As filed with the Securities and Exchange Commission on July 20, 2015


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY




Investment Company Act file number:   811-09447



Jacob Funds Inc.
(Exact name of registrant as specified in charter)



c/o Jacob Asset Management of New York LLC
653 Manhattan Beach Blvd. #J
Manhattan Beach, CA 90266
(Address of principal executive offices) (Zip code)



Ryan Jacob
c/o Jacob Asset Management of New York LLC
653 Manhattan Beach Blvd. #J
Manhattan Beach, CA 90266
(Name and address of agent for service)



(424) 237-2164
Registrant's telephone number, including area code



Date of fiscal year end: August 31, 2015


Date of reporting period:   May 31, 2015
 
 
 

 
 
Item 1. Schedule of Investments.
 
Jacob Internet Fund
     
Schedule of Investments
     
May 31, 2015 (Unaudited)
     
       
Shares
       
Value
 
     
COMMON STOCKS - 93.4%
     
     
Internet - Commerce - 12.4%
     
  2,900    
Amazon.com, Inc. *
  $ 1,244,767  
  310,000    
E-House (China) Holdings Ltd. - ADR ^
    1,723,600  
  8,500    
Expedia, Inc.
    911,710  
  32,226    
Shutterfly, Inc. *
    1,498,509  
              5,378,586  
       
Internet - Infrastructure -38.7%
       
  12,000    
Apple Computer, Inc.
    1,563,360  
  69,000    
Castlight Health, Inc. *
    602,370  
  56,800    
CEVA, Inc. *
    1,166,672  
  37,100    
Cvent, Inc. *
    977,956  
  248,000    
Digital Turbine Inc. *
    1,036,640  
  17,200    
Ellie Mae, Inc. *
    1,087,384  
  189,246    
Immersion Corp. *
    2,287,984  
  37,981    
LogMeIn, Inc. *
    2,410,654  
  470,000    
Mitek Systems, Inc. *
    1,551,000  
  98,563    
Numerex Corp. *
    843,699  
  37,400    
Rally Software Development Corp. *
    726,308  
  18,000    
Red Hat, Inc. *
    1,390,860  
  15,600    
Salesforce.com, Inc. *
    1,134,900  
              16,779,787  
       
Internet - Media - 42.3%
       
  20,600    
Facebook, Inc. *
    1,631,314  
  3,050    
Google Inc. *
    1,622,936  
  198,084    
Jiayuan.com International Ltd. - ADR ^
    1,838,220  
  6,400    
LinkedIn Corp. *
    1,247,552  
  76,000    
Pandora Media, Inc. *
    1,418,920  
  40,400    
SINA Corp. *^
    1,645,492  
  85,000    
Tencent Holdings Ltd.
    1,695,148  
  23,400    
TripAdvisor, Inc. *
    1,784,484  
  42,400    
Twitter, Inc. *
    1,554,808  
  38,874    
Yahoo! Inc. *
    1,669,055  
  46,750    
Yelp Inc. *
    2,239,792  
              18,347,721  
                 
       
TOTAL COMMON STOCKS (Cost $27,369,463)
    40,506,094  
                 
       
SHORT TERM INVESTMENT - 7.1%
       
       
Money Market Fund - 7.1%
       
  3,093,781    
Fidelity Government Portfolio-Class I, 0.01% (a)
    3,093,781  
       
TOTAL SHORT TERM INVESTMENT (Cost $3,093,781)
    3,093,781  
                 
       
TOTAL INVESTMENTS (Cost $30,463,244) - 100.5%
    43,599,875  
       
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)%
    (198,292 )
       
TOTAL NET ASSETS - 100.0%
  $ 43,401,583  
   
                 
     
Non Income Producing.
       
     
 ADR 
American Depositary Receipt.
       
     
U.S. Dollar-denominated foreign security.
       
