Edgar Filing: HERCULES TECHNOLOGY GROWTH CAPITAL INC

Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

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

For The Quarterly Period Ended September 30, 2010

¨	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 that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

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


Large Accelerated Filer	¨	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 4, 2010, there were 36,170,811 shares outstanding of the Registrant’s common stock, $0.001 par value.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statement of Assets and Liabilities as of September 30, 2010 (unaudited) and December 31, 2009	3

	Consolidated Schedule of Investments as of September 30, 2010 (unaudited)	4

	Consolidated Schedule of Investments as of December 31, 2009	17

	Consolidated Statement of Operations for the three and nine-month periods ended September 30, 2010 and 2009 (unaudited)	29

	Consolidated Statement of Changes in Net Assets for the nine-month periods ended September 30, 2010 and 2009 (unaudited)	30

	Consolidated Statement of Cash Flows for the nine-month periods ended September 30, 2010 and 2009 (unaudited)	31

	Notes to Consolidated Financial Statements (unaudited)	32

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	75

Item 4.	Controls and Procedures	77

PART II. OTHER INFORMATION		78

Item 1.	Legal Proceedings	78

Item 1A.	Risk Factors	78

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	82

Item 3.	Defaults Upon Senior Securities	82

Item 4.	Reserved	82

Item 5.	Other Information	82

Item 6.	Exhibits	83

SIGNATURES		84

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Technology Growth Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts unless the context otherwise requires.

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Unaudited—dollars in thousands, except per share data)


	September 30, 2010 (unaudited)			December 31, 2009
Assets
Investments:
Non-affiliate investments (cost of $397,925 and $353,648, respectively)	$	370,720		$	335,979
Affiliate investments (cost of $2,880 and $2,880, respectively)		2,846			2,274
Control investments (cost of $26,992 and $23,823, respectively)		33,935			32,184

Total investments, at value (cost of $427,796 and $380,351 respectively)		407,501			370,437
Deferred loan origination revenue		(5,033	)		(2,425	)
Cash and cash equivalents		83,011			124,828
Interest receivable		11,512			10,309
Other assets		7,291			5,818

Total assets		504,282			508,967

Liabilities
Accounts payable and accrued liabilities		5,733			11,852
Long-term SBA Debentures		160,000			130,600

Total liabilities		165,733			142,452

Net assets	$	338,549		$	366,515

Net assets consist of:
Common stock, par value	$	36		$	35
Capital in excess of par value		409,389			409,036
Unrealized appreciation (depreciation) on investments		(22,247	)		(10,028	)
Accumulated realized gains (losses) on investments		(43,273	)		(28,129	)
Distributions in excess of investment income		(5,356	)		(4,399	)

Total net assets	$	338,549		$	366,515

Shares of common stock outstanding ($0.001 par value, 60,000 authorized)		36,158			35,634

Net asset value per share	$	9.36		$	10.29

See Notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2010

(unaudited)

(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	$	920
		Preferred Stock Warrants				35		181
		Preferred Stock Warrants				39		95
		Preferred Stock				1,341		2,316

Total Acceleron Pharmaceuticals, Inc.						1,484		3,512

Aveo Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.15% or Floor rate of 11.9%	$	25,000		24,517		24,517
		Preferred Stock Warrants				190		426
		Preferred Stock Warrants				104		103
		Preferred Stock Warrants				24		37
		Preferred Stock Warrants				288		398
		Preferred Stock Warrants				288		398

Total Aveo Pharmaceuticals, Inc.						25,411		25,879

Dicerna Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures July 2012 Interest rate Prime + 9.20% or Floor rate of 12.95%	$	5,355		5,259		5,259
		Preferred Stock Warrants				206		164
		Preferred Stock Warrants				31		29
		Preferred Stock Warrants				28		22
		Preferred Stock				503		503

