Mount Logan Capital Inc (MLCI) 2015 Q4 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Harris & Harris Group fourth-quarter 2015 shareholder update.

女士們、先生們，大家好，感謝你們的支持。歡迎閱讀 Harris & Harris Group 2015 年第四季股東更新報告。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. I'd now like to hand the meeting over to Patty Egan, Chief Financial Officer. Please go ahead.

提醒一下，本次會議正在錄製中。現在我想將會議交給財務長 Patty Egan。請繼續。

Thank you. I'll begin by reading our Safe Harbor Statement. This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forward-looking are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein.

謝謝。首先，我要宣讀我們的安全港聲明。本簡報可能包含與未來事件相關的前瞻性陳述。本簡報中包含的前瞻性聲明是根據 1995 年私人證券訴訟改革法案的安全港條款做出的。這些前瞻性陳述受預測未來結果和條件的固有不確定性的影響。這些聲明反映了公司目前的信念，許多重要因素可能導致實際結果與本文表達的結果有重大差異。

Please see the Company's annual report on Form 10-K, as well as subsequent filings, filed with the Securities and Exchange Commission, for a more detailed discussion of the risks and uncertainties associated with the Company's business, including but not limited to, the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company's actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc. undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

請參閱公司向美國證券交易委員會提交的 10-K 表年度報告及其後續文件，以更詳細地了解與公司業務相關的風險和不確定性，包括但不限於與風險資本投資相關的風險和不確定性以及可能影響公司實際業績的其他重要因素。除非聯邦證券法另有要求，否則 Harris & Harris Group, Inc. 不承擔更新或修改這些前瞻性聲明以反映新事件或不確定性的義務。

In response to investor requests, we've invited executives from one of our portfolio companies, Adesto, to provide a brief overview of their company at the conclusion of today's call. Please note that any opinions or views expressed by the management of Adesto are strictly their own and do not necessarily reflect the opinions or views of Harris & Harris Group. Similarly, Adesto and its management are solely responsible for the content of their presentation, including any statements they make or any statistics or financial information they may provide, and Harris & Harris Group expressly disclaims any responsibility for the content of such presentation.

為了回應投資者的要求，我們邀請了我們投資組合公司之一 Adesto 的高管在今天的電話會議結束時簡要介紹他們的公司。請注意，Adesto 管理階層表達的任何意見或觀點均純屬其個人觀點，並不一定反映 Harris & Harris Group 的意見或觀點。同樣，Adesto 及其管理層對其演示的內容負全部責任，包括他們做出的任何聲明或他們可能提供的任何統計數據或財務信息，Harris & Harris Group 明確表示不對此類演示的內容承擔任何責任。

I will now turn the call over to our CEO, Doug Jamison.

現在我將把電話轉給我們的執行長 Doug Jamison。

Thank you, Patty. Thank you all for joining us this morning for our shareholder call focusing on year-end 2015. In conjunction with the call, we provided a link on our homepage of our website, www.hhvc.com, to a short PowerPoint presentation. You can find it on the homepage of our website under Resources on the right-hand side, titled Q4 2015 shareholder update call. We'll be referencing a couple slides from that presentation today.

謝謝你，帕蒂。感謝各位今天上午參加我們2015年年終股東會。在此次股東大會上，我們在公司網站www.hhvc.com的主頁上提供了一個簡短的PowerPoint簡報連結。您可以在我們網站主頁右側的「資源」下找到它，標題為「2015 年第四季股東更新電話」。今天我們將參考該簡報中的幾張投影片。

As we have said historically, Harris & Harris Group is really a reflection of our portfolio of companies. We try to let them speak for themselves as they are run by impressive management teams that we are proud to have the opportunity to work with. Beginning today, and continuing into the future, we are going to have one of our companies present to our shareholders at each of our quarterly calls so that you can hear from them regarding their businesses.

正如我們過去所說的那樣，Harris & Harris Group 實際上反映了我們的公司組合。我們試圖讓他們自己說話，因為他們由令人印象深刻的管理團隊管理，我們很榮幸有機會與他們合作。從今天開始，一直到將來，我們將在每次季度電話會議上安排一家公司向股東介紹他們的業務，以便您了解他們的業務狀況。

Additionally, as you will hear today, multiple of our companies will also be presenting at our annual shareholder meeting on June 7. We'll begin this new format with the CEO of Adesto, Mr. Narbeh Derhacobian. Narbeh is a Cofounder, President and CEO of Adesto Technologies. He has over 17 years of industry experience working on discrete and embedded memory technologies. He has held technical and managerial roles at SST, AMD, Virage Logic, and Cswitch Corporations.

此外，正如您今天所聽到的，我們的多家公司也將出席 6 月 7 日的年度股東大會。我們將與 Adesto 執行長 Narbeh Derhacobian 先生一起開始這種新形式。 Narbeh 是 Adesto Technologies 的共同創辦人、總裁兼執行長。他在分立和嵌入式記憶體技術領域擁有超過 17 年的行業經驗。他曾在 SST、AMD、Virage Logic 和 Cswitch 公司擔任技術和管理職務。

Adesto invents memory for things. In 2007, the founders of Adesto Technologies set out to build a new company, focused on developing innovative low-power memory solutions based on a promising type of resistive RAM technology called conductive bridging RAM or CBRAM. Adesto completed its initial public offering on its IPO in October of 2015 and trades on the NASDAQ exchange under the ticker symbol, IOTS.

Adesto 發明了事物記憶技術。 2007 年，Adesto Technologies 的創辦人著手創建一家新公司，專注於開發基於一種很有前景的電阻式 RAM 技術（稱為導電橋接 RAM 或 CBRAM）的創新低功耗記憶體解決方案。 Adesto 於 2015 年 10 月完成首次公開募股 (IPO)，並在納斯達克交易所交易，股票代碼為 IOTS。

As I hand it over to Narbeh and Adesto to begin, please see slide 3 from the presentation. Good morning, Narbeh, and thank you.

當我將其交給 Narbeh 和 Adesto 開始時，請參閱簡報中的第 3 張投影片。早安，Narbeh，謝謝你。

Good morning, Doug, and good morning, everyone. I'd like to talk briefly about Adesto and introduce the company. We've been a Harris & Harris portfolio company since 2007, as Doug mentioned. And we've been -- enjoyed Harris & Harris support tremendously over the years.

早安，道格，大家早安。我想簡單談談 Adesto 並介紹一下這家公司。正如 Doug 所提到的，自 2007 年以來，我們一直是 Harris & Harris 投資組合公司。多年來，我們一直非常享受 Harris & Harris 的支持。

Adesto Technologies is a fabulous semiconductor company. We build application-specific feature-rich devices specifically suited for the emerging era of Internet of Things. We have -- our devices are specifically focused on providing ultra-low power and ultra-low energy storage devices for the edge of IoT. As Doug mentioned, the company went public last fall, and we were the first semiconductor IPO, I believe, in the last two years. I think the investor community understood our opportunity, our technology, and our growth potential going into what seems to be the largest volume semiconductor market in history as IoT is emerging. Today, Adesto has over 100 products and we have over 500 customers. We enjoy a tremendous momentum in terms of our design win going into 2016 and 2017.

Adesto Technologies 是一家出色的半導體公司。我們建構了專門適合新興物聯網時代的應用功能豐富的設備。我們的設備專門為物聯網邊緣提供超低功耗和超低能量儲存設備。正如 Doug 所提到的，該公司於去年秋天上市，我相信我們是過去兩年內第一家進行 IPO 的半導體公司。我認為投資者群體了解我們的機會、我們的技術和我們的成長潛力，隨著物聯網的出現，我們將進入歷史上最大的半導體市場。如今，Adesto 擁有超過 100 種產品，超過 500 位客戶。在 2016 年和 2017 年的設計勝利方面，我們享有巨大的發展勢頭。

As I mentioned, our solutions are memory devices, yet our solutions are not commodity memory devices. Semiconductor memories for years have been characterized by a commodity afterthought as they have been deployed in devices such as personal computers, laptops, or smartphones.

正如我所提到的，我們的解決方案是儲存設備，但我們的解決方案不是商品儲存設備。多年來，半導體記憶體一直被視為事後才被考慮的商品，因為它們已部署在個人電腦、筆記型電腦或智慧型手機等設備中。

Our devices always have some sort of a proprietary feature that brings more value to end system other than storage -- dump storage of code and data. As such, we call our products application-specific memory solutions. They are very well suited for applications such as Bluetooth energy platform, industrial sensors and smart meters, consumer sensor nodes, home automation, medical lighting, wearables, and so on.

我們的設備總是具有某種專有功能，可以為最終系統帶來儲存以外的更多價值——程式碼和資料的轉儲儲存。因此，我們將我們的產品稱為特定應用的記憶體解決方案。它們非常適合藍牙能源平台、工業感測器和智慧電錶、消費感測器節點、家庭自動化、醫療照明、穿戴式裝置等應用。

Now the highlights of our product include very low power consumption and, more importantly, very low energy consumption, which is very much important for the edge of IoT sensors where battery life is driven by how much energy is consumed. Ability to provide these solutions in multiple form factors is also one of our strengths. Of course, we embed integrated intelligence and unique architectures to have end applications solve more problems than [slowing] data.

現在我們產品的亮點包括非常低的功耗，更重要的是非常低的能量消耗，這對於物聯網感測器的邊緣非常重要，因為電池壽命取決於消耗的能量。能夠以多種形式提供這些解決方案也是我們的優勢之一。當然，我們嵌入了整合智慧和獨特的架構，以便最終應用程式能夠解決比資料（減慢）更多的問題。

We think about IoT as this new era emerging upon us, suddenly out of ether; but in reality, if you step back, you realize that IoT really is a continuation and evolution of where we've been. If you go back to 1980s and 1990s where personal computing and personal communication started to pervade our life, we see that trend has always been that more intelligence going into a smaller footprint and getting mobile and continuously getting unplugged from the wall socket. This is what really IoT is -- IoT is embedding intelligence in ordinary objects we use daily, collection of data from these objects, and analysis of that data and action being taken on that data for some sort of economic or social good.

