, Inc. |
502 | 1,793 | |||||||||||
| — | |||||||||||||
| Total Consumer & Business Products (6.95%)* |
27,072 | 25,467 | |||||||||||
| Custom One Design, Inc.(8) |
Semiconductors |
Senior Debt |
$ | 426 | 422 | 122 | |||||||
| Common Stock Warrants |
18 | — | |||||||||||
| Total Custom One Design, Inc. |
440 | 122 | |||||||||||
| Enpirion, Inc. |
Semiconductors |
Senior Debt |
$ | 5,094 | 5,055 | 5,053 | |||||||
| Preferred Stock Warrants |
157 | 2 | |||||||||||
| Total Enpirion, Inc. |
5,212 | 5,055 | |||||||||||
| iWatt Inc. |
Semiconductors |
Preferred Stock Warrants |
628 | — | |||||||||
| Preferred Stock |
490 | 950 | |||||||||||
| Total iWatt Inc. |
1,118 | 950 | |||||||||||
| NEXX Systems, Inc.(4) |
Semiconductors |
Senior Debt |
$ | 565 | 423 | 423 | |||||||
| Revolving Line of Credit |
$ | 3,000 | 3,000 |
|
3,000 | ||||||||
| Revolving Line of Credit |
$ | 500 | 500 |
|
500 | ||||||||
| Preferred Stock Warrants |
562 | 784 | |||||||||||
| Preferred Stock |
6 | 332 | |||||||||||
| Total NEXX Systems, Inc. |
4,491 | 5,039 | |||||||||||
See Notes to Consolidated Financial Statements
23
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Quartics, Inc. |
Semiconductors |
Senior Debt |
$ | 139 | $ | 134 | $ | 134 | |||||
| Preferred Stock Warrants |
53 | — | |||||||||||
| Total Quartics, Inc. |
187 | 134 | |||||||||||
| Solarflare Communications, Inc. |
Semiconductors |
Senior Debt |
$ | 197 | 181 | 181 | |||||||
| Preferred Stock Warrants |
83 | — | |||||||||||
| Common Stock |
641 | — | |||||||||||
| Total Solarflare Communications, Inc. |
905 | 181 | |||||||||||
| Total Semiconductors (3.13%)* |
12,353 | 11,481 | |||||||||||
| Labopharm USA, Inc.(5) |
Drug Delivery |
Senior Debt |
$ | 20,000 | 19,718 | 19,718 | |||||||
| Common Stock Warrants |
687 | 1,307 | |||||||||||
| Total Labopharm USA, Inc. |
20,405 | 21,025 | |||||||||||
| Transcept Pharmaceuticals, Inc. |
Drug Delivery |
Common Stock Warrants |
36 | 94 | |||||||||
| Common Stock Warrants |
51 | 91 | |||||||||||
| Common Stock |
500 | 283 | |||||||||||
| Total Transcept Pharmaceuticals, Inc. |
587 | 468 | |||||||||||
| Total Drug Delivery (5.86%)* |
20,992 | 21,493 | |||||||||||
| BARRX Medical, Inc. |
Therapeutic |
Senior Debt |
$ | 5,481 | 5,473 | 5,473 | |||||||
| Revolving Line of Credit Matures May 2010 Interest rate 10.00% |
$ | 1,000 | 1,000 | 1,000 | |||||||||
| Preferred Stock Warrants |
76 | 111 | |||||||||||
| Preferred Stock |
1,500 | 2,303 | |||||||||||
| Total BARRX Medical, Inc. |
8,050 | 8,887 | |||||||||||
| EKOS Corporation |
Therapeutic |
Senior Debt Matures November 2010 Interest rate Prime + 2.00% |
$ | 2,677 | 2,629 | 2,630 | |||||||
| Preferred Stock Warrants |
175 | — | |||||||||||
| Preferred Stock Warrants |
153 | — | |||||||||||
| Total EKOS Corporation |
2,957 | 2,630 | |||||||||||
| Gelesis, Inc.(8) |
Therapeutic |
Senior Debt Matures May 2012 Interest rate Prime + 7.5% or Floor rate of 10.75% |
$ | 2,847 | 2,814 | — | |||||||
| Preferred Stock Warrants |
58 | — | |||||||||||
| Total Gelesis, Inc. |
2,872 | — | |||||||||||
| Gynesonics, Inc. |
Therapeutic |
Preferred Stock Warrants |
18 | 5 | |||||||||
| Preferred Stock |
250 | 627 | |||||||||||
| Total Gynesonics, Inc. |
268 | 632 | |||||||||||
See Notes to Consolidated Financial Statements
24
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Light Science Oncology, Inc. |
Therapeutic |
Preferred Stock Warrants |
$ | 99 | $ | 26 | |||||||
| Total Light Science Oncology, Inc. |
99 | 26 | |||||||||||
| Novasys Medical, Inc.(4) |
Therapeutic |
Senior Debt |
|||||||||||
| Matures January 2010 Interest rate 9.70% |
$ | 295 | 295 | 295 | |||||||||
| Preferred Stock Warrants |
71 | — | |||||||||||
| Preferred Stock Warrants |
54 | — | |||||||||||
| Preferred Stock |
1,000 | 1,000 | |||||||||||
| Total Novasys Medical, Inc. |
1,420 | 1,295 | |||||||||||
| Total Therapeutic (3.68%)* |
15,665 | 13,470 | |||||||||||
| Cozi Group, Inc. |
Internet Consumer & Business Services | Preferred Stock Warrants |
148 | — | |||||||||
| Preferred Stock |
177 | 7 | |||||||||||
| Total Cozi Group, Inc. |
325 | 7 | |||||||||||
| Invoke Solutions, Inc. |
Internet Consumer & Business Services | Preferred Stock Warrants |
56 | 129 | |||||||||
| Preferred Stock Warrants |
26 | 29 | |||||||||||
| Total Invoke Solutions, Inc. |
82 | 158 | |||||||||||
| Prism Education Group Inc. |
Internet Consumer & Business Services | Senior Debt Matures December 2010 Interest rate 11.25% |
$ | 801 | 789 | 790 | |||||||
| Preferred Stock Warrants |
43 | 104 | |||||||||||
| Total Prism Education Group Inc. |
832 | 894 | |||||||||||
| 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% |
$ | 10,000 | 10,000 | 10,000 | |||||||
| Preferred Stock Warrants |
14 | 223 | |||||||||||
| Preferred Stock Warrants |
28 | 33 | |||||||||||
| Preferred Stock |
1,000 | 1,037 | |||||||||||
| Total RazorGator Interactive Group, Inc. |
11,042 | 11,293 | |||||||||||
| Spa Chakra, Inc.(8) |
Internet Consumer & Business Services | Senior Debt Matures from December 2009 to October 2011 Interest rate from 16.45% to 17% |
$ | 12,482 | 12,778 | 8,000 | |||||||
| Preferred Stock Warrants |
1 | — | |||||||||||
| Total Spa Chakra, Inc. |
12,779 | 8,000 | |||||||||||
| Total Internet Consumer & Business Services (5.55%)* |
25,060 | 20,352 | |||||||||||
| Lilliputian Systems, Inc. |
Energy |
Preferred Stock Warrants |
107 | 104 | |||||||||
| Common Stock Warrants |
48 | — | |||||||||||
| Total Lilliputian Systems, Inc. |
155 | 104 | |||||||||||
| Total Energy (0.03%)* |
155 | 104 | |||||||||||
See Notes to Consolidated Financial Statements
25
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Box.net, Inc. |
Information Services | Senior Debt |
$ | 676 | $ | 658 | |||||||
| $ | 658 | ||||||||||||
| Senior Debt |
$ | 287 | 287 | ||||||||||
| 287 | |||||||||||||
| Preferred Stock Warrants |
73 | 53 | |||||||||||
| Total Box.net, Inc. |
1,018 | 998 | |||||||||||
| Buzznet, Inc. |
Information Services | Preferred Stock Warrants |
9 | — | |||||||||
| Preferred Stock |
250 | 74 | |||||||||||
| Total Buzznet, Inc. |
259 | 74 | |||||||||||
| XL Education Corp. |
Information Services | Common Stock |
880 | 880 | |||||||||
| Total XL Education Corp. |
880 | 880 | |||||||||||
| hi5 Networkss, Inc. |
Information Services | Senior Debt |
$ | 1,559 | 1,559 | 1,559 | |||||||
| Senior Debt |
$ |
3,401 |
|
3,356 |
|||||||||
| 3,356 | |||||||||||||
| Preferred Stock Warrants |
213 | — | |||||||||||
| Total hi5 Networks, Inc. |
5,128 | 4,915 | |||||||||||
| Jab Wireless, Inc. |
Information Services | Senior Debt |
$ | 14,750 | 14,891 | 14,892 | |||||||
| Revolving Line of Credit |
|||||||||||||
| $ | 2,500 | 2,504 | 2,504 | ||||||||||
| Preferred Stock Warrants |
265 | 151 | |||||||||||
| Total Jab Wireless, Inc. |
17,660 | 17,547 | |||||||||||
| Solutionary, Inc. |
Information Services | Preferred Stock Warrants |
94 | — | |||||||||
| Preferred Stock Warrants |
2 | — | |||||||||||
| Preferred Stock |
250 | 83 | |||||||||||
| Total Solutionary, Inc. |
346 | 83 | |||||||||||
| Ancestry.com, Inc. |
