<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. 814-82
TECHNOLOGY FUNDING VENTURE PARTNERS V, AN AGGRESSIVE GROWTH FUND, L.P.
----------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3094910
- ------------------------------- ----------------------------------
(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:
Equity investments (cost basis
of $19,914,264 and $16,068,778 at
1995 and 1994, respectively) $23,433,769 18,985,725
Secured notes receivable, net
(cost basis of $1,695,031 and
$1,995,190 at 1995 and 1994,
respectively) 1,002,031 1,435,190
---------- ----------
Total investments 24,435,800 20,420,915
Cash and cash equivalents 8,322,935 11,371,533
Other assets 19,429 807,401
---------- ----------
Total $32,778,164 32,599,849
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 15,151 29,751
Due to related parties 124,058 55,781
Other liabilities 828 861
---------- ----------
Total liabilities 140,037 86,393
Commitments and contingencies
(Notes 2 and 6)
Partners' capital:
Limited Partners
(Units outstanding of
400,000 in both 1995 and 1994) 29,803,908 30,145,346
Managing General Partners 7,714 11,163
Net unrealized fair value increase
(decrease) from cost:
Equity investments 3,519,505 2,916,947
Secured notes receivable (693,000) (560,000)
---------- ----------
Total partners' capital 32,638,127 32,513,456
---------- ----------
Total $32,778,164 32,599,849
========== ==========
</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 $ 26,795 133,427 56,207 271,543
Short-term investments interest 151,629 137,296 327,428 264,954
--------- --------- --------- ---------
Total income 178,424 270,723 383,635 536,497
Costs and expenses:
Management fees 199,061 199,048 398,163 398,104
Individual general partners'
compensation 12,349 10,500 16,849 15,000
Amortization of organizational costs 1,750 1,750 3,500 3,500
Operating expenses:
Investment operations 148,583 118,943 282,952 244,110
Administrative and investor services 138,755 140,439 237,281 259,644
Professional fees 44,223 18,732 56,927 36,302
Computer services 29,032 21,250 56,471 56,960
Expenses reimbursed to General Partners 14,991 -- 14,991 --
--------- --------- --------- ---------
Total operating expenses 375,584 299,364 648,622 597,016
--------- --------- --------- ---------
Total costs and expenses 588,744 510,662 1,067,134 1,013,620
--------- --------- --------- ---------
Net operating loss (410,320) (239,939) (683,499) (477,123)
Realized gains from
sales of equity investments -- 442,355 935,950 534,370
Realized losses from
investment write-downs (635,920) -- (639,920) (2,500)
Recoveries from investments previously
written off 42,582 -- 42,582 --
--------- --------- --------- ---------
Net realized (loss) income (1,003,658) 202,416 (344,887) 54,747
Change in net unrealized
fair value:
Equity investments 759,020 1,801,102 602,558 906,390
Secured notes receivable (19,000) (158,000) (133,000) (152,000)
--------- --------- --------- ---------
Net (loss) income $ (263,638) 1,845,518 124,671 809,137
========= ========= ========= =========
Net realized loss per Unit $ (3) -- (1) --
========= ========= ========= =========
</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 $ 391,159 453,182
Cash paid to vendors (166,280) (140,099)
Cash paid to related parties (842,973) (861,652)
---------- ----------
Net cash used by
operating activities (618,094) (548,569)
---------- ----------
Cash flows from investing activities:
Secured notes receivable issued -- (127,438)
Purchase of equity investments (4,943,033) (2,472,197)
Proceeds from sales of
equity investments 2,022,421 816,323
Repayments of convertible and
secured notes receivable 490,108 487,755
Distributions from venture capital
limited partnerships -- 5,941
---------- ----------
Net cash used by investing activities (2,430,504) (1,289,616)
---------- ----------
Net decrease in cash and
cash equivalents (3,048,598) (1,838,185)
Cash and cash equivalents at
beginning of year 11,371,533 16,187,289
---------- ----------
Cash and cash equivalents at June 30 $ 8,322,935 14,349,104
========== ==========
</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 income to net
cash used by operating activities:
Net income $ 124,671 809,137
Adjustments to reconcile net income to
net cash used by operating activities:
Realized gains from sales of
equity investments (935,950) (534,370)
Realized losses from investment
write-downs 639,920 2,500
Recoveries from investments previously
written off (42,582) --
Change in net unrealized fair value:
Equity investments (602,558) (906,390)
Secured notes receivable 133,000 152,000
Other changes, net 2,279 (1,655)
Changes in:
Due to related parties 68,277 5,697
Other, net (5,151) (75,488)
------- -------
Net cash used by operating activities $(618,094) (548,569)
======= =======
Non-cash investing activities:
Common stock recovered from equity
investments previously written off $ 42,582 --
======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, 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. Certain 1994 balances have been reclassified to conform with the
1995 financial statement presentation. 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>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Management fees $398,163 398,104
Amortization of organizational cost 3,500 3,500
Reimbursable operating expenses 482,273 454,245
Individual general partners' compensation 16,849 15,000
Expenses reimbursed to General Partners 14,991 --
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual cost periodically. Due to related parties was $57,705 at June
30, 1995 compared to due from related parties of $10,568 at December 31,
1994 for reimbursable operating expenses.