我們認為物聯網是一個突然從以太中誕生的新時代；但實際上，如果你退一步來看，你就會意識到物聯網實際上是我們過去所處階段的延續和演變。如果回顧 20 世紀 80 年代和 90 年代，個人運算和個人通訊開始滲透到我們的生活，我們會發現，這種趨勢一直是將更多的智慧融入到更小的空間中，實現移動化，並不斷擺脫牆壁插座的束縛。這就是真正的物聯網——物聯網將智慧嵌入到我們日常使用的普通物體中，從這些物體中收集數據，並分析這些數據，並根據這些數據採取行動，以實現某種經濟或社會利益。

Very similar to eras previous to IoT, the components building of the IoT infrastructure have their own unique requirements. In the era of PCs, we all cared about performance of our processors; when we made a buy decision on a personal computer, we always asked, how fast is the processor? In the era of personal computing -- sorry, personal communication, we ask questions about, what is the bandwidth of my device? Or we ask, how many pictures I can store on my smartphone? Or, what is the storage capacity of my pad?

與物聯網之前的時代非常相似，物聯網基礎設施的元件建置有其獨特的要求。在PC時代，我們都關心處理器的效能；當我們決定購買個人電腦時，我們總是會問，處理器的速度有多快？在個人運算時代——抱歉，是個人通訊時代，我們會問這樣的問題：我的設備的頻寬是多少？或者我們問，我的智慧型手機上可以儲存多少張照片？或者說，我的pad的儲存容量是多少？

IoT devices will have their own set of questions and it's not about gigabits and gigahertz; it's more about, what's the cost of ownership? How long does the battery of my IoT device last? Is my data secure or not? These unique questions require unique solutions from a semiconductor perspective that will be the building block of these devices. And Adesto is focused on the memory component of that.

物聯網設備會有自己的一系列問題，這與千兆位元和千兆赫無關；更重要的是，擁有成本是多少？我的物聯網設備的電池能用多久？我的資料是否安全？這些獨特的問題需要從半導體角度尋求獨特的解決方案，這將成為這些設備的基石。 Adesto 專注於其中的記憶體元件。

If you look at IoT, it encompasses a very large spectrum of hierarchies. Initially, IoT started as data collection at the edge points from the physical world, whether it's how many steps we've taken during the day or what is the temperature of the room we are sitting in, and what's my glucose level in my blood as I poke my finger with a pen.

如果你看一下物聯網，你會發現它涵蓋了非常廣泛的層次結構。最初，物聯網是從物理世界的邊緣點開始進行數據收集的，無論是我們一天走了多少步，還是我們所處的房間的溫度是多少，以及當我用筆戳手指時我的血糖水平是多少。

This data then is communicated into the cloud and analysis upon this data provides the feedback and the economic [looped] back into the system. Where we focus then is very clear. We're at the edge of the IoT. We focus on the devices that are actually doing this collection.

然後這些數據被傳送到雲端，對這些數據的分析提供回饋，並將經濟[循環]回系統。我們的重點在哪裡就非常明確了。我們處於物聯網的邊緣。我們關注的是實際進行這種收集的設備。

The volume there is expected to be very large from a semiconductor perspective and a simple anecdote will explain why that might be. If you think about a typical home, you may have two or three computers, you may have five or seven Internet-connected devices such as smartphones, TVs, and game consoles. But if IoT is to become IoT, that same home will have hundreds of sensors. So when you think about the components that grow and build those sensors, you can see why the semiconductor suppliers are so excited about this emerging market.

從半導體的角度來看，那裡的產量預計會非常大，一個簡單的軼事就可以解釋為什麼會這樣。想像一個典型的家庭，你可能有兩三台電腦，你可能有五到七台連接網路的設備，如智慧型手機、電視和遊戲機。但如果物聯網要成為物聯網，同一個家庭將擁有數百個感測器。因此，當您考慮開發和建造這些感測器的組件時，您就會明白為什麼半導體供應商對這個新興市場如此興奮。

A typical sensor, whether it's a variable sensor you wear on your arm or it's a sensor in a building, has very simple building-block components. Usually there is a sensor measuring something from the physical world. There is a controller that gives intelligence into the sensor. There is a very low power, low bandwidth radio that communicates this data onto some sort of a hub before the data gets loaded up into the cloud. And then there is memory that holds the intelligence, the code, that runs the sensor and also is used for data log wherever information is collected. Our focus is that piece of the puzzle.

典型的感測器，無論是戴在手臂上的可變感測器還是建築物中的感測器，都具有非常簡單的構建塊組件。通常有一個感測器來測量物理世界的某些東西。有一個控制器可以為感測器提供智慧。在資料載入到雲端之前，有一個非常低功率、低頻寬的無線電將這些資料傳送到某種集線器上。然後還有內存，它保存著運行感測器的情報、代碼，也用於在任何地方收集資訊的資料記錄。我們的焦點是那塊拼圖。

As I mentioned, today we have over 500 customers. We are very well diverse in many verticals. Our largest customer is about 12% of our revenue. The top 25 customers of Adesto constitute roughly about 45% of our revenue; the rest constitute the remaining 55%. So, we don't rely on a single customer to drive the company. And this is very much typical of what IoT characteristics would be going forward.

正如我所提到的，今天我們有超過 500 名客戶。我們在許多垂直領域都非常多元化。我們最大的客戶約占我們收入的12％。 Adesto 的前 25 名客戶約占我們收入的 45%；其餘佔剩餘的55%。因此，我們不會依賴單一客戶來推動公司的發展。這正是物聯網未來發展的典型特徵。

If I look back and you look at companies providing semiconductor solutions to the smartphone, for example, it was very clear -- you either had to be an Apple supplier or a Samsung supplier or the rest is irrelevant. IoT is not like that; IoT is not going to be that one company or one product that's going to be 100 million unit-a-year opportunities. It's actually going to be thousands of products and applications provided by probably hundreds of companies, but each one in millions of unit opportunities. It's probably the most fragmented semiconductor market in history.

例如，如果我回顧一下那些為智慧型手機提供半導體解決方案的公司，就會發現很明顯——你要么是蘋果供應商，要么是三星供應商，否則其他的都無關緊要。物聯網不是這樣的；物聯網不會成為一家公司或一款產品每年創造 1 億台設備銷售的機會。實際上，數百家公司可能會提供數千種產品和應用程序，但每一種都有數百萬個單位機會。這可能是史上最分散的半導體市場。

Today, 50% of our business is in industrial application. We are a leading supplier of memory to the industrial smart-metering business. And, as you know, the industrial IoT is going to have one of the largest impacts in terms of bringing efficiencies to manufacturing and industrial application. We are in consumer applications, communication, we supply in the medical field as well as we still do supply some memory devices through the old paradigms of computing.

如今，我們的業務有50%是在工業應用領域。我們是工業智慧計量業務的領先記憶體供應商。而且，如您所知，工業物聯網將在提高製造業和工業應用效率方面產生最大的影響之一。我們涉足消費應用、通訊領域，我們也為醫療領域提供服務，同時我們仍然透過舊的運算範式提供一些儲存設備。

We supply our customers based on, today, four families of products. We will introduce our fifth family in the second half of this year. As I mentioned, our products are designed to always bring some value to the end application, more so than just commodity memory devices. I will talk a little bit more about that shortly.

目前，我們為客戶提供四大系列產品。我們將在今年下半年推出第五個家庭。正如我所提到的，我們的產品旨在為最終應用帶來一些價值，而不僅僅是商品儲存設備。我稍後會再詳細談論這一點。

Typically, a commodity semiconductor supplier, the way they serve the market is by, really, price and availability. There is very little differentiation between commodity devices of multiple suppliers. It is who has the largest economies of scale, who has the lowest costs, and who can have products available at distribution -- and that is it.

通常，商品半導體供應商服務市場的方式實際上是價格和可用性。多個供應商的商品設備之間差異很小。關鍵在於誰擁有最大的規模經濟、誰擁有最低的成本、誰能夠提供分銷所需的產品——僅此而已。

Our business is a little bit different. Because we bring more value to our end customers, we have to work with the customers, early on, to be part of the solution as they are designing their own system. So our engagement with the customer happens earlier in the actual product cycle that they are in. As such, we measure our future growth by what we call our design wins. A design win for us is when a customer has understood our value, and has designed us into their system, has actually qualified us into their system and actually has put in a minimum order for prototype manufacturing of their end system.

我們的業務有點不同。因為我們為最終客戶帶來了更多價值，所以我們必須儘早與客戶合作，在他們設計自己的系統時成為解決方案的一部分。因此，我們與客戶的互動發生在他們所處的實際產品週期的早期。因此，我們透過所謂的設計勝利來衡量我們未來的成長。對我們來說，設計勝利就是當客戶理解了我們的價值，並將我們設計到他們的系統中，實際上使我們有資格進入他們的系統，並且實際上已經為他們的最終系統的原型製造下了最低訂單。

So it's fairly comfortable that this design win is going into production. From that point to a full production, we are modeling our consumer markets at 6 to 9 months; industrial markets will be 12 to 15 months; and, of course, consumer markets will be characterized more by the choppiness of the consumer market. Industrial markets will be less volatile and more predictable and more slow in terms of how they're going to grow.

因此，我們對這項設計勝利投入生產感到非常放心。從那時起到全面生產，我們將在 6 到 9 個月內模擬我們的消費市場；工業市場將為12至15個月；當然，消費市場將更多地以消費市場的波動性為特徵。工業市場波動性將會降低，更可預測，成長速度也會更加緩慢。

So, as you can see, when you look at our Company's design wins going back to 2013, when we started to introduce some of our new products, in 2013, we finished at 35 design wins; 2014 we had 60-some design wins; and 2015, last year, we finished at135 design wins. This is a tremendous growth -- 90% annual growth rate for our design wins indicating where we are going. And the reason why we are winning these designs is because our solutions are very much suited for the products and the systems that our end customers are building, specifically in the IoT area.