Total Dicerna Pharmaceuticals, Inc.						6,027		5,977

Elixir Pharmaceuticals, Inc ⁽⁸⁾	Drug Discovery	Senior Debt Matures October 2011 Interest rate Prime + 9.25% or Floor rate of 12.5%	$	6,531		6,531		—
		Preferred Stock Warrants				217		—

Total Elixir Pharmaceuticals, Inc.						6,748		—

EpiCept Corporation	Drug Discovery	Common Stock Warrants				4		42
		Common Stock Warrants				40		4

Total EpiCept Corporation						44		46

Horizon Therapeutics, Inc.	Drug Discovery	Preferred Stock Warrants				231		—

Total Horizon Therapeutics, Inc.						231		—

Inotek Pharmaceuticals Corp.	Drug Discovery	Preferred Stock				1,500		—

Total Inotek Pharmaceuticals Corp.						1,500		—

Merrimack Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				155		113
		Preferred Stock				2,000		1,470

Total Merrimack Pharmaceuticals, Inc.						2,155		1,583

Paratek Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				137		122
		Preferred Stock				1,000		999

Total Paratek Pharmaceuticals, Inc.						1,137		1,121

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
PolyMedix, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.1% or Floor rate of 12.35%	$	10,000	$	9,618	$	9,618
		Preferred Stock Warrants				480		268

Total PolyMedix, Inc.						10,098		9,886

Portola Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures April 2011 Interest rate Prime + 2.16%	$	2,916		2,916		2,916
		Preferred Stock Warrants				152		441

Total Portola Pharmaceuticals, Inc.						3,068		3,357

Total Drug Discovery (15.17%)*						57,903		51,361


Affinity Videonet, Inc ⁽⁴⁾	Communications & Networking	Senior Debt Matures June 2012 Interest rate Prime + 8.75% or Floor rate of 12.00%	$	1,685		1,736		1,736
		Senior Debt
		Matures June 2012 Interest rate Prime + 14.75% or Floor rate of 18.00%	$	2,000		2,084		2,084
		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		166

Total Affinity Videonet, Inc.						4,422		4,486

E-band Communications, Corp.⁽⁶⁾	Communications & Networking	Preferred Stock				2,880		2,846

Total E-Band Communications, Corp.						2,880		2,846

IKANO Communications, Inc.	Communications & Networking	Senior Debt Matures August 2011 Interest rate 12.00%	$	2,779		2,779		2,779
		Preferred Stock Warrants				45		—
		Preferred Stock Warrants				72		—

Total IKANO Communications, Inc.						2,896		2,779

Intelepeer, Inc.	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 8.125%	$	5,185		5,114		5,114
		Preferred Stock Warrants				102		94

Total Intelepeer, Inc.						5,216		5,208

Neonova Holding Company	Communications & Networking	Preferred Stock Warrants				94		39
		Preferred Stock				250		225

Total Neonova Holding Company						344		264

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Opsource, Inc.⁽⁴⁾	Communications & Networking	Senior Debt Matures June 2013 Interest rate Prime + 7.75% or Floor rate of 11.00%	$	5,000	$	4,811	$	4,811
		Revolving Line of Credit Matures June 2011 Interest rate Prime + 5.25% or Floor rate of 8.50%	$	1,500		1,500		1,500
		Preferred Stock Warrants				222		208

Total Opsource, Inc.						6,533		6,519

PeerApp, Inc.	Communications & Networking	Senior Debt Matures April 2013 Interest rate Prime + 7.5% or Floor rate of 11.50%	$	3,000		2,951		2,951
		Preferred Stock Warrants				61		56

Total PeerApp, Inc.						3,012		3,007

Peerless Network, Inc.	Communications & Networking	Preferred Stock Warrants				95		134
		Preferred Stock				1,000		1,930

Total Peerless Network, Inc.						1,095		2,064

Ping Identity Corporation	Communications & Networking	Preferred Stock Warrants				52		4

Total Ping Identity Corporation						52		4

Purcell Systems, Inc.	Communications & Networking	Preferred Stock Warrants				123		327