Amounts payable for management fees were $66,353 and $66,349 at June 30,
1995 and December 31, 1994, respectively.
During the second quarter of 1995, the Partnership reimbursed $14,991 to
the General Partners for individual general partners' expenses incurred
in prior years during which the operating expense limitation applied.
This amount was recorded as a reduction to operating expenses and future
expenses will be reflected as individual general partners' compensation.
3. Equity Investments
------------------
A full listing of the Partnership's equity investments at December 31,
1994 is in the 1994 Annual Report. Activity from January 1 through June
30, 1995 consisted of:
<TABLE>
<CAPTION>
January 1 -
June 30, 1995
Principal -------------
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- ---------- --------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1995 $16,068,778 18,985,725
---------- ----------
Significant changes:
Biotechnology
- -------------
Prolinx, Inc. Series A
Preferred
shares 05/95 500,000 328,929 328,929
Communications
- --------------
Coded Communications Common
Corporation shares 04/93 145,454 (246,182) (21,963)
Coded Communications Common
Corporation share
warrant
at $3.16;
expired 04/95 04/93 145,454 (4,000) 0
Unitech Telecom, Inc. Convertible
note (1) 05/94 $100,000 (106,039) (106,039)
Unitech Telecom, Inc. Series A Preferred
shares 03/95 46,875 375,000 375,000
Computer Systems and Software
- -----------------------------
Pilot Network Series D Preferred
Services, Inc. shares 03/95 371,557 650,225 650,225
Environmental
- -------------
Conversion Series A
Technologies Preferred
International, Inc. shares 05/95 600,000 1,500,000 1,500,000
SRG Holdings, Inc. Subordinated
note (1) 04/95 $56,880 58,117 58,117
SRG Holdings, Inc. Subordinated
note (1) 06/95 $122,547 122,710 122,710
Industrial/Business Automation
- ------------------------------
Bolder Technologies Series C Preferred
Corporation shares 09/94 250,000 0 500,000
Bolder Technologies Series B Preferred
Corporation shares 10/94 50,001 0 100,002
Bolder Technologies Common share
Corporation warrant at $0.50;
expiring 03/00 03/95 8,694 87 30,429
Bolder Technologies Series D Preferred
Corporation shares 05/95 17,366 69,467 69,464
Bolder Technologies Series C Preferred
Corporation shares 05/95 810 1,622 3,240
Oxford GlycoSystems Common
Group PLC shares 08/93 533,867 0 (572,833)
Portable Energy Funds held in
Products, Inc. escrow for Series
A Preferred shares 06/95 1,100,000 1,100,000 1,100,000
Medical
- -------
Acusphere, Inc. Series B Preferred
shares 05/95 250,000 400,000 400,000
Biex, Inc. Series C Preferred
shares 06/95 83,334 83,334 83,334
Pharmos Corporation Common shares 04/95 56,776 42,582 143,643
TheraTx, Incorporated Common shares 06/94 70,042 (16,500) (731,809)
UroMed Corporation Common shares 03/94 179,828 (286,236) (831,705)
Microelectronics
- ----------------
Tessera, Inc. Common share
warrant
at $0.73;
expiring 04/97 04/92 72,754 0 128,775
Tessera, Inc. Series B
Preferred share 05/92 666,666 0 1,166,665
Retail/Consumer Products
- ------------------------
Yes! Entertainment Series B Preferred
Corporation shares 01/93 750,000 (500,000) (375,000)
Yes! Entertainment
Corporation Common shares 06/95 55,555 166,665 209,998
Venture Capital Limited Partnership Investment
- ----------------------------------------------
Various Ltd. Partnership
interest various $751,465 101,463 107,070
---------- ----------
Total significant changes during the six
months ended June 30, 1995 3,841,244 4,438,252
Other changes, net 4,242 9,792
---------- ----------
Total equity investments at June 30, 1995 $19,914,264 23,433,769
========== ==========
(1) Convertible and subordinated notes include accrued interest. Interest rates on
such notes issued in 1995 ranged from 8% to 24%.
