<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 0-15766
TECHNOLOGY FUNDING SECURED INVESTORS I
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
CALIFORNIA 94-2944800
------------------------------ ----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
- --------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(415) 345-2200
--------------------------------------------------
(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 period
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
--- ---
No active market for the units of limited partnership interests
("Units") exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
- --------------
<TABLE>
<CAPTION>
(unaudited)
June 30, December 31,
1995 1994
---------- ------------
<S> <C> <C>
ASSETS
Investments:
Secured notes receivable, net
(cost basis of $992,752 and
$995,227 in 1995 and 1994,
respectively) $ 656,752 760,227
Equity investments (cost basis
of $302,016 and $3,196,958 in
1995 and 1994, respectively) 538,730 915,383
--------- ---------
Total investments 1,195,482 1,675,610
Cash and cash equivalents 656,350 534,644
Other assets 112,946 59,984
--------- ---------
Total $1,964,778 2,270,238
========= =========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 23,758 47,221
Due to related parties 5,620 1,136
Other liabilities 58,882 60,320
--------- ---------
Total liabilities 88,260 108,677
Commitments and Subsequent event
(Notes 2, 4 and 7)
Partners' capital:
Limited Partners
(Units outstanding of
115,501 in both 1995 and 1994) 2,191,642 4,866,951
General Partners (215,838) (188,815)
Net unrealized fair value (decrease)
increase from cost:
Secured notes receivable (336,000) (235,000)
Equity investments 236,714 (2,281,575)
--------- ---------
Total partners' capital 1,876,518 2,161,561
--------- ---------
Total $1,964,778 2,270,238
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
----------------------------- -------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Secured notes receivable interest $ 54,024 51,124 71,292 109,378
Short-term investment interest 9,822 6,160 18,553 9,538
Other income -- 862 -- 1,848
--------- ------- --------- -------
Total income 63,846 58,146 89,845 120,764
Costs and expenses:
Management fees 10,925 19,015 21,733 40,604
Operating expenses:
Lending operations and investment
management 16,850 17,579 47,604 125,431
Administrative and investor
services 46,327 71,607 90,095 142,021
Computer services 14,165 15,549 30,259 41,526
Professional fees 11,857 12,654 21,011 20,420
--------- ------- --------- -------
Total operating expenses 89,199 117,389 188,969 329,398
--------- ------- --------- -------
Total costs and expenses 100,124 136,404 210,702 370,002
--------- ------- --------- -------
Net operating loss (36,278) (78,258) (120,857) (249,238)
Net realized gain from sales
of equity investments 57,451 358,368 318,197 358,368
Realized losses from investment
write-downs (2,958,247) (434,460) (2,958,247) (474,429)
Recoveries from investments previously
written off 58,575 -- 58,575 45,290
--------- ------- --------- -------
Net realized loss (2,878,499) (154,350) (2,702,332) (320,009)
Change in net unrealized
fair value:
Secured notes receivable (80,000) (15,000) (101,000) 591,000
Equity investments 2,650,042 237,864 2,518,289 (717,295)
--------- ------- --------- -------
Net (loss) income $ (308,457) 68,514 (285,043) (446,304)
========= ======= ========= =======
Net realized loss per Unit $ (25) (1) (23) (3)
========= ======= ========= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 53,873 91,208
Cash paid to vendors (77,594) (87,530)
Cash paid to affiliated partnerships (9,148) (79,153)
Cash paid to related parties (147,339) (301,646)
--------- -------
Net cash used by operating activities (180,208) (377,121)
--------- -------
Cash flows from investing activities:
Secured notes receivable issued (175,000) (76,320)
Repayments of secured notes receivable 127,576 313,492
Proceeds from sales of equity investments 291,725 417,622
Recoveries from investments previously
written off 58,575 45,290
Purchase of equity investments (962) (69,633)
--------- -------
Net cash provided by investing activities 301,914 630,451
--------- -------
Net increase in cash and
cash equivalents 121,706 253,330
Cash and cash equivalents at beginning
of year 534,644 568,130
--------- -------
Cash and cash equivalents at June 30 $ 656,350 821,460
========= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1995 1994
---- ----
<S> <C> <C>
Reconciliation of net loss
to net cash used by
operating activities:
Net loss $ (285,043) (446,304)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Net realized gain from
sales of equity investments (318,197) (358,368)
Recoveries from investments
previously written off (58,575) (45,290)
Realized losses from investment
write-downs 2,958,247 474,429
Change in net unrealized fair value:
Secured notes receivable 101,000 (591,000)
Equity investments (2,518,289) 717,295
Amortization of discount related
to warrants (3,583) (698)
Changes in:
Accrued interest on secured and
convertible notes receivable 12,611 (28,858)
Accounts payable and accrued
expenses (23,463) 17,974
Due to/from related parties 4,484 (6,505)
Due to/from affiliated partnerships (9,148) (79,153)
Other assets (43,814) (36,317)
Other, net 3,562 5,674
--------- ---------
Net cash used by operating activities $ (180,208) (377,121)
========= =========
Non-cash investing activities:
Conversions of secured notes
receivable to equity investments $ -- 2,082,107
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partner, the Balance Sheets as of
June 30, 1995 and December 31, 1994 and the related Statements of
Operations for the three and six months ended June 30, 1995 and 1994,
and Statements of Cash Flows for the six months ended June 30, 1995 and
1994, reflect all adjustments which are necessary for a fair
presentation of the financial position, results of operations and cash
flows for such periods. These statements should be read in conjunction
with the Annual Report on Form 10-K for the year ended December 31,
1994. The following notes to financial statements for activity through
June 30, 1995 supplement those included in the Annual Report on Form 10-
K. Allocation of income and loss to Limited and General Partners is
based on cumulative income and loss. Adjustments, if any, are reflected
in the current quarter balances.
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the six months ended
June 30, 1995 and 1994 were as follows:
<TABLE>
<S> <C> <C>
1995 1994
---- ----
Management fees $ 21,733 40,604
Reimbursable operating expenses 130,090 254,537
</TABLE>
Certain reimbursable expenses have been allocated and accrued based upon
interim estimates prepared by the Managing General Partner, and are
adjusted to actual cost periodically. At June 30, 1995 and December 31,
1994, due to related parties totaled $5,620 and $1,136, respectively,
related to reimbursable operating expenses previously charged to the
Partnership. Both amounts were paid in the respective subsequent
quarters.
Within the normal course of business, the Partnership participates with
affiliated partnerships in secured notes receivable granted to
nonaffiliated borrowing companies. The Partnership may also
reparticipate such secured notes receivable amongst affiliated
partnerships to meet business needs. At June 30, 1995 and December 31,
1994, the amounts due from affiliated partnerships were $10,448 and
$1,300 (included in other assets), respectively. These amounts were
received from such affiliated partnerships in the following respective
quarters.
3. Net Realized Loss Per Unit
--------------------------
Net realized loss per Unit is calculated by dividing total net realized
loss allocated to the Limited Partners by the weighted average number of
Limited Partner Units outstanding for the six months ended June 30, 1995
and 1994 of 115,501 and 116,008, respectively.
4. Equity Investments
------------------
A complete listing of the Partnership's equity investments at December
31, 1994 are included in the 1994 Annual Report. Activity from January
1 through June 30, 1995 consisted of
<TABLE>
<CAPTION>
January 1 -
June 30, 1995
-------------
Investment Cost Fair
Industry/Company Date Position Basis Value
- ---------------- ---------- -------- ----- -----
<S> <C> <C> <C> <C>
Balance at January 1, 1995 $ 3,196,958 915,383
--------- -------
1995 activity:
WARRANTS:
Computers and Computer Equipment
- --------------------------------
Censtor Corporation 02/91 78,438 Common
shares at $.29;
exercised 05/95 (15,000) (173,191)
Pinnacle Systems, Inc. 05/90 2,083 Common
shares at $8.00;
exercised 02/95 (2,500) (14,164)
Telecommunications
- ------------------
Integrated Network 06/91 2,941 Common
Corporation shares at $17.00;