Total Purcell Systems, Inc.						123		327

Seven Networks, Inc.	Communications & Networking	Preferred Stock Warrants				174		34

Total Seven Networks, Inc.						174		34

Stoke, Inc⁽⁴⁾	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 7.0% or	$	4,000		3,947		3,947
		Preferred Stock Warrants				53		71
		Preferred Stock Warrants				65		61

Total Stoke, Inc.						4,065		4,079

Tectura Corporation	Communications & Networking	Senior Debt Matures March 2011 Interest rate 11%	$	833		833		833
		Revolving Line of Credit Matures July 2011 Interest rate 11%	$	16,517		17,456		17,456
		Preferred Stock Warrants				51		3

Total Tectura Corporation						18,340		18,292

Total Communications & Networking (14.74%)*						49,152		49,909

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Atrenta, Inc.	Software	Preferred Stock Warrants			$	102	$	36
		Preferred Stock Warrants				34		12
		Preferred Stock Warrants				95		15
		Preferred Stock				250		136

Total Atrenta, Inc.						481		199

Blurb, Inc.	Software	Senior Debt Matures June 2011 Interest rate Prime + 3.50% or Floor rate of 8.5%	$	1,721		1,696		1,696
		Preferred Stock Warrants				25		348
		Preferred Stock Warrants				299		224

Total Blurb, Inc.						2,020		2,268

Braxton Technologies, LLC.	Software	Preferred Stock Warrants				188		—

Total Braxton Technologies, LLC.						188		—

Bullhorn, Inc.	Software	Preferred Stock Warrants				43		234

Total Bullhorn, Inc.						43		234

Clickfox, Inc.	Software	Senior Debt
		Matures July 2013 Interest rate Prime + 6.00% or Floor rate of 11.25%	$	6,000		5,851		5,851
		Revolving Line of Credit Matures July 2011 Interest rate Prime + 5.00% or Floor rate of 12.00%	$	2,000		2,000		2,000
		Preferred Stock Warrants				177		128
		Preferred Stock Warrants				152		163

Total Clickfox, Inc.						8,180		8,142

Forescout Technologies, Inc.	Software	Preferred Stock Warrants				99		10

Total Forescout Technologies, Inc.						99		10

GameLogic, Inc.	Software	Preferred Stock Warrants				92		—

Total GameLogic, Inc.						92		—

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		61

Total HighRoads, Inc.						44		61

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
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%				707		723
		Revolving Line of Credit Matures May 2011 Interest rate 12.00%	$	7,617		7,617		7,617
		Senior Debt Matures December 2010 Interest rate 18.00%	$	2,202		2,202		2,202
		Senior Debt Matures April 2013 Interest rate 8.00%	$	1,350		1,350		1,350
		Senior Debt Matures September 2011 Interest rate 10.00%	$	500		500		500
		Preferred Stock Warrants				725		2,740
		Common Stock				5,000		5,680
		Common Stock				3,391		7,623

Total Infologix, Inc.						26,992		33,935

PSS Systems, Inc.	Software	Preferred Stock Warrants				51		13

Total PSS Systems, Inc.						51		13

Rockyou, Inc.	Software	Preferred Stock Warrants				117		183

Total Rockyou, Inc.						117		183

Sportvision, Inc.	Software	Preferred Stock Warrants				39		—

Total Sportvision, Inc.						39		—

Unify Corporation	Software	Senior Debt Matures June 2015 Interest rate Libor + 8.25% or Floor rate of 10.25%	$	24,000		22,746		22,746
		Revolving Line of Credit Matures June 2015 Interest rate Libor + 7.25% or Floor rate of 9.25%	$	3,250		3,250		3,250
		Preferred Stock Warrants				1,435		1,567

