Delaware
|
|
11-2936371
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(IRS
Employer
Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated filer (Do not check if a smaller reporting company) ▪o
|
Smaller Reporting Company
x
|
PART I
|
|||
Item 1.
|
Business
|
|
1
|
Item 1A.
|
Risk
Factors
|
10
|
|
Item 1B.
|
Unresolved
Staff Comments
|
20
|
|
Item 2.
|
Properties
|
20
|
|
Item 3.
|
Legal
Proceedings
|
21
|
|
Item 4.
|
Submission
of Matters to a Vote of Stockholders
|
25
|
|
PART II
|
|||
Item 5.
|
Market
for Registrant’s Common Stock and Related Stockholder
Matters
|
25
|
|
Item 6.
|
Selected
Financial Data
|
27
|
|
Item 7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
28
|
|
Item 7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
43
|
|
Item 8.
|
Financial
Statements and Supplementary Data
|
44
|
|
Item 9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
78
|
|
Item 9A.
|
Controls
and Procedures
|
78
|
|
Item 9B.
|
Other
Information
|
78
|
|
PART III
|
|||
Item
10.
|
Directors
and Executive Officers of the Registrant
|
80
|
|
Item 11.
|
Executive Compensation
|
83
|
|
Item 12.
|
Security Ownership
of Certain Beneficial Owners and Management
|
86
|
|
Item 13.
|
Certain
Relationships and Related Transactions
|
89
|
|
Item 14.
|
Principal Accounting Fees And Services
|
89
|
|
PART IV
|
|||
Item 15.
|
Exhibits
and Financial Statement Schedules
|
90
|
·
|
variations
in quarterly operating results;
|
|
·
|
announcements
of significant contracts, milestones, acquisitions;
|
|
·
|
relationships
with other companies;
|
|
·
|
ability
to obtain needed capital commitments;
|
|
·
|
additions
or departures of key personnel;
|
|
·
|
sales
of common stock, conversion of securities convertible into common stock,
exercise of options and warrants to purchase common stock or termination
of stock transfer restrictions;
|
|
·
|
general
economic conditions, including conditions in the securities brokerage and
investment banking markets;
|
|
·
|
changes
in financial estimates by securities analysts; and
|
|
·
|
fluctuation
in stock market price and volume.
|
High
|
Low
|
|||||||
2008
|
||||||||
Fourth
Quarter
|
$
|
1.02
|
$
|
0.40
|
||||
Third
Quarter
|
1.57
|
0.93
|
||||||
Second
Quarter
|
4.10
|
1.19
|
||||||
First
Quarter
|
5.94
|
3.91
|
||||||
2007
|
||||||||
Fourth
Quarter
|
$
|
5.50
|
$
|
3.90
|
||||
Third
Quarter
|
5.45
|
3.44
|
||||||
Second
Quarter
|
6.15
|
3.86
|
||||||
First
Quarter
|
5.79
|
3.95
|
Plan Category
|
Number of
Securities to
be Issued
Upon
Exercise of
Outstanding
Options and
Warrants
|
Weighted
Average
Exercise
Price of
Outstanding
Options and
Warrants
|
Number of
Securities
Remaining
Available For
Future
Issuance
Under Equity
Compensation
Plans
|
|||||
Equity
compensation plans approved by stockholders:
|
||||||||
1999
Stock Option Plan
|
77,019
|
$
|
4.47
|
273,096
|
||||
2000
Stock Option and Incentive Plan
|
174,154
|
$
|
5.23
|
398,396
|
||||
2001
Stock Option and Incentive Plan
|
103,013
|
$
|
2.83
|
412,973
|
||||
2003
Stock Option and Incentive Plan
|
798,752
|
$
|
4.76
|
3,211,948
|
||||
2006
Directors’ Stock Option and Incentive Plan
|
—
|
$
|
—
|
103,907
|
||||
2002
Employee Stock Purchase Plan
|
—
|
$
|
—
|
—
|
||||
Equity
compensation not approved by stockholders
|
63,098
|
$
|
23.40
|
176,189
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Statement
of operations data:
|
||||||||||||||||||||
Revenue
|
$
|
36,567,836
|
$
|
83,748,265
|
$
|
51,818,638
|
$
|
43,184,315
|
$
|
38,368,310
|
||||||||||
Operating
expenses
|
62,979,424
|
70,701,900
|
58,315,930
|
44,912,772
|
36,194,924
|
|||||||||||||||
Operating
(loss) income
|
(26,411,588
|
)
|
13,046,365
|
(6,497,292
|
)
|
(1,728,457
|
)
|
2,173,386
|
||||||||||||
Loss
on retirement of convertible notes payable (1)
|
—
|
—
|
(1,348,805
|
)
|
—
|
—
|
||||||||||||||
Interest
income
|
375,949
|
461,491
|
484,909
|
446,273
|
120,431
|
|||||||||||||||
Interest
expense
|
(72,304
|
)
|
(134,868
|
)
|
(535,014
|
)
|
(76,103
|
)
|
(169,787
|
)
|
||||||||||
Income
tax benefit (expense)
|
1,635,214
|
(2,462,165
|
)
|
—
|
(142,425
|
)
|
(249,744
|
)
|
||||||||||||
(Loss)
income from continuing operations
|
(24,472,729
|
)
|
10,910,823
|
(7,896,202
|
)
|
(1,500,712
|
)
|
1,874,286
|
||||||||||||
Loss
from discontinued operations
|
(5,801,076
|
)
|
(1,587,788
|
)
|
(324,213
|
)
|
(13,731
|
)
|
—
|
|||||||||||
Net
(loss) income
|
$
|
(30,273,805
|
)
|
$
|
9,323,035
|
$
|
(8,220,415
|
)
|
$
|
(1,514,443
|
)
|
$
|
1,874,286
|
|||||||
Basic
(loss) income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.95
|
$
|
(0.79
|
)
|
$
|
(0.16
|
)
|
$
|
0.21
|
|||||||
Diluted
(loss) income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.86
|
$
|
(0.79
|
)
|
$
|
(0.16
|
)
|
$
|
0.16
|
|||||||
Statement
of financial condition data:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
6,358,128
|
$
|
31,653,657
|
$
|
13,746,590
|
$
|
11,138,923
|
$
|
17,459,113
|
||||||||||
Marketable
securities owned
|
4,622,577
|
14,115,022
|
7,492,914
|
8,627,543
|
2,342,225
|
|||||||||||||||
Total
assets
|
18,865,590
|
64,573,331
|
30,498,213
|
27,694,413
|
25,007,824
|
|||||||||||||||
Capital
lease obligations
|
923,683
|
721,380
|
1,292,378
|
883,993
|
452,993
|
|||||||||||||||
Notes
payable, net
|
—
|
238,989
|
325,650
|
408,513
|
1,487,728
|
|||||||||||||||
Stockholders’
equity
|
$
|
7,715,201
|
$
|
34,806,048
|
$
|
16,215,020
|
$
|
18,403,001
|
$
|
16,733,850
|
(1)
|
In
December 2006, Merriman Curhan Ford Group, Inc. repaid the $7.5 million
variable rate secured convertible note, issued to Midsummer Investment,
Ltd, or Midsummer, in March 2006. Midsummer retained the stock warrant to
purchase 267,858 shares of our common stock. The loss on repayment of the
convertible note consists of the write-off of the unamortized discount
related to the stock warrant as well as the write-off the unamortized debt
issuance costs.
|
1.
|
Reduce
operating costs
|
2.
|
Shed
non-essential operations
|
3.
|
Negotiate
a settlement of pending litigations
|
4.
|
Raise
additional capital
|
2008
|
2007
|
2006
|
||||||||||
Revenue:
|
||||||||||||
Commissions
|
$
|
33,678,706
|
$
|
31,681,563
|
$
|
30,105,085
|
||||||
Principal
transactions
|
(9,040,218
|
)
|
20,116,392
|
(171,055
|
)
|
|||||||
Investment
banking
|
11,432,454
|
30,138,783
|
21,190,786
|
|||||||||
Advisory
and other fees
|
496,894
|
1,811,527
|
693,822
|
|||||||||
Total
revenue
|
36,567,836
|
83,748,265
|
51,818,638
|
|||||||||
Operating
expenses:
|
||||||||||||
Compensation
and benefits
|
36,670,457
|
53,669,449
|
42,840,431
|
|||||||||
Brokerage
and clearing fees
|
3,042,133
|
2,635,328
|
2,614,513
|
|||||||||
Professional
services
|
9,161,729
|
2,785,414
|
2,441,417
|
|||||||||
Occupancy
and equipment
|
2,303,944
|
1,638,353
|
1,665,410
|
|||||||||
Communications
and technology
|
3,762,954
|
3,405,411
|
2,969,872
|
|||||||||
Depreciation
and amortization
|
705,883
|
681,756
|
645,129
|
|||||||||
Travel
and business development
|
2,921,196
|
2,499,768
|
2,738,393
|
|||||||||
Other
|
4,411,128
|
3,386,421
|
2,400,765
|
|||||||||
Total
operating expenses
|
62,976,424
|
70,701,900
|
58,315,930
|
|||||||||
Operating
(loss) income
|
(26,411,588
|
)
|
13,046,365
|
(6,497,292
|
)
|
|||||||
Loss
on retirement of convertible note payable
|
—
|
—
|
(1,348,805
|
)
|
||||||||
Interest
income
|
375,949
|
461,491
|
484,909
|
|||||||||
Interest
expense
|
(72,304
|
)
|
(134,868
|
)
|
(535,014
|
)
|
||||||
(Loss)
income from continuing operations before income taxes
|
(26,107,943
|
)
|
13,372,988
|
(7,896,202
|
)
|
|||||||
Income
tax benefit (expense)
|
1,635,214
|
(2,462,165
|
)
|
—
|
||||||||
(Loss)
income from continuing operations
|
(24,472,729
|
)
|
10,910,823
|
(7,896,202
|
)
|
|||||||
Loss
on discontinued operations
|
(5,801,076
|
)
|
(1,587,788
|
)
|
(324,213
|
)
|
||||||
Net
(loss) income
|
$
|
(30,273,805
|
)
|
9,323,035
|
$
|
(8,220,415
|
)
|
2008
|
2007
|
2006
|
||||||||||
Stock-based
compensation
|
$
|
2,353,383
|
$
|
2,824,107
|
$
|
3,836,781
|
||||||
Reversal
of FIN 48 Liability
|
(1,838,743
|
)
|
—
|
—
|
||||||||
Impairment
of goodwill and intangible assets
|
4,538,945
|
—
|
—
|
|||||||||
Amortization
of intangible assets
|
466,142
|
750,185
|
138,051
|
|||||||||
Depreciation
and amortization
|
828,598
|
740,445
|
655,334
|
|||||||||
Provision
for uncollectible accounts receivable
|
476,713
|
368,272
|
383,565
|
|||||||||
Issuance
of common stock to consultant
|
—
|
75,791
|
—
|
|||||||||
Amortization
of discounts on debt
|
2,584
|
10,332
|
146,776
|
|||||||||
Loss
on retirement of convertible note payable
|
—
|
—
|
1,348,805
|
|||||||||
Amortization
of debt issuance costs
|
—
|
—
|
35,757
|
|||||||||
Common
stock received for services
|
(1,752,625
|
)
|
(400,875
|
)
|
—
|
|||||||
Total
|
$
|
5,074,997
|
$
|
4,368,257
|
$
|
6,545,069
|
·
|
Capital Raising -
Capital raising includes private placements of equity and debt instruments
and underwritten public offerings.
