Form 10-Q
Table of Contents

 

 

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, 2014

OR

 

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

Commission File Number: 814-00702

 

 

HERCULES TECHNOLOGY GROWTH

CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Maryland   743113410

(State or Jurisdiction of

Incorporation or Organization)

  

(IRS Employer

Identification No.)

 

400 Hamilton Ave., Suite 310  
Palo Alto, California   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   x       Accelerated Filer   ¨
Non-Accelerated Filer   ¨       Smaller Reporting Company   ¨

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

On April 28, 2014, there were 62,610,806 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 

 

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

     3   

Item 1.

   

Consolidated Financial Statements

      3   
  

Consolidated Statement of Assets and Liabilities as of March 31, 2014 (unaudited) and December 31, 2013

      3   
  

Consolidated Statement of Operations for the three month periods ended March 31, 2014 and 2013 (unaudited)

     5   
  

Consolidated Statement of Changes in Net Assets for the three month periods ended March 31, 2014 and 2013 (unaudited)

     6   
  

Consolidated Statement of Cash Flows for the three month periods ended March 31, 2014 and 2013 (unaudited)

     7   
  

Consolidated Schedule of Investments as of March 31, 2014 (unaudited)

      8   
  

Consolidated Schedule of Investments as of December 31, 2013

      22   
  

Notes to Consolidated Financial Statements (unaudited)

      37   

Item 2.

   

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

      63   

Item 3.

   

Quantitative and Qualitative Disclosures About Market Risk

      94   

Item 4.

   

Controls and Procedures

      95   

PART II. OTHER INFORMATION

     96   

Item 1.

   

Legal Proceedings

      96   

Item 1A.

   

Risk Factors

      96   

Item 2.

   

Unregistered Sales of Equity Securities and Use of Proceeds

      97   

Item 3.

   

Defaults Upon Senior Securities

      97   

Item 4.

   

Mine Safety Disclosures

      97   

Item 5.

   

Other Information

      97   

Item 6.

   

Exhibits

      97   

SIGNATURES

     98   

 

2

Table of Contents

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)

 

     March 31,
2014		     December 31,
2013		  

Assets

     

Investments:

     

Non-control/Non-affiliate investments (cost of $872,226 and $891,059, respectively)

    $ 879,469      $ 899,314   

Affiliate investments (cost of $15,402 and $15,238, respectively)

      11,193        10,981   
  

 

 

    

 

 

  

Total investments, at value (cost of $887,628 and $906,297, respectively)

      890,662        910,295   

Cash and cash equivalents

      224,538        268,368   

Restricted cash

      4,784        6,271   

Interest receivable

      8,176        8,962   

Other assets

      31,239        27,819   
  

 

 

    

 

 

  

Total assets

    $ 1,159,399      $ 1,221,715   
  

 

 

    

 

 

  

Liabilities

     

Accounts payable and accrued liabilities

    $ 8,962      $ 14,268   

Long-term Liabilities (Convertible Senior Notes)

      72,789        72,519   

Asset-Backed Notes

      63,782        89,557   

2019 Notes

      170,364        170,364   

Long-term SBA Debentures

      190,200        225,000   
  

 

 

    

 

 

  

Total liabilities

    $ 506,097      $ 571,708   

Commitments and Contingencies (Note 10)

     

Net assets consist of:

     

Common stock, par value

      62        62   

Capital in excess of par value

      656,869        656,594   

Unrealized appreciation on investments

      2,607        3,598   

Accumulated realized losses on investments

      (10,368 )      (15,240 ) 

Undistributed net investment income

      4,132        4,993   
  

 

 

    

 

 

  

Total net assets

    $ 653,302      $ 650,007   
  

 

 

    

 

 

  

Total liabilities and net assets

    $ 1,159,399      $ 1,221,715   
  

 

 

    

 

 

  

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

      61,760        61,837   

Net asset value per share

    $ 10.58      $ 10.51   

See notes to consolidated financial statements.

 

3

Table of Contents

The following table presents the assets and liabilities of our consolidated securitization trust for asset-backed notes (see Note 4), which is a variable interest entity (“VIE”). The assets of our securitization VIE can only be used to settle obligations of our consolidated securitization VIE, these liabilities are only the obligations of our consolidated securitization VIE, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.

 

(Dollars in thousands)

    March 31,
2014		      December 31,
2013		  

ASSETS

      

Restricted Cash

    $ 4,784       $ 6,271   

Total investments, at value (cost of $137,301 and $166,513, respectively)

      135,138         165,445   
  

 

 

     

 

 

  

Total assets

    $ 139,922       $ 171,716   
  

 

 

     

 

 

  

LIABILITIES

      

Asset-Backed Notes

    $ 63,782       $ 89,557   
  

 

 

     

 

 

  

Total liabilities

    $ 63,782       $ 89,557   
  

 

 

     

 

 

  

See notes to consolidated financial statements.

 

4

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

     Three Months Ended March 31,  
         2014              2013      

Investment income:

     

Interest Income

     

Non-Control/Non-Affiliate investments

    $ 29,382      $ 28,319   

Affiliate investments

      1,464        610   
  

 

 

    

 

 

  

Total interest income

      30,846        28,929   
  

 

 

    

 

 

  

Fees

     

Non-Control/Non-Affiliate investments

      4,913        2,028   

Affiliate investments

      11        —     
  

 

 

    

 

 

  

Total fees

      4,924        2,028   
  

 

 

    

 

 

  

Total investment income

      35,770        30,957   

Operating expenses:

     

Interest

      7,148        7,631   

Loan fees

      2,076        1,079   

General and administrative

      2,461        2,252   

Employee Compensation:

     

Compensation and benefits

      4,221        3,798   

Stock-based compensation

      1,560        1,165   
  

 

 

    

 

 

  

Total employee compensation

      5,781        4,963   
  

 

 

    

 

 

  

Total operating expenses

      17,466        15,925   
  

 

 

    

 

 

  

Net investment income

      18,304        15,032   

Net realized gain on investments

     

Non-Control/Non-Affiliate investments

      4,872        1,991   
  

 

 

    

 

 

  

Total net realized gain on investments

      4,872        1,991   
  

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on investments

     

Non-Control/Non-Affiliate investments

      (1,038 )      (768 ) 

Affiliate investments

      47        434   
  

 

 

    

 

 

  

Total net change in unrealized appreciation (depreciation) on investments

      (991 )      (334 ) 
  

 

 

    

 

 

  

Total net realized and unrealized gain

     3,881        1,657   
  

 

 

    

 

 

  

Net increase in net assets resulting from operations

    $ 22,185      $ 16,689   
  

 

 

    

 

 

  

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

     

Basic

    $ 0.30      $ 0.27   
  

 

 

    

 

 

  

Change in net assets per common share:

     

Basic

    $ 0.36      $ 0.30   
  

 

 

    

 

 

  

Diluted

    $ 0.35      $ 0.30   
  

 

 

    

 

 

  

Weighted average shares outstanding

     

Basic

      60,870        53,682   
  

 

 

    

 

 

  

Diluted

      62,695        53,823   
  

 

 

    

 

 

  

Dividends declared per common share:

     

Basic

    $ 0.31      $ 0.27   

See notes to consolidated financial statements.

