| General
|
|
|
|
|
|
|
|
|
September 30, 2013 | December 31, 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Fair value | $ | 14,560 | $ | 20,972 | |||
Equity Method: | |||||||
Partner companies | 108,249 | 102,931 | |||||
Private equity funds | 3,606 | 3,810 | |||||
111,855 | 106,741 | ||||||
Cost Method: | |||||||
Partner companies | 12,530 | 10,000 | |||||
Private equity funds | 2,518 | 2,634 | |||||
15,048 | 12,634 | ||||||
Advances to partner companies | 1,585 | 8,292 | |||||
$ | 143,048 | $ | 148,639 | ||||
Loan participations receivable | $ | 8,279 | $ | 7,085 | |||
Available-for-sale securities | $ | 32 | $ | 58 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Results of Operations: | |||||||
Revenue | $ | 800 | $ | 569 | |||
Operating loss | $ | (12,219 | ) | $ | (16,172 | ) | |
Net loss | $ | (14,838 | ) | $ | (16,925 | ) |
|
|
Carrying Value | Fair Value Measurement at September 30, 2013 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
Cash and cash equivalents | $ | 108,694 | $ | 108,694 | $ | — | $ | — | |||||||
Restricted marketable securities | 5 | 5 | — | — | |||||||||||
Ownership interest in common stock of NuPathe | 12,437 | 12,437 | — | — | |||||||||||
Ownership interest in warrants and options of NuPathe | 2,123 | — | — | 2,123 | |||||||||||
Available-for-sale securities | 32 | 32 | — | — | |||||||||||
Warrant participations | 417 | — | — | 417 | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Commercial paper | $ | 23,749 | $ | 23,749 | $ | — | $ | — | |||||||
U.S. Treasury Bills | 16,181 | 16,181 | — | — | |||||||||||
Government agency bonds | 2,645 | 2,645 | — | — | |||||||||||
Certificates of deposit | 14,849 | 14,849 | — | — | |||||||||||
Total marketable securities | $ | 57,424 | $ | 57,424 | $ | — | $ | — |
Carrying Value | Fair Value Measurement at December 31, 2012 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
Cash and cash equivalents | $ | 66,029 | $ | 66,029 | $ | — | $ | — | |||||||
Cash held in escrow | 6,434 | 6,434 | — | — | |||||||||||
Restricted marketable securities | 10 | 10 | — | — | |||||||||||
Ownership interest in common stock of NuPathe | 8,897 | 8,897 | — | — | |||||||||||
Ownership interest in preferred stock, warrants and options of NuPathe | 12,075 | — | — | 12,075 | |||||||||||
Available-for-sale securities | 58 | 58 | — | — | |||||||||||
Warrant participations | 423 | — | — | 423 | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Commercial paper | $ | 50,932 | $ | 50,932 | $ | — | $ | — | |||||||
U.S. Treasury Bills | 21,352 | 21,352 | — | — | |||||||||||
Government agency bonds | 45,909 | 45,909 | — | — | |||||||||||
Certificates of deposit | 21,823 | 21,823 | — | — | |||||||||||
Total marketable securities | $ | 140,016 | $ | 140,016 | $ | — | $ | — |
|
September 30, 2013 | December 31, 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Convertible senior debentures due 2018 | $ | 49,221 | $ | 48,483 | |||
Convertible senior debentures due 2014 | 29 | 67 | |||||
Convertible senior debentures due 2024 | 441 | 441 | |||||
49,691 | 48,991 | ||||||
Less: current portion | (470 | ) | — | ||||
Convertible senior debentures – non current | $ | 49,221 | $ | 48,991 |
• | during any calendar quarter commencing after the calendar quarter ending on December 31, 2012, if the last reported sale price of the common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; |
• | during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on such trading day; |
• | if the notes have been called for redemption; or |
• | upon the occurrence of specified corporate events. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
General and administrative expense | $ | 510 | $ | 317 | $ | 1,808 | $ | 1,546 | |||||||
$ | 510 | $ | 317 | $ | 1,808 | $ | 1,546 |
1) | market–based; |
2) | performance-based; and |
3) | service-based. |
|
|
Healthcare | |||
Partner Company | Safeguard Primary Ownership as of September 30, 2013 | Accounting Method | |
AdvantEdge Healthcare Solutions, Inc. | 40.2% | Equity | |