因此，正如您所看到的，當您回顧我們公司自 2013 年以來獲得的設計勝利時，當我們開始推出一些新產品時，2013 年我們獲得了 35 項設計勝利； 2014 年我們獲得了 60 多項設計大獎； 2015 年，也就是去年，我們共獲得 135 項大獎。這是一個巨大的成長——我們設計勝利的年增長率達到 90%，這表明我們正在前進。我們之所以贏得這些設計，是因為我們的解決方案非常適合我們的最終客戶正在建立的產品和系統，特別是在物聯網領域。

As I mentioned, roughly about 50% of our business is in industrial, and this is reflective of our design wins in 2015, 45% in industrial. If you really round up the majority of our business, industrial, consumer and communication covers close to 90% of that.

正如我所提到的，我們的業務大約有 50% 在工業領域，這反映了我們在 2015 年的設計勝利，其中 45% 在工業領域。如果真的把我們的大部分業務匯總起來，工業、消費者和通訊業務佔了其中的近 90%。

Let me talk quickly about a couple of our products and why -- what we mean by application specific. We have a product family called data flash. It is a nonvolatile memory -- flash memory, just like you have in your USB drives. However, data flash is designed architecturally. It's a proprietary architecture, design architecture, to do one function very well and that is logging updates.

讓我快速介紹一下我們的一些產品以及為什麼——我們所說的特定於應用程式。我們有一個名為資料快閃記憶體的產品系列。它是一種非揮發性記憶體——閃存，就像您的 USB 驅動器中的一樣。然而，資料快閃記憶體是在架構上設計的。它是一種專有架構、設計架構，可以很好地實現一項功能，那就是記錄更新。

If you think about when you log data, whether you're logging footsteps or you are logging temperature, you're really changing very little data. You are counting something or frequently measuring something and updating an information. That is very much different than the use of a memory you have in your USB stick, where it is designed to move large chunks of data, like a picture, like a movie, like a large file back and forth very fast.

如果你考慮一下你記錄數據的時間，無論是記錄腳步還是記錄溫度，你實際上改變的數據都很少。您正在計算某事物或頻繁測量某事物並更新資訊。這與 USB 記憶棒的使用有很大不同，USB 記憶棒旨在快速來回移動大量數據，例如圖片、影片、大檔案。

Data flash does the data logging function very efficiently, which means it's high speed and it can do that at very low power, because it's not moving large pieces of data. This is probably very irrelevant if it's used in a personal computer or in a server rack. But this is absolutely critical if the device is used in a sensor that's running on a battery, because every joule of that battery needs to be addressed in order to extend the battery life and lower the cost of ownership of these sensors.

資料快閃記憶體可以非常有效率地執行資料記錄功能，這意味著它速度很快，並且可以以非常低的功率執行此操作，因為它不會移動大量資料。如果將其用於個人電腦或伺服器機架中，這可能就無關緊要了。但如果該設備用於依靠電池運行的感測器，這絕對至關重要，因為需要解決電池的每一焦耳問題，以延長電池壽命並降低這些感測器的擁有成本。

So, data flash, as an application-specific memory, is used by fitness trackers like Jawbone; it is used by smart meters, it is counting utility use of the home, by lengthened [units on the] IU side, giving smart metering providers. And it's also used by (inaudible) the drones. It's not used as the part of the system that is actually storing the images of the drone that's flying over, it's actually used as a flight-data recorder, very much similar to a black box of an airplane, except in a drone you cannot haul around a black box, so you need to have this tiny data flash device to do data logging for the drone.

因此，資料快閃記憶體作為專用記憶體，被 Jawbone 等健身追蹤器使用；它由智慧電錶使用，它透過延長 IU 側的單位來計算家庭的公用事業使用情況，為智慧電錶提供者提供。它也被（聽不清楚）無人機使用。它不是用作實際儲存飛行無人機影像的系統的一部分，它實際上用作飛行資料記錄器，非常類似於飛機的黑盒子，只不過在無人機中你不能隨身攜帶黑匣子，所以你需要有這個微小的資料快閃記憶體設備來為無人機進行資料記錄。

Fusion family is another one, it was designed specifically again to work with systems that are running on a battery. And, today, it is the best-in-class memory solution in the world, allowing widest voltage capability to operate. What that means is that when a battery offsets a Bluetooth, low-energy system, for example, that the battery is discharging, when the voltage starts to drop, we've taken the flash memory out of the problem of having the consumer go and change the battery because it's expecting a second voltage and the battery is not delivering it.

Fusion 系列是另一個系列，它再次經過專門設計，可與使用電池運行的系統配合使用。如今，它是世界上一流的記憶體解決方案，具有最寬的運行電壓能力。這意味著，當電池抵消藍牙、低能耗系統（例如電池放電時）時，當電壓開始下降時，我們就不再需要快閃記憶體來解決這個問題，因為消費者需要第二個電壓，而電池卻無法提供這個電壓。

So, solutions like this where you can see our products are memory devices and yet they offer value at the end system. What that means though, financially, is that we charge a premium, obviously, for these features. That premium is reflected in our corporate gross margin.

因此，在這樣的解決方案中，您可以看到我們的產品是儲存設備，但它們在最終系統中提供了價值。但從財務角度來看，這意味著我們顯然要對這些功能收取額外費用。這項溢價反映在我們公司的毛利率上。

Typical memory suppliers from Asia have gross margin in their teens. More high-end memory suppliers in the US have their gross margin of this product portfolio that we have predicted in the 30%s. Our gross margin is in mid-40%s, in 45% range. Our customers understand this value. They are able to translate the value we bring to them into their own end systems and they pay the premium for us.

亞洲的典型記憶體供應商的毛利率只有十幾歲。美國更多高階記憶體供應商的該產品組合的毛利率我們預測在30%左右。我們的毛利率在40%左右，約45%。我們的客戶了解這項價值。他們能夠將我們為他們帶來的價值轉化為自己的終端系統，並為我們支付溢價。

Finally, let me talk about resistive RAM. You might have followed in the news, if you follow the world of semiconductors, that there's a new technology that large companies such as Intel, Micron, even Samsung, a few years ago, have been touting about a completely new way of storing information in a chip called resistive RAM.

最後再說一下電阻式RAM。如果您關注半導體領域，您可能已經在新聞中關注過，幾年前，英特爾、美光、甚至三星等大公司一直在宣傳一種新技術，即在稱為電阻式 RAM 的晶片中存儲信息的全新方式。

Adesto is the only company in the world today that sells discrete resistive-RAM memories. Our flavor of resistive RAM is called conductive bridging RAM -- CBRAM. We are first to market with this product. We have a huge IP portfolio in this space. The advantages of resistive RAMs are threefold. They can scale, which means that you can make very high-density memory devices; this is what is the interest for the large-memory suppliers to address their technology bottlenecks as they move to aggressively scaling their devices.

Adesto 是當今世界上唯一一家銷售分立電阻式 RAM 記憶體的公司。我們的電阻式 RAM 稱為導電橋接 RAM—CBRAM。我們是第一個將該產品推向市場的。我們在這個領域擁有龐大的智慧財產權組合。電阻式 RAM 具有三方面的優點。它們可以擴展，這意味著你可以製造非常高密度的儲存設備；這正是大內存供應商在積極擴展其設備規模時解決技術瓶頸所感興趣的。

We are interested in the other two features of resistive RAMs, which it allows the operation of the chip to be even extremely more low power than we are able to [get to] with today's technologies. And it can be done at very high speed. When you combine high speed and low power, you get low energy. Low energy, which is, as I mentioned, is what's very important for battery life. And these are orders of magnitude improvements. So, today, if you look at even some of our standard devices we've built on our CBRAM platform, it's able to operate at 10 to 100 times less energy than industry standard flash-memory devices.

我們對電阻式 RAM 的另外兩個特性很感興趣，它可以讓晶片的運作功耗比我們今天的技術所能達到的還要低得多。並且可以以非常高的速度完成。當高速與低功率結合在一起時，就會獲得低能耗。正如我所提到的，低能耗對於電池壽命來說非常重要。這些都是數量級的改進。因此，今天，如果您看一下我們在 CBRAM 平台上構建的一些標準設備，您會發現它的運行能耗比行業標準閃存設備低 10 到 100 倍。

We have two families of products -- one of them we just announced last month, called Moneta family. The first product has been in production for the last year and a half, the Mavriq family. That is the product that we use to drive the manufacturing of the technology maturing off the manufacturing. Moneta was designed in conjunction with three customers designing biometric applications. Moneta is a very interesting product because, built on the CBRAM platform, it actually enables the capability to run our devices, even on an energy-harvesting levels of energy.

我們有兩個產品系列——其中一個是我們上個月剛發布的，稱為 Moneta 系列。第一款產品 Mavriq 系列已投入一年半。這是我們用來推動製造技術成熟的產品。 Moneta 是與三位設計生物辨識應用程式的客戶共同設計的。 Moneta 是一款非常有趣的產品，因為它建立在 CBRAM 平台上，實際上能夠運行我們的設備，即使是在能量收集等級的能量上。

So, as you really think about IoT, the ideal IoT know that the edge will be one that does not require any batteries whatsoever. That you can sprinkle that field with sensors that monitor for example, the moisture in the soil, and then these sensors really harvest energy by using light, wind, motion to power up just enough to measure what they need to do, transmit information, and then go to sleep. From the memory perspective, our CBRAM platform is capable of operating at such low voltage -- low energies.

因此，當您真正考慮物聯網時，理想的物聯網知道邊緣將是根本不需要任何電池的物聯網。你可以在田地裡安裝感測器來監測土壤濕度等，然後這些感測器利用光、風、運動來收集能量，從而提供足夠的能量來測量它們需要做的事情，傳輸訊息，然後進入睡眠狀態。從記憶體角度來看，我們的 CBRAM 平台能夠在如此低的電壓、低能量下運作。

Finally, in conclusion, we are very excited about the company. We think the emergence of IoT is creating this huge opportunity for products and solutions that we're very good at designing. And we believe, if you look back in the company for 2013, 2014, and 2015, where we started to focus in this area and come up with some of our new product families that are specifically designed for that, with our access to the vast channel of customers we have, each one designing products in these areas, we are seeing that in our design win momentum.

