| ****x**** | **QUARTERLY REPORT PURSUANT TO SECTION 13        OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|-----------|----------------------------------------------------------------------------------------------------|
| ****o**** | ********TRANSITION        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT        OF 1934******** |
|-----------|------------------------------------------------------------------------------------------------------------------------|
| **Illinois**                 | **75-2375969**                                    |
|------------------------------|---------------------------------------------------|
| **(State of incorporation)** | **(I.R.S. employer identification          no.)** |

| **Large accelerated filer o**                            |   |   | **Accelerated filer o**         |   |
|----------------------------------------------------------|--------|--------|---------------------------------|--------|
|                                                     |   |   |                            |   |
| **Non-accelerated filer o**                              |   |   | **Smaller reporting company x** |   |
| **(Do not check if a smaller reporting        company)** |   |   |

----

| **PART I**                                                                                 | **FINANCIAL INFORMATION**                                                                                                 | **Page No.** |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|--------------|
|                                                                                       |                                                                                                                      |         |
| **Item 1.**                                                                                | **Unaudited Consolidated Financial      Statements:**                                                                     | ** **   |
| ****                                                                                       | ** **                                                                                                                | ** **   |
| ****                                                                                       | **Consolidated Balance Sheets      at September 30, 2008 (unaudited) and December 31, 2007**                              | **3**        |
| ****                                                                                       | ** **                                                                                                                | ** **   |
| ****                                                                                       | **Unaudited Consolidated      Statements of Operations for Three and Nine Months Ended September 30, 2008      and 2007** | **4**        |
| ****                                                                                       | ** **                                                                                                                | ** **   |
| ****                                                                                       | **Unaudited      Consolidated Statements of Cash Flows for Nine Months Ended September 30,      2008 and 2007**           | **5**        |
| ****                                                                                       | ** **                                                                                                                | ** **   |
| ****                                                                                       | **Notes to Unaudited Consolidated Financial Statements**                                                                  | **7**        |
| ****                                                                                       |                                                                                                                      | ** **   |
| **Item 2.**                                                                                | **Management's Discussion and Analysis of Financial      Condition and Results of Operations**                            | **19**       |
|                                                                                       |                                                                                                                      |         |
| **Item 3.**                                                                                | **Quantitative and Qualitative      Disclosures about Market Risk**                                                       | **27**       |
|                                                                                       |                                                                                                                      |         |
| **Item 4T.**                                                                               | **Controls and Procedures**                                                                                               | **28**       |
| ** **                                                                                 | ** **                                                                                                                |         |
| **PART II**                                                                                | **OTHER INFORMATION**                                                                                                     | ** **   |
|                                                                                       |                                                                                                                      |         |
| **Item 1.**                                                                                | **Legal Proceedings**                                                                                                     | **28**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Item 2.**                                                                                | **Unregistered Sales of Equity Securities and Use of Proceeds**                                                           | **28**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Item 3.**                                                                                | **Defaults in Senior Securities**                                                                                         | **29**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Item 4.**                                                                                | **Submission of Matters to      a Vote of Security Holders**                                                              | **29**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Item 5.**                                                                                | **Other Information**                                                                                                     | **29**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Item 6.**                                                                                | **Exhibits**                                                                                                              | **29**       |
|                                                                                       |                                                                                                                      | ** **   |
| **Signatures**                                                                             | **30**                                                                                                                    |
| **Exhibit 31.1      Certification of Chief Executive Officer**                             | **31**                                                                                                                    |
| **Exhibit 31.2 Certification of Chief Financial      Officer**                             | **32**                                                                                                                    |
| **Exhibit 32.1 Certification of Chief Executive      Officer and Chief Financial Officer** | **33**                                                                                                                    |

