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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">UNITED STATES</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Washington, D.C. 20549</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">__________</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM 8-K</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CURRENT REPORT</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Pursuant to Section 13 or 15(d) of the</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Securities Exchange Act of 1934</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of Report (Date of earliest event reported): November 12, 2010</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital Holdings, Ltd.</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Delaware</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">333-43664</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">04-3284631</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(State or Other Jurisdiction</FONT>&nbsp;</TD>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of Incorporation)</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">File Number)</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Identification No.)</FONT>&nbsp;</TD></TR></TABLE></DIV><BR>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">230 Broadway East</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Lynnfield, MA 01940</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Address of Principal Executive Offices) (Zip Code)</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Registrant's telephone number, including area code: (800) 949-1422</FONT></TD></TR></TABLE></P>
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<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">filing obligation of the registrant under any of the following provisions:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT><BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT><BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">CFR 240.14d-2(b))</FONT><BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">[] (Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">CFR 240.13e-4(c))</FONT></P>
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<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 2.02 Results of Operations and Financial Condition.</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">On November 12, 2010 the Registrant issued a news release, a copy of which is set forth in Exhibit 2.02 hereto, announcing financial results for the Registrant for the fiscal quarter ended September 30, 2010.</FONT></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></B></TD></TR></TABLE></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investors Capital Holdings, Ltd.</FONT><BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By <U>/s/ </U></FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif"><U>Timothy B. Murph</U><U>y&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></I><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Timothy B. Murphy, Chief Executive Officer</FONT></TD></TR></TABLE></P>
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     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: November 17, 2010</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit 2.02</FONT></B></TD></TR></TABLE></P>
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<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FOR IMMEDIATE RELEASE</FONT></B></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Contact:<BR>
</FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert Foney, Chief Marketing Officer<BR>
781.477.4814<BR>
rfoney@investorscapital.com</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#000000>www.investorscapital.com</FONT></P>
<P style="TEXT-ALIGN: center"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>Investors Capital Holdings Q2 Revenues Rise 7.9%<BR>
</FONT></B><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">CEO Murphy likes firm&#146;s strong positioning, growth, and stability</FONT></I></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Lynnfield, Mass. (November 12, 2010) </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#150; Investors Capital Holdings, Ltd. (NYSE Amex: ICH, &#147;the Company&#148;), a financial services holding company, posted second quarter total revenue of $20.43 million for the period ended September 30, 2010 (&#147;the quarter&#148;) compared to total revenue of $18.94 million for the quarter ended September 30, 2009 (&#147;prior period&#148;). The Company operates primarily through its wholly-owned subsidiary, Investors Capital Corporation (&#147;ICC&#148;), a dually registered broker-dealer and investment advisory firm.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Total revenue for the quarter grew by $1.49 million, or 7.9%, compared to the prior period. The increase is due primarily to a rise in commissionable revenues as markets continue to rebound from the recent recession. Commission revenue, which accounts for 81.8% of total revenue, increased 8.8% to $16.72 million. Advisory fees, which account for 15.1% of total revenue, grew 7.6% to $3.09 million. The rise in advisory revenue reflects growth in market asset values, as well as new investment contributions.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;We are pleased to see continued growth in revenues generated by our registered representatives, particularly in our advisory platforms,&#148; said Timothy B. Murphy, the Company&#146;s President and CEO. &#147;Ours is a service business, and by keeping the delivery of 5-star service every day to our </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">advisors forefront in all that we do, our revenue, profitability, and recruiting goals become achievable.&#148;</FONT></P>
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<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">At quarter end, the firm&#146;s net capital position remained stable at $2.72 million for the quarter (an excess of $2.22 million) with a net capital ratio of 2.78:1. The SEC Uniform Net Capital Rule (Rule 15c3-1) requires that Investors Capital maintain net capital of $100,000 and a ratio of specified aggregate indebtedness to net capital (a &#147;net capital ratio&#148;) not to exceed 15 to 1.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital continues to benefit from improving the overall quality of its representatives, a key component of the Company&#146;s strategy for achieving growth in revenues and net income. The firm seeks to continually improve the quality of its representatives by helping them improve their skills and practices, recruiting established, high-quality representatives, and terminating low-quality advisors. The firm&#146;s average revenue per representative, based on a rolling 12-month period, rose again in the second quarter to $140,440, an increase of 24.8% over $112,519 for the prior period.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Total expenses increased by $2.54 million, or 13.7%, principally as a result of increases in commissions and advisory fees paid to representatives; compensation; and regulatory, legal, and professional fees. Increases in reserves for estimated legal and regulatory settlements, including recent estimated settlements with the Massachusetts Securities Division, were a significant factor in the Company posting a net loss of $0.64 million for the quarter compared to net income of $0.21 million for the prior period.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;We settled a regulatory matter with the State that greatly impacted our earnings this quarter,&#148; said Murphy. &#147;We are pleased to have this issue resolved; and we look forward to pursuing profitability going forward.&#148;</FONT></P>
