The Company announced that in connection with a proposed public offering of shares of common stock pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission, as of today we have determined that our net asset value per share is $5.07. The increase of $7,952,716 in our net asset value since our most recently reported balance sheet data as of June 30, 2005, reflects an increase of $10,715,910 in the value of our shares in NeuroMetrix, Inc. (Nasdaq: NURO), minus an increase of $2,160,792 in our reserve for employee profit-sharing. For the purpose of the accrual, we calculate 20 percent of qualifying income pursuant to the terms of the profit-sharing plan and estimate the effect on qualifying income of selling all the portfolio investments that are valued above cost (i.e., are in an unrealized appreciation position). This methodology results in a fluctuation in our accrual but is not reflective of actual payments made under the profit-sharing plan. Profit-sharing plan payments require the existence of qualifying income and consider only realized gains and losses (unrealized gains are excluded).
Because our 1,137,570 shares of NURO, which went public in July 2004, are currently our most highly valued holding, the volatility of NURO's stock price is now a significant influence on our net asset value. NURO closed on August 16, 2005, at $29.45 per share, versus $20.03 per share on June 30, 2005.
Harris & Harris Group is a publicly traded venture capital company that makes initial investments exclusively in tiny technology, including nanotechnology, microsystems and microelectromechanical systems (MEMS). The Company's last 24 initial private equity investments have been in tiny-technology enabled companies. As of today, the Company has 17,248,845 shares of common stock outstanding.
Detailed information about Harris & Harris Group, Inc. and its holdings can be found on its website at http://www.TinyTechVC.com.
This press release may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release. Please see the Company's Registration Statement on Form N-2 (File No. 333-112862) and Annual Report on Form 10-K for the fiscal year ended December 31, 2004, each filed with the Securities and Exchange Commission, for a more detailed discussion of the risks and uncertainties associated with the Company's business, including but not limited to the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company's actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc.®, undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. The reference to the website www.TinyTechVC.com has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.