     
(a) 
7 - day yield
       
 
 
 

 
 
Jacob Internet Fund Summary of Fair Value Exposure
             
Investment securities traded on a national securities exchange are valued at their market value determined by their last sales price in the principal market in which these securities are normally traded  (except those traded on the NASDAQ National Market and Capital Market exchanges which are valued at the NASDAQ Official Closing Price (“NOCP”)), unless there are no transactions on the valuation date, in which case they are valued at the mean between the closing bid and ask prices. Securities traded over-the-counter are valued at the last reported sales price unless there is no reported sales price,  in which case the mean between the closing bid and ask prices is used.  Foreign securities, currencies and other assets denominated in foreign currencies are translated into U.S. dollars at at the exchange rate of such currencies. Foreign equity securities are valued at the last sale price at the close of the exchange on which the security is principally traded. Debt securities with maturities of 60 days or less are valued at amortized cost, which approximates market value. Short-term securities with 60 days or less remaining to maturity are, unless conditions indicate otherwise, amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, based on the value determined on the 61st day.  If amortized cost does not approximate fair value, short-term securities are reported at fair value. Where market quotations are not readily available, are unreliable or when values have been materially affected by events occurring before the close of U.S. markets but after the close of the securities’ primary markets, securities are valued at fair value using procedures approved by the Board of Directors that are designed to determine a security’s fair value .
               
The Fund adheres to fair valuation accounting standards which provide an authoritative definition of fair value and sets out a hierarchy for measuring fair value. These standards require disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
Various inputs are used in determining the value of the Internet Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - 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 on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Internet Fund's investments as of May 31, 2015:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
 Common Stock
                       
 Internet - Commerce
  $ 5,378,586     $ -     $ -     $ 5,378,586  
 Internet - Infrastructure
    16,779,787       -       -       16,779,787  
 Internet - Media
    16,652,573       1,695,148       -       18,347,721  
 Total Common Stock
    38,810,946       1,695,148       -       40,506,094  
                                 
 Short Term Investment
                               
 Money Market Fund
    3,093,781       -       -       3,093,781  
                                 
 Total Investments in Securities
  $ 41,904,727     $ 1,695,148     $ -     $ 43,599,875  

* There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period, as compared to their classification from the most recent annual report.
 
 
 

 
 
Jacob Small Cap Growth Fund
     
Schedule of Investments
     
May 31, 2015 (Unaudited)
     
       
Shares
       
Value
 
     
COMMON STOCKS - 99.8%
     
     
Biotech & Pharmaceuticals - 26.2%
     
  68,400    
Array BioPharma Inc. *
  $ 523,260  
  10,700    
Celldex Therapeutics, Inc. *
    308,909  
  27,851    
Cempra, Inc. *
    1,022,410  
  14,800    
Esperion Therapeutics, Inc. *
    1,591,148  
  38,600    
Omeros Corp. *
    766,210  
  8,000    
Pacira Pharmaceuticals, Inc. *
    625,680  
  24,000    
Tetraphase Pharmaceuticals, Inc. *
    1,029,120  
  33,500    
Theravance Biopharma, Inc. *^
    467,325  
              6,334,062  
       
Energy - Exploration & Production - 6.7%
       
  4,500    
Carrizo Oil & Gas, Inc. *
    225,720  
  10,300    
Matador Resources Co. *
    283,662  
  133,000    
Penn Virginia Corp. *
    618,450  
  97,750    
Triangle Petroleum Corp. *
    501,457  
              1,629,289  
       
Financial - 3.7%
       
  57,800    
HomeTrust Bancshares, Inc. *
    894,744  
                 
       
Industrial - 9.6%
       
  63,800    
CECO Environmental Corp.
    724,130  
  51,400    
MasTec, Inc. *
    907,724  
  14,000    
XPO Logistics, Inc. *
    688,240  
              2,320,094  
       
Medical Devices - 5.9%
       
  34,000    
Intersect ENT, Inc. *
    807,160  
  270,600    
TearLab Corp. *
    625,086  
              1,432,246  
       
Retail & Restaurants - 6.8%
       
  312,450    
Pacific Sunwear of California, Inc. *
    484,298  
  54,200    
Rave Restaurant Group, Inc. *
    706,226  
  12,400    
Steven Madden, Ltd. *
    468,472  
              1,658,996  
       
Technology-Hardware - 2.7%
       
  31,300    
CEVA, Inc. *
    642,902  
                 
       
Technology-Software & Services - 38.2%
       
  38,500    
Castlight Health, Inc. *
    336,105  
  19,200    
Cvent, Inc. *
    506,112  
  175,000    
E-House (China) Holdings Ltd. - ADR ^
    973,000  
  9,600    
Ellie Mae, Inc. *
    606,912  
  90,029    
Immersion Corp. *
    1,088,451  
  19,525    
LogMeIn, Inc. *
    1,239,252  
  54,632    
Numerex Corp. *
    467,650  
  40,800    
Pandora Media, Inc. *
    761,736  
 
