New York
|
13-3119827
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer Identification No.)
|
111 West 57th Street, New York, New York
|
10019
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Yes x
|
No ¨
|
Yes x
|
No ¨
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
|
Non-accelerated
filer ¨
|
Smaller
reporting company ¨
|
Yes ¨
|
No x
|
Class
|
Outstanding at August 6,
2009
|
|
Common
Stock, $0.01 par value per share
|
25,859,573
shares
|
Page Number
|
||||
PART
I. FINANCIAL INFORMATION
|
||||
Item
1. Consolidated Financial Statements
|
1 | |||
Consolidated
Statements of Assets and Liabilities
|
2 | |||
Consolidated
Statements of Operations
|
3 | |||
Consolidated
Statements of Cash Flows
|
4 | |||
Consolidated
Statements of Changes in Net Assets
|
5 | |||
Consolidated
Schedule of Investments
|
6 | |||
Notes
to Consolidated Financial Statements
|
21 | |||
Financial
Highlights
|
33 | |||
Item
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
34 | |||
Background
and Overview
|
34 | |||
Historical
Investment Track Record
|
35 | |||
Commercialization
of Nanotechnology by Our Portfolio Companies
|
36 | |||
Current
Venture Capital Portfolio
|
38 | |||
Current
Business Environment
|
40 | |||
Results
of Operations
|
42 | |||
Financial
Condition
|
48 | |||
Liquidity
|
49 | |||
Capital
Resources
|
50 | |||
Critical
Accounting Policies
|
50 | |||
Recent
Developments – Portfolio Companies
|
53 | |||
Recent
Developments – Other
|
53 | |||
Forward-Looking
Statements
|
53 | |||
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
54 | |||
Item
4. Controls and Procedures
|
55 | |||
PART
II. OTHER INFORMATION
|
||||
Item
1A. Risk Factors
|
56 | |||
Item
4. Submission of Matters to a Vote of Security Holders
|
58 | |||
Item
6. Exhibits
|
58 | |||
Signatures
|
59 | |||
Exhibit
Index
|
60 |
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF ASSETS AND
LIABILITIES
|
June 30, 2009
|
December 31, 2008
|
|||||||
(Unaudited)
|
||||||||
Investments,
in portfolio securities at value:
|
||||||||
Unaffiliated
companies (cost: $26,273,391 and
|
||||||||
$24,208,281,
respectively)
|
$ | 14,617,481 | $ | 12,086,503 | ||||
Non-controlled
affiliated companies (cost: $59,737,665
|
||||||||
and
$60,796,720, respectively)
|
44,796,511 | 39,650,187 | ||||||
Controlled
affiliated companies (cost: $6,978,511
|
||||||||
and
$6,085,000, respectively)
|
4,545,819 | 5,228,463 | ||||||
Total,
investments in private portfolio companies at value
|
||||||||
(cost:
$92,989,567 and $91,090,001, respectively)
|
$ | 63,959,811 | $ | 56,965,153 | ||||
Investments,
in U.S. Treasury obligations at value
|
||||||||
(cost:
$46,379,087 and $52,956,288, respectively)
|
46,395,504 | 52,983,940 | ||||||
Cash
and cash equivalents
|
1,271,390 | 692,309 | ||||||
Restricted
funds (Note 10)
|
189,369 | 191,955 | ||||||
Interest
receivable
|
25,774 | 56 | ||||||
Prepaid
expenses
|
232,113 | 484,567 | ||||||
Other
assets
|
281,886 | 309,621 | ||||||
Total
assets
|
$ | 112,355,847 | $ | 111,627,601 |
Accounts
payable and accrued liabilities (Note 10)
|
$ | 1,937,885 | $ | 2,088,348 | ||||
Deferred
rent
|
4,989 | 8,140 | ||||||
Total
liabilities
|
1,942,874 | 2,096,488 | ||||||
Net
assets
|
$ | 110,412,973 | $ | 109,531,113 | ||||
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
|
||||||||
6/30/09
and 12/31/08; 27,688,313 issued at
|
||||||||
6/30/09
and 12/31/08
|
276,884 | 276,884 | ||||||
Additional
paid in capital (Note 6)
|
182,663,424 | 181,251,507 | ||||||
Accumulated