最後，總而言之，我們對這家公司感到非常興奮。我們認為物聯網的出現為我們擅長設計的產品和解決方案創造了巨大的機會。我們相信，如果回顧公司 2013 年、2014 年和 2015 年的情況，我們開始關注這一領域，並推出了一些專門為此設計的新產品系列，透過與廣大客戶管道的聯繫，每個客戶都在這些領域設計產品，我們看到了設計取勝的勢頭。

And we believe this new era of IoT, which is really changing the landscape of how suppliers should supply components to this market, creates [great] challenges to the established suppliers because these current suppliers have been supplying to single-runner high-volume products like PCs, like smartphones, whereas IoT is completely different and very much requiring a new set of requirements and a new way of approaching how solutions are designed to enable IoT become IoT.

我們相信，物聯網的新時代確實改變了供應商向該市場供應零件的方式，也給現有的供應商帶來了巨大的挑戰，因為這些現有的供應商一直在向個人電腦、智慧型手機等單一大批量產品供應產品，而物聯網則完全不同，需要一套新的要求和一種新的方式來設計解決方案，使物聯網成為物聯網成為物聯網。

Doug?

道格？

Narbeh, thank you very much. We very much appreciate you taking time out of your schedule to present to our shareholders. I believe you're actually at an investor conference today, so I am sure you'll be telling this story a few more times. Thank you very much.

Narbeh，非常感謝。我們非常感謝您抽出時間向我們的股東做報告。我相信你今天實際上是在參加一個投資者會議，所以我相信你會再講幾次這個故事。非常感謝。

Daniel, can I now turn it over to you for the presentation?

丹尼爾，我現在可以把它交給你進行演示嗎？

Absolutely. And thank you, Narbeh, as well, for presenting. Thank you, Doug. We would like next to summarize some of the accomplishments and some of the challenges to our business in 2015.

絕對地。也感謝 Narbeh 的演講。謝謝你，道格。接下來，我們想總結一下 2015 年我們業務中所取得的一些成就和麵臨的一些挑戰。

In 2015, two of our portfolio companies, one you just heard -- Adesto Technologies Corporation -- and OpGen, Inc, completed IPOs and are now traded on the NASDAQ stock exchange under the symbol IOTS and OPGN, respectively. Molecular Imprints and SiOnyx were sold to undisclosed buyers. We hold shares in the buyer of Molecular Imprints and have an economic interest in future returns from the buyer of SiOnyx.

2015 年，我們的兩家投資組合公司（您剛剛聽說的一家是 Adesto Technologies Corporation）和 OpGen, Inc，完成了 IPO，目前分別以股票代碼 IOTS 和 OPGN 在納斯達克證券交易所交易。 Molecular Imprints 和 SiOnyx 被出售給未公開的買家。我們持有 Molecular Imprints 買家的股份，並對 SiOnyx 買家的未來回報擁有財務利益。

CordenPharma International bought out SynGlyco's rights to future payments. We sold our shares of Nantero to an undisclosed current investor in the Company, at a gain on our investment. We received milestone payments related to the sales of BioVex to AmGen and Molecular Imprints to Canon.

CordenPharma International 買下了 SynGlyco 未來付款的權利。我們將所持有的 Nantero 股份出售給了該公司一位未公開的現有投資者，並獲得了投資收益。我們收到了與向 AmGen 出售 BioVex 以及向 Canon 出售 Molecular Imprints 相關的里程碑付款。

We received the final principal payment from our initial set of non-convertible debt investments made between 2010 and 2012. These investments generated an attractive return on investment, provided us with short-term income, and all principal was repaid in full. We repurchased 509,082 shares of our stock for approximately $1.2 million, at an average price of $2.36. We decreased our expenses for the third consecutive year. Additionally, in 2016, we are positioned to significantly reduce net operating loss an additional 20% to 30%.

我們收到了 2010 年至 2012 年期間進行的首批不可轉換債務投資的最後一筆本金。這些投資產生了可觀的投資回報，為我們帶來了短期收入，並且所有本金都已全額償還。我們以約 120 萬美元的價格回購了 509,082 股股票，平均價格為 2.36 美元。我們連續第三年減少開支。此外，2016年，我們計劃將淨營業虧損進一步大幅減少20%至30%。

AgBiome, EchoPixel, Magic Leap, Metabolon, NGX Bio and ORIG3N raised rounds of capital from new and current investors at higher prices per share than each company's respective prior round of financing.

AgBiome、EchoPixel、Magic Leap、Metabolon、NGX Bio 和 ORIG3N 從新投資者和現有投資者手中籌集了多輪資金，每股價格均高於各公司各自前一輪融資的價格。

A number of our portfolio companies announced significant developments, including: D-Wave secured multi-year agreements with Lockheed Martin and Google, and an order from Los Alamos National Laboratory. The company also announced and shipped its first thousand cubic computers. Google announced that D-Wave's quantum computer was able to find solutions to complicated problems of nearly 1,000 variables up to 10 to the eighth times faster than classical computers.

我們的許多投資組合公司宣布了重大進展，包括：D-Wave 與洛克希德馬丁和谷歌達成了多年協議，並獲得了洛斯阿拉莫斯國家實驗室的訂單。該公司還宣布並出貨了首批千立方計算機。 Google宣布，D-Wave 的量子電腦能夠以比傳統電腦快 10 到 8 倍的速度找到近 1000 個變數的複雜問題的解決方案。

AgBiome formed a strategic partnership with Genective, a leading developer of biotech crops, to accelerate the discovery of a new generation of insect-control traits. HZO announced partnerships with Dell and Motorola. HZO's solutions are incorporated into Dell's Latitude 12 Rugged Tablet and Motorola's Moto Surround earbuds.

AgBiome 與領先的生物技術作物開發商 Genective 建立了戰略合作夥伴關係，以加速發現新一代昆蟲控制性狀。 HZO 宣布與戴爾和摩托羅拉建立合作關係。 HZO 的解決方案被納入戴爾的 Latitude 12 Rugged Tablet 和摩托羅拉的 Moto Surround 耳機中。

We also faced the following challenges during the year. Even though financings of some of our portfolio companies may have occurred at increases in prices per share from the prior round of financing, such increases in value may not be reflected in full in our valuation, owing to other rights and preferences afforded to investors in those rounds of financing. This challenge, in part, led to a decrease in our net asset value per share during 2015.

這一年我們還面臨以下挑戰。儘管我們投資組合中的一些公司的融資價格可能比上一輪融資時有所上漲，但由於投資者在各輪融資中享有其他權利和優先權，這種價值上漲可能不會完全反映在我們的估值中。這項挑戰在一定程度上導致我們 2015 年每股淨資產價值下降。

The values of public equities particularly those in micro-capitalization companies, are highly volatile. While Adesto Technologies Corporation is trading above its IPO price, Champions Oncology, Enumeral, and OpGen all decreased in value during 2015. Our own stock price has been under considerable pressure from these and other headwinds.

公開股票的價值，特別是微型資本公司的股票的價值，波動性很大。儘管 Adesto Technologies Corporation 的交易價格高於其 IPO 價格，但 Champions Oncology、Enumeral 和 OpGen 的價值在 2015 年均有所下跌。我們自己的股價也因這些和其他不利因素而承受相當大的壓力。

The downturn in the oil and gas sector has negatively affected the business operations of at least one of our portfolio companies, Produced Water Absorbents. While Bridgelux agreed to be acquired by a consortium of buyers in July of 2015, the transaction has yet to close and we are uncertain if and when it will close.

石油和天然氣行業的低迷對我們至少一家投資組合公司 Produced Water Absorbents 的業務運營產生了負面影響。儘管普瑞光電於 2015 年 7 月同意被買家財團收購，但交易尚未完成，我們不確定是否會完成以及何時完成。

I'll hand it back to Doug.

我會把它交還給道格。

Thank you, Daniel. So as we look forward to 2016, we continue to focus intently on three areas where we believe we can create value for shareholders, now and into the future.

謝謝你，丹尼爾。因此，展望 2016 年，我們將繼續專注於三個領域，我們相信現在和將來我們都能為股東創造價值。

The first, we believe major changes are coming to the American healthcare system over the next decade. The promise of precision medicine will be leading many of these challenges. We believe we are in a unique position to build certain of our current and our future portfolio companies addressing precision health and precision medicine as majority-owned subsidiaries or controlled-partner companies.

首先，我們相信未來十年美國醫療保健系統將會發生重大變化。精準醫療的前景將引領許多此類挑戰。我們相信，我們擁有獨特的優勢，可以將我們目前和未來的某些投資組合公司打造為多數股權子公司或控股合作夥伴公司，致力於精準健康和精準醫療。

Second, we'll continue to cultivate our maturing portfolio companies that have the potential to generate substantial returns. When these maturing companies exit, we plan to return to shareholders a much greater portion of future realized gains from these investments in the form of dividends and share repurchases than we have historically.

其次，我們將持續培育那些有潛力產生豐厚回報的成熟投資組合公司。當這些成熟的公司退出時，我們計劃以股利和股票回購的形式將這些投資未來實現的收益中比以往更大比例的收益返還給股東。

Also, as we announced on March 9, we will begin offering a limited number of accredited investors the opportunity to co-invest with Harris & Harris Group in some of these maturing companies through a newly formed co-investment fund that will be managed by Harris & Harris Group. Daniel will speak more on this in a moment.

此外，正如我們在 3 月 9 日宣布的那樣，我們將開始向有限數量的合格投資者提供機會，透過由 Harris & Harris Group 管理的新成立的共同投資基金，與 Harris & Harris Group 共同投資其中一些成熟公司。丹尼爾稍後將會就此進行更多闡述。

We'll continue to reduce net operating losses which we define as investment income less our expenses. We'll see a further reduction in net operating losses of 20% to 30% in 2016, after an 11% reduction over the period of time from 2013 to 2015. We believe this will take us to an expense level we believe is at a minimum to operate a publicly traded business development company in the current regulatory environment.