 

5

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

    Common Stock     Capital  in
excess
of par value		     Unrealized
Appreciation
(Depreciation)
on Investments		     Accumulated
Realized
Gains(Losses)
on Investments		     Undistributed
Net
Investment
Income/
(Distributions
in Excess of
Investment
Income)		     Provision for
Income Taxes
on Investment
Gains		     Net
Assets		  
    Shares     Par Value              

Balance at December 31, 2012

     52,925      $ 53      $ 564,508      $ (7,947 )    $ (36,916 )    $ (3,388 )    $ (342 )    $ 515,968   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

     —          —          —          (334 )      1,991        15,032        —          16,689   

Issuance of common stock

     80        —          910        —          —          —          —          910   

Issuance of common stock under restricted stock plan

     531        1        (1 )      —          —          —          —          —     

Issuance of common stock as stock dividend

     40        —          488        —          —          —          —          488   

Retired shares from net issuance

     (72 )      —          (1,808 )      —          —          —          —          (1,808 ) 

Public Offering

     8,050        8        95,550        —          —          —          —          95,558   

Dividends declared

     —          —          —          —          —          (13,382 )      —          (13,382 ) 

Stock-based compensation

     —          —          1,185        —          —          —          —          1,185   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at March 31, 2013

     61,554      $ 62      $ 660,833      $ (8,281 )    $ (34,925 )    $ (1,739 )    $ (342 )    $ 615,608   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2013

     61,837      $ 62      $ 656,594      $ 3,598      $ (15,240 )    $ 5,335      $ (342 )    $ 650,007   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

     —          —          —          (991 )      4,872        18,304        —          22,185   

Issuance of common stock

     62        —          727        —          —          —          —          727   

Retired shares from restricted stock vesting

     (120 )      —          —          —          —          —          —          —     

Issuance of common stock as stock dividend

     29        —          440        —          —          —          —          440   

Retired shares from net issuance

     (48 )      —          (2,472 )      —          —          —          —          (2,472 ) 

Dividends declared

     —          —          —          —          —          (19,165 )      —          (19,165 ) 

Stock-based compensation

     —          —          1,580        —          —          —          —          1,580   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at March 31, 2014

     61,760      $ 62      $ 656,869      $ 2,607      $ (10,368 )    $ 4,474      $ (342 )    $ 653,302   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

See notes to consolidated financial statements.

 

6

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

     For the Three Months Ended
March 31,		  
     2014     2013  

Cash flows from operating activities:

     

Net increase in net assets resulting from operations

    $ 22,185      $ 16,689   

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

     

Purchase of investments

      (113,887 )      (139,095 ) 

Principal payments received on investments

      132,646        75,987   

Proceeds from sale of investments

      7,598        5,212   

Net unrealized depreciation on investments

      991        334   

Net realized gain on investments

      (4,872 )      (1,991 ) 

Accretion of paid-in-kind principal

      (659 )      (555 ) 

Accretion of loan discounts

      (3,378 )      (1,455 ) 

Accretion of loan discount on Convertible Senior Notes

      271        271   

Accretion of loan exit fees

      1,705        (1,819 ) 

Change in deferred loan origination revenue

      (457 )      313   

Unearned fees related to unfunded commitments

      (2,723 )      (856 ) 

Amortization of debt fees and issuance costs

      1,913        938   

Depreciation

      54        68   

Stock-based compensation and amortization of restricted stock grants

      1,579        1,185   

Change in operating assets and liabilities:

     

Interest and fees receivable (payable)

      786        (41 ) 

Prepaid expenses and other assets

      (2,557 )      33   

Accounts payable

      (41 )      (250 ) 

Accrued liabilities

      (5,307 )      (2,682 ) 
  

 

 

    

 

 

  

Net cash provided by (used in) operating activities

      35,847        (47,714 ) 

Cash flows from investing activities:

     

Purchases of capital equipment

      (4 )      (24 ) 

Reduction of (investment in) restricted cash

      1,487        (810 ) 

Other long-term assets

      —          (30 ) 
  

 

 

    

 

 

  

Net cash provided by (used in) investing activities

      1,483        (864 ) 

Cash flows from financing activities:

     

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

      (1,873 )      94,660   

Dividends paid

      (18,725 )      (12,894 ) 

Repayments of Asset-Backed Notes

      (25,775 )      —     

Repayments of credit facilities

      (34,800 )      (9,254 ) 

Fees paid for credit facilities and debentures

      13        —     
  

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      (81,160 )      72,512   
  

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      (43,830 )      23,934   

Cash and cash equivalents at beginning of period

      268,368        182,994   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 224,538      $ 206,928   
  

 

 

    

 

 

  

Supplemental non-cash investing and financing activities:

     

Dividends Reinvested

    $ 440      $ 488   

Paid-in-Kind Principal

    $ 659      $ 555   

See notes to consolidated financial statements.

 

7

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      
Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

Debt

                               

Biotechnology Tools

                               

1-5 Years Maturity

                               

Labcyte, Inc.(11)(14)(15)

     Biotechnology Tools      Senior Secured      June 2016      Interest rate PRIME + 6.70% or Floor rate of 9.95%      $ 3,890       $ 3,976       $ 3,936   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               3,976         3,936   
                           

 

 

     

 

 

  

Subtotal: Biotechnology Tools (0.60%)*

                               3,976         3,936   
                           

 

 

     

 

 

  

Energy Technology

                               

Under 1 Year Maturity

                               

American Superconductor Corporation(3)(11)(14)

      Energy Technology      Senior Secured      December 2014      Interest rate PRIME + 7.25% or Floor rate of 11.00%      $ 3,462         3,892         3,892   

Enphase Energy, Inc.(11)(14)

      Energy Technology      Senior Secured      June 2014      Interest rate PRIME + 5.75% or Floor rate of 9.00%      $ 669         717         717   

Scifiniti (pka Integrated Photovoltaics, Inc.)(15)

      Energy Technology      Senior Secured      February 2015      Interest rate PRIME + 7.38% or Floor rate of 10.63%      $ 1,166         1,154         1,154   

Stion Corporation(4)(6)(14)

      Energy Technology      Senior Secured      February 2015      Interest rate PRIME + 8.75% or Floor rate of 12.00%      $ 4,182         4,169         4,169   

TAS Energy, Inc.(14)

      Energy Technology      Senior Secured      February 2015      Interest rate PRIME + 7.75% or Floor rate of 11.00%      $ 12,803         12,811         12,811   
     Energy Technology      Senior Secured      February 2015      Interest rate PRIME + 6.25% or Floor rate of 9.50%      $ 3,000         2,900         2,900   
                        

 

 

     

 

 

     

 

 

  

Total TAS Energy, Inc.

                          $ 15,803         15,711         15,711   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               25,644         25,644   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

Agrivida, Inc.(15)

      Energy Technology      Senior Secured      December 2016      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 6,000         5,940         5,902   

American Superconductor(3)(11)(14)

      Energy Technology      Senior Secured      November 2016      Interest rate PRIME + 7.25% or Floor rate of 11.00%      $ 10,000         9,894         9,894   

Amyris, Inc.(10)(14)

      Energy Technology      Senior Secured      February 2017      Interest rate PRIME + 6.25% or Floor rate of 9.50%      $ 25,000         24,703         24,703   

BioAmber, Inc.(5)(10)(14)

      Energy Technology      Senior Secured      June 2016      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 25,000         25,704         26,201   

Enphase Energy, Inc.(11)

      Energy Technology      Senior Secured      August 2016      Interest rate PRIME + 8.25% or Floor rate of 11.50%      $ 7,181         7,229         7,373   

Fluidic, Inc.(14)

      Energy Technology      Senior Secured      March 2016      Interest rate PRIME + 8.00% or Floor rate of 11.25%      $ 5,000         4,961         5,009   

Fulcrum Bioenergy, Inc.(11)

      Energy Technology      Senior Secured      November 2016      Interest rate PRIME + 7.75% or Floor rate of 11.00%      $ 9,733         9,713         9,545   

Glori Energy, Inc.(11)(14)

      Energy Technology      Senior Secured      June 2015      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 4,444         4,616         4,601   

 

See notes to consolidated financial statements.