net operating and realized loss
|
(40,108,465 | ) | (34,494,551 | ) | ||||
Accumulated
unrealized depreciation of investments
|
(29,013,339 | ) | (34,097,196 | ) | ||||
Treasury
stock, at cost (1,828,740 shares at 6/30/09 and
|
||||||||
12/31/08)
|
(3,405,531 | ) | (3,405,531 | ) | ||||
Net
assets
|
$ | 110,412,973 | $ | 109,531,113 | ||||
Shares
outstanding
|
25,859,573 | 25,859,573 | ||||||
Net
asset value per outstanding share
|
$ | 4.27 | $ | 4.24 |
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Investment
income:
|
||||||||||||||||
Interest
from:
|
||||||||||||||||
Fixed-income
securities and bridge notes (Note 3)
|
$ | 75,084 | $ | 464,456 | $ | 39,185 | $ | 1,040,758 | ||||||||
Miscellaneous
income
|
8,750 | 3,169 | 21,088 | 3,169 | ||||||||||||
Total
investment income
|
83,834 | 467,625 | 60,273 | 1,043,927 | ||||||||||||
Expenses:
|
||||||||||||||||
Salaries,
benefits and stock-based compensation (Note
6)
|
1,506,597 | 2,461,802 | 2,893,937 | 4,895,097 | ||||||||||||
Administration
and operations
|
231,161 | 283,361 | 521,596 | 585,216 | ||||||||||||
Professional
fees
|
152,291 | 201,866 | 367,541 | 340,098 | ||||||||||||
Rent
|
78,998 | 59,748 | 157,061 | 117,602 | ||||||||||||
Directors’
fees and expenses
|
89,100 | 79,169 | 173,609 | 184,315 | ||||||||||||
Depreciation
|
12,878 | 13,819 | 25,737 | 27,804 | ||||||||||||
Custodian
fees
|
11,080 | 6,143 | 17,942 | 12,696 | ||||||||||||
Total
expenses
|
2,082,105 | 3,105,908 | 4,157,423 | 6,162,828 | ||||||||||||
Net
operating loss
|
(1,998,271 | ) | (2,638,283 | ) | (4,097,150 | ) | (5,118,901 | ) | ||||||||
Net
realized (loss) gain from investments:
|
||||||||||||||||
Realized
(loss) gain from:
|
||||||||||||||||
Unaffiliated
companies
|
(1,511,042 | ) | 3,420 | (1,514,330 | ) | 3,420 | ||||||||||
Non-Controlled
affiliated companies
|
0 | 0 | 0 | (5,014,653 | ) | |||||||||||
U.S.
Treasury obligations/other
|
0 | 492 | (325 | ) | 275 | |||||||||||
Realized
(loss) gain from investments
|
(1,511,042 | ) | 3,912 | (1,514,655 | ) | (5,010,958 | ) | |||||||||
Income
tax expense (Note 7)
|
1,729 | 668 | 2,109 | 46,866 | ||||||||||||
Net
realized (loss) gain from investments
|
(1,512,771 | ) | 3,244 | (1,516,764 | ) | (5,057,824 | ) | |||||||||
Net decrease in unrealized depreciation
on investments:
|
||||||||||||||||
Change
as a result of investment sales
|
1,511,042 | 0 | 1,511,042 | 5,014,653 | ||||||||||||
Change
on investments held
|
2,421,367 | 3,989,748 | 3,572,815 | 3,227,746 | ||||||||||||
Net
decrease in unrealized depreciation on
investments
|
3,932,409 | 3,989,748 | 5,083,857 | 8,242,399 | ||||||||||||
Net
increase (decrease) in net assets resulting from
operations
|
$ | 421,367 | $ | 1,354,709 | $ | (530,057 | ) | $ | (1,934,326 | ) | ||||||
Per
average basic and diluted outstanding
share
|
$ | 0.02 | $ | 0.06 | $ | (0.02 | ) | $ | (0.08 | ) | ||||||
Average
outstanding shares
|
25,859,573 | 23,622,210 | 25,859,573 | 23,468,392 |
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
Six Months Ended
|
Six Months Ended
|
|||||||
June 30, 2009
|
June 30, 2008
|
|||||||
Cash
flows used in operating activities:
|
||||||||
Net
decrease in net assets resulting from operations
|
$ | (530,057 | ) | $ | (1,934,326 | ) | ||
Adjustments
to reconcile net decrease in net assets resulting
|
||||||||
from
operations to net cash used in operating activities:
|
||||||||
Net
realized and unrealized gain on investments
|
(3,569,202 | ) | (3,231,441 | ) | ||||
Depreciation
