| ****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** |
|-----------|-----------------------------------------------------------------------------------------------------|
| **Texas**                | **75-2375969**                       |
|--------------------------|--------------------------------------|
| (State of incorporation) | (I.R.S. employer identification no.) |

----

| **PART I****                  FINANCIAL      INFORMATION** | **Page No.** |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|

| **Item 1.**                                                    | **Unaudited Consolidated Financial Statements:**                                                                 | ** ** |
|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------|
| ****                                                           | ** **                                                                                                       | ** ** |
| ****                                                           | **Consolidated Balance Sheets      at June 30, 2007 (unaudited) and December 31, 2006**                          | **3**      |
| ****                                                           | ** **                                                                                                       | ** ** |
| ****                                                           | **Consolidated Statements of Operations for      Three and Six Months Ended June 30, 2007 and 2006 (unaudited)** | **4**      |
| ****                                                           | ** **                                                                                                       | ** ** |
| ****                                                           | **Consolidated Statements of Cash Flows for      Six Months Ended June 30, 2007 and 2006 (unaudited)**           | **5**      |
| ****                                                           | ** **                                                                                                       | ** ** |
| ****                                                           | **Notes to Consolidated Financial Statements**                                                                   | **6**      |
| ****                                                           | ** **                                                                                                       | ** ** |
| **Item 2.**                                                    | **Management Discussion and Analysis      of Financial Condition and Results of Operations**                     | **13**     |
| ****                                                           | ** **                                                                                                       | ** ** |
| **Item 3.**                                                    | **Controls and Procedures**                                                                                      | **18**     |
| ** **                                                     | ** **                                                                                                       |       |
| **PART II**                                                    | **OTHER INFORMATION**                                                                                            | ** ** |
|                                                           |                                                                                                             |       |
| **Item 1.**                                                    | **Legal Proceedings**                                                                                            | **19**     |
|                                                           |                                                                                                             | ** ** |
| **Item 2.**                                                    | **Unregistered Sales of Equity Securities      and Use of Proceeds**                                             | **19**     |
|                                                           |                                                                                                             | ** ** |
| **Item 3.**                                                    | **Defaults upon Senior Securities**                                                                              | **19**     |
|                                                           |                                                                                                             | ** ** |
| **Item 4.**                                                    | **Submission of Matters to a Vote of Security      Holders**                                                     | **19**     |
|                                                           |                                                                                                             | ** ** |
| **Item 5.**                                                    | **Other Information**                                                                                            | **21**     |
|                                                           |                                                                                                             | ** ** |
| **Item 6.**                                                    | **Exhibits**                                                                                                     | **21**     |
|                                                           |                                                                                                             | ** ** |
| **Signatures**                                                 | **22**                                                                                                           |
| **Exhibit 31.1 Certification of      Chief Executive Officer** | **23**                                                                                                           |
| **Exhibit 31.2 Certification of      Chief Financial Officer** | **24**                                                                                                           |
| **Exhibit 32.1 Certification of      Chief Executive Officer** | **25**                                                                                                           |
| **Exhibit 32.2 Certification of      Chief Financial Officer** | **26**                                                                                                           |