----

| **TERRA NOVA FINANCIAL GROUP, INC.          AND SUBSIDIARIES           CONSOLIDATED BALANCE SHEETS**                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                              |   | **September 30,           2008** |  |  |  | December 31,           2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   | **(Unaudited)** |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                               | **$** | **869,159** |   |   | $ | 7,937,880 |   |
| Cash segregated in compliance with federal        regulations                                                                                                                                                                                                                                                                                                           |   | **175,819,261** |   |   |   | 144,225,499 |   |
| Receivables from brokers,        dealers and clearing organizations                                                                                                                                                                                                                                                                                                     |   | **46,094,959** |   |   |   | 24,902,262 |   |
| Receivables from customers and non-customers,        net                                                                                                                                                                                                                                                                                                                |   | **20,736,171** |   |   |   | 47,261,886 |   |
| Property and equipment,        net                                                                                                                                                                                                                                                                                                                                      |   | **1,104,012** |   |   |   | 1,150,312 |   |
| Capitalized software development costs, net                                                                                                                                                                                                                                                                                                                             |   | **2,176,829** |   |   |   | 1,883,375 |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                                                  |   | **4,466,379** |   |   |   | 5,481,660 |   |
| Income tax receivable                                                                                                                                                                                                                                                                                                                                                   |   | **1,225,464** |   |   |   | - |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                |   | **7,501,408** |   |   |   | 7,501,408 |   |
| Deferred income taxes, net                                                                                                                                                                                                                                                                                                                                              |   | **1,962,522** |   |   |   | 1,569,892 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                            |   | **1,350,587** |   |   |   | 1,309,190 |   |
|            Total        assets                                                                                                                                                                                                                                                                                   | **$** | **263,306,751** |   |   | $ | 243,223,364 |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| **LIABILITIES AND SHAREHOLDERS'          EQUITY**                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Line of credit                                                                                                                                                                                                                                                                                                                                                          | **$** | **3,625,821** |   |   | $ | 10,848,000 |   |
| Payables to brokers, dealers and clearing        organizations                                                                                                                                                                                                                                                                                                          |   | **714,225** |   |   |   | 694,148 |   |
| Payables to customers and        non-customers                                                                                                                                                                                                                                                                                                                          |   | **224,305,177** |   |   |   | 194,493,946 |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                   |   | **4,282,198** |   |   |   | 3,407,832 |   |
| Accrued preferred stock        dividends                                                                                                                                                                                                                                                                                                                                |   | **-** |   |   |   | 29,950 |   |
| Income tax liability                                                                                                                                                                                                                                                                                                                                                    |   | **-** |   |   |   | 592,918 |   |
|            Total        liabilities                                                                                                                                                                                                                                                                              |   | **232,927,421** |   |   |   | 210,066,794 |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Shareholders' equity                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Preferred stock - $10 par value; 5,000,000        shares authorized                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |
|      Preferred        stock - cumulative; $10 par value; 38,792 shares authorized;                none issued and outstanding        at September 30, 2008 and 14,350 shares                issued and outstanding at December        31, 2007                           |   | **-** |   |   |   | 143,500 |   |
|      Preferred stock        - convertible cumulative; $10 par value; 835,000 shares authorized;                none issued and outstanding        at September 30, 2008 and 49,480 shares                issued and outstanding at December        31, 2007              |   | **-** |   |   |   | 494,800 |   |
|      Common        stock; $0.01 par value; 150,000,000 shares authorized; 25,483,909 shares                       issued and 25,482,942 outstanding        at September 30, 2008 and 26,531,557 shares                issued and outstanding at December        31, 2007 |   | **254,839** |   |   |   | 265,316 |   |
| Treasury stock, at cost; 967 shares at September        30, 2008 and no shares at December 31, 2007                                                                                                                                                                                                                                                                     |   | **(1,148** | **)** |   |   | - |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                              |   | **52,033,877** |   |   |   | 53,339,299 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                     |   | **(21,908,238** | **)** |   |   | (21,086,345 | ) |
|            Total        shareholders' equity                                                                                                                                                                                                                                                                     |   | **30,379,330** |   |   |   | 33,156,570 |   |
|            Total        liabilities and shareholders' equity                                                                                                                                                                                                                                                     | **$** | **263,306,751** |   |   | $ | 243,223,364 |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| See accompanying notes to unaudited          consolidated financial statements.                                                                                                                                                                                                                                                                                         |

----

| **TERRA NOVA FINANCIAL GROUP, INC.          AND SUBSIDIARIES           UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS** |
|--------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   | **Three Months Ended September 30,** | **** | **** | **** | **Nine Months Ended September 30,** |   |
|                                                                                                                     |   | **2008** |  |  |  | 2007 |  |  |  | **2008** |  |  |  | 2007 |   |
| **REVENUES**                                                                                                             |   |   |   |   |   | (as restated) |   |   |   |   |   |   |   | (as restated) |   |
| Commissions and fees                                                                                                     | **$** | **8,086,868** |   |   | $ | 8,670,564 |   |   | **$** | **23,326,740** |   |   | $ | 25,719,907 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Interest income                                                                                                          |   | **1,376,671** |   |   |   | 3,589,902 |   |   |   | **4,848,101** |   |   |   | 11,028,185 |   |
| Interest expense on brokerage accounts                                                                                   |   | **187,260** |   |   |   | 1,409,944 |   |   |   | **1,009,689** |   |   |   | 5,082,670 |   |
|            Net        interest income                             |   | **1,189,411** |   |   |   | 2,179,958 |   |   |   | **3,838,412** |   |   |   | 5,945,515 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Software fees, net                                                                                                       |   | **210,821** |   |   |   | 188,387 |   |   |   | **563,157** |   |   |   | 436,172 |   |
| Other income                                                                                                             |   | **223,447** |   |   |   | 420,961 |   |   |   | **471,678** |   |   |   | 850,105 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
|            Net        revenues                                    |   | **9,710,547** |   |   |   | 11,459,870 |   |   |   | **28,199,987** |   |   |   | 32,951,699 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **OPERATING EXPENSES**                                                                                                   |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Commissions and clearing                                                                                                 |   | **2,397,668** |   |   |   | 4,062,610 |   |   |   | **7,779,949** |   |   |   | 10,406,850 |   |
| Employee compensation                                                                                                    |   | **2,356,509** |   |   |   | 2,785,394 |   |   |   | **7,537,791** |   |   |   | 7,707,664 |   |
| Software and market data                                                                                                 |   | **1,331,637** |   |   |   | 1,378,683 |   |   |   | **4,588,993** |   |   |   | 4,350,386 |   |
| Advertising and promotional                                                                                              |   | **214,501** |   |   |   | 95,341 |   |   |   | **468,876** |   |   |   | 585,992 |   |
| Professional fees                                                                                                        |   | **727,698** |   |   |   | 547,415 |   |   |   | **2,026,333** |   |   |   | 1,529,593 |   |
| Communications and information technology                                                                                |   | **189,618** |   |   |   | 160,631 |   |   |   | **637,712** |   |   |   | 586,568 |   |
| Depreciation        and amortization                                                                                     |   | **595,923** |   |   |   | 320,202 |   |   |   | **1,721,854** |   |   |   | 1,148,403 |   |
| Bad debt expense                                                                                                         |   | **3,553,296** |   |   |   | - |   |   |   | **3,470,890** |   |   |   | - |   |
| Other general and administrative expenses                                                                                |   | **522,761** |   |   |   | 384,413 |   |   |   | **1,067,178** |   |   |   | 2,344,622 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
|            Total        operating expenses                        |   | **11,889,611** |   |   |   | 9,734,689 |   |   |   | **29,299,576** |   |   |   | 28,660,078 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Operating income (loss)                                                                                                  |   | **(2,179,064** | **)** |   |   | 1,725,181 |   |   |   | **(1,099,589** | **)** |   |   | 4,291,621 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Interest expense                                                                                                         |   | **-** |   |   |   | (12,921 | ) |   |   | **-** |   |   |   | (55,434 | ) |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Income (loss) before income taxes                                                                                        |   | **(2,179,064** | **)** |   |   | 1,712,260 |   |   |   | **(1,099,589** | **)** |   |   | 4,236,187 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Income tax benefit (provision)                                                                                           |   | **785,814** |   |   |   | (428,647 | ) |   |   | **277,696** |   |   |   | (1,384,795 | ) |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Net income (loss)                                                                                                        |   | **(1,393,250** | **)** |   |   | 1,283,613 |   |   |   | **(821,893** | **)** |   |   | 2,851,392 |   |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Dividends on preferred stock                                                                                             |   | **-** |   |   |   | (98,237 | ) |   |   | **(20,113** | **)** |   |   | (126,832 | ) |
|                                                                                                                     |   | **** |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Net income (loss) attributable to common        shareholders                                                             | **$** | **(1,393,250** | **)** |   | $ | 1,185,376 |   |   | **$** | **(842,006** | **)** |   | $ | 2,724,560 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                                                                      |   | **** |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                    | **$** | **(0.05** | **)** |   | $ | 0.04 |   |   | **$** | **(0.03** | **)** |   | $ | 0.10 |   |
|                                                                                                                     |   | ** ** |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                  | **$** | **(0.05** | **)** |   | $ | 0.04 |   |   | **$** | **(0.03** | **)** |   | $ | 0.10 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                              |   | **** |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                    |   | **25,520,694** |   |   |   | 27,200,113 |   |   |   | **25,987,771** |   |   |   | 27,191,127 |   |
|                                                                                                                     |   | **  ** |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                  |   | **25,520,694** |   |   |   | 27,655,917 |   |   |   | **25,987,771** |   |   |   | 27,916,322 |   |
|                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited          consolidated financial statements.                                          |

