**Table of Contents**

| ****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)** |   |   |

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| **PART I**   | **FINANCIAL INFORMATION**                                                                                                           | **Page No.** |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------|--------------|
|         |                                                                                                                                |         |
| **Item 1.**  | **Unaudited Condensed      Consolidated Financial Statements:**                                                                     | ** **   |
| ****         | ** **                                                                                                                          | ** **   |
| ****         | **Condensed Consolidated      Balance Sheets at September 30, 2010 (unaudited) and December 31, 2009**                              | **3**        |
| ****         | ** **                                                                                                                          | ** **   |
| ****         | **Unaudited Condensed      Consolidated Statements of Operations for Three and Nine Months Ended September      30, 2010 and 2009** | **4**        |
| ****         | ** **                                                                                                                          | ** **   |
| ****         | **Unaudited Condensed      Consolidated Statements of Cash Flows for Nine Months Ended September 30,      2010 and 2009**           | **5**        |
| ****         | ** **                                                                                                                          | ** **   |
| ****         | **Notes to Unaudited      Condensed Consolidated Financial Statements**                                                             | **6**        |
| ****         |                                                                                                                                | ** **   |
| **Item 2.**  | **Management's Discussion      and Analysis of Financial Condition and Results of Operations**                                      | **15**       |
|         |                                                                                                                                |         |
| **Item 3.**  | **Quantitative and Qualitative      Disclosures about Market Risk**                                                                 | **22**       |
|         |                                                                                                                                |         |
| **Item 4T.** | **Controls and Procedures**                                                                                                         | **22**       |
| ** **   | ** **                                                                                                                          |         |
| **PART II**  | **OTHER INFORMATION**                                                                                                               | ** **   |
|         |                                                                                                                                |         |
| **Item 1.**  | **Legal Proceedings**                                                                                                               | **23**       |
|         |                                                                                                                                | ** **   |
| **Item 1A.** | **Risk Factors**                                                                                                                    | **23**       |
|         |                                                                                                                                | ** **   |
| **Item 2.**  | **Unregistered Sales      of Equity Securities and Use of Proceeds**                                                                | **25**       |
|         |                                                                                                                                | ** **   |
| **Item 3.**  | **Defaults      in Senior Securities**                                                                                              | **25**       |
|         |                                                                                                                                | ** **   |
| **Item 4.**  | **Reserved**                                                                                                                        | **25**       |
|         |                                                                                                                                | ** **   |
| **Item 5.**  | **Other Information**                                                                                                               | **26**       |
|         |                                                                                                                                | ** **   |
| **Item 6.**  | **Exhibits**                                                                                                                        | **26**       |
|         |                                                                                                                                | ** **   |
|         | **Signatures**                                                                                                                      | **27**       |
|         |                                                                                                                                |         |
|         | **Exhibit      31.1 Certification of Chief Executive Officer**                                                                      | **28**       |
|         | **Exhibit      31.2 Certification of Chief Financial Officer**                                                                      | **29**       |
|         | **Exhibit      32.1 Certification of Chief Executive Officer and Chief Financial Officer**                                          | **30**       |

