| ****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****                  UNAUDITED      FINANCIAL INFORMATION** | **Page No.** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|

| **Item 1.**                                                                                | **Unaudited Consolidated Financial Statements:**                                                           | ** ** |
|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------|
| ****                                                                                       | ** **                                                                                                 | ** ** |
| ****                                                                                       | **Consolidated Balance Sheets      at September 30, 2007 and December 31, 2006**                           | **3**      |
| ****                                                                                       | ** **                                                                                                 | ** ** |
| ****                                                                                       | **Consolidated Statements      of Operations for Three and Nine Months Ended September 30, 2007 and 2006** | **4**      |
| ****                                                                                       | ** **                                                                                                 | ** ** |
| ****                                                                                       | **Consolidated Statements of      Cash Flows for Nine Months Ended September 30, 2007 and 2006**           | **5**      |
| ****                                                                                       | ** **                                                                                                 | ** ** |
| ****                                                                                       | **Notes to Consolidated Financial      Statements**                                                        | **7**      |
| ****                                                                                       | ** **                                                                                                 | ** ** |
| **Item 2.**                                                                                | **Management Discussion and Analysis      of Financial Condition and Results of Operations**               | **15**     |
| ****                                                                                       | ** **                                                                                                 | ** ** |
| **Item 3.**                                                                                | **Controls and Procedures**                                                                                | **22**     |
| ** **                                                                                 | ** **                                                                                                 |       |
| **PART II**                                                                                | **OTHER INFORMATION**                                                                                      | ** ** |
|                                                                                       |                                                                                                       |       |
| **Item 1.**                                                                                | **Legal Proceedings**                                                                                      | **23**     |
|                                                                                       |                                                                                                       | ** ** |
| **Item 2.**                                                                                | **Unregistered Sales of Equity      Securities and Use of Proceeds**                                       | **23**     |
|                                                                                       |                                                                                                       | ** ** |
| **Item 3.**                                                                                | **Defaults in Senior Securities**                                                                          | **23**     |
|                                                                                       |                                                                                                       | ** ** |
| **Item 4.**                                                                                | **Submission of Matters to      a Vote of Security Holders**                                               | **23**     |
|                                                                                       |                                                                                                       | ** ** |
| **Item 5.**                                                                                | **Other Information**                                                                                      | **24**     |
|                                                                                       |                                                                                                       | ** ** |
| **Item 6.**                                                                                | **Exhibits**                                                                                               | **24**     |
|                                                                                       |                                                                                                       | ** ** |
| **Signatures**                                                                             | **25**                                                                                                     |
| **Exhibit 31.1 Certification of      Chief Executive Officer**                             | **26**                                                                                                     |
| **Exhibit 31.2 Certification of      Chief Financial Officer**                             | **27**                                                                                                     |
| **Exhibit 32.1 Certification of      Chief Executive Officer and Chief Financial Officer** | **28**                                                                                                     |