----

|                                                                                                                                                                                                                                                                                                     | **June 30,         2007** |                 | **December 31,****2006** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|-----------------|--------------------------|
| **ASSETS**                                                                                                                                                                                                                                                                                          |                      | **(Unaudited)** |                          |  |  |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                           | **$**                     | **2,894,694**   |                          | $ | 5,733,813 |   |
| Cash segregated in compliance      with federal regulations                                                                                                                                                                                                                                         |                      | **137,209,642** |                          |  | 156,751,025 |   |
| Receivables from brokers, dealers and clearing organizations                                                                                                                                                                                                                                        |                      | **27,452,141**  |                          |  | 55,397,271 |   |
| Receivables from customers      and non-customers                                                                                                                                                                                                                                                   |                      | **43,061,187**  |                          |  | 56,969,549 |   |
| Property and equipment, net                                                                                                                                                                                                                                                                         |                      | **929,037**     |                          |  | 614,746 |   |
| Capitalized software development      costs, net                                                                                                                                                                                                                                                    |                      | **1,838,474**   |                          |  | 1,754,114 |   |
| Intangible assets, net                                                                                                                                                                                                                                                                              |                      | **5,869,458**   |                          |  | 6,221,871 |   |
| Goodwill                                                                                                                                                                                                                                                                                            |                      | **9,583,480**   |                          |  | 9,583,480 |   |
| Other assets                                                                                                                                                                                                                                                                                        |                      | **2,419,219**   |                          |   | 1,693,392 |   |
|               Total      assets                                                                                                                                                                                               | **$**                     | **231,257,332** |                          | $ | 294,719,261 |   |
|                                                                                                                                                                                                                                                                                                | ** **                |            |                     |   |   |   |
| **LIABILITIES AND SHAREHOLDERS' EQUITY**                                                                                                                                                                                                                                                            |                      |                 |                          |  |  |   |
| Line of credit                                                                                                                                                                                                                                                                                      | **$**                     | **1,291,000**   |                          | $ | 18,625,000 |   |
| Payables to brokers, dealers      and clearing organizations                                                                                                                                                                                                                                        |                      | **1,572,799**   |                          |  | 911,261 |   |
| Payables to customers and non-customers                                                                                                                                                                                                                                                             |                      | **189,114,640** |                          |  | 238,622,993 |   |
| Accounts payable and accrued      expenses (including $56,157 and $49,611 of accrued          interest due to related parties at June 30, 2007 and December      31, 2006, respectively)                                                                                                  |                      | **5,377,515**   |                          |  | 5,074,011 |   |
| Accrued preferred stock dividends                                                                                                                                                                                                                                                                   |                      | **287,114**     |                          |  | 258,520 |   |
| Income tax liability                                                                                                                                                                                                                                                                                |                      | **956,146**     |                          |  | - |   |
| Convertible notes payable                                                                                                                                                                                                                                                                           |                      | **133,333**     |                          |  | 300,000 |   |
| Convertible bonds payable      (net of unamortized debt discount of $1,803 and $8,853 at          June 30, 2007 and December 31, 2006, respectively)                                                                                                                                      |                      | **328,197**     |                     |   | 321,147 |   |
|               Total      liabilities                                                                                                                                                                                          |                      | **199,060,744** |                          |  | 264,112,932 |   |
|                                                                                                                                                                                                                                                                                                     |                      |                 |                          |  |  |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                       | ** **                | ** **      |                          |   |   |   |
|                                                                                                                                                                                                                                                                                                     |                      |                 |                          |  |  |   |
| Shareholders' equity (deficit)                                                                                                                                                                                                                                                                      |                      | ** **      |                          |  |   |   |
| Preferred stock - cumulative;      $10 par value; 38,792 shares authorized;          14,063 shares issued and outstanding at June 30, 2007 and December      31, 2006;          liquidation preference of $10 per share                                                         |                      | **140,630**     |                          |  | 140,630 |   |
| Preferred stock - convertible cumulative; $10      par value; 835,000 shares authorized;          49,480 shares issued and outstanding at June 30, 2007 and December      31, 2006;          liquidation preference of $10 per share                                            |                      | **494,800**     |                          |  | 494,800 |   |
| Common stock - $0.01 par      value, 150,000,000 and 800,000,000 shares authorized at         June 30, 2007 and December 31, 2006, respectively; 27,192,462      and 27,184,294 shares         issued and outstanding at June 30, 2007 and December 31, 2006,      respectively |                      | **271,915**     |                          |  | 271,843 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                          |                      | **52,415,595**  |                     |   | 52,062,685 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                 |                      | **(21,126,352** | **)**                    |   | (22,363,629 | ) |
|               Total      shareholders' equity                                                                                                                                                                                 |                      | **32,196,588**  |                          |   | 30,606,329 |   |
|               Total      liabilities and shareholders' equity                                                                                                                                                                 | **$**                     | **231,257,332** |                          | $ | 294,719,261 |   |
|                                                                                                                                                                                                                                                                                                |                      |            |                     |   |   |   |