|
·
|
Financial Advisory -
Financial advisory includes advisory assignments with respect to mergers
and acquisitions, divestures, restructurings and
spin-offs.
|
2008
|
2007
|
2006
|
||||||||||
Revenue:
|
||||||||||||
Capital
raising
|
$
|
9,031,592
|
$
|
26,996,283
|
$
|
15,939,480
|
||||||
Financial
advisory
|
2,400,862
|
3,142,500
|
5,251,306
|
|||||||||
Total
investment banking revenue
|
$
|
11,432,454
|
$
|
30,138,783
|
$
|
21,190,786
|
||||||
Transaction
Volumes:
|
||||||||||||
Public
offerings:
|
||||||||||||
Capital
underwritten participations
|
$
|
182,780,000
|
$
|
234,596,000
|
$
|
156,500,000
|
||||||
Number
of transactions
|
3
|
13
|
15
|
|||||||||
Private
placements:
|
||||||||||||
Capital
raised
|
$
|
290,380,000
|
$
|
331,480,000
|
$
|
173,101,000
|
||||||
Number
of transactions
|
13
|
26
|
15
|
|||||||||
Financial
advisory:
|
||||||||||||
Transaction
amounts
|
$
|
82,600,000
|
$
|
129,161,000
|
$
|
169,423,000
|
||||||
Number
of transactions
|
4
|
1
|
1
|
·
|
Commissions -
Commissions include revenue resulting from executing stock trades for
exchange-listed securities, over-the-counter securities and other
transactions as agent, as well as revenue from brokering money market
mutual funds by our Institutional Cash Distributors
group.
|
·
|
Principal Transactions
- Principal
transactions consist of a portion of dealer spreads attributed to our
securities trading activities as principal in Nasdaq-listed and other
securities, and include transactions derived from our activities as a
market-maker. Additionally, principal transactions include gains and
losses resulting from market price fluctuations that occur while holding
positions in our trading security
inventory.
|
2008
|
2007
|
2006
|
||||||||||
Revenue:
|
||||||||||||
Commissions:
|
||||||||||||
Institutional
equities
|
$
|
22,385,277
|
$
|
25,312,803
|
$
|
26,348,811
|
||||||
Institutional
Cash Distributors
|
11,293,429
|
6,368,760
|
3,756,274
|
|||||||||
Total
commissions revenue
|
$
|
33,678,706
|
$
|
31,681,563
|
$
|
30,105,085
|
||||||
Principal
transactions:
|
||||||||||||
Customer
principal transactions, proprietary trading and market
making
|
$
|
(7,693,703
|
)
|
$
|
18,380,237
|
$
|
(207,779
|
)
|
||||
Investment
portfolio
|
(1,346,515
|
)
|
1,736,155
|
36,724
|
||||||||
Total
principal transactions revenue
|
$
|
(9,040,218
|
)
|
$
|
20,116,392
|
$
|
(171,055
|
)
|
||||
Equity
research:
|
||||||||||||
Publishing
analysts
|
7
|
15
|
14
|
|||||||||
Companies
covered
|
100
|
186
|
194
|
|||||||||
Transaction
Volumes:
|
||||||||||||
Number
of shares traded
|
1,281,568,000
|
1,160,782,000
|
937,005,000
|
|||||||||
Number
of active clients
|
491
|
597
|
564
|
2008
|
2007
|
2006
|
||||||||||
Incentive
compensation and discretionary bonuses
|
$
|
17,824,388
|
$
|
34,408,271
|
$
|
26,563,425
|
||||||
Salaries
and wages
|
13,009,535
|
12,756,961
|
9,076,815
|
|||||||||
Stock-based
compensation
|
2,353,383
|
2,824,109
|
3,836,781
|
|||||||||
Payroll
taxes, benefits and other
|
3,483,151
|
3,680,108
|
3,363,410
|
|||||||||
Total
compensation and benefits
|
$
|
36,670,457
|
$
|
53,669,449
|
$
|
42,840,431
|
||||||
Total
compensation and benefits as a percentage of revenue
|
100
|
%
|
64
|
%
|
83
|
%
|
||||||
Cash
compensation and benefits as a percentage of revenue
|
94
|
%
|
61
|
%
|
75
|
%
|
2008
|
2007
|
2006
|
||||||||||
Investor
conferences
|
$
|
817,177
|
$
|
918,153
|
$
|
947,793
|
||||||
Recruiting
|
288,500
|
476,483
|
316,021
|
|||||||||
Public
and investor relations
|
508,692
|
436,977
|
294,664
|
|||||||||
Provision
for uncollectible accounts receivable
|
347,410
|
368,271
|
(116,435
|
)
|
||||||||
Insurance
|
450,872
|
315,186
|
271,725
|
|||||||||
Supplies
|
335,778
|
297,814
|
300,598
|
|||||||||
Dues
and subscriptions
|
359,606
|
198,967
|
162,064
|
|||||||||
Other
|
1,303,092
|
374,570
|
224,335
|
|||||||||
Total
other operating expenses
|
$
|
4,411,128
|
$
|
3,386,421
|
$
|
2,400,765
|
Operating
Leases
|
Capital
Leases
|
|||||||
2009
|
1,772,554
|
634,968
|
||||||
2010
|
1,720,897
|
319,733
|
||||||
2011
|
1,658,148
|
146,647
|
||||||
2012
|
1,095,440
|
—
|
||||||
2013
|
616,000
|
—
|
||||||
Thereafter
|
—
|
—
|
||||||
Total
commitments
|
$
|
6,863,039
|
$
|
1,101,347
|
||||
Interest
|
—
|
(66,441
|
)
|
|||||
Net
commitments
|
$
|
6,863,039
|
$
|
1,034,906
|
·
|
Report
of Independent Registered Public Accounting
Firm
|
·
|
Consolidated
Statements of Operations
|
·
|
Consolidated
Statements of Financial Condition
|
·
|
Consolidated
Statements of Stockholders’ Equity
|
·
|
Consolidated
Statements of Cash Flows
|
·
|
Notes
to Consolidated Financial
Statements
|
/s/
Ernst & Young LLP
|
|
San
Francisco, California
March
30, 2009
|
Year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Revenue:
|
||||||||||||
Commissions
|
$
|
33,678,706
|
$
|
31,681,563
|
$
|
30,105,085
|
||||||
Principal
transactions
|
(9,040,218
|
)
|
20,116,392
|
(171,055
|
)
|
|||||||
Investment
banking
|
11,432,454
|
30,138,783
|
21,190,786
|
|||||||||
Advisory
and other fees
|
496,894
|
1,811,527
|
693,822
|
|||||||||
Total
revenue
|
36,567,836
|
83,748,265
|
51,818,638
|
|||||||||
Operating
expenses:
|
||||||||||||
Compensation
and benefits
|
36,670,457
|
53,669,449
|
42,840,431
|
|||||||||
Brokerage
and clearing fees
|
3,042,133
|
2,635,328
|
2,614,513
|
|||||||||
Professional
services
|
9,161,729
|
2,785,414
|
2,441,417
|
|||||||||
Occupancy
and equipment
|
2,303,944
|
1,638,353
|
1,665,410
|
|||||||||
Communications
and technology
|
3,762,954
|
3,405,411
|
2,969,872
|
|||||||||
Depreciation
and amortization
|
705,883
|
681,756
|
645,129
|
|||||||||
Travel
and business development
|
2,921,196
|
2,499,768
|
2,738,393
|
|||||||||
Other
|
4,411,128
|
3,386,421
|
2,400,765
|
|||||||||
Total
operating expenses
|
62,979,424
|
70,701,900
|
58,315,930
|
|||||||||
Operating
(loss) income
|
(26,411,588
|
)
|
13,046,365
|
(6,497,292
|
)
|
|||||||
Loss
on retirement of convertible note payable
|
—
|
—
|
(1,348,805
|
)
|
||||||||
Interest
income
|
375,949
|
461,491
|
484,909
|
|||||||||
Interest
expense
|
(72,304
|
)
|
(134,868
|
)
|
(535,014
|
)
|
||||||
(Loss)
income from continuing operations before income taxes
|
(26,107,943
|
)
|
13,372,988
|
(7,896,202
|
)
|
|||||||
Income
tax benefit (expense)
|
1,635,214
|
(2,462,165
|
)
|
—
|
||||||||
(Loss)
income from continuing operations
|
(24,472,729
|
)
|
10,910,823
|
(7,896,202
|
)
|
|||||||
Loss
from discontinued operations
|
(5,801,076
|
)
|
(1,587,788
|
)
|
(324,213
|
)
|
||||||
Net
(loss) income
|
$
|
(30,273,805
|
)
|
$
|
9,323,035
|
$
|
(8,220,415
|
)
|
||||
Basic
net income (loss) per share:
|
||||||||||||
(Loss)
income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.95
|
$
|
(0.79
|
)
|
||||
Loss
from discontinued operations
|
$
|
(0.46
|
)
|
$
|
(0.14
|
)
|
$
|
(0.03
|
)
|
|||
Net
(loss) income
|
$
|
(2.41
|
)
|
$
|
0.81
|
$
|
(0.82
|
)
|
||||
Diluted
net (loss) income per share:
|
||||||||||||
(Loss)
income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.86
|
$
|
(0.79
|
)
|
||||
Loss
from discontinued operations
|
$
|
(0.46
|
)
|
$
|
(0.12
|
)
|
$
|
(0.03
|
)
|
|||
Net
(loss) income
|
$
|
(2.41
|
)
|
$
|
0.74
|
$
|
(0.82
|
)
|
||||
Weighted
average number of common shares:
|
||||||||||||
