x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Texas
|
75-1072796
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
12900 Preston Road, Suite 700, Dallas, Texas
|
75230
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer o
|
Accelerated filer x
|
Non-accelerated filer o
|
Smaller reporting company o
|
PART I
|
FINANCIAL INFORMATION
|
Page
|
Item 1.
|
Consolidated Financial Statements
|
|
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
20
|
||
Item 2.
|
31
|
|
Item 3.
|
34
|
|
Item 4.
|
35
|
|
PART II
|
OTHER INFORMATION
|
|
Item 1.
|
35
|
|
Item 1A.
|
35
|
|
Item 6.
|
35
|
|
36
|
Item 1.
|
Consolidated Financial Statements
|
September 30
2011 |
March 31
2011 |
|
||||||
Assets
|
(Unaudited)
|
|
||||||
Investments at market or fair value
|
||||||||
Companies more than 25% owned (Cost: September 30, 2011 - $25,701, March 31, 2011 - $25,521)
|
$ | 291,307 | $ | 310,181 | ||||
Companies 5% to 25% owned (Cost: September 30, 2011 - $14,049, March 31, 2011 - $14,049)
|
77,968 | 83,335 | ||||||
Companies less than 5% owned (Cost: September 30, 2011 - $61,893, March 31, 2011 - $58,784)
|
74,653 | 95,757 | ||||||
Total investments (Cost: September 30, 2011 - $101,643, March 31, 2011 - $98,354)
|
443,928 | 489,273 | ||||||
Cash and cash equivalents
|
53,323 | 45,498 | ||||||
Receivables
|
||||||||
Dividends and interest
|
959 | 523 | ||||||
Affiliates
|
285 | 340 | ||||||
Pension assets
|
7,588 | 7,398 | ||||||
Other assets
|
167 | 182 | ||||||
Total assets
|
$ | 506,250 | $ | 543,214 | ||||
Liabilities
|
||||||||
Other liabilities
|
$ | 573 | $ | 574 | ||||
Pension liability
|
1,298 | 1,257 | ||||||
Deferred income taxes
|
2,204 | 2,150 | ||||||
Total liabilities
|
4,075 | 3,981 | ||||||
Net Assets
|
||||||||
Common stock, $1 par value: authorized, 5,000,000 shares; issued, 4,339,416 shares at September 30, 2011 and 4,337,916 shares at March 31, 2011
|
4,339 | 4,338 | ||||||
Additional capital
|
174,506 | 173,905 | ||||||
Accumulated net investment income (loss)
|
(593 | ) | 872 | |||||
Accumulated net realized gain (loss)
|
5,576 | (6,863 | ) | |||||
Unrealized appreciation of investments
|
342,284 | 390,918 | ||||||
Treasury stock - at cost on 584,878 shares
|
(23,937 | ) | (23,937 | ) | ||||
Total net assets
|
502,175 | 539,233 | ||||||
Total liabilities and net assets
|
$ | 506,250 | $ | 543,214 | ||||
Net asset value per share (on the 3,754,538 shares outstanding at September 30, 2011 and 3,753,038 shares outstanding at March 31, 2011)
|
$ | 133.75 | $ | 143.68 |
Three Months Ended
September 30 |
Six Months Ended
September 30 |
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Investment income:
|
||||||||||||||||
Interest
|
$ | 484 | $ | 450 | $ | 937 | $ | 750 | ||||||||
Dividends
|
621 | 572 | 1,193 | 2,961 | ||||||||||||
Management and directors’ fees
|
152 | 142 | 324 | 419 | ||||||||||||
1,257 | 1,164 | 2,454 | 4,130 | |||||||||||||
Operating expenses:
|
||||||||||||||||
Salaries
|
511 | 464 | 983 | 863 | ||||||||||||
Stock option expense
|
259 | 244 | 503 | 468 | ||||||||||||
Net pension benefit
|
(77 | ) | (53 | ) | (150 | ) | (146 | ) | ||||||||
Professional fees
|
234 | 176 | 539 | 413 | ||||||||||||
Other operating expenses
|
278 | 233 | 495 | 440 | ||||||||||||
1,205 | 1,064 | 2,370 | 2,038 | |||||||||||||
Income before income taxes
|
52 | 100 | 84 | 2,092 | ||||||||||||
Income tax expense
|
29 | 19 | 47 | 48 | ||||||||||||
Net investment income
|
$ | 23 | $ | 81 | $ | 37 | $ | 2,044 | ||||||||
Proceeds from disposition of investments
|
$ | 18,500 | $ | 530 | $ | 18,539 | 79,055 | |||||||||
Cost of investments sold
|
150 | 0 | 6,100 | 4,510 | ||||||||||||
Net realized gain on investments
|
18,350 | 530 | 12,439 | 74,545 | ||||||||||||
Net increase (decrease) in unrealized appreciation of investments
|
(44,076 | ) | 23,360 | (48,634 | ) | (42,383 | ) | |||||||||
Net realized and unrealized gain (loss) on investments
|
$ | (25,726 | ) | $ | 23,890 | (36,195 | ) | $ | 32,162 | |||||||
Increase (decrease) in net assets from operations
|
$ | (25,703 | ) | $ | 23,971 | $ | (36,158 | ) | $ | 34,206 |
Six Months
Ended |
Six Months
Ended |
|||||||
Operations:
|
||||||||
Net investment income
|
$ | 37 | $ | 2,044 | ||||
Net realized gain on investments
|
12,439 | 74,545 | ||||||
Net decrease in unrealized appreciation of investments
|
(48,634 | ) | (42,383 | ) | ||||
Increase (decrease) in net assets from operations
|
(36,158 | ) | 34,206 | |||||
Distributions from:
|
||||||||
Undistributed net investment income
|
(1,501 | ) | (1,497 | ) | ||||
Capital share transactions:
|
||||||||
Exercise of employee stock options
|
98 | 51 | ||||||
Stock option expense
|
503 | 468 | ||||||
Increase (decrease) in net assets
|
(37,058 | ) | 33,228 | |||||
Net assets, beginning of period
|
539,233 | 486,926 | ||||||
Net assets, end of period
|
$ | 502,175 | $ | 520,154 |
Three Months Ended
September 30
|
Six Months Ended
September 30
|
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Increase (decrease) in net assets from operations
|
$ | (25,703 | ) | $ | 23,971 | $ | (36,158 | ) | $ | 34,206 | ||||||
Adjustments to reconcile increase (decrease) in net assets from operations to net cash provided by (used in) operating activities:
|
||||||||||||||||
Net proceeds from disposition of investments
|
18,500 | 530 | 18,539 | 75,352 | ||||||||||||
Proceeds from repayment of loan securities or investments
|
2,000 | 134 | 2,111 | 134 | ||||||||||||
Purchases of securities
|
(1,678 | ) | (1,639 | ) | (11,500 | ) | (4,034 | ) | ||||||||
Depreciation and amortization
|
5 | 6 | 10 | 13 | ||||||||||||
Net pension benefit
|
(77 | ) | (53 | ) | (150 | ) | (146 | ) | ||||||||
Realized gain on investments before income tax
|
(18,350 | ) | (530 | ) | (12,439 | ) | (74,545 | ) | ||||||||
Net (increase) decrease in unrealized appreciation of investments
|
44,076 | (23,360 | ) | 48,634 | 42,383 | |||||||||||
Stock option expense
|
259 | 244 | 503 | 468 | ||||||||||||
Decrease (increase) in dividend and interest receivable
|
(207 | ) | 74 | (436 | ) | 750 | ||||||||||
Decrease (increase) in receivables from affiliates
|
(433 | ) | 359 | 55 | 576 | |||||||||||
Decrease in other assets
|
4 | 9 | 5 | 5 | ||||||||||||
Increase (decrease) in other liabilities
|
125 | (753 | ) | - | (803 | ) | ||||||||||
Increase in deferred income taxes
|
29 | 19 | 54 | 51 | ||||||||||||
Net cash provided by (used in) operating activities
|
18,550 | (989 | ) | 9,228 | 74,410 | |||||||||||
Cash flows from financing activities
|
||||||||||||||||
Distributions from undistributed net investment income
|
– | – | (1,501 | ) | (1,497 | ) | ||||||||||
Proceeds from exercise of employee stock options
|
98 | 51 | 98 | 51 | ||||||||||||
Net cash used in financing activities
|
98 | 51 | (1,403 | ) | (1,446 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
18,648 | (938 | ) | 7,825 | 72,964 | |||||||||||
Cash and cash equivalents at beginning of period
|
34,675 | 77,996 | 45,498 | 4,094 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 53,323 | $ | 77,058 | $ | 53,323 | $ | 77,058 | ||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||||||
Income taxes
|
$ | – | $ | – | $ | – | $ | – |
a.
|
In June 2010, the Company transferred $3,703,619 in certain tracts of Real Estate from Lifemark Group to their newly formed CapStar Holdings Corporation, wholly-owned by the Company.
|
Total Investments
|
$ | – | $ | – | $ | – | $ | 3,704 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
¥†ALAMO GROUP INC.
Seguin, Texas
Tractor-mounted mowing and mobile excavation equipment for governmental, industrial and agricultural markets; street-sweeping equipment for municipalities.
|
22.0 | % |
2,832,300 shares common stock (acquired 4-1-73 thru 5-09-11)
|
$ | 2,190,937 | $ | 47,441,025 | |||||||
ATLANTIC CAPITAL BANCSHARES, INC
Atlanta, Georgia
Holding company of Atlantic Capital Bank, a full service commercial bank.
|
1.9 | % |
300,000 shares common stock (acquired 4-10-07)
|
3,000,000 | 1,835,000 | |||||||||
¥BALCO, INC.
Wichita, Kansas
Specialty architectural products used in the construction and remodeling of commercial and institutional buildings.
|
90.9 | % |
445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02)
|
624,920 | 4,400,000 | |||||||||
*BOXX TECHNOLOGIES, INC. Austin, Texas
Workstations for computer graphic imaging and design.
|
14.9 | % |
3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share (acquired 8-20-99 thru 8-8-01)
|
1,500,000 | 363,328 | |||||||||
CINATRA CLEAN TECHNOLOGIES, INC.
Houston, Texas
Cleans above ground oil storage tanks with a patented, automated system.
|
73.4 | % |
12% subordinated secured promissory note, due 2015 (acquired 5-19-10 thru 10-20-10)
|
779,278 | 779,278 | |||||||||
12% subordinated secured promissory note, due 2016 (acquired 5-9-11 thru 8-31-11)
|
1,950,464 | 1,950,464 | ||||||||||||
12% subordinated secured promissory note, due 2016 (acquired 9-9-11)
|
1,219,040 | 1,219,040 | ||||||||||||
10% subordinated secured promissory note, due 2016 (acquired 7-14-08 thru 4-28-10)
|
6,200,700 | 6,200,700 | ||||||||||||
3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10)
|
3,033,410 | 439,707 | ||||||||||||
Warrants to purchase 1,269,833 shares of common stock at $1.00 per share, expiring 2021 (acquired 5-9-11 thru 8-31-11)
|
– | – | ||||||||||||
13,182,892 | 10,589,189 | |||||||||||||
*†ENCORE WIRE CORPORATION
McKinney, Texas
Electric wire and cable for residential, commercial and industrial construction use.
|
16.9 | % |
4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98)
|
5,800,000 | 75,604,875 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
EXTREME INTERNATIONAL, INC.
Sugar Land, Texas
Owns Bill Young Productions, Texas Video and Post, and Extreme and television commercials and corporate communications videos.
|
53.6 | % |
13,035 shares Series A Common Stock (acquired 9-26-08 and 12-18-08)
|
325,875 | 755,000 | |||||||||
39,359.18 shares Series C Convertible Preferred Stock, convertible into 157,437.72 shares of common stock at $25.00 per share (acquired 9-30-03)
|
2,625,000 | 9,124,000 | ||||||||||||
3,750 shares 8% Series A Convertible Preferred Stock, convertible into 15,000 shares of common stock at $25.00 per share (acquired 9-30-03)
|
375,000 | 869,000 | ||||||||||||
3,325,875 | 10,748,000 | |||||||||||||
¥†HEELYS, INC.
Carrollton, Texas
Heelys stealth skate shoes, equipment and apparel sold through sporting goods chains, department stores and footwear retailers.
|
31.1 | % |
9,317,310 shares common stock (acquired 5-26-00)
|
102,490 | 16,938,870 | |||||||||
†HOLOGIC, INC.