----

|                                                                                                               | **Three Months Ended June 30,** |            | **Six Months Ended June 30,** |   |
|--------------------------------------------------------------------------------------------------------------------|---------------------------------|-----------------|-------------------------------|--------|
|                                                                                                               |                            | **2007**        |                          |   | 2006 |   |   | **2007** |   |   | 2006 |   |
| **REVENUES**                                                                                                       |                            | **(Unaudited)** |                          |   | (Unaudited) |   |   | **(Unaudited)** |  |  | (Unaudited) |   |
| Commissions and fees                                                                                               | **$**                           | **9,066,084**   |                          | $      | 7,574,334 |   | **$** | **17,235,637** |  | $ | 8,209,564 |   |
| Interest income                                                                                                    |                            | **3,939,233**   |                          |   | 2,024,365 |   |   | **7,438,284** |  |  | 2,029,109 |   |
| Software fees                                                                                                      |                            | **144,667**     |                          |   | 29,273 |   |   | **247,785** |  |  | 62,340 |   |
| Other income                                                                                                       |                            | **108,567**     |                          |   | 48,072 |   |   | **242,849** |  |   | 63,170 |   |
|                                                                                                               |                            |                 |                          |   |  |   |   |   |   |   |   |   |
|               Total      revenues            |                            | **13,258,551**  |                          |   | 9,676,044 |   |   | **25,164,555** |  |  | 10,364,183 |   |
|                                                                                                               |                            | ****            |                          |   |  |   |   | ** ** |  |  |   |   |
| **OPERATING EXPENSES**                                                                                             |                            | ****            |                          |   |  |   |   | ** ** |  |  |   |   |
| Commissions, execution and exchange fees                                                                           |                            | **3,659,734**   |                          |   | 3,849,191 |   |   | **6,386,024** |  |  | 4,170,393 |   |
| Employee compensation                                                                                              |                            | **2,860,162**   |                          |   | 2,936,420 |   |   | **5,252,774** |  |  | 3,333,730 |   |
| Quotations and market data                                                                                         |                            | **1,396,542**   |                          |   | 1,158,471 |   |   | **2,867,890** |   |   | 1,272,798 |   |
| Interest expense on brokerage      accounts                                                                        |                            | **1,687,197**   |                          |   | 915,645 |   |   | **3,672,726** |  |  | 915,645 |   |
| Advertising and promotional                                                                                        |                            | **249,033**     |                          |   | 179,151 |   |   | **490,651** |  |  | 185,925 |   |
| Professional fees                                                                                                  |                            | **564,558**     |                          |   | 278,248 |   | **** | ******982,177** |  |   | 375,275 |   |
| Communications and information technology                                                                          |                            | **238,463**     |                          |   | 199,534 |   | ** ** | **425,938** |   |   | 261,172 |   |
| Depreciation and amortization                                                                                      |                            | **450,165**     |                          |   | 518,780 |   |   | **828,201** |  |  | 624,494 |   |
| Other general and administrative expense                                                                           |                            | **1,252,976**   |                          |   | 902,241 |   |   | **2,022,237** |  |   | 999,997 |   |
|                                                                                                               |                            |                 |                          |   |  |   |   | ** ** |  |  |    |   |
|                     Total operating expenses |                            | **12,358,830**  |                          |   | 10,937,681 |   |   | **22,928,618** |  |   | 12,139,429 |   |
|                                                                                                               |                            | ****            |                          |   |  |   |   | ** ** |  |  |    |   |
| Operating income (loss)                                                                                            |                            | **899,721**     |                          |   | (1,261,637 | ) |   | **2,235,937** |  |  | (1,775,246 | ) |
|                                                                                                               |                            |                 |                          |   |  |   |   | ** ** |  |  |    |   |
| Interest expense                                                                                                   |                            | **17,687**      |                          |   | 153,100 |   |   | **42,514** |  |   | 196,097 |   |
|                                                                                                               |                            |                 |                          |   |  |   |   | ** ** |  |  |   |   |
| Income (loss) before income taxes                                                                                  |                            | **882,034**     |                          |   | (1,414,737 | ) | ** ** | **2,193,423** |  |   | (1,971,343 | ) |
|                                                                                                               |                            |                 |                          |   |   |   | ** ** | ** ** |  |   |   |   |
| Income tax provision                                                                                               |                            | **516,076**     |                          |   | - |   |   | **956,146** |  |   | - |   |
|                                                                                                               |                            |                 |                          |   |  |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                  | **$**                           | **365,958**     |                          | $      | (1,414,737 | ) | $ | **1,237,277** |   | $ | (1,971,343 | ) |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Beneficial conversion feature on preferred      stock                                                              |                            | **-**           |                          |   | (23,699,816 | ) |   | **-** |   |   | (23,699,816 | ) |
|                                                                                                               |                            | ****            |                          |   |  |   |   | ** ** |  |  |   |   |
| Dividends on preferred stock                                                                                       |                            | **(14,297**     | **)**                         |   | (14,672 | ) |   | **(28,594** | **)** |   | (29,531 | ) |
|                                                                                                               |                            |                 |                          |   |  |   |   | ** ** |  |  |    |   |
| Net income (loss) attributable      to common shareholders                                                         | **$**                           | **351,661**     |                          | $      | (25,129,225 | ) | **$** | **1,208,683** |  | $ | (25,700,690 | ) |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                                                                |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                              | **$**                           | **0.01**        |                          | $      | (6.67 | ) | **$** | **0.04** |  | $ | (6.82 | ) |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                            | **$**                           | **0.01**        |                          | $      | (6.67 | ) | **$** | **0.04** |  | $ | (6.82 | ) |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Weighted average      number of common shares:                                                                     |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                              |                            | **27,187,428**  |                          |   | 3,769,995 |   | ** ** | **27,186,490** |  |   | 3,767,110 |   |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                            |                            | **27,690,626**  |                          |   | 3,769,995 |   | ** ** | **27,869,997** |  |   | 3,767,110 |   |
|                                                                                                               |                            |            |                          |   |   |   |   |   |   |   |   |   |

