Item 7. of Form 10-KSB
filed on September 13, 2007.
Reclassifications
Certain
amounts in the 2006 Consolidated Condensed Financial Statements have been
reclassified to be consistent with the presentation in the Consolidated
Condensed Financial Statements as of November 30, 2007 and for the three and
six
month periods then ended. These reclassifications had no impact on
previously reported net income, cash flow from operations or changes in
shareholder equity.
Liquidity
and Going Concern
These
financial statements are presented on the basis that the Company is a going
concern. Going concern contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business over a reasonable
length of time. The Company incurred operating losses (after
accretion of mandatorily redeemable convertible preferred stock, including
accrued dividends) of approximately $2,661,000 and $1,874,000 for the years
ended May 31, 2007 and 2006 and has incurred losses of approximately $679,500
and $1,253,500 for the three and six month periods ended November 30,
2007. Losses are expected to continue until the Company’s insurance
company subsidiary, First Surety Corporation (“FSC”) develops substantial
business. While improvement is anticipated as the business plan is
implemented, restrictions on the use of FSC’s assets (See Management’s
Discussion and Analysis), the Company’s significant deficiency in working
capital and stockholders’ equity raise substantial doubt about the Company’s
ability to continue as a going concern.
Management
intends to continue with steps it has taken to improve cash flow through the
implementation of its business plan. Additionally, management
continues to seek to raise additional funds for operations through private
placements of stock, other long-term or permanent financing, or short-term
borrowings. However, the Company cannot be certain that it will be
able to continue to obtain adequate funding in order to reasonably predict
whether it will be able to continue as a going concern. The
accompanying financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
F-6
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note
B – Recent Accounting Pronouncements
In
December 2004, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standard (“SFAS”) No. 123R
“Share-Based Payment” (“SFAS 123R”), a revision to SFAS No. 123
“Accounting for Stock-Based Compensation” (“SFAS 123”), and superseding APB
Opinion No. 25 “Accounting for Stock Issued to Employees” and its related
implementation guidance. SFAS 123R establishes standards for the
accounting for transactions in which an entity exchanges its equity instruments
for goods or services, including obtaining employee services in share-based
payment transactions. SFAS 123R applies to all awards granted after
the required effective date and to awards modified, repurchased, or cancelled
after that date. Adoption of the provisions of SFAS 123R is effective as of
the
beginning of the first annual reporting period that begins after June 15,
2005. JFG has adopted the provisions of SFAS 123R with respect to its
stock-based compensation plan.
In
December 2004, the FASB issued FASB Statement No. 153 “Exchanges of Nonmonetary
Assets-an amendment of APB Opinion No. 29”. This Statement addresses
the measurement of exchanges of nonmonetary assets. The guidance in
APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based
on the principle that exchanges of nonmonetary assets should be measured based
on the fair value of the assets exchanged. The guidance in that
Opinion, however, included certain exceptions to that principle. This
Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges
of similar productive assets and replaces it with a general exception for
exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the
future cash flows of the entity are expected to change significantly as a result
of the exchange. This Statement is effective for financial statements
for fiscal years beginning after June 15, 2005. Earlier application was
permitted for nonmonetary asset exchanges incurred during fiscal years beginning
after the date of this Statement was issued. The adoption of
the provisions of SFAS No. 153 did not have a material impact on the Company’s
results of operations or financial position.
In
June
2005, the FASB issued Statement 154, “Accounting Changes and Error Corrections”
which replaces APB Opinion 20 and FASB Statement 3. Statement 154
changes the requirements for the accounting and reporting of a change in
accounting principle. Opinion 20 previously required that most
voluntary changes in accounting principles be recognized by including the
cumulative effect of the new accounting principle in net income of the period
of
change. Statement 154 now requires retrospective application of
changes in accounting principle to prior period financial statements, unless
it
is impractical to determine either the period-specific effects or the cumulative
effect of the change. The statement was effective for fiscal years beginning
after December 15, 2005. The adoption of the provisions of SFAS No. 154
did not have a material impact on the Company’s results of operations or
financial position.