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**Table of Contents**

| **TNFG CORPORATION AND SUBSIDIARIES                        CONDENSED CONSOLIDATED BALANCE SHEETS             (UNAUDITED)**                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                     |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                     | **September 30,             2010** |   | December 31,            2009 |
| **ASSETS**                                                                                                                                                                                                          |
| Cash and cash equivalents                                                                                                                                                                                           | **$** | **7,563,883** |   |   | $ | 1,857,671 |   |
| Cash segregated in compliance          with federal regulations                                                                                                                                                     |   | **111,125,464** |   |   |   | 136,042,376 |   |
| Receivables from brokers, dealers and clearing organizations                                                                                                                                                        |   | **28,335,078** |   |   |   | 23,001,389 |   |
| Receivables from brokerage          customers                                                                                                                                                                       |   | **7,145,923** |   |   |   | 12,022,905 |   |
| Property and equipment, net of accumulated depreciation          and amortization                                                                                                                                   |   | **758,519** |   |   |   | 1,045,707 |   |
| Capitalized software          development costs, net of accumulated amortization                                                                                                                                    |   | **141,404** |   |   |   | 246,835 |   |
| Intangible assets, net of accumulated amortization                                                                                                                                                                  |   | **1,713,751** |   |   |   | 2,741,364 |   |
| Income tax receivable                                                                                                                                                                                               |   | **638,285** |   |   |   | 738,285 |   |
| Deferred income taxes, net                                                                                                                                                                                          |   | **5,053,485** |   |   |   | 1,499,761 |   |
| Other assets                                                                                                                                                                                                        |   | **788,831** |   |   |   | 657,361 |   |
|          Total          assets                                                                                                                                         | **$** | **163,264,623** |   |   | $ | 179,853,654 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| **LIABILITIES AND SHAREHOLDERS'            EQUITY**                                                                                                                                                                 |
| Payables to brokerage          customers                                                                                                                                                                            | **$** | **141,102,051** |   |   | $ | 159,825,033 |   |
| Payables to brokers, dealers and clearing organizations                                                                                                                                                             |   | **282,768** |   |   |   | 490,911 |   |
| Accounts payable and          accrued expenses                                                                                                                                                                      |   | **1,737,433** |   |   |   | 1,355,905 |   |
|          Total          liabilities                                                                                                                                    |   | **143,122,252** |   |   |   | 161,671,849 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| **Commitments and contingencies**                                                                                                                                                                                   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                |   |  |   |   |   |  |   |
| **Shareholders' equity**                                                                                                                                                                                            |   |  |   |   |   |  |   |
| Preferred stock; $10          par value; 5,000,000 shares authorized; none issued                                                                                                                                   |   | **-** |   |   |   | - |   |
| Common stock; $0.01 par value; 150,000,000 shares authorized;          25,482,942 shares               issued and 25,054,508 shares outstanding at September          30, 2010 and December 31, 2009 |   | **254,829** |   |   |   | 254,829 |   |
| Treasury stock, common,          at cost; 428,434 shares at September 30, 2010 and December 31, 2009                                                                                                                |   | **(272,056** | **)** |   |   | (272,056 | ) |
| Additional paid-in capital                                                                                                                                                                                          |   | **52,162,883** |   |   |   | 52,132,836 |   |
| Accumulated deficit                                                                                                                                                                                                 |   | **(32,003,285** | **)** |   |   | (33,933,804 | ) |
|          Total          shareholders' equity                                                                                                                           |   | **20,142,371** |   |   |   | 18,181,805 |   |
|          Total          liabilities and shareholders' equity                                                                                                           | **$** | **163,264,623** |   |   | $ | 179,853,654 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| See accompanying notes to unaudited            condensed consolidated financial statements.                                                                                                                         |