 

8

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      

Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

Polyera Corporation(14)(15)

      Energy Technology      Senior Secured      June 2016      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 5,289       $ 5,346       $ 5,273   

TPI Composites, Inc.(14)

      Energy Technology      Senior Secured      June 2016      Interest rate PRIME + 8.00% or Floor rate of 11.25%      $ 5,000         4,905         4,905   
     Energy Technology      Senior Secured      June 2016      Interest rate PRIME + 8.00% or Floor rate of 11.25%      $ 15,000         15,008         15,149   
                        

 

 

     

 

 

     

 

 

  

Total TPI Composites, Inc.

                          $ 20,000         19,913         20,054   

ULTURA Inc.(13)(14)

      Energy Technology      Senior Secured      April 2017      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 18,210         18,032         17,556   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               136,051         136,111   
                           

 

 

     

 

 

  

Subtotal: Energy Technology (24.76%)*

                               161,695         161,755   
                           

 

 

     

 

 

  

Communications & Networking

                               

1-5 Years Maturity

                               

OpenPeak, Inc.(11)(14)

      Communications & Networking      Senior Secured      April 2017      Interest rate PRIME + 8.75% or Floor rate of 12.00%      $ 10,500         10,367         10,367   

Spring Mobile Solutions, Inc.(14)

      Communications & Networking      Senior Secured      November 2016      Interest rate PRIME + 8.00% or Floor rate of 11.25%      $ 20,000         19,837         20,237   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               30,204         30,604   
                           

 

 

     

 

 

  

Subtotal: Communications & Networking (4.68%)*

                          30,204         30,604   
                           

 

 

     

 

 

  

Consumer & Business Products

                               

1-5 Years Maturity

                               

Fluc, Inc.(9)

      Consumer & Business Products      Convertible Senior Debt      March 2017      Interest rate FIXED 4.00%      $ 100         100         100   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               100         100   
                           

 

 

     

 

 

  

Subtotal: Consumer & Business Products (0.02%)*

                               100         100   
                           

 

 

     

 

 

  

Drug Delivery

                               

Under 1 Year Maturity

                               

Revance Therapeutics, Inc.(3)(14)

      Drug Delivery      Senior Secured      March 2015      Interest rate PRIME + 6.60% or Floor rate of 9.85%      $ 794         827         827   
     Drug Delivery      Senior Secured      March 2015      Interest rate PRIME + 6.60% or Floor rate of 9.85%      $ 7,942         8,222         8,222   
                        

 

 

     

 

 

     

 

 

  

Total Revance Therapeutics, Inc.

                          $ 8,736         9,049         9,049   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               9,049         9,049   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

AcelRx Pharmaceuticals, Inc.(3)(10)(14)(15)

      Drug Delivery      Senior Secured      October 2017      Interest rate PRIME + 3.85% or Floor rate of 9.10%      $ 15,000         14,613         14,613   

BIND Therapeutics, Inc.(3)(14)(15)

      Drug Delivery      Senior Secured      September 2016      Interest rate PRIME + 7.00% or Floor rate of 10.25%      $ 4,500         4,425         4,560   

Celsion Corporation(3)(14)

      Drug Delivery      Senior Secured      June 2017      Interest rate PRIME + 8.00% or Floor rate of 11.25%      $ 5,000         4,923         4,923   

Dance Biopharm, Inc.(14)(15)

      Drug Delivery      Senior Secured      August 2017      Interest rate PRIME + 7.40% or Floor rate of 10.65%      $ 1,000         981         981   

kaleo, Inc.(11)(14)

      Drug Delivery      Senior Secured      June 2016      Interest rate PRIME + 5.75% or Floor rate of 11.00%      $ 13,678         13,958         13,958   

Neos Therapeutics, Inc.(14)(15)

      Drug Delivery      Senior Secured      October 2017      Interest rate FIXED + 9.00%      $ 10,000         9,828         9,828   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               48,728         48,863   
                           

 

 

     

 

 

  

Subtotal: Drug Delivery (8.86%)*

                               57,777         57,912   
                           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

9

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      

Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

Drug Discovery & Development

                               

Under 1 Year Maturity

                               

Dicerna Pharmaceuticals, Inc.(3)(15)

      Drug Discovery & Development      Senior Secured      January 2015      Interest rate PRIME + 4.40% or Floor rate of 10.15%      $ 3,922       $ 3,901       $ 3,901   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               3,901         3,901   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

ADMA Biologics, Inc.(3)(13)(14)

      Drug Discovery & Development      Senior Secured      June 2017      Interest rate PRIME + 3.00% or Floor rate of 8.75%, PIK Interest 1.95%      $ 10,003         9,824         9,824   

Anacor Pharmaceuticals, Inc.(15)

      Drug Discovery & Development      Senior Secured      July 2017      Interst rate PRIME + 6.40% or Floor rate of 11.65%      $ 30,000         29,171         30,071   

Aveo Pharmaceuticals, Inc.(3)(10)(11)(14)(15)

      Drug Discovery & Development      Senior Secured      September 2015      Interest rate PRIME + 7.15% or Floor rate of 11.90%      $ 16,872         16,872         17,040   

Cell Therapeutics, Inc.(11)(14)

      Drug Discovery & Development      Senior Secured      October 2016      Interest rate PRIME + 9.00% or Floor rate 12.25%      $ 15,000         14,946         14,946   

Cempra, Inc.(3)(11)(14)

      Drug Discovery & Development      Senior Secured      June 2017      Interest rate PRIME + 6.30% or Floor rate of 9.55%      $ 15,000         14,975         14,975   

Cleveland BioLabs, Inc.(3)(14)(15)

      Drug Discovery & Development      Senior Secured      January 2017      Interest rate PRIME + 6.20% or Floor rate of 10.45%      $ 6,000         5,954         6,055   

Concert Pharmaceuticals, Inc.(3)(4)

      Drug Discovery & Development      Senior Secured      October 2015      Interest rate PRIME + 3.25% or Floor rate of 8.50%      $ 13,172         13,052         12,933   

Insmed, Incorporated(11)(14)

      Drug Discovery & Development      Senior Secured      January 2016      Interest rate PRIME + 4.75% or Floor rate of 9.25%      $ 20,000         19,815         19,904   

Merrimack Pharmaceuticals, Inc.(3)(14)

      Drug Discovery & Development      Senior Secured      November 2016      Interest rate PRIME + 5.30% or Floor rate of 10.55%      $ 40,000         40,446         40,204   

Neuralstem, Inc.(14)(15)

      Drug Discovery & Development      Senior Secured      June 2016      Interest rate PRIME + 7.75% or Floor rate of 11.00%      $ 7,295         7,239         7,385   

uniQure B.V.(3)(5)(10)(11)(14)

      Drug Discovery & Development      Senior Secured      October 2016      Interest rate PRIME + 8.60% or Floor rate of 11.85%      $ 10,000         9,731         9,806   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               182,025         183,143   
                           

 

 

     

 

 

  

Subtotal: Drug Discovery & Development (28.63%)*

                          185,926         187,044   
                           

 

 

     

 

 

  

Electronics & Computer Hardware

                               

1-5 Years Maturity

                               

Plures Technologies, Inc.(8)(13)

      Electronics & Computer Hardware      Senior Secured      October 2016      Interest rate PRIME + 8.75% or Floor rate of 12.00%, PIK Interest 4.00%      $ 571         483         307   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               483         307   
                           

 

 

     

 

 

  

Subtotal: Electronics & Computer Hardware (0.05%)

                          483         307   
                           

 

 

     

 

 

  

Healthcare Services, Other

                               

1-5 Years Maturity

                               

InstaMed Communications, LLC(14)(15)

     

Healthcare

Services, Other

      Senior Secured      December 2016      Interest rate PRIME + 7.25% or Floor rate of 10.50%      $ 3,000         3,008         3,068   

 

See notes to consolidated financial statements.