----

|                                                                                                    | **Six Months Ended June 30,** |
|---------------------------------------------------------------------------------------------------------|-------------------------------|
|                                                                                                         | **2007**                      |  | 2006 |
| **OPERATING ACTIVITIES**                                                                                |                          | **(Unaudited)** |  |  | (Unaudited) |   |
| Net income (loss)                                                                                       |                          | **1,237,277** |   | $ | (1,971,343 | ) |
| Adjustments to reconcile net income (loss) to net cash      provided by (used in) operating activities: |                          |  |   |   |  |   |
| Share-based compensation                                                                                |                          | **371,830** |   |   | 271,897 |   |
| Depreciation and amortization                                                                           |                          | **828,201** |   |   | 624,495 |   |
| Amortization of debt discount                                                                           |                          | **7,050** |   |   | 145,279 |   |
| (Gain) on settlement of liabilities                                                                     |                          | **(54,790** | **)** |   | - |   |
| Change in assets and liabilities                                                                        |                          |  |   |   |  |   |
| (Increase) decrease in assets:                                                                          |                          |  |   |   |  |   |
| Cash segregated in compliance with federal      regulations                                             |                          | **19,541,383** |   |   | (29,711,922 | ) |
| Receivables from brokers, dealers and clearing organizations                                            |                          | **27,945,130** |   |   | 3,240,538 |   |
| Receivables from customers and non-customers                                                            |                          | **13,908,362** |   |   | 28,632,260 |   |
| Other assets                                                                                            |                          | **(725,828** | ) |   | 729,328 |   |
| Increase (decrease) in liabilities:                                                                     |                          |  |   |   |  |   |
| Payables to brokers, dealers and clearing organizations                                                 |                          | **661,537** |   |   | (46,806 | ) |
| Payables to customers and non-customers                                                                 |                          | **(49,508,354** | ) |   | (3,729,068 | ) |
| Accounts payable and accrued expenses                                                                   |                          | **358,294** |   |   | (335,126 | ) |
| Income tax liability                                                                                    |                          | **956,146** |  |   | **-** |   |
|                                                                                                    |                          |  |   |   |  |   |
| Net cash provided by (used      in) operating activities                                                |                          | **15,526,238** |  |   | (2,150,468 | )  |
|                                                                                                    |                          |  |   |   |  |   |
| **INVESTING ACTIVITIES**                                                                                |                          |  |   |   |  |   |
| Net cash paid in acquisition                                                                            |                          | **-** |   |   | (14,964,813 | ) |
| Purchase of property and equipment                                                                      |                          | **(593,966** | ) |   | (90,175 | ) |
| Capitalization of software development costs                                                            |                          | **(280,474 ** | **)** |   | **-** |   |
|                                                                                                    |                          |  |   |   |  |   |
| Net cash used in investing activities                                                                   |                          | **(874,440** | **)**  |   | (15,054,988 | ) |
|                                                                                                    |                          |  |   |   |  |   |
| **FINANCING ACTIVITIES**                                                                                |                          |  |   |   |  |   |
| Proceeds from issuance of preferred stock,      net of fees                                             |                          | **-** |   |   | 32,494,407 |   |
| Proceeds from exercise of stock options and warrants                                                    |                          | **9,750** |   |   | 30,000 |   |
| Proceeds from convertible note payable      to related parties                                          |                          | **-** |   |   | 300,000 |   |
| Payment of convertible note payable to related parties                                                  |                          | **(166,667** | ) |   | (300,000 | ) |
| Net payments on line of credit                                                                          |                          | **(17,334,000** | ) |   | (10,684,038 | ) |
| Proceeds from issuance of note payable to related parties                                               |                          | **-** |   |   | 100,000 |   |
| Payment of note payable to      related parties                                                         |                          | **-** |  |   | (100,000 | )  |
|                                                                                                    |                          |  |   |   |  |   |
| Net cash (used in) provided      by financing activities                                                |                          | **(17,490,917** | **)** |   | **21,840,369** |   |
|                                                                                                    |                          |  |   |   |  |   |
| Net increase (decrease) in cash and cash      equivalents                                               |                          | **(2,839,119** | ) |   | 4,634,913 |   |
| Cash and cash equivalents at beginning of      period                                                   |                          | **5,733,813** |  |   | **23,399** |   |
| Cash and cash equivalents at end of period                                                              | **$**                         | **2,894,694** |   | $ | 4,658,312 |   |
|                                                                                                    |                          |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information:                                                       |                          |   |   |   |   |   |
| Cash paid for interest                                                                                  | **$**                         | **3,672,726** |   | $ | - |   |
|                                                                                                    |                          |   |   |   |   |   |
| Cash paid for income taxes                                                                              | **$**                         | **-** |   | $ | - |   |
|                                                                                                    |                          |   |   |   |   |   |
| Supplemental Disclosure of Non-Cash Information:                                                        |                          |   |   |   |   |   |
| Preferred stock dividends accrued                                                                       | **$**                         | **28,594** |   | $ | 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                                                              |                          | **-** |   |   | 22,500 |   |
| Common stock issued for conversion of preferred      stock                                              |                          | **-** |   |   | 10,000 |   |

