##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-QSB

(Mark One)


|    |  |                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|[X] |  | Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange
        
       
       
           
     
     
     Act of 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003

OR

|     |  |                                                                                                                                               
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|[  ] |  | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange
        
       
       
           
     
     
     Act of 1934

for the transition period from  to

Commission file number 333-66859

INTREPID CAPITAL CORPORATION

(Exact name of Registrant as specified in its Charter)


|                                                                |  |                                     
|--------------------------------------------------------------- |  | ------------------------------------
|DELAWARE                                                        |  | 59-3546446                          
|(State of Incorporation)                                        |  | (I.R.S. Employer Identification No.)
|                                                                |  |                                     
|3652 South Third Street, Suite 200, Jacksonville Beach, Florida |  | 32250                               
|(Address of principal executive offices)                        |  | (Zip Code)                          

(904) 246-3433
(Registrants telephone number)

N/A
(Former name, former address and former fiscal year, if changed since last report)

As of September 30, 2003, there were 3,399,183 shares of Common Stock,
$0.01 par value per share, outstanding, and 1,000 shares of Common Stock issued
and held in treasury.

Transitional Small Business Disclosure Format (check one): Yes [  ]
No [X]





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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES

Index to Form 10-QSB
For the Quarter Ended September 30, 2003

|                                                                       |                                                                                                                                                                                     |                                |                             |       |  |  | 
|---------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | --------------------------- | ----- |  |  | 
|                                                                       |                                                                                                                                                                                     | PART I  FINANCIAL INFORMATION |                             |       |  | 
|Item 1       Financial Statements                                      |                                                                                                                                                                                     |                                |                             |      
|                                                                       | Condensed Consolidated Balance Sheets of
Intrepid CapitalCorporation and Subsidiaries
as of September 30, 2003 (unaudited) and
December 31, 2002                                    |                                |                             | 3     | 
|                                                                       | Condensed Consolidated Statements of
Operations of Intrepid Capital Corporation
and Subsidiaries for the Three and Nine Month
Periods Ended September 30, 2003 and 2002
(unaudited) |                                |                             | 4     | 
|                                                                       | Condensed Consolidated Statements of Cash
Flows of Intrepid Capital Corporation and
Subsidiaries for the Nine Month Periods Ended
September 30, 2003 and 2002 (unaudited)           |                                |                             | 5     | 
|                                                                       | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                                                                    |                                |                             | 6-13  | 
|Item 2       Managements Discussion and Analysis or Plan of Operation |                                                                                                                                                                                     |                                |                             |      
|                                                                       | Critical Accounting Policies and Estimates                                                                                                                                          |                                |                             | 13-14 | 
|                                                                       | Discontinued Operations                                                                                                                                                             |                                |                             | 14    | 
|                                                                       | Liquidity and Capital Resources                                                                                                                                                     |                                |                             | 14-15 | 
|                                                                       | Results of Operations                                                                                                                                                               |                                |                             | 15-17 | 
|Item 3       Controls and Procedures                                   |                                                                                                                                                                                     |                                | 18                          |      
|                                                                       |                                                                                                                                                                                     |                                | PART II  OTHER INFORMATION |       |  |  | 
|Item 1       Legal Proceedings                                         |                                                                                                                                                                                     |                                | 18                          |      
|Item 2       Changes in Securities and Use of Proceeds                 |                                                                                                                                                                                     |                                | 18                          |      
|Item 3       Defaults upon Senior Securities                           |                                                                                                                                                                                     |                                | 18                          |      
|Item 4       Submission of Matters to a Vote of Security Holders       |                                                                                                                                                                                     |                                | 18                          |      
|Item 5       Other Information                                         |                                                                                                                                                                                     |                                | 18-19                       |      
|Item 6       Exhibits and Reports on Form 8-K                          |                                                                                                                                                                                     |                                | 19                          |      
|Signatures and Certifications                                          |                                                                                                                                                                                     |                                | 20                          |      

2



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##### 



ITEM 1. FINANCIAL INFORMATION

INTREPID CAPITAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance
Sheets
September 30, 2003 and December 31, 2002

|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |           | 
|-------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------ | --------- | ----------- | --------- | ---- | --------- | ---------- | --------- | 
|                                                                                                               |                                                                                                                                            |                                      |           | 2003        |           | 2002
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |     
|                                                                                                               |                                                                                                                                            |                                      |           | (unaudited) |           |      |           |           
|                                                                                                               |                                                                                                                                            | Assets                               |           |             |           |      |           |            |           | 
|Current assets:                                                                                                |                                                                                                                                            |                                      |           |             |           |      |           |           
|                                                                                                               | Cash and cash equivalents                                                                                                                  |                                      | $         | 28,185      |           |      | $         | 5,353      |          
|                                                                                                               | Investments, at fair value                                                                                                                 |                                      |           | 76,377      |           |      |           | 128,724    |          
|                                                                                                               | Accounts receivable                                                                                                                        |                                      |           | 17,724      |           |      |           | 23,637     |          
|                                                                                                               | Taxes receivable                                                                                                                           |                                      |           | 19,000      |           |      |           | 439,000    |          
|                                                                                                               | Prepaid and other assets                                                                                                                   |                                      |           | 27,524      |           |      |           | 202,332    |          
|                                                                                                               | Assets of discontinued operations (note 2)                                                                                                 |                                      |           |            |           |      |           | 387,289    |          
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Total current assets                 |           |             | 168,810   |      |           |            | 1,186,335 | 
|Notes receivable (note 9)                                                                                      |                                                                                                                                            |                                      |          |             |           |      | 323,919   |           
|Equipment and leasehold improvements, net of accumulated
depreciation of $288,861 in 2003 and $211,826 in 2002 |                                                                                                                                            |                                      | 307,168   |             |           |      | 412,962   |           
|Intangible assets, less accumulated amortization of $196,624
in 2003 and $111,401 in 2002                      |                                                                                                                                            |                                      | 694,600   |             |           |      | 779,823   |           
|Goodwill                                                                                                       |                                                                                                                                            |                                      | 3,564,898 |             |           |      | 3,564,898 |           
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Total assets                         |           | $           | 4,735,476 |      |           | $          | 6,267,937 | 
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Liabilities and Stockholders Equity |           |             |           |      |           |            |           | 
|Current liabilities:                                                                                           |                                                                                                                                            |                                      |           |             |           |      |           |           
|                                                                                                               | Accounts payable                                                                                                                           |                                      | $         | 177,780     |           |      | $         | 265,358    |          
|                                                                                                               | Accrued expenses                                                                                                                           |                                      |           | 722,638     |           |      |           | 480,683    |          
|                                                                                                               | Current portion of notes payable                                                                                                           |                                      |           | 595,143     |           |      |           | 600,000    |          
|                                                                                                               | Other                                                                                                                                      |                                      |           | 15,017      |           |      |           | 72,501     |          
|                                                                                                               | Liabilities of discontinued operations (note 2)                                                                                            |                                      |           |            |           |      |           | 89,786     |          
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Total current liabilities            |           |             | 1,510,578 |      |           |            | 1,508,328 | 
|Deferred compensation                                                                                          |                                                                                                                                            |                                      | 114,222   |             |           |      | 174,972   |           
|Pension plan obligation                                                                                        |                                                                                                                                            |                                      | 210,647   |             |           |      | 212,826   |           
|Notes payable, less current portion                                                                            |                                                                                                                                            |                                      | 75,000    |             |           |      |          |           
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Total liabilities                    |           |             | 1,910,447 |      |           |            | 1,896,126 | 
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|Stockholders equity:                                                                                          |                                                                                                                                            |                                      |           |             |           |      |           |           
|                                                                                                               | Preferred stock, Class A, $.01 par value. Authorized 5,000,000
shares; issued 1,166,666 shares at September 30, 2003 and
December 31, 2002 |                                      |           | 3,500,000   |           |      |           | 3,500,000  |          
|                                                                                                               | Common stock, $.01 par value. Authorized 15,000,000 shares; issued
3,400,183 shares at September 30, 2003 and December 31, 2002            |                                      |           | 34,002      |           |      |           | 34,002     |          
|                                                                                                               | Treasury stock, at cost - 1,000 shares                                                                                                     |                                      |           | (3,669      | )         |      |           | (3,669     | )        
|                                                                                                               | Additional paid-in capital                                                                                                                 |                                      |           | 3,350,918   |           |      |           | 3,482,168  |          
|                                                                                                               | Accumulated deficit                                                                                                                        |                                      |           | (4,056,222  | )         |      |           | (2,640,690 | )        
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | Total stockholders equity           |           |             | 2,825,029 |      |           |            | 4,371,811 | 
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          
|                                                                                                               |                                                                                                                                            | $                                    | 4,735,476 |             |           | $    | 6,267,937 |           
|                                                                                                               |                                                                                                                                            |                                      |           |             |           |      |           |            |          

See accompanying notes to condensed consolidated financial statements.