 

10

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      
Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

MDEverywhere, Inc.

     

Healthcare

Services, Other

      Senior Secured      June 2016      Interest rate LIBOR + 9.50% or Floor rate of 10.75%      $ 1,875       $ 1,754       $ 1,792   

Orion Healthcorp, Inc.(13)

     

Healthcare

Services, Other

      Senior Secured      June 2016      Interest rate LIBOR + 8.25% or Floor rate of 9.50%      $ 500         469         469   
    

Healthcare

Services, Other

      Senior Secured      June 2017      Interest rate LIBOR + 9.50% or Floor rate of 11.00%      $ 8,775         8,627         8,684   
    

Healthcare

Services, Other

      Senior Secured      June 2017      Interest rate LIBOR + 10.50% or Floor rate of 12.00%, PIK Interest 3.00%      $ 6,641         6,524         6,580   
                        

 

 

     

 

 

     

 

 

  

Total Orion Healthcorp, Inc.

                          $ 15,916         15,620         15,733   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               20,382         20,593   
                           

 

 

     

 

 

  

Subtotal: Healthcare Services, Other (3.15%)*

                          20,382         20,593   
                           

 

 

     

 

 

  

Information Services

                               

1-5 Years Maturity

                               

Eccentex Corporation(11)(14)

      Information Services      Senior Secured      May 2015      Interest rate PRIME + 7.00% or Floor rate of 10.25%      $ 548         553         244   

InXpo, Inc.(14)(15)

      Information Services      Senior Secured      April 2016      Interest rate PRIME + 7.50% or Floor rate of 10.75%      $ 2,307         2,264         2,207   

Womensforum.com(11)(13)

      Information Services      Senior Secured      October 2016      Interest rate LIBOR + 7.50% or Floor rate of 10.25%, PIK Interest 2.00%      $ 4,630         4,565         4,565   
     Information Services      Senior Secured      April 2015      Interest rate LIBOR + 6.50% or Floor rate of 9.00%      $ 1,250         1,231         1,231   
     Information Services      Senior Secured      October 2016      Interest rate LIBOR + 6.50% or Floor rate of 9.25%      $ 6,600         6,506         6,506   
                        

 

 

     

 

 

     

 

 

  

Total Womensforum.com

                          $ 12,480         12,302         12,302   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               15,119         14,753   
                           

 

 

     

 

 

  

Subtotal: Information Services (2.26%)*

                          15,119         14,753   
                           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

11

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      
Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

Internet Consumer & Business Services

                               

Under 1 Year Maturity

                               

Gazelle, Inc.(13)

      Internet Consumer & Business Services      Senior Secured      October 2014      Interest rate PRIME + 6.50% or Floor rate of 9.75%      $ 1,021       $ 1,006       $ 1,006   

Tectura Corporation(8)(13)

      Internet Consumer & Business Services      Senior Secured      May 2014      Interest rate LIBOR + 10.00% or Floor rate of 13.00%      $ 563         563         180   
     Internet Consumer & Business Services      Senior Secured      May 2014      Interest rate LIBOR + 10.00% or Floor rate of 13.00%      $ 277         277         89   
     Internet Consumer & Business Services      Senior Secured      May 2014      Interest rate LIBOR + 10.00% or Floor rate of 13.00%      $ 6,468         6,467         2,067   
     Internet Consumer & Business Services      Senior Secured      May 2014      Interest rate LIBOR + 8.00% or Floor rate of 11.00%, PIK Interest 1.00%      $ 10,777         10,777         3,445   
     Internet Consumer & Business Services      Senior Secured      May 2014      Interest rate LIBOR + 10.00% or Floor rate of 13.00%      $ 5,000         5,000         1,599   
                        

 

 

     

 

 

     

 

 

  

Total Tectura Corporation

                          $ 23,085         23,084         7,380   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               24,090         8,386   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

Blurb, Inc.(15)

      Internet Consumer & Business Services      Senior Secured      December 2015      Interest rate PRIME + 5.25% or Floor rate of 8.50%      $ 5,616         5,511         5,456   

CashStar, Inc.(13)(15)

      Internet Consumer & Business Services      Senior Secured      June 2016      Interest rate PRIME + 6.25% or Floor rate 10.50%, PIK Interest 1.00%      $ 8,028         7,846         7,993   

Education Dynamics(13)(15)

      Internet Consumer & Business Services      Senior Secured      March 2016     

Interest rate LIBOR + 12.5% or Floor rate 12.50%, PIK Interest 1.50%

      $ 23,779         23,386         23,909   

Gazelle, Inc.(13)(15)

      Internet Consumer & Business Services      Senior Secured      April 2016      Interest rate PRIME + 7.00% or Floor rate of 10.25%, PIK Interest 2.50%      $ 12,443         12,375         12,375   

Just Fabulous, Inc.(14)

      Internet Consumer & Business Services      Senior Secured      February 2017      Interest rate PRIME + 8.25% or Floor rate of 11.50%      $ 5,000         4,879         5,029   

NetPlenish(8)(9)(15)

      Internet Consumer & Business Services      Senior Secured      April 2015      Interest rate FIXED 10.00%      $ 96         96         —     
     Internet Consumer & Business Services      Senior Secured      September 2015      Interest rate FIXED 10.00%      $ 382         374         —     
                        

 

 

     

 

 

     

 

 

  

Total NetPlenish

                          $ 478         470         —     

Reply! Inc.(11)(13)(14)

      Internet Consumer & Business Services      Senior Secured      September 2015      Interest rate PRIME + 7.25% or Floor rate of 11.00%, PIK Interest 2.00%      $ 1,944         1,987         1,989   
     Internet Consumer & Business Services      Senior Secured      September 2015      Interest rate PRIME + 6.88% or Floor rate of 10.13%, PIK Interest 2.00%      $ 8,821         8,840         8,884   

 

See notes to consolidated financial statements.

 

12

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      
Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  
     Internet Consumer & Business Services      Senior Secured      February 2016      Interest rate PRIME + 7.25% or Floor rate of 10.50%, PIK Interest 2.00%      $ 3,046       $ 2,828       $ 2,887   
                        

 

 

     

 

 

     

 

 

  

Total Reply! Inc.

                          $ 13,811         13,655         13,760   

Vaultlogix(13)(14)(15)

      Internet Consumer & Business Services      Senior Secured      September 2016      Interest rate LIBOR + 8.50% or Floor rate of 10.00%, PIK Interest 2.50%      $ 7,999         7,961         7,961   
     Internet Consumer & Business Services      Senior Secured      September 2015      Interest rate LIBOR + 7.00% or Floor rate of 8.50%      $ 7,318         7,386         7,386   
                        

 

 

     

 

 

     

 

 

  

Total Vaultlogix

                          $ 15,317         15,347         15,347   

WaveMarket, Inc.(11)(14)

      Internet Consumer & Business Services      Senior Secured      March 2017      Interest rate PRIME + 6.50% or Floor rate of 9.75%      $ 402         402         402   
     Internet Consumer & Business Services      Senior Secured      September 2016      Interest rate PRIME + 5.75% or Floor rate of 9.50%      $ 10,000         9,961         9,747   
                        

 

 

     

 

 

     

 

 

  

Total WaveMarket, Inc.