of fixed assets, amortization of premium
|
||||||||
or
discount on U.S. government securities, and
|
||||||||
bridge
note interest
|
73,663 | 82,877 | ||||||
Stock-based
compensation expense
|
1,411,917 | 2,966,325 | ||||||
Changes
in assets and liabilities:
|
||||||||
Restricted
funds
|
2,586 | 2,613,149 | ||||||
Receivable
from portfolio company
|
0 | (20,976 | ) | |||||
Interest
receivable
|
4,317 | 73,651 | ||||||
Prepaid
expenses
|
252,454 | 225,304 | ||||||
Other
assets
|
3,312 | 3,894 | ||||||
Accounts
payable and accrued liabilities
|
(150,463 | ) | (2,518,610 | ) | ||||
Deferred
rent
|
(3,151 | ) | (3,235 | ) | ||||
Net
cash used in operating activities
|
(2,504,624 | ) | (1,743,388 | ) | ||||
Cash
flows from investing activities:
|
||||||||
Purchase
of U.S. government securities
|
(103,318,117 | ) | (66,940,804 | ) | ||||
Sale
of U.S. government securities
|
109,851,434 | 65,395,679 | ||||||
Investment
in private placements and bridge loans
|
(3,451,549 | ) | (10,847,095 | ) | ||||
Proceeds
from sale of investments
|
3,250 | 112,234 | ||||||
Purchase
of fixed assets
|
(1,313 | ) | (2,013 | ) | ||||
Net
cash provided by (used in) investing activities
|
3,083,705 | (12,281,999 | ) | |||||
Cash
flows from financing activities:
|
||||||||
Net
cash provided by financing activities
|
0 | 14,383,497 | ||||||
Net
increase in cash and cash equivalents:
|
||||||||
Cash
and cash equivalents at beginning of the period
|
692,309 | 330,009 | ||||||
Cash
and cash equivalents at end of the period.
|
1,271,390 | 688,119 | ||||||
Net
increase in cash and cash equivalents
|
$ | 579,081 | $ | 358,110 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Income
taxes paid
|
$ | 2,109 | $ | 46,325 |
HARRIS
& HARRIS GROUP, INC.
CONSOLIDATED
STATEMENTS OF CHANGES IN NET ASSETS
|
Six Months Ended
|
Year Ended
|
|||||||
June 30, 2009
|
December 31, 2008
|
|||||||
(Unaudited)
|
||||||||
Changes
in net assets from operations:
|
||||||||
Net
operating loss
|
$ | (4,097,150 | ) | $ | (10,687,151 | ) | ||
Net
realized loss on investments
|
(1,516,764 | ) | (8,323,634 | ) | ||||
Net
decrease in unrealized depreciation on investments as a result of
sales
|
1,511,042 | 8,292,072 | ||||||
Net
decrease (increase) in unrealized depreciation on investments
held
|
3,572,815 | (38,462,784 | ) | |||||
Net
decrease in net assets resulting from
operations
|
(530,057 | ) | (49,181,497 | ) | ||||
Changes
in net assets from capital stock
transactions:
|
||||||||
Issuance
of common stock on offering
|
0 | 25,450 | ||||||
Additional
paid-in capital on common stock issued
|
0 | 14,358,047 | ||||||
Stock-based
compensation expense
|
1,411,917 | 5,965,769 | ||||||
Net
increase in net assets resulting from capital stock
transactions
|
1,411,917 | 20,349,266 | ||||||
Net
increase (decrease) in net assets
|
881,860 | (28,832,231 | ) | |||||
Net
assets:
|
||||||||
Beginning
of the period
|
109,531,113 | 138,363,344 | ||||||
End
of the period
|
$ | 110,412,973 | $ | 109,531,113 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method
of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Unaffiliated Companies (2)(3) – 13.2% of net assets at
value
|
||||||||||
Private Placement Portfolio (Illiquid) – 13.2%
of net assets at
value
|
||||||||||
BioVex
Group, Inc. (4)(5)(6)(7) -- Developing novel biologics
|
||||||||||
for
treatment of cancer and infectious disease
|
||||||||||
Series
E Convertible Preferred Stock
|
(M)
|
2,799,552 | $ | 85,995 | ||||||
Series
F Convertible Preferred Stock