我們將繼續減少淨營業虧損，我們將其定義為投資收益減去支出。繼 2013 年至 2015 年期間淨營運虧損減少 11% 之後，2016 年我們的淨營運虧損將進一步減少 20% 至 30%。我們相信，這將使我們的支出水準達到我們認為在當前監管環境下經營一家公開上市的商業發展公司的最低水準。

We will also seek to increase substantially the short-term income generated from existing and new investments to offset our operating expenses and potentially generate additional cash flows for shareholders of Harris & Harris Group.

我們還將尋求大幅增加現有和新投資產生的短期收入，以抵消我們的營運費用，並可能為哈里斯和哈里斯集團的股東創造額外的現金流。

I would like to now say a few words on our focus on precision health and precision medicine. We discussed this in November, as well. Over the past few years, we've been actively building a set of companies in the precision health and precision medicine market space. These include Metabolon, ORIG3N, EchoPixel, NGX Bio, TARA BioSystems, Interome, ProMuc, and Phylagen. We define precision health and precision medicine as a focus on health, wellness, and medicine at the individual level. It includes not just medical technologies, but digital technologies, genetic technologies, and big data and data-mining technologies.

現在我想談談我們對精準健康和精準醫療的關注。我們在十一月也討論過這個問題。過去幾年，我們一直在精準健康和精準醫療市場領域積極打造一群公司。其中包括 Metabolon、ORIG3N、EchoPixel、NGX Bio、TARA BioSystems、Interome、ProMuc 和 Phylagen。我們將精準健康和精準醫療定義為關注個人層面的健康、保健和醫療。它不僅包括醫療技術，還包括數位技術、基因技術以及大數據和資料探勘技術。

We believe the current healthcare market is ripe for change. According to the Congressional Budget Office, healthcare expenditures have grown at a level of 2% greater than Gross Domestic Product each year since 1975. Each year healthcare has taken increasingly more of our economic output in the United States. Healthcare has grown from 8% of GDP in 1975 to just under 18% today.

我們相信當前的醫療保健市場已經成熟，需要做出改變。根據國會預算辦公室的數據，自 1975 年以來，醫療保健支出的年增長率都比國內生產毛額高出 2%。醫療保健在美國經濟產出中所佔的比重每年都在增加。醫療保健佔 GDP 的比重從 1975 年的 8% 成長到如今的略低於 18%。

Not only is this trend unsustainable, but it's escalated while not providing healthcare consumers either, one, answers to chronic diseases that are individualized to their illness, nor specific answers that can be used to prolong health and well-being for extended periods of time. Precision health and precision medicine will be an increasingly important piece of the changing healthcare market over the next decade. Specifically, we believe that building a bridge between the consumer and the data the consumer presents, and the clinical market, where large datasets of information can be stored, interrogated, and clinically interpreted, is an opportunity for Harris & Harris Group to become an impactful leader in the healthcare market.

這種趨勢不僅是不可持續的，而且它還在不斷升級，既沒有為醫療保健消費者提供針對其病情的針對性慢性疾病的答案，也沒有提供可以長期延長健康和福祉的具體答案。未來十年，精準健康和精準醫療將成為不斷變化的醫療保健市場中越來越重要的一部分。具體來說，我們相信，在消費者和消費者提供的數據以及臨床市場之間建立一座橋樑，可以儲存、查詢和臨床解釋大量資訊資料集，這是哈里斯和哈里斯集團成為醫療保健市場有影響力的領導者的機會。

Our portfolio companies ORIG3N and NGX Bio are already focused on driving consumer data in the regenerative medicine and genomics areas, respectively. Metabolon, TARA Biosystems, and Phylagen each provide precision information at an individualized level. Our newest portfolio company, Interome, is focused on gathering interrogating information, some provided by our own portfolio companies mentioned above, to provide clinically actionable information.

我們的投資組合公司 ORIG3N 和 NGX Bio 分別專注於推動再生醫學和基因組學領域的消費者數據。 Metabolon、TARA Biosystems 和 Phylagen 均提供個人化的精確資訊。我們最新的投資組合公司 Interome 專注於收集詢問信息，其中一些由我們上面提到的投資組合公司提供，以提供可操作的臨床資訊。

As we study the emergence of new markets and changing industries, as we have looked back and learned from our own venture capital experiences, as well as those of others, we've concluded that building a focused set of synergistic companies focused on the emergence of a new market, at a changing industry, is the best way to create value for our shareholders over the coming years. Precision health and precision medicine provides this opportunity.

當我們研究新興市場和不斷變化的行業時，當我們回顧和學習我們自己以及他人的風險投資經驗時，我們得出結論：建立一組專注於新興市場和不斷變化的行業的協同公司，是未來幾年為股東創造價值的最佳方式。精準健康和精準醫療提供了這個機會。

Daniel, I'm going to turn it back to you to talk to the co-investment fund opportunities.

丹尼爾，我會把話題轉回給你，談談共同投資基金的機會。

Thank you, Doug. We would like to focus for a few minutes on this newly formed, co-investment fund that Doug just mentioned. A consistent question we hear from our shareholders, and other attendees at our meet-the-portfolio-day events and other conversations is, how can I invest directly in your portfolio of companies.

謝謝你，道格。我們想花幾分鐘時間集中討論道格剛才提到的這個新成立的共同投資基金。我們的股東以及投資組合日活動和其他對話中的其他與會者經常問的一個問題是，我如何才能直接投資於你們的公司投資組合。

As our portfolio companies grow, we have rights to invest in future rounds of financings, if we so choose. These rights are often referred to as preemptive rights. We believe that offering some of these special rights to accredited investors of Harris & Harris Group can be a catalyst to invest in and hold our stock.

隨著我們投資組合公司的發展，如果我們願意的話，我們有權投資未來的融資。這些權利通常被稱為優先購買權。我們相信，向 Harris & Harris Group 的合格投資者提供部分特殊權利可以成為投資和持有我們股票的催化劑。

It permits the accredited investors to invest in the companies within our portfolio that they believe have outside growth potential while the companies are still private and not readily available to a wide group of investors. Having accredited investors of Harris & Harris Group participate where and when they would like in financings of our more mature portfolio companies is a way that Harris & Harris Group can keep more control and retain greater ownership than we can otherwise achieve alone. And these accredited investors have the opportunity to potentially generate returns on invested capital in individual portfolio companies.

它允許合格投資者投資我們投資組合中他們認為具有外部成長潛力的公司，而這些公司仍然是私有的，不易被廣大投資者所接受。讓哈里斯與哈里斯集團的合格投​​資者在他們希望的時間和地點參與我們更成熟的投資組合公司的融資，是哈里斯與哈里斯集團能夠保持更多控制權和保留更大所有權的一種方式，而這比我們單獨實現的要多。這些合格投資者有機會從個別投資組合公司的投資資本中獲得回報。

These opportunities to invest in maturing companies will be provided through Harris H&H Co-Investment Partners, LLC, a newly formed entity that will be managed by Harris & Harris Group. We expect to solicit interest from shareholders in separate series established by H&H Co-Investment Partners to invest specifically in individual portfolio companies, ahead of those potential rounds of financing.

這些投資成熟公司的機會將透過新成立的實體 Harris H&H Co-Investment Partners, LLC 提供，該實體將由 Harris & Harris Group 管理。我們期望在這些潛在融資輪次之前，徵求 H&H Co-Investment Partners 設立的單獨系列的股東的興趣，以專門投資於個別投資組合公司。

We expect that accredited investors who have held Harris & Harris Group stock prior to the close of each financing will have priority in the allocation of these limited co-investment opportunities. We'll provide more information on how accredited investors may subscribe to our offerings later this month.

我們預計，在每次融資結束前持有 Harris & Harris Group 股票的合格投資者將在這些有限的共同投資機會分配中享有優先權。我們將在本月稍後提供更多有關合格投資者如何認購我們的產品的資訊。

I will now hand off the call to Patty Egan, our CFO, to discuss the financial statements for the year ending December 31, 2015.

我現在將電話轉交給我們的財務長 Patty Egan，討論截至 2015 年 12 月 31 日的財務報表。

Thank you, Daniel. At December 31, 2015, we had total assets of approximately $96.5 million on our balance sheet. Included in our total assets is our investment portfolio which was valued at approximately $77.2 million versus its cost basis of $117 million as of the end of the year. Therefore, our portfolio was a depreciated state of $39.8 million.

謝謝你，丹尼爾。截至 2015 年 12 月 31 日，我們的資產負債表上的總資產約為 9,650 萬美元。我們的總資產包括我們的投資組合，截至年底，價值約為 7,720 萬美元，而其成本基礎為 1.17 億美元。因此，我們的投資組合貶值了 3,980 萬美元。

We also held $17.9 million in cash and $5 million of debt outstanding at year end. At December 31, 2015, our primary and secondary liquidity was $37.1 million. Our net assets of December 31, 2015, were approximately $88.7 million and our net asset value per share was $2.88. This is a decrease from our net asset value per share of $3.51 at December 31, 2014.

截至年底，我們還持有 1,790 萬美元現金和 500 萬美元未償還債務。截至 2015 年 12 月 31 日，我們的一級和二級流動資金為 3,710 萬美元。截至 2015 年 12 月 31 日，我們的淨資產約為 8,870 萬美元，每股淨值為 2.88 美元。這比 2014 年 12 月 31 日每股淨資產價值 3.51 美元有所下降。

Turning to our income statement, for 2015, we had investment income of approximately $917,000, compared to approximately $518,000 in investment income in 2014. Our total expenses were approximately $8.1 million for the year, compared with approximately $8.4 million during 2014. These expense figures include both cash and noncash-based operating expenses, such as stock-based compensation. Stock-based compensation expense has no impact to NAV.