F-7
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
In
February 2006, FASB issued SFAS No. 155 “Accounting for Certain Hybrid Financial
Instruments-an amendment of FASB Statements No. 133 and 140”. This
statement addresses accounting issues relating to beneficial interests in
securitized financial assets. This Statement is effective for all
financial instruments acquired or issued after the beginning of an entity’s
first fiscal year that begins after September 15, 2006. The adoption
of the provisions of SFAS No. 155 did not have a material impact on the
Company’s results of operations or financial position.
In
March
2006, FASB issued SFAS No. 156 “Accounting for Servicing of Financial Assets-an
amendment of FASB Statement No. 140”. This statement addresses
accounting for separately recognized servicing assets and servicing liabilities
when an entity undertakes a contract to service financial assets. This Statement
is to be adopted as of the beginning of the first fiscal year that begins after
September 15, 2006. The adoption of the provisions of SFAS No. 156
did not have a material impact on the Company’s results of operations or
financial position.
In
September 2006, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (“SFAS”) No. 157 “Fair Value Measurements” and
SFAS No. 158 “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106 and
132(R)”.
SFAS
No.
157 defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosuresabout fair
value measurements. The Statement does not require any new fairvalue
measurements, however, for some entities, the application of this Statement
will
change current practice. This Statement is to be adopted for fiscal
years beginning after November 15, 2007, and interim periods within those fiscal
years. Management does not expect the adoption of the provisions of SFAS No.
157
to have a material impact on the Company’s results of operations or financial
position.
SFAS
No.
158 requires employers to recognize the overfunded or underfunded status of
a
defined benefit postretirement plan (other than a multiemployerplan) as an
asset
or liability in its statement of financial position and to recognize changes
in
that funded status in the year in which the changes occur through comprehensive
income of a business entity. The Company does not currently provide
any defined benefit postretirement plans, and accordingly, the provisions of
SFAS No. 158 will have no material impact on the Company’s results of operations
or financial position.
In
September 2006, the Securities and Exchange Commission issued Staff Accounting
Bulletin (SAB) No. 108 “Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements.” SAB
108 provides guidance on the consideration of the effects of prior year
misstatements in quantifying current year misstatements for the purpose of
a
materiality assessment. SAB 108 is effective for fiscal years ending
after November 15, 2006. The application of SAB 108 did not have a
material impact on the Company’s results of operations or financial
position.
F-8
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
In
February 2007, the FASB issued SFAS No. 159 “The Fair Value Option for Financial
Assets and Financial Liabilities—including an amendment of FASB Statement No.
115.” This Statement permits entities to choose to measure many
financial instruments and certain other items at fair value. Such
items include recognized financial assets and financial liabilities, firm
commitments that involve only financial instruments, nonfinancial insurance
contracts and warranties that the insurer can settle by paying a third party
to
provide these goods or services and host financial instruments resulting from
separation of an embedded nonfinancial derivative instrument from a nonfinancial
hybrid instrument. The objective of the Statement is to improve
financial reporting by providing entities with the opportunity to mitigate
volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. This Statement is effective for fiscal years beginning
after November 15, 2007 although early adoption is
permitted. Management does not expect the application of SFAS
No. 159 to have a material impact on the Company’s results of operations or
financial position.
In
June
2006, Financial Accounting Standards Board Interpretation (FIN) No.
48“Accounting for Uncertainty in Income Taxes” was issued and interprets FASB
Statement No. 109 “Accounting for Income Taxes.” FIN No. 48
establishes the accounting for uncertain tax positions, including recognition
and measurement of their financial statement effects. FIN No. 48 is
effective for fiscal years beginning after December 15, 2006. The
Company has significant operating loss carryforwards, the benefits of which
having been fully reserved by a valuation allowance of the same amount due
to
uncertainty as to the likelihood of ultimate realization. Management
has evaluated the implications of FIN No. 48 and has determined that the
application of FIN 48 did not result in any material impact on the Company’s
results of operations or financial position.
In
December 2007, the FASB issued a revised Statement No. 141 (revised 2007)
“Business Combinations” and Statement No. 160 “Non-controlling Interests in
Consolidated Financial Statements – an amendment of Accounting Research Bulletin
No. 51”.