Total Unify Corporation						27,431		27,563

WildTangent, Inc.	Software	Preferred Stock Warrants				238		12

Total WildTangent, Inc.						238		12

Total Software (25.88%)*						81,015		87,620

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
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 + 7.25% or Floor rate of 10.75%	$	5,000		5,318		318
		Senior Debt Matures April 2012 Interest rate Prime + 5.0% or Floor rate of 8.5%	$	3,659		3,659		3,659
		Revolving Line of Credit Matures April 2012 Interest rate Prime + 5.0% or Floor rate of 8.5%	$	3,100		3,180		3,180
		Common Stock				82		—

Total Maxvision Holding, LLC						12,239		7,157

Shocking Technologies, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				63		89

Total Shocking Technologies, Inc.						63		89

Spatial Photonics, Inc.⁽⁸⁾	Electronics & Computer Hardware	Senior Debt Matures April 2011 Interest rate 10.07%	$	722		722		—
		Preferred Stock Warrants				130		—
		Preferred Stock				500		—

Total Spatial Photonics, Inc.						1,352		—

VeriWave, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				54		—
		Preferred Stock Warrants				46		—

Total VeriWave, Inc.						100		—

Total Electronics & Computer Hardware (2.52%)*						15,645		8,536


Aegerion Pharmaceuticals, Inc ⁽⁴⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2011 Interest rate Prime + 2.50% or Floor rate of 11.00%	$	3,269		3,269		3,269
		Convertible Senior Debt
		Matures December 2011	$	401		401		401
		Preferred Stock Warrants				69		382
		Preferred Stock				1,000		500

Total Aegerion Pharmaceuticals, Inc.						4,739		4,552

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Althea Technologies, Inc.	Specialty Pharmaceuticals	Senior Debt Matures October 2013 Interest rate Prime + 7.70% or Floor rate of 10.95%	$	12,000	$	11,711	$	11,711
		Preferred Stock Warrants				309		245

Total Althea Technologies, Inc.						12,020		11,956

Chroma Therapeutics, Ltd.⁽⁵⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2013 Interest rate Prime + 7.75% or Floor rate of 12.00%	$	10,000		9,610		9,610
		Preferred Stock Warrants				490		366

Total Chroma Therapeutics, Ltd.						10,100		9,976

QuatRx Pharmaceuticals Company	Specialty Pharmaceuticals	Senior Debt Matures October 2011 Interest rate Prime + 8.90% or Floor rate of 12.15%	$	10,972		10,921		10,921
		Convertible Senior Debt
		Matures March 2012	$	1,888		1,888		2,861
		Preferred Stock Warrants				220		—
		Preferred Stock Warrants				307		—
		Preferred Stock				750		—

Total Quatrx Pharmaceuticals Company						14,086		13,782

Total Specialty Pharmaceuticals (11.89%)*						40,945		40,266

Annie’s, Inc.	Consumer & Business Products	Preferred Stock Warrants				321		99

Total Annie’s, Inc.						321		99

IPA Holdings, LLC ⁽⁴⁾	Consumer & Business Products	Senior Debt Matures November 2012 Interest rate Prime + 7.75% or Floor rate of 12.0%	$	8,625		8,919		8,919
		Senior Debt Matures May 2013 Interest rate Prime + 10.75% or Floor rate of 15.0%	$	6,500		6,873		6,873
		Revolving Line of Credit Matures November 2012 Interest rate Prime + 7.25% or Floor rate of 11.50%	$	856		856		856
		Preferred Stock Warrants				275		—
		Common Stock				500		—

Total IPA Holdings, LLC						17,423		16,648

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(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	$	49
		Preferred Stock				500		306

Total Market Force Information, Inc.						524		355

OnTech Operations, Inc.	Consumer & Business Products	Preferred Stock Warrants				452		—
		Preferred Stock Warrants				218		—
		Preferred Stock				1,000		—

Total OnTech Operations, Inc.						1,670		—

Trading Machines, Inc.	Consumer & Business Products	Senior Debt Matures January 2014 Interest rate Prime + 10.25% or Floor rate of 13.50%	$	10,000		9,174		9,174
		Preferred Stock Warrants				879		751
		Preferred Stock				50		50