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**Table of Contents**

| **TNFG CORPORATION AND SUBSIDIARIES                    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS          (UNAUDITED)** |
|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                          |   | **Three Months Ended September 30,** |   |   |   | **Nine Months Ended September 30,** |   |
|                                                                                                                               |   | **2010** |   |   |   | 2009 |   |   |   | **2010** |   |   |   | 2009 |   |
| **REVENUES**                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commissions and fees                                                                                                          | **$** | **3,434,324** |   |   | $ | 6,288,807 |   |   | **$** | **11,473,422** |   |   | $ | 19,761,940 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
| Interest income                                                                                                               |   | **221,829** |   |   |   | 329,086 |   |   |   | **695,313** |   |   |   | 1,189,669 |   |
| Interest expense on brokerage accounts                                                                                        |   | **125** |   |   |   | 69 |   |   |   | **583** |   |   |   | 438 |   |
|          Net        interest income                                              |   | **221,704** |   |   |   | 329,017 |   |   |   | **694,730** |   |   |   | 1,189,231 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
| Other revenues                                                                                                                |   | **288,572** |   |   |   | 154,836 |   |   |   | **727,298** |   |   |   | 262,395 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
|          Net        revenues                                                     |   | **3,944,600** |   |   |   | 6,772,660 |   |   |   | **12,895,450** |   |   |   | 21,213,566 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
| **EXPENSES**                                                                                                                  |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
| Commissions and clearing                                                                                                      |   | **1,524,807** |   |   |   | 2,575,546 |   |   |   | **4,492,432** |   |   |   | 7,655,994 |   |
| Compensation and benefits                                                                                                     |   | **1,338,309** |   |   |   | 1,928,654 |   |   |   | **4,576,241** |   |   |   | 5,889,122 |   |
| Software and market data                                                                                                      |   | **605,548** |   |   |   | 756,241 |   |   |   | **1,596,499** |   |   |   | 2,572,371 |   |
| Advertising and promotional                                                                                                   |   | **949** |   |   |   | 161,798 |   |   |   | **26,207** |   |   |   | 455,922 |   |
| Professional fees                                                                                                             |   | **346,853** |   |   |   | 632,902 |   |   |   | ****1,628,072**** |   |   |   | 2,011,738 |   |
| Communications and information        technology                                                                              |   | **192,352** |   |   |   | 226,483 |   |   |   | ****641,455**** |   |   |   | 624,459 |   |
| Depreciation and amortization                                                                                                 |   | **458,651** |   |   |   | 503,042 |   |   |   | ****1,458,257**** |   |   |   | 1,485,241 |   |
| Other general and administrative        expenses                                                                              |   | **140,365** |   |   |   | 794,593 |   |   |   | ****1,538,731**** |   |   |   | 2,020,129 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |   |   |
|          Total        expenses                                                   |   | **4,607,834** |   |   |   | 7,579,259 |   |   |   | **15,957,894** |   |   |   | 22,714,976 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |   |   |
| Loss from continuing operations        before income taxes                                                                    |   | **(663,234** | **)** |   |   | (806,599 | ) |   |   | ****(3,062,444**** | **)** |   |   | (1,501,410 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |   |   |
| Income tax benefit                                                                                                            |   | **5,012,748** |   |   |   | 315,663 |   |   |   | **5,012,748** |   |   |   | 584,463 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |   |   |
| Net income (loss) from        continuing operations                                                                           |   | **4,349,514** | ** ** |   |   | (490,936 | ) |   |   | **1,950,304** |   |   |   | (916,947 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   | **** |   |   |   |  |   |
| Discontinued operations:                                                                                                      |   |   |   |   |   |   |   |   |   | ** ** |   |   |   |   |   |
|          Loss        from discontinued operations before income taxes            |   | **-** |   |   |   | (195,789 | ) |   |   | **(19,785** | **)** |   |   | (391,173 | ) |
|          Income        tax benefit                                               |   | **-** |   |   |   | 76,358 |   |   |   | **-** |   |   |   | 152,358 |   |
|          Loss        from discontinued operations                                |   | **-** |   |   |   | (119,431 | ) |   |   | **(19,785** | **)** |   |   | (238,815 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                             | **$** | **4,349,514** | ** ** |   | $ | (610,367 | ) |   | **$** | ****1,930,519**** |   |   | $ | (1,155,762 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Diluted                                                                                                             |   |   |   |   |   |   |   |   | **** | ** ** | **** |   |   |  |   |
|          Continuing        operations                                            | **$** | **0.17** |   |   | $ | (0.02 | ) |   | **$** | **0.08** | ** ** |   | $ | (0.04 | ) |
|          Discontinued        operations                                          | ** ** | **-** |   |   |   | - |   |   | ** ** | **-** | ** ** |   |   | (0.01**** | ) |
|                                                                                                                          | **$** | **0.17** |   |   | $ | (0.02 | ) |   | **$** | **0.08** | ** ** |   | $ | (0.05 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                         |   | **25,054,508** |   |   |   | 25,054,508 |   |   |   | **25,054,508** |   |   |   | 25,328,622 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                       |   | **25,054,508** |   |   |   | 25,054,508 |   |   |   | **25,054,508** |   |   |   | 25,328,622 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited          condensed consolidated financial statements.                                     |