|
(M)
|
2,011,110 | 411,641 | |||||||
Warrants
at $0.241576 expiring 11/13/15
|
( I
)
|
248,120 | 29,329 | |||||||
526,965 | ||||||||||
Cobalt
Technologies, Inc. (4)(5)(6)(8) – Developing processes for
|
||||||||||
making
biobutanol through biomass fermentation
|
||||||||||
Series
C Convertible Preferred Stock
|
(M)
|
176,056 | 187,500 | |||||||
D-Wave
Systems, Inc. (4)(5)(6)(9) -- Developing high-
|
||||||||||
performance
quantum computing systems
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,144,869 | 1,103,628 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
450,450 | 434,224 | |||||||
Series
D Convertible Preferred Stock
|
(M)
|
1,533,395 | 1,478,158 | |||||||
3,016,010 | ||||||||||
Molecular
Imprints, Inc. (4)(5) -- Manufacturing nanoimprint
|
||||||||||
lithography
capital equipment
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,333,333 | 1,625,000 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
1,250,000 | 1,523,438 | |||||||
Warrants
at $2.00 expiring 12/31/11
|
( I
)
|
125,000 | 55,750 | |||||||
3,204,188 | ||||||||||
Nanosys,
Inc. (4)(5) -- Developing zero and one-dimensional
|
||||||||||
inorganic
nanometer-scale materials and devices
|
||||||||||
Series
C Convertible Preferred Stock
|
(M)
|
803,428 | 1,185,056 | |||||||
Series
D Convertible Preferred Stock
|
(M)
|
1,016,950 | 1,500,001 | |||||||
2,685,057 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Unaffiliated Companies (2)(3) – 13.2% of net assets at value
(cont.)
|
||||||||||
Private
Placement Portfolio (Illiquid) – 13.2% of net assets at value
(cont.)
|
||||||||||
Nantero,
Inc. (4)(5)(6) -- Developing a high-density, nonvolatile,
|
||||||||||
random
access memory chip, enabled by carbon nanotubes
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
345,070 | $ | 1,046,908 | ||||||
Series
B Convertible Preferred Stock
|
(M)
|
207,051 | 628,172 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
188,315 | 571,329 | |||||||
2,246,409 | ||||||||||
NeoPhotonics
Corporation (4)(5) -- Developing and manufacturing
|
||||||||||
optical
devices and components
|
||||||||||
Common
Stock
|
(M)
|
716,195 | 244,702 | |||||||
Series
1 Convertible Preferred Stock
|
(M)
|
1,831,256 | 625,686 | |||||||
Series
2 Convertible Preferred Stock
|
(M)
|
741,898 | 253,484 | |||||||
Series
3 Convertible Preferred Stock
|
(M)
|
2,750,000 | 939,592 | |||||||
Series
X Convertible Preferred Stock
|
(M)
|
2,000 | 136,668 | |||||||
Warrants
at $0.15 expiring 01/26/10
|
( I
)
|
16,364 | 3,371 | |||||||
Warrants
at $0.15 expiring 12/05/10
|
( I
)
|
14,063 | 3,277 | |||||||
2,206,780 | ||||||||||
Polatis,
Inc. (4)(5)(6) -- Developing MEMS-based optical
|
||||||||||
networking
components
|
||||||||||
Series
A-1 Convertible Preferred Stock
|
(M)
|
16,775 | 0 | |||||||
Series
A-2 Convertible Preferred Stock
|
(M)
|
71,611 | 0 | |||||||
Series
A-4 Convertible Preferred Stock
|
(M)
|
4,774 | 0 | |||||||
Series
A-5 Convertible Preferred Stock
|
(M)
|
16,438 | 0 | |||||||
0 | ||||||||||
PolyRemedy,
Inc. (4)(5)(6) --Developing a robotic
|
||||||||||
manufacturing
platform for wound treatment patches
|
||||||||||
Series
B-1 Convertible Preferred Stock
|
(M)
|
287,647 | 93,866 | |||||||
Series
B-2 Convertible Preferred Stock
|
(M)
|
676,147 | 121,706 | |||||||
215,572 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Unaffiliated Companies (2)(3) – 13.2% of net assets at value
(cont.)
|
||||||||||
Private
Placement Portfolio (Illiquid) – 13.2% of net assets at value
(cont.)