Total Trading Machines, Inc.						10,103		9,975

Velocity Technology Solutions, Inc.	Consumer & Business Products	Senior Debt Matures February 2015 Interest rate LIBOR + 8% or Floor rate of 11.00%	$	15,834		15,834		15,834
		Senior Debt Matures February 2015 Interest rate LIBOR + 10% or Floor rate of 13.00%	$	8,333		8,446		8,446

Total Velocity Technology Solutions, Inc.						24,280		24,280

Wageworks, Inc.	Consumer & Business Products	Preferred Stock Warrants				252		1,218
		Preferred Stock				250		265

Total Wageworks, Inc.						502		1,483

Total Consumer & Business Products (15.61%)*						54,823		52,840


Enpirion, Inc.	Semiconductors	Preferred Stock Warrants				157		—

Total Enpirion, Inc.						157		—

iWatt, Inc.	Semiconductors	Preferred Stock Warrants				46		2
		Preferred Stock Warrants				51		—
		Preferred Stock Warrants				73		—
		Preferred Stock Warrants				458		18
		Preferred Stock				490		362

Total iWatt, Inc.						1,118		382

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
NEXX Systems, Inc.	Semiconductors	Preferred Stock Warrants			$	297	$	1,032
		Preferred Stock				277		704

Total NEXX Systems, Inc.						574		1,736

Quartics, Inc.	Semiconductors	Preferred Stock Warrants				53		—

Total Quartics, Inc.						53		—

Solarflare Communications, Inc.	Semiconductors	Preferred Stock Warrants				83		—
		Common Stock				642		—

Total Solarflare Communications, Inc.						725		—

Total Semiconductors (0.63%)*						2,627		2,118


Alexza Pharmaceuticals, Inc. ⁽⁴⁾	Drug Delivery	Senior Debt Matures October 2013 Interest rate Prime + 6.5% or Floor rate of 10.75%	$	15,000		14,459		14,459
		Preferred Stock Warrants				645		570

Total Alexza Pharmaceuticals, Inc.						15,104		15,029
Labopharm USA, Inc.⁽⁵⁾	Drug Delivery	Senior Debt Matures December 2012 Interest rate 10.95%	$	20,000		19,768		19,768
		Common Stock Warrants				635		368

Total Labopharm USA, Inc.						20,403		20,136

Transcept Pharmaceuticals, Inc.	Drug Delivery	Common Stock Warrants				36		65
		Common Stock Warrants				51		30
		Common Stock				499		290

Total Transcept Pharmaceuticals, Inc.						586		385

Total Drug Delivery (10.50%)*						36,093		35,550


BARRX Medical, Inc.	Therapeutic	Senior Debt Mature December 2011 Interest rate 11.00%	$	3,573		3,570		3,570
		Revolving Line of Credit
		Matures May 2011 Interest rate 10.00%
		Preferred Stock Warrants				76		66
		Preferred Stock				1,500		1,890

Total BARRX Medical, Inc.						5,146		5,526

EKOS Corporation	Therapeutic	Senior Debt Matures November 2010 Interest rate Prime + 2.00%	$	496		502		502
		Preferred Stock Warrants				175		1
		Preferred Stock Warrants				153		—

Total EKOS Corporation						830		503

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Gelesis, Inc. ⁽⁸⁾	Therapeutic	Senior Debt Matures May 2012 Interest rate Prime + 7.5% or Floor rate of 10.75%	$	2,847	$	2,826	$	—
		Preferred Stock Warrants				58		—

Total Gelesis, Inc.						2,884		—

Gynesonics, Inc.	Therapeutic	Preferred Stock Warrants				18		5
		Preferred Stock				532		377

Total Gynesonics, Inc.						550		382

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		1
		Preferred Stock Warrants				54		8
		Preferred Stock				1,000		1,359