Bedford, Massachusetts
Medical instruments including bone densitometers, mammography devices and digital radiography systems.
|
< 1
|
% |
‡632,820 shares common stock (acquired 8-27-99)
|
220,000 | 9,625,192 | |||||||||
iMEMORIES, INC.
Scottsdale, Arizona
Enables online video and photo sharing and DVD creation for home movies recorded in analog and new digital format.
|
29.7 | % |
17,391,304 shares Series B Convertible Preferred Stock, convertible into 17,391,304 shares of common stock at $0.23 per share (acquired 7-10-09)
|
4,000,000 | 4,000,000 | |||||||||
4,684,967 shares Series C Convertible Preferred Stock, convertible into 4,684,967 shares of common stock at $0.23 per share (acquired 7-20-11)
|
1,078,479 | 1,078,479 | ||||||||||||
Warrants to purchase 2,500,000 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10 thru 1-21-11)
|
– | – | ||||||||||||
5,078,479 | 5,078,479 | |||||||||||||
INSTAWARES HOLDING COMPANY, LLC
Atlanta, Georgia
Provides services to the restaurant industry via its five subsidiary companies.
|
4.4 | % |
3,846,154 Class D shares (acquired 5-20-11)
|
5,000,000 | 5,000,000 | |||||||||
KBI BIOPHARMA, INC.
Durham, North Carolina
Provides fully-integrated, outsourced drug development and bio-manufacturing services.
|
17.1 | % |
7,142,857 shares Series B-2 Convertible Preferred Stock, convertible into 10,204,082 shares of common stock at $0.49 per share (acquired 9-08-09)
|
5,000,000 | 1,600,000 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
¥MEDIA RECOVERY, INC.
Dallas, Texas
Computer datacenter and office automation supplies and accessories; impact, tilt monitoring and temperature sensing devices to detect mishandling shipments; dunnage for protecting shipments.
|
97.9 | % |
800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00 per share (acquired 11-4-97)
|
800,000 | 2,700,000 | |||||||||
4,000,002 shares common stock (acquired 11-4-97)
|
4,615,000 | 13,700,000 | ||||||||||||
5,415,000 | 16,400,000 | |||||||||||||
*PALLETONE, INC.
Bartow, Florida
Manufacturer of wooden pallets and pressure-treated lumber.
|
8.4 | % |
12.3% senior subordinated notes, $2,000,000 principal due 2015 (acquired 9-25-06)
|
1,553,150 | 2,000,000 | |||||||||
150,000 shares common stock (acquired 10-18-01)
|
150,000 | 2 | ||||||||||||
Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011 (acquired 2-17-06)
|
45,746 | – | ||||||||||||
1,748,896 | 2,000,002 | |||||||||||||
¥†PALM HARBOR HOMES, INC.
Dallas, Texas
Integrated manufacturing, retailing, financing and insuring of manufactured housing and modular homes.
|
30.4 | % |
7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95)
|
10,931,955 | 2 | |||||||||
Warrant to purchase 286,625 shares of common stock at $3.14 per share, expiring 2019 (acquired 4-24-09)
|
– | – | ||||||||||||
10,931,955 | 2 | |||||||||||||
¥THE RECTORSEAL CORPORATION
Houston, Texas
Specialty chemicals for plumbing, HVAC, electrical, construction, industrial, oil field and automotive applications; smoke containment systems for building fires; also owns 20% of The Whitmore Manufacturing Company.
|
100.0 | % |
27,907 shares common stock (acquired 1-5-73 and 3-31-73)
|
52,600 | 141,300,000 | |||||||||
TCI HOLDINGS, INC.
Denver, Colorado
Cable television systems and microwave relay systems.
|
– |
21 shares 12% Series C Cumulative Compounding Preferred Stock (acquired 1-30-90)
|
– | 826,115 | ||||||||||
†TEXAS CAPITAL BANCSHARES, INC.
Dallas, Texas
Regional bank holding company with banking operations in six Texas cities.
|
1.3 | % |
‡489,656 shares common stock (acquired 5-1-00)
|
3,550,006 | 11,188,640 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
TRAX HOLDINGS, INC.
Scottsdale, Arizona
Provides a comprehensive set of solutions to improve the transportation validation, accounting, payment and information management process.
|
29.6 | % |
18% convertible promissory note, $3,200,000 principal due 2012 (acquired 4-6-11 thru 5-6-11)
|
2,650,000 | 2,650,000 | |||||||||
1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,061,279 common stock at $4.64 per share (acquired 12-8-08 and 2-17-09)
|
5,000,000 | 5,800,000 | ||||||||||||
7,650,000 | 8,450,000 | |||||||||||||
VIA HOLDINGS, INC.
Sparks, Nevada
Designer, manufacturer and distributor of high-quality office seating.
|
3.2 | % |
12,686 shares common stock (acquired 3-4-11 and 3-25-11)
|
4,926,290 | 2 | |||||||||
*WELLOGIX, INC.
Houston, Texas
Developer and supporter of software used by the oil and gas industry.
|
19.2 | % |
4,788,371 shares Series A-1 Convertible Participating Preferred Stock, convertible into 4,788,371 shares of common stock at $1.0441 per share (acquired 8-19-05 thru 6-15-08)
|
5,000,000 | 2 | |||||||||
¥THE WHITMORE MANUFACTURING COMPANY Rockwall, Texas
Specialized surface mining, railroad and industrial lubricants; coatings for automobiles and primary metals; fluid contamination control devices.
|
80.0 | % |
80 shares common stock (acquired 8-31-79)
|
1,600,000 | 59,600,000 | |||||||||
MISCELLANEOUS
|
– |
Ballast Point Ventures II, L.P.
2.2% limited partnership interest (acquired 8-4-08 thru 6-18-10)
|
1,425,000 | 1,425,000 | ||||||||||
– |
BankCap Partners Fund I, L.P.
5.5% limited partnership interest (acquired 7-14-06 thru 5-2-11)
|
5,762,270 | 5,150,520 | |||||||||||
– |
CapitalSouth Partners Fund III, L.P.
1.9% limited partnership interest (acquired 1-22-08 and 2-12-09)
|
831,256 | 862,000 | |||||||||||
100.0 | % |
¥CapStar Holdings Corporation
500 shares common stock (acquired 6-10-10)
|
3,703,619 | 4,365,593 | ||||||||||
– |
Diamond State Ventures, L.P.
1.4% limited partnership interest (acquired 10-12-99 thru 8-26-05)
|
76,000 | 174,965 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
MISCELLANEOUS (continued)
|
– |
¥Discovery Alliance, LLC
90.0% limited liability company (acquired 9-12-08 thru 6-20-11)
|
1,080,000 | 713,904 | ||||||||||
– |
Essex Capital Corporation
10% unsecured promissory note due 8-19-10 (acquired 8-16-09)
|
– | 500,000 | |||||||||||
– |
First Capital Group of Texas III, L.P.
3.0% limited partnership interest (acquired 12-26-00 thru 8-12-05)
|
778,895 | 611,875 | |||||||||||
100 | % |
¥Humac Company
1,041,000 shares common stock (acquired 1-31-75 and 12-31-75)
|
– | 147,000 | ||||||||||
– |
STARTech Seed Fund I
12.1% limited partnership interest (acquired 4-17-98 thru 1-5-00)
|
178,066 | 40,773 | |||||||||||
– |
STARTech Seed Fund II
3.2% limited partnership interest (acquired 4-28-00 thru 2-23-05)
|
843,891 | 317,671 | |||||||||||
– |
Sterling Group Partners I, L.P.
1.6% limited partnership interest (acquired 4-20-01 thru 1-24-05)
|
1,064,042 | 629,500 | |||||||||||
TOTAL INVESTMENTS
|
$ | 101,643,379 | $ | 443,927,522 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
¥†ALAMO GROUP INC.
Seguin, Texas
Tractor-mounted mowing and mobile excavation equipment for governmental, industrial and agricultural markets; street-sweeping equipment for municipalities.
|
22.0 | % |
2,830,300 shares common stock (acquired 4-1-73 thru 5-25-07)
|
$ | 2,190,937 | $ | 62,266,600 | |||||||
ALL COMPONENTS, INC.
Pflugerville, Texas
Electronics contract manufacturing; distribution and production of memory and other components for computer manufacturers, retailers and value-added resellers.
|
80.4 | % |
8.25% subordinate note, $2,000,000 principal due 2012 (acquired 6-27-07)
|
2,000,000 | 2,000,000 | |||||||||
150,000 shares Series A Convertible Preferred Stock; convertible into 600,000 shares of common stock at $0.25 per share (acquired 9-16-94)
|
150,000 | 8,431,388 | ||||||||||||
Warrant to purchase 350,000 shares of common stock at $11.00 per share, expiring 2017 (acquired 6-27-07)
|
– | 3,068,552 | ||||||||||||
2,150,000 | 13,499,940 | |||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC
Atlanta, Georgia
Holding company of Atlantic Capital Bank, a full service commercial bank.
|
1.9 | % |
300,000 shares common stock (acquired 4-10-07)
|
3,000,000 | 2,257,000 | |||||||||
¥BALCO, INC.
Wichita, Kansas
Specialty architectural products used in the construction and remodeling of commercial and institutional buildings.
|
90.9 | % |
445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02)
|
624,920 | 5,200,000 | |||||||||
*BOXX TECHNOLOGIES, INC.
Austin, Texas
Workstations for computer graphic imaging and design.
|
14.9 | % |
3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share (acquired 8-20-99 thru 8-8-01)
|
1,500,000 | 2 | |||||||||
CINATRA CLEAN TECHNOLOGIES, INC.
Houston, Texas
Cleans above ground oil storage tanks with a patented, automated system.
|
68.8 | % |
12% subordinated secured promissory note, due 2012 (acquired 5-19-10 thru 10-20-10)
|
890,604 | 890,604 | |||||||||
10% subordinated secured promissory note, due 2013 (acquired 7-14-08 thru 4-28-10)
|
6,200,700 | 6,200,700 | ||||||||||||
3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10)
|
3,033,410 | 3,033,410 | ||||||||||||
10,124,714 | 10,124,714 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
*†ENCORE WIRE CORPORATION
McKinney, Texas
Electric wire and cable for residential, commercial and industrial construction use.
|
16.9 | % |
4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98)
|
5,800,000 | 81,735,000 | |||||||||
EXTREME INTERNATIONAL, INC.
Sugar Land, Texas
Owns Bill Young Productions, Texas Video and Post, and Extreme and television commercials and corporate communications videos.
|
53.6 | % |
13,035 shares Series A Common Stock (acquired 9-26-08 and 12-18-08)
|
325,875 | 815,000 | |||||||||
39,359.18 shares Series C Convertible Preferred Stock, convertible into 157,437.72 shares of common stock at $25.00 per share (acquired 9-30-03)
|
2,625,000 | 9,850,000 | ||||||||||||
3,750 shares 8% Series A Convertible Preferred Stock, convertible into 15,000 shares of common stock at $25.00 per share (acquired 9-30-03)
|
375,000 | 938,000 | ||||||||||||
3,325,875 | 11,603,000 | |||||||||||||
¥†HEELYS, INC.
Carrollton, Texas
Heelys stealth skate shoes, equipment and apparel sold through sporting goods chains, department stores and footwear retailers.
|
31.6 | % |
9,317,310 shares common stock (acquired 5-26-00)
|
102,490 | 19,193,659 | |||||||||
†HOLOGIC, INC.
Bedford, Massachusetts
Medical instruments including bone densitometers, mammography devices and digital radiography systems.
|
< 1
|
% |
‡632,820 shares common stock (acquired 8-27-99)
|
220,000 | 14,042,276 | |||||||||
iMEMORIES, INC.
Scottsdale, Arizona
Enables online video and photo sharing and DVD creation for home movies recorded in analog and new digital format.
|
27.2 | % |
10% convertible promissory note, due 2012 (acquired 9-13-10)
|
1,000,000 | 1,000,000 | |||||||||
17,391,304 shares Series B Convertible Preferred Stock, convertible into 17,391,304 shares of common stock at $0.23 per share (acquired 7-10-09)
|
4,000,000 | 4,000,000 | ||||||||||||
Warrant to purchase 968,750 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10)
|
– | – | ||||||||||||
5,000,000 | 5,000,000 | |||||||||||||
KBI BIOPHARMA, INC.
Durham, North Carolina
Provides fully-integrated, outsourced drug development and bio-manufacturing services.
|
17.1 | % |
7,142,857 shares Series B-2 Convertible Preferred Stock, convertible into 10,204,082 shares of common stock at $0.49 per share (acquired 9-08-09)
|
5,000,000 | 4,200,000 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
¥MEDIA RECOVERY, INC.