----

|                                                                                                                                                                                                                                                                                                                                   |   | **September 30,** |   |   | **December 31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                             |   | **2007**          |   |   | **2006**         |   |
|                                                                                                                                                                                                                                                                                                                                   |   | **(Unaudited)**   |   |   |             |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                              | **$**  | **10,020,495**    |        | $      | 5,733,813        |   |
| Cash segregated in compliance with federal      regulations                                                                                                                                                                                                                                                                            |   | **153,920,040**   |   |   | 156,751,025      |   |
| Receivables from brokers, dealers and clearing      organizations                                                                                                                                                                                                                                                                      |   | **23,207,584**    |   |   | 55,397,271       |   |
| Receivables from customers and non-customers                                                                                                                                                                                                                                                                                           |   | **42,539,911**    |   |   | 56,969,549       |   |
| Property and equipment, net                                                                                                                                                                                                                                                                                                            |   | **920,311**       |   |   | 614,746          |   |
| Capitalized software development costs, net                                                                                                                                                                                                                                                                                            |   | **1,765,484**     |   |   | 1,754,114        |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                 |   | **5,690,440**     |   |   | 6,221,871        |   |
| Goodwill                                                                                                                                                                                                                                                                                                                               |   | **9,583,480**     |   |   | 9,583,480        |   |
| Other assets                                                                                                                                                                                                                                                                                                                           |   | **2,023,976**     |   |   | 1,693,392        |   |
|           Total      assets                                                                                                                                                                                                                                                          | **$**  | **249,671,721**   |        | $      | 294,719,261      |   |
|                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |             |   |
| **LIABILITIES AND SHAREHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                               |   |              |   |   |             |   |
| Line of credit                                                                                                                                                                                                                                                                                                                         | **$**  | **850,000**       |        | $      | 18,625,000       |   |
| Payables to brokers, dealers and clearing organizations                                                                                                                                                                                                                                                                                |   | **1,215,234**     |   |   | 911,261          |   |
| Payables to customers and non-customers                                                                                                                                                                                                                                                                                                |   | **206,427,360**   |   |   | 238,622,993      |   |
| Accounts payable and accrued expenses (including      $59,484 and $49,611 of accrued           interest due to related parties at September 30,      2007 and December 31, 2006, respectively)                                                                                                                     |   | **5,750,836**     |   |   | 5,074,011        |   |
| Accrued preferred stock dividends                                                                                                                                                                                                                                                                                                      |   | **385,351**       |   |   | 258,520          |   |
| Income tax liability                                                                                                                                                                                                                                                                                                                   |   | **1,311,986**     |   |   | -                |   |
| Convertible notes payable                                                                                                                                                                                                                                                                                                              |   | **-**             |   |   | 300,000          |   |
| Convertible bonds payable (net of unamortized      debt discount of $901 and $8,853 at           September 30, 2007 and December 31, 2006, respectively)                                                                                                                                                           |   | **329,099**       |   |   | 321,147          |   |
|           Total      liabilities                                                                                                                                                                                                                                                     |   | **216,269,866**   |   |   | 264,112,932      |   |
|                                                                                                                                                                                                                                                                                                                                   |   |                   |   |   |                  |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                          |   |                   |   |   |                  |   |
|                                                                                                                                                                                                                                                                                                                                   |   |                   |   |   |                  |   |
| Shareholders' equity                                                                                                                                                                                                                                                                                                                   |   |                   |   |   |                  |   |
| Preferred stock - cumulative; $10 par value;      38,792 shares authorized;           14,063 shares issued and outstanding at September      30, 2007 and December 31, 2006;           liquidation value of $210,242 at September 30, 2007                                                     |   | **140,630**       |   |   | 140,630          |   |
| Preferred stock - convertible cumulative; $10      par value; 835,000 shares authorized;           49,480 shares issued and outstanding at September      30, 2007 and December 31, 2006;           liquidation value of $953,340 at September 30, 2007                                        |   | **494,800**       |   |   | 494,800          |   |
| Common stock - $0.01 par value, 150,000,000      and 800,000,000 shares authorized at           September 30, 2007 and December 31, 2006, respectively;      27,203,851 and 27,184,294 shares           issued and outstanding at Septermber 30, 2007 and      December 31, 2006, respectively |   | **272,039**       |   |   | 271,843          |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                             |   | **52,484,268**    |   |   | 52,062,685       |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                    |   | **(19,989,882**   | **)**  |   | (22,363,629      | )      |
|           Total      shareholders' equity                                                                                                                                                                                                                                            |   | **33,401,855**    |   |   | 30,606,329       |   |
|           Total      liabilities and shareholders' equity                                                                                                                                                                                                                            | **$**  | **249,671,721**   |   | $      | 294,719,261      |   |
|                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |             |   |
|                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |             |   |