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**Table of Contents**

| **TNFG CORPORATION AND SUBSIDIARIES                        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS             (UNAUDITED)** |
|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                                      |   | **Nine Months Ended September 30,** |   |
|                                                                                                                                      |   | **2010** |   |   |   | 2009 |   |
| **Cash flows from operating          activities**                                                                                    |   |   |   |   |   |   |   |
| Net Income (loss)                                                                                                                    | **$** | **1,930,519** |   |   | $ | (1,155,762 | ) |
| Adjustments to reconcile          net loss to net cash provided by (used in) operating activities:                                   |   |  |   |   |   |   |   |
|        Share-based          compensation                                                          |   | **30,047** |   |   |   | 91,264 |   |
|        Depreciation          and amortization                                                     |   | **1,458,257** |   |   |   | 1,715,916 |   |
|        Deferred          income taxes                                                             |   | **(3,553,724** | **)** |   |   | (715,000 | ) |
|        Gain          on extinguishment of liabilities                                             |   | **-** |   |   |   | (60,626 | ) |
|        Loss          on write-off of other assets                                                 |   | **10,234** |   |   |   | 50,000 |   |
| Changes in operating assets and liabilities:                                                                                         |   |  |   |   |   |  |   |
|        Decrease          (increase) in cash segregated in compliance with federal regulations     |   | **24,916,912** |   |   |   | (8,230,681 | ) |
|        Increase          in receivables from brokers, dealers and clearing organizations          |   | **(5,333,689** | **)** |   |   | (19,338,772 | ) |
|        Decrease          (increase) in receivables from brokerage customers                       |   | **4,876,982** |   |   |   | (5,436,987 | ) |
|        Decrease          in income tax receivable                                                 |   | **100,000** |   |   |   | 707,979 |   |
|        Decrease          (increase) in other assets                                               |   | **(131,470** | **)** |   |   | 103,329 |   |
|        Increase          (decrease) in payables to brokers, dealers and clearing organizations    |   | **(208,143** | **)** |   |   | 278,198 |   |
|        Increase          (decrease) in payables to brokerage customers                            |   | **(18,722,982** | **)** |   |   | 31,406,966 |   |
|        Increase          (decrease) in accounts payable and accrued expenses                      |   | **381,528** | ** ** |   |   | (38,662 | ) |
|                                                                                                                                 |   |  |   |   |   |  |   |
| Net cash provided by          (used in) operating activities                                                                         |   | **5,754,471** |   |   |   | (622,838 | ) |
|                                                                                                                                 |   |  |   |   |   |  |   |
| **Cash flows from investing          activities**                                                                                    |   |  |   |   |   |  |   |
|        Purchases          of property and equipment                                               |   | **(48,259** | **)** |   |   | (370,718 | ) |
|        Capitalization          of software development costs                                      |   | **-** | ** ** |   |   | (142,837 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| Net cash used in investing          activities                                                                                       |   | **(48,259** | **)** |   |   | (513,555 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Cash flows from financing activities**                                                                                             |   |   |   |   |   |   |   |
|        Purchase          of treasury stock                                                        |   | **-** | ** ** |   |   | (272,056 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| Net cash used in financing activities                                                                                                |   | **-** | ** ** |   |   | (272,056 | ) |
|                                                                                                                                 |   |  |   |   |   |  |   |
| Net increase (decrease) in cash and cash          equivalents                                                                        |   | **5,706,212** |   |   |   | (1,408,449 | ) |
| Cash and cash equivalents at beginning          of period                                                                            |   | **1,857,671** |   |   |   | 7,889,553 |   |
| Cash and cash equivalents at end of period                                                                                           | **$** | **7,563,883** |   |   | $ | 6,481,104 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| Supplemental cash flow information:                                                                                                  |   |   |   |   |   |   |   |
|        Income          tax refund received                                                        | **$** | **1,559,024** |   |   | $ | 696,322 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| See accompanying notes to unaudited            condensed consolidated financial statements.                                          |

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**Table of Contents**

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**Table of Contents**

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**Table of Contents**

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**Tableof Contents**

|   |                                               |                                 |
|--------|----------------------------------------------------|--------------------------------------|
|   |                                               | For Three Months Ended September 30, |   | For Nine Months Ended September 30, |   |
|   |                                                    | 2010                                 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   |
|   | Weighted average      shares outstanding - Basic   | 25,054,508                           |   |   | 25,054,508 |   |   | 25,054,508 |   |   | 25,328,622 |   |   |
|   | Weighted average shares outstanding      - Diluted | 25,054,508                           |   |   | 25,054,508 |   |   | 25,054,508 |   |   | 25,328,622 |   |   |
|   |                                               |                                 |