Total Novasys Medical, Inc.						1,125		1,368

Pacific Child & Family Associates, LLC	Therapeutic	Senior Debt Matures January 2015 Interest rate LIBOR + 8.0% or Floor rate of 10.50%	$	6,750		6,750		6,750
		Senior Debt Matures January 2015 Interest rate LIBOR + 10.50% or Floor rate of 13.0%	$	5,900		6,042		6,042

Total Pacific Child & Family Associates, LLC						12,792		12,792

Total Therapeutic (6.08%)*						23,426		20,597


Cozi Group, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				147		—
		Preferred Stock				177		292

Total Cozi Group, Inc.						324		292

Invoke Solutions, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				56		73
		Preferred Stock Warrants				26		17

Total Invoke Solutions, Inc.						82		90

Prism Education Group, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				43		36

Total Prism Education Group, Inc.						43		36

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%	$	3,658		3,217		3,217
		Preferred Stock Warrants				13		—
		Preferred Stock Warrants				28		—
		Preferred Stock Warrants				1,183		—
		Preferred Stock				1,000		—

Total RazorGator Interactive Group, Inc.						5,441		3,217

Reply! Inc. ⁽⁴⁾	Internet Consumer & Business Services	Senior Debt Matures June 2013 Interest rate Prime + 6.5% or Floor rate of 9.75%
			$	5,000		5,000		5,000

Total Reply! Inc.						5,000		5,000

Total Internet Consumer & Business Services (2.55%)						10,890		8,635

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Lilliputian Systems, Inc.	Energy	Preferred Stock Warrants			$	106	$	1
		Common Stock Warrants				49		—

Total Lilliputian Systems, Inc.						155		1

Total Energy (0.00%)*						155		1


Box.net, Inc.	Information Services	Senior Debt Matures May 2011 Interest rate Prime + 1.50% or Floor rate of 7.50%	$	332		329		329
		Senior Debt Matures September 2011 Interest rate Prime + 0.50% or Floor rate of 6.50%	$	168		168		168
		Preferred Stock Warrants				73		182
		Preferred Stock				500		500


Total Box.net, Inc.						1,070		1,179

Buzznet, Inc.	Information Services	Preferred Stock Warrants				9		—
		Preferred Stock				250		45

Total Buzznet, Inc.						259		45

XL Education Corp.	Information Services	Common Stock				880		880

Total XL Education Corp.						880		880

hi5 Networks, Inc.	Information Services	Preferred Stock Warrants				213		—
		Preferred Stock				250		247

Total hi5 Networks, Inc.						463		247

Jab Wireless, Inc.	Information Services	Preferred Stock Warrants				265		102

Total Jab Wireless, Inc.						265		102

Solutionary, Inc.	Information Services	Preferred Stock Warrants				94		—
		Preferred Stock Warrants				2		—
		Preferred Stock				250		50

Total Solutionary, Inc.						346		50

Intelligent Beauty, Inc.	Information Services	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		165


Total Good Technologies, Inc.						603		165

Coveroo, Inc.	Information Services	Preferred Stock Warrants				7		—

Total Coveroo, Inc.						7		—

Zeta Interactive Corporation	Information Services	Preferred Stock Warrants				172		12
		Preferred Stock				500		254


Total Zeta Interactive Corporation						672		266

Total Information Services (2.64%)						10,565		8,934


Novadaq Technologies, Inc.⁽⁵⁾	Diagnostic	Common Stock				1,415		670


Total Novadaq Technologies, Inc.						1,415		670

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Optiscan Biomedical, Corp.	Diagnostic	Senior Debt Matures June 2011 Interest rate 10.25%	$	5,136	$	5,083	$	5,083