expiring 06/96 (5,000) (49,997)
Primary Access 10/90- 21,900 Common
Corporation 04/91 shares at $2.25;
exercised 06/95 (5,500) (5,500)
STOCKS:
Computers and Computer Equipment
- --------------------------------
Censtor Corporation 06/95 21,158 Common
shares 11,179 11,179
Electronic Design Automation
- ----------------------------
IKOS Systems, Inc. 07/90 84,765 Common
shares (23,613) (162,155)
Industrial/Business Automation
- ------------------------------
Cyclean, Inc. 01/95 13,097 Series D
Preferred
shares 36,541 36,541
Cyclean of 03/95 Class A LLC Unit -
Los Angeles, LLC 11% ownership 2,816 2,816
Medical
- -------
Hemocleanse, Inc. 03/95 20,999 Common
shares 19,320 19,320
Resonex Holding 22,804 Common
Corporation 02/94 shares (1,682,507) 0
Retail/Consumer Products
- ------------------------
S-Tron 05/93 3,237,000 Series
1 & 2 Preferred
shares (880,740) (191,473)
S-Tron 05/93 Subordinated note
$390,000 principal
amount (392,015) (130,316)
Telecommunications
- ------------------
3Com Corporation 06/95 3,812 Common
shares 41,504 255,469
3Com Corporation 06/95 424 Common
shares in
escrow account 4,612 28,385
--------- -------
Total significant changes during
the six months ended June 30, 1995 (2,890,903) (373,086)
Other changes, net (4,039) (3,567)
--------- -------
Total equity investments at June 30, 1995 $ 302,016 538,730
========= =======
</TABLE
Marketable Equity Securities
- ----------------------------
At June 30, 1995 and December 31, 1994, marketable equity securities had
aggregate costs of $46,116 and $26,113, respectively, and aggregate
market values of $283,854 and $176,319, respectively. The unrealized
gains at June 30, 1995 and December 31, 1994 were $237,738 and $150,206,
respectively.
Censtor Corporation
- -------------------
In May 1995, the Partnership exercised its warrant without cash and
received 21,158 common shares. The recorded common share cost basis was
$11,179, which is net of a realized loss.
Cyclean, Inc./Cyclean of Los Angeles, LLC
- -----------------------------------------
In January 1995, the Partnership obtained the right to receive 26,195
Series D Preferred shares with a twelve month vesting schedule in
exchange for a one year maturity date extension of secured notes
receivable. At June 30, 1995, 13,097 shares were fully vested with a
recorded cost basis and fair value of $36,541.
In March 1995, Cyclean, Inc. ("Cyclean") formed Cyclean of Los Angeles,
LLC ("Cyclean LLC") and contributed certain assets and contracts to the
new entity. Cyclean LLC is completing a new round of financing through
the offering of Class A LLC Units. As a result of the transaction, one
of the Partnership's secured notes receivable was transferred from
Cyclean to Cyclean LLC with modified terms; Cyclean has guaranteed note
repayments. The Partnership received a participated percentage of one
Class A LLC Unit in exchange for certain interest payments and late
charges totaling $2,816. The Partnership is also entitled to royalty
payments and additional Series D Preferred shares based on the total
proceeds raised from the Cyclean LLC offering, which is expected to be
completed by late 1995.
Hemocleanse, Inc.
- -----------------
In March 1995, the Partnership exercised its warrant without cash and
received 20,999 common shares, resulting in a cost basis and realized
gain of $19,320.
IKOS Systems, Inc.
- ------------------
In January 1995, the Partnership sold all of its holdings in the company
for total proceeds of $254,295 and a realized gain of $230,682.
Integrated Network Corporation
- ------------------------------
During June 1995, the Partnership exercised its option to sell half of
its warrant holdings to the company for $50,000 and realized warrant
income of $45,000, which was included in "secured note receivable
interest income" on the Statements of Operations. As the cash was
received subsequent to the quarter end, the $50,000 was included in
"other assets" on the Balance Sheet at June 30, 1995. The Partnership
does not have this option for its remaining warrant.
Pinnacle Systems, Inc.
- ----------------------
In February 1995, the Partnership exercised its warrant without cash and
received 1,970 common shares. The recorded cost basis of $13,244
included a realized gain of $10,744 and a warrant cost basis of $2,500.
In May 1995, the Partnership sold the common shares for total proceeds
of $37,429 and realized a gain of $24,185.