</TABLE>
Marketable Equity Securities
- ----------------------------
At June 30, 1995 and December 31, 1994, marketable equity securities had
aggregate costs of $934,979 and $1,445,315, respectively, and aggregate
market values of $1,481,997 and $2,910,791, respectively. The net
unrealized gains at June 30, 1995 and December 31, 1994 included gross
gains of $852,612 and $2,012,329, respectively.
Acusphere, Inc.
- ---------------
In May 1995, the Partnership invested in Acusphere, Inc. by purchasing
250,000 Series B Preferred shares at a total cost of $400,000.
Biex, Inc.
- ----------
In June 1995, the Partnership made an additional investment in Biex,
Inc. by purchasing 83,334 Series C Preferred shares at a total cost of
$83,334.
Bolder Technologies
- -------------------
In March 1995, the Partnership issued an unsecured convertible note for
$69,467 and purchased a warrant for 8,694 common shares with an exercise
price of $0.50 per share for $87.
Then in May 1995, the Partnership converted the unsecured note mentioned
above into 17,366 Series D Preferred shares and the accrued interest of
$1,622 into 810 Series C preferred shares. This round of equity
conversion in which other investors participated indicated an increase
in the change in fair value of $631,959 for the Partnership's
investments.
Coded Communications Corporation
- --------------------------------
During the second quarter of 1995, the Managing General Partners have
determined that there has been a decline in value of the Partnership's
investment. As a result, the Partnership realized a loss of $250,182.
The Partnership also recorded a decrease in fair value of $21,963 to
reflect the publicly-traded market value at June 30, 1995.
Conversion Technologies International, Inc.
- -------------------------------------------
In May 1995, the Partnership invested in Conversion Technologies
International, Inc. by purchasing 600,000 Series A Preferred shares at a
total cost of $1,500,000.
Oxford GlycoSystems Group PLC
- -----------------------------
In March 1995, the company had a new round of equity financing in which
the Partnership did not participate. The pricing of this round
indicated a decrease in the change in fair value of $572,833 for the
Partnership's existing investments.
Pharmos Corporation/Oculon Corporation
- --------------------------------------
In March 1995, Oculon Corporation ("Oculon") was acquired by Pharmos
Corporation ("Pharmos"). The Partnership's Series II Senior Preferred
shares were canceled while the Series III Senior Preferred shares were
exchanged for 56,776 shares of marketable, unrestricted Pharmos common
stock. The Partnership recorded the $42,582 cost basis of the Pharmos
stock as a recovery from Oculon investments previously written off. An
increase in fair value of $143,643 reflected the market value of the
Pharmos stock at June 30, 1995.
Pilot Network Services, Inc.
- ----------------------------
In March 1995, the Partnership purchased 371,557 Series D Preferred
shares from the company at a total cost of $650,225.
Portable Energy Products, Inc.
- ------------------------------
In June 1995, the Partnership deposited $1,100,000 into an escrow fund
to purchase 1,100,000 Series A Preferred shares upon the final close of
the financing round, which occurred in July 1995.
Prolinx, Inc.
- -------------
In May 1995, the Partnership invested in Prolinx, Inc. by purchasing
500,000 Series A Preferred shares at a total cost of $328,929.
SRG Holdings, Inc.
- ------------------
During the first quarter of 1995, the Partnership issued convertible
notes totaling $78,124 to SRG Holdings, Inc. Then, during the second
quarter, the Partnership issued an additional $179,427 in subordinated
notes to the company, which consisted of $100,693 in cash and the
transfer of $78,734 in principal and interest from the $78,124
convertible notes mentioned above.
Tessera, Inc.
- -------------
In February 1995, the company had a Series C round of equity financing
in which the Partnership did not participate. The pricing of this
financing indicated an increase in the change in fair value of
$1,295,440 for the Partnership's existing investments.
TheraTx, Inc.
- -------------
In January 1995, the Partnership sold 11,000 shares of TheraTx, Inc. for
proceeds of $214,719 and a realized gain of $198,219. The Partnership
also received proceeds of $127,750 from sales prior to December 31,
1994, which have been settled. The Partnership recorded a decrease in
unrealized fair value of $731,809 at June 30, 1995; a portion was
realized related to the sale mentioned above, with the remainder due to
a decrease in the market value of the remaining unrestricted shares at
June 30, 1995.
Unitech Telecom, Inc.
- ---------------------
In March 1995, the Partnership purchased 46,875 Series A Preferred
shares from the company at a total cost of $375,000. The purchase price
consisted of $275,000 in cash and the conversion of a $100,000 note
issued in May 1994.