                          $ 10,402         10,363         10,149   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               93,832         94,018   
                           

 

 

     

 

 

  

Subtotal: Internet Consumer & Business Services (15.67%)*

                          117,922         102,404   
                           

 

 

     

 

 

  

Media/Content/Info

                               

Under 1 Year Maturity

                               

Zoom Media and Marketing(13)

      Media/Content/Info      Senior Secured      December 2014      Interest rate PRIME + 5.25% or Floor rate of 8.50%      $ 4,000         3,896         3,807   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               3,896         3,807   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

Rhapsody International Inc.(15)

      Media/Content/Info      Senior Secured      April 2018     

Interest rate PRIME + 5.25% or Floor rate of 9.00%, PIK Interest 1.50%

      $ 20,000         19,383         19,383   

Zoom Media and Marketing(13)

      Media/Content/Info      Senior Secured      December 2015      Interest rate PRIME + 7.25% or Floor rate of 10.50%, PIK Interest 3.75%      $ 3,866         3,736         3,729   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               23,119         23,112   
                           

 

 

     

 

 

  

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

                               27,015         26,919   
                           

 

 

     

 

 

  

Medical Devices & Equipment

                               

Under 1 Year Maturity

                               

Oraya Therapeutics, Inc.(9)(11)(14)

      Medical Devices & Equipment      Senior Secured      December 2014      Interest rate FIXED 7.00%      $ 500         500         164   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               500         164   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

Baxano Surgical, Inc.(3)(14)

      Medical Devices & Equipment      Senior Secured      March 2017      Interest rate PRIME + 7.75% or Floor rate of 12.5%      $ 7,500         7,284         7,225   

Home Dialysis Plus(14)

      Medical Devices & Equipment      Senior Secured      April 2017      Interest rate PRIME + 6.35% or Floor rate of 9.60%      $ 10,000         9,804         9,640   

InspireMD, Inc.(3)(5)(10)(14)

      Medical Devices & Equipment      Senior Secured      February 2017      Interest rate PRIME + 5.00% or Floor rate of 10.50%      $ 10,000         9,791         9,791   

 

See notes to consolidated financial statements.

 

13

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      
Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

Medrobotics Corporation(14)(15)

     

Medical Devices &

Equipment

      Senior Secured      March 2016      Interest rate PRIME + 7.85% or Floor rate of 11.10%      $ 4,109       $ 4,082       $ 4,049   

NetBio, Inc.

      Medical Devices & Equipment      Senior Secured      August 2017      Interest rate PRIME + 5.00% or Floor rate of 11.00%      $ 5,000         4,790         4,743   

NinePoint Medical, Inc.(14)(15)

      Medical Devices & Equipment      Senior Secured      January 2016      Interest rate PRIME + 5.85% or Floor rate of 9.10%      $ 5,291         5,301         5,236   

Oraya Therapeutics, Inc.(9)(11)(14)

      Medical Devices & Equipment      Senior Secured      September 2015     

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

      $ 6,132         6,069         4,380   

SonaCare Medical, LLC
(pka US HIFUM LLC)(11)(14)

      Medical Devices & Equipment      Senior Secured      April 2016      Interest rate PRIME + 7.75% or Floor rate of 11.00%      $ 5,167         5,307         5,390   

United Orthopedic Group, Inc.(14)

      Medical Devices & Equipment      Senior Secured      July 2016      Interest rate PRIME + 8.60% or Floor rate of 11.85%      $ 25,000         24,898         24,898   

ViewRay, Inc.(13)(15)

      Medical Devices & Equipment      Senior Secured      June 2017      Interest rate PRIME + 7.00% or Floor rate of 10.25%, PIK Interest 1.50%      $ 15,047         14,585         14,585   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               91,911         89,937   
                           

 

 

     

 

 

  

Subtotal: Medical Devices & Equipment (13.79%)*

                          92,411         90,101   
                           

 

 

     

 

 

  

Semiconductors

                               

Under 1 Year Maturity

                               

Achronix Semiconductor

      Semiconductors      Senior Secured      January 2015      Interest rate PRIME + 10.60% or Floor rate of 13.85%      $ 809       $ 804       $ 804   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               804         804   
                           

 

 

     

 

 

  

1-5 Years Maturity

                               

Avnera Corporation(14)

      Semiconductors      Senior Secured      April 2017      Interest rate PRIME + 5.75% or Floor rate of 9.00%      $ 5,000         4,924         4,924   

SiTime Corporation(14)(15)

      Semiconductors      Senior Secured      September 2016      Interest rate PRIME + 6.50% or Floor rate of 9.75%      $ 3,500         3,504         3,526   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               8,428         8,450   
                           

 

 

     

 

 

  

Subtotal: Semiconductors (1.42%)

                               9,232         9,254   
                           

 

 

     

 

 

  

Software

                               

Under 1 Year Maturity

                               

Clickfox, Inc.(15)

      Software      Senior Secured      September 2014      Interest rate PRIME + 6.75% or Floor rate of 10.00%      $ 2,000         1,987         1,973   

StartApp, Inc.(14)

      Software      Senior Secured      December 2014      Interest rate PRIME + 2.75% or Floor rate of 6.00%      $ 200         193         193   

Touchcommerce, Inc.(15)

      Software      Senior Secured      December 2014      Interest rate PRIME + 2.25% or Floor rate of 6.50%      $ 3,511         3,481         3,356   
                           

 

 

     

 

 

  

Subtotal: Under 1 Year Maturity

                               5,661         5,522   
                           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

14

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

     

Sub-Industry

     

Type of
Investment(1)

     

      Maturity      

Date

     

    Interest Rate and Floor    

      Principal
Amount		      Cost(2)      Value(3)  

1-5 Years Maturity

                               

Clickfox, Inc.(15)

      Software      Senior Secured      November 2015      Interest rate PRIME + 8.25% or Floor rate of 11.50%      $ 5,152       $ 4,911       $ 4,911   

Hillcrest Laboratories, Inc.(15)

      Software      Senior Secured      July 2015      Interest rate PRIME + 7.50% or Floor rate of 10.75%      $ 2,270         2,249         2,252   

Knowledge Adventure, Inc.(14)(15)

      Software      Senior Secured      March 2018      Interest rate PRIME + 8.25% or Floor rate of 11.50%      $ 11,750         11,598         11,598   

Mobile Posse, Inc.(14)(15)

      Software      Senior Secured      December 2016      Interest rate PRIME + 7.50% or Floor rate of 10.75%      $ 3,896         3,804         3,883   

Neos Geosolutions, Inc.(14)(15)

      Software      Senior Secured      May 2016      Interest rate PRIME + 5.75% or Floor rate of 10.50%      $ 3,427         3,488         3,427   

Sonian, Inc.(14)(15)

      Software      Senior Secured      July 2017      Interest rate PRIME + 7.00% or Floor rate of 10.25%      $ 5,500         5,362         5,362   

StartApp, Inc.