----

| • | Securities and Exchange Commission as a broker-dealer              |
|--------|--------------------------------------------------------------------|
| • | National Association of Securities Dealers      as a broker-dealer |
| • | Securities Investor Protection Corporation                         |
| • | National Futures Association as a futures commission      merchant |
| • | The Depository Trust Company                                       |
| • | National Securities Clearing Corporation                           |
| • | The Options Clearing Corporation                                   |
| • | NASDAQ Stock Market                                                |
| • | Chicago Stock Exchange                                             |
| • | Boston Options Exchange                                            |
| • | Boston Stock Exchange                                              |
| • | International Securities Exchange                                  |
| • | National Stock Exchange                                            |
| • | NYSE Arca Options                                                  |
| • | NYSE Arca Equities                                                 |

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

----

|                                               |
|-----------------------------------------------|
|                                          | For Three Months Ended June 30, |   | For Six Months Ended June 30, |
|                                               | 2007 |   | 2006 |   | 2007 |   | 2006 |
| Weighted average shares outstanding - Basic   | 27,187,428 |   | 3,769,995 |   | 27,186,490 |   | 3,767,110 |
| Dilutive stock options                        | 14,105 |   | - |   | 21,477 |   | - |
| Dilutive warrants                             | 489,093 |   | - |   | 662,030 |   | - |
| Weighted average shares outstanding - Diluted | 27,690,626 |   | 3,769,995 |   | 27,869,997 |   | 3,767,110 |
|                                               |

|                      |
|----------------------|
| Preferred      Stock |   | December 31, 2006 |   | Issued |   | Converted |   | June 30, 2007 |
| 9% Cumulative        |   | 2,000 |   | - |   | - |   | 2,000 |
| Series A             |   | 12,063 |   | - |   | - |   | 12,063 |
| Series B             |   | 9,520 |   | - |   | - |   | 9,520 |
| Series C             |   | 37,960 |   | - |   | - |   | 37,960 |
| Series E             |   | - |   | - |   | - |   | - |
| Series      2002A    |   | 2,000 |   | - |   | - |   | 2,000 |
| Total                |   | 63,543 |   | - |   | - |   | 63,543 |
|                      |