|
||||||||||
Siluria
Technologies, Inc. (4)(5)(6) -- Developing next-generation
|
||||||||||
nanomaterials
|
||||||||||
Series
S-2 Convertible Preferred Stock
|
(M)
|
612,061 | $ | 204,000 | ||||||
Starfire
Systems, Inc. (4)(5) -- Producing ceramic-forming polymers
|
||||||||||
Common
Stock
|
(M)
|
375,000 | 0 | |||||||
Series
A-1 Convertible Preferred Stock
|
(M)
|
600,000 | 0 | |||||||
0 | ||||||||||
TetraVitae
Bioscience, Inc. (4)(5)(6)(10) -- Developing methods
|
||||||||||
of
producing alternative chemicals and fuels through biomass
|
||||||||||
fermentation
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
118,804 | 125,000 | |||||||
Total
Unaffiliated Private Placement Portfolio (cost:
$26,273,391)
|
$ | 14,617,481 | ||||||||
Total
Investments in Unaffiliated Companies (cost: $26,273,391)
|
$ | 14,617,481 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Non-Controlled Affiliated Companies (2)(11) – 40.6% of net assets at
value
|
||||||||||
Private Placement
Portfolio (Illiquid) – 40.6% of net
assets at value
|
||||||||||
Adesto
Technologies Corporation (4)(5)(6) -- Developing
|
||||||||||
semiconductor-related
products enabled at the nanoscale
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
6,547,619 | $ | 1,100,000 | ||||||
Unsecured
Convertible Bridge Note (including interest)
|
(M)
|
$ 550,000 | 558,077 | |||||||
1,658,077 | ||||||||||
Ancora
Pharmaceuticals Inc. (4)(5)(6) -- Developing synthetic
|
||||||||||
carbohydrates
for pharmaceutical applications
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,663,808 | 440,909 | |||||||
BridgeLux,
Inc. (4)(5) -- Manufacturing high-power light
|
||||||||||
emitting
diodes and arrays
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,861,504 | 1,396,128 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
2,130,699 | 1,598,025 | |||||||
Series
D Convertible Preferred Stock
|
(M)
|
666,667 | 500,000 | |||||||
Warrants
at $0.7136 expiring 12/31/14
|
( I
)
|
163,900 | 99,323 | |||||||
3,593,476 | ||||||||||
Cambrios
Technologies Corporation (4)(5)(6) -- Developing
|
||||||||||
nanowire-enabled
electronic materials for the display industry
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,294,025 | 647,013 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
1,300,000 | 650,000 | |||||||
1,297,013 | ||||||||||
CFX
Battery, Inc. (4)(5)(6)(12) -- Developing batteries using
|
||||||||||
nanostructured
materials
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
1,885,108 | 1,476,756 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Non-Controlled Affiliated Companies (2)(11) – 40.6% of net assets at
value (cont.)
|
||||||||||
Private Placement
Portfolio (Illiquid) – 40.6% of net
assets at value (cont.)
|
||||||||||
Crystal
IS, Inc. (4)(5) -- Developing single-crystal
|
||||||||||
aluminum
nitride substrates for light-emitting diodes
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
391,571 | $ | 0 | ||||||
Series
A-1 Convertible Preferred Stock
|
(M)
|
1,300,376 | 0 | |||||||
Unsecured
Convertible Bridge Note (including interest)
|
(M)
|
$ 408,573 | 428,185 | |||||||
Warrants
at $0.78 expiring 05/05/13
|
( I
)
|
15,231 | 0 | |||||||
Warrants
at $0.78 expiring 05/12/13
|
( I
)
|
2,350 | 0 | |||||||
Warrants
at $0.78 expiring 08/08/13
|
( I
)
|
4,396 | 0 | |||||||
428,185 | ||||||||||
CSwitch
Corporation (4)(5)(6)(13) -- Developed system-
|
||||||||||
on-a-chip
solutions for communications-based platforms
|
||||||||||
Series
A-1 Convertible Preferred Stock
|
(M)
|
6,863,118 | 0 | |||||||
Unsecured
Convertible Bridge Note (including interest)
|
(M)
|
$ 1,766,673 | 0 | |||||||
0 | ||||||||||
Ensemble
Discovery Corporation (4)(5)(6)(14) -- Developing DNA-
|
||||||||||
Programmed
ChemistryTM
for the discovery of new classes of
|
||||||||||
therapeutics
and bioassays
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
1,449,275 | 1,000,000 | |||||||
Unsecured
Convertible Bridge Note (including interest)
|
(M)
|
$ 250,286 | 266,304 | |||||||
1,266,304 | ||||||||||
Innovalight,
Inc. (4)(5)(6) -- Developing solar power
|
||||||||||
products
enabled by silicon-based nanomaterials
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
16,666,666 | 4,288,662 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
5,810,577 | 1,495,176 | |||||||
5,783,838 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Non-Controlled Affiliated Companies (2)(11) – 40.6% of net assets at
value (cont.)