----

|                                                                                      | **Three Months Ended September 30,** |                 | **Nine Months Ended September 30,** |   |
|-------------------------------------------------------------------------------------------|--------------------------------------|-----------------|-------------------------------------|--------|
|                                                                                      |                                 | **2007**        |                                |   | 2006 |   |   | **2007** |  |   | 2006 |   |
| **REVENUES**                                                                              | ****                                 | **(Unaudited)** |                                     |        | **(Unaudited)** |  |  | **(Unaudited)** |  |  | **(Unaudited)** | **** |
| Commissions and fees                                                                      | $                                    | **8,911,938**   |                                | $      | 9,260,109 |   | **$** | **26,147,575** |   | $ | 17,469,673 |   |
| Interest income                                                                           |                                 | **3,589,902**   |                                |   | 3,145,909 |   |   | **11,028,185** |   |   | 5,175,018 |   |
| Software fees                                                                             |                                 | **188,387**     |                                |   | 12,844 |   |   | **436,173** |   |   | 75,184 |   |
| Other income                                                                              |                                 | **179,586**     |                                |   | 82,248 |   |   | **422,435** |   |   | 145,418 |   |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
|           Total      revenues           |                                 | **12,869,813**  |                                |   | 12,501,110 |   |   | **38,034,368** |   |   | 22,865,293 |   |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
| **OPERATING EXPENSES**                                                                    |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
| Commissions, execution      and exchange fees                                             |                                 | **4,122,876**   |                                |   | 4,537,342 |   |   | **10,508,900** |   |   | 8,707,736 |   |
| Employee compensation                                                                     |                                 | **2,932,536**   |                                |   | 3,347,391 |   |   | **8,185,310** |   |   | 6,681,121 |   |
| Quotations and market      data                                                           |                                 | **1,302,709**   |                                |   | 1,623,964 |   |   | **4,170,600** |   |   | 2,896,762 |   |
| Interest expense on brokerage accounts                                                    |                                 | **1,409,944**   |                                |   | 1,725,161 |   |   | **5,082,670** |   |   | 2,640,807 |   |
| Advertising and promotional                                                               |                                 | **95,341**      |                                |   | 225,820 |   |   | **585,991** |   |   | 411,744 |   |
| Professional fees                                                                         |                                 | **547,415**     |                                |   | 567,758 |   |   | **1,529,592** |   |   | 943,032 |   |
| Communications and      information technology                                            |                                 | **160,631**     |                                |   | 211,679 |   |   | **586,568** |   |   | 472,853 |   |
| Depreciation and amortization                                                             |                                 | **320,202**     |                                |   | 214,804 |   |   | **1,148,402** |   |   | 839,298 |   |
| Other general and      administrative expenses                                            |                                 | **400,119**     |                                |   | 948,960 |   |   | **2,422,360** |   |   | 1,948,956 |   |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
|           Total      operating expenses |                                 | **11,291,773**  |                                |   | 13,402,879 |   |   | **34,220,393** |   |   | 25,542,309 |   |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
| Operating income (loss)                                                                   |                                 | **1,578,040**   |                                |   | (901,769 | ) |   | **3,813,975** |   |   | (2,677,016 | ) |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
| Interest expense                                                                          |                                 | **12,921**      |                                |   | 26,018 |   |   | **55,435** |   |   | 222,114 |   |
|                                                                                      |                                 |                 |                                |   |  |   |   |  |   |   |  |   |
| Income (loss) before income taxes                                                         |                                 | **1,565,119**   |                                |   | (927,787 | ) |   | **3,758,540** |   |   | (2,899,130 | ) |
|                                                                                      |                                 |                 |                                |   |   |   |   |  |   |   |  |   |
| Income tax provision                                                                      |                                 | **428,647**     |                                |   | - |   |   | **1,384,794** |   |   | - |   |
|                                                                                      |                                 |                 |                                |   |   |   |   |  |   |   |   |   |
| Net income (loss)                                                                         | **$**                                | **1,136,472**   |                                | $      | (927,787 | ) | **$** | **2,373,746** |   | $ | (2,899,130 | ) |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Beneficial conversion feature on preferred      stock                                     |                                 | **-**           |                                |   | - |   |   | - |   |   | (23,699,816 | ) |
|                                                                                      |                                 |            |                                |   |  |   |   |  |   |   |  |   |
| Dividends on preferred stock                                                              |                                 | **(98,237**     | **)**                               |   | (8,471 | ) |   | **(126,832** | **)** |   | (43,854 | ) |
|                                                                                      |                                 |                 |                                |   |   |   |   | **** |   |   |   |   |
| Net income (loss) attributable to common      shareholders                                | **$**                                | **1,038,235**   |                                     | $      | (936,258 | ) | **$** | **2,246,914** |  | $ | (26,642,800 | ) |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                                       |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Basic                                                                                     | **$**                                | **0.04**        | ** **                          | $      | (0.25 | ) | **$** | **0.08** | ** ** | $ | (7.06 | ) |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                   | **$**                                | **0.04**        | ** **                          | $      | (0.25 | ) | **$** | **0.08** | ** ** | $ | (7.06 | ) |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares:                                                 |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Basic                                                                                     |                                 | **27,200,113**  |                                |   | 3,789,657 |  |  | **27,191,127** |  |  | 3,774,940 |   |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                   |                                 | **27,655,917**  |                                |   | 3,789,657 |  |  | **27,916,322** |  |  | 3,774,940 |   |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |
|                                                                                      |                                 |            |                                |   |   |   |   |   |   |   |   |   |