談到我們的損益表，2015 年，我們的投資收入約為 917,000 美元，而 2014 年的投資收入約為 518,000 美元。我們全年的總支出約為 810 萬美元，而 2014 年約為 840 萬美元。這些支出數字包括現金和非現金營運支出，例如股票薪酬。股票薪酬費用對淨值沒有影響。

Our total cash-based and accrued operating expenses for the year ended December 31, 2015, were approximately $7.5 million, which was comparable to the amounts in 2014. This yielded a net operating loss of $7.2 million for 2015, which is a decrease compared to our net operating loss of $7.9 million for 2014.

截至 2015 年 12 月 31 日止年度，我們的現金及應計營業費用總額約為 750 萬美元，與 2014 年的金額相當。這導致 2015 年淨營業虧損為 720 萬美元，與 2014 年 790 萬美元的淨營業虧損相比有所減少。

I'll now turn the call back over to Doug.

我現在將電話轉回給 Doug。

Thanks, Patty. Just a couple things before we head into question-and-answer period, both of which relate to things you can find on our website. First of all, if you go to our website, right under the picture that announces the annual shareholder meeting, there's a -- you can click to go to a short survey. Those that are interested, we would love to have you go to that survey. It allows you to answer some questions about what companies you're most excited about in the portfolio and whether you would like information about those. It'll be very interesting information to us. It will be interesting information as we look forward to some of the things we're doing in the future, as well. Please, if you have a chance, go take that short survey.

謝謝，帕蒂。在我們進入問答環節之前，我們只想問幾件事，這兩件事都與您可以在我們的網站上找到的內容有關。首先，如果您訪問我們的網站，在宣布年度股東大會的圖片下方，有一個 - 您可以點擊進行一個簡短的調查。對於有興趣的人，我們很樂意邀請您參加這項調查。它可以讓您回答一些問題，例如您對投資組合中的哪些公司最感興趣，以及您是否想要了解這些公司的相關資訊。這對我們來說將是非常有趣的資訊。這將是有趣的訊息，因為我們也期待未來所做的一些事情。如果您有機會，請參加這個簡短的調查。

The second area is that we'd like to conclude by inviting you to our annual shareholder meeting on June 7, 2016, at the New York Genome Center located in New York City. The New York Genome Center could not be a more fitting center to continue our discussion of precision health and precision medicine. It is a leading center for genomic and phenotypic research in New York City.

第二個方面是，我們想最後邀請您參加我們於 2016 年 6 月 7 日在紐約市紐約基因組中心舉行的年度股東大會。紐約基因組中心是我們繼續討論精準健康和精準醫療最適合的中心。它是紐約市領先的基因組和表型研究中心。

This year we are going to do something different. We are inviting a few of our most mature companies to present for 15 to 20 minutes, with audience questions to follow. Additionally, our portfolio company, ORIG3N, will be present to draw blood -- if you so choose -- to re-create your own individualized induced pluripotent stem cells to be stored or banked for potential use in the future, and to be used to advance the science of precision health and precision medicine. We welcome you to join us and learn more about what our companies are doing to change healthcare and to advance precision medicine. Please go to our website to register and to learn more about the annual meeting.

今年我們要做一些不同的事情。我們邀請了幾家最成熟的公司進行 15 至 20 分鐘的演講，然後讓觀眾提問。此外，如果您願意的話，我們的投資組合公司 ORIG3N 將為您抽血，以重新創建您自己的個性化誘導多能幹細胞，以便儲存或儲存以備將來使用，並用於推進精準健康和精準醫療的科學。我們歡迎您加入我們，並進一步了解我們的公司為改變醫療保健和推動精準醫療所做的努力。請造訪我們的網站進行註冊並了解更多有關年會的資訊。

At this time, we would like to open up the lines to any questions. Thank you for listening to us.

現在，我們願意開放熱線來回答任何問題。感謝您的聆聽。

(Operator Instructions)

（操作員指示）

Tom Bonnavisto, Financial Consultant Group.

湯姆‧博納維斯托 (Tom Bonnavisto)，金融顧問集團。

Yes, Doug, can you give us more detail on the $5 million of debt outstanding, and what's the terms of that and so forth, what you used it for?

是的，道格，您能否向我們詳細介紹一下這筆 500 萬美元的未償債務，以及這筆債務的條款是什麼，您用它做了什麼？

Yes. Daniel, why don't I turn it over to you to talk a little bit about the details of it and then I can add in.

是的。丹尼爾，我先把它交給你，讓你稍微談論一下細節，然後我再補充一些。

Certainly. Good morning, Tom.

當然。早上好，湯姆。

The debt that we have outstanding from Oryx of $5 million, it is a term loan with a maturity date of September 30, 2017, interest only until that point in time. The interest rate is 10%.

我們欠 Oryx 的債務為 500 萬美元，這是一筆定期貸款，到期日為 2017 年 9 月 30 日，在此之前僅需支付利息。利率為10%。

So Tom, philosophically, why do we have this facility?

那麼湯姆，從哲學角度來說，我們為什麼要擁有這種設施？

I think there is a couple reasons. The first one is we are in a very risky asset class in early-stage venture capital. Our Company sometimes takes more time and more money than we predicted to get to an exit for us or require more capital than we thought on day one when invested in those companies.

我認為有幾個原因。首先，我們處於早期創投中風險極高的資產類別。我們的公司有時需要比我們預期更多的時間和金錢才能退出，或者需要比我們投資這些公司第一天時想像的更多的資本。

In a lot of respects, it is an insurance policy to make sure that, as the opportunities arise, maybe in later rounds of capital and things like that, we have the opportunity to invest if we think it's the right thing to do and to have that capital available to us. I think primarily that's the largest reason.

從很多方面來說，這是一種保險政策，以確保當機會出現時，也許在後續的融資輪次和類似情況下，如果我們認為這是正確的事情，我們就有機會進行投資，並且有足夠的資金可供使用。我認為主要是這個是最大的原因。

I'll give you plenty of examples of why we think that's important. D-wave continues to raise very large rounds of private capital. We want to be at the table.

我會給你舉出很多例子來說明我們為什麼認為這很重要。 D-wave 繼續籌集大量私人資本。我們希望坐在談判桌旁。

And other of our companies, if you looked Biovex, historically, and this predates the credit facility, the BioVex, the last two rounds of capital in that company were extremely diluted. They were cram-down rounds, so if you did not have the capital to participate in those rounds, you lost tremendously. Some of the original investors, even though that deal was worth $425 million in the first payment and a billion over time, some investors got nothing because they weren't there at the end of the day.

而我們的其他公司，如果你看一下 Biovex 的歷史，你會發現它早於信貸安排，BioVex，該公司最後兩輪資本被嚴重稀釋。這些輪融資都是強迫的，所以如果你沒有足夠的資金參與這些輪融資，你就會損失慘重。對於一些原始投資者來說，儘管這筆交易的首筆付款價值 4.25 億美元，並且隨著時間的推移價值達到 10 億美元，但一些投資者卻一無所獲，因為他們最終沒有參與其中。

I think we've always thought of it, our Board has thought of it as a insurance policy to make sure, if and when necessary, we have the capital to put in those companies. As you've seen, our balance sheet is lower than it has been historically, as well.

我想我們一直在考慮這個問題，我們的董事會也一直認為這是一項保險政策，以確保在必要時我們有足夠的資金投入這些公司。如您所見，我們的資產負債表也低於歷史水準。

If you look at the period of time from 2003 to 2009, we went out and raised equity; it was a low cost of capital to do that. Currently we don't believe that the cost of capital is worth it to go raise equity capital. Plus we are trading below NAV per share, which would extremely dilute it to our shareholders to do that even in a rights offering. So we've thought this is a lower-cost-of-capital way to give us the same insurance policy.

如果你看 2003 年到 2009 年這段時間，我們就出去籌募股權；這樣做的資本成本很低。目前，我們認為籌集股本的資本成本不值得。此外，我們的交易價格低於每股資產淨值，即使在配股的情況下這樣做也會大大稀釋我們股東的權益。因此我們認為這是一種以較低資本成本提供相同保險政策的方式。

It seems to be kind of expensive, especially since you just spent $1 million-some on buying stock back that hasn't really done us any benefit. So that's why I was asking what your thought process was toward that.

這似乎有點昂貴，特別是因為你剛剛花了 100 多萬美元回購股票，但這並沒有為我們帶來任何好處。所以這就是我詢問您對此的想法的原因。

Next question is, what do you expect out of OpGen and Enumeral? You say there's some good news on OpGen; what is the good news?

下一個問題是，您對 OpGen 和 Enumeral 有什麼期望？您說 OpGen 有一些好消息；有什麼好消息？

First of all, when there is good news that is public we will disclose it, but they are public companies and we certainly can't disclose anything ahead of them. I think, OpGen and Enumeral are very early IPOs. By taking them public early, we, in some respects, spread some of the financing risk that we would have otherwise had to bear ourselves.

首先，當有好消息公開時我們會披露，但它們是上市公司，我們當然不能在它們之前披露任何消息。我認為，OpGen 和 Enumeral 都是非常早期的 IPO。透過提前上市，我們在某種程度上分散了原本需要自己承擔的融資風險。

We thought those companies could grow in the public market. We knew they were going to be volatile, right. Again, watching the majority of the micro-cap space, it's been a really difficult time out there.

我們認為這些公司可以在公開市場上發展。我們知道他們會變得不穩定，對吧。再次觀察大多數微型股市場，我們發現這確實是一段艱難的時期。

Walking in our own private companies, sometimes looking at them at any one point in time is not a good prediction of their future return. I return to BioVex; there's a cram-down round 12 months before they get sold for $1 billion. It's a very volatile world privately and publicly.

走進我們自己的私人公司，有時在任何時間點觀察它們都無法很好地預測它們未來的回報。我回到 BioVex；在以 10 億美元的價格出售之前，需要經過 12 個月的強制收購。無論在私人領域還是公共領域，這個世界都是非常動盪的。

They are going to move up and down a little bit. In the case of OpGen, OpGen is run by a gentleman, by Evan Jones. He built Digene. He's worth more individually than we are as a firm or most firms in the deal are. He's built a lot of great companies. He sits on the board of foundation medicine.