Information Services | Common Stock |
452 | 880 | |||||||||
| Total Ancestry.com, Inc. |
452 | 880 | |||||||||||
| Good Technologies, Inc. |
Common Stock |
603 | 603 | ||||||||||
| Total Good Technologies Inc. |
603 | 603 | |||||||||||
| Coveroo, Inc. |
Information Services | Preferred Stock Warrants |
7 | — | |||||||||
| Total Coveroo, Inc. |
7 | — | |||||||||||
See Notes to Consolidated Financial Statements
26
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Zeta Interactive Corporation |
Information Services | Senior Debt |
$ | 4,731 | $ | 4,732 | $ | 4,731 | |||||
| Senior Debt |
|||||||||||||
| $ | 6,484 | 6,719 | 6,719 | ||||||||||
| Preferred Stock Warrants |
172 | — | |||||||||||
| Preferred Stock |
500 | 310 | |||||||||||
| Total Zeta Interactive Corporation |
12,123 | 11,760 | |||||||||||
| Total Information Services (10.30%)* |
38,476 | 37,740 | |||||||||||
| Novadaq Technologies, Inc.(5) |
Diagnostic |
Common Stock |
1,567 | 542 | |||||||||
| Total Novadaq Technologies, Inc. |
1,567 | 542 | |||||||||||
| Optiscan Biomedical, Corp. |
Diagnostic |
Senior Debt |
$ | 7,696 | 7,516 | 7,515 | |||||||
| Preferred Stock Warrants |
760 | 342 | |||||||||||
| Preferred Stock |
3,000 | 3,000 | |||||||||||
| Total Optiscan Biomedical, Corp. |
11,276 | 10,857 | |||||||||||
| Total Diagnostic (3.11%)* |
12,843 | 11,399 | |||||||||||
| Kamada, LTD. (5) |
Biotechnology Tools | Common Stock Warrants |
159 | 149 | |||||||||
| Common Stock |
794 | 1,161 | |||||||||||
| Total Kamada, LTD. |
953 | 1,310 | |||||||||||
| Labcyte, Inc. |
Biotechnology Tools | Senior Debt |
$ | 3,500 | 3,323 | 3,323 | |||||||
| Common Stock Warrants |
192 | 235 | |||||||||||
| Total Labcyte, Inc. |
3,515 | 3,558 | |||||||||||
| NuGEN Technologies, Inc. |
Biotechnology Tools |
Senior Debt |
|||||||||||
| Matures November 2010 |
$ | 785 | 780 | 780 | |||||||||
| Senior Debt |
|||||||||||||
| Matures November 2010 |
$ | 442 | 442 | 442 | |||||||||
| Preferred Stock Warrants |
45 | 391 | |||||||||||
| Preferred Stock Warrants |
33 | 41 | |||||||||||
| Preferred Stock |
500 | 587 | |||||||||||
| Total NuGEN Technologies, Inc. |
1,800 | 2,241 | |||||||||||
| Solace Pharmaceuticals, Inc.(4) |
Biotechnology Tools |
Senior Debt |
$ | 2,617 | 2,560 | 2,560 | |||||||
| Preferred Stock Warrants |
42 | — | |||||||||||
| Preferred Stock Warrants |
54 | — | |||||||||||
| Total Solace Pharmaceuticals, Inc. |
2,656 | 2,560 | |||||||||||
| Total Biotechnology Tools (2.64%)* |
8,924 | 9,669 | |||||||||||
| Crux Biomedical, Inc. |
Surgical Devices |
Preferred Stock Warrants |
37 | — | |||||||||
| Preferred Stock |
250 | 26 | |||||||||||
| Total Crux Biomedical, Inc. |
287 | 26 | |||||||||||
See Notes to Consolidated Financial Statements
27
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2009
(dollars in thousands)
| Portfolio Company |
Industry |
Type of Investment(1) |
Principal Amount |
Cost(2) | Value(3) | ||||||||
| Transmedics, Inc.(4)(8) |
Surgical Devices |
Senior Debt |
$ | 9,475 | $ | 9,384 | $ | 2,384 | |||||
| Preferred Stock Warrants |
225 | — | |||||||||||
| Total Transmedics, Inc. |
9,609 | 2,384 | |||||||||||
| Total Surgical Devices (0.66%)* |
9,896 | 2,410 | |||||||||||
| Glam Media, Inc. |
Media/Content/Info |
Preferred Stock Warrants |
482 | 283 | |||||||||
| Total Glam Media, Inc. |
482 | 283 | |||||||||||
| Waterfront Media Inc. |
Media/Content/Info |
Preferred Stock Warrants |
60 | 592 | |||||||||
| Preferred Stock |
1,000 | 1,500 | |||||||||||
| Total Waterfront Media Inc. |
1,060 | 2,092 | |||||||||||