Statement
No. 141 was revised to improve the relevance, representational faithfulness,
and
comparability of the information that a reporting entity provides in its
financial report about a business combination and its effects. The
Statement establishes principles and requirements for how the acquirer: a)
recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed, and any noncontrolling interest in the
acquiree; b) recognizes and measures the goodwill acquired in the
business combination or a gain from a bargain purchase; and c) determines what
information to disclose to enable users of the financial statements to evaluate
the nature and financial effects of the business combination. While
the Statement retains the fundamental requirement that the acquisition or
purchase method of accounting be used for all business combinations, it replaces
the cost-allocation process that resulted in not recognizing some assets and
liabilities at the acquisition date and measuring some assets and liabilities
at
amounts other than fair market value at the acquisition date. Among
other matters, the revised Statement requires that acquisition-related and
restructuring costs be recognized separately from the business combination
as
expenses in the periods in which the costs are incurred and provides that
“bargain purchases” (those business combinations in which the total
acquisition-date fair value of the identifiable net assets acquired exceeds
the
fair value of the consideration transferred plus any non-controlling, or
minority, interest in the acquiree) be
F-9
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
recognized
in the earnings of the acquirer as a gain. This Statement applies
prospectively to business combinations for which the acquisition date is on
or
after the beginning of the first annual reporting period beginning on or after
December 15, 2008. Earlier adoption is prohibited.
Statement
No. 160 was issued to improve the relevance, comparability, and transparency
of
financial information for the reporting entity by establishing accounting and
reporting standards attributable to noncontrolling, or
minority, interests in subsidiaries included in the reporting
entity’s consolidated financial statements. This Statement clarifies
that a noncontrolling interest in a subsidiary is an ownership interest in
the
consolidated entity that should be reported as equity in the consolidated
financial statements and requires consolidated net income to be reported at
amounts that include amounts attributable to both the parent and the
noncontrolling interest. The Statement also provides a single method
for accounting for changes in the parent’s ownership interest in a subsidiary
that does not result in deconsolidation, as well as recognition of gain or
loss
when a subsidiary is deconsolidated as a result of an ownership change in which
the parent ceases to have a controlling financial interest in the subsidiary,
and expanded disclosures to clearly identify and distinguish between the
interests of the parent’s owners and the interests of the noncontrolling owners
of a subsidiary. This Statement is effective for fiscal years, and
interim periods within those fiscal years, beginning on or after December 15,
2008. Earlier adoption is prohibited. This Statement shall
be applied prospectively as of the beginning of the fiscal year in which this
Statement is initially applied, except for the presentation and disclosure
requirements, which shall be applied retrospectively for all periods
presented. Management does not expect the application of Statement
No. 160 to have a material impact on the Company’s results of operations or
financial position.
In
November 2007, the Securities and Exchange Commission issued Staff Accounting
Bulletin (SAB) No. 109 “Written Loan Commitments Recorded at Fair Value Through
Earnings.” SAB 109 provides that consistent with the guidance in SFAS
No. 156 “Accounting for Servicing of Financial Assets” and SFAS No. 159 “The
Fair Value Option for Financial Assets and Financial Liabilities”, the expected
net future cash flows related to the associated servicing of the loan should
be
included in the measurement of all written loan commitments that are accounted
for at fair value through earnings. SAB 109 is to be applied on a
prospective basis to derivative loan commitments issued or modified in fiscal
quarters beginning after December 15, 2007. The application of SAB
109 is not expected to have a material impact on the Company’s results of
operations or financial position.
In
December 2007, the Securities and Exchange Commission issued Staff Accounting
Bulletin (SAB) No. 110 “Shared Based Payment”. SAB 110 expresses the
views, that under certain circumstances, the staff will continue to accept
the
use of a “simplified method” in developing an estimate of the expected term of
“plain vanilla” share options in accordance with SFAS No. 123 “Shared-Based
Payment” for share option grants issued after December 31,
2007. Examples of such circumstances might include those in which the
company does not have sufficient historical share option exercise experience
upon which to estimate an expected term, situations where historical exercise
data may no longer provide a reasonable basis upon which to estimate an expected
term, or situations where more relevant detailed information (employee exercise
patterns by industry and/or other categories of companies) is not widely
available. The
F-10
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
application
of SAB 110 is not expected to have a material impact on the Company’s results of
operations or financial position.