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**Table of Contents**

|                                                                                   |   | **Three Months Ended September 30,** |   |   |   | **Nine Months Ended September 30,** |   |   |
|----------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|--------|-------------------------------------|--------|--------|
|                                                                                        |   | **2010**                             |   |   |   | 2009                           |   |   |   | **2010** |   |   |   | 2009  |   |   |
| Net revenues                                                                           | **$**  | **-**                                |   |   | $      | 447,458                             |   |   | **$** | **108,842** |   |   | $ | 1,507,365 |   |   |
| Total expenses                                                                         |   | **-**                                |   |   |   | (643,247                            | )      |   |   | **(128,627** | **)** |   |   | (1,898,538 | ) |   |
| Income tax benefit                                                                     |   | **-**                                |   |   |   | 76,358                              |   |   |   | **-** |   |   |   | 152,358 |   |   |
|         Loss      from discontinued operations | **$**  | **-**                                |   |   | $      | (119,431                            | )      |   | **$** | **(19,785** | **)** |   | $ | (238,815 | ) |   |
|                                                                                   |   |                                 |   |   |   |                                |   |   |   |   |   |   |   |   |   |   |

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**Table of Contents**

|   |                      |   |
|--------|---------------------------|--------|
|   |                      |   |   |   |   | Minimum Net Capital Requirement |   | Excess Net Capital |   |
|   |                      |   | Net Capital |   | SEC |   | CFTC |   | SEC |   | CFTC |   |
|   | Terra Nova Financial, LLC |   | $ | 9,776,674 |   | $ | 1,500,000 |   | $ | 1,000,000 |   | $ | 8,276,674 |   | $ | 8,776,674 |   |
|   |                      |   |

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**Table of Contents**

|   |                                          |   |
|--------|-----------------------------------------------|--------|
|   | Employee      Stock Option and Warrant Plans  |   | Authorized |   | Outstanding |   | Available |   |
|   | 2005 Long-Term Incentive      Plan ("LTIP")   |   | 4,184,553 |   | 413,667 |   | 3,770,887 |   |
|   | 2006      Warrant Incentive Plan ("2006 WIP") |   | 3,500,000 |   | 3,027,500 |   | 472,500 |   |
|   | Balance at September 30,      2010            |   | 7,684,553 |   | 3,441,167 |   | 4,243,387 |   |
|   |                                          |   |

|                                      |   |
|-------------------------------------------|--------|
| 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, 2009              |   | 992,774 |   |   | $ | 1.25 |   | 3.64 |   |   | - |   |
| Granted                                   |   | - |   |   |   | - |   | - |   |   | - |   |
| Exercised                                 |   | - |   |   |   | - |   | - |   |   | - |   |
| Cancelled/Expired                         |   | (579,107 | ) |   |   | 1.45 |   | 0.11 |   |   | - |   |
| Balance at September 30,      2010        |   | 413,667 |   |   | $ | 0.97 |   | 3.50 |   | $ | - |   |
| Options exercisable at September 30, 2010 |   | 193,667 |   |   | $ | 1.16 |   | 3.10 |   | $ | - |   |
|                                      |   |

|   |                                       |   |
|--------|--------------------------------------------|--------|
|   | Employee Warrants                          |   | Employee        Warrants        Outstanding |   |   | Weighted        Average        Exercise        Price |   | Weighted         Average         Remaining         Contract Term        (in years) |   |   | Aggregate        Intrinsic Value |   |
|   | Balance at December 31, 2009               |   | 3,027,500 |   |   | $ | 2.56 |   |   | 1.55 |   |   |   | - |   |   |
|   | Granted                                    |   | - |   |   |   | - |   |   | - |   |   |   | - |   |   |
|   | Exercised                                  |   | - |   |   |   | - |   |   | - |   |   |   | - |   |   |
|   | Cancelled                                  |   | - |   |   |   | - |   |   | - |   |   |   | - |   |   |
|   | Balance at September 30,      2010         |   | 3,027,500 |   |   | $ | 2.56 |   |   | 0.80 |   |   | $ | - |   |   |
|   | Warrants exercisable at September 30, 2010 |   | 3,027,500 |   |   | $ | 2.56 |   |   | 0.80 |   |   | $ | - |   |   |
|   |                                       |   |