----

----

|                                            |
|--------------------------------------------|
|                                       |   | For Three Months Ended June 30, |   | For Six Months Ended June 30, |   |
| Revenues                                   |   |   | 2007 |   |   | 2006 |  |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   | $ | 13,114,039 |   | $ | 9,637,040 |   | $ | 24,904,604 |   | $ | 10,311,091 |   |
| Software Services                          |   |   | 144,512 |   |   | 1,650 |   |   | 250,017 |   |   | 3,370 |   |
| Other      Services                        |   |   | - |   |   | 37,354 |   |   | 9,934 |   |   | 49,722 |   |
| Total                                      |   | $ | 13,258,551 |   | $ | 9,676,044 |   | $ | 25,164,555 |   | $ | 10,364,183 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                    |   |   | 2007 |   |   | 2006 |  |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   | $ | 11,078,989 |   | $ | 9,140,102 |   | $ | 20,741,158 |   | $ | 9,737,317 |   |
| Software Services                          |   |   | 572,574 |   |   | 392,075 |   |   | 1,005,627 |   |   | 766,861 |   |
| Other      Services                        |   |   | 707,267 |   |   | 1,405,504 |   |   | 1,181,833 |   |   | 1,635,251 |   |
| Total                                      |   | $ | 12,358,830 |   | $ | 10,937,681 |   | $ | 22,928,618 |   | $ | 12,139,429 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income (Loss) Before Income Taxes |   |   | 2007 |   |   | 2006 |  |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   | $ | 2,036,141 |   | $ | 496,937 |   | $ | 4,163,446 |   | $ | 573,776 |   |
| Software Services                          |   |   | (428,062 | ) |   | (390,425 | ) |   | (755,610 | ) |   | (763,491 | ) |
| Other      Services                        |   |   | (726,045 | ) |   | (1,521,249 | ) |   | (1,214,413 | ) |   | (1,781,628 | ) |
| Total                                      |   | $ | 882,034 |   | $ | (1,414,737 | ) | $ | 2,193,423 |   | $ | (1,971,343 | ) |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and Amortization         |   |   | 2007 |   |   | 2006 |  |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   | $ | 81,746 |   | $ | 118,547 |   | $ | 158,278 |   | $ | 125,254 |   |
| Software Services                          |   |   | 75,444 |   |   | 63,602 |   |   | 143,319 |   |   | 125,744 |   |
| Other      Services                        |   |   | 292,975 |   |   | 336,631 |   |   | 526,604 |   |   | 373,496 |   |
| Total                                      |   | $ | 450,165 |   | $ | 518,780 |   | $ | 828,201 |   | $ | 624,494 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      Expenditures                  |   |   | 2007 |   |   | 2006 |  |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   | $ | 39,205 |   | $ | 89,944 |   | $ | 715,120 |   | $ | 90,175 |   |
| Software Services                          |   |   | - |   |   | - |   |   | 159,320 |   |   | - |   |
| Other      Services                        |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                                      |   | $ | 39,205 |   | $ | 89,944 |   | $ | 874,440 |   | $ | 90,175 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   | June 30, |   |   | December 31, |   |
| Total      Assets                          |   |   |   |   |   |   |   |   | 2007 |  |   | 2006 |   |
| Investment/Brokerage Services              |   |   |   |   |   |   |   | $ | 229,786,153 |   | $ | 293,499,829 |   |
| Software Services                          |   |   |   |   |   |   |   |   | 451,021 |   |   | 399,587 |   |
| Other      Services                        |   |   |   |   |   |   |   |   | 1,020,158 |   |   | 819,845 |   |
| Total                                      |   |   |   |   |   |   |   | $ | 231,257,332 |   | $ | 294,719,261 |   |
|                                            |

----

| • | The 1997 Stock Option Plan ("1997 Plan");                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------|
| • | The Incentive Stock Option Plan; ("ISO Plan");                                                                      |
| • | The 1999 Stock Bonus Plan ("1999 Plan");                                                                            |
| • | The 2000 Stock Option Plan ("2000 Plan"); and                                                                       |
| • | The 2002 Stock Option Plan ("2002 Plan"      and, collectively with the other plans listed above, the "Old Plans"). |

|   |                                                   |   |
|--------|---------------------------------------------------|--------|
|   | Employee      Stock Option and       Warrant Plan |   | Authorized |   | Outstanding |   | Available |   |
|   | 2005 Long-Term Incentive Plan                     |   | 1,826,588 |   | 268,888 |   | 1,557,700 |   |
|   | 2006      Warrant Incentive Plan                  |   | 3,500,000 |   | 2,741,000 |   | 759,000 |   |
|   | Total                                             |   | 5,326,588 |   | 3,009,888 |   | 2,316,700 |   |
|   |                                                   |   |