 
 

 
 
  15,500    
Rally Software Development Corp. *
    301,010  
  17,833    
Shutterfly, Inc. *
    829,234  
  22,400    
SINA Corp. *^
    912,352  
  25,850    
Yelp Inc. *
    1,238,473  
              9,260,287  
       
TOTAL COMMON STOCKS (Cost $20,384,160)
    24,172,620  
                 
       
SHORT TERM INVESTMENT - 0.5%
       
       
Money Market Fund - 0.5%
       
  120,649    
Fidelity Government Portfolio-Class I, 0.01% (a)
    120,649  
       
TOTAL SHORT TERM INVESTMENT (Cost $120,649)
    120,649  
                 
       
TOTAL INVESTMENTS (Cost $20,504,809) - 100.3%
    24,293,269  
       
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)%
    (73,391 )
       
TOTAL NET ASSETS - 100.0%
  $ 24,219,878  
   
     
Non Income Producing.
       
     
 ADR 
American Depositary Receipt.
       
     
U.S. Dollar-denominated foreign security.
       
     
(a) 
7 -day yield
       

 
 

 
 
Jacob Small Cap Growth Fund Summary of Fair Value Exposure
                   
Investment securities traded on a national securities exchange are valued at their market value determined by their last sales price in the principal market in which these securities are normally traded (except those traded on the NASDAQ National Market and Capital Market exchanges which are valued at the NASDAQ Official Closing Price (“NOCP”)), unless there are no transactions on the valuation date, in which case they are valued at the mean between the closing bid and ask prices. Securities traded over-the-counter are valued at the last reported sales price unless there is no reported sales price, in which case the mean between the closing bid and ask prices is used.  Foreign securities, currencies and other assets denominated in foreign currencies are translated into U.S. dollars at at the exchange rate of such currencies. Foreign equity securities are valued at the last sale price at the close of the exchange on which the security is principally traded. Debt securities with maturities of 60 days or less are valued at amortized cost, which approximates market value. Short-term securities with 60 days or less remaining to maturity are, unless conditions indicate otherwise, amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, based on the value determined on the 61st day.  If amortized cost does not approximate fair value, short-term securities are reported at fair value. Where market quotations are not readily available, are unreliable or when values have been materially affected by events occurring before the close of U.S. markets but after the close of the securities’ primary markets, securities are valued at fair value using procedures approved by the Board of Directors that are designed to determine a security’s fair value .
 
The Fund adheres to fair valuation accounting standards which provides an authoritative definition of fair value and sets out a hierarchy for measuring fair value. These standards require disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
Various inputs are used in determining the value of the Small Cap Growth Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - 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 on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Small Cap Growth Fund's investments as of May 31, 2015:
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
 Common Stock
                       
 Biotech & Pharmaceuticals
  $ 6,334,062     $ -     $ -     $ 6,334,062  
 Energy-Exploration & Production
    1,629,289       -       -       1,629,289  
 Financial
    894,744       -       -       894,744  
 Industrial
    2,320,094       -       -       2,320,094  
 Medical Devices
    1,432,246       -       -       1,432,246  
 Retail & Restaurants
    1,658,996       -       -       1,658,996  
 Technology-Hardware
    642,902       -       -       642,902  
 Technology-Software & Services
    9,260,287       -       -       9,260,287  
 Total Common Stock
    24,172,620       -       -       24,172,620  
                                   
 Short Term Investment
                               
 Money Market Fund
    120,649       -       -       120,649  
                                 
 Total Investments in Securities
  $ 24,293,269     $ -     $ -     $ 24,293,269  
 
* There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period, as compared to their classification from the most recent annual report .
 