3



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

Three and Nine month periods ended September 30, 2003 and 2002

(unaudited)

|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |            |           | 
|------------------------------------------- | ------------------------------------------ | --------------------------------------------------- | ---------------------------------------------- | --------- | ------------------ | --------- | ------------------ | -------- | -------- | --------- | --------- | --------- | ---------- | ---------- | --------- | --------- | ---------- | --------- | 
|                                            |                                            |                                                     |                                                |           | Three months       |           | Nine months       
|                                            |                                            |                                                     |                                                |           | ended September 30 |           | ended September 30
|                                            |                                            |                                                     |                                                |           | 2003               |           | 2002               |          | 2003     |           | 2002     
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |          
|Revenues:                                   |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |          
|                                            | Asset management fees                      |                                                     | $                                              | 1,013,982 |                    |           | $                  | 922,897  |          |           | $         | 2,825,580 |            |            | $         | 2,566,658 |           
|                                            | Other                                      |                                                     |                                                | 32,345    |                    |           |                    | (7,243   | )        |           |           | 85,670    |            |            |           | 43,355    |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            |                                                     | Total revenues                                 |           |                    | 1,046,327 |                    |          |          | 915,654   |           |           |            | 2,911,250  |           |           |            | 2,610,013 | 
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|Expenses:                                   |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |          
|                                            | Salaries and employee benefits             |                                                     |                                                | 610,283   |                    |           |                    | 707,422  |          |           |           | 2,553,986 |            |            |           | 2,721,485 |           
|                                            | Advertising and marketing                  |                                                     |                                                | 48,575    |                    |           |                    | 262,391  |          |           |           | 447,067   |            |            |           | 528,063   |           
|                                            | Professional and regulatory fees           |                                                     |                                                | 151,306   |                    |           |                    | 275,834  |          |           |           | 462,703   |            |            |           | 508,524   |           
|                                            | Occupancy and maintenance                  |                                                     |                                                | 94,789    |                    |           |                    | 119,071  |          |           |           | 280,971   |            |            |           | 336,615   |           
|                                            | Depreciation and amortization              |                                                     |                                                | 55,533    |                    |           |                    | 73,303   |          |           |           | 169,588   |            |            |           | 177,001   |           
|                                            | Interest expense                           |                                                     |                                                | 38,869    |                    |           |                    | 21,923   |          |           |           | 72,265    |            |            |           | 88,785    |           
|                                            | Loss on sale of notes receivable           |                                                     |                                                | 139,035   |                    |           |                    |         |          |           |           | 139,035   |            |            |           |          |           
|                                            | Other                                      |                                                     |                                                | 52,055    |                    |           |                    | 154,956  |          |           |           | 279,898   |            |            |           | 434,014   |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            |                                                     | Total expenses                                 |           |                    | 1,190,445 |                    |          |          | 1,614,900 |           |           |            | 4,405,513  |           |           |            | 4,794,487 | 
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            | Loss from continuing operations before income taxes |                                                |           | (144,118           | )         |                    |          | (699,246 | )         |           |           | (1,494,263 | )          |           |           | (2,184,474 | )        
|Income tax benefit                          |                                            |                                                     |                                               |           |                    |           | (411,244           | )        |          |           |          |           |            |            | (510,124  | )        
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            | Loss from continuing operations                     |                                                |           | (144,118           | )         |                    |          | (288,002 | )         |           |           | (1,494,263 | )          |           |           | (1,674,350 | )        
|Discontinued operations:                    |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |          
|                                            | Income (loss) from discontinued operations |                                                     |                                                | 11,783    |                    |           |                    | (440,228 | )        |           |           | 19,799    |            |            |           | 2,153,720 |           
|                                            | Income on sale of discontinued operations  |                                                     |                                                |          |                    |           |                    |         |          |           |           | 58,932    |            |            |           |          |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            |                                                     | Total discontinued operations                  |           |                    | 11,783    |                    |          |          | (440,228  | )         |           |            | 78,731     |           |           |            | 2,153,720 | 
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            |                                                     | Net income (loss)                              |           |                    | (132,335  | )                  |          |          | (728,230  | )         |           |            | (1,415,532 | )         |           |            | 479,370   | 
|Dividends on preferred stock                |                                            |                                                     | 43,750                                         |           |                    |           | 43,750             |          |          |           | 131,250   |           |            |            | 89,897    |          
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            |                                            |                                                     | Net income (loss) attributable to common stock |           | $                  | (176,085  | )                  |          | $        | (771,980  | )         |           | $          | (1,546,782 | )         |           | $          | 389,473   | 
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|Income (loss) per common share - Basic:     |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |          
|                                            | Loss from continuing operations            |                                                     | $                                              | (0.06     | )                  |           | $                  | (0.10    | )        |           | $         | (0.48     | )          |            | $         | (0.52     | )         
|                                            | Discontinued operations                    |                                                     |                                                | 0.01      |                    |           |                    | (0.13    | )        |           |           | 0.02      |            |            |           | 0.64      |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            | Net income (loss) per share                |                                                     | $                                              | (0.05     | )                  |           | $                  | (0.23    | )        |           | $         | (0.46     | )          |            | $         | 0.12      |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|Income (loss) per common share - Diluted:   |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |          
|                                            | Loss from continuing operations            |                                                     | $                                              | (0.06     | )                  |           | $                  | (0.10    | )        |           | $         | (0.48     | )          |            | $         | (0.52     | )         
|                                            | Discontinued operations                    |                                                     |                                                | 0.01      |                    |           |                    | (0.13    | )        |           |           | 0.02      |            |            |           | 0.64      |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|                                            | Net income (loss) per share                |                                                     | $                                              | (0.05     | )                  |           | $                  | (0.23    | )        |           | $         | (0.46     | )          |            | $         | 0.12      |           
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|Basic weighted average shares outstanding   |                                            |                                                     | 3,399,183                                      |           |                    |           | 3,349,183          |          |          |           | 3,399,183 |           |            |            | 3,349,183 |          
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           
|Diluted weighted average shares outstanding |                                            |                                                     | 3,399,183                                      |           |                    |           | 3,349,183          |          |          |           | 3,399,183 |           |            |            | 3,349,183 |          
|                                            |                                            |                                                     |                                                |           |                    |           |                    |          |          |           |           |           |            |            |           |           |           

See accompanying notes to condensed consolidated financial statements.