----

|   |                                           |  |                                                   |  |        |                                                |  |                                                                                    |   |        |                                   |   |
|--------|-------------------------------------------|--|---------------------------------------------------|--|--------|------------------------------------------------|--|------------------------------------------------------------------------------------|---|--------|-----------------------------------|--------|
|   | 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, 2006              |  | 296,826                                      |  | $      | 2.13                                           |  | 2.67                                                                               |   | $      | 151,552                           |   |
|   | Granted                                   |  | -                                            |  |        | -                                              |  | -                                                                                  |   |        | 0                                 |   |
|   | Exercised                                 |  | (5,938)                                           |  |        | 1.59                                           |  | (0                                                                                 | ) |        | 313                               |   |
|   | Forfeited                                 |  | (22,000)                                          |  |   | 2.47                                           |  | -                                                                                  |   |   | -                                 |   |
|   | Balance at June      30, 2007             |  | 268,888                                      |  | $      | 2.09                                           |  | 2.18                                                                               |   | $      | 65,664                            |   |
|   | Options exercisable at June      30, 2007 |  | 192,576                                      |  | $      | 1.93                                           |  | 1.28                                                                               |   | $      | 65,114                            |   |
|   |                                           |  |                                                   |  |        |                                                |  |                                                                                    |   |        |                                   |   |

|   |                                            |  |                                              |  |        |                                                |  |                                                                                    |        |        |                                   |   |
|--------|--------------------------------------------|--|----------------------------------------------|--|--------|------------------------------------------------|--|------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|   | Employee      Warrants                     |  | Employee         Warrants        Outstanding |  |   | Weighted         Average        Exercise Price |  | Weighted         Average         Remaining         Contract Term        (in years) |        |   | Aggregate         Intrinsic Value |   |
|   | Balance at December 31, 2006               |  | 2,999,000                               |  | $      | 2.60                                           |  | 4.55                                                                               |        | $      | -                                 |   |
|   | Granted                                    |  | 0                                       |  |        | -                                              |  | -                                                                                  |        |        | -                                 |   |
|   | Exercised                                  |  | (0)                                          |  |        | -                                              |  | -                                                                                  |   |        | -                                 |   |
|   | Forfeited                                  |  | (258,000)                                    |  |   | 2.73                                           |  | -                                                                                  |        |   | -                                 |   |
|   | Balance at June      30, 2007              |  | 2,741,000                               |  | $      | 2.55                                           |  | 4.06                                                                               |        | $      | -                                 |   |
|   | Warrants exercisable at      June 30, 2007 |  | 400,000                                 |  | $      | 2.80                                           |  | 3.89                                                                               |        | $      | -                                 |   |
|   |                                            |  |                                              |  |        |                                                |  |                                                                                    |        |        |                                   |   |

----

|                                |
|--------------------------------|
|                           | As of June 30, 2007 |  | As of December 31, 2006 |
|                           |   | Receivables |   |   | Payables |  |   | Receivables |   |   | Payables |
| Stock borrowed/loaned          | $ | 18,997,575 |   | $ | - |   | $ | 48,026,075 |   | $ | - |
| Fails to deliver/receive       |   | 1,130,779 |   |   | - |   |   | 2,899,866 |   |   | - |
| Clearing organizations         |   | 6,938,797 |   |   | - |   |   | 4,139,840 |   |   | 400 |
| Commissions receivable/payable |   | 384,990 |   |   | 1,572,799 |   |   | 331,490 |   |   | 910,861 |
| Total                          | $ | 27,452,141 |   | $ | 1,572,799 |   | $ | 55,397,271 |   | $ | 911,261 |
|                                |

|                                |
|--------------------------------|
|                           |   |   |   |   | Capital Requirement |  | Excess Net Capital |
|                           |   |   | Net Capital |   |   | NASD |   |   | CFTC |  |   | NASD |   |   | CFTC |
| Terra Nova Financial,      LLC |   | $ | 15,056,615 |   | $ | 1,500,000 |   | $ | 500,000 |   | $ | 13,556,615 |   | $ | 14,556,615 |
| Market Wise Securities, LLC    |   | $ | 16,976 |   | $ | 5,000 |   |   | - |   | $ | 11,976 |   |   | - |
| RushTrade Securities, Inc.     |   | $ | 83,854 |   | $ | 5,000 |   | $ | 45,000 |   | $ | 78,854 |   | $ | 38,854 |
|                           |   | $ | 15,157,445 |   | $ | 1,510,000 |   | $ | 545,000 |   | $ | 13,647,445 |   | $ | 14,595,469 |
|                                |