----

| **TERRA NOVA FINANCIAL GROUP, INC.            AND SUBSIDIARIES             UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS** |
|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |   |   |   |   |   |   |   |
|                                                                                                                         |   | **Nine Months Ended September 30,** |   |
|                                                                                                                              |   | **2008** |   |   |   | 2007 |   |
| **OPERATING ACTIVITIES**                                                                                                     |   |   |   |   |   | (as restated) |   |
| Net income (loss)                                                                                                            | **$** | **(821,893** | **)** |   | $ | 2,851,392 |   |
| Adjustments to reconcile net income (loss)          to net cash provided by operating activities:                            |   | **** |   |   |   |  |   |
| Share-based compensation                                                                                                     |   | **107,094** |   |   |   | 56,716 |   |
| Bad debt expense                                                                                                             |   | **3,470,890** |   |   |   | - |   |
| Depreciation and amortization                                                                                                |   | **1,721,854** |   |   |   | 1,148,402 |   |
| Amortization of debt discount                                                                                                |   | **-** |   |   |   | 7,952 |   |
| Gain on sale of seat          on exchange                                                                                    |   | **(300,142** | **)** |   |   | - |   |
| Gain on settlement of liabilities                                                                                            |   | **-** |   |   |   | (88,702 | ) |
| Deferred income taxes                                                                                                        |   | **(392,630** | **)** |   |   | - |   |
| Reversal of legal reserve                                                                                                    |   | **(140,000** | **)** |   |   | - |   |
| Gain on extinguishment          of liabilities                                                                               |   | **(540,000** | **)** |   |   | - |   |
| Loss on write-off of assets                                                                                                  |   | **32,127** |   |   |   | - |   |
| Change in assets and          liabilities:                                                                                   |   | **** |   |   |   |  |   |
| (Increase) decrease in assets:                                                                                               |   | **** |   |   |   |  |   |
| Cash segregated in compliance          with federal regulations                                                              |   | **(31,593,762** | **)** |   |   | 2,830,985 |   |
| Receivables from brokers, dealers and clearing          organizations                                                        |   | **(21,192,697** | **)** |   |   | 32,189,687 |   |
| Receivables from customers          and non-customers                                                                        |   | **25,888,918** |   |   |   | 14,429,638 |   |
| Income tax receivable                                                                                                        |   | **(1,225,464** | **)** |   |   | - |   |
| Other assets                                                                                                                 |   | **(29,763** | **)** |   |   | (330,584 | ) |
| Increase (decrease) in liabilities:                                                                                          |   | **** |   |   |   |  |   |
| Payables to brokers,          dealers and clearing organizations                                                             |   | **20,077** |   |   |   | 303,973 |   |
| Payables to customers and non-customers                                                                                      |   | **29,811,231** |   |   |   | (32,195,633 | ) |
| Accounts payable and          accrued expenses                                                                               |   | **(1,247,711** | **)** |   |   | 765,527 |   |
| Income tax liability                                                                                                         |   | **(592,918** | **)** |   |   | 1,311,986 |   |
|                                                                                                                         |   | **** |   |   |   |  |   |
| Net cash provided by operating activities                                                                                    |   | **2,975,211** |   |   |   | 23,281,339 |   |
|                                                                                                                         |   | **** |   |   |   |  |   |
| **INVESTING ACTIVITIES**                                                                                                     |   | **** |   |   |   |  |   |
| Proceeds from sale of          seat on exchange                                                                              |   | **309,642** |   |   |   | - |   |
| Purchase of property and equipment                                                                                           |   | **(263,460** | **)** |   |   | (621,353 | ) |
| Capitalization of software          development costs                                                                        |   | **(722,394** | **)** |   |   | (312,554 | ) |
|                                                                                                                         |   | **** |   |   |   |  |   |
| Net cash used in investing          activities                                                                               |   | **(676,212** | **)** |   |   | (933,907 | ) |
|                                                                                                                         |   | **** |   |   |   |  |   |
| **FINANCING ACTIVITIES**                                                                                                     |   | **** |   |   |   |  |   |
| Proceeds from exercise of stock options          and warrants                                                                |   | **-** |   |   |   | 14,250 |   |
| Repurchase and retirement          of common stock                                                                           |   | **(1,314,378** | **)** |   |   | - |   |
| Preferred dividends paid                                                                                                     |   | **(50,063** | **)** |   |   | (300,000 | ) |
| Redemption of preferred          stock                                                                                       |   | **(781,100** | **)** |   |   | - |   |
| Net payments on line of credit                                                                                               |   | **(7,222,179** | **)** |   |   | (17,775,000 | ) |
|                                                                                                                         |   | **** |   |   |   |  |   |
| Net cash used in financing activities                                                                                        |   | **(9,367,720** | **)** |   |   | (18,060,750 | ) |
|                                                                                                                         |   | **** |   |   |   |  |   |
| Net (decrease) increase in cash and cash          equivalents                                                                |   | **(7,068,721** | **)** |   |   | 4,286,682 |   |
| Cash and cash equivalents          at beginning of period                                                                    |   | **7,937,880** |   |   |   | 5,733,813 |   |
| Cash and cash equivalents at end of period                                                                                   | **$** | **869,159** |   |   | $ | 10,020,495 |   |
|                                                                                                                         |   |   |   |   |   |   |   |
| Supplemental Disclosure          of Cash Flow Information:                                                                   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                                                       | **$** | **1,009,689** |   |   | $ | 5,082,670 |   |
|                                                                                                                         |   |   |   |   |   |   |   |
| Cash paid for income          taxes                                                                                          | **$** | **1,933,316** |   |   | $ | 72,807 |   |
|                                                                                                                         |   |   |   |   |   |   |   |
| See accompanying notes to unaudited            consolidated financial statements.                                            |