4



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of
Cash Flows
Nine months ended September 30, 2003 and 2002
(unaudited)

|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |            |         |          |          |  
|------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------- | ------------------------------------------------ | ---------------------------------------------------- | ------- | ------- | -------- | ---------- | ------- | -------- | -------- | -
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         | 2003    |          | 2002      
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Cash flows from operating activities:             |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Net income (loss)                                                                                  |                                       | $                                                | (1,415,532                                           | )       |         | $        | 479,370    |        
|                                                  | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                       |                                                  |                                                      |         |         |          |            |        
|                                                  |                                                                                                    | Depreciation and amortization         |                                                  |                                                      | 162,258 |         |          |            | 177,000 |         
|                                                  |                                                                                                    | Gain on disposal of assets            |                                                  |                                                      |        |         |          |            | (936    | )       
|                                                  |                                                                                                    | (Purchases) sales of investments, net |                                                  |                                                      | 56,689  |         |          |            | (3,880  | )       
|                                                  |                                                                                                    | Net trading profits                   |                                                  |                                                      | (4,342  | )       |          |            | (310    | )       
|                                                  |                                                                                                    | Gain on divestment                    |                                                  |                                                      | (58,932 | )       |          |            |        |         
|                                                  |                                                                                                    | Change in assets and liabilities:     |                                                  |                                                      |         |         |          |            |         |         
|                                                  |                                                                                                    |                                       | Accounts receivable                              |                                                      |         | 5,913   |          |            |         | (34,131  | )       
|                                                  |                                                                                                    |                                       | Prepaid and other assets                         |                                                      |         | 74,808  |          |            |         | (458,007 | )       
|                                                  |                                                                                                    |                                       | Accounts payable and accrued expenses            |                                                      |         | 157,374 |          |            |         | 41,591   |         
|                                                  |                                                                                                    |                                       | Taxes receivable                                 |                                                      |         | 420,000 |          |            |         |         |         
|                                                  |                                                                                                    |                                       | Deferred compensation                            |                                                      |         | (60,750 | )        |            |         | 195,223  |         
|                                                  |                                                                                                    |                                       | Pension obligation                               |                                                      |         | (2,179  | )        |            |         | (1,622   | )       
|                                                  |                                                                                                    |                                       | Other liabilities                                |                                                      |         | (57,484 | )        |            |         | (95,992  | )       
|                                                  |                                                                                                    |                                       | Discontinued operation - working capital changes |                                                      |         | 89,152  |          |            |         | (197,960 | )       
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  |                                                                                                    |                                       |                                                  | Net cash provided by (used in) operating activities  |         |         | (633,025 | )          |         |          | 100,346  |  
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Cash flows from investing activities:             |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Purchase of equipment                                                                              |                                       |                                                  | (2,105                                               | )       |         |          | (259,561   | )      
|                                                  | Proceeds from disposal of equipment                                                                |                                       |                                                  | 30,864                                               |         |         |          | 28,327     |        
|                                                  | Proceeds from divestment (net of fees of $52,717)                                                  |                                       |                                                  | 247,283                                              |         |         |          |           |        
|                                                  | Payment of subordinated promissory notes receivable                                                |                                       |                                                  | 323,919                                              |         |         |          |           |        
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  |                                                                                                    |                                       |                                                  | Net cash provided by (used in) investing activities  |         |         | 599,961  |            |         |          | (231,234 | )
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Cash flows from financing activities:             |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Proceeds from notes payable                                                                        |                                       |                                                  | 592,949                                              |         |         |          | 1,500,000  |        
|                                                  | Proceeds from cash surrender value loans                                                           |                                       |                                                  | 120,000                                              |         |         |          |           |        
|                                                  | Principal payments on notes payable                                                                |                                       |                                                  | (522,806                                             | )       |         |          | (1,625,000 | )      
|                                                  | Preferred stock dividends paid                                                                     |                                       |                                                  | (134,247                                             | )       |         |          |           |        
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  |                                                                                                    |                                       |                                                  | Net cash provided by (used in) financing activities  |         |         | 55,896   |            |         |          | (125,000 | )
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  |                                                                                                    |                                       |                                                  | Net increase (decrease) in cash and cash equivalents |         |         | 22,832   |            |         |          | (255,888 | )
|Cash and cash equivalents at beginning of period  |                                                                                                    |                                       | 5,353                                            |                                                      |         |         | 641,577  |           
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Cash and cash equivalents at end of period        |                                                                                                    | $                                     | 28,185                                           |                                                      |         | $       | 385,689  |           
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Supplemental disclosure of cash flow information: |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Cash paid for interest during the period                                                           |                                       | $                                                | 39,638                                               |         |         | $        | 91,463     |        
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|Supplemental disclosure of non-cash transactions: |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Preferred stock issued to AJG upon conversion of AJG Note                                          |                                       | $                                                |                                                     |         |         | $        | 3,500,000  |        
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           
|                                                  | Preferred stock dividends accrued but not paid                                                     |                                       | $                                                | 131,250                                              |         |         | $        | 89,897     |        
|                                                  |                                                                                                    |                                       |                                                  |                                                      |         |         |          |           

See accompanying notes to condensed consolidated financial statements.

5



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



|(1) |  | Summary of Significant Accounting Policies and Operations
|--- |  | ---------------------------------------------------------



| | (a) |  | Organization and Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     |  | Intrepid Capital Corporation (the Company), incorporated in 1998, is
a Florida-based financial services holding company that conducts its
business through its wholly-owned subsidiary, Intrepid Capital
Management, Inc. (ICM).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |     |  | ICM, a registered investment advisor, manages equity, fixed-income,
and balanced portfolios for public and private companies, labor
unions, endowments, foundations, and high net worth individuals and
families. ICM has received authority to act as an investment manager
in several states to meet the needs of its customers throughout the
United States.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |     |  | In a transaction effective October 30, 2001, the Company discontinued
its resinous material operations formerly conducted through Enviroq
Corporation (Enviroq) by selling all of the issued and outstanding
capital stock of Sprayroq, Inc. (Sprayroq), Enviroqs 50% owned
subsidiary. Enviroq remains a wholly-owned subsidiary of the Company
which held the promissory notes received in connection with the sale
(see note 9), but conducts no operations currently.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |     |  | In a transaction effective December 31, 2001, the Company acquired all
of the outstanding stock of ICC Investment Advisors, Inc., the
operations of which were conducted through its wholly-owned
subsidiary, The Investment Counsel Company (ICC). Subsequent to the
acquisition, ICC was merged with and into ICM.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |     |  | In a transaction effective June 16, 2003, the Company discontinued its
investment banking operations conducted through Allen C. Ewing & Co.
(Ewing), and accordingly, the Company has reported its operations as
discontinued for all periods presented. Pursuant to the terms of a
Stock Purchase Agreement dated May 2, 2003, the purchaser acquired all
of the issued and outstanding capital stock of Ewing (see note 2).
With the sale of Ewing, the Companys sole operating business segment
is its investment management services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |     |  | The interim financial information included herein is unaudited.
Certain information and footnote disclosures normally included in the
financial statements have been condensed or omitted pursuant to the
rules and regulations of the SEC. The Company believes that the
disclosures made herein are adequate to make the information presented
not misleading. These financial statements should be read in
conjunction with the financial statements and related notes contained
in the Companys Amended Annual Report on Form 10-KSB/A filed with the
SEC on August 25, 2003. Except as indicated herein, there have been
no significant changes from the financial data published in the
Companys Annual Report. In the opinion of management, such unaudited
information reflects all adjustments, consisting of normal recurring
accruals, necessary for fair presentation of the unaudited
information. The results of operations for the three and nine month
periods ended September 30, 2003 are not necessarily indicative of the
results that may be expected for the full year.

6



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



| | (b) |  | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     |  | The accompanying consolidated financial statements include the
accounts of the Company and its subsidiaries, ICM and Enviroq. Also
included are the accounts of Ewing which have been reported as
discontinued operations (see note 2). All significant intercompany
balances and transactions have been eliminated in consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (c) |  | Earnings Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |     |  | Net income per share of common stock is computed based upon the
weighted average number of common shares and share equivalents
outstanding during the period. Stock warrants and convertible
instruments, when dilutive, are included as share equivalents. For
the three and nine months ended September 30, 2003 and 2002, diluted
net loss per share is the same as basic net loss per share as the
effects of including potentially dilutive securities in the
computation is anti-dilutive. The potentially dilutive securities
excluded from the calculation of earnings per share consisted of
Preferred Stock convertible into 1,166,666 shares of Common Stock in
addition to unexercised options and warrants.                                                                                                    
|
| | (e) |  | Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |     |  | No differences between total comprehensive income (loss) and net
income (loss) existed in the financial statements reported for the
three and nine month periods ended September 30, 2003 and 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (f) |  | Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |     |  | The Company applies the intrinsic value-based method of accounting
prescribed by Accounting Principles Board Opinion No. 25, Accounting
for Stock Issued to Employees (APB 25) in accounting for its stock
options. As such, compensation expense would be recorded on the date
of grant only if the current market price of the underlying stock
exceeded the exercise price. As allowed by Statement of Financial
Accounting Standards No. 123, Accounting for Stock-Based
Compensation (FAS 123) and Statement of Financial Accounting
Standards No. 148, Accounting for Stock-Based Compensation 
Transition and Disclosure (FAS 148), the Company has elected to
apply the intrinsic value-based method
of accounting described above, and has adopted the disclosure
requirements of FAS 123 and FAS 148.
|
| |     |  | On January 21, 2003, stock options to purchase 32,500 shares were
issued under the Companys Non Employee Directors Incentive Stock
Option Plan. The options have a weighted average exercise price of
$2.17 and a term of 5 years. Additionally, on January 21, 2003, non
qualified stock options to purchase 240,000 shares were issued and
have a weighted average exercise price of $2.04 and a term of 5 years.                                                                                                                                                                                                                                                                                                                                                                                                        