Basic
|
12,550,872
|
11,528,187
|
9,989,265
|
|||||||||
Diluted
|
12,550,872
|
12,643,524
|
9,989,265
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$
|
6,358,128
|
$
|
31,653,657
|
||||
Securities
owned:
|
||||||||
Marketable,
at fair value
|
4,622,577
|
14,115,022
|
||||||
Not
readily marketable, at estimated fair value
|
366,061
|
2,275,668
|
||||||
Other
|
185,065
|
2,229,120
|
||||||
Restricted
cash
|
1,131,182
|
689,157
|
||||||
Due
from clearing broker
|
1,752,535
|
1,251,446
|
||||||
Accounts
receivable, net
|
612,234
|
2,940,959
|
||||||
Prepaid
expenses and other assets
|
619,759
|
1,651,051
|
||||||
Equipment
and fixtures, net
|
1,260,011
|
995,880
|
||||||
Assets
held for sale
|
1,958,038
|
6,771,371
|
||||||
Total
assets
|
$
|
18,865,590
|
$
|
64,573,331
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Accounts
payable
|
$
|
712,591
|
$
|
579,097
|
||||
Commissions
and bonus payable
|
3,182,941
|
17,346,304
|
||||||
Accrued
expenses
|
3,637,345
|
5,541,501
|
||||||
Due
to clearing and other brokers
|
28,022
|
6,865
|
||||||
Securities
sold, not yet purchased
|
903,217
|
3,804,558
|
||||||
Deferred
revenue
|
709,691
|
119,999
|
||||||
Capital
lease obligation
|
923,683
|
721,380
|
||||||
Convertible
notes payable, net
|
—
|
197,416
|
||||||
Notes
payable
|
—
|
41,573
|
||||||
Liabilities
held for sale
|
1,052,899
|
1,408,590
|
||||||
Total
liabilities
|
11,150,389
|
29,767,283
|
||||||
Commitments
and contingencies
|
||||||||
Stockholders’
equity:
|
||||||||
Convertible
Preferred stock, Series A—$0.0001 par value; 2,000,000 shares
authorized; 2,000,000 shares issued and 0 shares outstanding as of
December 31, 2008 and 2007, respectively; aggregate liquidation preference
of $0
|
—
|
—
|
||||||
Convertible
Preferred stock, Series B—$0.0001 par value; 12,500,000 shares
authorized; 8,750,000 shares issued and 0 shares outstanding as of
December 31, 2008 and 2007; aggregate liquidation preference of
$0
|
—
|
—
|
||||||
Convertible
Preferred stock, Series C—$0.0001 par value; 14,200,000 shares
authorized; 11,800,000 shares issued and 0 shares outstanding as of
December 31, 2008 and 2007; aggregate liquidation preference of
$0
|
—
|
—
|
||||||
Common
stock, $0.0001 par value; 300,000,000 shares authorized; 12,756,656 and
12,310,886 shares issued and 12,730,218 and 12,284,448 shares
outstanding as of December 31, 2008 and 2007, respectively
|
1,278
|
1,232
|
||||||
Additional
paid-in capital
|
127,193,195
|
124,010,283
|
||||||
Treasury
stock
|
(125,613
|
)
|
(125,613
|
)
|
||||
Accumulated
deficit
|
(119,353,659
|
)
|
(89,079,854
|
)
|
||||
Total
stockholders’ equity
|
7,715,201
|
34,806,048
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
18,865,590
|
$
|
64,573,331
|
Preferred Stock
|
Common Stock
|
Treasury Stock
|
Additional
Paid-in
|
Deferred
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Deficit
|
Total
|
|||||||||||||||||||||||||||||||
Balance
at December 31, 2005
|
— | $ | — | 10,209,588 | $ | 1,021 | — | $ | — | $ | 111,731,293 | $ | (3,146,839 | ) | $ | (90,182,474 | ) | $ | 18,403,001 | |||||||||||||||||||||
Net
loss
|
— | — | — | — | — | — | — | — | (8,220,415 | ) | (8,220,415 | ) | ||||||||||||||||||||||||||||
Issuance
of common stock
|
— | — | 247,808 | 25 | — | — | 713,062 | — | — | 713,087 | ||||||||||||||||||||||||||||||
Issuance
of restricted common stock
|
— | — | 52,465 | 6 | — | — | (6 | ) | — | — | — | |||||||||||||||||||||||||||||
Exercise of
stock warrants
|
— | — | 92,859 | 9 | — | — | 191,991 | — | — | 192,000 | ||||||||||||||||||||||||||||||
Removal
of opening deferred stock compensation balance upon adoption of SFAS
123(R)
|
— | — | — | — | — | — | (3,146,839 | ) | 3,146,839 | — | ||||||||||||||||||||||||||||||
Stock-based
compensation
|
— | — | — | — | — | — | 3,836,781 | — | — | 3,836,781 | ||||||||||||||||||||||||||||||
Issuance
of stock warrants
|
— | — | — | — | — | — | 1,290,566 | — | — | 1,290,566 | ||||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
— | $ | — | 10,602,720 | $ | 1,061 | — | $ | — | $ | 114,616,848 | $ | — | $ | (98,402,889 | ) | $ | 16,215,020 | ||||||||||||||||||||||
Net
income
|
— | — | — | — | — | — | — | — | 9,323,035 | 9,323,035 | ||||||||||||||||||||||||||||||
Issuance
of common stock for MedPanel acquisition
|
— | — | 1,500,120 | 150 | — | — | 6,090,337 | — | — | 6,090,487 | ||||||||||||||||||||||||||||||
Issuance of
common stock
|
— | — | 56,857 | 5 | — | — | 235,076 | — | — | 235,081 | ||||||||||||||||||||||||||||||
Issuance
of restricted common stock
|
— | — | 120,126 | 12 | — | — | 25,739 | — | — | 25,751 | ||||||||||||||||||||||||||||||
Exercise of
stock warrants
|
— | — | 83,939 | 9 | — | — | 172,987 | — | — | 172,996 | ||||||||||||||||||||||||||||||
Common
stock returned from Catalyst Shareholder
|
— | — | (52,876 | ) | (5 | ) | (26,438 | ) | (125,613 | ) | 5 | — | — | (125,613 | ) | |||||||||||||||||||||||||
Tax
benefits from employee stock option plans
|
— | — | — | — | — | — | 45,184 | — | — | 45,184 | ||||||||||||||||||||||||||||||
Stock-based
compensation
|
— | — | — | — | — | — | 2,824,107 | — | — | 2,824,107 | ||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
— | $ | — | 12,310,886 | $ | 1,232 | (26,438 | ) | $ | (125,613 | ) | $ | 124,010,283 | $ | — | $ | (89,079,854 | ) | $ | 34,806,048 | ||||||||||||||||||||
Net
loss
|
— | — | — | — | — | — | — | — | (30,273,805 | ) | (30,273,805 | ) | ||||||||||||||||||||||||||||
Conversion
of debt to common stock
|
142,858 | 14 | 199,986 | 200,000 | ||||||||||||||||||||||||||||||||||||
Issuance
of common stock for MedPanel acquisition
|
— | — | 47,623 | 5 | — | — | 193,345 | — | — | 193,350 | ||||||||||||||||||||||||||||||
Issuance of
common stock
|
— | — | 52,938 | 5 | — | — | 95,298 | — | — | 95,303 | ||||||||||||||||||||||||||||||
Issuance
of restricted common stock
|
— | — | 79,265 | 8 | — | — | (8 | ) | — | — | — | |||||||||||||||||||||||||||||
Exercise of
stock warrants
|
— | — | 188,582 | 20 | — | — | 374,980 | — | — | 375,000 | ||||||||||||||||||||||||||||||
Common
stock returned from restricted
stock Shareholder
|
— | — | (65,496 | ) | (6 | ) | — | — | 6 | — | — | — | ||||||||||||||||||||||||||||
Tax
benefits from employee stock option plans
|
— | — | — | — | — | — | (34,078 | ) | — | — | (34,078 | ) | ||||||||||||||||||||||||||||
Stock-based
compensation
|
— | — | — | — | — | — | 2,353,383 | — | — | 2,353,383 | ||||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
— | $ | — | 12,756,656 | $ | 1,278 | (26,438 | ) | $ | (125,613 | ) | $ | 127,193,195 | $ | — | $ | (119,353,659 | ) | $ | 7,715,201 |
Year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
(loss) income
|
$
|
(30,273,805
|
)
|
$
|
9,323,035
|
$
|
(8,220,415
|
)
|
||||
Adjustments
to reconcile net (loss) income to net cash (used in) provided
by operating activities:
|
||||||||||||
Reversal
of FIN 48 liability
|
(1,838,743
|
)
|
—
|
—
|
||||||||
Depreciation
and amortization
|
828,598
|
740,445
|
655,334
|
|||||||||
Stock-based
compensation
|
2,353,383
|
2,824,107
|
3,836,781
|
|||||||||
Issuance
of common stock to consultant
|
—
|
75,791
|
—
|
|||||||||
Tax
benefits (expense) from employee stock option plans
|
(34,078
|
)
|
45,184
|
—
|
||||||||
Amortization