Primary Access Corporation/3Com Corporation
- -------------------------------------------
In June 1995, Primary Access Corporation ("Primary Access") was acquired
by 3Com Corporation ("3Com"), a public company. Immediately prior to
the acquisition, the Partnership exercised its Primary Access common
warrant holdings without cash and received 12,686 shares of Primary
Access common stock with a cost basis of $46,116, which reflects a
realized gain of $40,616 and a warrant cost basis of $5,500. Upon the
acquisition, these shares were then exchanged for 4,236 3Com common
shares, of which 424 shares are held in an escrow account until March
21, 1996 to indemnify 3Com for any loss it may incur as a result of any
contractual breach of the merger agreement by Primary Access. The
Partnership recorded an increase in the change in fair value of $237,738
to reflect this transaction and the market value at June 30, 1995.
Subsequent to June 30, 1995, the Partnership sold 3,812 common shares
for total proceeds of $262,594 and a realized gain of $221,090.
Resonex Holding Corporation
- ----------------------------
Resonex Holding Corporation is currently obtaining bids from potential
acquirers as this is determined to be the best option for the company.
Based on the opinion of the Managing General Partner, there has been a
decline in Partnership's investment value and accordingly, the common
stock cost basis of $1,682,507 was written off.
S-Tron
- ------
The company was unsuccessful in its recent efforts to obtain a major
government contract; as a result, operations will likely cease by year
end. Based on the Managing General Partner's opinion, the fair value of
the Partnership's investment has declined. Accordingly, the Partnership
has written off the cost basis of its Preferred stock investment of
$880,740 and recorded a write-down of $392,015 on its subordinated note
investment.
5. Secured Notes Receivable, Net
-----------------------------
Activity from January 1, 1995 through June 30, 1995 consisted of:
</TABLE>
<TABLE>
<S> <C>
Balance at January 1, 1995 $ 760,227
1995 activity:
Secured notes receivable issued 175,000
Repayment of secured notes receivable (127,576)
Change in interest receivable (13,456)
Increase in allowance for loan losses (101,000)
Increase in unamortized
discount related to warrants (36,443)
-------
Total secured notes receivable, net,
at June 30, 1995 $ 656,752
=======
</TABLE>
The Partnership had accrued interest of $633 and $14,089 at June 30,
1995 and December 31, 1994, respectively.
Changes in the allowance for loan losses were as follows:
<TABLE>
<S> <C>
Balance at January 1, 1995 $235,000
Provisions for loan losses 42,425
Recoveries of previous write-offs:
Computers and computer equipment 58,575
-------
Total recoveries 58,575
-------
Change in net unrealized fair value
of secured notes receivable 101,000
-------
Balance at June 30, 1995 $336,000
=======
</TABLE>
The allowance for loan losses is adjusted quarterly based upon changes
to the portfolio size and risk profile. Although the allowance is
established by evaluating individual debtor repayment ability, the
allowance represents the Managing General Partner's assessment of the
portfolio as a whole.
Notes aggregating $1,019,205 and $782,274 were on nonaccrual status due
to uncertainties in the financial condition of the borrowing companies
at June 30, 1995 and December 31, 1994, respectively. The Managing
General Partner continues to monitor the progress of companies with
nonaccrual notes. The fair value at June 30, 1995 reflected the
Managing General Partner's estimate of collectibility of these notes.
All notes are secured by specific assets of the borrowing company. The
interest rate on notes issued during the six months ended June 30, 1995
ranged from 12% to 14%.
6. Cash and Cash Equivalents
-------------------------
At June 30, 1995 and December 31, 1994, cash and cash equivalents
consisted of:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Demand and brokerage accounts $ 2,987 1,994
Money market accounts 653,363 532,650
------- -------
Total $656,350 534,644
======= =======
</TABLE>
7. Commitments
-----------
The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business. Generally, these
instruments are equipment financing commitments or accounts receivable
lines of credit that are outstanding but not currently fully utilized by
a borrowing company. As they do not represent current outstanding
balances, these unfunded commitments are properly not recognized in the
financial statements. At June 30, 1995, the Partnership had unfunded
commitments of $54,000 related to bridge and term note financings.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
-----------------------------------------------------------
and Results of Operations
-------------------------
Liquidity and Capital Resources
- -------------------------------
During the six months ended June 30, 1995, net cash used by operations
totaled $180,208. The Partnership paid management fees of $21,733 to
the Managing General Partner, reimbursed related parties for operating
expenses of $125,606, and paid $9,148 to affiliated partnerships for net
loan participations. In addition, other operating expenses of $77,594
were paid. Interest received from secured notes receivable and short-
term investments totaled $53,873.