----

| **TERRA NOVA FINANCIAL GROUP, INC.          AND SUBSIDIARIES           UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued** |
|-------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                |   | **Nine Months Ended September 30,** |   |
|                                                                                                                                     |   | **2008** |   |   |   | 2007 |   |
|                                                                                                                                |   |   |   |   |   | (as restated) |   |
| Supplemental Disclosure of Non-Cash Investing        and Financing Activities:                                                      |   |   |   |   |   |   |   |
| Preferred stock dividends        accrued                                                                                            | **$** | **-** |   |   | $ | 29,531 |   |
| Fair value of warrants with debt financing        recorded as a debt discount                                                       |   | **-** |   |   |   | 141,714 |   |
| Common stock issued as        payment for accrued interest and dividends                                                            |   | **-** |   |   |   | 3,682 |   |
| Intangibles acquired via common stock                                                                                               |   | **-** |   |   |   | 141,714 |   |
| Common stock issued for        conversion of preferred stock                                                                        | **$** | **-** |   |   | $ | 10,000 |   |
|                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |
| See accompanying notes to unaudited          consolidated financial statements.                                                     |

----

| • | Securities and Exchange Commission ("SEC")      as a broker-dealer         |
|--------|----------------------------------------------------------------------------|
| • | Financial Industry Regulatory Authority ("FINRA")      as a broker-dealer  |
| • | Securities Investor Protection Corporation                                 |
| • | National Futures Association ("NFA") as a futures      commission merchant |
| • | The Depository Trust Company                                               |
| • | National Securities Clearing Corporation                                   |
| • | The Options Clearing Corporation                                           |
| • | Chicago Stock Exchange                                                     |
| • | Boston Options Exchange                                                    |
| • | International Securities Exchange                                          |
| • | National Stock Exchange                                                    |
| • | NYSE Arca Options                                                          |
| • | NYSE Arca Equities                                                         |
| • | NYSE Alternext US                                                          |
| • | CBOE Stock Exchange                                                        |
| • | NASDAQ OMX Group Inc.                                                      |

| • | Market Wise Stock Trading School, LLC ("MW      School"), a financial markets education provider |
|--------|--------------------------------------------------------------------------------------------------|
| • | Market Wise Securities, LLC ("MW Securities"),      FINRA broker-dealer                          |
| • | RushTrade Securities, Inc. ("RushTrade"), FINRA      broker-dealer                               |

