Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net loss	$ (2,461)	$ (9,837)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization of furniture, equipment and leasehold improvements	750	759
Adjustment to deferred rent	(437)	(369)
Amortization of debt discount	39	258
Amortization of intangible assets	1,900	2,271
Amortization of debt issue cost	(190)	211
Deferred income taxes	636	540
Gain on forgiveness of principal of note payable under forgivable loan	(1,429)	(1,429)
Benefit attributable to reduction of goodwill	11
Non-cash compensation expense	2,772	4,656
Loss on disposal of furniture, equipment and leasehold improvements	1	4
(Increase) decrease in operating assets:
Securities owned at fair value	1,078	(138)
Receivables from clearing broker	(677)	(1,774)
Receivables from other broker-dealers	984	(212)
Other receivables, net	1,135	(399)
Other assets	(121)	(227)
Increase (decrease) in operating liabilities:
Securities sold, but not yet purchased, at fair value		1
Accrued compensation	1,287	461
Accrued interest	(86)	(178)
Commissions and fees payable	(2,738)	366
Accounts payable and accrued liabilities	(1,301)	516
Net cash provided by (used in) operating activities	1,153	(4,520)
Cash flows from investing activities:
Premier Trust acquisition, net of cash received		(162)
Purchases of furniture, equipment and leasehold improvements	(188)	(303)
Decrease in restricted assets	50	150
Net cash used in investing activities activities	(138)	(315)
Cash flows from financing activities:
Issuance of common stock in private equity offering		13,209
Issuance of common stock principally under stock plans	345	126
Repurchases of common stock	(1,222)	(64)
Principal borrowings (payments) under revolving credit facility, net	5,000	(3,100)
Principal payments on other notes payable	(1,438)	(5,165)
Net cash provided by financing activities	2,685	5,006
Net increase in cash and cash equivalents	3,700	171
Cash and cash equivalents, beginning of period	6,927	5,702
Cash and cash equivalents, end of period	10,627	5,873
Supplemental cash flow information
Interest paid	1,837	1,701
Taxes paid	87	19
Acquisition of Premier Trust:
Assets acquired, including goodwill of $15		2,565
Liabilities assumed		(205)
Net assets acquired		2,360
Note used in acquisition		(1,161)
Cash paid in acquisition		1,199
Cash acquired in acquisition		(1,037)
Net cash paid in acquisition		$ 162