During the quarter ended June 30, 1995, the partnership issued $175,000
in secured notes receivable to portfolio companies in the computers and
computer equipment and retail/consumer products industries. Repayments
of notes receivable provided cash of $127,576 and proceeds from
investment sales totaled $291,725. The Partnership also received
$58,575 from investment recoveries. As of June 30, 1995, the
Partnership was committed to fund $54,000 related to bridge and term
note financings to existing borrowing companies.
All management fees which are due have been paid through June 30, 1995.
Management fees are paid to the extent that the aggregate amount of all
proceeds (including those from warrants exercised without cash) received
by the Partnership from the sale or other disposition of borrowing
company equities, plus the aggregate fair market value of any equity
securities distributed to the partners, exceeded the total management
fee paid.
subsequent to June 30, 1995, the partnership sold 3,812 3Com Corporation
common shares for total proceeds of $262,594.
Each June, Limited Partners may tender their Units for repurchase by the
Partnership. The price paid for any Units tendered is subject to the
restrictions stated in the Partnership Agreement. As of June 30, 1995,
requests to repurchase approximately 1,000 units had been received. The
amount to be offered for the unit repurchases will be determined in the
following quarter.
Cash and cash equivalents at June 30, 1995 were $656,350. Distributions
will fluctuate in the future based upon loan payoffs received and
expected cash needed by the Partnership. Operating cash reserves
combined with interest income received on short-term investments,
proceeds from investment sales, and repayments of secured notes
receivable are expected to be sufficient to fund Partnership operations
through the next twelve months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net loss was $308,457 for the three months ended June 30, 1995, compared
to a net income of $68,514 for the same period in 1994. The change was
substantially due to a $2,523,787 increase in realized losses from
investment write-downs and a $300,917 decrease in net realized gain from
sales of equity investments. These changes were partially offset by a
$2,412,178 increase in the change in net unrealized fair value of equity
investments and a $58,575 increase in recoveries from investments
previously written off.
Realized losses from investment write-downs totaled $2,958,247 and
$434,460 for the three months ended June 30, 1995 and 1994,
respectively. Realized losses in 1995 primarily related to equity
investments in portfolio companies in the medical and retail/consumer
products industries. Realized losses in 1994 primarily related to an
equity investment in a portfolio company in the medical industry.
During the quarter ended June 30, 1995, the Partnership recorded a net
realized gain of $57,451 primarily related to the non-cash exercise of
Primary Access Corporation warrant and the sale of Pinnacle Systems,
Inc. During the same period ended June 30, 1994, the net realized gain
of $358,368 was mainly from the sale of Micro Decisionware, Inc.
In 1995, the increase in net unrealized fair value of equity investments
of $2,650,042 was primarily due to the write-downs of portfolio
companies in the medical and retail/consumer product industries as these
investments had been reflected with a fair value less than cost. During
the quarter ended June 30, 1994, the increase of $237,864 was
attributable to the write-down of a portfolio company in the medical
industry as this investment had also been reflected with a fair value
less than cost.
During the three months ended June 30, 1995, the Partnership recorded a
recovery of $58,575 related to a portfolio company in computers and
computer equipment industry. No such recovery was recorded during the
same period in 1994.
Total operating expenses were $89,199 and $117,389 for the three months
ended June 30, 1995 and 1994, respectively. The decrease was mainly
attributable to lower administrative and investor services expenses as
overall portfolio activities have decreased.
In 1995, the secured notes receivable interest income of $54,024
included nonrecurring warrant income of $45,000 from the Integrated
Network Corporation warrant redemption. Secured notes receivable
interest income would have been $9,024 without such income, compared to
$51,124 during the quarter ended June 30, 1994. The decrease was
primarily due to lower interest-bearing notes receivable balances since
the Partnership has entered the liquidation stage.
Given the inherent risk associated with the business of the Partnership,
the future performance of the borrowing companies may significantly
impact the Partnership's future operations.