UroMed Corporation
- ------------------
In January 1995, the Partnership sold its remaining holdings in the
company for total proceeds of $1,023,967 and realized a gain of
$737,731. The Partnership also received proceeds of $655,985 from sales
prior to December 31, 1994, which have been settled.
YES! Entertainment Corporation
- ------------------------------
In June 1995, the company completed its initial public offering ("IPO").
Prior to the IPO, the company effected a 1-for-15 reverse stock split.
The Partnership's Series B Preferred shares were converted into 55,555
common shares. The Managing General Partners determined that there has
been a decline in value of the Partnership's investment; as a result, a
realized loss of $333,335 was recorded. The loss reflects the fact that
the stock will be restricted for two years.
Venture Capital Limited Partnership Investments
- -----------------------------------------------
The Partnership recorded a cost basis increase of $101,463 during the
first half of 1995 from additional contributions to certain venture
capital limited partnership investments.
4. Secured Notes Receivable, Net
-----------------------------
Activity from January 1, 1995 through June 30, 1995 consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1995 $1,435,190
1995 activity:
Repayments of secured notes receivable (240,108)
Increase in allowance for loan losses (133,000)
Write-off of interest receivable (48,403)
Change in interest receivable (12,869)
Other activity, net 1,221
---------
Total secured notes receivable, net, at June 30, 1995 $1,002,031
=========
</TABLE>
The Partnership had accrued interest of $58,369 and $119,641 at June 30,
1995 and December 31, 1994, respectively.
During the second quarter of 1995, the Partnership wrote off $48,403 in
interest receivable from a portfolio company in the biomedical industry
as collection was considered unlikely.
Activity in the allowance for loan losses was as follows:
<TABLE>
<S> <C>
Balance at January 1, 1995 $560,000
Change in net unrealized fair value of
secured notes receivable 133,000
-------
Balance at June 30, 1995 $693,000
=======
</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 Partners' assessment of the
portfolio as a whole.
Notes with a total cost basis of $1,477,314 were on nonaccrual status
due to uncertainties related to borrowers' financial condition at June
30, 1995. The Managing General Partners continue to monitor the
progress of these companies. The fair value at June 30, 1995 is based
on the Managing General Partners' estimate of collectibility of these
notes.
5. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at June 30, 1995 and December 31, 1994
consisted of:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Demand accounts $ 1,539 2,241
Money-market accounts 8,321,396 11,369,292
--------- ----------
Total $8,322,935 11,371,533
========= ==========
</TABLE>
6. Commitments and contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business. Generally, these
instruments are commitments for future equity fundings, venture capital
limited partnership investments, equipment financing commitments, or
accounts receivable lines of credit that are outstanding but not
currently fully utilized. 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 as follows:
<TABLE>
<S> <C>
Type
- ----
Equity investments $1,477,737
Venture capital limited partnership investments 592,597
---------
Total $2,070,334
=========
</TABLE>
In June 1995, the Partnership agreed to guarantee a $750,000 line of
credit between a financial institution and a portfolio company in the
computer systems and software industry. While the Partnership expects
the portfolio company to repay the line of credit, if the portfolio
company fails to do so, the Partnership may be liable up to the
guarantee amount.
<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 $618,094. The Partnership paid management fees of $398,159 to
the Managing General Partners and reimbursed related parties for
operating expenses of $427,965. In addition, $16,849 was paid to the
individual general partners as compensation for their services. Other
operating expenses of $166,280 were paid and $391,159 in interest income
was received.
During the six months ended June 30, 1995, the Partnership funded equity
investments of $4,943,033 primarily to portfolio companies in the
environmental, industrial/business automation, and computer systems and
software industries. Proceeds from sales of equity investments were
$2,022,421 of which $783,735 related to sales prior to December 31,
1994, which have been settled. Repayments of convertible and secured
notes receivable provided cash of $490,108. As of June 30, 1995, the
Partnership was committed to fund additional investments totaling
$2,070,334.
During the first half of 1995, YES! Entertainment Corporation completed
its initial public offering ("IPO"). Although the Partnership's
holdings in YES! Entertainment Corporation are subject to selling
restrictions, the IPO indicates potential future liquidity for this
investment.
Cash and cash equivalents at June 30, 1995 were $8,322,935. Future
interest income on short-term investments and notes receivable, and
operating cash reserves are expected to be adequate 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 $263,638 for the three months ended June 30, 1995 compared
to a net income of $1,845,518 for the same period in 1994. The change
was primarily due to a $1,042,082 decrease in the change in net
unrealized fair value of equity investments, a $635,920 increase in
realized losses from investment write-downs, and a $442,355 decrease in
realized gains from sales of equity investments. These changes were
partially offset by a $139,000 increase in the change in net unrealized
fair value of secured notes receivable.