Dallas, Texas
Computer datacenter and office automation supplies and accessories; impact, tilt monitoring and temperature sensing devices to detect mishandling shipments; dunnage for protecting shipments.
|
97.5 | % |
800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00 per share (acquired 11-4-97)
|
800,000 | 3,000,000 | |||||||||
4,000,002 shares common stock (acquired 11-4-97)
|
4,615,000 | 15,100,000 | ||||||||||||
5,415,000 | 18,100,000 | |||||||||||||
*PALLETONE, INC.
Bartow, Florida
Manufacturer of wooden pallets and pressure-treated lumber.
|
8.4 | % |
12.3% senior subordinated notes, $2,000,000 principal due 2015 (acquired 9-25-06)
|
1,553,150 | 1,600,000 | |||||||||
150,000 shares common stock (acquired 10-18-01)
|
150,000 | 2 | ||||||||||||
Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011 (acquired 2-17-06)
|
45,746 | – | ||||||||||||
1,748,896 | 1,600,002 | |||||||||||||
¥†PALM HARBOR HOMES, INC.
Dallas, Texas
Integrated manufacturing, retailing, financing and insuring of manufactured housing and modular homes.
|
30.4 | % |
7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95)
|
10,931,955 | 2 | |||||||||
Warrant to purchase 286,625 shares of common stock at $3.14 per share, expiring 2019 (acquired 4-24-09)
|
– | – | ||||||||||||
10,931,955 | 2 | |||||||||||||
PHI HEALTH, INC.
Richardson, Texas
Develops and sells cardiac MRI systems and software.
|
67.0 | % |
1,559,111 shares Series A-1 Convertible Preferred Stock convertible into 1,559,111 shares of common stock at $0.0015 per share (acquired 1-27-11)
|
2,339 | 2,339 | |||||||||
555,556 shares Series B-1 Convertible Preferred Stock convertible into 555,556 shares common stock at $2.25 per share (acquired 1-27-11)
|
1,250,000 | 1,250,000 | ||||||||||||
4,500,000 Shares Series C-1 Convertible Preferred Stock convertible into 4,500,000 shares common stock at $0.20 per share (acquired 1-7-11 and 1-27-11)
|
4,500,000 | 4,500,000 | ||||||||||||
5,752,339 | 5,752,339 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
¥THE RECTORSEAL CORPORATION
Houston, Texas
Specialty chemicals for plumbing, HVAC, electrical, construction, industrial, oil field and automotive applications; smoke containment systems for building fires; also owns 20% of The Whitmore Manufacturing Company.
|
100.0 | % |
27,907 shares common stock (acquired 1-5-73 and 3-31-73)
|
52,600 | 144,700,000 | |||||||||
TCI HOLDINGS, INC.
Denver, Colorado
Cable television systems and microwave relay systems.
|
– |
21 shares 12% Series C Cumulative Compounding Preferred Stock (acquired 1-30-90)
|
– | 840,778 | ||||||||||
†TEXAS CAPITAL BANCSHARES, INC.
Dallas, Texas
Regional bank holding company with banking operations in six Texas cities.
|
1.6 | % |
‡489,656 shares common stock (acquired 5-1-00)
|
3,550,006 | 12,711,470 | |||||||||
TRAX HOLDINGS, INC.
Scottsdale, Arizona
Provides a comprehensive set of solutions to improve the transportation validation, accounting, payment and information management process.
|
30.7 | % |
1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,077,203 common stock at $4.64 per share (acquired 12-8-08 and 2-17-09)
|
5,000,000 | 5,758,030 | |||||||||
VIA HOLDINGS, INC.
Sparks, Nevada
Designer, manufacturer and distributor of high-quality office seating.
|
28.1 | % |
12,686 shares common stock (acquired 3-4-11 and 3-25-11)
|
4,926,290 | 4 | |||||||||
*WELLOGIX, INC.
Houston, Texas
Developer and supporter of software used by the oil and gas industry.
|
19.2 | % |
4,788,371 shares Series A-1 Convertible Participating Preferred Stock, convertible into 4,788,371 shares of common stock at $1.0441 per share (acquired 8-19-05 thru 6-15-08)
|
5,000,000 | 2 | |||||||||
¥THE WHITMORE MANUFACTURING COMPANY
Rockwall, Texas
Specialized surface mining, railroad and industrial lubricants; coatings for automobiles and primary metals; fluid contamination control devices.
|
80.0 | % |
80 shares common stock (acquired 8-31-79)
|
1,600,000 | 55,600,000 | |||||||||
MISCELLANEOUS
|
– |
Ballast Point Ventures II, L.P.
2.2% limited partnership interest (acquired 8-4-08 thru 6-18-10)
|
1,200,000 | 1,200,000 |
Company
|
Equity (a)
|
Investment (b)
|
Cost
|
Value (c)
|
||||||||||
MISCELLANEOUS (continued)
|
– |
BankCap Partners Fund I, L.P.
5.5% limited partnership interest (acquired 7-14-06 thru 12-13-10)
|
5,762,270 | 5,101,727 | ||||||||||
– |
CapitalSouth Partners Fund III, L.P.
1.9% limited partnership interest (acquired 1-22-08 and 2-12-09)
|
831,256 | 790,000 | |||||||||||
100.0 | % |
¥CapStar Holdings Corporation
500 shares common stock (acquired 6-10-10)
|
3,703,619 | 4,380,481 | ||||||||||
– |
Diamond State Ventures, L.P.
1.4% limited partnership interest (acquired 10-12-99 thru 8-26-05)
|
76,000 | 177,996 | |||||||||||
– |
¥Discovery Alliance, LLC
90.0% limited liability company (acquired 9-12-08 thru 5-14-10)
|
900,000 | 574,488 | |||||||||||
– |
Essex Capital Corporation
10% unsecured promissory note due 8-19-10 (acquired 8-16-09)
|
– | 1,000,000 | |||||||||||
– |
First Capital Group of Texas III, L.P.
3.0% limited partnership interest (acquired 12-26-00 thru 8-12-05)
|
778,894 | 407,731 | |||||||||||
100 | % |
¥Humac Company
1,041,000 shares common stock (acquired 1-31-75 and 12-31-75)
|
– | 166,000 | ||||||||||
– |
STARTech Seed Fund I
12.1% limited partnership interest (acquired 4-17-98 thru 1-5-00)
|
178,066 | 52,606 | |||||||||||
– |
STARTech Seed Fund II
3.2% limited partnership interest (acquired 4-28-00 thru 2-23-05)
|
843,891 | 317,392 | |||||||||||
– |
Sterling Group Partners I, L.P.
1.6% limited partnership interest (acquired 4-20-01 thru 1-24-05)
|
1,064,042 | 919,417 | |||||||||||
TOTAL INVESTMENTS
|
$ | 98,354,060 | $ | 489,272,655 |
(a)
|
Equity
|
(b)
|
Investments
|
(c)
|
Value
|
(d)
|
Agreements Between Certain Issuers and the Company
|
(e)
|
Descriptions and Ownership Percentages
|
1.
|
ORGANIZATION AND BASIS OF PRESENTATION
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
3.
|
INVESTMENTS
|
|
·
|
Level 1: Investments whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. We use Level 1 inputs for publicly traded unrestricted securities. Such investments are valued at the closing price for listed securities and at the lower of the closing bid price or the closing sale price for over-the-counter (NASDAQ) securities on the valuation date.
|
|
·
|
Level 2: Investments whose values are based on observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in non-active markets, quoted prices for similar instruments in active markets and similar data. We did not value any of our investments using Level 2 inputs as of June 30, 2011 and 2010.
|
|
·
|
Level 3: Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment. We use Level 3 inputs for measuring the fair value of substantially all of our investments. See “Notes to Consolidated Schedule of Investments” (c) on page 18 for the investment policy used to determine the fair value of these investments.
|
Fair Value Measurements
at 9/30/11 Using
|
||||||||||||||||
Asset Category
|
Total
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Debt
|
$ | 15.3 | $ | − | $ | − | $ | 15.3 | ||||||||
Partnership Interests
|
9.9 | − | − | 9.9 | ||||||||||||
Preferred Equity
|
31.8 | − | − | 31.8 | ||||||||||||
Common Equity
|
386.9 | 20.8 | − | 366.1 | ||||||||||||
Total Investments
|
$ | 443.9 | $ | 20.8 | $ | − | $ | 423.1 |
Fair Value Measurements
at 3/31/11 Using
|
||||||||||||||||
Asset Category
|
Total
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Debt
|
$ | 12.7 | $ | − | $ | − | $ | 12.7 | ||||||||
Partnership Interests
|
9.5 | − | − | 9.5 | ||||||||||||
Preferred Equity
|
45.8 | − | − | 45.8 | ||||||||||||
Common Equity
|
421.3 | 26.8 | − | 394.5 | ||||||||||||
Total Investments
|
$ | 489.3 | $ | 26.8 | $ | − | $ | 462.5 |
Fair Value 3/31/11
|
Net Unrealized Appreciation (Depreciation)
|
Net Changes from Unrealized to Realized
|
New / Add-On
Invest-
ments
|
Divesti-
tures
|
Fair Value 9/30/11
|
|||||||||||||||||||
Debt
|
$ | 12.7 | $ | (0.1 | ) | $ | (2.0 | ) | $ | 5.7 | $ | (1.0 | ) | $ | 15.3 | |||||||||
Partnership Interest
|
9.5 | − | − | 0.4 | − | 9.9 | ||||||||||||||||||
Preferred Equity
|
45.8 | (14.2 | ) | − | 6.3 | (6.1 | ) | 31.8 | ||||||||||||||||
Common Equity
|
394.5 | (19.2 | ) | (9.2 | ) | − | − | 366.1 | ||||||||||||||||
Total Investments
|
$ | 462.5 | $ | (33.5 | ) | $ | (11.2 | ) | $ | 12.4 | $ | (7.1 | ) | $ | 423.1 |
Fair Value 6/30/11
|
Net Unrealized Appreciation (Depreciation)
|
Net Changes from Unrealized to Realized
|
New / Add-On
Invest-
ments
|
Divesti-
tures
|
Fair Value 9/30/11
|
|||||||||||||||||||
Debt
|
$ | 17.0 | $ | (0.3 | ) | $ | (2.0 | ) | $ | 1.6 | $ | (1.0 | ) | $ | 15.3 | |||||||||
Partnership Interest
|
10.1 | (0.2 | ) | − | − | − | 9.9 | |||||||||||||||||
Preferred Equity
|
42.8 | (11.9 | ) | − | 1.1 | (0.2 | ) | 31.8 | ||||||||||||||||
Common Equity
|
393.2 | (17.9 | ) | (9.2 | ) | − | − | 366.1 | ||||||||||||||||
Total Investments
|
$ | 463.1 | $ | (30.3 | ) | $ | (11.2 | ) | $ | 2.7 | $ | (1.2 | ) | $ | 423.1 |
4.
|
INCOME TAXES
|
|
·
|
For the tax year ended December 31, 2010, we had net long-term capital gains of $70,221,589 for tax purposes and $70,325,930 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. During the quarter ended December 31, 2010 we recorded a $4,217,985 reduction in the gain on sale of Lifemark Group, Inc. This reduction was the result of a net asset adjustment calculated in accordance with the Stock Purchase Agreement signed on June 10, 2010.
|
|
·
|
In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $24,577,557 for the tax year ended December 31, 2010. For the tax year ended December 31, 2009, we had net long-term capital gains of $2,327,150 for tax purposes and $1,682,616 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $814,502 for the tax year ended December 31, 2009.
|
5.
|
ACCUMULATED NET REALIZED GAIN (LOSS)
|
6.