Current six months compared to corresponding six months in the preceding
- ------------------------------------------------------------------------
year
- ----
Net losses for the six months ended June 30, 1995 and 1994 were $285,043
and $446,304, respectively. The decrease in net loss was primarily
attributable to a $3,235,584 increase in the change in net unrealized
fair value of equity investments, and a $140,429 decrease in total
operating expenses. These changes were mostly offset by a $2,483,818
increase in realized losses from investment write-downs and a $692,000
decrease in the change in net unrealized fair value of secured notes
receivable.
During the six months ended June 30, 1995, the increase in net
unrealized fair value of equity investments of $2,518,289 was due to the
write-down of portfolio companies in medical and retail/consumer product
industries as these investments had been reflected with a fair value
less than cost. During the same period ended June 30, 1994, the
decrease of $717,295 was primarily due to the conversion of notes
receivable at fair values lower than cost to equity investments for a
portfolio company in the medical industry.
Total operating expenses were $188,969 and $329,398 for the six months
ended June 30, 1995 and 1994, respectively. The decrease was mainly
attributable to lower lending operations and investment management, and
administrative and investor services expenses as overall portfolio
activities have decreased. Also, the 1994 amount was higher resulting
from additional collection costs for portfolio companies in the medical
and microelectronics industries.
Realized losses from investment write-downs were $2,958,247 and $474,429
for the six months ended June 30, 1995 and 1994, respectively. Realized
losses in 1995 primarily related to equity investments in portfolio
companies in the medical and retail/consumer industries. Realized
losses in 1994 primarily related to an equity investment in a portfolio
company in the medical industry.
The Partnership recorded a decrease in the fair value of secured notes
receivable of $101,000 for the six months ended June 30, 1995 compared
to an increase of $591,000 for the same period ended June 30, 1994,
based upon the level of loan loss reserves deemed adequate by the
Managing General Partner at the respective quarter ends. The 1994
increases primarily related to the conversion of notes receivable to
equity investments as discussed above.
During the six months ended June 30, 1995, the Partnership realized a
gain of $318,197 primarily related to the sale of IKOS Systems, Inc. and
the non-cash exercise of Primary Access Corporation warrants. In 1994,
the realized gain of $358,368 mainly related to the sale of Micro
Decisionware, Inc.
In 1995, secured notes receivable interest income of $71,292 included
nonrecurring warrant income of $45,000 as discussed in the above
section. The secured notes receivable interest income would have been
$26,292 without such income, compared to $109,378 during the six months
ended June 30, 1994. The decrease was primarily due to lower interest-
bearing notes receivable balances since the Partnership has entered the
liquidation stage.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended June 30, 1995.
(b) Financial Data Schedule for the six months ended and as of June 30,
1995 (Exhibit 27).
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TECHNOLOGY FUNDING SECURED INVESTORS I
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: August 11, 1995 By: /s/Frank R. Pope
-----------------------------------
Frank R. Pope
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<PERIOD-TYPE> 6-MOS
<INVESTMENTS-AT-COST> 1,294,768
<INVESTMENTS-AT-VALUE> 1,195,482
<RECEIVABLES> 0
<ASSETS-OTHER> 112,946
<OTHER-ITEMS-ASSETS> 656,350
<TOTAL-ASSETS> 1,964,778
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 88,260
<TOTAL-LIABILITIES> 88,260
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,975,804
<SHARES-COMMON-STOCK> 115,501
<SHARES-COMMON-PRIOR> 115,501
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (99,286)
<NET-ASSETS> 1,876,518
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 89,845
<OTHER-INCOME> 0
<EXPENSES-NET> 210,702
<NET-INVESTMENT-INCOME> (120,857)
<REALIZED-GAINS-CURRENT> (2,581,475)
<APPREC-INCREASE-CURRENT> 2,417,289
<NET-CHANGE-FROM-OPS> (285,043)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (285,043)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,733
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 234,200
<AVERAGE-NET-ASSETS> 2,019,040
<PER-SHARE-NAV-BEGIN> 42
<PER-SHARE-NII> (23)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19
<EXPENSE-RATIO> .10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>
A zero value is used since the change in net unrealized fair value is
not allocated to General Partners and Limited Partners as it is not
taxable. Only taxable gains or losses are allocated in accordance with
the Partnership Agreement.
</FN>
</TABLE>