      Software      Senior Secured      March 2017      Interest rate PRIME + 7.75% or Floor rate of 11.00%      $ 3,500         3,521         3,554   

Touchcommerce, Inc.(15)

      Software      Senior Secured      June 2017      Interest rate PRIME + 6.00% or Floor rate of 10.25%      $ 5,000         4,690         4,840   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               39,623         39,827   
                           

 

 

     

 

 

  

Subtotal: Software (6.94%)*

                               45,284         45,349   
                           

 

 

     

 

 

  

Specialty Pharmaceuticals

                               

1-5 Years Maturity

                               

Cranford Pharmaceuticals, LLC(13)(14)(15)

      Specialty Pharmaceuticals      Senior Secured      February 2017      Interest rate LIBOR + 9.55% or Floor rate of 10.80%, PIK Interest 1.35%      $ 18,017         17,711         17,711   
     Specialty Pharmaceuticals      Senior Secured      August 2015      Interest rate LIBOR + 8.25% or Floor rate of 9.50%      $ 2,500         2,446         2,446   
                        

 

 

     

 

 

     

 

 

  

Total Cranford Pharmaceuticals, LLC

                          $ 20,517         20,157         20,157   

Rockwell Medical, Inc.(14)(15)

      Specialty Pharmaceuticals      Senior Secured      March 2017      Interest rate PRIME + 9.25% or Floor rate of 12.50%      $ 20,000         20,183         20,060   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               40,340         40,217   
                           

 

 

     

 

 

  

Subtotal: Specialty Pharmaceuticals (6.16%)*

                          40,340         40,217   
                           

 

 

     

 

 

  

Surgical Devices

                               

1-5 Years Maturity

                               

Transmedics, Inc.(11)(14)

      Surgical Devices      Senior Secured      November 2015      Interest rate FIXED 12.95%      $ 7,250         7,111         7,111   
                           

 

 

     

 

 

  

Subtotal: 1-5 Years Maturity

                               7,111         7,111   
                           

 

 

     

 

 

  

Subtotal: Surgical Devices (1.09%)*

                               7,111         7,111   
                           

 

 

     

 

 

  

Total Debt (122.20%)*

                               814,977         798,359   
                           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

15

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment(1)

  

Series

    Shares      Cost(2)      Value(3)  

Equity

               

Biotechnology Tools

               

NuGEN Technologies, Inc.(15)

   Biotechnology Tools   Equity   Preferred Series C      189,394       $ 500       $ 476   
           

 

 

     

 

 

  

Subtotal: Biotechnology Tools (0.07%)*

           500         476   
           

 

 

     

 

 

  

Energy Technology

               

SCIEnergy, Inc.

   Energy Technology   Equity   Preferred Series 1      385,000         761         29   
           

 

 

     

 

 

  

Subtotal: Energy Technology (0.00%)*

             761         29   
           

 

 

     

 

 

  

Communications & Networking

               

GlowPoint, Inc.(3)

   Communications & Networking   Equity   Common Stock      114,192         102         192   

Peerless Network, Inc.

   Communications & Networking   Equity   Preferred Series A      1,000,000         1,000         3,201   

Stoke, Inc.(15)

   Communications & Networking   Equity   Preferred Series E      152,905         500         215   
           

 

 

     

 

 

  

Subtotal: Communications & Networking (0.55%)*

           1,602         3,608   
           

 

 

     

 

 

  

Consumer & Business Products

               

Caivis Acquisition Corporation(15)

   Consumer & Business Products   Equity   Common Stock      295,861         819         597   

IPA Holdings, LLC

   Consumer & Business Products   Equity   LLC Interest      500,000         500         830   

Market Force Information, Inc.

   Consumer & Business Products   Equity   Preferred Series B      187,970         500         500   
           

 

 

     

 

 

  

Subtotal: Consumer & Business Products (0.30%)*

           1,819         1,927   
           

 

 

     

 

 

  

Diagnostic

               

Singulex, Inc.

   Diagnostic   Equity   Common Stock      937,998         750         750   
           

 

 

     

 

 

  

Subtotal: Diagnostic (0.11%)*

           750         750   
           

 

 

     

 

 

  

Drug Delivery

               

AcelRx Pharmaceuticals, Inc.(3)(10)(15)

   Drug Delivery   Equity   Common Stock      54,240         108         642   

Merrion Pharmceuticals, Plc(3)(5)(10)

   Drug Delivery   Equity   Common Stock      20,000         9         —     

Neos Therapeutics, Inc.(15)

   Drug Delivery   Equity   Preferred Series C      300,000         1,500         1,505   

Transcept Pharmaceuticals, Inc.(3)

   Drug Delivery   Equity   Common Stock      41,570         500         129   
           

 

 

     

 

 

  

Subtotal: Drug Delivery (0.35%)*

           2,117         2,276   
           

 

 

     

 

 

  

Drug Discovery & Development

               

Acceleron Pharma, Inc.(3)(15)

   Drug Discovery & Development   Equity   Common Stock      262,786         1,505         9,030   

Aveo Pharmaceuticals, Inc.(3)(10)(15)

   Drug Discovery & Development   Equity   Common Stock      167,864         841         251   

Dicerna Pharmaceuticals, Inc.(3)(15)

   Drug Discovery & Development   Equity   Common Stock      142,858         1,000         4,036   

Inotek Pharmaceuticals Corporation

   Drug Discovery & Development   Equity   Common Stock      15,334         1,500         —     

Merrimack Pharmaceuticals, Inc.(3)

   Drug Discovery & Development   Equity   Common Stock      848,591         3,213         4,122   

Paratek Pharmaceuticals, Inc.

   Drug Discovery & Development   Equity   Common Stock      2,882         5         —     
  Drug Discovery & Development   Equity   Preferred Series A      167,468         1,126         —     
        

 

 

     

 

 

     

 

 

  

Total Paratek Pharmaceuticals, Inc.

            170,350         1,131         —     
           

 

 

     

 

 

  

Subtotal: Drug Discovery & Development (2.67%)*

           9,190         17,439   
           

 

 

     

 

 

  

Information Services

               

Good Technologies, Inc. (pka Visto Corporation)(15)

   Information Services   Equity   Common Stock      500,000         604         —     
           

 

 

     

 

 

  

Subtotal: Information Services (0.00%)*

           604         —     
           

 

 

     

 

 

  

Internet Consumer & Business Services

               

Blurb, Inc.(15)

   Internet Consumer & Business Services   Equity   Preferred Series B      220,653         174         365   

Philotic, Inc.

   Internet Consumer & Business Services   Equity   Common Stock      8,121         93         —     

Progress Financial

   Internet Consumer & Business Services   Equity   Preferred Series G      218,351         250         267   

Trulia, Inc.(3)

   Internet Consumer & Business Services   Equity   Common Stock      29,340         141         951   
           

 

 

     

 

 

  

Subtotal: Internet Consumer & Business Services (0.25%)*

           658         1,583   
           

 

 

     

 

 

  

Media/Content/Info

               

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

   Media/Content/Info   Equity   Common Stock      97,060         1,000         1,358   
           

 

 

     

 

 

  

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

           1,000         1,358   
           

 

 

     

 

 

  

Medical Devices & Equipment

               

Gelesis, Inc.(6)(15)

   Medical Devices & Equipment   Equity   LLC Interest      2,024,092         925         492   

Medrobotics Corporation(15)

   Medical Devices & Equipment   Equity   Preferred Series E      136,798         250         288   

Novasys Medical, Inc.

   Medical Devices & Equipment   Equity   Preferred Series D-1      4,118,444         1,000         —     

Optiscan Biomedical, Corp.(6)(15)

   Medical Devices & Equipment   Equity   Preferred Series B      6,185,567         3,000         440   
  Medical Devices & Equipment   Equity   Preferred Series C      1,927,309         655         145   
  Medical Devices & Equipment   Equity   Preferred Series D      41,352,489         3,945         4,211   
        

 

 

     

 

 

     

 

 

  

Total Optiscan Biomedical, Corp.

          49,465,365         7,600         4,796   
           

 

 

     

 

 

  

Subtotal: Medical Devices & Equipment (0.85%)*

             9,775         5,576   
           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

16

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment(1)

  

Series

    Shares      Cost(2)      Value(3)  

Software

               

Atrenta, Inc.