----

----

|   |                                                                                       |                                     |
|--------|--------------------------------------------------------------------------------------------|------------------------------------------|
|   |                                                                                       | **As of September 30, 2007**             |   |
|   | **Consolidated Balance Sheet      Data:**                                                  |                                     | As previously        reported |   |   |   | Adjustments |   |   |   | As restated |   |   |
|   | Total assets                                                                               | $                                        | 249,671,721 |   |   | $ | - |   |   | $ | 249,671,721 |   |   |
|   | Total liabilities                                                                          |                                     | 216,269,866 |   |   |   | - |   |   |   | 216,269,866 |   |   |
|   | Additional paid-in capital                                                                 |                                     | 52,484,268 |   |   |   | (477,646 | ) |   |   | 52,006,622 |   |   |
|   | Accumulated deficit                                                                        |                                     | (19,989,882 | ) |   |   | 477,646 |   |   |   | (19,512,236 | ) |   |
|   | Total shareholders' equity                                                                 |                                     | 33,401,855 |   |   |   | - |   |   |   | 33,401,855 |   |   |
|   | Total liabilities and shareholders'      equity                                            | $                                        | 249,671,721 |   |   | $ | - |   |   | $ | 249,671,721 |   |   |
|   |                                                                                       |                                     |
|   |                                                                                       | **Nine months ended September 30, 2007** |   |
|   | **Consolidated Statement      of Operations Data:**                                        |                                     | As previously        reported |   |   |   | Adjustments |   |   |   | As restated |   |   |
|   | Net revenues (1)                                                                           | $                                        | 32,951,699 |   |   | $ | - |   |   | $ | 32,951,699 |   |   |
|   | Employee compensation                                                                      |                                     | 8,185,310 |   |   |   | (477,646 | ) |   |   | 7,707,664 |   |   |
|   | Total operating expenses      (1)                                                          |                                     | 29,137,724 |   |   |   | (477,646 | ) |   |   | 28,660,078 |   |   |
|   | Operating income                                                                           |                                     | 3,813,975 |   |   |   | 477,646 |   |   |   | 4,291,621 |   |   |
|   | Net income                                                                                 |                                     | 2,373,746 |   |   |   | 477,646 |   |   |   | 2,851,392 |   |   |
|   |                                                                                            |                                     |   |   |   |   |  |   |   |   |  |   |   |
|   | Net income attributable to      common shareholders                                        | $                                        | 2,246,914 |   |   | $ | 477,646 |   |   | $ | 2,724,560 |   |   |
|   | Net income per common share: Basic                                                         | $                                        | 0.08 |   |   | $ | 0.02 |   |   | $ | 0.10 |   |   |
|   | Net income per common share:      Diluted                                                  | $                                        | 0.08 |   |   | $ | 0.02 |   |   | $ | 0.10 |   |   |
|   | (1) Reflects reclass of interest      expense on brokerage accounts to net interest income |                                     |   |
|   |                                                                                       |                                     |
|   |                                                                                            | **Nine months ended September 30, 2007** |   |
|   | **Consolidated Statement      of Cash Flows Data:**                                        |                                     | As previously        reported |   |   |   | Adjustments |   |   |   | As restated |   |   |
|   | Net income                                                                                 | $                                        | 2,373,746 |   |   | $ | 477,646 |   |   | $ | 2,851,392 |   |   |
|   | Share-based compensation                                                                   |                                     | 534,362 |   |   |   | (477,646 | ) |   |   | 56,716 |   |   |
|   | Net cash provided by operating      activities                                             | $                                        | 23,281,339 |   |   | $ | - |   |   | $ | 23,281,339 |   |   |
|   |                                                                                       |                                     |

----

----

----

|                                          |
|-----------------------------------------------|
|                                          | For Three Months Ended September 30, |   | For Nine Months Ended September 30, |
|                                               | 2008 |  | 2007 |  | 2008 |   | 2007 |
| Weighted average shares outstanding - Basic   | 25,520,694 |   | 27,200,113 |   | 25,987,771 |   | 27,191,127 |
| Dilutive warrants                             | - |   | 235,804 |   | - |   | 505,195 |
| Dilutive convertible bonds                    | - |   | 220,000 |   | - |   | 220,000 |
| Weighted average shares outstanding - Diluted | 25,520,694 |   | 27,655,917 |   | 25,987,771 |   | 27,916,322 |
|                                          |

----

|   |              |   |
|--------|-------------------|--------|
|   | Preferred Stock   |        | December 31, 2007 |  | Issued |  | Redeemed |  | September 30, 2008 |   |
|   | 9% Cumulative     |   | 2,000 |   | - |   | (2,000) |   | - |   |
|   | Series A          |   | 12,350 |   | - |   | (12,350) |   | - |   |
|   | Series B          |   | 9,520 |   | - |   | (9,520) |   | - |   |
|   | Series C          |   | 37,960 |   | - |   | (37,960) |   | - |   |
|   | Series E          |   | - |   | - |   | -   |   | - |   |
|   | Series      2002A |   | 2,000 |   | - |   | (2,000) |   | - |   |
|   | Total             |   | 63,830 |   | - |   | (63,830) |   | - |   |
|   |              |   |