|
EMPLOYEE STOCK OPTION PLANS
|
Date of Grant
|
Number of Options Granted
|
Exercise Price (market price at time of grant)
|
||||||
July 18, 2011
|
10,000 | $ | 96.92 | |||||
July 19, 2010
|
15,000 | $ | 88.20 | |||||
March 22, 2010
|
20,000 | $ | 95.79 | |||||
October 19, 2009
|
38,750 | $ | 76.74 |
Black-Scholes Pricing Model Assumptions
|
||||||||||||||||||||
Date of Issuance
|
Weighted Average Fair Value
|
Expected Dividend Yield
|
Risk-Free Interest Rate
|
Expected Volatility
|
Expected Life (in years)
|
|||||||||||||||
2009 Plan
|
||||||||||||||||||||
July 18,2011
|
$ | 33.07 | 0.83 | % | 1.45 | % | 40.0 | % | 5 | |||||||||||
July 19, 2010
|
$ | 28.59 | 0.91 | % | 1.73 | % | 37.5 | % | 5 | |||||||||||
March 22, 2010
|
$ | 32.56 | 0.84 | % | 2.43 | % | 37.8 | % | 5 | |||||||||||
October 19, 2009
|
$ | 25.36 | 1.04 | % | 2.36 | % | 37.6 | % | 5 | |||||||||||
1999 Plan
|
||||||||||||||||||||
July 30, 2008
|
$ | 29.93 | 0.62 | % | 3.36 | % | 20.2 | % | 5 | |||||||||||
July 21, 2008
|
$ | 27.35 | 0.67 | % | 3.41 | % | 20.2 | % | 5 | |||||||||||
July 16, 2007
|
$ | 41.78 | 0.39 | % | 4.95 | % | 19.9 | % | 5 | |||||||||||
July 17, 2006
|
$ | 33.05 | 0.61 | % | 5.04 | % | 21.2 | % | 7 | |||||||||||
May 15, 2006
|
$ | 31.28 | 0.64 | % | 5.08 | % | 21.1 | % | 7 |
Number of
Shares
|
Weighted Average Exercise Price
|
|||||||
2009 Plan
|
||||||||
Balance at March 31, 2010
|
58,750 | $ | 83.23 | |||||
Granted
|
15,000 | 88.20 | ||||||
Exercised
|
– | – | ||||||
Canceled
|
– | – | ||||||
Balance at March 31, 2011
|
73,750 | $ | 84.24 | |||||
Granted
|
10,000 | 96.92 | ||||||
Exercised
|
– | – | ||||||
Canceled
|
– | – | ||||||
Balance at September 30, 2011
|
83,750 | $ | 85.75 | |||||
1999 Plan
|
||||||||
Balance at March 31, 2010
|
107,900 | $ | 114.78 | |||||
Granted
|
– | – | ||||||
Exercised
|
(11,400 | ) | 65.37 | |||||
Canceled
|
– | – | ||||||
Balance at March 31, 2011
|
96,500 | $ | 114.78 | |||||
Granted
|
– | – | ||||||
Exercised
|
(1,500 | ) | 65.70 | |||||
Canceled
|
– | – | ||||||
Balance at September 30, 2011
|
95,000 | $ | 113.63 | |||||
Combined Balance at September 30, 2011
|
178,750 | $ | 104.74 |
September 30, 2011
|
Weighted Average Aggregate Intrinsic Remaining Contractual Term
|
Value
|
|||
Outstanding
|
3.0 years
|
$ | 5,382,148 | ||
Exercisable
|
2.5 years
|
$ | 2,404,662 |
7.
|
COMMITMENTS
|
8.
|
SUMMARY OF PER SHARE INFORMATION
|
Three Months Ended
September 30,
|
Six Months Ended
September 30
|
|||||||||||||||
Per Share Data
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Investment income
|
$ | .34 | $ | .31 | $ | .65 | $ | 1.10 | ||||||||
Operating expenses
|
(.32 | ) | (.28 | ) | (.63 | ) | (.54 | ) | ||||||||
Income taxes
|
(.01 | ) | (.01 | ) | (.01 | ) | (.01 | ) | ||||||||
Net investment income
|
.01 | .02 | .01 | .55 | ||||||||||||
Distributions from undistributed net investment income
|
– | – | (.40 | ) | (.40 | ) | ||||||||||
Net realized gain net of tax
|
4.88 | .14 | 3.31 | 19.92 | ||||||||||||
Net increase (decrease) in unrealized appreciation of investments
|
(11.74 | ) | 6.24 | (12.95 | ) | (11.32 | ) | |||||||||
Exercise of employee stock options
|
(.03 | ) | (.01 | ) | (.03 | ) | (.01 | ) | ||||||||
Stock option expense
|
.07 | .07 | .13 | .11 | ||||||||||||
Increase (decrease) in net asset value
|
(6.81 | ) | 6.46 | (9.93 | ) | 8.85 | ||||||||||
Net asset value
|
||||||||||||||||
Beginning of period
|
140.56 | 132.53 | 143.68 | 130.14 | ||||||||||||
End of period
|
$ | 133.75 | $ | 138.99 | $ | 133.75 | $ | 138.99 |
Six Months Ended
September 30,
|
||||||||
2011
|
2010
|
|||||||
Alamo Group, Inc.
|
$ | 339,756 | $ | 339,636 | ||||
Balco, Inc.
|
– | 1,817,503 | ||||||
CapitalSouth Partners Fund III
|
49,189 | – | ||||||
Encore Wire Corporation
|
163,470 | 163,470 | ||||||
The RectorSeal Corporation
|
480,000 | 480,000 | ||||||
TCI Holdings, Inc.
|
40,635 | 40,635 | ||||||
The Whitmore Manufacturing Company
|
120,000 | 120,000 | ||||||
$ | 1,193,050 | $ | 2,961,244 |
Three Months Ended
September 30,
|
Six Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Alamo Group, Inc.
|
$ | (6,372,675 | ) | $ | 1,415,150 | $ | (14,825,575 | ) | $ | 4,953,025 | ||||||
Cinatra Clean Technologies, Inc.
|
(2,593,703 | ) | 104,911 | (2,593,703 | ) | 2,185,065 | ||||||||||
Encore Wire Corporation
|
(13,281,938 | ) | 6,130,125 | (6,130,125 | ) | – | ||||||||||
Heelys, Inc.
|
(1,928,683 | ) | – | (2,254,789 | ) | 279,520 | ||||||||||
KBI Biopharma, Inc.
|
– | – | (2,600,000 | ) | – | |||||||||||
Media Recovery, Inc.
|
2,500,000 | 1,500,000 | (1,700,000 | ) | 2,700,000 | |||||||||||
Palm Harbor Homes, Inc.
|
– | (6,833,953 | ) | – | (6,833,953 | ) | ||||||||||
The RectorSeal Corporation
|
(3,600,000 | ) | 8,100,000 | (3,400,000 | ) | 17,900,000 | ||||||||||
The Whitmore Manufacturing Company
|
200,000 | 1,900,000 | 4,000,000 | 1,900,000 |
Exhibit No.
|
Description
|
Certification of Chairman of the Board and President required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), filed herewith.
|
|
Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.
|
|
Certification of Chairman of the Board and President required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
|
|
Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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CAPITAL SOUTHWEST CORPORATION
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October 28, 2011
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By:
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/s/ Gary L. Martin
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Date
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Gary L. Martin
Chairman of the Board and President
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October 28, 2011
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By:
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/s/ Tracy L. Morris
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Date
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Tracy L. Morris
Chief Financial Officer
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1.
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I have reviewed this interim report on Form 10-Q of Capital Southwest Corporation (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: October 28, 2011
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By:
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/s/ Gary L. Martin
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Gary L. Martin
Chairman of the Board and President
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1.
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I have reviewed this interim report on Form 10-Q of Capital Southwest Corporation (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: October 28, 2011
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By:
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/s/ Tracy L. Morris
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Tracy L. Morris
Chief Financial Officer
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1.
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The Form 10-Q, filed with the Securities and Exchange Commission on October 28, 2011 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the accompanied report fairly presents, in all material respects, the consolidated financial condition and results of operations of Capital Southwest Corporation.
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Date: October 28, 2011
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By:
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/s/ Gary L. Martin
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Gary L. Martin
Chairman of the Board and President
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1.
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The Form 10-Q, filed with the Securities and Exchange Commission on October 28, 2011 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the accompanied report fairly presents, in all material respects, the consolidated financial condition and results of operations of Capital Southwest Corporation.
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Date: October 28, 2011
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By:
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/s/ Tracy L. Morris
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Tracy L. Morris
Chief Financial Officer
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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data | Sep. 30, 2011 | Mar. 31, 2011 |
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Investments at market or fair value | ||
Companies more than 25% owned, Cost | $ 25,701 | $ 25,521 |
Companies 5% to 25% owned, Cost | 14,049 | 14,049 |
Companies less than 5% owned, Cost | 61,893 | 58,784 |
Total investments, Cost | $ 101,643 | $ 98,354 |
Net Assets | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, issued (in shares) | 4,339,416 | 4,337,916 |
Treasury stock (in shares) | 584,878 | 584,878 |
Net asset value per share (in shares) | 3,754,538 | 3,753,038 |
Document And Entity Information (USD $) | 6 Months Ended | |
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Sep. 30, 2010 | Oct. 28, 2011 | |
Entity Registrant Name | CAPITAL SOUTHWEST CORP | |
Entity Central Index Key | 0000017313 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Public Float | $ 250,728,582 | |
Entity Common Stock, Shares Outstanding | 3,754,538 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2011 |
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ACCUMULATED NET REALIZED GAIN (LOSS) | 6 Months Ended | ||
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Sep. 30, 2011 | |||
ACCUMULATED NET REALIZED GAIN (LOSS) [Abstract] | |||
ACCUMULATED NET REALIZED GAIN (LOSS) |
Distributions made by RICs often differ from aggregate GAAP-basis undistributed net investment income and accumulated net realized gains (total GAAP-basis net realized gains). The principal cause is that required minimum fund distributions are based on income and gain amounts determined in accordance with federal income tax regulations, rather than GAAP. The differences created can be temporary, meaning that they will reverse in the future, or they can be permanent. In subsequent periods, when all or a portion of a temporary difference becomes a permanent difference, the amount of the permanent difference will be reclassified to “additional capital.” We incur federal taxes on behalf of our shareholders as a result of our election to retain long-term capital gains. As of September 30, 2011 we had accumulated long-term capital gains of $5,575,998; however, as of March 31, 2011 we had accumulated long-term capital losses of $6,863,347. |
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended | ||
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Sep. 30, 2011 | |||
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | |||
ORGANIZATION AND BASIS OF PRESENTATION |
Organization Capital Southwest Corporation (“CSC” or the “Company”) was organized as a Texas corporation on April 19, 1961. Until September 1969, we operated as a licensee under the Small Business Investment Act of 1958. At that time, we transferred to our wholly-owned subsidiary, Capital Southwest Venture Corporation ("CSVC") certain assets and our license as a small business investment company ("SBIC"). CSVC is a closed-end, non-diversified investment company of the management type registered under the Investment Company Act of 1940 (the “1940 Act”). Prior to March 30, 1988, we were registered as a closed-end, non-diversified investment company under the 1940 Act. On that date, we elected to become a Business Development Company (“BDC”) subject to the provisions of the 1940 Act, as amended by the Small Business Incentive Act of 1980. Because we wholly own CSVC, the portfolios of both entities are referred to collectively as “our,” “we” and “us.” Capital Southwest Management Company (“CSMC”), a wholly-owned subsidiary of CSC, is the management company for CSC and CSVC. CSMC generally incurs all normal operating and administrative expenses, including but not limited to, salaries and related benefits, rent, equipment and other administrative costs required for its day-to-day operations. Our portfolio is a composite of companies, consisting of companies in which we have controlling interests, developing companies and marketable securities of established publicly traded companies. We make available significant managerial assistance to the companies in which we invest and believe that providing managerial assistance to such investee companies is critical to their business development activities. CSMC receives a monthly fixed fee for management services provided to certain of its control portfolio companies. Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Under rules and regulations applicable to investment companies, we are precluded from consolidating any entity other than another investment company. An exception to this general principle occurs if the investment company has an investment in an operating company that provides services to the investment company. Accordingly, consolidated financial statements include our management company. The financial statements included herein have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 6 of Regulations S-X. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended March 31, 2011, as filed with the Securities and Exchange Commission (SEC). Certain information and footnotes normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, although we believe that the disclosures are adequate for a fair presentation. The information reflects all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim period. Portfolio Investment Classification We classify our investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in which we own more than 25% of the voting securities or have rights to maintain greater than 50% of the board representation; “Affiliated Investments” are defined as investments in which we own between 5% and 25% of the voting securities; and “Non-Control/Non-Affiliated Investments” are defined as investments that are neither “Control Investments” nor “Affiliated Investments.” |
COMMITMENTS | 6 Months Ended | ||
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Sep. 30, 2011 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
COMMITMENTS |
From time to time the Company may be liable for claims against its portfolio companies. We do not believe the effects of such claims would have a material impact on our results of operations and financial condition. CSC has agreed, subject to certain conditions, to invest up to $9,885,365 in nine portfolio companies. |
SUMMARY OF PER SHARE INFORMATION | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF PER SHARE INFORMATION |
The following presents a summary of per share data for the six and three months ended September 30, 2011 and 2010.