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|                                           |
|------------------------------------------------|
|                                                |   |   | September 30, 2010 |   | December 31, 2009 |
|                                                | Estimated         Useful         Life in Years |   |   | Property and        equipment |   |   |   | Capitalized        software         development        costs |   |   |   | Property and        equipment |   |   |   | Capitalized         software        development         costs |   |
| Capitalized software development               | 3-5 |   | $ | - |   |   | $ | 332,283 |   |   | $ | - |   |   | $ | 428,332 |   |
| Computer and hardware                          | 3-5 |   |   | 863,880 |   |   |   | - |   |   |   | 1,013,879 |   |   |   | - |   |
| Furniture, fixtures and equipment              | 3-7 |   |   | 272,534 |   |   |   | - |   |   |   | 352,141 |   |   |   | - |   |
| Leasehold improvements                         | 5-10 |   |   | 119,588 |   |   |   | - |   |   |   | 119,589 |   |   |   | - |   |
|                                           |   |   |   | 1,256,002 |   |   |   | 332,283 |   |   |   | 1,485,609 |   |   |   | 428,332 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |
| Accumulated depreciation      and amortization |   |   |   | (497,483 | ) |   |   | (190,879 | ) |   |   | (439,902 | ) |   |   | (181,497 | ) |
| Net balance                                    |   |   | $ | 758,519 |   |   | $ | 141,404 |   |   | $ | 1,045,707 |   |   | $ | 246,835 |   |
|                                           |

|   |                     |   |
|--------|--------------------------|--------|
|   |                          |   | September 30, 2010 |   | December 31, 2009 |   |
|   | Customer list            | $      | 4,749,000 |   |   | $ | 4,749,000 |   |   |
|   | Trade name               |   |   | 1,829,000 |   |   |   | 1,829,000 |   |   |
|   |                     |   |   | 6,578,000 |   |   |   | 6,578,000 |   |   |
|   |                     |   |   |   |   |   |   |   |   |   |
|   | Accumulated amortization |   |   | (4,864,249 | ) |   |   | (3,836,636 | ) |   |
|   | Net balance              |   | $ | 1,713,751 |   |   | $ | 2,741,364 |   |   |
|   |                     |   |

|   |                                               |   |
|--------|----------------------------------------------------|--------|
|   | Financial instruments owned, at fair value:        |   | September 30, 2010 |   | December 31, 2009 |   |
|   | Commercial Paper                                   | $      | 4,600,000 |   |   | $ | 2,337,655 |   |   |
|   | U.S. Treasury securities held as clearing deposits |   |   | 11,796,526 |   |   |   | 12,998,592 |   |   |
|   | Total                                              |   | $ | 16,396,526 |   |   | $ | 15,336,247 |   |   |
|   |                                               |   |

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| • | Level 1 - Quoted prices (unadjusted) in active      markets for identical assets or liabilities that the Company has the ability      to access.                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2 - Inputs other than quoted prices included      in Level 1 that are observable for the asset or liability, either directly      or indirectly. Such inputs include quoted prices in markets that are not      active, quoted prices for similar assets and liabilities in active markets,      inputs other than quoted prices that are observable for the asset or liability      and inputs that are derived principally from or corroborated by observable      market data by correlation or other means. |
| • | Level 3 - Unobservable inputs for the asset      or liability, where there is little, if any, observable market activity      or data for the asset or liability.                                                                                                                                                                                                                                                                                                                                                     |

|                                               |
|----------------------------------------------------|
|                                                    |   |   | Quoted Prices        in Active        Markets for         Identical         Assets |   |   |   | Significant         Other         Observable        Inputs |   |   |   | Significant         Unobservable        Inputs |   |   |   |   |   |
| Financial      instruments owned, at fair value:   |   |   | Level 1 |   |   |   | Level 2 |   |   |   | Level 3 |   |   |   | Fair Value |   |
| Commercial Paper                                   |   | $ | 4,600,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,600,000 |   |
| U.S. Treasury securities held as clearing deposits |   |   | 11,796,526 |   |   |   | - |   |   |   | - |   |   |   | 11,796,526 |   |
| Total                                              |   | $ | 16,396,526 |   |   | $ | - |   |   | $ | - |   |   | $ | 16,396,526 |   |
|                                               |

