Annual report pursuant to section 13 and 15(d)

Acquisitions (Tables)

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Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2012
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table summarizes the fair values of assets acquired and liabilities assumed:

 
Cash   $ 24,315  
Receivables     34,083  
Identifiable intangible assets     76,458  
Goodwill     60,493*  
Cash surrender value of life insurance     13,085  
Other assets     22,591  
Total assets acquired     231,025  
Commissions and fees payable     (15,714 ) 
Accounts payable and accrued liabilities     (14,267 ) 
Deferred compensation liability     (19,534 ) 
Deferred taxes payable, net     (19,604)*  
Deferred fees payable     (4,894 ) 
Total liabilities assumed     (74,013 ) 
Total purchase price   $ 157,012  

* During 2012, the Company reduced goodwill attributable to the Securities America acquisition by $935 to correct the overstatement of the deferred tax liability originally recorded, and by $99 to reflect the working capital purchase price adjustment.
Schedule of Finite-Lived Intangible Assets [Table Text Block]

Identifiable intangible assets as of the acquisition date consist of:

   
    Useful Life (years)
Technology   $ 20,996       7.7  
Relationships with independent contractor financial advisors     43,188       9.2  
Trade names     12,267       7.2  
Non-solicitation agreement     7       2.2  
Total identifiable intangible assets   $ 76,458      
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]
The following unaudited pro forma information represents the Company’s consolidated results of operations as if the acquisition of Securities America had occurred at the beginning of 2010. The pro forma net loss reflects amortization of the amounts ascribed to intangible assets acquired in the acquisition, compensation related to forgivable loans and stock option grants to independent financial advisors referred to above and interest expense on debt used to finance the acquisition and related cash requirements.

   
  Year Ended
December 31, 2011 		  Year Ended
December 31, 2010
Total revenue   $ 658,104     $ 656,913  
Net loss   $ (45,133 )    $ (42,773 ) 
Basic and diluted loss per share   $ (0.25 )    $ (0.24 ) 
Weighted average common shares outstanding – basic and diluted     183,023,590       175,698,489
Unaudited Pro Forma Information Represents Consolidated Results of Operations

Set forth below are changes in the carrying value of contingent consideration included in accounts payable and accrued liabilities.

 
Year Ended December 31, 2012:  
Fair value of contingent consideration as of December 31, 2011   $ 7,111  
Change in fair value of contingent consideration     (7,111 ) 
Fair value of contingent consideration in connection with 2012 acquisition     812  
Fair value of contingent consideration as of December 31, 2012   $ 812