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EMPLOYEE STOCK OPTION PLANS | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE STOCK OPTION PLANS |
On July 20, 2009, shareholders approved the Company's 2009 Stock Incentive Plan (the “2009 Plan”), which provides for the granting of stock options to employees and officers of the Company and authorizes the issuance of common stock upon exercise of such options for up to 140,000 shares. All options are granted at or above market price, generally expire up to ten years from the date of grant and are generally exercisable on or after the first anniversary of the date of grant in five annual installments. The following table illustrates the number of options granted since the 2009 Plan was approved:
All 83,750 options remain outstanding, thus leaving 56,250 options available for grant under the plan as of September 30, 2011. The Company previously granted stock options under its 1999 Stock Option Plan (the “1999 Plan”), as approved by shareholders on July 19, 1999. The 1999 Plan expired on April 19, 2009. Options previously made under the Company's 1999 Stock Option Plan and outstanding on July 20, 2009 continue in effect governed by provisions of the 1999 plan. All options granted under the 1999 Plan were granted at or above market price, generally expire up to ten years from the date of grant and are generally exercisable on or after the first anniversary of the date of grant in five to ten annual installments. We recognize compensation cost over the straight-line method for all share-based payments granted on or after that date and for all awards granted to employees prior to April 1, 2006 that remain unvested on that date. The fair value of stock options are determined on the date of grant using the Black-Scholes pricing model and are expensed over the vesting period of the related stock options. Accordingly, for the quarters ended September 30, 2011 and 2010, we recognized compensation expense of $258,573 and $223,217 respectively. As of September 30, 2011, the total remaining unrecognized compensation cost related to non-vested stock options was $2,620,506, which will be amortized over the remaining weighted average service period of approximately 3.0 years. The following table summarizes the 2009 Plan and the 1999 Plan price per option at grant date using the Black-Scholes pricing model:
The following table summarizes activity in the 2009 Plan and the 1999 Plan as of June 30, 2011:
At September 30, 2011, the range of exercise prices and weighted-average remaining contractual life of outstanding options was $76.74 to $152.98 and 3.1 years, respectively. The number of options exercisable under the 2009 Plan and the 1999 Plan, at September 30, 2011, was 75,840 with a weighted-average exercise price of $116.75. There were 1,500 options exercised and new share issued for $98,550 in cash during the quarter ended September 30, 2011 and 782 options exercised and new shares issued for $51,377 in cash during the quarter ended September 30, 2010. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||
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Sep. 30, 2011 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements of CSC, CSVC and CSMC. Fair Value Measurements The Company adopted FASB ASC Topic 820 on April 1, 2008. ASC Topic 820 (1) creates a single definition of fair value, (2) establishes a framework for measuring fair value, and (3) expands disclosure requirements about items measured at fair value. The Statement applies to both items recognized and reported at fair value in the financial statements and items disclosed at fair value in the notes to the financial statements. The Statement does not change existing accounting rules governing what can or what must be recognized and reported at fair value in the Company's financial statements, or disclosed at fair value in the Company's notes to the financial statements. Additionally, ASC Topic 820 does not eliminate practicability exceptions that exist in accounting pronouncements amended by this Statement when measuring fair value. Fair value is generally determined based on quoted market prices in the active markets for identical assets or liabilities. If quoted market prices are not available, we use valuation techniques that place greater reliance on observable inputs and less reliance on unobservable inputs. Due to the inherent uncertainty in the valuation process, our estimate of fair value may differ materially from the values that would have been used had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events may occur over the lives of the investments that may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and recorded changes in fair value as unrealized appreciation or depreciation. Pursuant to our internal valuation process, each portfolio company is valued once a quarter. In addition to our internal valuation process, our Board of Directors retains a nationally recognized firm to provide limited scope third party valuation services on certain portfolio investments. Our Board of Directors retained Duff & Phelps to provide limited scope third party valuation services on six investments comprising 78% of our net asset value at March 31, 2011. For full disclosure of Duff & Phelps' services, see page 5 of our Annual Report on Form 10-K under the heading “Determination of Net Asset Value and Portfolio Valuation Process.” We believe our investments at September 30, 2011 and March 31, 2011 approximate fair value as of those dates based on the market in which we operate and other conditions in existence at those reporting periods. Investments Investments are stated at fair value determined by our Board of Directors as described in Notes to the Consolidated Schedule of Investments and Note 3 below. The average cost method is used in determining cost of investments sold. Investments are recorded on a trade date basis. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value. Segment Information The Company operates and manages its business in a singular segment. As an investment company, the Company invests in portfolio companies in various industries and geographic areas as presented in the Consolidated Schedule of Investments. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Interest and Dividend Income Interest and dividend income is recorded on an accrual basis to the extent amounts are expected to be collected. Dividend income is recorded at the ex-dividend date for marketable securities and restricted securities. In accordance with our valuation policy, accrued interest and dividend income is evaluated periodically for collectability. When a debt or loan becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally establish a reserve against the interest income, thereby placing the loan or debt security's status on non-accrual basis, and cease to recognize interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding ability to service debt or other obligations, it will be restored to accrual basis. Federal Income Taxes CSC and CSVC have elected and intend to comply with the requirements of the Internal Revenue Code (IRC) necessary to qualify as regulated investment companies (RICs). By meeting these requirements, they will not be subject to corporate federal income taxes on ordinary income distributed to shareholders. In order to comply as a RIC, each company is required to timely distribute to its shareholders at least 90% of investment taxable income, as defined by the IRC, each year. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains and losses are not included in taxable income until they are realized. The Company's policy is to retain and pay the 35% corporate tax on realized long-term capital gains. For investment companies that qualify as RICs under the IRC, federal income taxes payable on security gains that the Company elects to retain are accrued only on the last day of our tax year, December 31. See Note 4 for further discussion. CSMC, a wholly owned subsidiary of CSC, is not a RIC and is required to pay taxes at the current corporate rate. We account for interest and penalties as part of operating expenses. There were no interest or penalties incurred during the six months ended September 30, 2011 and 2010. Deferred Taxes CSMC sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its controlled affiliates. Deferred taxes related to the qualified defined benefit pension plan are recorded as incurred. Stock-Based Compensation We account for our stock-based compensation using the fair value method, as prescribed by ASC 718, Compensation – Stock Compensation. Accordingly, we recognize stock-based compensation cost over the straight-line method for all share-based payments granted on or after that date and for all awards granted to employees prior to April 1, 2006 that remain unvested on that date. The fair value of stock options is determined on the date of grant using the Black-Scholes pricing model and is expensed over the vesting period of the related stock options. See Note 6 for further discussion. Defined Pension Benefits and Other Postretirement Plans We record annual amounts relating to the defined benefit pension plan based on calculations, which include various actuarial assumptions such as discount rates and assumed rates of return depending on the pension plan. Material changes in pension costs may occur in the future due to changes in the discount rate, changes in the expected long-term rate of return, changes in level of contributions to the plans and other factors. The funded status is the difference between the fair value of plan assets and the benefit obligation. We recognize changes in the funded status of defined benefit plan in the Statement of Assets and Liabilities in the year in which the changes occur and measure defined benefit plan assets and obligations as of the date of the employer's fiscal year-end. We presently use March 31 as the measurement date for our defined benefit plan. Concentration of Risk We place our idle cash in financial institutions, and at times, such balances may be in excess of the federally insured limits. On 11/19/2010, the FDIC issued a Final Rule implementing section 434 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest bearing transaction accounts beginning December 31, 2010 and continuing through December 31, 2012. Recent Accounting Pronouncements ASU No. 2011-04, Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. In May 2011, the FASB issued ASU 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” which results in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. ASU 2011-04 is effective for interim and annual reporting periods beginning after December 15, 2011. Adoption of ASU 2011-04 is not expected to have a significant impact on the Company's financial statement disclosures. |
INVESTMENTS | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS |
We record our investments at fair value as determined in good faith by our Board of Directors in accordance with GAAP. When available, we base the fair value of our investments on directly observable market prices or on market data derived for comparable assets. For all other investments, inputs used to measure fair value reflect management's best estimate of assumptions that would be used by market participants in pricing the investments in a hypothetical transaction. The levels of fair value inputs used to measure our investments are characterized in accordance with the fair value hierarchy established by ASC. We use judgment and consider factors specific to the investment in determining the significance of an input to a fair value measurement. While management believes our valuation methodologies are appropriate and consistent with market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The three levels of the fair value hierarchy and investments that fall into each of the levels are described below:
As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within the fair value measurement is categorized based on the lowest level input that is significant to the fair value measurement which may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such investments categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable (Level 3). We conduct reviews of fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of certain investments. As of September 30, 2011 and March 31, 2011, 95.3% and 94.5%, respectively, of our portfolio investments were categorized as Level 3. The following fair value hierarchy tables set forth our investment portfolio by level as of September 30, 2011 and March 31, 2011 (in millions):
The following table provides a summary of changes in the fair value of investments measured using Level 3 inputs during the six months ended September 30, 2011 (in millions):
The following table provides a summary of changes in the fair value of investments measured using Level 3 inputs during the quarter ended September 30, 2011 (in millions):
The total unrealized gains (losses) included in earnings that related to assets still held at report date for the six months ended September 30, 2011 and 2010 were ($36,784,513) and $24,106,929, respectively. |
INCOME TAXES | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||
Income Taxes [Abstract] | |||||||||
INCOME TAXES |
We operate to qualify as a RIC under Subchapter M of the IRC. In order to qualify as a RIC, we must annually distribute at least 90% of our taxable ordinary income, based on our tax year, to our shareholders in a timely manner. Ordinary income includes net short-term capital gains but excludes net long-term capital gains. A RIC is not subject to federal income tax on the portion of its ordinary income and long-term capital gains that are distributed to its shareholders, including “deemed distributions” discussed below. As permitted by the Code, a RIC can designate dividends paid in the subsequent tax year as dividends of current year ordinary income and net long-term gains if those dividends are both declared by the extended due date of the RIC's federal income tax return and paid to shareholders by the last day of the subsequent tax year. We have a calendar tax year end of December 31. We have distributed or intend to distribute sufficient dividends to eliminate taxable income for our completed tax years. If we fail to satisfy the 90% distribution requirement or otherwise fail to qualify as a RIC in any tax year, we would be subject to tax in such year on all of our taxable income, regardless of whether we made any distributions to our shareholders. For the tax year ended December 31, 2010 and 2009, we declared and paid ordinary dividends in the amount of $2,993,623 and $2,993,310, respectively. Additionally, we are subject to a nondeductible federal excise tax of 4% if we do not distribute at least 98% of our investment company ordinary taxable income before the end of our tax year. For the tax years ended December 31, 2010 and 2009, we distributed 100% of our investment company ordinary taxable income. As a result, we have made no tax provisions for income taxes on ordinary taxable income for the tax years ended December 31, 2010 and 2009. A RIC may elect to retain its long-term capital gains by designating them as “deemed distribution” to its shareholders and paying a federal tax rate of 35% on the long-term capital gains for the benefit of its shareholders. Shareholders then report their share of the retained capital gains on their income tax returns as if it had been received and report a tax credit for tax paid on their behalf by the RIC. Shareholders then add the amount of the “deemed distribution” net of such tax, to the basis of their shares.