		Preferred Stock Warrants				760		—

		Preferred Stock				3,656		2,759


Total Optiscan Biomedical, Corp.						9,499		7,842

Total Diagnostic (2.51%)*						10,914		8,512


Kamada, LTD.⁽⁵⁾	Biotechnology Tools	Preferred Stock Warrants				159		108

		Common Stock				752		1,382


Total Kamada, LTD.						911		1,490
Labcyte, Inc.	Biotechnology Tools	Senior Debt Matures May 2013 Interest rate Prime + 8.6% or Floor rate of 11.85%	$	4,000		3,876		3,876
		Common Stock Warrants				192		—

Total Labcyte, Inc.						4,068		3,876

NuGEN Technologies, Inc.	Biotechnology Tools	Preferred Stock Warrants				45		284
		Preferred Stock Warrants				33		19

		Preferred Stock				500		500


Total NuGEN Technologies, Inc.						578		803

Solace Pharmaceuticals, Inc. ^{(4) (8)}	Biotechnology Tools	Senior Debt Matures August 2012 Interest rate Prime + 4.25% or Floor rate of 9.85%	$	813		810		367
		Senior Debt Matures August 2012 Interest rate 8.0%	$	250		250		—
		Preferred Stock Warrants				42		—
		Preferred Stock Warrants				54		—

Total Solace Pharmaceuticals, Inc.						1,156		367

Total Biotechnology Tools (1.93%)*						6,713		6,536


Crux Biomedical, Inc.	Surgical Devices	Preferred Stock Warrants				37		5
		Preferred Stock				250		14


Total Crux Biomedical, Inc.						287		19

Transmedics, Inc. ⁽⁴⁾	Surgical Devices	Senior Debt Matures February 2014 Interest rate Prime + 9.70% or Floor rate of 12.95%	$	8,375		8,295		8,295
		Preferred Stock Warrants				225		146
		Preferred Stock				1,100		1,100


Total Transmedics, Inc.						9,620		9,541


Total Surgical Devices (2.82%)*						9,907		9,560


Glam Media, Inc.	Media/Content/ Info	Preferred Stock Warrants				482		283

Total Glam Media, Inc.						482		283

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2010

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment ⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Waterfront Media, Inc. (Everyday Health)	Media/Content/Info	Preferred Stock Warrants			$	60	$	188
		Preferred Stock				1,000		713


Total Everyday Health						1,060		901


Total Media/Content/Info (0.35%)*						1,542		1,184

Calera, Inc.	Clean Tech	Senior Debt Matures July 2013 Interest rate Prime + 7.0% or Floor rate of 10.25%	$	3,621		3,135		3,135
		Preferred Stock Warrants				513		470

Total Calera, Inc.						3,648		3,605
Propel Biofuels, Inc.	Clean Tech	Senior Debt Matures September 2013 Interest rate 11.0%	$	1,030		863		863
		Preferred Stock Warrants				211		172

Total Propel Biofuels, Inc.						1,074		1,035
Solexel, Inc.	Clean Tech	Preferred Stock Warrants				670		624

Total Solexel, Inc.						670		624
Trilliant, Inc.	Clean Tech	Senior Debt Matures May 2013 Interest rate Prime + 6.75% or Floor rate of 10.0%	$	10,000		9,927		9,927
		Preferred Stock Warrants				89		83
		Preferred Stock Warrants				73		68

Total Trilliant, Inc.						10,089		10,078

Total Clean Tech (4.53%)*						15,481		15,342

Total Investments						427,796		407,501

*	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 and $16,329, $36,621 and $20,292 respectively. The tax cost of investments is $430,088.

(3)

Except for warrants in nine publicly traded companies and common stock in four publicly traded companies, all investments are restricted at September 30, 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 owns at 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 September 30, 2010, and is therefore considered non-income producing.