 
 

 
 
Jacob Micro Cap Growth Fund
     
Schedule of Investments
     
May 31, 2015 (Unaudited)
     
       
Shares
       
Value
 
     
COMMON STOCKS - 94.8%
     
     
Biotech & Pharmaceuticals - 13.5%
     
  46,000    
Array BioPharma Inc. *
  $ 351,900  
  19,954    
Cancer Genetics, Inc. *
    220,492  
  5,121    
Cempra, Inc. *
    187,992  
  20,000    
Omeros Corp. *
    397,000  
  55,000    
pSivida Corp. *
    216,150  
  4,900    
Tetraphase Pharmaceuticals, Inc. *
    210,112  
  12,500    
Theravance Biopharma, Inc. *^
    174,375  
              1,758,021  
       
Chemicals - 2.8%
       
  42,110    
BioAmber, Inc. *
    368,462  
                 
       
Energy-Exploration & Production - 2.3%
       
  32,000    
Penn Virginia Corp. *
    148,800  
  30,388    
Triangle Petroleum Corp. *
    155,891  
              304,691  
       
Financial - 3.5%
       
  29,200    
HomeTrust Bancshares, Inc. *
    452,016  
                 
       
Food & Beverages - 2.9%
       
  61,413    
Reed's, Inc. *
    374,005  
                 
       
Industrial - 3.7%
       
  33,278    
CECO Environmental Corp.
    377,705  
  40,000    
Energy Recovery, Inc. *
    106,400  
              484,105  
       
Medical Devices - 11.5%
       
  35,671    
Derma Sciences, Inc. *
    234,002  
  33,660    
iCAD, Inc. *
    148,440  
  8,500    
Intersect ENT, Inc. *
    201,790  
  30,000    
Nanosphere, Inc. *
    102,900  
  34,350    
STAAR Surgical Co. *
    320,829  
  214,000    
TearLab Corp. *
    494,340  
              1,502,301  
       
Retail & Restaurants - 11.5%
       
  32,600    
Geeknet, Inc. *
    648,740  
  14,000    
Jamba, Inc. *
    214,340  
  158,000    
Pacific Sunwear California, Inc. *
    244,900  
  29,300    
Rave Restaurant Group, Inc. *
    381,779  
              1,489,759  
       
Technology-Hardware - 5.0%
       
  16,840    
CEVA, Inc. *
    345,894  
  85,000    
Lantronix, Inc. *
    130,050  
  320,000    
Netlist, Inc. *
    169,600  
              645,544  
 
 
 

 
 
       
Technology-Software & Services - 38.1%
       
  21,000    
Castlight Health, Inc. *
    183,330  
  90,000    
Digital Turbine Inc. *
    376,200  
  66,000    
E-House (China) Holdings Ltd. - ADR ^
    366,960  
  40,599    
I.D. Systems, Inc. *
    266,330  
  53,093    
Immersion Corp. *
    641,894  
  95,232    
Jiayuan.com International Ltd. - ADR ^
    883,753  
  4,164    
LogMeIn, Inc. *
    264,289  
  155,000    
Mitek Systems, Inc. *
    511,500  
  28,905    
Numerex Corp. *
    247,427  
  11,700    
Rally Software Development Corp. *
    227,214  
  100,000    
Sysorex Global Holdings Corp. *
    175,000  
  132,000    
Top Image Systems Ltd. *^
    451,440  
  110,000    
USA Technologies, Inc. *
    358,600  
              4,953,937  
       
TOTAL COMMON STOCKS (Cost $11,853,735)
    12,332,841  
                 
       
SHORT TERM INVESTMENT - 5.3%
       
       
Money Market Fund - 5.3%
       
  692,349    
Fidelity Government Portfolio-Class I, 0.01% (a)
    692,349  
       
TOTAL SHORT TERM INVESTMENT (Cost $692,349)
    692,349  
                 
       
TOTAL INVESTMENTS (Cost $12,546,084) - 100.1%
    13,025,190  
       
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)%
    (19,461 )
       
TOTAL NET ASSETS - 100.0%
  $ 13,005,729  
   
                 
     
Non Income Producing.
       
     
 ADR 
American Depository Receipt.
       
     
U.S. Dollar-denominated foreign security.
       