7



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



| |  |  | The per share weighted-average fair value of Non Employee Directors
Incentive Stock Options and non qualified stock options granted on
January 21, 2003 were $0.36 and $0.39, respectively, using the
Black-Scholes option-pricing model with the following weighted average
assumptions: expected dividend yield 0%, risk free interest rate of
4%, expected volatility 50%, and an expected life of 5 years.                                                                                                                                                                                                     
| |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | As permitted under FAS 148 and FAS 123, the Company has elected to
continue to apply the provisions of APB 25 and provide the pro forma
disclosures required by FAS 148 and FAS 123. Accordingly, no
compensation cost has been recognized for its stock options in the
consolidated financial statements. Had the Company determined
compensation cost based on the fair value at the date of grant for its
stock options under SFAS 123, the Companys net income (loss) for the
three and nine month periods ended September 30, 2003 and 2002 would
have been reduced to the pro forma amounts indicated below:

|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |      | 
|---------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------- | - | -------------------------- | ----- | ------------------------- | - | -------- | ----- | ---- | - | ---------- | ----- | - | - | ------- | ---- | 
|                                                                                                                                   |                                               |   | Three months ended Sept 30 |       | Nine months ended Sept 30
|                                                                                                                                   |                                               |   | 2003                       |       | 2002                      |   | 2003     |       | 2002
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |     
|Reported net income (loss) available to common stockholders                                                                        |                                               | $ | (176,085                   | )     |                           | $ | (771,980 | )     |      | $ | (1,546,782 | )     |   | $ | 389,473 |     
|Deduct total stock-based compensation expense
determined under fair value based methods for all
awards, net of related tax effects |                                               |   |                           |       |                           |   |         |       |      |   | (70,210    | )     |   |   |        |     
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|Net income (loss) available to common stockholders - pro forma                                                                     |                                               | $ | (176,085                   | )     |                           | $ | (771,980 | )     |      | $ | (1,616,992 | )     |   | $ | 389,473 |     
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|Basic net income (loss) per share                                                                                                  |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|                                                                                                                                   | Reported net income (loss) per share          |   | $                          | (0.05 | )                         |   | $        | (0.23 | )    |   | $          | (0.46 | ) |   | $       | 0.12 | 
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|                                                                                                                                   | Pro forma basic net income (loss) per share   |   | $                          | (0.05 | )                         |   | $        | (0.23 | )    |   | $          | (0.48 | ) |   | $       | 0.12 | 
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|Diluted net income (loss) per share                                                                                                |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|                                                                                                                                   | Reported net income (loss) per share          |   | $                          | (0.05 | )                         |   | $        | (0.23 | )    |   | $          | (0.46 | ) |   | $       | 0.12 | 
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     
|                                                                                                                                   | Pro forma diluted net income (loss) per share |   | $                          | (0.05 | )                         |   | $        | (0.23 | )    |   | $          | (0.48 | ) |   | $       | 0.12 | 
|                                                                                                                                   |                                               |   |                            |       |                           |   |          |       |      |   |            |       |   |   |         |     



|(2) |  | Discontinued Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | During the first quarter of 2003, the Company decided to pursue the
divesture of Ewing, which formerly constituted a separate operating
segment, the investment banking segment, and accordingly, the Company has
reported its operations as discontinued for all periods presented.                                                                                                                                                                                                                     
|   
|    |  | On June 16, 2003, the Company sold Ewing pursuant to the terms of a Stock
Purchase Agreement dated May 2, 2003. The purchaser acquired all of the
issued and outstanding capital stock of Ewing for an aggregate purchase
price of $300,000, which was paid in cash by purchaser at the closing of
the transaction. The Company used $247,783 of the net proceeds to reduce
debt and $37,500 to reduce deferred compensation. The Company recorded a
$58,932 gain on the sale of discontinued operations.
|   
|    |  | Ewings assets and liabilities as of September 30, 2003 and December 31,
2002 consisted of the
following:                                                                                                                                                                                                                                                                                                                                                                                                

8



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements
September 30, 2003


|             |                                            |   |      |   |      |   |         |         | 
|------------ | ------------------------------------------ | - | ---- | - | ---- | - | ------- | ------- | 
|             |                                            |   | 2003 |   | 2002
|             |                                            |   |      |   |     
|Assets:      |                                            |   |      |   |      |   |         |        
|             | Cash and cash equivalents                  |   | $    |  |      |   | $       | 305,613 | 
|             | Accounts receivable                        |   |      |  |      |   |         | 7,329   | 
|             | Prepaid and other assets                   |   |      |  |      |   |         | 24,881  | 
|             | Equipment, net of accumulated depreciation |   |      |  |      |   |         | 15,575  | 
|             | Goodwill, net of accumulated amortization  |   |      |  |      |   |         | 33,891  | 
|             |                                            |   |      |   |      |   |         |         | 
|             |                                            |   |     |   |      |   | 387,289 |        
|             |                                            |   |      |   |      |   |         |         | 
|Liabilities: |                                            |   |      |   |      |   |         |        
|             | Accounts payable and accrued expenses      |   |      |  |      |   |         | 57,100  | 
|             | Other                                      |   |      |  |      |   |         | 32,686  | 
|             |                                            |   |      |   |      |   |         |         | 
|             |                                            | $ |     |   |      | $ | 89,786  |        
|             |                                            |   |      |   |      |   |         |         | 



|    |  | Income from discontinued operations for the nine months ended September 30,
2002 includes revenues of approximately $7.0 million earned under a single
contract with the Federal Deposit Insurance Corporation and expenses
incurred of approximately $3.7 million. The contract, which was
nonrecurring, began in January 2002 and ended in June 2002.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(3) |  | Notes Payable                                                                                                                                                                                                                                                                                                                                          
|   
|    |  | The notes payable at September 30, 2003 and December 31, 2002 consist of
the following:                                                                                                                                                                                                                                                                

|                                                                                                                                                                                                                                       |                                       |   |         |         |      |   |         |         | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | - | ------- | ------- | ---- | - | ------- | ------- | 
|                                                                                                                                                                                                                                       |                                       |   | 2003    |         | 2002
|                                                                                                                                                                                                                                       |                                       |   |         |         |     
|Subordinated convertible promissory notes payable to former
shareholder of Ewing, interest due quarterly at 8.0%,
unsecured, principal payment of $25,000 due on
December 31, 2003, and $75,000 due on December 31, 2004               |                                       | $ | 100,000 |         |      | $ | 200,000 |        
|Note payable to The Robin Shepherd Group, interest at 10%,
monthly installments of $8,122 due beginning on July 15, 2003
and extending to June 15, 2004                                                                                |                                       |   | 70,143  |         |      |   |       |        
|Forbearance agreement with Wachovia Bank, National Association
interest at prime plus 4.75% (8.75% at September 30, 2003),
principal plus interest originally due on February 28, 2003,
paid October 23, 2003                          |                                       |   | 250,000 |         |      |   | 400,000 |        
|Note payable to a bank, principal is due on demand but no later
than June 1, 2004, secured by personal guarantees of two
officers of the Company. Interest is payable monthly at a
rate of prime plus .5% (4.5% at September 30, 2003) |                                       |   | 250,000 |         |      |   |       |        
|                                                                                                                                                                                                                                       |                                       |   |         |         |      |   |         |        
|                                                                                                                                                                                                                                       |                                       |   | 670,143 |         |      |   | 600,000 |        
|                                                                                                                                                                                                                                       | Less current portion                  |   |         | 595,143 |      |   |         | 600,000 | 
|                                                                                                                                                                                                                                       |                                       |   |         |         |      |   |         |        
|                                                                                                                                                                                                                                       | Notes payable, net of current portion |   | $       | 75,000  |      |   | $       |       | 
|                                                                                                                                                                                                                                       |                                       |   |         |         |      |   |         |        