of discounts on convertible notes payable
|
2,584
|
10,332
|
146,776
|
|||||||||
Impairment
of goodwill
|
3,338,016
|
—
|
—
|
|||||||||
Impairment
of intangible assets
|
1,200,929
|
—
|
—
|
|||||||||
Impairment
of securities
|
230,556
|
—
|
—
|
|||||||||
Amortization
of debt issuance costs
|
—
|
—
|
35,757
|
|||||||||
Amortization
of intangible asset
|
466,142
|
750,185
|
138,051
|
|||||||||
Loss
on retirement of convertible note payable
|
—
|
—
|
1,348,805
|
|||||||||
Loss
on disposal of equipment and fixtures
|
2,921
|
5,553
|
14,196
|
|||||||||
Provision
for uncollectible accounts receivable
|
820,417
|
368,272
|
383,565
|
|||||||||
Common
stock received for services
|
(1,752,625
|
)
|
(400,875
|
)
|
—
|
|||||||
Unrealized
loss (gain) on securities owned
|
9,774,573
|
(6,763,635
|
)
|
2,172,407
|
||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Securities
owned and sold, but not purchased
|
2,292,261
|
(203,639
|
)
|
(203,536
|
)
|
|||||||
Restricted
cash
|
(442,025
|
)
|
(59,730
|
)
|
(1,821
|
)
|
||||||
Due
from clearing broker
|
(501,089
|
)
|
(699,615
|
)
|
421,307
|
|||||||
Accounts
receivable
|
1,458,397
|
(649,560
|
)
|
(789,908
|
)
|
|||||||
Prepaid
expenses and other assets
|
910,840
|
404,769
|
(786,306
|
)
|
||||||||
Accounts
payable
|
(18,166
|
)
|
(740,825
|
)
|
220,485
|
|||||||
Commissions
and bonus payable
|
(14,223,458
|
)
|
9,617,504
|
2,975,913
|
||||||||
Accrued
liabilities
|
437,960
|
3,928,196
|
84,171
|
|||||||||
Due
to clearing and other brokers
|
21,157
|
(4,249
|
)
|
(107,684
|
)
|
|||||||
Net
cash (used in) provided by operating activities
|
(24,945,255
|
)
|
18,571,245
|
(2,323,878
|
)
|
|||||||
Cash
flows from investing activities:
|
||||||||||||
Purchase
of equipment and fixtures
|
(203,566
|
)
|
(170,541
|
)
|
(78,216
|
)
|
||||||
Acquisition
of Catalyst
|
—
|
—
|
(58,558
|
)
|
||||||||
Proceeds
from sale of Catalyst
|
—
|
163,219
|
—
|
|||||||||
Investment
in MCF Navigator fund
|
—
|
—
|
(7,500,000
|
)
|
||||||||
Redemption
from MCF Navigator fund
|
—
|
—
|
7,500,000
|
|||||||||
Acquisition
of MedPanel
|
—
|
670,027
|
—
|
|||||||||
Increase
in intangible assets
|
—
|
(694,612
|
)
|
—
|
||||||||
Net
cash used in investing activities
|
(203,566
|
)
|
(31,907
|
)
|
(136,774
|
)
|
||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from the issuance of common stock
|
—
|
185,041
|
603,070
|
|||||||||
Proceeds
from the exercise of stock options and warrants
|
470,303
|
172,996
|
302,017
|
|||||||||
Proceeds
from convertible debenture and stock warrant
|
—
|
—
|
7,500,000
|
|||||||||
Repayment
of convertible debenture
|
—
|
—
|
(7,500,000
|
)
|
||||||||
Debt
service principal payments
|
(702,663
|
)
|
(681,764
|
)
|
(484,524
|
)
|
||||||
Net
cash (used in) provided by financing activities
|
(232,360
|
)
|
(323,727
|
)
|
420,563
|
|||||||
Increase
(decrease) in cash and cash equivalents
|
(25,381,181
|
)
|
18,215,611
|
(2,607,667
|
)
|
|||||||
Cash
and cash equivalents at beginning of year
|
31,962,201
|
13,746,590
|
11,138,923
|
|||||||||
Cash
and cash equivalents, assets held for sale
|
(222,892
|
)
|
(308,544
|
)
|
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
6,358,128
|
$
|
31,653,657
|
$
|
13,746,590
|
Year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Supplementary
disclosure of cash flow information:
|
||||||||||||
Cash
paid during the year:
|
||||||||||||
Interest
|
$
|
79,941
|
$
|
121,331
|
$
|
323,345
|
||||||
Income
taxes
|
$
|
565,959
|
$
|
120,400
|
$
|
18,800
|
||||||
Non-cash
investing and financing activities:
|
||||||||||||
Conversion
of note payable into common stock
|
$
|
200,000
|
$
|
—
|
$
|
—
|
||||||
Purchase
of equipment and fixtures through capital lease
|
$
|
805,776
|
$
|
182,665
|
$
|
799,709
|
||||||
Issuance
of common stock for MedPanel
|
$
|
193,350
|
$
|
—
|
$
|
—
|
|
1.
|
Reduce
operating costs
|
|
2.
|
Shed
non-essential operations
|
|
3.
|
Negotiate
a settlement of pending litigations
|
|
4.
|
Raise
additional capital
|
Assets at Fair Value at December 31, 2008
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Securities
owned:
|
||||||||||||||||
Corporate
equities
|
$
|
3,353,784
|
$
|
650
|
$
|
695
|
$
|
3,355,129
|
||||||||
Stock
warrants
|
—
|
—
|
1,605,451
|
1,605,451
|
||||||||||||
Underwriters’
purchase option
|
—
|
—
|
27,995
|
27,995
|
||||||||||||
Preferred
stock
|
63
|
—
|
—
|
63
|
||||||||||||
Total
securities owned
|
3,353,847
|
650
|
1,634,141
|
4,988,638
|
||||||||||||
Liabilities:
|
||||||||||||||||
Securities
sold, not yet purchased
|
903,217
|
—
|
—
|
903,217
|
Corporate
Equities
|
Stock
Warrants
|
Underwriters’
Purchase Option
|
Total
|
|||||||||||||
Balance
at December 31, 2007
|
$
|
489,453
|
$
|
1,756,580
|
$
|
194,957
|
$
|
2,440,990
|
||||||||
Purchases,
issuances, settlements, and sales
|
920,412
|
807,449
|
—
|
1,727,861
|
||||||||||||
Net
transfers in / (out)
|
(1,299,696
|
)
|
—
|
—
|
(1,299,696
|
)
|
||||||||||
Gains
/ (losses)
|
||||||||||||||||
Realized
|
—
|
107,310
|
—
|
107,310
|
||||||||||||
Unrealized
|
(109,474
|
)
|
(1,065,888
|
)
|
(166,962
|
)
|
(1,342,324
|
)
|
||||||||
Balance
at December 31, 2008
|
$
|
695
|
$
|
1,605,451
|
$
|
27,995
|
$
|
1,634,141
|
||||||||
Change
in unrealized gains/ (losses) relating to instruments still held at
December 31, 2008
|
$
|
(54,716
|
)
|
$
|
(891,369
|
)
|
$
|
(166,962
|
)
|
$
|
(1,113,047
|
)
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
Computer
equipment
|
$
|
568,116
|
$
|
776,578
|
||||
Furniture
and equipment
|
1,223,050
|
1,045,220
|
||||||
Software
|
183,098
|
164,690
|
||||||
Leasehold
improvements
|
1,641,497
|
1,010,378
|
||||||
3,615,761
|
2,996,866
|
|||||||
Less
accumulated depreciation
|
(2,355,750
|
)
|
(2,000,986
|
)
|
||||
$
|
1,260,011
|
$
|
995,880
|
2008
|
2007
|
|||||||
Revenue
|
$
|
6,304,420
|
$
|
3,907,727
|
||||
Operating
expenses:
|
||||||||
Compensation
and benefits
|
3,533,175
|
2,432,438
|
||||||
Cost
of primary research services
|
2,295,510
|
1,595,502
|
||||||
Professional
services
|
188,157
|
37,978
|
||||||
Occupancy
and equipment
|
354,388
|
223,716
|
||||||
Communications
and technology
|
132,384
|
78,342
|
||||||
Depreciation
and amortization
|
588,858
|
808,873
|
||||||
Travel
and entertainment
|
140,399
|
107,275
|
||||||
Impairment
of goodwill and intangible assets
|
4,538,945
|
–
|
||||||
Other
expenses
|
323,458
|
208,635
|
||||||
12,095,274
|
5,492,759
|
|||||||
Operating
loss
|
(5,790,854
|
)
|
(1,585,032
|
)
|
||||
Interest
expense, net
|
(10,222
|
)
|
(2,756
|
)
|
||||
Net
loss
|
$
|
(5,801,076
|
)
|
$
|
(1,587,788
|
)
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
Assets:
|
||||||||
Cash
and cash equivalents
|
$
|
222,892
|
$
|
308,544
|
||||
Accounts
receivable
|
1,102,681
|
1,067,770
|
||||||
Furniture
and equipment
|
163,505
|
249,811
|
||||||
Intangible
assets, net of accumulated amortization
|
282,744
|
1,949,815
|
||||||
Prepaid
expenses and other assets
|
186,216
|
3,195,431
|
||||||
$
|
1,958,038
|
$
|
6,771,371
|
|||||
Liabilities:
|
||||||||
Accounts
payable
|
227,213
|
378,872
|
||||||
Commissions
and bonus payable
|
110,632
|
170,728
|
||||||
Accrued
liabilities
|
603,780
|
690,098
|
||||||
Capital
leases
|
111,274
|
168,892
|
||||||
$
|
1,052,899
|
$
|
1,408,590
|
As of December 31,