     
(a) 
7 - day yield
       

 
 

 
 
Jacob Micro Cap Growth Fund Summary of Fair Value Exposure
Investment securities traded on a national securities exchange are valued at their market value determined by their last sales price in the principal market in which these securities are normally traded (except those traded on the NASDAQ National Market and Capital Market exchanges which are valued at the NASDAQ Official Closing Price (“NOCP”)), unless there are no transactions on the valuation date, in which case they are valued at the mean between the closing bid and ask prices. Securities traded over-the-counter are valued at the last reported sales price unless there is no reported sales price, in which case the mean between the closing bid and ask prices is used.  Foreign securities, currencies and other assets denominated in foreign currencies are translated into U.S. dollars at at the exchange rate of such currencies. Foreign equity securities are valued at the last sale price at the close of the exchange on which the security is principally traded. Debt securities with maturities of 60 days or less are valued at amortized cost, which approximates market value. Short-term securities with 60 days or less remaining to maturity are, unless conditions indicate otherwise, amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, based on the value determined on the 61st day.  If amortized cost does not approximate fair value, short-term securities are reported at fair value. Where market quotations are not readily available, are unreliable or when values have been materially affected by events occurring before the close of U.S. markets but after the close of the securities’ primary markets, securities are valued at fair value using procedures approved by the Board of Directors that are designed to determine a security’s fair value .

The Fund adheres to fair valuation accounting standards which provide an authoritative definition of fair value and sets out a hierarchy for measuring fair value. These standards require disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
Various inputs are used in determining the value of the Micro Cap Growth Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - 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 on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
   
The following is a summary of the inputs used to value the Micro Cap Growth Fund's investments as of May 31, 2015:
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stock
                       
Biotech & Pharmaceuticals
  $ 1,758,021     $ -     $ -     $ 1,758,021  
Chemicals
  $ 368,462       -       -       368,462  
Energy-Exploration & Production
    304,691       -       -       304,691  
Financial
    452,016       -       -       452,016  
Food & Beverages
    374,005       -       -       374,005  
Industrial
    484,105       -       -       484,105  
Medical Devices
    1,502,301       -       -       1,502,301  
Retail & Restaurants
    1,489,759       -       -       1,489,759  
Technology-Hardware
    645,544       -       -       645,544  
Technology-Software & Services
    4,953,937       -       -       4,953,937  
Total Common Stock
    12,332,841       -       -       12,332,841  
                                 
Short Term Investment
                               
Money Market Fund
    692,349       -       -       692,349  
                                 
Total Investments in Securities
  $ 13,025,190     $ -     $ -     $ 13,025,190  
 
* There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period, as compared to their classification from the most recent annual report.
 
 
 

 
Jacob
Jacob Wisdom Fund
     
Schedule of Investments
     
May 31, 2015 (Unaudited)
     
       
Shares
       
Value
 
     
COMMON STOCKS - 99.5%
     
     
Air Freight & Logistics - 2.1%
     
  2,400    
Union Pacific Corp.
  $ 242,184  
                 
       
Beverages - 5.9%
       
  2,400    
Anheuser-Busch InBev NV - ADR ^
    289,344  
  4,800    
The Coca-Cola Co.
    196,608  
  1,800    
Diageo plc - ADR ^
    199,728  
              685,680  
       
Cable/Satellite TV - 6.9%
       
  3,000    
DIRECTV *
    273,120  
  6,000    
Liberty Global plc *^
    322,500  
  3,000    
Viacom Inc.
    200,640  
              796,260  
       
Chemicals - 3.3%
       
  1,200    
CF Industries Holdings, Inc.
    379,056  
                 
       
Commercial Banks - 2.0%
       
  7,500    
Banco Latinoamericano de Comercio Exterior SA ^
    227,475  
                 
       
Commercial Services & Supplies - 8.7%
       
  500    
AutoZone, Inc. *
    336,810  
  1,200    
The Sherwin-Williams Co.
    345,816  
  4,500    
Verisk Analytics, Inc. - Class A *
    326,610  
              1,009,236  
       
Consumer Finance - 10.0%
       
  4,800    
American Express Co.
    382,656  
  4,000    
MasterCard, Inc. - Class A
    369,040  
  6,000    
Visa Inc. - Class A
    412,080  
              1,163,776  
       
Consumer Non-Cyclical - 1.7%
       
  2,400    
Philip Morris International Inc.
    199,368  
                 
       
Food & Staples Retailing - 2.8%
       
  1,500    
Costco Wholesale Corp.
    213,885  
  1,500    
Wal-Mart Stores, Inc.
    111,405  
              325,290  
       
Food Products - 8.5%
       
  6,000    
Campbell Soup Co.
    290,040  
  3,000    
Kraft Foods Group, Inc.
    253,350  
  3,000    
Mead Johnson Nutrition Co.
    291,900  
  3,600    
Unilever NV - NY Shares - ADR ^
    153,720  
              989,010  
       