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<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adjusted EBITDA was $0.48 million loss for the quarter compared to $0.59 million for the prior period, due primarily to increased operating expenses. Adjusted EBITDA, a non-GAAP financial</FONT> measure described below, is a key metric utilized by the firm in evaluating its financial performance.</FONT></P>
<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">About Investors Capital Holdings, Ltd.:</FONT></B></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investors Capital Holdings, Ltd. (NYSE Amex: ICH) of Lynnfield, Massachusetts is a financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation. Our mission is to provide premier 5-star service and support to our valued registered representatives, including advisory programs, strategic practice management and marketing services, and technology, to help them grow their businesses and exceed their clients&#146; expectations. Business units include Investors Capital Corporation, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit </FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#0000ff>www.investorscapital.com</FONT></U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.</FONT></P>
<P style="TEXT-ALIGN: left"><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Certain statements contained in this press release that are not historical fact may be deemed to be forward-looking statements under federal securities laws. There are many factors that could cause our future actual results to differ materially from those suggested by or forecast in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate fluctuations, regulatory changes affecting the financial services industry, competitive factors effecting demand for our services, availability of funding, and other risks including those identified in the Company&#146;s Securities and Exchange Commission filings.</FONT></I></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Investors Capital Holdings, Ltd., 230 Broadway, Lynnfield, Massachusetts 01940, Distributor.</FONT></P>
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     <TD noWrap align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES</FONT></B></TD></TR>
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     <TD noWrap align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)</FONT></B></TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>September 30, 2010</FONT></B>&nbsp;</TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>March 31, 2010</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Assets</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
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     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Current Assets</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash and cash equivalents</FONT>&nbsp;</TD>
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<P style="MARGIN-LEFT: 0px"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6,242,404</FONT>&nbsp;</P>
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     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,812,865</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deposit with clearing organization, restricted</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>175,000</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>175,000</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts receivable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,858,612</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,042,188</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Note receivable - (current)</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>34,299</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>140,598</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Loans receivable from registered representatives (current), net of allowance</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>725,070</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>769,263</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prepaid income taxes</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>559,007</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Securities owned at fair value</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>25,711</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>57,933</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Investments</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>50,000</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>50,000</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prepaid expenses</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>975,571</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>957,674</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,086,667</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,564,528</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
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     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Property and equipment, net</FONT></B>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>624,402</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>774,182</FONT>&nbsp;</TD></TR>
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     <TD colSpan=4>&nbsp;</TD></TR>
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     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Long Term Investments</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts Receivable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>330,000</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Loans receivable from registered representatives</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>298,263</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>292,884</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Note receivable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>595,000</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>595,000</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Investments</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>191,078</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>184,319</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-qualified deferred compensation investment</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>921,607</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>929,897</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash surrender value life insurance policies</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>586,116</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>551,398</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,922,064</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,553,498</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Other Assets</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Other assets</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,728</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>25,069</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deferred tax asset, net</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,312,540</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>838,773</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capitalized software, net</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>122,277</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>138,497</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,448,545</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,002,339</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><FONT face="Times New Roman" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></FONT>TOTAL ASSETS</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,081,678</FONT></B>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,894,547</FONT></B>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Liabilities and Stockholders' Equity</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Current