Note
C
– Investments
In
the
three-month period ended November 30, 2007, an equity investment in the amount
of $25,000 was made in the Jacobs & Company Mutual Fund by its investment
advisor, Jacobs & Company, and is recorded in other assets at market
value.
In
the
three-month period ended November 30, 2007, the Company reclassified investments
in debt securities of Federal National Mortgage Association (“FNMA” or “Fannie
Mae”) previously classified as held-to-maturity to the available-for-sale
classification in response to uncertainties attributable to the slumping U.S.
mortgage and housing markets and its potential effect on the issuer’s financial
condition.
The
following table sets forth the amortized cost and estimated market value of
bonds and equity securities available-for-sale and carried at market value
on
November 30, 2007.
|
November
30, 2007
|
||||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair
Market Value
|
|||||||||||||
|
U.S.
government agencies
|
$ |
828,653
|
$ |
1,497
|
$ |
-
|
$ |
830,150
|
||||||||
|
Equity
securities
|
$ |
25,000
|
-
|
|
24,764
|
|||||||||||
| $ |
853,653
|
$ |
1,497
|
$ |
|
$ |
854,914
|
|||||||||
The
gross
realized loss on available-for-sale securities sold in the three-month period
ended November 30, 2007 is as follows:
|
Proceeds
from sale of security
|
$ |
169,330
|
||
|
Amortized
cost of security sold
|
(169,881 | ) | ||
|
Loss
on sale of security
|
$ | (551 | ) |
F-11
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note
D
– Notes Receivable
In
the
three-month period ended November 30, 2007, the Company made a short-term loan
in the amount of $50,000 to a non-related party business that provides services
to the Company. The Note is unsecured and bears interest at the rate
of 10.00% per annum with a maturity date of January 31, 2008. The
Note is personally guaranteed by the principal of the business.
Note
E
– Other Assets
Included
in other assets as of November 30, 2007 are advance deposits of approximately
$329,000 and deferred costs of $68,000 for professional fees relating to certain
equity financing matters the Company contemplates undertaking in the next six
months.
Note
F
– Notes Payable and Advances from Related Party
In
the
three-month period ended August 31, 2007, the Company borrowed $150,000 from
individuals and closely-held companies under unsecured demand notes bearing
interest rates at 10.00% per annum and issued 100,000 shares of its common
stock
as additional consideration for the extension of such credit. The
Company repaid outstanding unsecured advances from its largest shareholder
and
CEO as of May 31, 2007 in the amount of $15,763, and subsequently received
unsecured advances amounting to $127,200. Proceeds from such
borrowings and advances were used to fund on-going operations.
In
the
three-month period ended November 30, 2007, the Company borrowed $2,300,000
in
the aggregate from a group of individuals to provide interim bridge-financing
until a larger, more permanent financing the Company contemplates undertaking
is
consummated.
The
Company repaid $130,000 of demand note borrowings and $127,200 of advances
from
its largest shareholder and CEO from proceeds obtained from this
bridge-financing.
F-12
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
At
November 30, 2007, the Company had the following unsecured notes payable to
individuals and a commercial bank:
|
Unsecured
demand notes payable to individuals; interest rate fixed @
10.00%.
|
$ |
95,000
|
||
|
Unsecured
note payable to individuals maturing December 31, 2007; interest
payable
calendar quarterly; interest rate fixed @ 10.00%.