Health Care Equipment & Supplies - 5.7%
       
  2,700    
C.R. Bard, Inc.
    459,864  
  2,400    
DaVita HealthCare Partners Inc. *
    201,072  
              660,936  
       
Hotels, Restaurants & Leisure - 2.0%
       
  2,400    
McDonald's Corp.
    230,232  
                 
       
Insurance - 4.1%
       
  2,000    
Berkshire Hathaway Inc. - Class B *
    286,000  
  2,000    
The Chubb Corp.
    195,000  
              481,000  
       
Machinery - 8.4%
       
  2,000    
Cummins Inc.
    271,100  
  4,800    
The Toro Co.
    328,272  
  3,000    
WABCO Holdings Inc. *
    379,260  
              978,632  
 
 
 

 
 
       
Oil, Gas & Consumable Fuels - 6.2%
       
  2,400    
Chevron Corp.
    247,200  
  2,400    
Exxon Mobil Corp.
    204,480  
  10,500    
Southwestern Energy Co. *
    270,585  
              722,265  
       
Pharmaceuticals - 8.0%
       
  3,300    
Eli Lilly & Co.
    260,370  
  6,000    
Gilead Sciences, Inc. *
    673,620  
              933,990  
       
Technology-Hardware & Software - 8.4%
       
  7,500    
Apple Computer, Inc.
    977,100  
                 
       
Textiles, Apparel & Luxury Goods - 4.8%
       
  3,000    
Kohl's Corp.
    196,470  
  3,600    
Nike, Inc. - Class B
    366,012  
              562,482  
       
TOTAL COMMON STOCKS (Cost $7,232,132)
    11,563,972  
                 
       
SHORT TERM INVESTMENT - 0.8%
       
       
Money Market Fund - 0.8%
       
  94,350    
Fidelity Government Portfolio-Class I, 0.01% (a)
    94,350  
       
TOTAL SHORT TERM INVESTMENT (Cost $94,350)
    94,350  
                 
       
TOTAL INVESTMENTS (Cost $7,326,482) - 100.3%
    11,658,322  
       
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)%
    (39,185 )
       
TOTAL NET ASSETS - 100.0%
  $ 11,619,137  
   
                 
                 
                 
     
 ADR 
American Depository Receipt.
       
     
U.S. Dollar-denominated foreign security.
       
     
Non Income Producing.
       
     
(a) 
7 - day yield
       

 
 

 
 
Jacob Wisdom Fund Summary of Fair Value Exposure
Investment securities traded on a national securities exchange are valued at their market value determined by their last sales price in the principal market in which these securities are normally traded (except those traded on the NASDAQ National Market and Capital Market exchanges which are valued at the NASDAQ Official Closing Price (“NOCP”)), unless there are no transactions on the valuation date, in which case they are valued at the mean between the closing bid and ask prices. Securities traded over-the-counter are valued at the last reported sales price unless there is no reported sales price, in which case the mean between the closing bid and ask prices is used.  Foreign securities, currencies and other assets denominated in foreign currencies are translated into U.S. dollars at at the exchange rate of such currencies. Foreign equity securities are valued at the last sale price at the close of the exchange on which the security is principally traded. Debt securities with maturities of 60 days or less are valued at amortized cost, which approximates market value. Short-term securities with 60 days or less remaining to maturity are, unless conditions indicate otherwise, amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, based on the value determined on the 61st day.  If amortized cost does not approximate fair value, short-term securities are reported at fair value. Where market quotations are not readily available, are unreliable or when values have been materially affected by events occurring before the close of U.S. markets but after the close of the securities’ primary markets, securities are valued at fair value using procedures approved by the Board of Directors that are designed to determine a security’s fair value .