For the quarters ended September 30, 2011 and 2010, CSC and CSVC qualified to be taxed as RICs. We intend to meet the applicable qualifications to be taxed as a RIC in future years. Management feels it is probable that we will maintain our RIC status for a period longer than one year. However, either Company's ability to meet certain portfolio diversification requirements of RICs in future years may not be controllable by such company. CSMC, a wholly owned subsidiary of CSC, is not a RIC and is required to pay taxes at the current corporate rate. The Company sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its wholly owned portfolio companies. Deferred taxes related to the qualified defined pension plan are recorded as incurred. |
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (USD $) In Thousands | 6 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Operations: | ||
Net investment income | $ 37 | $ 2,044 |
Net realized gain on investments | 12,439 | 74,545 |
Net decrease in unrealized appreciation of investments | (48,634) | (42,383) |
Increase (decrease) in net assets from operations | (36,158) | 34,206 |
Distributions from: | ||
Undistributed net investment income | (1,501) | (1,497) |
Capital share transactions: | ||
Exercise of employee stock options | 98 | 51 |
Stock option expense | 503 | 468 |
Increase (decrease) in net assets | (37,058) | 33,228 |
Net assets, beginning of period | 539,233 | 486,926 |
Net assets, end of period | $ 502,175 | $ 520,154 |
CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (USD $) | 6 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Mar. 31, 2011 | |||||||||||||||||
Cost | $ 101,643,000 | $ 98,354,000 | ||||||||||||||||
Value | 443,928,000 | 489,272,000 | ||||||||||||||||
ALAMO GROUP INC. [Member] | ||||||||||||||||||
Location | Seguin, Texas | [1],[2] | Seguin, Texas | [1],[2] | ||||||||||||||
Description of Company | Tractor-mounted mowing and mobile excavation equipment for governmental, industrial and agricultural markets; street-sweeping equipment for municipalities. | [1],[2] | Tractor-mounted mowing and mobile excavation equipment for governmental, industrial and agricultural markets; street-sweeping equipment for municipalities. | [1],[2] | ||||||||||||||
Equity (in hundredths) | 22.00% | [1],[2],[3] | 22.00% | [1],[2],[3] | ||||||||||||||
Equity (in hundredths) | 22.00% | [1],[2],[3] | 22.00% | [1],[2],[3] | ||||||||||||||
Investment | 2,832,300 shares common stock (acquired 4-1-73 thru 5-09-11) | [1],[2],[4] | 2,832,300 shares common stock (acquired 4-1-73 thru 5-09-11) | [1],[2],[4] | ||||||||||||||
Cost | 2,190,937 | [1],[2] | 2,190,937 | [1],[2] | ||||||||||||||
Value | 47,441,025 | [1],[2],[5] | 62,266,600 | [1],[2],[5] | ||||||||||||||
ALL COMPONENTS, INC. [Member] | ||||||||||||||||||
Location | Pflugerville, Texas | |||||||||||||||||
Description of Company | Electronics contract manufacturing; distribution and production of memory and other components for computer manufacturers, retailers and value-added resellers. | |||||||||||||||||
Equity (in hundredths) | 80.40% | [3] | ||||||||||||||||
Equity (in hundredths) | 80.40% | [3] | ||||||||||||||||
Investment | Warrant to purchase 350,000 shares of common stock at $11.00 per share, expiring 2017 (acquired 6-27-07) | [4] | ||||||||||||||||
Cost | 2,150,000 | |||||||||||||||||
Value | 13,499,940 | [5] | ||||||||||||||||
ALL COMPONENTS, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 8.25% subordinate note, $2,000,000 principal due 2012 (acquired 6-27-07) | [4] | ||||||||||||||||
Cost | 2,000,000 | |||||||||||||||||
Value | 2,000,000 | [5] | ||||||||||||||||
ALL COMPONENTS, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 150,000 shares Series A Convertible Preferred Stock; convertible into 600,000 shares of common stock at $0.25 per share (acquired 9-16-94) | [4] | ||||||||||||||||
Cost | 150,000 | |||||||||||||||||
Value | 8,431,388 | [5] | ||||||||||||||||
ALL COMPONENTS, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | 150,000 shares Series A Convertible Preferred Stock; convertible into 600,000 shares of common stock at $0.25 per share (acquired 9-16-94) | [4] | ||||||||||||||||
Cost | 150,000 | |||||||||||||||||
Value | 8,431,388 | [5] | ||||||||||||||||
ALL COMPONENTS, INC. [Member] | Investment Type 4 [Member] | ||||||||||||||||||
Investment | Warrant to purchase 350,000 shares of common stock at $11.00 per share, expiring 2017 (acquired 6-27-07) | [4] | ||||||||||||||||
Cost | 0 | |||||||||||||||||
Value | 3,068,552 | [5] | ||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. [Member] | ||||||||||||||||||
Location | Atlanta, Georgia | Atlanta, Georgia | ||||||||||||||||
Description of Company | Holding company of Atlantic Capital Bank, a full service commercial bank. | Holding company of Atlantic Capital Bank, a full service commercial bank. | ||||||||||||||||
Equity (in hundredths) | 1.90% | [3] | 1.90% | [3] | ||||||||||||||
Equity (in hundredths) | 1.90% | [3] | 1.90% | [3] | ||||||||||||||
Investment | 300,000 shares common stock (acquired 4-10-07) | [4] | 300,000 shares common stock (acquired 4-10-07) | [4] | ||||||||||||||
Cost | 3,000,000 | 3,000,000 | ||||||||||||||||
Value | 1,835,000 | [5] | 2,257,000 | [5] | ||||||||||||||
BALCO, INC. [Member] | ||||||||||||||||||
Location | Wichita, Kansas | [1] | Wichita, Kansas | [1] | ||||||||||||||
Description of Company | Specialty architectural products used in the construction and remodeling of commercial and institutional buildings. | [1] | Specialty architectural products used in the construction and remodeling of commercial and institutional buildings. | [1] | ||||||||||||||
Equity (in hundredths) | 90.90% | [1],[3] | 90.90% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 90.90% | [1],[3] | 90.90% | [1],[3] | ||||||||||||||
Investment | 445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02) | [1],[4] | 445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02) | [1],[4] | ||||||||||||||
Cost | 624,920 | [1] | 624,920 | [1] | ||||||||||||||
Value | 4,400,000 | [1],[5] | 5,200,000 | [1],[5] | ||||||||||||||
BALCO, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02) | [1],[4] | 445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02) | [1],[4] | ||||||||||||||
Cost | 624,920 | [1] | ||||||||||||||||
Value | 5,200,000 | [1],[5] | ||||||||||||||||
BOXX TECHNOLOGIES, INC. [Member] | ||||||||||||||||||
Location | Austin, Texas | [6] | Austin, Texas | [6] | ||||||||||||||
Description of Company | Workstations for computer graphic imaging and design. | [6] | Workstations for computer graphic imaging and design. | [6] | ||||||||||||||
Equity (in hundredths) | 14.90% | [3],[6] | 14.90% | [3],[6] | ||||||||||||||
Equity (in hundredths) | 14.90% | [3],[6] | 14.90% | [3],[6] | ||||||||||||||
Investment | 3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share (acquired 8-20-99 thru 8-8-01) | [4],[6] | 3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share (acquired 8-20-99 thru 8-8-01) | [4],[6] | ||||||||||||||
Cost | 1,500,000 | [6] | 1,500,000 | [6] | ||||||||||||||
Value | 363,328 | [5],[6] | 2 | [5],[6] | ||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | ||||||||||||||||||
Location | Houston, Texas | Houston, Texas | ||||||||||||||||
Description of Company | Cleans above ground oil storage tanks with a patented, automated system. | Cleans above ground oil storage tanks with a patented, automated system. | ||||||||||||||||
Equity (in hundredths) | 73.40% | [3] | 68.80% | [3] | ||||||||||||||
Equity (in hundredths) | 73.40% | [3] | 68.80% | [3] | ||||||||||||||
Investment | Warrants to purchase 1,269,833 shares of common stock at $1.00 per share, expiring 2021 (acquired 5-9-11 thru 8-31-11) | [4] | 3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10) | [4] | ||||||||||||||
Cost | 13,182,892 | 10,124,714 | ||||||||||||||||
Value | 10,589,189 | [5] | 10,124,714 | [5] | ||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 12% subordinated secured promissory note, due 2012 (acquired 5-19-10 thru 10-20-10) | [4] | ||||||||||||||||
Cost | 890,604 | |||||||||||||||||
Value | 890,604 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 10% subordinated secured promissory note, due 2013 (acquired 7-14-08 thru 4-28-10) | [4] | ||||||||||||||||
Cost | 6,200,700 | |||||||||||||||||
Value | 6,200,700 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | 3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10) | [4] | ||||||||||||||||
Cost | 3,033,410 | |||||||||||||||||
Value | 3,033,410 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 4 [Member] | ||||||||||||||||||
Investment | 12% subordinated secured promissory note, due 2015 (acquired 5-19-10 thru 10-20-10) | [4] | ||||||||||||||||
Cost | 779,278 | |||||||||||||||||
Value | 779,278 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 5 [Member] | ||||||||||||||||||
Investment | 12% subordinated secured promissory note, due 2016 (acquired 5-9-11 thru 8-31-11) | [4] | ||||||||||||||||
Cost | 1,950,464 | |||||||||||||||||
Value | 1,950,464 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 6 [Member] | ||||||||||||||||||
Investment | 12% subordinated secured promissory note, due 2016 (acquired 9-9-11) | [4] | ||||||||||||||||
Cost | 1,219,040 | |||||||||||||||||
Value | 1,219,040 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 7 [Member] | ||||||||||||||||||
Investment | 10% subordinated secured promissory note, due 2016 (acquired 7-14-08 thru 4-28-10) | [4] | ||||||||||||||||
Cost | 6,200,700 | |||||||||||||||||
Value | 6,200,700 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 8 [Member] | ||||||||||||||||||
Investment | 3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10) | [4] | ||||||||||||||||
Cost | 3,033,410 | |||||||||||||||||
Value | 439,707 | [5] | ||||||||||||||||
CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 9 [Member] | ||||||||||||||||||
Investment | Warrants to purchase 1,269,833 shares of common stock at $1.00 per share, expiring 2021 (acquired 5-9-11 thru 8-31-11) | [4] | ||||||||||||||||
Cost | 0 | |||||||||||||||||
Value | 0 | [5] | ||||||||||||||||
ENCORE WIRE CORPORATION [Member] | ||||||||||||||||||
Location | McKinney, Texas | [2],[6] | McKinney, Texas | [2],[6] | ||||||||||||||
Description of Company | Electric wire and cable for residential, commercial and industrial construction use. | [2],[6] | Electric wire and cable for residential, commercial and industrial construction use. | [2],[6] | ||||||||||||||
Equity (in hundredths) | 16.90% | [2],[3],[6] | 16.90% | [2],[3],[6] | ||||||||||||||
Equity (in hundredths) | 16.90% | [2],[3],[6] | 16.90% | [2],[3],[6] | ||||||||||||||
Investment | 4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98) | [2],[4],[6] | 4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98) | [2],[4],[6] | ||||||||||||||
Cost | 5,800,000 | [2],[6] | 5,800,000 | [2],[6] | ||||||||||||||
Value | 75,604,875 | [2],[5],[6] | 81,735,000 | [2],[5],[6] | ||||||||||||||
EXTREME INTERNATIONAL, INC. [Member] | ||||||||||||||||||
Location | Sugar Land, Texas | Sugar Land, Texas | ||||||||||||||||
Description of Company | Owns Bill Young Productions, Texas Video and Post, and Extreme and television commercials and corporate communications videos. | Owns Bill Young Productions, Texas Video and Post, and Extreme and television commercials and corporate communications videos. | ||||||||||||||||
Equity (in hundredths) | 53.60% | [3] | 53.60% | [3] | ||||||||||||||
Equity (in hundredths) | 53.60% | [3] | 53.60% | [3] | ||||||||||||||
Cost | 3,325,875 | 3,325,875 | ||||||||||||||||
