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   <TD noWrap align=middle><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>UNITED STATES</FONT></B><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>SECURITIES AND EXCHANGE COMMISSION</FONT></B><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Washington, D.C. 20549</FONT></B><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>__________</FONT></B></TD></TR></TABLE></P>

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   <TD noWrap align=middle><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>FORM 8-K</FONT></B></TD></TR></TABLE></P>

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   <TD noWrap align=middle><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>CURRENT REPORT</FONT></B><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Pursuant to Section 13 or 15(d) of the</FONT></B><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Securities Exchange Act of 1934</FONT></B></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Date of Report (Date of earliest event reported): February 15, 2011</FONT></P>

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   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Investors Capital Holdings, Ltd.</FONT><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE></P>

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   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Delaware</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>333-43664</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>04-3284631</FONT>&nbsp;</TD></TR>

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   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>(State or Other Jurisdiction</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>(Commission</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>(IRS Employer</FONT>&nbsp;</TD></TR>

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   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>of Incorporation)</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>File Number)</FONT>&nbsp;</TD>

   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Identification No.)</FONT>&nbsp;</TD></TR></TABLE></DIV>

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   <TD noWrap align=middle><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>230 Broadway East</FONT><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Lynnfield, MA 01940</FONT><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>(Address of Principal Executive Offices) (Zip Code)</FONT></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: center"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Registrant's telephone number, including area code: (800) 949-1422</FONT></P>

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   <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>obligation of the registrant under any of the following provisions:</FONT><BR><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>[] (Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT><BR><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>[] (Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT><BR><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>[] (Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>2(b))</FONT><BR><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>[] (Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>4(c))</FONT></TD></TR></TABLE></P>

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<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>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" size=3>On February 15, 2011 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 December 31, 2010.</FONT></P>

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   <TD noWrap align=middle><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>SIGNATURES</FONT></B></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>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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   <P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Investors Capital Holdings, Ltd.</FONT></P>

   <P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>By <U>/s/ </U></FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=3><U>Timothy B. Murphy&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" size=3>&nbsp;&nbsp;&nbsp;&nbsp; Timothy B. Murphy, Chief Executive Officer</FONT></P></TD></TR></TABLE></P>

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   <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Date: February 17, 2011</FONT></TD></TR></TABLE></P>

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   <TD noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Exhibit 2.02</FONT></B></TD></TR></TABLE></P>

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   <TD noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>FOR IMMEDIATE RELEASE</FONT></B><BR><BR><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Contact:</FONT></B><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Robert Foney, Chief Marketing Officer</FONT><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>781.477.4814</FONT><BR><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>rfoney@investorscapital.com</FONT><BR><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#0000ff size=3>www.investorscapital.com</FONT></U></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: center"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>Investors Capital Holdings Posts Third-Quarter Profit</FONT></B></P>

<P style="TEXT-ALIGN: center"><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=3>Total revenue, Average Revenue per Rep increase; net capital position strengthens</FONT></I></P>

<P style="TEXT-ALIGN: left"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Lynnfield, Mass. (February 15, 2011) </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>&#8211; Investors Capital Holdings, Ltd. (NYSE Amex: ICH, &#8220;the Company&#8221;), a financial services holding company, posted third quarter net income of $0.35 million on total revenue of $21.43 million for the period ended December 31, 2010 (&#8220;the quarter&#8221;) compared to net income of $0.43 million on total revenue of $21.05 million for the quarter ended December 31, 2009 (&#8220;prior period&#8221;). The Company operates primarily through its wholly-owned subsidiary, Investors Capital Corporation (&#8220;ICC&#8221;), a dually registered broker-dealer and investment advisory firm.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Total revenue for the quarter grew by $0.38 million, or 1.8%, 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 81.5% of total revenue, increased 1.7% to $17.47 million. Advisory fees, which account for 15.2% of total revenue, grew 3.4% to $3.27 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" size=3>&#8220;Our focus continues to be on quality advisors, assets, and profits,&#8221; said Timothy B. Murphy, the Company&#8217;s President and CEO. &#8220;Our net capital position remains strong; the markets and economy are improving; trading volume is increasing. We know where we want to go and how we want to get there. All we have to do is execute.&#8221;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>At quarter end, the firm&#8217;s net capital position strengthened to $2.99 million (an excess of $2.51 million) with a net capital ratio of 2.38:1. 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 &#8220;net capital ratio&#8221;) not to exceed 15 to 1.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Investors Capital continues to benefit from improving the overall quality of its representatives, a key component of the Company&#8217;s strategy for achieving growth in revenues and net income. The firm seeks to continually</FONT></P>