During the three months ended June 30, 1995, the increase in fair value
of equity investments of $759,020 was primarily due to portfolio
companies in the industrial/business automation and communications
industries, partially offset by decreases in the medical industry.
During the same period in 1994, the increase in fair value of $1,801,102
was primarily due to portfolio companies in the medical industry,
partially offset by decreases in the retail/consumer products, and
computer systems and software industries.
Realized losses from investment write-downs of $635,920 for the three
months ended June 30, 1995 primarily related to the write-down of
portfolio companies in the retail/consumer products and communications
industries. During the same period in 1994, there were no such write-
downs.
There were no sales of equity investments for the three months ended
June 30, 1995. During the same period in 1994, realized gains of
$442,355 related to the partial sale of TheraTx, Incorporated.
During the three months ended June 30, 1995, the Partnership recorded a
decrease in the fair value of secured notes receivable of $19,000 based
upon the level of loan loss reserves deemed adequate by the Managing
General Partners. A $158,000 decrease was recorded for the same period
in 1994.
Total operating expenses were $375,584 and $299,364 for the three months
ended June 30, 1995 and 1994, respectively. The increase was primarily
due to higher investment operations expenses and professional fees
resulting from higher overall portfolio activities.
Total income was $178,424 and $270,723 during the three months ended
June 30, 1995 and 1994, respectively. The decrease was primarily
related to lower notes receivable interest income due to additional
notes placed on nonaccrual status, partially offset by higher short-term
investment income due to higher interest rates.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
Current six months compared to corresponding six months in the preceding
- ------------------------------------------------------------------------
year
- ----
Net income was $124,671 for the six months ended June 30, 1995 compared
to $809,137 during the same period in 1994. The decrease in income was
primarily due to a $637,420 increase in realized losses from investment
write-downs and a $303,832 decrease in the change in net unrealized fair
value of equity investments. These changes were partially offset by a
$401,580 increase in realized gains from sales of equity investments and
a $152,862 decrease in interest income.
Realized losses from investment write-downs of $639,920 primarily
related to portfolio companies in the retail/consumer products and
communications industries. In 1994, $2,500 of such losses were
realized.
During the six months ended June 30, 1995, the increase in fair value of
equity investments of $602,558 was primarily due to portfolio companies
in the microelectronics, communications, and retail/consumer products
industries, partially offset by decreases in the medical industry.
During the same period in 1994, the increase in fair value of equity
investments of $906,390 was primarily due to portfolio companies in the
medical industry, partially offset by decreases in the retail/consumer
products, communications, and computer systems and software industries.
Realized gains from sales of equity investments of $935,950 for the six
months ended June 30, 1995 related to the partial sales of UroMed
Corporation and TheraTx, Incorporated. During the same period in 1994,
realized gains of $534,370 related to the partial sales of TheraTx,
Incorporated, EROX Corporation and Orthologic Corporation.
Total income was $383,635 and $536,497 during the six months ended June
30, 1995 and 1994, respectively. The decrease in notes receivable
interest income was primarily due to additional notes placed on non-
accrual status, partially offset by an increase in short-term investment
interest due to higher interest rates.
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 VENTURE PARTNERS V,
AN AGGRESSIVE GROWTH FUND, L.P.
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> 21,609,295
<INVESTMENTS-AT-VALUE> 24,435,800
<RECEIVABLES> 0
<ASSETS-OTHER> 19,429
<OTHER-ITEMS-ASSETS> 8,322,935
<TOTAL-ASSETS> 32,778,164
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 140,037
<TOTAL-LIABILITIES> 140,037
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,811,622
<SHARES-COMMON-STOCK> 400,000
<SHARES-COMMON-PRIOR> 400,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,826,505
<NET-ASSETS> 32,638,127
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 383,635
<OTHER-INCOME> 0
<EXPENSES-NET> 1,067,134
<NET-INVESTMENT-INCOME> (683,499)
<REALIZED-GAINS-CURRENT> 338,612
<APPREC-INCREASE-CURRENT> 469,558
<NET-CHANGE-FROM-OPS> 124,671
<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> 124,671
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 398,163
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,068,584
<AVERAGE-NET-ASSETS> 32,575,792
<PER-SHARE-NAV-BEGIN> 75
<PER-SHARE-NII> (1)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 75
<EXPENSE-RATIO> .03
<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>