9



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



|    |  | On June 16, 2003, the former shareholder of Ewing agreed to extend the
payment terms of the $100,000 principal payment originally due on December
31, 2003. Under the new agreement, a $25,000 principal payment is due on
December 31, 2003 and the remaining $75,000 in principal is due on December
31, 2004. Interest will continue to be payable quarterly at an annual rate
of 8% until the loan is paid in full.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | On July 7, 2003, the Company entered into a Promissory Note agreement with
The Robin Shepherd Group for $92,949 as a result of fees incurred for the
production of a national television commercial aimed at informing
prospective clients of ICMs top-tier investment performance. Interest
accrues at the rate of 10% per annum with monthly installments of principal
and interest of $8,122 due through June 15, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|    |  | On July 31, 2003, the Company entered into a Forbearance Agreement with
Wachovia Bank, National Association as a result of the Companys
non-payment of the $100,000 monthly principal payments due in May, June and
July 2003 under the Renewal Promissory Note dated March 25, 2003. The
Forbearance Agreement required that the Company make an immediate payment
of $50,000 in principal plus $4,129 of accrued interest, a $50,000
principal payment by October 15, 2003 and a forbearance fee of $5,000 no
later than November 15, 2003. On August 1, 2003, the Company paid $54,129
in accordance with the terms of the Forbearance Agreement. On October 23,
2003, the Company repaid Wachovia Bank, National Association in the amount
of $262,095. Payment included $250,000 in principal, $2,595 in interest,
and $9,500 for the banks legal fees associated with the agreement.
|   
|(4) |  | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|    |  | The Company performs certain investment management functions for Intrepid
Capital, L.P., and during the nine months ended September 30, 2003 and
2002, received $48,299 and $50,002, respectively, for such services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(5) |  | Segments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|    |  | During 2003 and 2002, the Company operated in one principal segment,
investment management. The operations of Ewing formerly constituted a
separate operating segment, the investment banking segment, which have been
reclassified as a discontinued operation. The Company assesses and
measures operating performance based upon the net income (loss) derived
from each of its operating segments, exclusive of the impact of corporate
expenses operating segments, exclusive of the impact of corporate expenses.                                                                                                                                                                                                                                                                                                                                                                     
|   
|    |  | The revenues and net income (loss) for each of the reportable segments are
summarized as follows for the three and nine month periods ended September
30, 2003 and 2002:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

10



---



##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003

|                                     |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |            |  
|------------------------------------ | ----------------------------- | - | --------- | --------- | ---- | - | -------- | -------- | ---- | - | ---------- | --------- | - | - | ---------- | ---------- | -
|                                     |                               |   | 2003      |           | 2002 |   | 2003     |          | 2002
|                                     |                               |   |           |           |      |   |          |          |     
|Revenues:                            |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |           
|                                     | Investment management segment |   | $         | 1,046,327 |      |   | $        | 917,736  |      |   | $          | 2,896,514 |   |   | $          | 2,566,107  |  
|                                     | Corporate                     |   |           |          |      |   |          | 57,918   |      |   |            | 89,237    |   |   |            | 648,308    |  
|                                     | Intersegment revenues         |   |           |          |      |   |          | (60,000  | )    |   |            | (74,501   | ) |   |            | (604,402   | )
|                                     |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |            |  
|                                     |                               | $ | 1,046,327 |           |      | $ | 915,654  |          |      | $ | 2,911,250  |           |   | $ | 2,610,013  |           
|                                     |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |           
|Net loss from continuing operations: |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |           
|                                     | Investment management segment |   | $         | (144,118  | )    |   | $        | (204,881 | )    |   | $          | (967,034  | ) |   | $          | (478,598   | )
|                                     | Corporate                     |   |           |          |      |   |          | (83,121  | )    |   |            | (527,229  | ) |   |            | (1,195,752 | )
|                                     |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |            |  
|                                     |                               | $ | (144,118  | )         |      | $ | (288,002 | )        |      | $ | (1,494,263 | )         |   | $ | (1,674,350 | )         
|                                     |                               |   |           |           |      |   |          |          |      |   |            |           |   |   |            |           



| |  | The total assets for each of the reportable segments are summarized as
follows as of September 30, 2003 and December 31, 2002. Non segment assets
consist primarily of cash, certain investments and other assets, which are
recorded at the parent company level.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|        |                               |   |           |           |      |   |           |           | 
|------- | ----------------------------- | - | --------- | --------- | ---- | - | --------- | --------- | 
|        |                               |   | 2003      |           | 2002
|        |                               |   |           |           |     
|Assets: |                               |   |           |           |      |   |           |          
|        | Investment management segment |   | $         | 4,735,476 |      |   | $         | 4,729,825 | 
|        | Other                         |   |           |          |      |   |           | 1,150,823 | 
|        | Discontinued operation        |   |           |          |      |   |           | 387,289   | 
|        |                               |   |           |           |      |   |           |          
|        |                               | $ | 4,735,476 |           |      | $ | 6,267,937 |          
|        |                               |   |           |           |      |   |           |          



|(6) |  | Liquidity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | The Companys current assets consist generally of interest in an equity
fund, accounts receivable, and prepaid assets. The Company has financed
its operations with funds provided by operations, proceeds from notes
payable, liquidation of cash surrender value of insurance policies, and
proceeds from the divesture of Ewing (see note 2). The Company has
developed and is implementing a strategically focused plan that includes
internal revenue growth, cost reductions, and operational efficiencies.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    |  | The Company believes that the divesture of Ewing will allow management to
focus on leveraging the Companys expertise in investment management
services. By more closely aligning sales, client relationship management,
and fund management, the Company believes that additional revenue sources
can be derived from current relationships. The Company has taken steps,
and is continuing to take additional steps, which will allow the Company to
deliver superior service and performance at a reduced cost. These steps
have led to a reduction in recurring operating costs, as well as a more
beneficial debt reduction schedule for the Company. Management is also
looking at creating back-office efficiencies through the use of technology,
work flow processes, and the consolidation of functions. Management
believes that an improved organizational structure is beneficial to the
Company today, and will be beneficial to the Companys future success.