|
||||||||
2008
|
2007
|
|||||||
Depreciable
intangible assets:
|
||||||||
Customer
relationships
|
$
|
990,000
|
$
|
990,000
|
||||
Database
of panelists
|
220,000
|
220,000
|
||||||
Technology
platform
|
360,000
|
360,000
|
||||||
Customer
backlog
|
420,000
|
420,000
|
||||||
1,990,000
|
1,990,000
|
|||||||
Less:
accumulated amortization
|
(1,216,327
|
)
|
(750,185
|
)
|
||||
Less:
impairment
|
(490,929
|
)
|
–
|
|||||
282,744
|
1,239,815
|
|||||||
Non-depreciable
intangible asset
|
||||||||
Tradenames
|
710,000
|
710,000
|
||||||
Less:
impairment
|
(710,000
|
)
|
||||||
Total
intangible assets, net of amort. and impairment
|
$
|
282,744
|
$
|
1,949,815
|
2006
|
||||
Revenue
|
$
|
865,808
|
||
Operating
expenses:
|
||||
Compensation
and benefits
|
736,536
|
|||
Professional
services
|
34,834
|
|||
Occupancy
and equipment
|
121,794
|
|||
Communications
and technology
|
15,410
|
|||
Depreciation
and amortization
|
56,137
|
|||
Travel
and entertainment
|
72,260
|
|||
Other
expenses
|
156,563
|
|||
1,193,534
|
||||
Operating
loss
|
(327,726
|
)
|
||
Interest
income, net
|
3,513
|
|||
Net
loss
|
$
|
(324,213
|
)
|
2008
|
2007
|
2006
|
||||||||||||||||||||||
Shares
|
Wtd-Avg
Exercise
Price
|
Shares
|
Wtd-Avg
Exercise
Price
|
Shares
|
Wtd-Avg
Exercise
Price
|
|||||||||||||||||||
Outstanding
at beginning of year
|
4,066,259
|
$
|
6.00
|
3,570,370
|
$
|
6.19
|
3,324,358
|
$
|
6.24
|
|||||||||||||||
Granted
|
717,780
|
3.41
|
736,640
|
4.82
|
398,538
|
6.27
|
||||||||||||||||||
Exercised
|
(64,628
|
)
|
(2.36
|
)
|
(83,939
|
)
|
(2.06
|
)
|
(52,819
|
)
|
(2.08
|
)
|
||||||||||||
Canceled
|
(3,552,294
|
)
|
(5.59
|
)
|
(156,812
|
)
|
(6.76
|
)
|
(99,707
|
)
|
(10.38
|
)
|
||||||||||||
Outstanding
at end of year
|
1,167,117
|
$
|
5.85
|
4,066,259
|
$
|
6.00
|
3,570,370
|
$
|
6.19
|
|||||||||||||||
Exercisable
at end of year
|
646,907
|
$
|
7.39
|
3,084,852
|
$
|
6.16
|
2,934,029
|
$
|
6.00
|
Options Outstanding at December 31, 2008
|
Vested Options at December 31, 2008
|
|||||||||||||||||||||||||||
Range of
Exercise
Price
|
Number
|
Weighted
Average
Remaining
Contractual
Life Years)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
|||||||||||||||||||||
$ 0
- $ 3.50
|
330,592
|
5.35
|
$
|
2.47
|
$
|
—
|
231,847
|
$
|
2.69
|
$
|
—
|
|||||||||||||||||
$
3.51 - $ 7.00
|
549,256
|
8.13
|
$
|
4.38
|
—
|
150,349
|
4.86
|
—
|
||||||||||||||||||||
$
7.01 - $14.00
|
261,121
|
3.36
|
$
|
9.05
|
—
|
238,563
|
9.16
|
—
|
||||||||||||||||||||
$
14.01 - $28.00
|
1,147
|
2.00
|
$
|
15.34
|
—
|
1,147
|
15.34
|
—
|
||||||||||||||||||||
$ 28.01 - $49.00
|
25,001
|
1.15
|
$
|
49.00
|
—
|
25,001
|
49.00
|
—
|
||||||||||||||||||||
1,167,117
|
6.12
|
$
|
5.85
|
$
|
—
|
646,907
|
$
|
7.39
|
$
|
Non-Vested
Stock
Outstanding
|
Weighted
Average
Grant Date
Fair Value
|
Aggregate
Intrinsic
Value
|
||||||||||
Balance
as of December 31, 2005
|
581,412
|
$
|
7.84
|
$
|
4,558,000
|
|||||||
Granted
|
90,003
|
7.16
|
||||||||||
Vested
|
(327,900
|
)
|
(4.19
|
)
|
||||||||
Canceled
|
(37,506
|
)
|
(10.78
|
)
|
||||||||
Balance
as of December 31, 2006
|
306,009
|
$
|
10.04
|
$
|
3,072,000
|
|||||||
Granted
|
153,828
|
4.48
|
||||||||||
Vested
|
(257,515
|
)
|
(7.18
|
)
|
||||||||
Canceled
|
(21,702
|
)
|
(9.49
|
)
|
||||||||
Balance
as of December 31, 2007
|
180,620
|
$
|
7.51
|
$
|
1,356,000
|
|||||||
Granted
|
79,265
|
2.34
|
||||||||||
Vested
|
(145,610
|
)
|
(5.05
|
)
|
||||||||
Canceled
|
(65,496
|
)
|
(5.00
|
)
|
||||||||
Balance
as of December 31, 2008
|
48,779
|
$
|
9.84
|
$
|
479,985
|
2008
|
2007
|
2006
|
||||||||||
Volatility
|
70
|
%
|
63
|
%
|
81
|
%
|
||||||
Average
expected term (years)
|
6.3
|
4.2
|
4.4
|
|||||||||
Risk-free
interest rate
|
3.10
|
%
|
4.55
|
%
|
4.75
|
%
|
||||||
Dividend
yield
|
—
|
—
|
—
|
2008
|
2007
|
2006
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
(1,627,734
|
)
|
$
|
1,857,783
|
$
|
—
|
|||||
State
|
(7,480
|
)
|
604,832
|
—
|
||||||||
Total
|
$
|
(1,635,214
|
)
|
$
|
2,462,165
|
$
|
—
|
2008
|
2007
|
2006
|
||||||||||
Federal
statutory income tax rate (benefit)
|
(34
|
)%
|
34
|
%
|
(34
|
)%
|
||||||
State
income taxes
|
(7
|
)
|
8
|
(5
|
)
|
|||||||
Loss
on retirement of convertible note payable
|
—
|
—
|
5
|
|||||||||
Permanent
differences
|
3
|
9
|
13
|
|||||||||
Losses
for which no benefit has been recognized
|
—
|
—
|
21
|
|||||||||
Valuation
allowance
|
33
|
%
|
(30
|
)%
|
—
|
|||||||
Effective
tax rate
|
(5
|
)%
|
21
|
%
|
—
|
%
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryforwards
|
$
|
23,149,680
|
$
|
16,016,822
|
||||
Stock
options and warrants for services
|
—
|
12,411,225
|
||||||
Other
|
3,148,077
|
(154,566
|
)
|
|||||
Total
deferred tax assets
|
26,297,757
|
28,273,481
|
||||||
Valuation
allowance
|
(26,297,757
|
)
|
(28,273,481
|
)
|
||||
Net
deferred tax assets
|
$
|
—
|
$
|
—
|
Balance
as of December 31, 2007
|
$
|
1,838,743
|
||
Tax
positions related to current year:
|
||||
Additions
|
-
|
|||
Reductions
|
(1,838,743
|
)
|
||
Tax
positions related to prior year:
|
||||
Additions
|
-
|
|||
Reductions
|
-
|
|||
Settlements
|
-
|
|||
Lapses
in statues of limitations
|
-
|
|||
Balance
as of December 31, 2008
|
$
|
-
|
2008
|
2007
|
2006
|
||||||||||
Net
(loss) income available to common stockholders — basic
|
$
|
(30,273,805
|
)
|
$
|
9,323,035
|
$
|
(8,220,415
|
)
|
||||
Interest
on convertible note payable
|
—
|
16,336
|
—
|
|||||||||
Net
(loss) income available to common stockholders — diluted
|
(30,273,805
|
)
|
9,339,371
|
(8,220,415
|
)
|
|||||||
Weighted-average
number of common shares — basic
|
12,550,872
|
11,528,187
|
9,989,265
|
|||||||||
Assumed
exercise or conversion of all potentially dilutive common shares
outstanding
|
—
|
1,115,337
|
—
|
|||||||||
Weighted-average
number of common shares — diluted
|
12,550,872
|
12,643,524
|
9,989,265
|
|||||||||
Basic
net (loss) income per share:
|
||||||||||||
(Loss)
income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.95
|
$
|
(0.79
|
)
|
||||
Loss
from discontinued operations
|
(0.46
|
)
|
(0.14
|
)
|
(0.03
|
)
|
||||||
Net
(loss) income
|
$
|
(2.41
|
)
|
$
|
0.81
|
$
|
(0.82
|
)
|
||||
Diluted net
(loss) income per share:
|
||||||||||||
(Loss)
income from continuing operations
|
$
|
(1.95
|
)
|
$
|
0.86
|
$
|
(0.79
|
)
|
||||
Loss
from discontinued operations
|
(0.46
|
)
|
(0.12
|
)
|
(0.03
|
)
|
||||||
Net
(loss) income
|
$
|
(2.41
|
)
|
$
|
0.74
|
$
|
(0.82
|
)
|
2008
|
2007
|
2006
|
||||||
|
||||||||
Stock
options and warrants excluded due to the exercise price exceeding the
average fair value of the Company’s common stock during the
period
|
1,354,525
|
1,799,523
|
1,397,022
|
|||||
Weighted
average restricted stock, stock options and stock warrants, calculated
using the treasury stock method, that were excluded due to the Company
reporting a net loss during the period
|
170,665
|
—
|
1,833,389
|
|||||
Weighted
average shares issuable upon conversion of the convertible notes
payable
|
46,576
|
—
|
704,960
|
|||||
Weighted
average shares contingently issuable
|
—
|
—
|
73,402
|
|||||
Total
common stock equivalents excluded from diluted net income (loss) per
share
|
1,571,766
|
1,799,523
|
4,008,773
|
·
|
Revenue
and expenses directly associated with each segment are included in
determining income.