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<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>improve the quality of its representatives by helping them expand their skills and practices, recruiting established, high-quality representatives, and terminating low-quality advisors. The firm&#8217;s average revenue per representative, based on a rolling 12-month period, rose again in the third quarter to $145,153, an increase of 12.5% over $129,006 for the prior rolling 12-month period.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>&#8220;To use a baseball analogy, we&#8217;re not trying to swing for the fences,&#8221; said Murphy. &#8220;Single, single, double is how smart teams produce runs in baseball and profits in business. We are focusing on organic growth, retention, and recruitment of quality advisors to achieve our growth targets for revenues, assets, and profits.&#8221;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Adjusted EBITDA was $0.47 million for the quarter compared to $0.86 million for the prior period. Adjusted EBITDA, a non-GAAP financial 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" size=3>About Investors Capital Holdings, Ltd.:</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Investors Capital Holdings, Ltd. (NYSE Amex: ICH) of Lynnfield, Massachusetts is a financial services holding company that operates primarily through its 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&#8217; 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 size=3>www.investorscapital.com</FONT></U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>.</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&#8217;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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   <P style="TEXT-ALIGN: center"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES<BR></FONT></B><FONT size=2></FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)</FONT></B></P></TD></TR>

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   <TD noWrap align=middle width="20%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

   <TD noWrap align=middle width="1%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=middle width="20%"><B><FONT style="FONT-FAMILY: times new roman" size=2>December 31, 2010</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=middle width="1%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=middle width="20%"><B><FONT style="FONT-FAMILY: times new roman" size=2>March 31, 2010</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=middle width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Assets</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Current Assets</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Cash and cash equivalents</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp; 5,084,390</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp; 5,812,865</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Deposit with clearing organization, restricted</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>175,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>175,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Accounts receivable</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,333,753</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,042,188</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Note receivable - (current)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>108,465</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>140,598</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Loans receivable from registered representatives (current), net of allowance</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,138,383</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>769,263</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Prepaid income taxes</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>364,026</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>559,007</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Securities owned at fair value</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,753</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>57,933</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

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   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Investments</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>50,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>50,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Prepaid expenses</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>641,632</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid; BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>957,674</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>13,898,402</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>14,564,528</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Property and equipment, net</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>675,302</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>774,182</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Long Term Investments</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Loans receivable from registered representatives</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>247,356</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>292,884</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Note receivable</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>495,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>595,000</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Investments</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>206,475</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>184,319</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Non-qualified deferred compensation investment</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,003,504</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>929,897</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Cash surrender value life insurance policies</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>655,047</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>551,398</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,607,382</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,553,498</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Other Assets</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Other assets</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>56,543</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>25,069</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Deferred tax asset, net</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>958,693</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>838,773</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Capitalized software, net</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>102,925</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>138,497</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,118,161</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,002,339</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=middle width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>TOTAL ASSETS</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><B><FONT style="FONT-FAMILY: 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; 18,299,247</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><B><FONT style="FONT-FAMILY: 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;18,894,547</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=middle width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Liabilities and Stockholders' Equity</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Current Liabilities</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Accounts payable</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;1,227,145</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;817,761</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Accrued expenses</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,553,133</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,358,656</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Commissions payable</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,703,163</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>3,488,415</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Notes payable</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>50,784</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,130,922</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Unearned revenues</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,655,431</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>101,931</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Securities sold, not yet purchased, at fair value</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>-</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>5,693</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>7,189,656</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>7,903,378</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Long-Term Liabilities</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Non-qualified deferred compensation plan</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,065,634</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>793,735</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,065,634</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>793,735</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Total liabilities</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>8,255,290</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>8,697,113</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Stockholders' Equity:</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Common stock, $.01 par value, 10,000,000 shares authorized;</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>6,619,748 issued and 6,615,863 outstanding at December 31, 2010;</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>6,595,804 issued and 6,591,919 outstanding at March 31, 2010</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>66,197</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>65,958</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Additional paid-in capital</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>12,231,361</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>12,095,862</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Accumulated deficit</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(2,272,882)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(1,964,084)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Less: Treasury stock, 3,885 shares at cost</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(30,135)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 0px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(30,135)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Accumulated other comprehensive income</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>49,416</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>29,833</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Total stockholders' equity</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>10,043,957</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>10,197,434</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #ffffff 0px solid; BORDER-BOTTOM: #ffffff 0px solid" noWrap align=middle width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><B><FONT style="FONT-FAMILY: 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;18,299,247</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><B><FONT style="FONT-FAMILY: 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; 18,894,547</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