----

|                                                                                                             | **Three Months Ended September 30,** |           | **Nine Months Ended September 30,** |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------|----------------|-------------------------------------|
|                                                                                                                  |                                 | **2008**       |                                |   |   | 2007 |   |   |   | **2008** |   |   |   | 2007 |   |
| **Revenues:**                                                                                                    |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| **Brokerage Services**                                                                                           |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues, excluding interest                                                                                     | **$**                                | **8,306,833**  |                                |   | $ | 9,085,706 |   |   | **$** | **23,780,574** |   |   | $ | 26,554,260 |   |
| Interest revenue                                                                                                 |                                 | **1,376,671**  |                                |   |   | 3,589,902 |   |   |   | **4,848,101** |   |   |   | 11,028,185 |   |
| Interest expense                                                                                                 |                                 | **(187,260**   | **)**                               |   |   | (1,409,944 | ) |   |   | **(1,009,689** | **)** |   |   | (5,082,670 | ) |
|                                                                                                                  |                                 | **9,496,244**  |                                |   |   | 11,265,664 |   |   |   | **27,618,986** |   |   |   | 32,499,775 |   |
|                                                                                                             |                                 |           |                                |   |   |   |   |   |   |  |   |   |   |   |   |
| **Software Services**                                                                                            |                                 |           |                                |   |   |   |   |   |   |  |   |   |   |   |   |
| Revenues                                                                                                         |                                 | **821,213**    |                                |   |   | 188,387 |   |   |   | **2,124,879** |   |   |   | 438,558 |   |
|                                                                                                             |                                 |                |                                |   |   |  |   |   |   |  |   |   |   |  |   |
| Elimination of intercompany charges from                the Software segment to Brokerage segment |                                 | **(610,392**   | **)**                               |   |   | - |   |   |   | **(1,561,722** | **)** |   |   | (2,386 | ) |
|                                                                                                             |                                 | **210,821**    |                                |   |   | 188,387 |   |   |   | **563,157** |   |   |   | 436,172 |   |
| **Corporate and Unallocated**                                                                                    |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                         |                                 | **3,482**      |                                |   |   | 5,819 |   |   |   | **17,844** |   |   |   | 15,752 |   |
|       Net      revenues                                                            | **$**                                | **9,710,547**  |                                |   | $ | 11,459,870 |   |   | **$** | **28,199,987** |   |   | $ | 32,951,699 |   |
|                                                                                                             |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation and amortization:**                                                                               |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Brokerage Services                                                                                               |                                 | **385,542**    |                                |   |   | 244,967 |   |   |   | **1,156,261** |   |   |   | 736,319 |   |
| Software Services                                                                                                |                                 | **111,817**    |                                |   |   | 75,235 |   |   |   | **269,669** |   |   |   | 218,554 |   |
| Corporate and Unallocated                                                                                        |                                 | **98,564**     |                                |   |   | - |   |   |   | **295,924** |   |   |   | 193,530 |   |
|                                                                                                                  | **$**                                | **595,923**    |                                |   | $ | 320,202 |   |   | **$** | **1,721,854** |   |   | $ | 1,148,403 |   |
|                                                                                                             |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income (loss) before income taxes:**                                                                           |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Brokerage Services                                                                                               |                                 | **(1,704,086** | **)**                               |   |   | 2,269,706 |   |   |   | **164,503** |   |   |   | 6,100,077 |   |
| Software Services                                                                                                |                                 | **268,571**    |                                |   |   | (306,632 | ) |   |   | **365,925** |   |   |   | (1,062,242 | ) |
| Corporate and Unallocated                                                                                        |                                 | **(743,549**   | **)**                               |   |   | (250,814 | ) |   |   | **(1,630,017** | **)** |   |   | (801,648 | ) |
|                                                                                                                  | **$**                                | **(2,179,064** | **)**                               |   | $ | 1,712,260 |   |   | **$** | **(1,099,589** | **)** |   | $ | 4,236,187 |   |
|                                                                                                             |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |                                 |           |                                |   |   |   |   |   | **September 30,        2008** |   | December 31,         2007 |
| **Total assets:**                                                                                                |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Brokerage Services                                                                                               |                                 |           |                                |   |   |   |   |   | **$** | **257,924,324** |   |   | $ | 240,126,286 |   |
| Software Services                                                                                                |                                 |           |                                |   |   |   |   |   |   | **790,046** |   |   |   | 346,657 |   |
| Corporate and Unallocated                                                                                        |                                 |           |                                |   |   |   |   |   |   | **4,592,381** |   |   |   | 2,750,421 |   |
|       Total      assets                                                            |                                 |           |                                |   |   |   |   |   | **$** | **263,306,751** |   |   | $ | 243,223,364 |   |
|                                                                                                             |                                 |           |                                |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| • | The 1997 Stock Option Plan;      |
|--------|----------------------------------|
| • | The Incentive Stock Option Plan; |
| • | The 1999 Stock Bonus Plan;       |
| • | The 2000 Stock Option Plan; and  |
| • | The 2002 Stock Option Plan.      |

|   |                                            |   |
|--------|-------------------------------------------------|--------|
|   | Employee Stock Option and         Warrant Plans |        | Authorized |  | Outstanding |  | Available |   |
|   | 2005 Long-Term Incentive      Plan              |   | 3,250,628 |   | 593,024 |   | 2,657,604 |   |
|   | 2006 Warrant Incentive Plan                     |   | 3,500,000 |   | 1,203,000 |   | 2,297,000 |   |
|   | Total                                           |   | 6,750,628 |   | 1,796,024 |   | 4,954,604 |   |
|   |                                            |   |

----

|   |                                      |   |
|--------|-------------------------------------------|--------|
|   | Employee      Stock Options               |   | Employee        Stock Options        Outstanding |   |   |   | Weighted        Average        Exercise Price |   | Weighted        Average        Remaining        Contract Term        (in years) |   |   | Aggregate        Intrinsic Value |   |
|   | Balance at December 31, 2007              |   | 785,574 |   |   | $ | 1.74 |   | 4.4 |   | $ | - |   |
|   | Granted                                   |   | - |   |   |   | - |   | - |   |   | - |   |
|   | Exercised                                 |   | - |   |   |   | - |   | - |   |   | - |   |
|   | Cancelled                                 |   | (192,550 | ) |   |   | 1.85 |   | 0.4 |   |   | - |   |
|   | Balance at September 30,      2008        |   | 593,024 |   |   | $ | 1.71 |   | 3.9 |   | $ | - |   |
|   | Options exercisable at September 30, 2008 |   | 154,875 |   |   | $ | 1.96 |   | 3.6 |   | $ | - |   |
|   |                                      |   |

|   |                                            |   |
|--------|-------------------------------------------------|--------|
|   | Employee      Warrants                          |   | Employee        Warrants        Outstanding |   |   |   | Weighted        Average        Exercise Price |   | Weighted        Average        Remaining        Contract Term        (in years) |   |   | Aggregate        Intrinsic Value |   |
|   | Balance at December 31,      2007               |   | 3,027,500 |   |   | $ | 2.50 |   | 3.6 |   | $ | - |   |
|   | Granted                                         |   | - |   |   |   | - |   | - |   |   | - |   |
|   | Exercised                                       |   | - |   |   |   | - |   | - |   |   | - |   |
|   | Cancelled                                       |   | - |   |   |   | - |   | - |   |   | - |   |
|   | Transferred      to non-employees               |   | (1,824,500 | ) |   |   | - |   | - |   |   | - |   |
|   | Balance at September 30, 2008                   |   | 1,203,000 |   |   | $ | 2.50 |   | 2.8 |   | $ | - |   |
|   | Warrants exercisable at September 30,      2008 |   | 601,500 |   |   | $ | 2.50 |   | 2.8 |   | $ | - |   |
|   |                                            |   |