|   |                                     |               |
|--------|------------------------------------------|--------------------|
|   |                                     | September 30, 2010 |   | December 31, 2009 |   |
|   |                                          |               | Receivables |   |   | Payables |   |   | Receivables |   |   | Payables |   |
|   | Cash held for securities      borrowed   | $                  | 13,492,100 |   | $ | - |   | $ | 7,988,525 |   | $ | - |   |
|   | Clearing deposits & receivables/payables |               | 14,842,978 |   |   | 282,768 |   |   | 15,012,864 |   |   | 490,911 |   |
|   | Total                                    | $                  | 28,335,078 |   | $ | 282,768 |   | $ | 23,001,389 |   | $ | 490,911 |   |
|   |                                     |               |

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|                                                                                                             |   | **Three Months Ended September 30,** |       |   |   | **Nine Months Ended September 30,** |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|--------|-------------------------------------|--------|
|                                                                                                                  |   | **2010**                             |       |   |   | 2009                                |   |   |   | **2010** |   |   |   | 2009 |   |
| **REVENUES**                                                                                                     |   |                                 |       |   |   |                                |   |   |   |   |   |   |   |   |   |
| Commissions and fees                                                                                             | **$**  | **3,434,324**                        |       |   | $      | 6,288,807                           |   |   | **$** | **11,473,422** |   |   | $ | 19,761,940 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
| Interest income                                                                                                  |   | **221,829**                          |       |   |   | 329,086                             |   |   |   | **695,313** |   |   |   | 1,189,669 |   |
| Interest expense on brokerage accounts                                                                           |   | **125**                              |       |   |   | 69                                  |   |   |   | **583** |   |   |   | 438 |   |
|          Net      interest income                                   |   | **221,704**                          |       |   |   | 329,017                             |   |   |   | **694,730** |   |   |   | 1,189,231 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
| Other revenues                                                                                                   |   | **288,572**                          |       |   |   | 154,836                             |   |   |   | **727,298** |   |   |   | 262,395 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
|          Net      revenues                                          |   | **3,944,600**                        |       |   |   | 6,772,660                           |   |   |   | **12,895,450** |   |   |   | 21,213,566 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
| **EXPENSES**                                                                                                     |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
| Commissions and clearing                                                                                         |   | **1,524,807**                        |       |   |   | 2,575,546                           |   |   |   | **4,492,432** |   |   |   | 7,655,994 |   |
| Compensation and benefits                                                                                        |   | **1,338,309**                        |       |   |   | 1,928,654                           |   |   |   | **4,576,241** |   |   |   | 5,889,122 |   |
| Software and market data                                                                                         |   | **605,548**                          |       |   |   | 756,241                             |   |   |   | **1,596,499** |   |   |   | 2,572,371 |   |
| Advertising and promotional                                                                                      |   | **949**                              |       |   |   | 161,798                             |   |   |   | **26,207** |   |   |   | 455,922 |   |
| Professional fees                                                                                                |   | **346,853**                          |       |   |   | 632,902                             |   |   |   | ****1,628,072**** |   |   |   | 2,011,738 |   |
| Communications and information      technology                                                                   |   | **192,352**                          |       |   |   | 226,483                             |   |   |   | ****641,455**** |   |   |   | 624,459 |   |
| Depreciation and amortization                                                                                    |   | **458,651**                          |       |   |   | 503,042                             |   |   |   | ****1,458,257**** |   |   |   | 1,485,241 |   |
| Other general and administrative      expenses                                                                   |   | **140,365**                          |       |   |   | 794,593                             |   |   |   | ****1,538,731**** |   |   |   | 2,020,129 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |   |   |
|          Total      expenses                                        |   | **4,607,834**                        |       |   |   | 7,579,259                           |   |   |   | **15,957,894** |   |   |   | 22,714,976 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |   |   |
| Loss from continuing operations      before income taxes                                                         |   | **(663,234**                         | **)**      |   |   | (806,599                            | )      |   |   | ****(3,062,444**** | **)** |   |   | (1,501,410 | ) |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |   |   |
| Income tax benefit                                                                                               |   | **5,012,748**                        |       |   |   | 315,663                             |   |   |   | **5,012,748** |   |   |   | 584,463 |   |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |   |   |
| Net income (loss) from continuing      operations                                                                |   | **4,349,514**                        | ** ** |   |   | (490,936                            | )      |   |   | **1,950,304** |   |   |   | (916,947 | ) |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   | **** |   |   |   |  |   |
| Discontinued operations:                                                                                         |   |                                 |       |   |   |                                |   |   |   | ** ** |   |   |   |   |   |
|          Loss      from discontinued operations before income taxes |   | **-**                                |       |   |   | (195,789                            | )      |   |   | **(19,785** | **)** |   |   | (391,173 | ) |
|          Income      tax benefit                                    |   | **-**                                |       |   |   | 76,358                              |   |   |   | **-** |   |   |   | 152,358 |   |
|          Loss      from discontinued operations                     |   | **-**                                |       |   |   | (119,431                            | )      |   |   | **(19,785** | **)** |   |   | (238,815 | ) |
|                                                                                                             |   |                                 |       |   |   |                                |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                | **$**  | **4,349,514**                        | ** ** |   | $      | (610,367                            | )      |   | **$** | ****1,930,519**** |   |   | $ | (1,155,762 | ) |