|
||||||||||
Private Placement
Portfolio (Illiquid) – 40.6% of net
assets at value (cont.)
|
||||||||||
Kovio,
Inc. (4)(5)(6) -- Developing semiconductor
products
|
||||||||||
using
printed electronics and thin-film technologies
|
||||||||||
Series
C Convertible Preferred Stock
|
(M)
|
2,500,000 | $ | 2,561,354 | ||||||
Series
D Convertible Preferred Stock
|
(M)
|
800,000 | 819,633 | |||||||
Series
E Convertible Preferred Stock
|
(M)
|
1,200,000 | 1,229,450 | |||||||
Warrants
at $1.25 expiring 12/31/12
|
( I
)
|
355,880 | 240,575 | |||||||
4,851,012 | ||||||||||
Mersana
Therapeutics, Inc. (4)(5)(6) -- Developing advanced
|
||||||||||
polymers
for drug delivery
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
68,451 | 68,451 | |||||||
Series
B Convertible Preferred Stock
|
(M)
|
866,500 | 866,500 | |||||||
Unsecured
Convertible Bridge Note (including interest)
|
(M)
|
$ 400,000 | 425,534 | |||||||
Warrants
at $2.00 expiring 10/21/10
|
( I
)
|
91,625 | 25,838 | |||||||
1,386,323 | ||||||||||
Metabolon,
Inc. (4)(5) -- Discovering biomarkers through
|
||||||||||
the
use of metabolomics
|
||||||||||
Series
B Convertible Preferred Stock
|
(M)
|
371,739 | 1,034,061 | |||||||
Series
B-1 Convertible Preferred Stock
|
(M)
|
148,696 | 413,625 | |||||||
Series
C Convertible Preferred Stock
|
(M)
|
1,000,000 | 1,000,000 | |||||||
Warrants
at $1.15 expiring 3/25/15
|
( I
)
|
74,348 | 120,778 | |||||||
2,568,464 | ||||||||||
NanoGram
Corporation (4)(5) -- Developing solar power products
|
||||||||||
enabled
by silicon-based nanomaterials
|
||||||||||
Series
I Convertible Preferred Stock
|
(M)
|
63,210 | 15,565 | |||||||
Series
II Convertible Preferred Stock
|
(M)
|
1,250,904 | 308,035 | |||||||
Series
III Convertible Preferred Stock
|
(M)
|
1,242,144 | 305,878 | |||||||
Series
IV Convertible Preferred Stock
|
(M)
|
432,179 | 106,424 | |||||||
735,902 |
HARRIS & HARRIS GROUP,
INC.
CONSOLIDATED
SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2009
(Unaudited)
|
Method of
|
Shares/
|
|||||||||
Valuation (1)
|
Principal
|
Value
|
||||||||
Investments
in Non-Controlled Affiliated Companies (2)(11) – 40.6% of net assets at
value (cont.)
|
||||||||||
Private Placement
Portfolio (Illiquid) – 40.6% of net
assets at value (cont.)
|
||||||||||
Nanomix,
Inc. (4)(5) -- Producing nanoelectronic sensors that
|
||||||||||
integrate
carbon nanotube electronics with silicon microstructures
|
||||||||||
Series
C Convertible Preferred Stock
|
(M)
|
977,917 | $ | 0 | ||||||
Series
D Convertible Preferred Stock
|
(M)
|
6,802,397 | 0 | |||||||
0 | ||||||||||
Nextreme
Thermal Solutions, Inc. (4)(5) -- Developing thin-film
|
||||||||||
thermoelectric
devices for cooling and energy conversion
|
||||||||||
Series
A Convertible Preferred Stock
|
(M)
|
17,500 | 1,750,000 | |||||||
Series
B Convertible Preferred Stock
|
(M)
|
4,870,244 | 2,655,257 | |||||||
4,405,257 | ||||||||||
Questech
Corporation (4)(5) -- Manufacturing and marketing
|
||||||||||
proprietary
metal and stone decorative tiles
|
||||||||||
Common
Stock
|
(M)
|
655,454 | 150,976 | |||||||
Warrants
at $1.50 expiring 11/19/09
|
( I
)
|
5,000 | 0 | |||||||
150,976 | ||||||||||