Investors

Balance Sheet

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except share and per share amounts)

   
June 30,
2010
(Unaudited)
   
December 31,
2009
 
ASSETS
           
             
Cash and cash equivalents
  $ 5,973     $ 5,702  
Securities owned at fair value
    3,297       2,209  
Receivables from clearing brokers
    13,329       13,406  
Receivables from other broker-dealers
    1,102       329  
Other receivables, net
    5,443       6,203  
Furniture, equipment and leasehold improvements, net
    2,788       3,154  
Restricted assets
    200       350  
Intangible assets, net
    26,994       28,509  
Goodwill
    29,739       29,739  
Unamortized debt issue cost
    1,738       1,879  
Other assets
    2,733       3,157  
                 
Total assets
  $ 93,336     $ 94,637  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
                 
Securities sold, but not yet purchased, at market value
  $ 9     $ 9  
Accrued compensation
    4,216       4,299  
Commissions and fees payable
    5,589       5,957  
Accounts payable and accrued liabilities
    4,339       5,671  
Deferred rent
    3,170       3,378  
Deferred income taxes
    2,092       1,726  
Accrued interest
    634       365  
Notes payable
    25,511       35,438  
                 
Total liabilities
  $ 45,560     $ 56,843  
                 
Commitments and contingencies (Note 6)
               
Shareholders’ equity:
               
Preferred stock, $.0001 par value; 2,000,000 shares authorized; none issued
           
Common stock, $.0001 par value; 400,000,000 shares authorized; shares issued and outstanding, 181,326,987 in 2010 and 167,907,038 in 2009
    18       17  
Additional paid-in capital
    187,962       171,349  
Accumulated deficit
    (140,204 )     (133,572 )
                 
Total shareholders’ equity
    47,776       37,794  
                 
Total liabilities and shareholders’ equity
  $ 93,336     $ 94,637  

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share and per share amounts)
 
                 
    December 31,  
    2009     2008  
 
ASSETS
Cash and cash equivalents
  $ 5,702     $ 6,621  
Securities owned, at fair value
    2,209       4,828  
Receivables from clearing brokers
    13,406       14,558  
Receivables from other broker-dealers
    329        
Other receivables, net
    6,203       4,423  
Furniture, equipment and leasehold improvements, net
    3,154       3,714  
Restricted assets
    350       701  
Intangible assets, net
    28,509       31,625  
Goodwill
    29,739       29,739  
Unamortized debt issue cost
    1,879       2,400  
Other assets
    3,157       3,059  
                 
Total assets
  $ 94,637     $ 101,668  
                 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities sold, but not yet purchased, at fair value
  $ 9     $ 91  
Accrued compensation
    4,299       3,661  
Commissions and fees payable
    5,957       5,203  
Accounts payable and accrued liabilities
    5,671       5,653  
Deferred rent
    3,378       3,863  
Deferred income taxes
    1,726       780  
Accrued interest
    365       193  
Notes payable
    35,438       30,934  
                 
Total liabilities
    56,843       50,378  
                 
Commitments and contingencies (Notes 3 and 11)
               
Shareholders’ equity:
               
Preferred stock, $.0001 par value; 2,000,000 shares authorized; none issued
           
Common stock, $.0001 par value; 400,000,000 shares authorized; shares issued and outstanding, 167,907,038 in 2009 and 171,715,514 in 2008
    17       17  
Additional paid-in capital
    171,349       166,172  
Accumulated deficit
    (133,572 )     (114,899 )
                 
Total shareholders’ equity
    37,794       51,290  
                 
Total liabilities and shareholders’ equity
  $ 94,637     $ 101,668