它們會稍微上下移動。就 OpGen 而言，OpGen 由一位紳士 Evan Jones 經營。他創立了 Digene。他個人的價值比我們公司或交易中的大多數公司的價值都要高。他創建了許多偉大的公司。他是基金會醫學的董事會成員。

I think he's trying to build that company. It's going to take some time to do that. But I think over the coming months and years you're going to see that.

我認為他正在努力創建那家公司。這需要一些時間。但我認為在未來的幾個月和幾年裡你會看到這一點。

We believe that there is value. The wonderful thing about it now is it's public and the burden is not entirely on us to build. We have other partners and public market investors.

我們相信這是有價值的。現在它的奇妙之處在於它是公共的，建設的負擔並不完全落在我們身上。我們還有其他合作夥伴和公開市場投資者。

Just to also clarify, we historically have a seat on the Board of Directors of OpGen; and therefore, we, historically, have had material non-public information, which is why I can't go into more detail there. Enumeral, we actually have not been on the board for a while, but we are very encouraged by and haven't had material non-public information for a long time. But we are very encouraged by the announcements that they have been making about some of their internal programs and other efforts that, in immuno-oncology space, with potential candidates that have some very interesting activity profiles, that could be the basis for potential increases in value in the future.

還需要澄清的是，我們歷來在 OpGen 董事會中佔有一席之地；因此，從歷史上看，我們擁有重大的非公開信息，這就是我無法在此詳細說明的原因。事實上，我們已經有一段時間沒有進入董事會了，但我們非常受鼓舞，並且很長時間沒有收到重大非公開資訊。但我們對他們發布的一些內部計劃和其他努力感到非常鼓舞，他們在免疫腫瘤學領域擁有一些非常有趣的活性特徵的潛在候選藥物，這可能是未來潛在價值增長的基礎。

Tom, we're interested. It's like Adesto, happy that the IPO went out much lower than any of the comparables in the market in a rough time period, in Q4; thank God they did. I don't think they would've gotten out in Q1 2016, had they delayed it. Getting the capital to build their business was the right direction.

湯姆，我們很感興趣。就像 Adesto 一樣，很高興看到其 IPO 價格在第四季度的艱難時期內遠低於市場上任何同類公司；感謝上帝他們這麼做了。我認為，如果他們推遲的話，他們不可能在 2016 年第一季推出該產品。獲得資本來建立他們的業務是正確的方向。

It gets pushed down as it comes out of the gate, moves up into the 7, even over 8 range and then drops dramatically down to back into the 5 range and the 550 range. And all that time, Adesto keeps operating on its business and meeting its forecast. Again you see that volatility, but I'll be interested. And hopefully we're going to get a chance to come visit and sit down with you. I will be really interested in your perspective as you watch these micro-cap stocks and everything like that, how you're seeing that space and everything like that, independent of the progress going on in each of those individual companies.

它在出門時被推低，上升到 7，甚至超過 8 的範圍，然後急劇下降回到 5 的範圍和 550 的範圍。在此期間，Adesto 一直在持續經營其業務並實現其預期。您再次看到了這種波動，但我會感興趣。希望我們能有機會拜訪您並與您坐下來談談。當您關注這些微型股和類似的東西時，我會對您的觀點非常感興趣，您如何看待這個領域和類似的東西，而不考慮每個公司正在取得的進展。

Alright. We will meet with you when we come up for the annual shareholder meeting. We will talk more about these things.

好吧。我們將在召開年度股東大會時與您會面。我們將進一步討論這些事情。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions)

（操作員指示）

Daniel Jove, a private investor.

私人投資者丹尼爾喬夫 (Daniel Jove)。

Hello. Good morning.

你好。早安.

I was wondering there are two similarly sized BDCs, Full Circle Capital and Crossroads Capital, that in the last few months have announced that they're looking to liquidate:, basically close up shop. I was wondering if you could talk to issues that might be particular to the BDC industry that might--. I know that one problem for Harris & Harris is lack of scale.

我想知道有兩家規模類似的 BDC，Full Circle Capital 和 Crossroads Capital，在過去幾個月宣布他們正在尋求清算：基本上是關閉商店。 我想知道您是否可以談談 BDC 行業可能特有的問題。我知道 Harris & Harris 的一個問題是缺乏規模。

I know you couldn't speak one way or another, even if you were talking to them. Is there something about the BDC industry that makes mergers or acquisitions of another company's portfolio particularly problematic? Or are there issues that can be overcome? I was wondering if you could comment on that.

我知道你不能以任何方式說話，即使你在和他們說話。 BDC 產業是否存在某些問題，使得與其他公司的投資組合進行合併或收購變得特別困難？或是有哪些問題可以克服？我想知道您是否可以對此發表評論。

Happy to do so. And Dan, you can follow me and add on anything, as well. First of all, if we had to talk about issues in the BDC space, we could probably spend the next 3 or 4 hours doing such.

很高興這麼做。丹，你也可以關注我並添加任何內容。首先，如果我們必須討論 BDC 領域的問題，我們可能需要花接下來的 3 到 4 個小時來討論。

To your specific question. I think probably--. I agree. I think scale is really important in this space, currently. I think you have to be careful when you talk about the BDC space, Daniel. You understand this, I think, from your question, but others.

對於您的具體問題。我認為可能——。我同意。我認為目前在這個領域規模非常重要。丹尼爾，我認為你在談論 BDC 空間時必須小心。我想，從你的問題中你明白了這一點，但其他人卻不明白。

There are the debt players, mezzanine debt players and there are a few equity players. And they are very different businesses. But I think, even in the equity side, you need some scale at this point in time, from an expense perspective, from a regulatory perspective; and just because, I think, investors are demanding that type of scale.

其中有債務參與者、夾層債務參與者，還有少數股權參與者。而且它們是截然不同的業務。但我認為，即使在股權方面，從費用角度和監管角度來看，此時你也需要一定的規模；我認為，這只是因為投資者需要這種規模。

I think the hardest thing is that, unlike us, many of the BDCs are externally managed. They're not employees of the BDC; they're their own management company managing those assets. They have 2 in 20 and so doing something, they control it and they lose some of that control.

我認為最困難的是，與我們不同，許多 BDC 都是外部管理的。他們不是 BDC 的員工；他們有自己的管理公司來管理這些資產。他們有 20 分之 2 的機率，所以在做某事時，他們控制了它，然後又失去了一些控制。

I think that internally managed, from my perspective, if you could bring a couple of the internally-managed BDCs together and the portfolios were synergistic and you believe that the quality of the investments were good in each of them, I think you it is a good way to reduce expenses, get some scale and be more viable in the space. I don't think we've hid this.

我認為，從我的角度來看，內部管理如果您可以將幾個內部管理的 BDC 整合在一起，並且投資組合具有協同作用，並且您相信每個投資的質量都很好，那麼我認為這是一種減少開支、擴大規模並在該領域更具可行性的好方法。我認為我們沒有隱瞞這件事。

Our Board has spent some time looking for alternatives over the year of starting in 2014 and 2015. One of the issues we talked about a lot is scale. I can tell you that, at least to date, there hasn't been an opportunity that we thought really made a lot of sense and implemented conversations with -- for our shareholders. But we continue to be open to those conversations.

從 2014 年到 2015 年間，我們的董事會花了一些時間尋找替代方案。我們經常討論的問題之一就是規模。我可以告訴你，至少到目前為止，我們還沒有發現一個對股東真正有意義的機會，也沒有與股東進行對話。但我們仍然對這些對話持開放態度。

The other thing I'd say is there's just not a lot of equity BDCs. There is GSV Capital; there is Firsthand, FVBC. There was Keating, which is this Crossroad, as you talked about before that we had actually done a lot of investments with when they were still doing equity. They invested in multiple of our portfolio companies at later stage than we did; we introduced them to it. We liked having them as a partner in this space and I knew Tim Keating very well.

我想說的另一件事是，股權 BDC 並不多。 有GSV Capital；有 Firsthand、FVBC。正如您之前提到的，當 Keating 仍在進行股權投資時，我們實際上已經對 Crossroad 進行了大量投資。他們比我們更晚地投資了我們投資組合中的多家公司；我們向他們介紹了它。我們很高興他們成為這個領域的合作夥伴，而且我非常了解提姆·基廷。

It'll be interesting. But right now most of them are externally managed and the interest level and doing something else, I think, has not come to the forefront. But there are some and there are some that are looking both at the debt groups that are looking out at equity now. I do think, over the coming year, there may be some opportunities, and I think there probably will be some consolidation in the BDC space.

這會很有趣。但目前大多數都是外部管理的，我認為興趣程度和做其他事情還沒有成為焦點。但有些人既關注債務集團，也關注股權集團。我確實認為，在未來的一年裡，可能會有一些機會，我認為 BDC 領域可能會出現一些整合。

That would be good to see. Just quickly, last summer you filed a shelf registration, I assume, that's in effect now?

看到這個就太好了。簡單說一下，去年夏天您提交了一份擱置登記，我猜現在生效了？

It's actually not. We do a couple things just to be very clear on that. It's really just because of the regulatory structure and the time necessary to move through the SEC. We do a couple things.

但實際上並非如此。我們做了幾件事來明確這一點。這實際上只是因為監管結構和通過美國證券交易委員會所需的時間。我們做了幾件事。

First, we did file an entry registration statement; that would give us the ability to raise capital in the future. We trade below NAV per share, so, logically, that would have to be a rights offering. We've done that historically; we started doing it again, more than anything just to have the option available to us. At this point in time, currently, we don't have any plans to do a rights offering; that may change into the future.