----

|                        |
|-----------------------------|
|                             |   |   |   | Net capital requirement |   | Excess net capital |
|                             |   | Net Capital |   |   | FINRA |   |   | CFTC |   |   | FINRA |   |   | CFTC |
| Terra Nova Financial, LLC   | $ | 9,494,467 |   | $ | 1,527,799 |   | $ | 500,000 |   | $ | 7,966,668 |   | $ | 8,994,467 |
| Market Wise Securities, LLC |   | 43,703 |   |   | 5,000 |   |   | - |   |   | 38,703 |   |   | - |
| RushTrade Securities, Inc.  | $ | 47,663 |   | $ | 5,000 |   | $ | - |   | $ | 42,663 |   | $ | - |
|                        |

|                                    |
|-----------------------------------------|
|                                    |   |   |   | As of September 30, 2008 |   | As of December 31, 2007 |
|                                    |   | Estimated         Useful Life in         Years |  | Property and        equipment |  | Capitalized        software        development        costs  |  | Property and        equipment |  | Capitalized         software         development         costs |
| Computer and software                   |   | 3-5 |   | $ | 1,423,661 |   |   | $ | 2,765,062 |   |   | $ | 2,545,530 |   |   | $ | 2,692,847 |   |
| Furniture, fixtures and equipment       |   | 3-7 |   |   | 301,358 |   |   |   | - |   |   |   | 982,530 |   |   |   | - |   |
| Leasehold improvements                  |   | 5-10 |   |   | 321,688 |   |   |   | - |   |   |   | 360,129 |   |   |   | - |   |
|                                    |   |   |   |   | 2,046,707 |   |   |   | 2,765,062 |   |   |   | 3,888,189 |   |   |   | 2,692,847 |   |
|                                    |   |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Accumulated depreciation & amortization |   |   | (942,695 | ) |   |   | (588,233 | ) |   |   | (2,737,877 | ) |   |   | (809,472 | ) |
| Net balance                             |   |   |   | $ | 1,104,012 |   |   | $ | 2,176,829 |   |   | $ | 1,150,312 |   |   | $ | 1,883,375 |   |
|                                    |

----

|                                     |
|------------------------------------------|
|                                     | As of September 30, 2008 |   | As of December 31, 2007 |
|                                          |   | Receivables |   |   | Payables |   |   | Receivables |   |   | Payables |
| Securities borrowed/loaned               | $ | 6,512,865 |   | $ | - |   | $ | 18,487,925 |   | $ | - |
| Clearing deposits & receivables/payables |   | 39,582,094 |   |   | 714,225 |   |   | 6,414,337 |   |   | 694,148 |
|                                     |   |  |   |   |  |   |   |  |   |   |  |
| Total                                    | $ | 46,094,959 |   | $ | 714,225 |   | $ | 24,902,262 |   | $ | 694,148 |
|                                     |

----

| • | Implement new client strategies involving portfolio      margining services, sponsorship relationships, complex options, prime-brokerage      capital introduction programs, and in-bound international client trading      activity                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Strengthen market presence through a polished      value proposition, updated brand identity, new website, and direct marketing      campaigns                                                                                                                                                                                                                            |
| • | Build a strong pipeline of leads and new accounts      through direct mail, web-based marketing, trade shows and other cost-effective      marketing and advertising programs targeted at highly active traders                                                                                                                                                           |
| • | Attract new clients and users to the newly      released Tradient platform and increase conversions from existing third      party trading platform users to Tradient                                                                                                                                                                                                     |
| • | Optimize the sales organization through training,      development, marketing materials, incentive compensation structures, referral      networks, and sales pipeline management processes                                                                                                                                                                               |
| • | Enhance the Tradient software offering through      new releases that incorporate more rigorous quality control process, improved      speed and performance, and new functionality including multi-broker management,      new liquidity destinations including options and enhanced client access      to algorithmic trading, black-box and non-click trading services |
| • | Continue to refine clearing processes to increase      the ability to operate as a trading platform neutral clearing agent and      improved efficiencies                                                                                                                                                                                                                 |
| • | Cost optimization of order-flow routing to      reduce execution costs                                                                                                                                                                                                                                                                                                    |