Alverix, Inc. | 49.2% | Equity | |
Crescendo Bioscience, Inc. | 12.6% | Cost | |
Good Start Genetics, Inc. | 30.0% | Equity | |
Medivo, Inc. | 34.5% | Equity | |
NovaSom, Inc. | 30.3% | Equity | |
NuPathe Inc. | 16.5% | Fair value (1) | |
PixelOptics, Inc. | 24.6% | Equity | |
Putney, Inc. | 27.6% | Equity | |
Quantia, Inc. | 34.4% | Equity | |
Sotera Wireless, Inc. | 7.4% | Cost |
Technology | |||
Partner Company | Safeguard Primary Ownership as of September 30, 2013 | Accounting Method | |
AppFirst, Inc. | 34.5% | Equity | |
Beyond.com, Inc. | 38.2% | Equity | |
Bridgevine, Inc. | 22.7% | Equity | |
Clutch Holdings, Inc. | 24.0% | Equity | |
DriveFactor, Inc. | 40.6% | Equity | |
Hoopla Software, Inc. | 25.3% | Equity | |
Lumesis, Inc. | 44.2% | Equity | |
MediaMath, Inc. | 22.5% | Equity | |
Pneuron Corporation | 27.6% | Equity | |
Spongecell, Inc. | 23.0% | Equity | |
ThingWorx, Inc. | 39.8% | Equity |
|
|
September 30, 2013 | December 31, 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Fair value | $ | 14,560 | $ | 20,972 | |||
Equity Method: | |||||||
Partner companies | 108,249 | 102,931 | |||||
Private equity funds | 3,606 | 3,810 | |||||
111,855 | 106,741 | ||||||
Cost Method: | |||||||
Partner companies | 12,530 | 10,000 | |||||
Private equity funds | 2,518 | 2,634 | |||||
15,048 | 12,634 | ||||||
Advances to partner companies | 1,585 | 8,292 | |||||
$ | 143,048 | $ | 148,639 | ||||
Loan participations receivable | $ | 8,279 | $ | 7,085 | |||
Available-for-sale securities | $ | 32 | $ | 58 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Results of Operations: | |||||||
Revenue | $ | 800 | $ | 569 | |||
Operating loss | $ | (12,219 | ) | $ | (16,172 | ) | |
Net loss | $ | (14,838 | ) | $ | (16,925 | ) |
|
Carrying Value | Fair Value Measurement at September 30, 2013 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
Cash and cash equivalents | $ | 108,694 | $ | 108,694 | $ | — | $ | — | |||||||
Restricted marketable securities | 5 | 5 | — | — | |||||||||||
Ownership interest in common stock of NuPathe | 12,437 | 12,437 | — | — | |||||||||||
Ownership interest in warrants and options of NuPathe | 2,123 | — | — | 2,123 | |||||||||||
Available-for-sale securities | 32 | 32 | — | — | |||||||||||
Warrant participations | 417 | — | — | 417 | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Commercial paper | $ | 23,749 | $ | 23,749 | $ | — | $ | — | |||||||
U.S. Treasury Bills | 16,181 | 16,181 | — | — | |||||||||||
Government agency bonds | 2,645 | 2,645 | — | — | |||||||||||
Certificates of deposit | 14,849 | 14,849 | — | — | |||||||||||
Total marketable securities | $ | 57,424 | $ | 57,424 | $ | — | $ | — |
Carrying Value | Fair Value Measurement at December 31, 2012 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
Cash and cash equivalents | $ | 66,029 | $ | 66,029 | $ | — | $ | — | |||||||
Cash held in escrow | 6,434 | 6,434 | — | — | |||||||||||
Restricted marketable securities | 10 | 10 | — | — | |||||||||||
Ownership interest in common stock of NuPathe | 8,897 | 8,897 | — | — | |||||||||||
Ownership interest in preferred stock, warrants and options of NuPathe | 12,075 | — | — | 12,075 | |||||||||||
Available-for-sale securities | 58 | 58 | — | — | |||||||||||
Warrant participations | 423 | — | — | 423 | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Commercial paper | $ | 50,932 | $ | 50,932 | $ | — | $ | — | |||||||
U.S. Treasury Bills | 21,352 | 21,352 | — | — | |||||||||||
Government agency bonds | 45,909 | 45,909 | — | — | |||||||||||
Certificates of deposit | 21,823 | 21,823 | — | — | |||||||||||
Total marketable securities | $ | 140,016 | $ | 140,016 | $ | — | $ | — |
|
September 30, 2013 | December 31, 2012 | ||||||
(In thousands) (Unaudited) | |||||||
Convertible senior debentures due 2018 | $ | 49,221 | $ | 48,483 | |||
Convertible senior debentures due 2014 | 29 | 67 | |||||
Convertible senior debentures due 2024 | 441 | 441 | |||||
49,691 | 48,991 | ||||||