----

|                                                                                          | **Nine Months Ended Sepember 30,** |
|-----------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                               | **2007**                           |  | 2006 |
| **OPERATING ACTIVITIES**                                                                      |                               | **(Unaudited)** |  |  |   |   |
| Net income (loss)                                                                             | **$**                              | **2,373,746** |   | $ | (2,899,130 | ) |
| Adjustments to reconcile net income (loss)      to net cash provided by operating activities: |                               |   |   |   |   |   |
| Share-based compensation                                                                      |                               | **534,362** |   |   | 679,801 |   |
| Depreciation and amortization                                                                 |                               | **1,148,402** |   |   | 839,299 |   |
| Amortization of debt discount                                                                 |                               | **7,952** |   |   | 147,063 |   |
| (Gain) on settlement of liabilities                                                           |                               | **(88,702** | **)** |   | - |   |
| Change in assets and liabilities                                                              |                               |  |   |   |  |   |
| (Increase) decrease in assets:                                                                |                               |  |   |   |  |   |
| Cash segregated in compliance      with federal regulations                                   |                               | **2,830,985** |   |   | (45,041,720 | ) |
| Receivables from brokers, dealers and clearing      organizations                             |                               | **32,189,687** |   |   | (7,760,189 | ) |
| Receivables from customers      and non-customers                                             |                               | **14,429,638** |   |   | 19,523,286 |   |
| Other assets                                                                                  |                               | **(330,584** | **)** |   | 955,082 |   |
| Increase (decrease) in liabilities:                                                           |                               |  |   |   |  |   |
| Payables to brokers, dealers and clearing organizations                                       |                               | **303,973** |   |   | (90,346 | ) |
| Payables to customers and      non-customers                                                  |                               | **(32,195,633** | **)** |   | 38,312,738 | ) |
| Other                                                                                         |                               | **-** |   |   | 250,682 |   |
| Accounts payable and accrued      expenses                                                    |                               | **765,527** |   |   | (889,779 | ) |
| Income tax liability                                                                          |                               | **1,311,986** |  |   | (693,776 | ) |
|                                                                                          |                               |  |   |   |  |   |
| Net cash provided by operating activities                                                     |                               | **23,281,339** |  |   | 3,333,011 |   |
|                                                                                          |                               | **** |   |   |  |   |
| **INVESTING ACTIVITIES**                                                                      |                               | **** |   |   |  |   |
| Net cash paid in acquisition                                                                  |                               | **-** |   |   | (14,964,813 | ) |
| Purchase of property and equipment                                                            |                               | **(621,353** | **)** |   | (115,491 | ) |
| Capitalization of software      development costs                                             |                               | **(312,554** | **)** |   | - |   |
|                                                                                          |                               |  |   |   |  |   |
| Net cash used in investing      activities                                                    |                               | **(933,907** | **)**  |   | (15,080,304 | ) |
|                                                                                          |                               |  |   |   |  |   |
| **FINANCING ACTIVITIES**                                                                      |                               |  |   |   |  |   |
| Proceeds from issuance of preferred stock,      net of fees                                   |                               | **-** |   |   | 32,494,407 |   |
| Proceeds from      exercise of stock options and warrants                                     |                               | **14,250** |   |   | 30,000 |   |
| Proceeds from convertible notes payable to      related party                                 |                               | **-** |   |   | 300,000 |   |
| Payment of convertible notes      payable to related parties                                  |                               | **(300,000** | **)** |   | (300,000 | ) |
| Net payments on line of credit                                                                |                               | **(17,775,000** | **)** |   | (6,824,425 | ) |
| Proceeds from issuance of      notes payable to related party                                 |                               | **-** |   |   | 100,000 |   |
| Payment of notes payable to related party                                                     |                               | **-** |  |   | (100,000 | )  |
|                                                                                          |                               |  |   |   |  |   |
| Net cash (used in) provided by financing activities                                           |                               | **(18,060,750** | **)** |   | 25,699,982 |   |
|                                                                                          |                               |  |   |   |  |   |
| Net increase in cash and cash equivalents                                                     |                               | **4,286,682** |   |   | 13,952,689 |   |
| Cash and cash equivalents      at beginning of period                                         |                               | **5,733,813** |  |   | 23,399 |   |
| Cash and cash equivalents at end of period                                                    | **$**                              | **10,020,495** |   | $ | 13,976,088 |   |
|                                                                                          |                               |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information:                                             |                               |   |   |   |   |   |
| Cash paid for interest                                                                        | **$**                              | **5,082,670** |   | $ | 2,640,806 |   |
|                                                                                          |                               |   |   |   |   |   |
| Cash paid for income taxes                                                                    | **$**                              | **72,807** |   | $ | - |   |
|                                                                                          |                               |   |   |   |   |   |