----

----

|                                       |                                 |           |                                |   |   | (Unaudited)   |   |   |   |           |   |
|---------------------------------------|--------------------------------------|----------------|-------------------------------------|--------|--------|---------------|--------|--------|--------|----------------|--------|
|                                  | For Three Months Ended September 30, |           | For Nine Months Ended September 30, |
|                                       |                                 | **2008**       |                                |   |   | 2007          |   |   |   | **2008**       |   |   |   | 2007 |   |
|                                       |                                 |           |                                |   |   | (as restated) |   |   |   |           |   |   |   | (as restated) |   |
| **Net revenues**                      | **$**                                | **9,710,547**  |                                |   | $      | 11,459,870    |   |   | **$**  | **28,199,987** |   |   | $ | 32,951,699 |   |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |           |   |   |   |  |   |
| **Total operating expenses**          |                                 | **11,889,611** |                                |   |   | 9,734,689     |   |   |   | **29,299,576** |   |   |   | 28,660,078 |   |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |                |   |   |   |  |   |
| **Operating income (loss)**           |                                 | **(2,179,064** | **)**                               |   |   | 1,725,181     |   |   |   | **(1,099,589** | **)**  |   |   | 4,291,621 |   |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |                |   |   |   |  |   |
| **Interest expense**                  |                                 | **-**          |                                |   |   | (12,921       | )      |   |   | **-**          |   |   |   | (55,434 | ) |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |                |   |   |   |  |   |
| **Income (loss) before income taxes** |                                 | **(2,179,064** | **)**                               |   |   | 1,712,260     |   |   |   | **(1,099,589** | **)**  |   |   | 4,236,187 |   |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |                |   |   |   |  |   |
| **Income tax benefit (provision)**    |                                 | **785,814**    |                                |   |   | (428,647      | )      |   |   | **277,696**    |   |   |   | (1,384,795 | ) |
| ****                                  |                                 |                |                                |   |   |               |   |   |   |                |   |   |   |  |   |
| **Net income (loss)**                 | **$**                                | **(1,393,250** | **)**                               |   | $      | 1,283,613     |   |   | **$**  | **(821,893**   | **)**  |   | $ | 2,851,392 |   |

----

| • | Gross profit on trading activities improved      1.1% to 57% from lower trading execution costs and higher net interest margin      for the nine months ended September 2008 from the same period in 2007.                                                                                                                                                                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Decrease of 29% in number of trades executed      on higher cost third party software trading platforms in the third quarter      ended September 30, 2008 compared to the same period in 2007. This resulted      in an increase in the number of trades executed on the lower cost Tradient      platform by 307% from the third quarter of 2007 to third quarter of 2008      which reduced overall transaction execution costs.                                       |
| • | Increased the number of Tradient platform users      105% to nearly 2,700 from the third quarter of 2007 to third quarter of      2008, which reduced software platform cost to the Company and customers.                                                                                                                                                                                                                                                                |
| • | Posted average revenue per employee of approximately      $116,000 based on eighty-four full-time employees for three months ending      September 30, 2008 compared to $118,000 based on ninety-seven full-time      employees for three months ended September 30, 2007. Revenue per employee      was down from the third quarter of 2008 compared to third quarter 2007 as      a result of lower overall revenue, average commission rates, and interest      rates. |
| • | Net interest income was down $2.1 million for      the nine months ended September 30, 2008, but net interest margin (spread)      increased to 79% from effective interest spread management of rates earned      on customer margin balances and customer reserve deposits versus rates paid      on customer credit balances.                                                                                                                                          |
| • | Net loss for the nine months ended September      30, 2008 of $821,893 includes the following non-cash expenses:                                                                                                                                                                                                                                                                                                                                                          |

|   | • | Depreciation expense on property and equipment      of $277,633 |
|--------|--------|-----------------------------------------------------------------|
|   | • | Amortization expense on capitalized software      of $428,940   |
|   | • | Amortization expense on intangible assets of      $1,015,281    |
|   | • | Stock-based compensation of $107,094                            |

| • | Repurchased 1,048,615 shares under the common      stock buy-back program during the first nine months of 2008 for approximately      $1.31 million reducing outstanding shares to 25.48 million.                                                                                                                                                                                                                                                                                                       |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Redeemed all outstanding preferred stock with      a liquidation value of $781,100 and the accumulated dividends payable in      arrears on all series of preferred stock for $50,063 during the nine months      ended September 30, 2008.                                                                                                                                                                                                                                                             |
| • | Earned recognition in Barron's 2008 Online      Broker Survey (March 2008) as one of the best choices for active traders:      the firm was awarded a four star rating; ranked among the top three low      cost brokers for active traders; and received a score of 4.6 for "trade      experience," compared to the top score given of 4.7. Was named "Emerging      Broker of the Year" for the second consecutive year at Opal Financial Group's      2008 Emerging Manager Summit on May 16, 2008. |

----

----

----

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|   |                  |   |
|--------|-----------------------|--------|
|   | Period         ending |        | Total number         of shares         purchased in        quarter |  | Total number         of shares         purchased as        part of publicly         announced plan |  | Average price         paid per share |  | Approximate        dollar value of         shares purchased         under the plan |   |
|   | March                 |   | 476,500 |   | 1,148,794 |   | $ | 1.32 |   | $ | 629,199 |   |
|   | June                  |   | 526,000 |   | 1,674,794 |   | $ | 1.20 |   | $ | 634,283 |   |
|   | September             |   | 46,115 |   | 1,720,909 |   | $ | 1.12 |   | $ | 52,044 |   |
|   | Totals                |   | 1,048,615 |   |   |   |   |   |   | $ | 1,315,526 |   |
|   |                  |   |

| Exhibit 31.1 | Certification of Chief Executive Officer Pursuant      to Rule 13a-14(a) or Rule 15d-14(a)                                                                                                                                        |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit 31.2 | Certification of Chief Financial Officer Pursuant      to Rule 13a-14(a) or Rule 15d-14(a)                                                                                                                                        |
| Exhibit 32.1 | Certification of Chief Executive Officer and      Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and      18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002 |
|         |                                                                                                                                                                                                                              |

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|   | November 14, 2008 | /s/ Michael G. Nolan    |
|--------|-------------------|-------------------------|
|   | Date              | Michael G. Nolan        |
|   |              | Chief Executive Officer |
|   |              |                    |
|   |              |                    |
|   | November 14, 2008 | /s/ Jonathan J. Walsh   |
|   | Date              | Jonathan J. Walsh       |
|   |              | Chief Financial Officer |
|   |              |                    |
|   |              |                    |

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