Value | 10,748,000 | [5] | 11,603,000 | [5] | ||||||||||||||
EXTREME INTERNATIONAL, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 13,035 shares Series A Common Stock (acquired 9-26-08 and 12-18-08) | [4] | 13,035 shares Series A Common Stock (acquired 9-26-08 and 12-18-08) | [4] | ||||||||||||||
Cost | 325,875 | 325,875 | ||||||||||||||||
Value | 755,000 | [5] | 815,000 | [5] | ||||||||||||||
EXTREME INTERNATIONAL, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 39,359.18 shares Series C Convertible Preferred Stock, convertible into 157,437.72 shares of common stock at $25.00 per share (acquired 9-30-03) | [4] | 39,359.18 shares Series C Convertible Preferred Stock, convertible into 157,437.72 shares of common stock at $25.00 per share (acquired 9-30-03) | [4] | ||||||||||||||
Cost | 2,625,000 | 2,625,000 | ||||||||||||||||
Value | 9,124,000 | [5] | 9,850,000 | [5] | ||||||||||||||
EXTREME INTERNATIONAL, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | 3,750 shares 8 Series A Convertible Preferred Stock, convertible into 15,000 shares of common stock at $25.00 per share (acquired 9-30-03) | [4] | 3,750 shares 8 Series A Convertible Preferred Stock, convertible into 15,000 shares of common stock at $25.00 per share (acquired 9-30-03) | [4] | ||||||||||||||
Cost | 375,000 | 375,000 | ||||||||||||||||
Value | 869,000 | [5] | 938,000 | [5] | ||||||||||||||
HEELYS, INC. [Member] | ||||||||||||||||||
Location | Carrollton, Texas | [1],[2] | Carrollton, Texas | [1],[2] | ||||||||||||||
Description of Company | Heelys stealth skate shoes, equipment and apparel sold through sporting goods chains, department stores and footwear retailers. | [1],[2] | Heelys stealth skate shoes, equipment and apparel sold through sporting goods chains, department stores and footwear retailers. | [1],[2] | ||||||||||||||
Equity (in hundredths) | 31.10% | [1],[2],[3] | 31.60% | [1],[2],[3] | ||||||||||||||
Equity (in hundredths) | 31.10% | [1],[2],[3] | 31.60% | [1],[2],[3] | ||||||||||||||
Investment | 9,317,310 shares common stock (acquired 5-26-00) | [1],[2],[4] | 9,317,310 shares common stock (acquired 5-26-00) | [1],[2],[4] | ||||||||||||||
Cost | 102,490 | [1],[2] | 102,490 | [1],[2] | ||||||||||||||
Value | 16,938,870 | [1],[2],[5] | 19,193,659 | [1],[2],[5] | ||||||||||||||
HOLOGIC, INC. [Member] | ||||||||||||||||||
Location | Bedford, Massachusetts | [2] | Bedford, Massachusetts | [2] | ||||||||||||||
Description of Company | Medical instruments including bone densitometers, mammography devices and digital radiography systems. | [2] | Medical instruments including bone densitometers, mammography devices and digital radiography systems. | [2] | ||||||||||||||
Equity (in hundredths) | < 1% | [2],[3] | < 1% | [2],[3] | ||||||||||||||
Investment | 632,820 shares common stock (acquired 8-27-99) | [2],[4] | 632,820 shares common stock (acquired 8-27-99) | [2],[4],[7] | ||||||||||||||
Cost | 220,000 | [2] | 220,000 | [2] | ||||||||||||||
Value | 9,625,192 | [2],[5] | 14,042,276 | [2],[5] | ||||||||||||||
iMEMORIES, INC. [Member] | ||||||||||||||||||
Location | Scottsdale, Arizona | Scottsdale, Arizona | ||||||||||||||||
Description of Company | Enables online video and photo sharing and DVD creation for home movies recorded in analog and new digital format. | Enables online video and photo sharing and DVD creation for home movies recorded in analog and new digital format. | ||||||||||||||||
Equity (in hundredths) | 29.70% | [3] | 27.20% | [3] | ||||||||||||||
Equity (in hundredths) | 29.70% | [3] | 27.20% | [3] | ||||||||||||||
Cost | 5,078,479 | 5,000,000 | ||||||||||||||||
Value | 5,078,479 | [5] | 5,000,000 | [5] | ||||||||||||||
iMEMORIES, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 17,391,304 shares Series B Convertible Preferred Stock, convertible into 17,391,304 shares of common stock at $0.23 per share (acquired 7-10-09) | [4] | 17,391,304 shares Series B Convertible Preferred Stock, convertible into 17,391,304 shares of common stock at $0.23 per share (acquired 7-10-09) | [4] | ||||||||||||||
Cost | 4,000,000 | 4,000,000 | ||||||||||||||||
Value | 4,000,000 | [5] | 4,000,000 | [5] | ||||||||||||||
iMEMORIES, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 4,684,967 shares Series C Convertible Preferred Stock, convertible into 4,684,967 shares of common stock at $0.23 per share (acquired 7-20-11) | [4] | ||||||||||||||||
Cost | 1,078,479 | |||||||||||||||||
Value | 1,078,479 | [5] | ||||||||||||||||
iMEMORIES, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | Warrants to purchase 2,500,000 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10 thru 1-21-11) | [4] | ||||||||||||||||
Cost | 0 | |||||||||||||||||
Value | 0 | [5] | ||||||||||||||||
iMEMORIES, INC. [Member] | Investment Type 4 [Member] | ||||||||||||||||||
Investment | 10% convertible promissory note, due 2012 (acquired 9-13-10) | [4] | ||||||||||||||||
Cost | 1,000,000 | |||||||||||||||||
Value | 1,000,000 | [5] | ||||||||||||||||
iMEMORIES, INC. [Member] | Investment Type 5 [Member] | ||||||||||||||||||
Investment | Warrant to purchase 968,750 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10) | [4] | ||||||||||||||||
Cost | 0 | |||||||||||||||||
Value | 0 | [5] | ||||||||||||||||
INSTAWARES HOLDING COMPANY, LLC [Member] | ||||||||||||||||||
Location | Atlanta, Georgia | |||||||||||||||||
Description of Company | Provides services to the restaurant industry via its five subsidiary companies. | |||||||||||||||||
Equity (in hundredths) | 4.40% | [3] | ||||||||||||||||
Equity (in hundredths) | 4.40% | [3] | ||||||||||||||||
Investment | 3,846,154 Class D shares (acquired 5-20-11) | [4] | ||||||||||||||||
Cost | 5,000,000 | |||||||||||||||||
Value | 5,000,000 | [5] | ||||||||||||||||
KBI BIOPHARMA, INC. [Member] | ||||||||||||||||||
Location | Durham, North Carolina | Durham, North Carolina | ||||||||||||||||
Description of Company | Provides fully-integrated, outsourced drug development and bio-manufacturing services. | Provides fully-integrated, outsourced drug development and bio-manufacturing services. | ||||||||||||||||
Equity (in hundredths) | 17.10% | [3] | 17.10% | [3] | ||||||||||||||
Equity (in hundredths) | 17.10% | [3] | 17.10% | [3] | ||||||||||||||
Investment | 7,142,857 shares Series B-2 Convertible Preferred Stock, convertible into 10,204,082 shares of common stock at $0.49 per share (acquired 9-08-09) | [4] | 7,142,857 shares Series B-2 Convertible Preferred Stock, convertible into 10,204,082 shares of common stock at $0.49 per share (acquired 9-08-09) | [4] | ||||||||||||||
Cost | 5,000,000 | 5,000,000 | ||||||||||||||||
Value | 1,600,000 | [5] | 4,200,000 | [5] | ||||||||||||||
MEDIA RECOVERY, INC. [Member] | ||||||||||||||||||
Location | Dallas, Texas | [1] | Dallas, Texas | [1] | ||||||||||||||
Description of Company | Computer datacenter and office automation supplies and accessories; impact, tilt monitoring and temperature sensing devices to detect mishandling shipments; dunnage for protecting shipments. | [1] | Computer datacenter and office automation supplies and accessories; impact, tilt monitoring and temperature sensing devices to detect mishandling shipments; dunnage for protecting shipments. | [1] | ||||||||||||||
Equity (in hundredths) | 97.90% | [1],[3] | 97.50% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 97.90% | [1],[3] | 97.50% | [1],[3] | ||||||||||||||
Cost | 5,415,000 | [1] | 5,415,000 | [1] | ||||||||||||||
Value | 16,400,000 | [1],[5] | 18,100,000 | [1],[5] | ||||||||||||||
MEDIA RECOVERY, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00 per share (acquired 11-4-97) | [1],[4] | 800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00 per share (acquired 11-4-97) | [1],[4] | ||||||||||||||
Cost | 800,000 | [1] | 800,000 | [1] | ||||||||||||||
Value | 2,700,000 | [1],[5] | 3,000,000 | [1],[5] | ||||||||||||||
MEDIA RECOVERY, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 4,000,002 shares common stock (acquired 11-4-97) | [1],[4] | 4,000,002 shares common stock (acquired 11-4-97) | [1],[4] | ||||||||||||||
Cost | 4,615,000 | [1] | 4,615,000 | [1] | ||||||||||||||
Value | 13,700,000 | [1],[5] | 15,100,000 | [1],[5] | ||||||||||||||
PALLETONE, INC. [Member] | ||||||||||||||||||
Location | Bartow, Florida | [6] | Bartow, Florida | [6] | ||||||||||||||
Description of Company | Manufacturer of wooden pallets and pressure-treated lumber. | [6] | Manufacturer of wooden pallets and pressure-treated lumber. | [6] | ||||||||||||||
Equity (in hundredths) | 8.40% | [3],[6] | 8.40% | [3],[6] | ||||||||||||||
Equity (in hundredths) | 8.40% | [3],[6] | 8.40% | [3],[6] | ||||||||||||||
Cost | 1,748,896 | [6] | 1,748,896 | [6] | ||||||||||||||
Value | 2,000,002 | [5],[6] | 1,600,002 | [5],[6] | ||||||||||||||
PALLETONE, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 12.3% senior subordinated notes, $2,000,000 principal due 2015 (acquired 9-25-06) | [4],[6] | 12.3% senior subordinated notes, $2,000,000 principal due 2015 (acquired 9-25-06) | [4],[6] | ||||||||||||||
Cost | 1,553,150 | [6] | 1,553,150 | [6] | ||||||||||||||
Value | 2,000,000 | [5],[6] | 1,600,000 | [5],[6] | ||||||||||||||
PALLETONE, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 150,000 shares common stock (acquired 10-18-01) | [4],[6] | 150,000 shares common stock (acquired 10-18-01) | [4],[6] | ||||||||||||||
Cost | 150,000 | [6] | 150,000 | [6] | ||||||||||||||
Value | 2 | [5],[6] | 2 | [5],[6] | ||||||||||||||
PALLETONE, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011 (acquired 2-17-06) | [4],[6] | Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011 (acquired 2-17-06) | [4],[6] | ||||||||||||||
Cost | 45,746 | [6] | 45,746 | [6] | ||||||||||||||
Value | 0 | [5],[6] | 0 | [5],[6] | ||||||||||||||
PALM HARBOR HOMES, INC. [Member] | ||||||||||||||||||
Location | Dallas, Texas | [1],[2] | Dallas, Texas | [1],[2] | ||||||||||||||
Description of Company | Integrated manufacturing, retailing, financing and insuring of manufactured housing and modular homes. | [1],[2] | Integrated manufacturing, retailing, financing and insuring of manufactured housing and modular homes. | [1],[2] | ||||||||||||||
Equity (in hundredths) | 30.40% | [1],[2],[3] | 30.40% | [1],[2],[3] | ||||||||||||||
Equity (in hundredths) | 30.40% | [1],[2],[3] | 30.40% | [1],[2],[3] | ||||||||||||||
Cost | 10,931,955 | [1],[2] | 10,931,955 | [1],[2] | ||||||||||||||
Value | 2 | [1],[2],[5] | 2 | [1],[2],[5] | ||||||||||||||
PALM HARBOR HOMES, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95) | [1],[2],[4] | 7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95) | [1],[2],[4] | ||||||||||||||
Cost | 10,931,955 | [1],[2] | 10,931,955 | [1],[2] | ||||||||||||||
Value | 2 | [1],[2],[5] | 2 | [1],[2],[5] | ||||||||||||||
PALM HARBOR HOMES, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | Warrant to purchase 286,625 shares of common stock at $3.14 per share, expiring 2019 (acquired 4-24-09) | [1],[2],[4] | Warrant to purchase 286,625 shares of common stock at $3.14 per share, expiring 2019 (acquired 4-24-09) | [1],[2],[4] | ||||||||||||||
Cost | 0 | [1],[2] | 0 | [1],[2] | ||||||||||||||
Value | 0 | [1],[2],[5] | 0 | [1],[2],[5] | ||||||||||||||
PHI HEALTH, INC. [Member] | ||||||||||||||||||
Location | Richardson, Texas | |||||||||||||||||
Description of Company | Develops and sells cardiac MRI systems and software. | |||||||||||||||||
Equity (in hundredths) | 67.00% | [3] | ||||||||||||||||
Equity (in hundredths) | 67.00% | [3] | ||||||||||||||||
Cost | 5,752,339 | |||||||||||||||||
Value | 5,752,339 | [5] | ||||||||||||||||