Liabilities</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,192,538</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;817,761</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accrued expenses</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,439,284</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,358,656</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes payable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>341,626</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,130,922</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Commissions payable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,298,135</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,488,415</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income Taxes Payable</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>20,187</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Unearned revenues</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>199,947</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>101,931</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Securities sold, not yet purchased, at fair value</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>855</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,693</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7,492,572</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7,903,378</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Long-Term Liabilities</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-qualified deferred compensation plan</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>951,806</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>793,735</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>951,806</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>793,735</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total liabilities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,444,378</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,697,113</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Stockholders' Equity:</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common stock, $.01 par value, 10,000,000 shares authorized;</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,625,016 issued and 6,621,131 outstanding at September 30, 2010;</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,570,177 issued and 6,566,292 outstanding at March 31, 2009</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>66,250</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>65,958</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Additional paid-in capital</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>12,183,944</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>12,095,862</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accumulated deficit</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(2,618,555)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(1,964,084)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Less: Treasury stock, 3,885 shares at cost</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(30,135)</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(30,135)</FONT></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Accumulated other comprehensive income</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>35,796</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>29,833</FONT></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Total stockholders' equity</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>9,637,300</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="Times New Roman" size=2>10,197,434</FONT></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT face="Times New Roman" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2><B>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,081,678</B></FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2><B>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,894,547</B></FONT></TD></TR></TABLE></DIV><BR>
</DIV>
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<TABLE style="WIDTH: 827px; HEIGHT: 705px" cellSpacing=0 border=0>
<TR>
     <TD width="62%"></TD>
     <TD width="15%"></TD>
     <TD width="1%"></TD>
     <TD width="15%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (UNAUDITED)</FONT></B></TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center>&nbsp;<STRONG><FONT size=2>2010</FONT></STRONG>&nbsp;</TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center>&nbsp;<STRONG><FONT size=2>2009</FONT></STRONG></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Revenue:</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16,715,60</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15,357,927</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Commissions</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>9</FONT>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Advisory fees</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,090,414</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,871,553</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Other fee income</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>143,364</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>106,661</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Other revenue</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>481,177</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>599,658</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total revenue</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>20,430,564</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,935,799</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expenses:</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Commissions and advisory fees</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,098,685</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,348,474</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Compensation and benefits</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,040,010</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,817,574</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Regulatory, legal and professional services</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,315,436</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>511,359</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Brokerage, clearing and exchange fees</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>497,837</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>673,784</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Technology and communications</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>322,141</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>294,069</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Marketing and promotion</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>302,805</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>275,900</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Occupancy and equipment</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>213,444</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>210,591</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Other administrative</FONT>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>256,052</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>369,114</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; Interest</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,241</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,034</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total operating expenses</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>21,050,651</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,506,899</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Operating (loss) income</FONT></B>&nbsp;</TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(620,087)</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>428,900</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Provision for income taxes</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>23,594</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>222,202</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Net (loss) income</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (643,681)</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206,698</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT size=2>Basic and diluted net (loss) income per share</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.10)</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.03</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT size=2>Basic dividends per common share</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right></TD></TR>
