Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
 6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Cash flows from operating activities:    
Net income (loss) $ 609 $ (6,632)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation and amortization of furniture, equipment and leasehold improvements 522 520
Adjustment to deferred rent (281) (209)
Amortization of debt discount 35 200
Amortization of intangible assets 1,266 1,514
Amortization of debt issue cost 140 141
Deferred income taxes 409 366
Benefit attributable to reduction of goodwill 8  
Non-cash compensation expense 2,084 3,365
Loss on disposal of furniture, equipment and leasehold improvements   4
(Increase) decrease in operating assets:    
Securities owned at fair value 145 (1,088)
Receivables from clearing broker (3,254) 77
Receivables from other broker-dealers (1,675) (773)
Other receivables, net (2,063) 760
Other assets (502) 391
Increase (decrease) in operating liabilities:    
Securities sold, but not yet purchased, at fair value 1,748  
Accrued compensation (368) (83)
Accrued interest 259 269
Commissions and fees payable 919 (368)
Accounts payable and accrued liabilities (1,161) (1,332)
Net cash used in operating activities (1,160) (2,878)
Cash flows from investing activities:    
Purchases of furniture, equipment and leasehold improvements (109) (123)
Decrease in restricted assets 50 150
Net cash (used in) provided by investing activities (59) 27
Cash flows from financing activities:    
Issuance of common stock in private equity offering   13,209
Issuance of common stock under stock plans 135 104
Repurchases of common stock (697) (64)
Principal borrowings (payments) under revolving credit facility, net 5,000 (6,700)
Principal payments on other notes payable (956) (3,427)
Net cash provided by financing activities 3,482 3,122
Net increase in cash and cash equivalents 2,263 271
Cash and cash equivalents, beginning of period 6,927 5,702
Cash and cash equivalents, end of period 9,190 5,973
Supplemental cash flow information    
Interest paid 1,205 1,269
Taxes paid $ 73 $ 16