Venture
Capital for Tiny Technology
|
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
|
YTD
6/30/08
|
|||||||||||
Total
Incremental Investments
|
$
|
489,999
|
$
|
6,240,118
|
$
|
3,812,600
|
$
|
14,837,846
|
$
|
16,251,339
|
$
|
24,408,187
|
$
|
20,595,161
|
$
|
10,847,095
|
|||||||||
No.
of New Investments
|
1
|
7
|
5
|
8
|
4
|
6
|
7
|
2
|
|||||||||||||||||
No.
of Follow-On Investment Rounds
|
0
|
1
|
5
|
21
|
13
|
14
|
20
|
13
|
|||||||||||||||||
No.
of Rounds Led
|
0
|
1
|
0
|
2
|
0
|
7
|
3
|
3
|
|||||||||||||||||
Average
Dollar Amount - Initial
|
$
|
489,999
|
$
|
784,303
|
$
|
437,156
|
$
|
911,625
|
$
|
1,575,000
|
$
|
2,383,424
|
$
|
1,086,441
|
$
|
1,122,250
|
|||||||||
Average
Dollar Amount - Follow-On
|
N/A
|
$
|
750,000
|
$
|
325,364
|
$
|
359,278
|
$
|
765,488
|
$
|
721,974
|
$
|
649,504
|
$
|
661,738
|
![]() |
![]() |
![]() |
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
|
|
August
7, 2008
|
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF ASSETS AND
LIABILITIES
|
June
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
|||||||
Investments,
in portfolio securities at value
|
|||||||
(cost:
$88,459,760 and $82,677,528, respectively)
|
$
|
92,335,524
|
$
|
78,110,384
|
|||
Investments,
in U.S. Treasury obligations at value
|
|||||||
(cost:
$60,984,874 and $59,552,933, respectively)
|
61,425,025
|
60,193,593
|
|||||
Cash
and cash equivalents
|
688,119
|
330,009
|
|||||
Restricted
funds
|
53,871
|
2,667,020
|
|||||
Receivable
from portfolio company
|
21,500
|
524
|
|||||
Interest
receivable
|
573,686
|
647,337
|
|||||
Prepaid
expenses
|
263,363
|
488,667
|
|||||
Other
assets
|
425,895
|
455,798
|
|||||
Total
assets
|
$
|
155,786,983
|
$
|
142,893,332
|
Accounts
payable and accrued liabilities
|
$
|
1,996,853
|
$
|
4,515,463
|
|||
Deferred
rent
|
11,290
|
14,525
|
|||||
Total
liabilities
|
2,008,143
|
4,529,988
|
|||||
Net
assets
|
$
|
153,778,840
|
$
|
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 6/30/08
and
12/31/07; 27,688,313 issued at 6/30/08 and 25,143,313 issued
at
12/31/07
|
276,884
|
251,434
|
|||||
Additional
paid in capital
|
178,252,063
|
160,927,691
|
|||||
Accumulated
net realized loss
|
(25,660,491
|
)
|
(15,483,766
|
)
|
|||
Accumulated
unrealized appreciation (depreciation) of investments
|
4,315,915
|
(3,926,484
|
)
|
||||
Treasury
stock, at cost (1,828,740 shares at 6/30/08 and 12/31/07)
|
(3,405,531
|
)
|
(3,405,531
|
)
|
|||
Net
assets
|
$
|
153,778,840
|
$
|
138,363,344
|
|||
Shares
outstanding
|
25,859,573
|
23,314,573
|
|||||
Net
asset value per outstanding share
|
$
|
5.95
|
$
|
5.93
|
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
Investment
income:
|
|||||||||||||
Interest
from:
|
|||||||||||||
Fixed-income
securities
|
$
|
464,456
|
$
|
637,701
|
$
|
1,040,758
|
$
|
1,290,199
|
|||||
Miscellaneous
income
|
3,169
|
0
|
3,169
|
0
|
|||||||||
Total
investment income
|
467,625
|
637,701
|
1,043,927
|
1,290,199
|
|||||||||
Expenses:
|
|||||||||||||
Salaries,
benefits and stock-based compensation
|
2,461,802
|
2,644,284
|
4,895,097
|
5,179,050
|
|||||||||
Administration
and operations
|
283,361
|
357,178
|
585,216
|
738,043
|
|||||||||
Professional
fees
|
201,866
|
335,067
|
340,098
|
517,262
|
|||||||||
Rent
|
59,748
|
58,813
|
117,602
|
118,320
|
|||||||||
Directors’
fees and expenses
|
79,169
|
112,157
|
184,315
|
253,353
|
|||||||||
Depreciation
|
13,819
|
15,908
|
27,804
|
31,221
|
|||||||||
Custodian
fees
|
6,143
|
5,961
|
12,696
|
11,735
|
|||||||||
Total
expenses
|
3,105,908
|
3,529,368
|
6,162,828
|
6,848,984
|
|||||||||
Net
operating loss
|
(2,638,283
|
)
|
(2,891,667
|
)
|
(5,118,901
|
)
|
(5,558,785
|
)
|
|||||
Net
realized gain (loss) from investments:
|
|||||||||||||
Realized
gain (loss) from investments
|
3,912
|
(8,213
|
)
|
(5,010,958
|
)
|
(8,887
|
)
|
||||||
Income
tax expense
|
668
|
0
|
46,866
|
84,905
|
|||||||||
Net
realized gain (loss) from investments
|
3,244
|
(8,213
|
)
|
(5,057,824
|
)
|
(93,792
|
)
|
||||||
Net
decrease (increase) in unrealized depreciation on
investments:
|
|||||||||||||
Change
as a result of investment sales
|
0
|
0
|
5,014,653
|
0
|
|||||||||
Change
on investments held
|
3,
989,748
|
(1,193,764
|
)
|
3,227,746
|
(4,831,227
|
)
|
|||||||
Net
decrease (increase) in unrealized depreciation on
investments
|
3,
989,748
|
(1,193,764
|
)
|
8,242,399
|
(4,831,227
|
)
|
|||||||
Net
increase (decrease) in net assets resulting from
operations
|
$
|
1,354,709
|
$
|
(4,093,644
|
)
|
$
|
(1,934,326
|
)
|
$
|
(10,483,804
|
)
|
||
Per
average basic and diluted outstanding share
|
$
|
0.06
|
$
|
(0.19
|
)
|
$
|
(0.08
|
)
|
$
|
(0.49
|
)
|
||
Average
outstanding shares
|
23,622,210
|
21,721,591
|
23,468,392
|
21,500,810
|