Charles
E. Harris
|
Douglas
W. Jamison
|
Daniel
B. Wolfe
|
Chairman
and Chief Executive Officer
|
President
and Chief Operating Officer
|
Chief
Financial Officer
|
Managing
Director
|
Managing
Director
|
Managing
Director
|
|
||
Michael
A. Janse
|
Alexei
A. Andreev
|
|
Executive
Vice President
|
Executive
Vice President
|
|
Managing
Director
|
Managing
Director
|
|
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF ASSETS AND
LIABILITIES*
|
March
31, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
|||||||
Investments,
in portfolio securities at value
|
|||||||
(cost:
$84,013,804 and $82,677,528, respectively)
|
$
|
83,097,863
|
$
|
78,110,384
|
|||
Investments,
in U.S. Treasury obligations at value
|
|||||||
(cost:
$52,346,992 and $59,552,933, respectively)
|
53,589,100
|
60,193,593
|
|||||
Cash
and cash equivalents
|
210,154
|
330,009
|
|||||
Restricted
funds
|
2,520,310
|
2,667,020
|
|||||
Receivable
from portfolio company
|
0
|
524
|
|||||
Interest
receivable
|
497,488
|
647,337
|
|||||
Prepaid
expenses
|
412,589
|
488,667
|
|||||
Other
assets
|
445,135
|
455,798
|
|||||
Total
assets
|
$
|
140,772,639
|
$
|
142,893,332
|
|||
LIABILITIES
& NET ASSETS
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
4,218,484
|
$
|
4,515,463
|
|||
Deferred
rent
|
12,866
|
14,525
|
|||||
Total
liabilities
|
4,231,350
|
4,529,988
|
|||||
Net
assets
|
$
|
136,541,289
|
$
|
138,363,344
|
|||
Net
assets are comprised of:
|
|||||||
Preferred
stock, $0.10 par value, 2,000,000 shares authorized; none
issued
|
$
|
0
|
$
|
0
|
|||
Common
stock, $0.01 par value, 45,000,000 shares authorized at
|
|||||||
3/31/08
and 12/31/07; 25,143,313 issued at 3/31/08 and 12/31/07
|
251,434
|
251,434
|
|||||
Additional
paid in capital
|
162,394,671
|
160,927,691
|
|||||
Accumulated
net realized loss
|
(23,025,452
|
)
|
(15,483,766
|
)
|
|||
Accumulated
unrealized appreciation (depreciation) of investments
|
326,167
|
(3,926,484
|
)
|
||||
Treasury
stock, at cost (1,828,740 shares at 3/31/08 and 12/31/07)
|
(3,405,531
|
)
|
(3,405,531
|
)
|
|||
Net
assets
|
$
|
136,541,289
|
$
|
138,363,344
|
|||
Shares
outstanding
|
23,314,573
|
23,314,573
|
|||||
Net
asset value per outstanding share
|
$
|
5.86
|
$
|
5.93
|
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS*
(Unaudited)
|
Three
Months Ended
|
Three
Months Ended
|
||||||
March
31, 2008
|
March
31, 2007
|
||||||
Investment
income:
|
|||||||
Interest
from:
|
|||||||
Fixed
income securities
|
$
|
576,302
|
$
|
652,498
|
|||
Total
investment income
|
576,302
|
652,498
|
|||||
Expenses:
|
|||||||
Salaries,
benefits and stock-based compensation
|
2,433,295
|
2,534,766
|
|||||
Administration
and operations
|
301,855
|
380,865
|
|||||
Professional
fees
|
138,232
|
182,195
|
|||||
Rent
|
57,854
|
59,507
|
|||||
Directors'
fees and expenses
|
105,146
|
141,196
|
|||||
Depreciation
|
13,985
|
15,313
|
|||||
Custodian
fees
|
6,553
|
5,774
|
|||||
Total
expenses
|
3,056,920
|
3,319,616
|
|||||
Net
operating loss
|
(2,480,618
|
)
|
(2,667,118
|
)
|
|||
Net
realized loss from investments:
|
|||||||
Realized
(loss) from investments
|
(5,014,870
|
)
|
(674
|
)
|
|||
Income
tax expense
|
46,198
|
84,905
|
|||||
Net
realized (loss) from investments
|
(5,061,068
|
)
|
(85,579
|
)
|
|||
Net
decrease (increase) in unrealized
|
|||||||
depreciation
on investments:
|
|||||||
Change
as a result of investment sales
|
5,014,653
|
0
|
|||||
Change
on investments held
|
(762,002
|
)
|
(3,637,463
|
)
|
|||
Change
in unrealized depreciation on investments
|
4,252,651
|
(3,637,463
|
)
|
||||
Net
decrease (increase) in unrealized depreciation on
investments
|
4,252,651
|
(3,637,463
|
)
|
||||
Net
decrease in net assets resulting from operations:
|
|||||||
Total
|
$
|
(3,289,035
|
)
|
$
|
(6,390,160
|
)
|
|
Per
average basic and diluted outstanding share
|
$
|
(0.14
|
)
|
$
|
(0.30
|
)
|
|
Average
outstanding shares
|
23,314,573
|
21,277,576
|