----

|                                                                                             | **Nine Months Ended Sepember 30,** |
|--------------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                                  | **2007**                           |  | 2006 |
| Supplemental Disclosure of Non-Cash Information:                                                 |                               |   |   |   |   |   |
| Preferred stock dividends accrued                                                                | **$**                              | **126,832** |   | $ | 43,854 |   |
| Fair value of warrants issued in connection      with debt financing recorded as a debt discount |                               | **-** |   |   | 141,714 |   |
| Common stock issued as payment for accrued interest and      dividends                           |                               | **-** |   |   | 14,628 |   |
| Conversion of bonds to common      stock                                                         |                               | **-** |   |   | 15,000 |   |
| Liabilities accrued for intangible assets to      be paid in common stock                        |                               | **-** |   |   | 22,500 |   |
| Common stock issued for conversion of preferred      stock                                       |                               | **-** |   |   | 25,000 |   |

----

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

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

----

|                                               |
|-----------------------------------------------|
|                                          | For Three Months Ended         September 30, |   | For Nine Months Ended         September 30, |
|                                               | **2007** | ** ** | **2006** | ** ** | **2007** | ** ** | **2006** |
| Weighted average shares outstanding - Basic   | 27,200,113 |   | 3,789,657 |   | 27,191,127 |   | 3,774,940 |
| Dilutive warrants                             | 235,804 |   | - |   | 505,195 |   | - |
| Dilutive convertible bonds                    | 220,000 |   | - |   | 220,000 |   | - |
| Weighted average shares outstanding - Diluted | 27,655,917 |   | 3,789,657 |   | 27,916,322 |   | 3,774,940 |
|                                               |

----

|                      |
|----------------------|
| Preferred      Stock |   | December 31, 2006 |   | Issued |   | Converted |   | September 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      2002A    |   | 2,000 |   | - |   | - |   | 2,000 |
| Total                |   | 63,543 |   | - |   | - |   | 63,543 |
|                      |