   Software   Equity   Preferred Series C      1,196,845       $ 986       $ 1,953   
  Software   Equity   Preferred Series D      635,513         508         1,151   
        

 

 

     

 

 

     

 

 

  

Total Atrenta, Inc.

            1,832,358         1,494         3,104   

Box, Inc.(15)

   Software   Equity   Preferred Series B      271,070         251         4,955   
  Software   Equity   Preferred Series C      589,844         872         10,782   
  Software   Equity   Preferred Series D      158,133         500         2,891   
  Software   Equity   Preferred Series D-1      186,766         1,694         3,414   
  Software   Equity   Preferred Series D-2      220,751         2,001         4,035   
  Software   Equity   Preferred Series E      38,183         500         698   
        

 

 

     

 

 

     

 

 

  

Total Box, Inc.

            1,464,747         5,818         26,775   

CapLinked, Inc.

   Software   Equity   Preferred Series A-3      53,614         51         88   

ForeScout Technologies, Inc.

   Software   Equity   Preferred Series D      319,099         398         940   

HighRoads, Inc.

   Software   Equity   Preferred Series B      190,170         307         300   
           

 

 

     

 

 

  

Subtotal: Software (4.78%)*

               8,068         31,207   
           

 

 

     

 

 

  

Specialty Pharmaceuticals

               

QuatRx Pharmaceuticals Company

   Specialty Pharmaceuticals   Equity   Preferred Series E      241,829         750         —     
  Specialty Pharmaceuticals   Equity   Preferred Series E-1      26,955         —           —     
  Specialty Pharmaceuticals   Equity   Preferred Series G      4,667,636         —           —     
        

 

 

     

 

 

     

 

 

  

Total QuatRx Pharmaceuticals Company

            4,936,420         750         —     
           

 

 

     

 

 

  

Subtotal: Specialty Pharmaceuticals (0.00%)*

             750         —     
           

 

 

     

 

 

  

Surgical Devices

               

Gynesonics, Inc.(15)

   Surgical Devices   Equity   Preferred Series B      219,298         250         78   
  Surgical Devices   Equity   Preferred Series C      656,538         282         129   
  Surgical Devices   Equity   Preferred Series D      1,621,553         580         804   
        

 

 

     

 

 

     

 

 

  

Total Gynesonics, Inc.

            2,497,389         1,112         1,011   

Transmedics, Inc.

   Surgical Devices   Equity   Preferred Series B      88,961         1,100         315   
  Surgical Devices   Equity   Preferred Series C      119,999         300         211   
  Surgical Devices   Equity   Preferred Series D      260,000         650         923   
        

 

 

     

 

 

     

 

 

  

Total Transmedics, Inc

            468,960         2,050         1,449   
           

 

 

     

 

 

  

Subtotal: Surgical Devices (0.38%)*

               3,162         2,460   
           

 

 

     

 

 

  

Total Equity (10.52%)*

               40,756         68,689   
           

 

 

     

 

 

  

Warrant

               

Biotechnology Tools

               

Labcyte, Inc.(15)

   Biotechnology Tools   Warrant   Preferred Series C      1,127,624         323         129   
           

 

 

     

 

 

  

Subtotal: Biotechnology Tools (0.02%)*

               323         129   
           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

17

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment(1)

  

Series

    Shares      Cost(2)      Value(3)  

Energy Technology

               

Agrivida, Inc.(15)

   Energy Technology   Warrant   Preferred Series C      77,447       $ 120       $ 285   

Alphabet Energy, Inc.(15)

   Energy Technology   Warrant   Preferred Series A      86,329         82         139   

American Superconductor Corporation(3)

   Energy Technology   Warrant   Common Stock      512,820         391         152   

Brightsource Energy, Inc.(15)

   Energy Technology   Warrant   Preferred Series 1      175,000         779         135   

Calera, Inc.(15)

   Energy Technology   Warrant   Preferred Series C      44,529         513         —     

EcoMotors, Inc.(15)

   Energy Technology   Warrant   Preferred Series B      437,500         308         498   

Fluidic, Inc.

   Energy Technology   Warrant   Preferred Series C      59,665         102         79   

Fulcrum Bioenergy, Inc.

   Energy Technology   Warrant   Preferred Series C-1      280,897         274         185   

Glori Energy, Inc.(12)

   Energy Technology   Warrant   Preferred Series C      145,932         165         54   

GreatPoint Energy, Inc.(15)

   Energy Technology   Warrant   Preferred Series D-1      393,212         548         —     

Polyera Corporation(15)

   Energy Technology   Warrant   Preferred Series C      161,575         69         48   

Propel Fuels(15)

   Energy Technology   Warrant   Preferred Series C      3,200,000         211         141   

SCIEnergy, Inc.

   Energy Technology   Warrant   Common Stock      530,811         181         —     
  Energy Technology   Warrant   Preferred Series 1      145,811         50         —     
        

 

 

     

 

 

     

 

 

  

Total SCI Energy, Inc.

            676,622         231         —     

Scifiniti (pka Integrated Photovoltaics, Inc.)(15)

   Energy Technology   Warrant   Preferred Series B      390,000         82         83   

Solexel, Inc.(15)

   Energy Technology   Warrant   Preferred Series C      1,171,625         1,162         553   

Stion Corporation(6)

   Energy Technology   Warrant   Preferred Series Seed      2,154         1,378         1,495   

TAS Energy, Inc.

   Energy Technology   Warrant   Preferred Series F      428,571         299         419   

TPI Composites, Inc.

   Energy Technology   Warrant   Preferred Series B      160         273         425   

Trilliant, Inc.(15)

   Energy Technology   Warrant   Preferred Series A      320,000         162         7   
           

 

 

     

 

 

  

Subtotal: Energy Technology (0.71%)*

               7,149         4,698   
           

 

 

     

 

 

  

Communications & Networking

               

Intelepeer, Inc.(15)

   Communications & Networking   Warrant   Preferred Series C      117,958         101         94   

OpenPeak, Inc.

   Communications & Networking   Warrant   Common Stock      108,982         149         174   

PeerApp, Inc.

   Communications & Networking   Warrant   Preferred Series B      298,779         61         46   

Peerless Network, Inc.

   Communications & Networking   Warrant   Preferred Series A      135,000         95         330   

Ping Identity Corporation

   Communications & Networking   Warrant   Preferred Series B      1,136,277         52         109   

Spring Mobile Solutions, Inc.

   Communications & Networking   Warrant   Preferred Series D      2,834,375         418         559   

Stoke, Inc.(15)

   Communications & Networking   Warrant   Preferred Series C      158,536         53         1   
  Communications & Networking   Warrant   Preferred Series D      118,181         65         1   
        

 

 

     

 

 

     

 

 

  

Total Stoke, Inc.

            276,717         118         2   
           

 

 

     

 

 

  

Subtotal: Communications & Networking (0.20%)*

             994         1,314   
           

 

 

     

 

 

  

Consumer & Business Products

               

Intelligent Beauty, Inc.(15)

   Consumer & Business Products   Warrant   Preferred Series B      190,234         230         708   

IPA Holdings, LLC

   Consumer & Business Products   Warrant   Common Stock      650,000         275         517   

Market Force Information, Inc.