|
·
|
Each
segment’s operating expenses include compensation and benefits expenses
and other operating expenses that are incurred directly in support of the
segments. These other operating expenses, include brokerage and clearing
fees, cost of primary research services, professional services, occupancy
and equipment, communications and technology, depreciation and
amortization, amortization of intangible assets, travel and business
development and other operating
expenses.
|
·
|
Corporate
operating expenses include compensation and benefits for corporate support
employees as well as operating expenses that are not incurred directly in
support of our three segments.
|
2008
|
2007
|
2006
|
|||||||||||
Broker-Dealer
|
Revenue
|
$
|
37,543,942
|
$
|
83,089,245
|
$
|
51,436,697
|
||||||
Operating
expenses
|
43,854,921
|
60,251,106
|
49,720,757
|
||||||||||
Segment
operating (loss) income
|
$
|
(6,310,979
|
)
|
$
|
22,838,139
|
$
|
1,715,940
|
||||||
Segment
assets
|
$
|
15,411,348
|
$
|
53,653,805
|
$
|
27,501,531
|
|||||||
Asset
Management
|
Revenue
|
$
|
(976,106
|
)
|
$
|
659,020
|
$
|
381,941
|
|||||
Operating
expenses
|
2,026,689
|
1,127,413
|
761,805
|
||||||||||
Segment
operating loss
|
$
|
(3,002,794
|
)
|
$
|
(468,393
|
)
|
$
|
(379,864
|
)
|
||||
Segment
assets
|
$
|
577,867
|
$
|
3,363,019
|
$
|
1,231,842
|
|||||||
Corporate
Support
|
Operating
loss
|
$
|
(17,097,814
|
)
|
$
|
(9,323,381
|
)
|
$
|
7,833,368
|
||||
Segment
assets
|
$
|
2,876,375
|
$
|
7,556,507
|
$
|
1,764,840
|
|||||||
Consolidated
Entity
|
Revenue
|
$
|
36,567,836
|
$
|
83,748,265
|
$
|
51,818,638
|
||||||
Operating
expenses
|
62,979,424
|
70,701,900
|
58,315,930
|
||||||||||
Operating
(loss) income
|
$
|
(26,411,588
|
)
|
$
|
13,046,365
|
$
|
(6,497,292
|
)
|
|||||
Total
assets
|
$
|
18,865,590
|
$
|
64,573,331
|
$
|
30,498,213
|
Operating
Leases
|
Capital
Leases
|
|||||||
|
||||||||
2009
|
$
|
1,772,554
|
$
|
634,968
|
||||
2010
|
1,720,897
|
319,733
|
||||||
2011
|
1,658,148
|
146,647
|
||||||
2012
|
1,095,440
|
—
|
||||||
2013
|
616,000
|
—
|
||||||
Thereafter
|
—
|
—
|
||||||
Total
commitments
|
6,863,039
|
1,101,348
|
||||||
Interest
|
—
|
(66,441
|
)
|
|||||
Net
commitments
|
$
|
6,863,039
|
$
|
1,034,907
|
2008
|
|||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
||||||||||||
Revenue
|
$
|
10,211,455
|
$
|
14,197,041
|
$
|
4,494,943
|
$
|
7,664,397
|
|||||||
Operating
expenses
|
16,983,595
|
18,180,284
|
15,785,800
|
12,029,745
|
|||||||||||
Operating
loss from continuing operations
|
(6,772,140
|
)
|
(3,983,243
|
)
|
(11,290,857
|
)
|
(4,365,348
|
)
|
|||||||
Loss
from continuing operations
|
(6,693,504
|
)
|
(2,126,098
|
)
|
(11,313,824
|
)
|
(4,339,302
|
)
|
|||||||
Loss
from discontinued operations
|
(356,469
|
)
|
(2,987,748
|
)
|
(409,513
|
)
|
(2,047,347
|
)
|
|||||||
Net
loss
|
(7,049,973
|
)
|
(5,113,846
|
)
|
(11,723,337
|
)
|
(6,386,649
|
)
|
|||||||
Basic
net loss per share:
|
|||||||||||||||
Loss
from continuing operations
|
(0.54
|
)
|
(0.17
|
)
|
(0.90
|
)
|
(0.34
|
)
|
|||||||
Loss
from discontinued operations
|
(0.03
|
)
|
(0.24
|
)
|
(0.03
|
)
|
(0.16
|
)
|
|||||||
Net
loss
|
$
|
(0.57
|
)
|
$
|
(0.41
|
)
|
$
|
(0.93
|
)
|
$
|
(0.50
|
)
|
|||
Diluted
net loss per share:
|
|||||||||||||||
Loss
from continuing operations
|
(0.54
|
)
|
(0.17
|
)
|
(0.90
|
)
|
(0.34
|
)
|
|||||||
Loss
from discontinued operations
|
(0.03
|
)
|
(0.24
|
)
|
(0.03
|
)
|
(0.16
|
)
|
|||||||
Net
loss
|
$
|
(0.57
|
)
|
$
|
(0.41
|
)
|
$
|
(0.93
|
)
|
$
|
(0.50
|
)
|
2007
|
||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||
Revenue
|
$
|
14,323,144
|
$
|
19,399,287
|
$
|
16,465,566
|
$
|
33,560,268
|
||||||||
Operating
expenses
|
14,322,037
|
16,632,455
|
15,633,279
|
24,114,129
|
||||||||||||
Operating
income from continuing operations
|
1,107
|
2,766,832
|
832,287
|
9,446,139
|
||||||||||||
Income from
continuing operations
|
69,256
|
2,791,998
|
949,374
|
7,100,196
|
||||||||||||
Loss
from discontinued operations
|
—
|
(471,625
|
)
|
(760,914
|
)
|
(355,250
|
)
|
|||||||||
Net
income
|
69,256
|
2,320,373
|
188,460
|
6,744,946
|
||||||||||||
Basic
net income (loss) per share:
|
||||||||||||||||
Income
from continuing operations
|
0.01
|
0.24
|
0.08
|
0.59
|
||||||||||||
Loss
from discontinued operations
|
—
|
(0.04
|
)
|
(0.06
|
)
|
(0.03
|
)
|
|||||||||
Net
income
|
$
|
0.01
|
$
|
0.20
|
$
|
0.02
|
$
|
0.56
|
||||||||
Diluted
net income (loss) per share:
|
||||||||||||||||
Income
from continuing operations
|
0.01
|
0.22
|
0.07
|
0.54
|
||||||||||||
Loss
from discontinued operations
|
—
|
(0.04
|
)
|
(0.06
|
)
|
(0.03
|
)
|
|||||||||
Net
income
|
$
|
0.01
|
$
|
0.18
|
$
|
0.01
|
$
|
0.51
|
/s/
Ernst & Young LLP
|
||
San
Francisco, California
|
||
March
30, 2009
|
Name
and Principal Position (a)
|
Year
(b)
|
Salary($)
(c)
|
Bonus($)
(d) (1)
|
Stock Awards($)
(e) (2)
|
Option Awards($)
(f) (2)
|
Total($)
(g)
|
||||||||||||||||
D.
Jonathan Merriman
|
2008
|
222,917 | — | — | — | 222,917 | ||||||||||||||||
Chief
Executive Officer
|
2007
|
250,000 | 1,315,000 | — | 23,970 | 1,588,970 | ||||||||||||||||
2006
|
250,000 | 119,007 | — | 1,204 | 370,211 | |||||||||||||||||
Gregory
S. Curhan
|
2008
|
222,917 | — | — | — | 222,917 | ||||||||||||||||
Executive
Vice President
|
2007
|
250,000 | 950,000 | — | 22,992 | 1,222,992 | ||||||||||||||||
2006
|
250,000 | 95,047 | — | 683 | 345,730 | |||||||||||||||||
Robert
E. Ford
|
2008
|
222,917 | — | — | — | 222,917 | ||||||||||||||||
President
and Chief Operating
|
2007
|
250,000 | 830,000 | 61,875 | 22,992 | 1,164,867 | ||||||||||||||||
Officer |
2006
|
250,000 | 71,703 | 61,875 | — | 383,578 |
(1)
|
The
amounts included in column (d) are bonuses awarded under Executive and
Management Bonus Plan (“EMB”), designed to reward our named executive
officers and other employees to the extent that the Company achieves or
exceeds its business plan for a particular year. The EMB provides for a
bonus pool to be established based on achieving the Company’s annual
business plan, with the Committee retaining discretion to allocate the
bonus pool. If the Company’s business plan with respect to a calendar year
is not met, only small amounts will be paid under the EMB for that year.