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<TR>

   <TD width="59%"></TD>

   <TD width="20%"></TD>

   <TD width="1%"></TD>

   <TD width="20%"></TD></TR>

<TR vAlign=bottom>

   <TD align=middle width="100%" colSpan=4><B><FONT style="FONT-FAMILY: times new roman" size=2>INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES<BR>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<BR>THREE MONTHS ENDED DECEMBER 31, 2010 AND 2009 (UNAUDITED)</FONT></B></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=middle width="20%"><B><FONT style="FONT-FAMILY: times new roman" size=2>2010</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=middle width="1%"><B><FONT style="FONT-FAMILY: times new roman" size=2></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=middle width="20%"><B><FONT style="FONT-FAMILY: times new roman" size=2>2009</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Revenue:</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Commissions</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;17,469,594</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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; 17,170,742</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Advisory fees</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>3,266,812</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>3,159,770</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Other fee income</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>528,451</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>514,064</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Other revenue</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>161,400</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>206,453</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Total revenue</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>21,426,257</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>21,051,029</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Expenses:</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=left width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=left width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Commissions and advisory fees</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>16,600,763</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>15,998,733</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Compensation and benefits</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>2,157,884</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,820,196</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Regulatory, legal and professional services</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>549,546</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>579,701</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Brokerage, clearing and exchange fees</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>481,837</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>778,837</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Technology and communications</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>311,178</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>287,270</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Marketing and promotion</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>406,945</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>296,180</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Occupancy and equipment</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>232,802</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>202,643</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Other administrative</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>366,757</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>370,018</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2px" noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Interest</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>3,472</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>1,536</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Total operating expenses</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>21,111,184</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>20,335,114</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Operating (loss) income</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>315,073</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>715,915</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Provision for income taxes</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(30,601)</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>287,857</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><B><FONT style="FONT-FAMILY: times new roman" size=2>Net income (loss)</FONT></B><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 345,674</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;428,058</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Basic net income per share</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.05</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;0.07</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Diluted net income per share</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;0.05</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.07</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Basic dividends per common share</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;-</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;-</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Shares used in basic per share calculations</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,566,542</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,514,017</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=4><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD noWrap align=left width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Shares used in diluted per share calculations</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,704,651</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD>

   <TD noWrap align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>6,514,017</FONT><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

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<P style="TEXT-ALIGN: center">

<TABLE>



<TR>

   <TD noWrap align=middle><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=3>Adjusted EBITDA</FONT></B></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: left"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=3>Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization (&#8220;EBITDA&#8221;), adjusted by eliminating 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" size=3>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" size=3>Adjusted EBITDA may be reconciled with net income as follows:</FONT></P>

<P style="TEXT-ALIGN: left">

<TABLE style="WIDTH: 649px; HEIGHT: 303px" borderColor=#ffffff rules=all width=649 border=1>



<TR>

   <TD style="BORDER-TOP: #ffffff 1px solid; BORDER-LEFT: #ffffff 1px solid" width="59%"></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid; BORDER-TOP: #ffffff 1px solid" align=middle width="41%" colSpan=3><STRONG><FONT style="FONT-FAMILY: times new roman" size=2>Quarters Ended December 31,</FONT></STRONG></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=middle width="20%"><STRONG><FONT style="FONT-FAMILY: times new roman" size=2>2010</FONT></STRONG></TD>