11



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##### 



INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



|    |  | While management believes that it will be able to support its current
operations, debt service requirements (see note 3) and capital needs
through its current cash flow, management continues to explore and identify
potential debt and equity sources of capital from private investors, which
would give the Company more flexibility in its operations and debt
reduction initiatives. Management cannot provide any assurances that such
a transaction will take place. If adequate funds are not available, the
Companys refocused strategy would be significantly limited, and such
funding limitation would have a material adverse effect on the Companys
business, results of operations, and financial condition.                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(7) |  | Goodwill and Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|    |  | Goodwill at September 30, 2003 of $3,564,898 was recorded as a part of the
purchase of ICC and, accordingly, was allocated to the investment
management segment. The Companys goodwill was recorded after the
Companys adoption of Statement of Financial Accounting Standards No. 142,
Goodwill and Other Intangible Assets (FAS 142) and is being carried at
cost. Management tests for impairment on an annual basis and between
annual tests in certain circumstances in accordance with FAS 142.                                                                                                                                                                                                                                                                                                                                                                                 
|   
|    |  | The Company has determined that certain identifiable intangible assets
exist which are attributable to the estimated fair value of investment
management contracts and customer relationships which were acquired through
the purchase of ICC and have been allocated to the investment management
segment. At September 30, 2003, identifiable intangible assets amounted to
$694,600, net of accumulated amortization of $196,624. Amortization
expense was $85,223 for the nine months ended September 30, 2003.                                                                                                                                                                                                                                                                                                                                                                         
|   
|(8) |  | Forbearance Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|    |  | On July 31, 2003, the Company entered into a Forbearance Agreement with
Wachovia Bank, National Association as a result of the Companys
non-payment of the $100,000 monthly principal payments due in May, June and
July 2003 under the Renewal Promissory Note dated March 25, 2003. The
Forbearance Agreement required that the Company make an immediate payment
of $50,000 in principal plus $4,129 of accrued interest, a $50,000
principal payment by October 15, 2003 and a forbearance fee of $5,000 no
later than November 15, 2003. On August 1, 2003, the Company paid $54,129
in accordance with the terms of the Forbearance Agreement. On October 23,
2003, the Company repaid Wachovia Bank, National Association in the amount
of $262,095. Payment included $250,000 in principal, $2,595 in interest,
and $9,500 for the banks legal fees associated with the agreement.
|   
|(9) |  | Satisfaction of Subordinated Indebtedness                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|    |  | On July 21, 2003, the Company entered into a Satisfaction of Subordinated
Indebtedness agreement to permit the discounting and prepayment of two
subordinated promissory notes receivable in the amounts of $150,000 and
$173,919 owed to Enviroq Corporation, a wholly owned subsidiary of the
Company, from Sprayroq of Ohio, Inc. The Company received a total sum of
$200,000 in prepayment of the outstanding principal balance of $323,919 and
accrued interest of $15,116. The Company recorded a loss in the amount of
$139,035 on the settlement of the notes.                                                                                                                                                                                                                                                                                                                     

12



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INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
September 30, 2003



|(10) |  | Subsequent Events                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    
|     |  | On October 22, 2003, the Company entered into a Promissory Note agreement
with Forrest Travis, Chairman of the Companys Board of Directors, for the
amount of $250,000 for the purpose of liquidating the Forbearance Agreement
with Wachovia Bank, National Association dated July 31, 2003. Interest
will accrue at the rate of 6% per annum with quarterly installments of
principal and interest of $23,873 due commencing on January 15, 2004 and
extending through October 15, 2006. The Note is secured by Company
accounts receivable.

ITEM 2.             MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

As provided by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company cautions that statements in this
Quarterly Report on Form 10-QSB that are forward-looking statements represent
managements belief and assumptions based on currently available information.
Forward-looking statements can be identified by the use of words such as
believes, intends, may, should, anticipates, expected, estimated,
projected or comparable terminology, or by discussion of strategies or
trends. Although the Company believes the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurances that
these expectations will prove to be correct. Such statements, by their nature,
involve substantial risks and uncertainties that could significantly impact
expected results, and actual future results could differ materially from those
described in such forward-looking statements. While it is not possible to
identify all factors, the Company continues to face many risks and
uncertainties. Among the factors that could cause actual future results to
differ materially are the risks and uncertainties discussed in this Quarterly
Report on Form 10-QSB and those described from time to time in the Companys
other filings with the SEC and the risk that the underlying assumptions made by
management in this Quarterly Report on Form 10-QSB are not, in fact, correct.
Should one or more of these risks materialize (or the consequences of such a
development worsen), or should the underlying assumptions prove incorrect,
actual results could differ materially from those forecasted or expected. The
Company disclaims any intention or obligation to update or revise any
forward-looking statement whether as a result of new information, future events
or otherwise.

Critical Accounting Policies and Estimates

The discussion and analysis of the Companys financial condition and
results of operations are based on the Companys consolidated financial
statements which have been prepared in accordance with accounting principles
generally accepted in the United States of America. The preparation of these
financial statements requires us to make estimates and judgments that affect
the reported amounts of assets and liabilities, revenues and expenses, and
related disclosures of contingent assets and liabilities. We base these
estimates on historical experience and on various other assumptions that
management believes are reasonable under the circumstances; additionally we
evaluate these results on an on-going basis. Actual results may differ from
these estimates under different assumptions or conditions.

The Company has a significant amount of goodwill and identifiable
intangible assets recorded on its financial statements. The Companys
identifiable intangible assets consist of investment management contracts and
customer relationships. Managements allocation of purchase price to these
identifiable intangible assets requires estimates about the amount and useful
lives of identifiable intangible assets acquired. These estimates require a
significant degree of estimates based on managements assumptions regarding
future cash flows, account retention, expected profit margins, and applicable
discount rates and are subject to uncertainty and may differ significantly from
actual results under different assumptions or conditions.

13



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The Company completed its initial assessment of impairment for goodwill
and identifiable intangible assets during the first quarter of 2003.
Management assessed the recoverability of the identifiable intangible assets
and determined there to be no impairment based on its estimates and analysis of
future cash flows. Management will continue to assess recoverability whenever
events or circumstances indicate they may be impaired and monitor the future
results of the investment management segment. In addition, the Company will
review goodwill and intangible assets for impairment in accordance with
existing accounting pronouncements and has set an annual impairment test date
for goodwill of December 31. Such review will involve the Companys
determination of reporting unit fair values through estimation of projected
cash flows, discount rates, future performance and other variables, which will
require a significant amount of judgment by the Companys management.

Discontinued Operations

During the first quarter of 2003, the Company decided to pursue the
divesture of Ewing, which formerly constituted a separate operating segment,
the investment banking segment, and accordingly, the Company has reported its
operations as discontinued for all periods presented.

On June 16, 2003, the Company sold Ewing pursuant to the terms of a Stock
Purchase Agreement dated May 2, 2003. The purchaser acquired all of the issued
and outstanding capital stock of Ewing for an aggregate purchase price of
$300,000, which amount was paid in cash by purchaser at the closing of the
transaction. The Company used $247,783 of the net proceeds to reduce debt and
$37,500 to reduce deferred compensation. The Company recorded a $58,932 gain
on the sale of discontinued operations.

Revenues from Ewing were $0 and $505,853 for the three months ended
September 30, 2003 and 2002, respectively. The income (loss) from discontinued
operations for Ewing was $0 and ($362,524) for the three months ended September
30, 2003 and 2002, respectively.

Revenues from Ewing were $699,554 and $8,381,652 for the nine months ended
September 30, 2003 and 2002, respectively. The income (loss) from discontinued
operations for Ewing was ($87,940) and $2,032,571 for the nine months ended
September 30, 2003 and 2002, respectively.

Liquidity and Capital Resources

The Companys current assets consist generally of interest in an equity
fund, accounts receivable, and prepaid assets. The Company has financed its
operations with funds provided by operations, proceeds from notes payable,
liquidation of cash surrender value of insurance policies, and proceeds from
the divesture of Ewing (see note 2). The Company has developed and is
implementing a strategically focused plan that includes internal revenue
growth, cost reductions, and operational efficiencies.

The Company believes that the divesture of Ewing will allow management to
focus on leveraging the Companys expertise in investment management services.
By more closely aligning sales, client relationship management, and fund
management, the Company believes that additional revenue sources can be derived
from current relationships. The Company has taken steps, and is continuing to
take additional steps, which will allow the Company to deliver superior service
and performance at a reduced cost. These steps have led to a reduction in
recurring operating costs, as well as a more beneficial debt reduction schedule
for the Company. Management is also looking at creating back-office
efficiencies through the use of technology, work flow processes, and the
consolidation of functions. Management believes that an improved
organizational structure is beneficial to the Company today, and will be
beneficial to the Companys future success.

While management believes that it will be able to support its current
operations and capital needs through its current cash flow, management
continues to explore and identify potential equity sources of capital from
private investors, which would give the Company more flexibility in its
operations and debt

14



---



##### 



reduction initiatives. Management cannot provide any assurances that such
a transaction will take place. If adequate funds are not available, the
Companys refocused strategy would be significantly limited, and such funding
limitation would have a material adverse effect on the Companys business,
results of operations, and financial condition.