The Fund adheres to fair valuation accounting standards which provide an authoritative definition of fair value and sets out a hierarchy for measuring fair value. These standards require disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
Various inputs are used in determining the value of the Wisdom Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - 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 on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
   
The following is a summary of the inputs used to value the Wisdom Fund's investments as of May 31, 2015:
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stock
                       
Air Freight & Logistics
  $ 242,184     $ -     $ -     $ 242,184  
Beverages
    685,680       -       -       685,680  
Cable/Satellite TV
    796,260       -       -       796,260  
Chemicals
    379,056       -       -       379,056  
Commercial Banks
    227,475       -       -       227,475  
Commercial Services & Supplies
    1,009,236       -       -       1,009,236  
Consumer Finance
    1,163,776       -       -       1,163,776  
Consumer Non-Cyclical
    199,368       -       -       199,368  
Food & Staples Retailing
    325,290       -       -       325,290  
Food Products
    989,010       -       -       989,010  
Health Care Equipment & Supplies
    660,936       -       -       660,936  
Hotels, Restaurants & Leisure
    230,232       -       -       230,232  
Insurance
    481,000       -       -       481,000  
Machinery
    978,632       -       -       978,632  
Oil, Gas & Consumable Fuels
    722,265       -       -       722,265  
Pharmaceuticals
    933,990       -       -       933,990  
Technology-Hardware & Software
    977,100       -       -       977,100  
Textiles, Apparel & Luxury Goods
    562,482       -       -       562,482  
Total Common Stock
    11,563,972       -       -       11,563,972  
                                 
Short Term Investment
                               
Money Market Fund
    94,350       -       -       94,350  
                                 
Total Investments in Securities
  $ 11,658,322     $ -     $ -     $ 11,658,322  
 
* There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period, as compared to their classification from the most recent annual report.
 
 
 

 
 
The cost basis of investments in the Jacob Internet Fund for federal income tax purposes at May 31, 2015 was as follows*:
 
Cost of investments     $ 30,463,244  
Gross unrealized appreciation      15,762,749  
Gross unrealized depreciation      (2,626,118 )
Net unrealized appreciation        $ 13,136,631  
   
The cost basis of investments in the Jacob Small Cap Growth Fund for federal income tax purposes at May 31, 2015 was as follows*:
 
Cost of investments     $ 20,504,809  
Gross unrealized appreciation      6,057,633  
Gross unrealized depreciation      (2,269,173 )
Net unrealized appreciation        $ 3,788,460  
 
The cost basis of investments in the Jacob Micro Cap Growth Fund for federal income tax purposes at May 31, 2015 was as follows*:
 
Cost of investments     $ 12,546,084  
Gross unrealized appreciation      2,473,914  
Gross unrealized depreciation      (1,994,808 )
Net unrealized appreciation        $ 479,106  
 
The cost basis of investments in the Jacob Wisdom Fund for federal income tax purposes at May 31, 2015 was as follows*:
 
Cost of investments     $ 7,326,482  
Gross unrealized appreciation      4,488,320  
Gross unrealized depreciation      (156,480 )
Net unrealized appreciation        $ 4,331,840  
 
*Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.  For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Funds’ most recent semi-annual or annual report.
 
 
 

 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)) .  Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)  
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).   Filed herewith.
 

 
 

 
 
SIGNATURES
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)   Jacob Funds Inc.                                                    
                                                                                                     

By (Signature and Title) ­­­   /s/ Ryan Jacob                              
                                            Ryan Jacob, President

Date   7/14/2015                                                                          
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 
 
By (Signature and Title) ­­­   /s/ Ryan Jacob                               
                                            Ryan Jacob, President

Date   7/14/2015                                                                          
 
 
By (Signature and Title)  /s/ Francis Alexander                   
                                            Francis Alexander, Treasurer

Date  7/14/2015                                                                          

 


 
CERTIFICATION
 
I, Ryan Jacob, certify that:

1.  
I have reviewed this report on Form N-Q of Jacob Funds Inc.;

2.  
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;

3.  
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

4.  
The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
(a)  
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;

 
(b)  
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;

 
(c)  
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 a date within 90 days prior to the filing date of this report, based on such evaluation; and

 
(d)  
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 that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5.  
The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

 
(a)  
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

 
(b)  
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.

Date:       7/14/2015   
/s/ Ryan Jacob                                  
 
Ryan Jacob
President
 
 
 

 
 
CERTIFICATION
 
I, Francis Alexander, certify that:

1.  
I have reviewed this report on Form N-Q of Jacob Funds Inc.;

2.  
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;

3.  
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

4.  
The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
(a)  
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;

 
(b)  
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;

 
(c)  
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 a date within 90 days prior to the filing date of this report, based on such evaluation; and

 
(d)  
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 that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5.  
The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

 
(a)  
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
 
 
(b)  
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.

Date:        7/14/2015   
/s/ Francis Alexander                
 
Francis Alexander
Treasurer