----

----

----

|                              | (unaudited)                     |
|-----------------------------------|---------------------------------|
| **Results of Operations**         | For Three Months Ended June 30, |  | For Six Months Ended June 30, |
| **(in thousands)**                |                            | 2007 |  |   | 2006 |  |   | $ Change |  | % Change |  |   | 2007 |  |   | 2006 |  |   | $ Change |  | % Change |
| **Total revenues**                | $                               | 13,259 |   | $ | 9,676 |   | $ | 3,583 |   | 37.0% |   | $ | 25,165 |   | $ | 10,364 |   | $ | 14,800 |   | 142.8% |
| ****                              |                            |  |   |   |  |   |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |
| **Total operating      expenses** |                            | 12,359 |   |   | 10,938 |   |   | 1,421 |   | 13.0% |   |   | 22,929 |   |   | 12,139 |   |   | 10,789 |   | 88.9% |
| ****                              |                            |  |   |   |  |   |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |
| **Interest expense**              |                            | 18 |   |   | 153 |   |   | (135 | ) | -88.4% |   |   | 43 |   |   | 196 |   |   | (154) |   | -78.3% |
| ****                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income tax provision**          |                            | 516 |  |   | - |  |   | 516 |  | 100.0% |  |   | 956 |  |   | - |  |   | 956 |  | 100.0% |
| ****                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net income (loss)**             | $                               | 366 |   | $ | (1,415 | ) | $ | 1,781 |   | 125.9% |   | $ | 1,237 |   | $ | (1,971 | ) | $ | 3,209 |   | 162.8% |
|                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| • | Recognized as the Emerging Broker of the Year      as part of the Emerging manager Summit Award, presented by Opal Financial      Group and Focus Point Media                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | March 31st marked the completion of a co-location      facility in Chicago which better services the needs of the overall enterprise      infrastructure and reduced the reliance on third party providers                                                                                                                  |
| • | Second quarter revenues ended June 30, 2007      up $1.35 million, up 11% over first quarter in 2007                                                                                                                                                                                                                        |
| • | Renewed commitment to the Rush Group Technology      trading software with the addition of Cristian Doloc, Terra Nova's new Chief      Technology Officer, including plans for enhanced trading system functionality      and features and well as improved infrastructure to accommodate increased      transactional flow |
| • | Obtained shareholder approval on the board      of director's recommendation of a one-for-ten reverse stock split                                                                                                                                                                                                           |
| • | Rush Group's users continue to increase by      5% in Q2 and up 25% YTD as of the end of Q2 2007                                                                                                                                                                                                                            |

----

----

----

----

----

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 202,367,262 |       | 1,116,271   |       | 110,350                              |       | 203,593,883 |   |
|   | 99.40%      |       | 0.55%       |       | 0.05%                                |       | 100%        |   |

|   |                     |             |
|--------|---------------------|------------------|
|   |                | **For Election** |  | **Withhold** |   |
|   |                | **Number**       | ** ** | **Percentage** |  | **Number** |  | **Percentage** |   |
|   | Gayle C. Tinsley    | 203,360,255      |  | 99.89% |  | 233,628 |  | 0.11% |   |
|   | Stephen B. Watson   | 203,360,255      |  | 99.89% |  | 233,628 |  | 0.11% |   |
|   | Bernay      Box     | 203,371,355      |  | 99.89% |  | 222,528 |  | 0.11% |   |
|   | Charles B. Brewer   | 203,360,255      |  | 99.89% |  | 233,628 |  | 0.11% |   |
|   | Murrey Wanstrath    | 203,371,455      |  | 99.89% |  | 222,428 |  | 0.11% |   |
|   | Russell N. Crawford | 203,360,155      |  | 99.89% |  | 233,728 |  | 0.11% |   |
|   |                     |             |

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 203,271,166 |            | 220,517     |            | 102,200                              |            | 203,593,883 |   |
|   | 99.84%      |            | 0.11%       |            | 0.05%                                |            | 100%        |   |

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 177,189,077 |            | 1,380,977   |            | 6,462,018                            |            | 185,032,072 |   |
|   | 95.76%      |            | 0.75%       |            | 3.49%                                |            | 100%        |   |

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 183,779,491 |            | 1,152,381   |            | 100,200                              |            | 185,032,072 |   |
|   | 99.32%      |            | 0.62%       |            | 0.06%                                |            | 100%        |   |

----

| 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 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 |
| Exhibit 32.2 | Certification of 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 |
|         |                                                                                                                                                                                             |
|         |                                                                                                                                                                                             |

----

|   | August 14, 2007 | /s/ Michael G. Nolan    |
|--------|-----------------|-------------------------|
|   | Date            | Michael G. Nolan        |
|   |            | Chief Executive Officer |
|   |            |                    |
|   |            |                    |
|   | August 14, 2007 | /s/ M. Patricia Kane    |
|   | Date            | M. Patricia Kane        |
|   |            | Chief Financial Officer |
|   |            |                    |
|   |            |                    |

----