首先，我們確實提交了入境登記聲明；這將使我們在未來有能力籌集資金。我們的交易價格低於每股資產淨值，因此，從邏輯上講，這必須是配股。我們在歷史上就這麼做了；我們又開始這麼做了，主要是為了提供我們更多的選擇。目前，我們還沒有任何配股計劃；未來可能會發生變化。

But we wanted to be ready, because they take a long, long time to get through the SEC. There is a lot of questions and this market, as you probably know, you've got to be nimble. When the volatility decreases, you've got to be ready; and if you've got to wait 6 to 8 months to get through the SEC, you'll lose your opportunity.

但我們希望做好準備，因為他們需要很長時間才能通過美國證券交易委員會 (SEC) 的審查。有很多問題，這個市場，正如你可能知道的，你必須靈活。當波動性降低時，你必須做好準備；如果你必須等待 6 到 8 個月才能通過美國證券交易委員會 (SEC) 的審核，你就會失去機會。

The second thing we did, which again, if you're reading these things carefully, we also announced again the ability to do a buyback. Again it's the same thing, you have to announce that every six months; you have to do it in a filing that goes to all shareholders. You can't send out an email. You can't put it up on your website. So the logical thing to do is to put it in your annual shareholder financials which gets mailed to all the shareholders with the proxy. So we did that as well.

我們做的第二件事，如果你仔細閱讀這些內容，我們也再次宣布了回購的能力。同樣，你必須每六個月宣布一次；你必須在發給所有股東的文件中這樣做。您無法傳送電子郵件。您不能將其發佈到您的網站上。因此，合理的做法是將其放入年度股東財務報表中，並透過代理郵寄給所有股東。所以我們也這麼做了。

All we're doing is keeping our options open. Again, there's no immediate plans for either at the moment.

我們所做的只是保持我們的選擇開放。再次強調，目前這兩項計畫都尚未推出。

Okay. Great thank you. Again, I realize you're limited on what you can say. In terms of D-Wave and the potential for an IPO, down the road, I assume the market or whoever is making that decision, does Goldman Sachs own the largest share of D-Wave right now?

好的。非常感謝。再次，我意識到你能說的話是有限的。就 D-Wave 及其未來 IPO 的可能性而言，我認為市場或做出這項決定的人，高盛現在是否擁有 D-Wave 的最大股份？

Goldman Sachs is a large investor in D-Wave. Again, I think we all-- we have an adage that says he who has the gold makes the rules. No they don't have control to make that decision. They are a member of the board.

高盛是 D-Wave 的大型投資者。再說一次，我想我們都有一句諺語說，誰有黃金誰就制定規則。不，他們沒有權力做出這個決定。他們是董事會成員。

Actually Harris & Harris Group sits on the board of D-Wave, where we're the smallest investment, has a board seat; but we've been involved in that company for a long, long time and our knowledge of the quantum-computing space in that market is, I think, valuable to the Company.

實際上，Harris & Harris Group 是 D-Wave 的董事會成員，我們是該公司最小的投資方，但也擁有一個董事會席位；但我們參與該公司已經很長時間了，我認為我們對該市場量子計算領域的了解對公司來說非常有價值。

There a lot of large investors in that company. D-Wave has had the ability to raise private capital and so they have taken that opportunity to raise private capital. I think they believe they'd be in a better position being a larger company in the public markets rather than a smaller company in doing that.

該公司有很多大投資者。 D-Wave 有能力籌集私人資本，因此他們抓住這個機會籌集私人資本。我認為他們相信，作為一家大型公司在公開市場上比作為一家小型公司更有優勢。

We certainly believe that their story would resonate very well publicly. There certainly is a conversation going on at the board about being public and the timing for that in preparing for that; but I can't speak to the exact time publicly, at this point in time.

我們堅信他們的故事會引起大眾的強烈共鳴。董事會確實正在討論公開上市以及為此做準備的時機；但目前我還不能公開透露具體時間。

Of course. Last question. I appreciate you taking the time to answer all these questions.

當然。最後一個問題。感謝您抽出時間回答所有這些問題。

Is it Magic Leap?

它是 Magic Leap 嗎？

Magic Leap. More phone calls on Magic Leap than they do an anything else in the portfolio.

魔法飛躍。有關 Magic Leap 的電話比他們產品組合中的任何其他產品都多。

In their latest round of fundraising, about, was it a month or two ago? Did Harris & Harris invest in that?

他們最近一輪融資大概是在一兩個月前？ Harris & Harris 對此進行了投資嗎？

We did not invest in that. We weren't even given the opportunity to invest in that. I think, there's not a lot we can say about Magic Leap. We are very, very restricted by the company.

我們沒有對此進行投資。我們甚至沒有機會投資這一點。我認為，關於 Magic Leap 我們能說的並不多。我們受到公司的極大限制。

In fact, we're probably one of the only groups that can say anything and that's because we're public, so we have to. We have to be able to list it in our consolidated schedule of investments and things like that. So, there is very little; we are pleased to be an investor or shareholder in Magic Leap, but there's not anything else we can say.

事實上，我們可能是唯一可以發表任何言論的團體之一，因為我們是公開的，所以我們必須這樣做。我們必須能夠將其列在我們的綜合投資計劃和類似計劃中。所以，很少；我們很高興成為 Magic Leap 的投資者或股東，但我們沒有什麼可說的。

Sure. Okay. Thank you very much for your answers and good luck. I appreciate that you're doing your best to increase shareholder value in a very difficult environment for a quite long period.

當然。好的。非常感謝您的回答並祝您好運。我很欣賞您在相當長的一段時間內在非常困難的環境中竭盡全力提高股東價值。

Thank you very much.

非常感謝。

That concludes our question-and-answer session for today. I would like to turn the conference back over to Doug Jamison for any closing comments.

今天的問答環節到此結束。我想將會議交還給 Doug Jamison 做最後的總結發言。

Thank you very much. Thank you all for joining today.

非常感謝。感謝大家今天的參與。

Again, please come out to the annual shareholder meeting. It's very different than other annual shareholder meetings; it is almost like a meet-the-portfolio company.

再次，請大家出席年度股東大會。它與其他年度股東大會非常不同；它幾乎就像是一家投資組合公司。

We want you to be able to interact. We certainly want to be able to interact with you. Feel free to give us a call and talk to us about our business. We are trying to be open and transparent; we're trying to do some things that can really grow value for the shareholders.

我們希望您能夠進行互動。我們當然希望能夠與您互動。請隨時打電話給我們並與我們討論我們的業務。我們正在努力做到開放和透明；我們正在嘗試做一些能夠真正為股東創造價值的事情。

We have a lot of individual shareholders; but, over the last year, we have really built a really nice small set of institutional investors that have gotten more interested and active in the Company. Just to let you all know, one, we appreciate it; two, we are always open to conversations. You have information and knowledge and ways of thinking that can certainly help us as well.

我們有很多個人股東；但是，在過去的一年裡，我們確實建立了一個非常好的機構投資者小群體，他們對公司的興趣越來越濃厚，也越來越活躍。只是想讓大家知道，第一，我們很感激；二、我們始終願意進行對話。您擁有的資訊、知識和思維方式肯定也能幫助我們。

I'd like conclude with a couple things. There's always a few guiding principles that guide us at Harris & Harris Group. One, we want to work with good people. Life is short; you want to work with good people. Charlie Harris always had an adage that you can't do good business with bad people. That is important to us; it's important with our portfolio companies, with our CEOs, with the other investors we work with.

我想用幾件事來結束我的演講。在 Harris & Harris Group，我們總是遵循一些指導原則。第一，我們想和優秀的人一起工作。生命短暫；你想和優秀的人一起工作。查理哈里斯 (Charlie Harris) 總是有一句格言：和壞人做不成好生意。這對我們很重要；這對我們的投資組合公司、我們的執行長以及與我們合作的其他投資者來說都很重要。

Two, we tend to take the long view. Someone argued that, when does the long view end? They've been in our stock for a while, but we do take the long view.

二、我們傾向於從長遠角度來考慮問題。有人爭辯說，長遠眼光何時終結？它們在我們的庫存中已有一段時間了，但我們確實著眼於長遠。

Three, really interested in best-in-class compliance. Compliance is something that can trip you up before you ever get to reach your potential, so we take it seriously.

第三，真正對一流的合規性感興趣。合規性可能會在您發揮潛力之前就給您帶來阻礙，因此我們對此非常重視。

And four, operational excellence. I just want to comment on that last point. I have to, following the filing of the financials and the audit each year, we have a seven-person team at Harris & Harris Group, full-time, seven people in the Company, one part-time.

第四，卓越營運。我只想對最後一點發表評論。我必須這樣做，在每年提交財務報表和審計報告之後，我們在 Harris & Harris 集團有一個七人團隊，全職，公司內有七人，還有一人兼職。

That's a small group to file your financials and get them out the door. It is a group of operational excellence. You have people like Patty and Mary on our team that drive that process. You have Patty, Daniel and Blake on the valuation side. You have Jackie and Carmen that get all this information out and they really do a spectacular job for a seven-person firm doing an audit for a public company in this day and age. They are the force behind Harris & Harris Group, so we are very, very appreciative to them.

這是一個負責歸檔您的財務報表並將其發送到國外的小組。這是一支營運卓越的團隊。我們團隊中有像帕蒂和瑪麗這樣的人推動這項進程。估值方面有 Patty、Daniel 和 Blake。傑基和卡門將所有這些資訊都收集了起來，在當今這個時代，對於一個只有七名員工的公司來說，他們確實做得非常出色，能夠為一家上市公司進行審計。他們是 Harris & Harris Group 背後的力量，因此我們非常非常感謝他們。

With that, I will say thank you to you all. Please keep up; please keep coming to our website; follow what is happening; and if ever you have questions, please address them to us. Thank you.

最後，我要向大家表達感謝。請繼續；請繼續訪問我們的網站；關注正在發生的事情；如果您有任何疑問，請向我們提出。謝謝。

Thank you. Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program and you may log off and disconnect. Everyone have a good day.

謝謝。女士們、先生們，感謝各位參加今天的會議。這確實結束了程序，您可以登出並斷開連接。祝大家有個愉快的一天。