While the amount of the total bonus pool that is available for awards
under the EMB is based on the Company achieving certain performance
targets, the actual amount to be paid to each of our named executive
officers is determined by the Compensation Committee of our Board and our
Board, based on their discretion. In 2008, by agreement between the
executive management and the Compensation Committee, the named executive
officers received no bonus, regardless of the
EMB.
|
(2)
|
The
amounts included in columns (e) and (f) are the dollar amounts recognized
for financial statement reporting purposes for the fiscal years ended
December 31, 2008, 2007 and 2006, and consist of amounts from awards
granted prior to 2006 and in 2007. We did not grant any stock options,
restricted stock or other equity-based awards to our named executive
officers in 2006 or in 2008. In 2007, we made grants of stock options to
our named executive officers. The value of options reported in column (f)
was calculated using the Black-Scholes model, with the assumptions shown
in the table below. For further information, see the note to the financial
statements included in the Company’s 10-K entitled “Fair Value and
Assumptions Used to Calculate Fair Value under SFAS 123(R) and SFAS 123.”
For purposes of determining amounts to be included in this table, in
accordance with SEC rules, forfeitures of stock options or other
equity-based awards have not been
included.
|
2008
|
2007
|
2006
|
||||||||||
Volatility
|
70 | % | 63 | % | 81 | % | ||||||
Average
expected term (years)
|
6.3 | 4.2 | 4.4 | |||||||||
Risk-free
interest rate
|
3.10 | % | 4.55 | % | 4.75 | % | ||||||
Dividend
yield
|
— | — | — |
Option Awards (1)
|
Stock Awards
|
|||||||||
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
(b)
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
(c)
|
Number of
Shares or Units
of
Stock That
Have Not
Vested
(#)(f)
|
Market Value of
Shares
or Units
of Stock That
Have Not Vested
($) (g) (2)
|
|||||||
D.
Jonathan Merriman
|
—
|
—
|
—
|
—
|
||||||
Gregory
S. Curhan
|
—
|
—
|
—
|
—
|
||||||
Robert
E. Ford
|
—
|
—
|
32,143
|
19,286
|
(1)
|
In
October 2008, the Company launched a Stock Option Give-Back Program under
which all employees could give back stock options granted to him or her.
Employees were notified that there would be no quid-pro-quo for the stock
options given back and that those electing to give back any shares of
stock option would not receive any grants for a period of 6 months and 1
day following the end of the program. Messrs. Merriman, Curhan and Ford,
among others, elected to give back all their outstanding shares of stock
options, whether vested or unvested. As a result, they each held no stock
options as of December 31, 2008.
|
(2)
|
Amounts
in this column for Mr. Ford have been calculated by multiplying the
closing price of a share of our common stock on December 31, 2008 ($0.60)
by the number of restricted shares that were unvested on such date.
Restricted shares vest in full on July 16,
2010.
|
Name (a)
|
Stock Awards
($)
(b) (1)(2)
|
Total
($)
(c)
|
|||||
John
M. Thompson, Chair
|
58,551
|
58,551
|
|||||
Patrick
H. Arbor
|
23,421
|
23,421
|
|||||
William J. Febbo(3)
|
—
|
—
|
|||||
D. Jonathan Merriman(4)
|
—
|
—
|
|||||
Raymond
J. Minehan
|
26,351
|
26,351
|
|||||
Scott
Potter (5)
|
21,961
|
21,961
|
|||||
Dennis
G. Schmal
|
27,810
|
27,810
|
|||||
Jeffrey M. Soinski(6)
|
2,703
|
2,703
|
|||||
Ronald
E. Spears(7)
|
—
|
—
|
|||||
Steven
W. Town
|
24,892
|
24,892
|
(1)
|
The
amounts in this column reflect the value of the shares of stock awarded,
calculated by multiplying the closing price of a share of our common stock
on the applicable grant date by the number of shares awarded on such date.
All grants were made on the day of the Board meeting, were immediately
vested and any restrictions were
removed.
|
(2)
|
As
of December 31, 2007, the following directors had the following aggregate
number of stock options outstanding: Mr. Arbor, 17,858; Mr. Spears,
42,858; and Mr. Town, 30,715.
|
(3)
|
In
2008, Mr. Febbo was also the Chief Executive Officer of Panel Intelligence
LLC, a subsidiary of the Company, for which compensation is not included
in this table. In accordance to Company practice, employees of the Company
and its subsidiaries do not receive additional compensation for service on
the Board.
|
(4)
|
Mr.
Merriman is also the Chief Executive Officer of the Company for which
compensation is not included in this table. In accordance to Company
practice, employees of the Company and its subsidiaries do not receive
additional compensation for service on the
Board.
|
(5)
|
Mr.
Potter resigned from the Board as of November 15, 2008. His compensation
reflects the meetings he attended.
|
(6)
|
Mr.
Soinski was appointed to the Board as of September 3, 2008. His
compensation reflects the meetings he
attended.
|
(7)
|
Mr.
Spears resigned from the Board as of March 5, 2008. His compensation
reflects the meetings he attended.
|
Plan Category
|
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options and
Warrants
|
Weighted
Average Exercise
Price of
Outstanding
Options and
Warrants
|
Number of
Securities
Remaining
Available For
Future Issuance
Under Equity
Compensation
Plans
|
|||||||||
Equity
compensation plans approved by stockholders:
|
||||||||||||
1999
Stock Option Plan
|
77,019 | $ | 4.47 | 273,096 | ||||||||
2000
Stock Option and Incentive Plan
|
174,154 | $ | 5.23 | 398,396 | ||||||||
2001
Stock Option and Incentive Plan
|
103,013 | $ | 2.83 | 412,973 | ||||||||
2003
Stock Option and Incentive Plan
|
798,752 | $ | 4.76 | 3,211,948 | ||||||||
2006
Directors’ Stock Option and Incentive Plan
|
— | $ | — | 103,907 | ||||||||
2002
Employee Stock Purchase Plan
|
— | $ | — | — | ||||||||
Equity
compensation not approved by stockholders
|
63,098 | $ | 23.40 | 176,189 |
Name of Beneficial Owner
|
Common Stock
Beneficially Owned
|
Percent(1)
|
||||||
Patrick
H. Arbor (2)
|
85,591 | * | ||||||
Gregory
S. Curhan (3)
|
22,675 | * | ||||||
William
J. Febbo (4)
|
259,271 | 2.0 | % | |||||
Robert
E. Ford (5)
|
56,454 | * | ||||||
Robert
J. Majteles (6)
|
0 | * | ||||||
D.
Jonathan Merriman
|
541,131 | 4.3 | % | |||||
Raymond
J. Minehan (7)
|
42,764 | * | ||||||
Dennis
G. Schmal (8)
|
48,287 | * | ||||||
Jeffrey
M. Soinski (9)
|
3,400 | * | ||||||
John
M. Thompson (10)
|
81,977 | * | ||||||
Steven
W. Town (11)
|
82,737 | * | ||||||
All
directors and executive officers as a group [13 persons] (12)
|
1,243,797 | 9.8 | % | |||||
Highfields
Capital Management LP (13)
John
Hancock Tower
200
Clarendon Street
Boston,
MA 02116
|
1,146,461 | 9.0 | % |
*
|
Less
than one percent.
|
(1)
|
Applicable
percentage ownership is based on 12,733,296 shares of common stock
outstanding as of March 31, 2009. Pursuant to the rules of the Securities
and Exchange Commission, shares shown as “beneficially” owned include all
shares of which the persons listed have the right to acquire beneficial
ownership within 60 days of March 31, 2009, including (a) shares subject
to options, warrants or any other rights exercisable within 60 days March
31, 2009, even if these shares are not currently outstanding, (b) shares
attainable through conversion of other securities, even if these shares
are not currently outstanding, (c) shares that may be obtained under the
power to revoke a trust, discretionary account or similar arrangement and
(d) shares that may be obtained pursuant to the automatic termination of a
trust, discretionary account or similar arrangement. This information is
not necessarily indicative of beneficial ownership for any other purpose.
Our directors and executive officers have sole voting and investment power
over the shares of common stock held in their names, except as noted in
the following footnotes.
|
(2)
|
Includes
Mr. Arbor’s currently exercisable option to purchase 17,858 shares of
common stock at $2.87 per share. Also includes Mr. Arbor’s 34,858 shares
of restricted common stock, currently eligible to have their restriction
lifted.
|
(3)
|
Mr.
Curhan served as Executive Vice President from January 2002 to January
2009.
|
(4)
|
Includes
Mr. Febbo’s 255,731 shares of restricted common stock, which are currently
eligible to have their restriction
lifted.
|
(5)
|
Includes
Mr. Ford’s 32,143 shares of restricted common stock, which are not
currently eligible to have their restriction
lifted.
|
(6)
|
Mr.
Majteles served on the Board of Directors from November 2008 to March
2009.
|
(7)
|
Includes
Mr. Minehan’s 36,332 restricted shares of common stock, currently eligible
to have their restriction lifted.
|
(8)
|
Includes
Mr. Schmal’s 35,857 restricted shares of common stock, currently eligible
to have their restriction lifted.
|
(9)
|
Includes
Mr. Soinski’s 3,400 restricted shares of common stock, currently eligible
to have their restriction lifted.
|
(10)
|
Includes
Mr. Thompson’s 61,977 restricted shares of common stock, which are
currently eligible to have their restriction
lifted.
|
(11)
|
Includes
Mr. Town’s option to purchase 16,429 shares of common stock at $2.87 per
share, all of which are currently exercisable. Also includes Mr. Town’s
35,468 restricted shares of common stock, currently eligible to have their
restriction lifted.
|
(12)
|
The
total for directors and executive officers as a group includes 34,350
shares subject to outstanding stock options that are currently exercisable
and zero shares subject to outstanding warrants that are currently
exercisable. All directors and executive officers have the business
address of 600 California Street, 9th
Floor, San Francisco, CA 94108.
|
(13)
|
According
to Schedule 13G/A filed February 17, 2009, Highfields Capital Management,
LP is the investment manager to each of three funds: Highfields Capital I
LP, Highfields Capital II LP, and Highfields Capital III LP (collectively
the “Funds”). The Funds directly own 1,146,461 shares of common stock.