|
49,985
|
|||
|
Unsecured
notes payable (bridge-financing) to a group of individuals due in
full
upon consummation by Company of a qualified equity offering providing
net
proceeds of at least $50 million; or if such a qualified equity offering
is not consummated by the six-month anniversary date of the notes
(March
10, 2008), accrued interest-to-date shall be payable, with quarterly
installments of principal and interest in the amount of $149,437
commencing June 10, 2008; interest rate fixed @ 10.00%
|
2,325,000
|
|||
|
Furthermore,
upon retirement of note upon consummation of a qualified equity offering,
the Company shall issue 4.65% of the Company’s outstanding common shares
immediately following such offering as additional consideration;
in the
event that consummation of a qualified equity offering is not achieved
by
March 10, 2008, then the Company shall issue 4.65% of the Company’s
outstanding common shares at such date and shall issue 1.86% of the
Company’s outstanding common shares upon each six-month anniversary date
thereof until retirement of the notes. (See Note I-Subsequent
Events)
|
||||
|
Unsecured
term note payable to commercial bank in the original amount of $250,000
and payable in equal monthly payments of $5,738; interest rate fixed
@
13.25%
|
219,503
|
|||
| $ |
2,689,488
|
Scheduled
maturities and principal payments for each of the next six years ending November
30 are as follows:
|
2008
(including demand notes)
|
$ |
371,198
|
||
|
|
444,761
|
|||
|
|
493,076
|
|||
|
|
546,695
|
|||
|
|
545,818
|
|||
|
|
287,940
|
|||
| $ |
2,689,488
|
F-13
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note
G – Other Liabilities
The
Company had been delinquent in paying certain of its payroll tax
obligations for periods ending on or before December 31,
2005. At August 31, 2007, the Company’s liability, including
estimates for penalties and interest, approximated $516,000. In the
three-month period ended November 30, 2007, the Company entered into
negotiations for the repayment and settlement of this obligation with the
Internal Revenue Service. In conjunction with such negotiations, the
Company made a payment of approximately $173,000 towards the tax portion of
this
obligation leaving an estimated liability of approximately $344,500 as of
November 30, 2007. Subsequent to November 30, 2007, the Company made
an additional payment of approximately $229,000 to be applied to the remaining
tax and interest due and has requested an abatement of all penalties relating
to
this matter. The Company is awaiting a final decision with regard to
this matter.
Note
H – Mandatorily Redeemable Preferred Stock and Common
Stock
In
the
six-month period ended November 30, 2007, the Company issued an additional
25
shares of Series B Preferred Stock and 25,000 shares of the Company’s common
stock as additional consideration, in exchange for cash in the amount of
$25,000. As of November 30, 2007, the Company has 319.401 shares of
Series B Preferred stock authorized and available for issue.
Note
I – Subsequent Events
Subsequent
to November 30, 2007, the Company borrowed an additional $75,000 and has
received a commitment for an additional $100,000 borrowing to be funded by
no
later than February 28, 2008. Such borrowings are identical in terms
to the bridge-financing arrangements more fully described in Note F-Notes
Payable. In total (together with the bridge-financing of $2,325,000
as of November 30, 2007), bridge-financing will amount to
$2,500,000. Accordingly, if a qualified equity offering is not
consummated by the six-month anniversary date of the notes (March 2008), accrued
interest-to-date shall be payable, with quarterly installments of principal
and
interest in the aggregate amount of $160,685 commencing in June 2008.
Furthermore, upon retirement of the notes upon consummation of a qualified
equity offering, the Company shall issue a total of 5.00% of the Company’s
outstanding common shares immediately following such offering as additional
consideration; in the event that consummation of a qualified equity offering
is
not achieved by March 2008, then the Company shall issue a total of 5.00% of
the
Company’s outstanding common shares at such date and shall issue a total of
2.00% of the Company’s outstanding common shares upon each six-month anniversary
date thereof until retirement of the notes.
F-14
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
On
December 3, 2007, the Company entered into an agreement ( the “December 3
Agreement) with National Indemnity Company (“National Indemnity”) to purchase
all of the outstanding shares of Unione Italiana Insurance Company of America
(“Unione”) for a purchase price of $2.75 million plus the surplus of Unione on
the date of the closing. Unione is a New York Corporation with
insurance licenses in 26 states. Prior to closing, National Indemnity
will enter into a reinsurance agreement with Unione under which National
Indemnity will reinsure all liabilities of Unione under contracts of insurance
and reinsurance arising prior to closing. Among other conditions,
closing is subject to applicable regulatory approvals, including approval by
the
New York Superintendent of Insurance. Either party may terminate the
December 3 Agreement if the closing does not take place on or prior to June
30,
2008. The Company has made a nonrefundable deposit (except for
failure by National Indemnity or Unione to meet certain required conditions
for
closing) to National Indemnity in the amount of $75,000 which amount will be
applied towards the purchase price at closing.