<TR height=20>
     <TD noWrap align=left><FONT size=2>Shares used in basic and diluted per share calculations</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT size=2>6,523,675</FONT>&nbsp;</TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT size=2>6,499,394</FONT>&nbsp;</TD></TR></TABLE></DIV><BR>
<DIV align=left>&nbsp;</DIV><BR>
</DIV>
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<P style="TEXT-ALIGN: center">
<TABLE>
<TR>
     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Adjusted EBITDA</FONT></B></TD></TR></TABLE></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Earnings before interest, taxes, depreciation and amortization (&#147;EBITDA&#148;), as adjusted by eliminating other non-cash expense, gains or losses on sales of assets, and various non-recurring items (&#147;adjusted EBITDA&#148;), is a key metric we use in evaluating our financial performance. Adjusted EBITDA eliminates items that we believe are not part of our core operations, are non-recurring items of revenue or expense, or do not involve a cash outlay, such as stock-related compensation. We consider adjusted EBITDA important in monitoring and evaluating our financial performance on a consistent basis across various periods. We also use adjusted EBITDA as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adjusted EBITDA is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, important GAAP financial measures including pre-tax income, net income and cash flows from operating activities. Items excluded from adjusted EBITDA are significant and necessary components to the operations of our business; therefore, adjusted EBITDA should only be used as a supplemental measure of our operating performance.</FONT></P>
<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adjusted EBITDA may be reconciled with net income (loss) as follows:</FONT></P>
<DIV align=left>
<TABLE style="WIDTH: 442px; HEIGHT: 278px" cellSpacing=0 border=0>
<TR>
     <TD width="44%"></TD>
     <TD width="15%"></TD>
     <TD width="1%"></TD>
     <TD width="15%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right colSpan=3><B><FONT face="Times New Roman" size=2>Quarters Ended September 30,</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2010</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=center></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=center><B><FONT face="Times New Roman" size=2>2009</FONT></B><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Adjusted EBITDA:</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (484,499)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;590,964</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Adjustments to GAAP Net income (loss):</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=left></TD>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;&nbsp; Income tax benefit</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>-</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>80,337</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;&nbsp; Interest expense</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(4,241)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(6,034)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;&nbsp; Income tax expense</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(23,594)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(302,539)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;&nbsp; Depreciation and amortization</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(89,360)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD noWrap align=right><FONT face="Times New Roman" size=2>(87,858)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="TEXT-INDENT: 1px" noWrap align=left><FONT face="Times New Roman" size=2>&nbsp;&nbsp; Non-cash compensation</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=right><FONT face="Times New Roman" size=2>(41,987)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 2px solid" noWrap align=right><FONT face="Times New Roman" size=2>(68,174)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=4><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Net (loss) income</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(643,681)</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
     <TD noWrap align=right></TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face="Times New Roman" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 206,696</FONT><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR></TABLE></DIV><BR>
</DIV>
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</HTML>
[{"type": "8-K", "sequence": "1", "filename": "eight-k.htm", "description": "8-K", "secsgml_size_bytes": 62069}]
{"company-data": {"conformed-name": "INVESTORS CAPITAL HOLDINGS LTD", "cik": "0001001871", "assigned-sic": "6799", "irs-number": "043284631", "state-of-incorporation": "MA", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-43664", "film-number": "101198622"}, "business-address": {"street1": "230 BROADWAY EAST", "city": "LYNNFIELD", "state": "MA", "zip": "01940", "phone": "7815938565"}, "mail-address": {"street1": "230 BROADWAY", "city": "LYNNFIELD", "state": "MA", "zip": "01940"}}
eight-k.htm - Generated by SEC Publisher for SEC Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2010
Investors Capital Holdings, Ltd.
(Exact name of registrant as specified in its charter)
Delaware
333-43664
04-3284631
(State or Other Jurisdiction
(Commission
(IRS Employer
of Incorporation)
File Number)
Identification No.)
230 Broadway East
Lynnfield, MA 01940
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (800) 949-1422
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
[] (Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[] (Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[] (Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
[] (Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 12, 2010 the Registrant issued a news release, a copy of which is set forth in Exhibit 2.02 hereto, announcing financial results for the Registrant for the fiscal quarter ended September 30, 2010.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Investors Capital Holdings, Ltd.
By
/s/
Timothy B. Murph
y
Timothy B. Murphy, Chief Executive Officer
Date: November 17, 2010
Exhibit 2.02
FOR IMMEDIATE RELEASE
Contact:
Robert Foney, Chief Marketing Officer
781.477.4814
rfoney@investorscapital.com
www.investorscapital.com
Investors Capital Holdings Q2 Revenues Rise 7.9%
CEO Murphy likes firm's strong positioning, growth, and stability
Lynnfield, Mass. (November 12, 2010)
– Investors Capital Holdings, Ltd. (NYSE Amex: ICH, "the Company"), a financial services holding company, posted second quarter total revenue of $20.43 million for the period ended September 30, 2010 ("the quarter") compared to total revenue of $18.94 million for the quarter ended September 30, 2009 ("prior period"). The Company operates primarily through its wholly-owned subsidiary, Investors Capital Corporation ("ICC"), a dually registered broker-dealer and investment advisory firm.