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| • | Net loss from continuing operations for the      nine months ended September 30, 2010 of $1,049,696 includes the following      non-cash expenses among other non-cash items: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ° | Depreciation expense on property      and equipment of $325,212 |
|--------|--------|-----------------------------------------------------------------|
|   | ° | Amortization expense on capitalized      software of $105,432   |
|   | ° | Amortization expense on intangible      assets of $1,027,613    |
|   | ° | Share-based compensation of $30,047                             |

| • | Posted average revenue per employee of approximately      $274,000 based on forty-seven full-time employees as of September 30, 2010      compared to $262,000 based on eighty-one full-time employees as of September      30, 2009. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net interest income was down $495,000 to $695,000      for the nine months ended September 30, 2010 compared to $1.19 million for      the nine months ended September 30, 2009.                                                      |

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|   | •   If currently unknown or unanticipated      claims are asserted against us, we will have to defend, resolve or reserve      for such claims before making distributions to shareholders, which will      reduce amounts otherwise available for distribution.      •   We have made estimates regarding the expense of personnel      required and other operating expenses (including legal, accounting and other      professional fees) necessary to dissolve the Company and wind up our business      and affairs. Our actual expenses could vary significantly. If the closing      of the Transaction takes longer than we expect or the time it takes to wind      up of our business takes longer than anticipated, we may incur additional      expenses above our current estimates, which could substantially reduce funds      available for distribution to our shareholders. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •   The preparation, review,      filing and dissemination of SEC filings.              |
|--------|--------------------------------------------------------------------------------------------------------|
|   | •   Maintenance of effective      internal controls over financial reporting.           |
|   | •   Audits and reviews conducted      by our independent registered public accountants. |

|   | •   If a creditor or other third      party seeks an injunction against the making of distributions to our shareholders      on the ground that the amounts to be distributed are needed to provide for      the satisfaction of our liabilities or other obligations.      •   If we become a party to lawsuits or other claims asserted      by or against us, including any claims or litigation arising in connection      with our decision effect the Transaction or to liquidate and dissolve.      •   If we are unable to resolve claims with creditors or      other third parties, or if such resolutions take longer than expected. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No.       | Description                                                                                                                                                                                                                       |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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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|   |                    | TNFG Corporation       (Registrant)                                                                              |
|--------|-------------------------|------------------------------------------------------------------------------------------------------------------|
|   |                    |                                                                                                             |
|   | Date: November 12, 2010 | By: /s/ Bernay Box                                                                                               |
|   |                    | Bernay Box                                                                                                       |
|   |                    | Chief Executive Officer       (Principal Executive Officer)                                                      |
|   |                    |                                                                                                             |
|   | Date: November 12, 2010 | By: /s/ Murrey Wanstrath                                                                                         |
|   |                    | Murrey Wanstrath       Chief Financial Officer       (Principal Financial Officer and       Accounting Officer ) |
|   |                    |                                                                                                             |
|   |                    |                                                                                                             |
|   |                    |                                                                                                             |

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