   <TD align=middle width="1%"><STRONG><FONT style="FONT-FAMILY: times new roman" size=2></FONT></STRONG></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=middle width="20%"><STRONG><FONT style="FONT-FAMILY: times new roman" size=2>2009</FONT></STRONG></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"></TD>

   <TD align=middle width="20%"></TD>

   <TD align=middle width="1%"></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=middle width="20%"></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Adjusted EBITDA:</FONT></TD>

   <TD align=right width="20%"><FONT style="FONT-FAMILY: 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;473,384</FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: 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; 857,973</FONT></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"></TD>

   <TD align=right width="20%"></TD>

   <TD align=right width="1%"></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Adjustments to obtain GAAP Net income (loss):</FONT></TD>

   <TD align=right width="20%"></TD>

   <TD align=right width="1%"></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Income tax benefit</FONT></TD>

   <TD align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>37,348 </FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>-</FONT></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Interest expense</FONT></TD>

   <TD align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(3,472) </FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(1,536)</FONT></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Income tax expense</FONT></TD>

   <TD align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;(6,746) </FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(287,857)</FONT></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Depreciation and amortization</FONT></TD>

   <TD align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;(107,477)</FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(86,030) </FONT></TD></TR>

<TR height=20>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>&nbsp;&nbsp; Non-cash compensation</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(47,363) </FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%"><FONT style="FONT-FAMILY: times new roman" size=2>(54,492)</FONT></TD></TR>

<TR height=20>

   <TD style="BORDER-LEFT: #ffffff 1px solid" width="59%"></TD>

   <TD align=right width="20%"></TD>

   <TD align=right width="1%"></TD>

   <TD style="BORDER-RIGHT: #ffffff 1px solid" align=right width="20%"></TD></TR>

<TR height=20>

   <TD style="BORDER-LEFT: #ffffff 1px solid; BORDER-BOTTOM: #ffffff 1px solid" width="59%"><FONT style="FONT-FAMILY: times new roman" size=2>Net income (loss)</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="20%"><FONT style="FONT-FAMILY: 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; 345,674 </FONT></TD>

   <TD align=right width="1%"><FONT style="FONT-FAMILY: times new roman" size=2></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="20%"><FONT style="FONT-FAMILY: 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;428,058</FONT></TD></TR></TABLE></P>