Total revenue for the quarter grew by $1.49 million, or 7.9%, compared to the prior period. The increase is due primarily to a rise in commissionable revenues as markets continue to rebound from the recent recession. Commission revenue, which accounts for 81.8% of total revenue, increased 8.8% to $16.72 million. Advisory fees, which account for 15.1% of total revenue, grew 7.6% to $3.09 million. The rise in advisory revenue reflects growth in market asset values, as well as new investment contributions.
"We are pleased to see continued growth in revenues generated by our registered representatives, particularly in our advisory platforms," said Timothy B. Murphy, the Company's President and CEO. "Ours is a service business, and by keeping the delivery of 5-star service every day to our
advisors forefront in all that we do, our revenue, profitability, and recruiting goals become achievable."
At quarter end, the firm's net capital position remained stable at $2.72 million for the quarter (an excess of $2.22 million) with a net capital ratio of 2.78:1. The SEC Uniform Net Capital Rule (Rule 15c3-1) requires that Investors Capital maintain net capital of $100,000 and a ratio of specified aggregate indebtedness to net capital (a "net capital ratio") not to exceed 15 to 1.
Investors Capital continues to benefit from improving the overall quality of its representatives, a key component of the Company's strategy for achieving growth in revenues and net income. The firm seeks to continually improve the quality of its representatives by helping them improve their skills and practices, recruiting established, high-quality representatives, and terminating low-quality advisors. The firm's average revenue per representative, based on a rolling 12-month period, rose again in the second quarter to $140,440, an increase of 24.8% over $112,519 for the prior period.
Total expenses increased by $2.54 million, or 13.7%, principally as a result of increases in commissions and advisory fees paid to representatives; compensation; and regulatory, legal, and professional fees. Increases in reserves for estimated legal and regulatory settlements, including recent estimated settlements with the Massachusetts Securities Division, were a significant factor in the Company posting a net loss of $0.64 million for the quarter compared to net income of $0.21 million for the prior period.
"We settled a regulatory matter with the State that greatly impacted our earnings this quarter," said Murphy. "We are pleased to have this issue resolved; and we look forward to pursuing profitability going forward."
Adjusted EBITDA was $0.48 million loss for the quarter compared to $0.59 million for the prior period, due primarily to increased operating expenses. Adjusted EBITDA, a non-GAAP financial
measure described below, is a key metric utilized by the firm in evaluating its financial performance.
About Investors Capital Holdings, Ltd.:
Investors Capital Holdings, Ltd. (NYSE Amex: ICH) of Lynnfield, Massachusetts is a financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation. Our mission is to provide premier 5-star service and support to our valued registered representatives, including advisory programs, strategic practice management and marketing services, and technology, to help them grow their businesses and exceed their clients' expectations. Business units include Investors Capital Corporation, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit
www.investorscapital.com
.
Certain statements contained in this press release that are not historical fact may be deemed to be forward-looking statements under federal securities laws. There are many factors that could cause our future actual results to differ materially from those suggested by or forecast in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate fluctuations, regulatory changes affecting the financial services industry, competitive factors effecting demand for our services, availability of funding, and other risks including those identified in the Company's Securities and Exchange Commission filings.
Investors Capital Holdings, Ltd., 230 Broadway, Lynnfield, Massachusetts 01940, Distributor.