For the nine months ended September 30, 2003, the net cash used in
operating activities of $633,025 was primarily attributable to salary and
benefits costs related to nonperforming sales staff and excess administrative
staff primarily incurred during the first six months of 2003, offset by the
receipt of a $420,000 tax refund, and an increase of $157,374 in accounts
payable and accrued expenses. Net cash provided by investing activities of
$599,961 was primarily due to the net proceeds of $247,283 received from the
divestment of Ewing in June 2003 and the prepayment of two subordinated
promissory notes receivable in the amount of $200,000 (face value of $323,919).
Net cash provided by financing activities of $55,896 was attributable to
proceeds of $592,949 from notes payable and $120,000 from life insurance cash
surrender value loans offset by principal payments on notes payable of $522,806
and preferred stock dividends paid of $134,247.

Results of Operations

The Company has invested and plans to continue to focus on the development
of its investment management segment. ICM has several portfolio styles, ranked
by independent sources such as Effron-PSN, CheckFree Investment Services,
Nelson Information and Money Manager Review, in the top percentile of all
investment managers for both performance and risk control. The Company is
investing in human capital through the retention of portfolio management
professionals and investment management sales professionals, and has sales
promotion efforts, through advertising and marketing, aimed at branding and
broadening ICMs investment management market share and presence.

The Company is currently experiencing operational losses for 2003 as a
result of its expenditures on sales and administrative salaries and expenses
primarily incurred during the first six months of 2003. Management has taken
corrective measures to reduce sales and administrative costs, and believes that
its current operational expenses are justified by the investment management
revenue, which management expects to see increasing throughout the remainder of
2003 and in 2004.

Three Months Ended September 30, 2003 Compared to the Three Months Ended
September 30, 2002

Total revenues were $1,046,327 for the three months ended September 30,
2003, compared to $915,654 for the three months ended September 30, 2002,
representing a 14.3% increase.

Investment management fees increased $91,085, or 9.9%, to $1,013,982.
Investment management fees represent revenue earned by ICM for investment
advisory services. The fees earned are generally a function of the overall fee
rate charged to each account and the level of Assets Under Management (AUM).
Quarterly management fees are billed on the first day of each quarter based on
each account value at the market close of the prior quarter. AUM was $532.9
million at June 30, 2003, compared to $452.1 million at June 30, 2002. The
increase in investment management fees for the three months ended September 30,
2003 relates to an increase in AUM of 17.9% as a result of the net addition of
new clients and an increase of 8.6% in the average investment management fee
rate charged per dollar of AUM. At September 30, 2003, AUM was $553.9 million
compared to $458.2 million at September 30, 2002.

Other income increased $39,588 to $32,345. The increase is primarily
attributable to an increase in investment-related record keeping fees of
$19,224 and an increase of $8,815 from an increase in the cash surrender value
of key man insurance policies in the third quarter of 2003.

15



---



##### 



Total expenses were $1,190,445 for the three months ended September 30,
2003, compared to $1,614,900 for the three months ended September 30, 2002,
representing a decrease of $424,455, or 26.3%.

Compensation and benefits decreased $97,139, or 13.7%, to $610,283.
Compensation and benefits represent fixed salaries, performance bonuses,
commissions, temporary staffing costs, severance costs, and other related
employee benefits. The decrease is primarily attributable to a reduction in
the sales and administrative staff in the third quarter of 2003, offset with
severance costs incurred in the third quarter of 2003 and the hiring of
thirteen personnel, five near the end of the second quarter of 2002 and eight
in the third quarter of 2002.

Advertising and marketing expenses decreased $213,816, or 81.5%, to
$48,575. The decrease is primarily attributable to a decrease in travel and
entertainment expenses of $66,000 and a decrease of $100,000 in advertising
expenses associated with managements efforts to reduce operating costs.

Professional and regulatory fees decreased $124,528, or 45.1%, to
$151,306. The decrease is primarily attributable to legal fees and other costs
of $145,838 associated with the FDIC contract incurred in the third quarter of
2002 and a decrease in information technology and investment research services
for the third quarter of 2003 offset by an increase in accounting fees of
$71,500 as a result of a personnel transition in the Chief Financial Officer
position and additional fees associated with the re-filing of 2002 corporate
quarterly and annual reports.

Occupancy and maintenance expenses decreased $24,282, or 20.4%, to
$94,789. The decrease is attributable to the integration of the ICM and ICC
operations in the Jacksonville Beach, Florida office during the second quarter
of 2002.

Interest expense increased $16,946, or 77.3 %, to $38,869. The increase
is primarily attributable to the addition of interest expense associated with
deferred compensation commencing in the third quarter of 2002, a bank note
commencing in the fourth quarter of 2002, and a $92,949 promissory note
commencing in the third quarter of 2003.

The loss on sale of notes receivable increased $139,035, or 100%, to
$139,035. The increase is attributable to the discounting and prepayment of
two subordinated promissory notes receivable in the amounts of $150,000 and
$173,919 owed to Enviroq Corporation, from Sprayroq of Ohio, Inc. The Company
received a total sum of $200,000 in prepayment of the outstanding principal
balance of $323,919 and accrued interest of $15,116. The Company recorded a
loss in the amount of $139,035 on the settlement of the notes.

Other expenses decreased $102,901, or 66.4%, to $52,055. The decrease is
primarily attributable to the reduction of office supplies of $20,161, printing
costs of $12,247, training expenses of $20,338 and life insurance premiums of
$27,943 as a result of the integration of the ICM and ICC operations in the
Jacksonville Beach, Florida office during the second quarter of 2002 and
managements efforts to reduce operating costs during the third quarter of
2003.

Nine Months Ended September 30, 2003 Compared to the Nine Months Ended
September 30, 2002

Total revenues were $2,911,250 for the nine months ended September 30,
2003, compared to $2,610,013 for the nine months ended September 30, 2002
representing an 11.5% increase.

Investment management fees increased $258,922 or 10.1%, to $2,825,580.
The fees earned are generally a function of the overall fee rate charged to
each account and the level of Assets Under Management (AUM). Quarterly
management fees are billed on the first day of each quarter based on each
account value at the market close of the prior quarter. AUM was $469.1 million
at December 31,

16



---



##### 



2002, compared to $458.4 million at December 31, 2001. AUM was $487.3 million
at March 31, 2003 compared to $475.5 million at March 31, 2002. AUM was $532.9
million at June 30, 2003, compared to $452.1 million at June 30, 2002. The
weighted average AUM increased 10.5% from $455.3 to $501.0 for the nine month
period ended September 30, 2002 and 2003, respectively. The increase in
investment management fees for the nine months ended September 30, 2003 relates
to an increase in AUM of 10.1% as a result of the net addition of new clients
and an increase of 8.6% in the average investment management fee rate charged
per dollar of AUM. At September 30, 2003, AUM was $553.9 million compared to
$458.2 million at September 30, 2002.

Other income increased $42,315, or 97.6%, to $85,670. The increase is
primarily attributable to a one-time management account referral fee of $20,706
received in the second quarter of 2002, offset by an increase in
investment-related keeping fees of $57,503 for the nine months ended September
30, 2003.

Total expenses were $4,405,513 for the nine months ended September 30,
2003, compared to $4,794,487 for the nine months ended September 30, 2002,
representing a decrease of $388,974, or 8.1%.

Compensation and benefits decreased $167,499, or 6.2%, to $2,553,986.
Compensation and benefits represent fixed salaries, performance bonuses,
commissions, temporary staffing costs, severance costs, payroll taxes and other
related employee benefits. The decrease is primarily attributable to a one
time deferred compensation accrual of $364,000 in the second quarter of 2002,
offset by an increase in compensation and benefits expense associated with
severance costs incurred in 2003 and hiring of thirteen personnel, five near
the end of the second quarter of 2002 and eight in the third quarter of 2002.

Advertising and marketing expenses decreased $80,996, or 15.3%, to
$447,067. The decrease is primarily attributable to a decrease in travel and
entertainment expenses.