By
Agreement dated December 5, 2007 (the “Engagement Agreement”), the Company
engaged an investment bank (the “Bank”) to act as placement agent/financial
advisor with respect to certain equity financing matters. The Bank
will be entitled to a retainer of $250,000 ($150,000 of which has been paid
in
connection with the execution of the Engagement Agreement) and fees equal to
7%
of the gross proceeds raised, against which the retainer will be credited,
as
well as reimbursement for expenses. The term of the Engagement
Agreement is 12 months, but subject to termination by either party upon 10
days
notice to the other, subject to certain tail obligations.
On
December 14, 2007, the Company entered into an agreement (the “December 14
Agreement”) with Reclamation Surety Holding Company, Inc. (“RSH”) to acquire by
merger (the “Merger”) all of the business and assets of RSH, including the stock
of RSH’s subsidiaries, Cumberland Surety, Inc. (“Cumberland”) and NewBridge
Services, Inc. (“NewBridge”) for a purchase price of $3,400,000, less certain
indebtedness of RSH (the “Merger Consideration”). The Merger
Consideration is payable in stock of the Company or, at the election of certain
non-employee shareholders, cash. Currently, NewBridge performs
certain surety underwriting services for the Company’s subsidiary, First Surety
Corporation. Among other conditions, closing is subject to, and will
take place following, the closing by the Company of an equity
financing. Either party may terminate the December 14 Agreement if
the closing does not take place on or prior to June 30, 2008. The
parties contemplate entering into a definitive agreement with respect to the
Merger that will supersede the December 14 Agreement. Upon execution
of the definitive agreement, the Company will make a nonrefundable deposit
in
the amount of $50,000 for the benefit of the RSH shareholders, which amount
will
be applied toward the Merger Consideration at closing.
On
December 31, 2007, the Company elected to continue to defer payment of dividends
on its Series A Preferred stock and Series B Preferred stock with such accrued
and unpaid dividends amounting to $15,900 and $221,870, respectively. As of
December 31, 2007, the accumulated accrued and unpaid dividend on the Series
A
Preferred stock and Series B Preferred stock amounted to $101,803 and
$1,603,007, respectively.
F-15
Jacobs
Financial Group, Inc.
NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note
J – Segment Reporting
The
Company has two reportable segments, investment advisory services and surety
insurance products and services. The following table presents revenue
and other financial information by industry segment.
|
Three-Month
Period Ended
|
||||||||
|
Industry
Segment
|
November
30,
2007
|
November
30,
2006
|
||||||
|
Revenues:
|
||||||||
|
Investment
advisory
|
$ |
63,299
|
$ |
66,128
|
||||
|
Surety
insurance
|
145,042
|
126,449
|
||||||
|
Corporate
|
5,814
|
-
|
||||||
|
Total
revenues
|
$ |
214,155
|
$ |
192,577
|
||||
|
Net
Income (Loss):
|
||||||||
|
Investment
advisory
|
$ | (55,566 | ) | $ | (105,644 | ) | ||
|
Surety
insurance
|
10,388
|
(25,084 | ) | |||||
|
Corporate
|
(270,224 | ) | (232,463 | ) | ||||
|
Total
net income (loss)
|
$ | (315,402 | ) | $ | (363,191 | ) | ||
|
Six-Month
Period Ended
|
||||||||
|
Industry
Segment
|
November
30,
2007
|
November
30,
2006
|
||||||
|
Revenues:
|
||||||||
|
Investment
advisory
|
$ |
129,622
|
$ |
150,628
|
||||
|
Surety
insurance
|
290,117
|
252,547
|
||||||
|
Corporate
|
5,814
|
-
|
||||||
|
Total
revenues
|
$ |
425,553
|
$ |
403,175
|
||||