# # #
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, 2010
March 31, 2010
Assets
Current Assets
Cash and cash equivalents
$
6,242,404
$                           5,812,865
Deposit with clearing organization, restricted
175,000
175,000
Accounts receivable
4,858,612
6,042,188
Note receivable - (current)
34,299
140,598
Loans receivable from registered representatives (current), net of allowance
725,070
769,263
Prepaid income taxes
-
559,007
Securities owned at fair value
25,711
57,933
Investments
50,000
50,000
Prepaid expenses
975,571
957,674
13,086,667
14,564,528
Property and equipment, net
624,402
774,182
Long Term Investments
Accounts Receivable
330,000
-
Loans receivable from registered representatives
298,263
292,884
Note receivable
595,000
595,000
Investments
191,078
184,319
Non-qualified deferred compensation investment
921,607
929,897
Cash surrender value life insurance policies
586,116
551,398
2,922,064
2,553,498
Other Assets
Other assets
13,728
25,069
Deferred tax asset, net
1,312,540
838,773
Capitalized software, net
122,277
138,497
1,448,545
1,002,339
TOTAL ASSETS
$                        18,081,678
$                      18,894,547
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$                             1,192,538
$                              817,761
Accrued expenses
2,439,284
2,358,656
Notes payable
341,626
1,130,922
Commissions payable
3,298,135
3,488,415
Income Taxes Payable
20,187
-
Unearned revenues
199,947
101,931
Securities sold, not yet purchased, at fair value
855
5,693
7,492,572
7,903,378
Long-Term Liabilities
Non-qualified deferred compensation plan
951,806
793,735
951,806
793,735
Total liabilities
8,444,378
8,697,113
Stockholders' Equity:
Common stock, $.01 par value, 10,000,000 shares authorized;
6,625,016 issued and 6,621,131 outstanding at September 30, 2010;
6,570,177 issued and 6,566,292 outstanding at March 31, 2009
66,250
65,958
Additional paid-in capital
12,183,944
12,095,862
Accumulated deficit
(2,618,555)
(1,964,084)
Less: Treasury stock, 3,885 shares at cost
(30,135)
(30,135)
Accumulated other comprehensive income
35,796
29,833
Total stockholders' equity
9,637,300
10,197,434
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$                         18,081,678
$                       18,894,547
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (UNAUDITED)
2010
2009
Revenue:
$                         16,715,60
$                      15,357,927
Commissions
9
Advisory fees
3,090,414
2,871,553
Other fee income
143,364
106,661
Other revenue
481,177
599,658
Total revenue
20,430,564
18,935,799
Expenses:
Commissions and advisory fees
16,098,685
14,348,474
Compensation and benefits
2,040,010
1,817,574
Regulatory, legal and professional services
1,315,436
511,359
Brokerage, clearing and exchange fees
497,837
673,784
Technology and communications
322,141
294,069
Marketing and promotion
302,805
275,900
Occupancy and equipment
213,444
210,591
Other administrative
256,052
369,114
Interest
4,241
6,034
Total operating expenses
21,050,651
18,506,899
Operating (loss) income
(620,087)
428,900
Provision for income taxes
23,594
222,202
Net (loss) income
$                         (643,681)
$                          206,698
Basic and diluted net (loss) income per share
$                               (0.10)
$                                0.03
Basic dividends per common share
$                                        -
$                                      -
Shares used in basic and diluted per share calculations
6,523,675
6,499,394
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), as adjusted by eliminating other non-cash expense, gains or losses on sales of assets, and various non-recurring items ("adjusted EBITDA"), is a key metric we use in evaluating our financial performance. Adjusted EBITDA eliminates items that we believe are not part of our core operations, are non-recurring items of revenue or expense, or do not involve a cash outlay, such as stock-related compensation. We consider adjusted EBITDA important in monitoring and evaluating our financial performance on a consistent basis across various periods. We also use adjusted EBITDA as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions.
Adjusted EBITDA is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, important GAAP financial measures including pre-tax income, net income and cash flows from operating activities. Items excluded from adjusted EBITDA are significant and necessary components to the operations of our business; therefore, adjusted EBITDA should only be used as a supplemental measure of our operating performance.
Adjusted EBITDA may be reconciled with net income (loss) as follows:
Quarters Ended September 30,
2010
2009
Adjusted EBITDA:
$               (484,499)
$             590,964
Adjustments to GAAP Net income (loss):
Income tax benefit
-
80,337
Interest expense
(4,241)
(6,034)
Income tax expense
(23,594)
(302,539)
Depreciation and amortization
(89,360)
(87,858)
Non-cash compensation
(41,987)
(68,174)
Net (loss) income
$               (643,681)
$             206,696