PHI HEALTH, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 1,559,111 shares Series A-1 Convertible Preferred Stock convertible into 1,559,111 shares of common stock at $0.0015 per share (acquired 1-27-11) | [4] | ||||||||||||||||
Cost | 2,339 | |||||||||||||||||
Value | 2,339 | [5] | ||||||||||||||||
PHI HEALTH, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 555,556 shares Series B-1 Convertible Preferred Stock convertible into 555,556 shares common stock at $2.25 per share (acquired 1-27-11) | [4] | ||||||||||||||||
Cost | 1,250,000 | |||||||||||||||||
Value | 1,250,000 | [5] | ||||||||||||||||
PHI HEALTH, INC. [Member] | Investment Type 3 [Member] | ||||||||||||||||||
Investment | 4,500,000 Shares Series C-1 Convertible Preferred Stock convertible into 4,500,000 shares common stock at $0.20 per share (acquired 1-7-11 and 1-27-11) | [4] | ||||||||||||||||
Cost | 4,500,000 | |||||||||||||||||
Value | 4,500,000 | [5] | ||||||||||||||||
THE RECTORSEAL CORPORATION [Member] | ||||||||||||||||||
Location | Houston, Texas | [1] | Houston, Texas | [1] | ||||||||||||||
Description of Company | Specialty chemicals for plumbing, HVAC, electrical, construction, industrial, oil field and automotive applications; smoke containment systems for building fires; also owns 20 of The Whitmore Manufacturing Company. | [1] | Specialty chemicals for plumbing, HVAC, electrical, construction, industrial, oil field and automotive applications; smoke containment systems for building fires; also owns 20 of The Whitmore Manufacturing Company. | [1] | ||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Investment | 27,907 shares common stock (acquired 1-5-73 and 3-31-73) | [1],[4] | 27,907 shares common stock (acquired 1-5-73 and 3-31-73) | [1],[4] | ||||||||||||||
Cost | 52,600 | [1] | 52,600 | [1] | ||||||||||||||
Value | 141,300,000 | [1],[5] | 144,700,000 | [1],[5] | ||||||||||||||
TCI HOLDINGS, INC. [Member] | ||||||||||||||||||
Location | Denver, Colorado | Denver, Colorado | ||||||||||||||||
Description of Company | Cable television systems and microwave relay systems. | Cable television systems and microwave relay systems. | ||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 21 shares 12% Series C Cumulative Compounding Preferred Stock (acquired 1-30-90) | [4] | 21 shares 12% Series C Cumulative Compounding Preferred Stock (acquired 1-30-90) | [4] | ||||||||||||||
Cost | 0 | 0 | ||||||||||||||||
Value | 826,115 | [5] | 840,778 | [5] | ||||||||||||||
TEXAS CAPITAL BANCSHARES, INC. [Member] | ||||||||||||||||||
Location | Dallas, Texas | [2] | Dallas, Texas | [2] | ||||||||||||||
Description of Company | Regional bank holding company with banking operations in six Texas cities. | [2] | Regional bank holding company with banking operations in six Texas cities. | [2] | ||||||||||||||
Equity (in hundredths) | 1.30% | [2],[3] | 1.60% | [2],[3] | ||||||||||||||
Equity (in hundredths) | 1.30% | [2],[3] | 1.60% | [2],[3] | ||||||||||||||
Investment | 489,656 shares common stock (acquired 5-1-00) | [2],[4],[7] | 489,656 shares common stock (acquired 5-1-00) | [2],[4],[7] | ||||||||||||||
Cost | 3,550,006 | [2] | 3,550,006 | [2] | ||||||||||||||
Value | 11,188,640 | [2],[5] | 12,711,470 | [2],[5] | ||||||||||||||
TRAX HOLDINGS, INC. [Member] | ||||||||||||||||||
Location | Scottsdale, Arizona | Scottsdale, Arizona | ||||||||||||||||
Description of Company | Provides a comprehensive set of solutions to improve the transportation validation, accounting, payment and information management process. | Provides a comprehensive set of solutions to improve the transportation validation, accounting, payment and information management process. | ||||||||||||||||
Equity (in hundredths) | 29.60% | [3] | 30.70% | [3] | ||||||||||||||
Equity (in hundredths) | 29.60% | [3] | 30.70% | [3] | ||||||||||||||
Cost | 7,650,000 | 5,000,000 | ||||||||||||||||
Value | 8,450,000 | [5] | 5,758,030 | [5] | ||||||||||||||
TRAX HOLDINGS, INC. [Member] | Investment Type 1 [Member] | ||||||||||||||||||
Investment | 18% convertible promissory note, 3,200,000 principal due 2012 (acquired 4-6-11 thru 5-6-11) | [4] | ||||||||||||||||
Cost | 2,650,000 | |||||||||||||||||
Value | 2,650,000 | [5] | ||||||||||||||||
TRAX HOLDINGS, INC. [Member] | Investment Type 2 [Member] | ||||||||||||||||||
Investment | 1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,061,279 common stock at $4.64 per share (acquired 12-8-08 and 2-17-09) | [4] | 1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,061,279 common stock at 4.64 per share acquired 12-8-08 and 2-17-09) | [4] | ||||||||||||||
Cost | 5,000,000 | 5,000,000 | ||||||||||||||||
Value | 5,800,000 | [5] | 5,758,030 | [5] | ||||||||||||||
VIA HOLDINGS, INC. [Member] | ||||||||||||||||||
Location | Sparks, Nevada | Sparks, Nevada | ||||||||||||||||
Description of Company | Designer, manufacturer and distributor of high-quality office seating. | Designer, manufacturer and distributor of high-quality office seating. | ||||||||||||||||
Equity (in hundredths) | 3.20% | [3] | 28.10% | [3] | ||||||||||||||
Equity (in hundredths) | 3.20% | [3] | 28.10% | [3] | ||||||||||||||
Investment | 12,686 shares common stock (acquired 3-4-11 and 3-25-11) | [4] | 12,686 shares common stock (acquired 3-4-11 and 3-25-11) | [4] | ||||||||||||||
Cost | 4,926,290 | 4,926,290 | ||||||||||||||||
Value | 2 | [5] | 4 | [5] | ||||||||||||||
WELLOGIX, INC. [Member] | ||||||||||||||||||
Location | Houston, Texas | [6] | Houston, Texas | [6] | ||||||||||||||
Description of Company | Developer and supporter of software used by the oil and gas industry. | [6] | Developer and supporter of software used by the oil and gas industry. | [6] | ||||||||||||||
Equity (in hundredths) | 19.20% | [3],[6] | 19.20% | [3],[6] | ||||||||||||||
Equity (in hundredths) | 19.20% | [3],[6] | 19.20% | [3],[6] | ||||||||||||||
Investment | 4,788,371 shares of common stock at $1.0441 per share (acquired 8-19-05 thru 6-15-08) | [4],[6] | 4,788,371 shares of common stock at $1.0441 per share (acquired 8-19-05 thru 6-15-08) | [4],[6] | ||||||||||||||
Cost | 5,000,000 | [6] | 5,000,000 | [6] | ||||||||||||||
Value | 2 | [5],[6] | 2 | [5],[6] | ||||||||||||||
THE WHITMORE MANUFACTURING COMPANY [Member] | ||||||||||||||||||
Location | Rockwall, Texas | [1] | Rockwall, Texas | [1] | ||||||||||||||
Description of Company | Specialized surface mining, railroad and industrial lubricants; coatings for automobiles and primary metals; fluid contamination control devices. | [1] | Specialized surface mining, railroad and industrial lubricants; coatings for automobiles and primary metals; fluid contamination control devices. | [1] | ||||||||||||||
Equity (in hundredths) | 80.00% | [1],[3] | 80.00% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 80.00% | [1],[3] | 80.00% | [1],[3] | ||||||||||||||
Investment | 80 shares common stock (acquired 8-31-79) | [1],[4] | 80 shares common stock (acquired 8-31-79) | [1],[4] | ||||||||||||||
Cost | 1,600,000 | [1] | 1,600,000 | [1] | ||||||||||||||
Value | 59,600,000 | [1],[5] | 55,600,000 | [1],[5] | ||||||||||||||
Ballast Point Ventures II, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 2.2% limited partnership interest (acquired 8-4-08 thru 6-18-10) | [4] | 2.2% limited partnership interest (acquired 8-4-08 thru 6-18-10) | [4] | ||||||||||||||
Cost | 1,425,000 | 1,200,000 | ||||||||||||||||
Value | 1,425,000 | [5] | 1,200,000 | [5] | ||||||||||||||
BankCap Partners Fund I, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 5.5% limited partnership interest (acquired 7-14-06 thru 5-2-11) | [4] | 5.5% limited partnership interest (acquired 7-14-06 thru 5-2-11) | [4] | ||||||||||||||
Cost | 5,762,270 | 5,762,270 | ||||||||||||||||
Value | 5,150,520 | [5] | 5,101,727 | [5] | ||||||||||||||
CapitalSouth Partners Fund III, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 1.9% limited partnership interest (acquired 1-22-08 and 2-12-09) | [4] | 1.9% limited partnership interest (acquired 1-22-08 and 2-12-09) | [4] | ||||||||||||||
Cost | 831,256 | 831,256 | ||||||||||||||||
Value | 862,000 | [5] | 790,000 | [5] | ||||||||||||||
CapStar Holdings Corporation [Member] | ||||||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Investment | 500 shares common stock (acquired 6-10-10) | [1],[4] | 500 shares common stock (acquired 6-10-10) | [1],[4] | ||||||||||||||
Cost | 3,703,619 | [1] | 3,703,619 | [1] | ||||||||||||||
Value | 4,365,593 | [1],[5] | 4,380,481 | [1],[5] | ||||||||||||||
Diamond State Ventures, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 1.4% limited partnership Interest (acquired 10-12-99 thru 8-26-05) | [4] | 1.4% limited partnership Interest (acquired 10-12-99 thru 8-26-05) | [4] | ||||||||||||||
Cost | 76,000 | 76,000 | ||||||||||||||||
Value | 174,965 | [5] | 177,996 | [5] | ||||||||||||||
Discovery Alliance, LLC [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [1],[3] | 0.00% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [1],[3] | 0.00% | [1],[3] | ||||||||||||||
Investment | 90.0% limited liability company acquired 9-12-08 thru 5-14-10) | [1],[4] | 90.0% limited liability company (acquired 9-12-08 thru 5-14-10) | [1],[4] | ||||||||||||||
Cost | 1,080,000 | [1] | 900,000 | [1] | ||||||||||||||
Value | 713,904 | [1],[5] | 574,488 | [1],[5] | ||||||||||||||
Essex Capital Corporation [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | 0.00% | [3] | |||||||||||||||
Equity (in hundredths) | 0.00% | 0.00% | [3] | |||||||||||||||
Investment | 10% unsecured promissory note due 8-19-10 acquired 8-16-09) | 10% unsecured promissory note due 8-19-10 (acquired 8-16-09) | [4] | |||||||||||||||
Cost | 0 | 0 | ||||||||||||||||
Value | 500,000 | 1,000,000 | [5] | |||||||||||||||
First Capital Group of Texas III, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 3.0% limited partnership interest (acquired 12-26-00 thru 8-12-05) | [4] | 3.0% limited partnership interest (acquired 12-26-00 thru 8-12-05) | [4] | ||||||||||||||
Cost | 778,895 | 778,895 | ||||||||||||||||
Value | 611,875 | [5] | 407,731 | [5] | ||||||||||||||
Humac Company [Member] | ||||||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Equity (in hundredths) | 100.00% | [1],[3] | 100.00% | [1],[3] | ||||||||||||||
Investment | 1,041,000 shares common stock (acquired 1-31-75 and 12-31-75) | [1],[4] | 1,041,000 shares common stock (acquired 1-31-75 and 12-31-75) | [1],[4] | ||||||||||||||
Cost | 0 | [1] | 0 | [1] | ||||||||||||||
Value | 147,000 | [1],[5] | 166,000 | [1],[5] | ||||||||||||||
STARTech Seed Fund I [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 12.1% limited partnership interest (acquired 4-17-98 thru 1-5-00) | [4] | 12.1% limited partnership interest (acquired 4-17-98 thru 1-5-00) | [4] | ||||||||||||||
Cost | 178,066 | 178,066 | ||||||||||||||||
Value | 40,773 | [5] | 52,606 | [5] | ||||||||||||||
STARTech Seed Fund II [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 3.2% limited partnership interest (acquired 4-28-00 thru 2-23-05) | [4] | 3.2% limited partnership interest (acquired 4-28-00 thru 2-23-05) | [4] | ||||||||||||||
Cost | 843,891 | 843,891 | ||||||||||||||||
Value | 317,671 | [5] | 317,392 | [5] | ||||||||||||||
Sterling Group Partners I, L.P. [Member] | ||||||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Equity (in hundredths) | 0.00% | [3] | 0.00% | [3] | ||||||||||||||
Investment | 1.6% limited partnership interest (acquired 4-20-01 thru 1-24-05) | [4] | 1.6% limited partnership interest (acquired 4-20-01 thru 1-24-05) | [4] | ||||||||||||||
Cost | 1,064,042 | 1,064,042 | ||||||||||||||||
Value | $ 629,500 | [5] | $ 919,417 | [5] | ||||||||||||||
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