   Consumer & Business Products   Warrant   Preferred Series A      99,286         24         30   
           

 

 

     

 

 

  

Subtotal: Consumer & Business Products (0.08%)*

             529         1,255   
           

 

 

     

 

 

  

Diagnostic

               

Navidea Biopharmaceuticals, Inc. (pka Neoprobe)(3)(15)

   Diagnostic   Warrant   Common Stock      333,333         244         108   
           

 

 

     

 

 

  

Subtotal: Diagnostic (0.02%)*

               244         108   
           

 

 

     

 

 

  

Drug Delivery

               

AcelRx Pharmaceuticals, Inc.(3)(10)(15)

   Drug Delivery   Warrant   Common Stock      176,730         786         983   

Alexza Pharmaceuticals, Inc.(3)

   Drug Delivery   Warrant   Common Stock      37,639         645         —     

BIND Therapeutics, Inc.(3)(15)

   Drug Delivery   Warrant   Common Stock      71,359         366         141   

Celsion Corporation(3)

   Drug Delivery   Warrant   Common Stock      97,493         227         210   

Dance Biopharm, Inc.(15)

   Drug Delivery   Warrant   Preferred Series A      97,701         74         159   

kaleo, Inc.

   Drug Delivery   Warrant   Preferred Series B      82,500         594         1,062   

Neos Therapeutics, Inc.(15)

   Drug Delivery   Warrant   Preferred Series C      60,000         113         113   

Revance Therapeutics, Inc.(3)

   Drug Delivery   Warrant   Common Stock      53,511         557         477   

Transcept Pharmaceuticals, Inc.(3)

   Drug Delivery   Warrant   Common Stock      61,452         87         2   
           

 

 

     

 

 

  

Subtotal: Drug Delivery (0.48%)*

               3,449         3,147   
           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

18

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment(1)

  

Series

    Shares      Cost(2)      Value(3)  

Drug Discovery & Development

               

Acceleron Pharma, Inc.(3)(15)

   Drug Discovery & Development   Warrant   Common Stock      11,611       $ 39       $ 249   

ADMA Biologics, Inc.(3)

   Drug Discovery & Development   Warrant   Common Stock      66,550         218         170   

Anthera Pharmaceuticals, Inc.(3)(15)

   Drug Discovery & Development   Warrant   Common Stock      40,178         984         4   

Cempra, Inc.(3)

   Drug Discovery & Development   Warrant   Common Stock      138,797         458         604   

Chroma Therapeutics, Ltd.(5)(10)

   Drug Discovery & Development   Warrant   Preferred Series D      325,261         490         500   

Cleveland BioLabs, Inc.(3)(15)

   Drug Discovery & Development   Warrant   Common Stock      156,250         105         31   

Concert Pharmaceuticals, Inc.(3)

   Drug Discovery & Development   Warrant   Common Stock      70,796         367         202   

Coronado Biosciences, Inc.(3)

   Drug Discovery & Development   Warrant   Common Stock      73,009         142         44   

Dicerna Pharmaceuticals, Inc.(3)(15)

   Drug Discovery & Development   Warrant   Common Stock      200         28         —     

Horizon Pharma, Inc.(3)

   Drug Discovery & Development   Warrant   Common Stock      22,408         231         46   

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

   Drug Discovery & Development   Warrant   Common Stock      37,174         218         202   
           

 

 

     

 

 

  

Subtotal: Drug Discovery & Development (0.31%)*

             3,280         2,052   
           

 

 

     

 

 

  

Electronics & Computer Hardware

               

Clustrix, Inc.

   Electronics & Computer Hardware   Warrant   Common Stock      50,000         12         18   

Identive Group, Inc.(3)

   Electronics & Computer Hardware   Warrant   Common Stock      992,084         247         467   
           

 

 

     

 

 

  

Subtotal: Electronics & Computer Hardware (0.07%)*

             259         485   
           

 

 

     

 

 

  

Healthcare Services, Other

               

MDEverywhere, Inc.

   Healthcare Services, Other   Warrant   Common Stock      129         94         33   
           

 

 

     

 

 

  

Subtotal: Healthcare Services, Other (0.01%)*

             94         33   
           

 

 

     

 

 

  

Information Services

               

Cha Cha Search, Inc.(15)

   Information Services   Warrant   Preferred Series G      48,232         59         10   

InXpo, Inc.(15)

   Information Services   Warrant   Preferred Series C      648,400         98         30   
  Information Services   Warrant   Preferred Series C-1      582,015         49         27   
        

 

 

     

 

 

     

 

 

  

Total InXpo, Inc.

            1,230,415         147         57   

Jab Wireless, Inc.(15)

   Information Services   Warrant   Preferred Series A      266,567         265         282   

RichRelevance, Inc.(15)

   Information Services   Warrant   Preferred Series E      112,612         98         —     
           

 

 

     

 

 

  

Subtotal: Information Services (0.16%)*

               569         349   
           

 

 

     

 

 

  

Internet Consumer & Business Services

               

Blurb, Inc.(15)

   Internet Consumer & Business Services   Warrant   Preferred Series B      218,684         299         108   
  Internet Consumer & Business Services   Warrant   Preferred Series C      234,280         636         183   
        

 

 

     

 

 

     

 

 

  

Total Blurb, Inc.

            452,964         935         291   

CashStar, Inc.(15)

   Internet Consumer & Business Services   Warrant   Preferred Series C-2      727,272         130         70   

Gazelle, Inc.(15)

   Internet Consumer & Business Services   Warrant   Preferred Series D      151,827         165         —     

Just Fabulous, Inc.

   Internet Consumer & Business Services   Warrant   Preferred Series B      137,456         589         1,095   

Prism Education Group, Inc.(15)

   Internet Consumer & Business Services   Warrant   Preferred Series B      200,000         43         —     

Progress Financial

   Internet Consumer & Business Services   Warrant   Preferred Series G      174,562         77         53   

Reply! Inc.

   Internet Consumer & Business Services   Warrant   Preferred Series B      137,225         320         144   

ShareThis, Inc.(15)

   Internet Consumer & Business Services   Warrant   Preferred Series C      493,502         547         250   

Tectura Corporation

   Internet Consumer & Business Services   Warrant   Preferred Series B-1      253,378         51         —     

WaveMarket, Inc.

   Internet Consumer & Business Services   Warrant   Preferred Series B-1      1,083,779         106         74   
           

 

 

     

 

 

  

Subtotal: Internet Consumer & Business Services (0.30%)

             2,963         1,977   
           

 

 

     

 

 

  

Media/Content/Info

               

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

   Media/Content/Info   Warrant   Common Stock      73,345         60         500   

Glam Media, Inc.(15)

   Media/Content/Info   Warrant   Preferred Series D      407,457         482         —     

Rhapsody International Inc.(15)

   Media/Content/Info   Warrant   Common Stock      715,755         384         385   

Zoom Media and Marketing

   Media/Content/Info   Warrant   Preferred Series A      1,204         348         285   
           

 

 

     

 

 

  

Subtotal: Media/Content/Info (0.18%)*

               1,274         1,170   
           

 

 

     

 

 

  

 

See notes to consolidated financial statements.

 

19

Table of Contents

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2014

(unaudited)

(dollars in thousands)

 

Portfolio Company

  

Sub-Industry

  

Type of Investment(1)

  

Series

    Shares      Cost(2)      Value(3)  

Medical Devices & Equipment

               

Baxano Surgical, Inc.(3)

   Medical Devices & Equipment   Warrant   Common Stock      882,353       $ 440       $ 319   

Gelesis, Inc.(6)(15)

   Medical Devices & Equipment   Warrant   LLC Interest      263,688         78         5   

Home Dialysis Plus

   Medical Devices & Equipment   Warrant   Preferred Series A      300,000         245         313   

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

   Medical Devices & Equipment   Warrant   Common Stock      168,351         242         221   

Medrobotics Corporation(15)

   Medical Devices & Equipment   Warrant   Preferred Series E      455,539         370         339   

MELA Sciences, Inc.(3)

   Medical Devices & Equipment   Warrant   Common Stock      693,202