Highfields Capital Management, LP; Highfields GP, LLC, the general partner
of Highfields Capital Management, LP; Highfields Associates, LLC, the
general partner of the Funds; Jonathon S. Jacobson, a Managing Member of
Highfields GP and a Senior Managing Member of Highfields Associates;
Richard L. Grubman, a Managing Member of Highfields GP and a Senior
Managing Member of Highfields Associates are each members of a voting
group that have voting power over the shares. Highfields Capital I LP has
sole voting power over 117,912 of the shares. Highfields Capital II LP has
sole voting power over 225,448 of the shares. Highfields Capital III LP, a
Cayman Islands, B.W.I., has sole voting power over 803,101 of the shares.
The securities were acquired from the Company as part of a private
placement closed on April 3, 2003.
|
(a)
|
1.
|
The
information required by this item is included in Item 8 of Part II of this
Annual Report on Form 10-K.
|
2.
|
Financial
Statement Schedules
|
3.
|
Exhibits
|
Merriman
Curhan Ford Group, Inc.
|
||
April
30, 2009
|
By:
|
/s/
D. Jonathan Merriman
|
D.
Jonathan Merriman,
|
||
Chief
Executive Officer
|
Signature
|
|
Title
|
|
Date
|
/s/
D. Jonathan Merriman
|
Chief
Executive Officer
|
April
30, 2009
|
||
D.
Jonathan Merriman
|
||||
/s/
Peter V. Coleman
|
Chief
Financial Officer and
|
April
30, 2009
|
||
Peter
V. Coleman
|
Principal
Accounting Officer
|
|||
/s/
John M. Thompson
|
Chairman
of the Board of Directors
|
April
30, 2009
|
||
John
M. Thompson
|
||||
/s/
Patrick H. Arbor
|
Director
|
April
30, 2009
|
||
Patrick
H. Arbor
|
||||
/s/
William J. Febbo
|
Director
|
April
30, 2009
|
||
William
J. Febbo
|
||||
/s/
Raymond J. Minehan
|
Director
|
April
30, 2009
|
||
Raymond
J. Minehan
|
||||
/s/
Dennis G. Schmal
|
Director
|
April
30, 2009
|
||
Dennis
G. Schmal
|
||||
/s/
Jeffrey M. Soinski
|
Director
|
April
30, 2009
|
||
Jeffrey
M. Soinski
|
||||
/s/
Steven W. Town
|
Director
|
April
30, 2009
|
||
Steven
W. Town
|
Exhibit No.
|
Description
|
|
|
||
3.1
|
Certificate
of Incorporation, as amended (incorporated herein by reference to Exhibit
3.1 to MCF’s Registration Statement on Form S-1 (Reg. No.
333-37004)).
|
|
3.3
|
Amended
and Restated Bylaws, as amended. (incorporated by reference to Exhibit
10.3 to MCF’s Registration Statement on Form S-1 (Reg. No.
333-53316)).
|
|
3.4
|
Certificate
of Amendment to the Certificate of Incorporation changing name from MCF
Corporation to Merriman Curhan Ford Group, Inc. (incorporated herein by
reference to Exhibit 99.2 to MCF’s Current Report on Form 8-K filed on May
14, 2008 (Reg. No. 001-15831).
|
|
4.1
|
Form
of Convertible Subordinated Note related to MCF private financing, dated
November 26, 2001 (incorporated by reference to Exhibit 4.1 to MCF’s Form
10-K for the year ended December 31, 2001) (Reg. No.
001-15831).
|
|
4.2
|
Form
of Class A Redeemable Warrant to Purchase Common Stock of MCF related to
Merriman Curhan Ford Group, Inc. private financing, dated November 26,
2001 (incorporated by reference to Exhibit 4.2 to MCF’s Form 10-K for the
year ended December 31, 2001) (Reg. No. 001-15831).
|
|
10.13+
|
Employment
Agreement between MCF and D. Jonathan Merriman dated October 5, 2000
(incorporated herein by reference to Exhibit 10.15 to MCF’s Registration
Statement on Form S-1 (Reg. No. 333-53316)).
|
|
10.15+
|
1999
Stock Option Plan (incorporated herein by reference to Exhibit 4.1 to
MCF’s Registration Statement on Form S-8 (Reg.
No.333-43776)).
|
|
10.16+
|
Form
of Non-Qualified, Non-Plan Stock Option Agreement dated February 24, 2000
between MCF and Phillip Rice, Nick Cioll, Paul Wescott, Ross Mayfield,
Russ Matulich, Terry Ginn, Donald Sledge, Christopher Vizas, Douglas Cole,
Ronald Spears and Jonathan Merriman (incorporated by reference to Exhibit
4.2 to MCF’s Registration Statement on Forms S-8 (Reg. No.
333-43776)).
|
|
10.17+
|
Schedule
of non-plan option grants made under Non-Qualified, Non-Plan Stock Option
Agreements to directors and executive officers (incorporated herein by
reference to Exhibit 10.19 to MCF’s Registration Statement on Form S-1
(Reg. No. 333-53316)).
|
|
10.18+
|
2000
Stock Option and Incentive Plan, as amended (incorporated herein by
reference to Exhibit 10.20 to MCF’s Registration Statement on Form S-1
(Reg. No. 333-53316)).
|
|
10.23
|
Master
Equipment Lease Agreement dated March 16, 2000 (incorporated by reference
to Exhibit 10.6 to MCF’s Registration Statement on Form S-1 (Reg. No.
333-37004)).
|
|
10.29
|
Agreement
between MCF and BL Partners related to RMG Partners Corporation, dated
April 8, 2001 (incorporated by reference to Exhibit 10.1 to MCF’s Form
10-Q for the quarter ended June 30, 2001) (Reg. No.
001-15831).
|
Exhibit No.
|
Description
|
|
10.30+
|
Offer
of Employment Agreement between Merriman Curhan Ford Group, Inc. and
Robert E. Ford, dated February 19, 2001, is Exhibit 10.2 to Form 10-Q for
the quarter ended June 30, 2001, and is hereby incorporated by reference
(Reg. No. 001-15831).
|
|
10.31
|
Ratexchange
Placement Agreement with Murphy & Durieu, dated November 28, 2001, for
private financing transaction (incorporated by reference to Exhibit 10.31
to MCF’s Form 10-K for the year ended December 31, 2001) (Reg. No.
001-15831).
|
|
10.32
|
|
Form
of Placement Agent Warrant to Murphy & Durieu, dated November 28, 2001
(incorporated by reference to Exhibit 10.32 to MCF’s Form 10-K for the
year ended December 31, 2001) (Reg. No. 001-15831).
|
10.33
|
Convertible
Promissory Note held by Forsythe/McArthur Associates, Inc., dated
September 1, 2001, related to restructure of Master Equipment Lease
Agreement that is Exhibit 10.23 to Form 10K for the year ended December
31, 2000 (incorporated by reference to Exhibit 10.33 to MCF’s Form 10-K
for the year ended December 31, 2001) (Reg. No.
001-15831).
|
|
10.34+
|
Employment
Agreement between MCF and Gregory S. Curhan, dated January 9, 2002
(incorporated by reference to Exhibit 10.34 to MCF’s Form 10-K for the
year ended December 31, 2001) (Reg. No. 001-15831).
|
|
10.35+
|
Employment
Agreement between Merriman Curhan Ford Group, Inc. and Robert E. Ford,
dated January 1, 2002 (incorporated by reference to Exhibit 10.35 to MCF’s
Form 10-K for the year ended December 31, 2001) (Reg. No.
001-15831).
|
|
10.37
|
Stock
Purchase Agreement by and among MCF and InstreamSecurities, Inc, (formerly
known as Spider Securities, Inc.) and Independent Advantage Financial
& Insurance Services, Inc., dated December 7, 2001 (incorporated by
reference to Exhibit 10.37 to MCF’s Form 10-K for the year ended December
31, 2001) (Reg. No. 001-15831).
|
|
10.38
|
Agreement
to Restructure Convertible Promissory Note held by Forsythe McArthur
Associates, dated November 20, 2002 (incorporated by reference to Exhibit
10.38 to MCF’s Form 10-K for the year ended December 31, 2001) (Reg. No.
001-15831).
|
|
10.39
|
Securities
Exchange Agreement in connection with Merriman Curhan Ford Group, Inc.
dated June 22, 2003 (incorporated by reference to Exhibit 99.1 to MCF’s
Form 8-K filed on July 3, 2003) (Reg. No.
001-15831).
|
Exhibit No.
|
Description
|
|
10.43
|
Stock
Purchase Agreement by and between Merriman Curhan Ford Group, Inc. and
Ascend Services Ltd., dated April 29, 2005; together with the following
documents which form exhibits thereto: Escrow Agreement and Registration
Rights Agreement (incorporated by reference to the registrant’s Report on
Form 10-Q for the quarter ended March 31, 2005) (Reg. No.
001-15831).
|
|
10.44
|
Promissory
Note issued by Ascend Services Ltd dated April 29, 2005 (incorporated by
reference to the registrant’s Report on Form 10-Q for the quarter ended
March 31, 2005) (Reg. No. 001-15831).
|
|
10.45
|
Employment
Agreement between Merriman Curhan Ford Group, Inc. and Gregory S. Curhan,
dated January 1, 2005 (incorporated by reference to the registrant’s
Report on Form 10-Q for the quarter ended June 30,
2005).
|
|
10.46
|
Employment
Agreement between Merriman Curhan Ford Group, Inc. and Robert E. Ford,
dated January 1, 2005. (incorporated by reference to the registrant’s
Report on Form 10-Q for the quarter ended June 30, 2005) (Reg. No.
001-15831).
|
|
21.1
|
List
of Subsidiaries of MCF.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
31.1
|
Certification
of Principal Executive Officer Pursuant To Section 302 of The
Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification
of Principal Financial Officer Pursuant To Section 302 of The
Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification
of Principal Executive Officer and Principal Financial Officer Pursuant to
18 U.S.C. Section
1350.
|
+
|
Represents
management contract or compensatory plan or
arrangement.
|