Professional and regulatory fees decreased $45,821, or 9.0%, to $462,703.
The decrease is primarily attributable to legal fees and other costs of
$145,838 associated with the FDIC contract incurred in the third quarter of
2002 offset by an increase in accounting fees of $84,210 as a result of a
personnel transition in the Chief Financial Officer position, additional fees
associated with the re-filing of 2002 corporate quarterly and annual reports
and an increase in information technology and investment research services for
the nine months ended September 30, 2003.

Occupancy and maintenance expenses decreased $55,644, or 16.5%, to $280,
971. The decrease is attributable to the integration of the ICM and ICC
operations in the Jacksonville Beach, Florida office during the second quarter
of 2002.

Interest expense decreased $16,520, or 18.6%, to $72,265. The decrease is
primarily attributable to the decrease of interest on the AJG note resulting
from its conversion into shares of the Companys Class A Cumulative Convertible
Pay-In-Kind Preferred Stock at the end of the first quarter of 2002, offset by
the addition of interest expense associated with deferred compensation
commencing in the third quarter of 2002, a $400,000 bank note commencing in the
fourth quarter of 2002, and a $92,949 promissory note commencing in the third
quarter of 2003.

The loss on sale of notes receivable increased $139,035, or 100%, to
$139,035. The increase is attributable to the discounting and prepayment of
two subordinated promissory notes receivable in the amounts of $150,000 and
$173,919 owed to Enviroq Corporation, from Sprayroq of Ohio, Inc. The Company
received a total sum of $200,000 in prepayment of the outstanding principal
balance of $323,919 and accrued interest of $15,116. The Company recorded a
loss in the amount of $139,035 on the settlement of the notes.

Other expenses decreased $154,116, or 35.5%, to $279,898. The decrease is
primarily attributable to the reduction of office supplies of $40,355, printing
costs of $32,973, postage of $7,143, parking fees of $13,013, life insurance
premiums of $21,063 and donations of $18,620 as a result of the

17



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##### 



integration of the ICM and ICC operations in the Jacksonville Beach, Florida
office during the second quarter of 2002 and managements efforts to reduce
operating costs during the third quarter of 2003.

ITEM 3.             CONTROLS AND PROCEDURES

Based on their evaluation of the Companys disclosure controls and
procedures as of the end of the period covered by this quarter, the President
and Chief Executive Officer and the Chief Financial Officer of the Company have
concluded that such controls and procedures are effective. There were no
significant changes in the Companys internal controls or in other factors that
could significantly affect such controls subsequent to the date of their
evaluation.

PART II  OTHER INFORMATION

ITEM 1.             LEGAL PROCEEDINGS

There are no legal proceedings pending, or to the Companys knowledge,
threatened against the Company or any of its subsidiaries.

ITEM 2.             CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.             DEFAULTS UPON SENIOR SECURITIES

On June 11, 2003, the Company received a notice of default from Wachovia
Bank, National Association with respect to the indebtedness of the Company
represented by that certain Renewal Promissory Note dated March 25, 2003. The
default notice related to the Companys non-payment of three consecutive
$100,000 monthly principal payments due in May, June and July 2003 under the
terms of the Renewal Promissory Note.

On July 31, 2003, the Company entered into a Forbearance Agreement with
Wachovia Bank, National Association as a result of the Companys non-payment of
the $100,000 monthly principal payments due in May, June and July 2003 under
the Renewal Promissory Note dated March 25, 2003. The Forbearance Agreement
required that the Company make an immediate payment of $50,000 principal plus
$4,129 of accrued interest, a $50,000 principal payment by October 15, 2003 and
a forbearance fee of $5,000 no later than November 15, 2003. On August 1,
2003, the Company paid $54,129 in accordance with the terms of the Forbearance
Agreement. On October 23, 2003, the Company repaid Wachovia Bank, National
Association in the amount of $262,095. Payment included $250,000 in principal,
$2,595 in interest, and $9,500 for the banks legal fees associated with the
agreement.

ITEM 4.             SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.            OTHER INFORMATION

On July 21, 2003, the Company entered into a Satisfaction of Subordinated
Indebtedness

18



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##### 



agreement to permit the discounting and prepayment of two subordinated
promissory notes receivable in the amounts of $150,000 and $173,919 owed to
Enviroq Corporation, a wholly owned subsidiary of the Company, from Sprayroq of
Ohio, Inc. The Company received a total sum of $200,000 in prepayment of the
outstanding principal balance of $323,919 and accrued interest of $15,116. The
Company recorded a loss in the amount of $139,035 on the settlement of the
notes.

The description contained herein of the Satisfaction of Subordinated
Indebtedness Agreement is qualified in its entirety by reference to the
Satisfaction of Subordinated Indebtedness Agreement, a copy of which is
attached hereto and incorporated herein by reference as Exhibit 10.2.

ITEM 6.             EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits:

|     |  |                                                                                                                               
|---- |  | ------------------------------------------------------------------------------------------------------------------------------
|10.1 |  | Promissory Note dated as of July 7, 2003 among Intrepid Capital
Corporation and The Robin Shepherd Group.                     
|     |  |                                                                                                                               
|10.2 |  | Promissory Note dated October 22, 2003 among Intrepid Capital Corporation
and Forrest Travis.                                 
|     |  |                                                                                                                               
|10.3 |  | Unconditional Guaranty of Payment and Performance dated as of July 7,
2003 between Mark F. Travis and The Robin Shepard Group.
|     |  |                                                                                                                               
|31.1 |  | Certification of the Companys Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|31.2 |  | Certification of the Companys Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|32.1 |  | Certification of the Companys Chief Executive Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|32.2 |  | Certification of the Companys Chief Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.             

(b) Reports on Form 8-K:

Current Reports on Form 8-K were filed by the Company during the quarter ended
September 30, 2003 as follows:

On July 1, 2003, the Company filed a Current Report on Form 8-K dated June 16,
2003 concerning the sale of stock of Ewing. The Current Report was filed under
Item 5, Other Events, and Item 7, Financial Statements, Pro Forma Financial
Information and Exhibits. No financial statements were filed therewith.

On July 21, 2003, the Company filed a Report on Form 8-K dated July 18, 2003
concerning the restatement of certain of the Companys financial statements.
The Current Report was filed under Item 7, Financial Statements, Pro Forma
Financial Information and Exhibits and Item 9, Information Furnished Under Item
12 (Results of Operations and Financial Condition). No financial statements
were filed therewith.

19



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##### 



SIGNATURES AND CERTIFICATIONS

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

| |  |                              |  |                               |  | 
| |  | ---------------------------- |  | ----------------------------- |  | 
| |  | INTREPID CAPITAL CORPORATION
| |  |                              |  |                               |  | 
| |  | By                           |  | /s/ Mark F. Travis            |  | 
| |  |                              |  |                              
| |  |                              |  | Mark F. Travis, President and |  | 
| |  |                              |  | Chief Executive Officer       |  | 
| |  |                              |  |                               |  | 
| |  | Dated:
November _____ , 2003 |  |                              
| |  |                              |  |                               |  | 
| |  | By                           |  | /s/ Donald C. White           |  | 
| |  |                              |  |                              
| |  |                              |  | Donald C. White, Chief        |  | 
| |  |                              |  | Financial Officer             |  | 
| |  |                              |  |                               |  | 
| |  | Dated:                       |  | November _____ , 2003         |  | 

20



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##### 



EXHIBIT INDEX

|     |  |                                                                                                                               
|---- |  | ------------------------------------------------------------------------------------------------------------------------------
|10.1 |  | Promissory Note dated as of July 7, 2003 among Intrepid Capital
Corporation and The Robin Shepherd Group.                     
|     |  |                                                                                                                               
|10.2 |  | Promissory Note dated October 22, 2003 among Intrepid Capital Corporation
and Forrest Travis.                                 
|     |  |                                                                                                                               
|10.3 |  | Unconditional Guaranty of Payment and Performance dated as of July 7,
2003 between Mark F. Travis and The Robin Shepard Group.
|     |  |                                                                                                                               
|31.1 |  | Certification of the Companys Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|31.2 |  | Certification of the Companys Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|32.1 |  | Certification of the Companys Chief Executive Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.             
|     |  |                                                                                                                               
|32.2 |  | Certification of the Companys Chief Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.             

21