Less: current portion | (470 | ) | — | ||||
Convertible senior debentures – non current | $ | 49,221 | $ | 48,991 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) (Unaudited) | |||||||||||||||
General and administrative expense | $ | 510 | $ | 317 | $ | 1,808 | $ | 1,546 | |||||||
$ | 510 | $ | 317 | $ | 1,808 | $ | 1,546 |
|
Healthcare | |||
Partner Company | Safeguard Primary Ownership as of September 30, 2013 | Accounting Method | |
AdvantEdge Healthcare Solutions, Inc. | 40.2% | Equity | |
Alverix, Inc. | 49.2% | Equity | |
Crescendo Bioscience, Inc. | 12.6% | Cost | |
Good Start Genetics, Inc. | 30.0% | Equity | |
Medivo, Inc. | 34.5% | Equity | |
NovaSom, Inc. | 30.3% | Equity | |
NuPathe Inc. | 16.5% | Fair value (1) | |
PixelOptics, Inc. | 24.6% | Equity | |
Putney, Inc. | 27.6% | Equity | |
Quantia, Inc. | 34.4% | Equity | |
Sotera Wireless, Inc. | 7.4% | Cost |
Technology | |||
Partner Company | Safeguard Primary Ownership as of September 30, 2013 | Accounting Method | |
AppFirst, Inc. | 34.5% | Equity | |
Beyond.com, Inc. | 38.2% | Equity | |
Bridgevine, Inc. | 22.7% | Equity | |
Clutch Holdings, Inc. | 24.0% | Equity | |
DriveFactor, Inc. | 40.6% | Equity | |
Hoopla Software, Inc. | 25.3% | Equity | |
Lumesis, Inc. | 44.2% | Equity | |
MediaMath, Inc. | 22.5% | Equity | |
Pneuron Corporation | 27.6% | Equity | |
Spongecell, Inc. | 23.0% | Equity | |
ThingWorx, Inc. | 39.8% | Equity |
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Healthcare | Technology | Penn Mezzanine | Total Segments | Other Items | Total | ||||||||||||||||||
(In thousands) (Unaudited) | |||||||||||||||||||||||
Operating loss | $ | — | $ | — | $ | (4 | ) | $ | (4 | ) | $ | (4,831 | ) | $ | (4,835 | ) | |||||||
Interest income | — | — | 394 | 394 | 178 | 572 | |||||||||||||||||
Equity income (loss) | (6,553 | ) | (3,490 | ) | (92 | ) | (10,135 | ) | 269 | (9,866 | ) | ||||||||||||
Net income (loss) | (11,325 | ) | (3,490 | ) | 845 | (13,970 | ) | (5,460 | ) | (19,430 | ) | ||||||||||||
Segment Assets: | |||||||||||||||||||||||
September 30, 2013 | 72,563 | 64,393 | 12,873 | 149,829 | 171,914 | 321,743 | |||||||||||||||||
December 31, 2012 | 83,500 | 58,753 | 12,153 | 154,406 | 219,738 | 374,144 |
Three months ended September 30, 2012 | |||||||||||||||||||||||
Healthcare | Technology | Penn Mezzanine | Total Segments | Other Items | Total | ||||||||||||||||||
(In thousands) (Unaudited) | |||||||||||||||||||||||
Operating loss | $ | — | $ | — | $ | (2 | ) | $ | (2 | ) | $ | (4,788 | ) | $ | (4,790 | ) | |||||||
Interest income | — | — | 322 | 322 | 374 | 696 | |||||||||||||||||
Equity income (loss) | (5,727 | ) | 2,508 | (72 | ) | (3,291 | ) | (2 | ) | (3,293 | ) | ||||||||||||
Net income (loss) | (5,811 | ) | 2,508 | 423 | (2,880 | ) | (5,877 | ) | (8,757 | ) |
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Healthcare | Technology | Penn Mezzanine | Total Segments | Other Items | Total | ||||||||||||||||||
(In thousands) (Unaudited) | |||||||||||||||||||||||
Operating loss | $ | — | $ | — | $ | (13 | ) | $ | (13 | ) | $ | (16,911 | ) | $ | (16,924 | ) | |||||||
Interest income | — | — | 1,118 | 1,118 | 978 | 2,096 | |||||||||||||||||
Equity income (loss) | (27,303 | ) | (7,990 | ) | (256 | ) | (35,549 | ) | 296 | (35,253 | ) | ||||||||||||
Net income (loss) | (33,665 | ) | (7,990 | ) | 1,173 | (40,482 | ) | (19,010 | ) | (59,492 | ) |
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Healthcare | Technology | Penn Mezzanine | Total Segments | Other Items | Total | ||||||||||||||||||
(In thousands) (Unaudited) | |||||||||||||||||||||||
Operating loss | $ | — | $ | — | $ | (6 | ) | $ | (6 | ) | $ | (14,675 | ) | $ | (14,681 | ) | |||||||
Interest income | — | — | 1,170 | 1,170 | 1,020 | 2,190 | |||||||||||||||||
Equity income (loss) | (20,886 | ) | 1,463 | (260 | ) | (19,683 | ) | (5 | ) | (19,688 | ) | ||||||||||||
Net income (loss) | (11,991 | ) | 1,463 | 340 | (10,188 | ) | (18,366 | ) | (28,554 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|