See Notes to Consolidated Financial Statements

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2009

(unaudited)

(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 Matures May 2012 Interest rate 11.13%	$	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 Matures April 2012 Interest rate Prime + 9.20% or 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 Interest rate Prime + 9.25% or 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 Interest rate Prime + 1.50%	$	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

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Portola Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures April 2011 Interest rate Prime + 2.16%	$	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 Matures June 2012 Interest rate Prime + 4.25%	$	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 Floor rate of 18.00%	$	2,000		2,052		2,052
		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		83

Total Affinity Videonet, Inc.						4,980		4,961

E-Band Communications Corp. ⁽⁶⁾	Communications & Networking	Preferred Stock				2,880		2,274

Total E-Band Communications Corp.						2,880		2,274

IKANO Communications, Inc.	Communications & Networking	Senior Debt Matures August 2011 Interest rate 12.00%	$	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

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2009

(unaudited)

(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 Matures March 2010 Interest rate Prime + 8.00% or Floor rate of 12%	$	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 Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00%	$	9,908		10,238		10,238
		Revolving Line of Credit Matures July 2011 Interest rate Prime + 10.75% or Floor rate of 14.00%	$	5,000		5,156		5,156
		Preferred Stock Warrants				51		—

Total Tectura Corporation						17,320		17,269

Zayo Bandwidth, Inc.	Communications & Networking	Senior Debt Matures November 2013 Interest rate Libor + 5.25%	$	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

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Blurb, Inc.	Software	Senior Debt Matures June 2011 Interest rate Prime + 3.50% or Floor rate of 8.5%	$	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 Matures September 2011 Interest rate Prime + 5.00% or Floor rate of 10.25%	$	3,754		3,683		3,683
		Revolving Line of Credit Matures July 2010 Interest rate Prime + 8.50% or Floor rate of 13.5%	$	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 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		13

Total HighRoads, Inc.						44		13

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		5,004		10,060
		Revolving Line of Credit Matures May 2011 Interest rate 12.00%	$	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

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2009

(unaudited)

(dollars in thousands)


Portfolio Company	Industry		Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Savvion, Inc. ⁽⁴⁾		Software	Senior Debt Matures February 2011 Interest rate Prime + 7.75% or Floor rate of 11.00%	$	2,117	$	2,065	$	2,065
			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		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 Matures December 2011 Interest rate 12.875%	$	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 Matures October 2012 Interest rate Prime + 5.50%	$	5,000		5,220		5,220
			Senior Debt Matures April 2012 Interest rate Prime + 2.25%	$	4,409		4,409		4,409
			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							12,290		12,379

Shocking Technologies, Inc.		Electronics & Computer Hardware	Senior Debt Matures December 2010 Interest rate Prime + 2.50%	$	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 Matures April 2011 Interest rate 10.066%	$	1,980		1,957		1,957
			Senior Debt Mature April 2011 Interest rate 9.217%	$	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

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 Matures September 2011 Interest rate Prime + 2.50% or Floor rate of 11.00%	$	5,481		5,482		5,482
			Convertible Senior Debt Matures December 2010	$	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 Matures October 2011 Interest rate Prime + 8.90% or Floor rate of 12.15%	$	15,417		15,299		15,299
			Convertible Senior Debt Matures March 2010	$	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 Matures April 2011 Interest rate LIBOR + 6.50% or Floor rate of 10.00%	$	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 Matures November 2012 Interest rate Prime + 8.25% or Floor rate of 12.5%	$	9,500		9,633		9,633
			Senior Debt Matures May 2013 Interest rate Prime + 11.25% or Floor rate of 15.5%	$	6,500		6,625		6,625
			Revolving Line of Credit Matures November 2012 Interest rate Prime + 7.75% or Floor rate of 12.00%	$	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

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 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		—

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 Matures September 2010 Interest rate 11.50%	$	426		422		122
			Common Stock Warrants				18		—

Total Custom One Design, Inc.							440		122

Enpirion, Inc.		Semiconductors	Senior Debt Matures August 2011 Interest rate Prime + 2.00% or Floor rate of 7.625%	$	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 Matures March 2010 Interest rate Prime + 3.50% or Floor rate of 11.25%	$	565		423		423
			Revolving Line of Credit Matures June 2010 Interest rate Prime + 8.00% or Floor rate of 13.25%	$	3,000		3,000		3,000

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