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</HTML>
[{"type": "8-K", "sequence": "1", "filename": "eight-k.htm", "description": "8-K", "secsgml_size_bytes": 84610}]
{"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": "11621472"}, "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): February 15, 2011
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 February 15, 2011 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 December 31, 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. Murphy
Timothy B. Murphy, Chief Executive Officer
Date: February 17, 2011
Exhibit 2.02
FOR IMMEDIATE RELEASE
Contact:
Robert Foney, Chief Marketing Officer
781.477.4814
rfoney@investorscapital.com
www.investorscapital.com
Investors Capital Holdings Posts Third-Quarter Profit
Total revenue, Average Revenue per Rep increase; net capital position strengthens
Lynnfield, Mass. (February 15, 2011)
– Investors Capital Holdings, Ltd. (NYSE Amex: ICH, "the Company"), a financial services holding company, posted third quarter net income of $0.35 million on total revenue of $21.43 million for the period ended December 31, 2010 ("the quarter") compared to net income of $0.43 million on total revenue of $21.05 million for the quarter ended December 31, 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 $0.38 million, or 1.8%, 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 81.5% of total revenue, increased 1.7% to $17.47 million. Advisory fees, which account for 15.2% of total revenue, grew 3.4% to $3.27 million. The rise in advisory revenue reflects growth in market asset values, as well as new investment contributions.
"Our focus continues to be on quality advisors, assets, and profits," said Timothy B. Murphy, the Company's President and CEO. "Our net capital position remains strong; the markets and economy are improving; trading volume is increasing. We know where we want to go and how we want to get there. All we have to do is execute."
At quarter end, the firm's net capital position strengthened to $2.99 million (an excess of $2.51 million) with a net capital ratio of 2.38:1. 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 expand 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 third quarter to $145,153, an increase of 12.5% over $129,006 for the prior rolling 12-month period.
"To use a baseball analogy, we're not trying to swing for the fences," said Murphy. "Single, single, double is how smart teams produce runs in baseball and profits in business. We are focusing on organic growth, retention, and recruitment of quality advisors to achieve our growth targets for revenues, assets, and profits."
Adjusted EBITDA was $0.47 million for the quarter compared to $0.86 million for the prior period. 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 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)
December 31, 2010
March 31, 2010
Assets
Current Assets
Cash and cash equivalents
$                                5,084,390
$                                5,812,865
Deposit with clearing organization, restricted
175,000
175,000
Accounts receivable
6,333,753
6,042,188
Note receivable - (current)
108,465
140,598
Loans receivable from registered representatives (current), net of allowance
1,138,383
769,263
Prepaid income taxes
364,026
559,007
Securities owned at fair value
2,753
57,933
Investments
50,000
50,000
Prepaid expenses
641,632
957,674
13,898,402
14,564,528
Property and equipment, net
675,302
774,182
Long Term Investments
Loans receivable from registered representatives
247,356
292,884
Note receivable
495,000
595,000
Investments
206,475
184,319
Non-qualified deferred compensation investment
1,003,504
929,897
Cash surrender value life insurance policies
655,047
551,398
2,607,382
2,553,498
Other Assets
Other assets
56,543
25,069
Deferred tax asset, net
958,693
838,773
Capitalized software, net
102,925
138,497
1,118,161
1,002,339
TOTAL ASSETS
$                           18,299,247
$                           18,894,547
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$                                1,227,145
$                                   817,761
Accrued expenses
1,553,133
2,358,656
Commissions payable
2,703,163
3,488,415
Notes payable
50,784
1,130,922
Unearned revenues
1,655,431
101,931
Securities sold, not yet purchased, at fair value
-
5,693
7,189,656
7,903,378
Long-Term Liabilities
Non-qualified deferred compensation plan
1,065,634
793,735
1,065,634
793,735
Total liabilities
8,255,290
8,697,113
Stockholders' Equity:
Common stock, $.01 par value, 10,000,000 shares authorized;
6,619,748 issued and 6,615,863 outstanding at December 31, 2010;
6,595,804 issued and 6,591,919 outstanding at March 31, 2010
66,197
65,958
Additional paid-in capital
12,231,361
12,095,862
Accumulated deficit
(2,272,882)
(1,964,084)
Less: Treasury stock, 3,885 shares at cost
(30,135)
(30,135)
Accumulated other comprehensive income
49,416
29,833
Total stockholders' equity
10,043,957
10,197,434
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$                           18,299,247
$                           18,894,547
INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 2010 AND 2009 (UNAUDITED)
2010
2009
Revenue:
Commissions
$                              17,469,594
$                              17,170,742
Advisory fees
3,266,812
3,159,770
Other fee income
528,451
514,064
Other revenue
161,400
206,453
Total revenue
21,426,257
21,051,029
Expenses:
Commissions and advisory fees
16,600,763
15,998,733
Compensation and benefits
2,157,884
1,820,196
Regulatory, legal and professional services
549,546
579,701
Brokerage, clearing and exchange fees
481,837
778,837
Technology and communications
311,178
287,270
Marketing and promotion
406,945
296,180
Occupancy and equipment
232,802
202,643
Other administrative
366,757
370,018
Interest
3,472
1,536
Total operating expenses
21,111,184
20,335,114
Operating (loss) income
315,073
715,915
Provision for income taxes
(30,601)
287,857
Net income (loss)
$                                   345,674
$                                   428,058
Basic net income per share
$                                         0.05
$                                         0.07
Diluted net income per share
$                                         0.05
$                                         0.07
Basic dividends per common share
$                                               -
$                                               -
Shares used in basic per share calculations
6,566,542
6,514,017
Shares used in diluted per share calculations
6,704,651
6,514,017
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted by eliminating 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 as follows:
Quarters Ended December 31,
2010
2009
Adjusted EBITDA:
$                         473,384
$                         857,973
Adjustments to obtain GAAP Net income (loss):
Income tax benefit
37,348
-
Interest expense
(3,472)
(1,536)
Income tax expense
(6,746)
(287,857)
Depreciation and amortization
(107,477)
(86,030)
Non-cash compensation
(47,363)
(54,492)
Net income (loss)
$                         345,674
$                         428,058