----

----

|                                            |
|--------------------------------------------|
|                                       |   | For Three Months Ended September 30, |   | For Nine Months Ended September 30, |   |
| Revenues                                   |   |   | **2007** |   |   | **2006** |  |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   | $ | 12,675,608 |   | $ | 12,525,961 |   | $ | 37,580,213 |   | $ | 22,837,052 |   |
| Software Services                          |   |   | 188,387 |   |   | 2,210 |   |   | 438,404 |   |   | 5,580 |   |
| Other      Services                        |   |   | 5,818 |   |   | (27,061 | ) |   | 15,751 |   |   | 22,661 |   |
| Total                                      |   | $ | 12,869,813 |   | $ | 12,501,110 |   | $ | 38,034,368 |   | $ | 22,865,293 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                    |   |   | **2007** |   |   | **2006** |  |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   | $ | 10,245,622 |   | $ | 11,640,793 |   | $ | 31,590,628 |   | $ | 21,378,110 |   |
| Software Services                          |   |   | 495,019 |   |   | 460,313 |   |   | 1,500,646 |   |   | 1,227,174 |   |
| Other      Services                        |   |   | 551,132 |   |   | 1,301,773 |   |   | 1,129,119 |   |   | 2,937,025 |   |
| Total                                      |   | $ | 11,291,773 |   | $ | 13,402,879 |   | $ | 34,220,393 |   | $ | 25,542,309 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income (Loss) Before Income Taxes |   |   | **2007** |   |   | **2006** |  |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   | $ | 2,429,986 |   | $ | 885,168 |   | $ | 5,989,585 |   | $ | 1,458,942 |   |
| Software Services                          |   |   | (306,632 | ) |   | (458,103 | ) |   | (1,062,242 | ) |   | (1,221,594 | ) |
| Other      Services                        |   |   | (558,235 | ) |   | (1,354,852 | ) |   | (1,168,803 | ) |   | (3,136,478 | ) |
| Total                                      |   | $ | 1,565,119 |   | $ | (927,787 | ) | $ | 3,758,540 |   | $ | (2,899,130 | ) |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and Amortization         |   |   | **2007** |   |   | **2006** |  |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   | $ | 84,688 |   | $ | 122,095 |   | $ | 846,812 |   | $ | 247,349 |   |
| Software Services                          |   |   | 75,235 |   |   | 67,067 |   |   | 218,554 |   |   | 192,811 |   |
| Other      Services                        |   |   | 160,279 |   |   | 25,642 |   |   | 83,036 |   |   | 399,138 |   |
| Total                                      |   | $ | 320,202 |   | $ | 214,804 |   | $ | 1,148,402 |   | $ | 839,298 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      Expenditures                  |   |   | **2007** |   |   | **2006** |  |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   | $ | 27,387 |   | $ | 25,316 |   | $ | 621,353 |   | $ | 115,491 |   |
| Software Services                          |   |   | 32,080 |   |   | - |   |   | 312,554 |   |   | - |   |
| Other      Services                        |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                                      |   | $ | 59,467 |   | $ | 25,316 |   | $ | 933,907 |   | $ | 115,491 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   | September 30, |   |   | December 31, |   |
| Total      Assets                          |   |   |   |   |   |   |   |   | **2007** |  |   | **2006** |   |
| Investment/Brokerage Services              |   |   |   |   |   |   |   | $ | 248,282,272 |   | $ | 293,499,829 |   |
| Software Services                          |   |   |   |   |   |   |   |   | 399,092 |   |   | 399,587 |   |
| Other      Services                        |   |   |   |   |   |   |   |   | 990,357 |   |   | 819,845 |   |
| Total                                      |   |   |   |   |   |   |   | $ | 249,671,721 |   | $ | 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                     |   | 1,791,376 |   | 664,300 |   | 1,127,076 |   |
|   | 2006      Warrant Incentive Plan                  |   | 3,500,000 |   | 2,734,500 |   | 765,500 |   |
|   | Total                                             |   | 5,291,376 |   | 3,398,800 |   | 1,892,576 |   |
|   |                                                   |   |

|   |                                                |  |                                                   |  |        |                                                |  |                                                                                    |        |        |                                   |   |
|--------|------------------------------------------------|--|---------------------------------------------------|--|--------|------------------------------------------------|--|------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|   | 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                                           |  | 2.2                                                                                |        | $      | -                                 |   |
|   | Granted                                        |  | 486,300                                      |  |        | 1.65                                           |  | 4.9                                                                                |        |        | -                                 |   |
|   | Exercised                                      |  | (38,937)                                          |  |        | 1.52                                           |  | -                                                                                  |   |        | 59,249                            |   |
|   | Forfeited                                      |  | (79,889)                                          |  |   | 2.10                                           |  | -                                                                                  |        |   | -                                 |   |
|   | Balance at September      30, 2007             |  | 664,300                                      |  | $      | 1.82                                           |  | 4.4                                                                                |        | $      | -                                 |   |
|   | Options exercisable at September      30, 2007 |  | 115,500                                      |  | $      | 2.17                                           |  | 2.2                                                                                |        | $      | -                                 |   |
|   |                                                |  |                                                   |  |        |                                                |  |                                                                                    |        |        |                                   |   |

----

|   |                                                 |  |                                              |  |        |                                                |  |                                                                                    |        |        |                                   |   |
|--------|-------------------------------------------------|--|----------------------------------------------|--|--------|------------------------------------------------|--|------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|   | 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                               |  | $      | 2.56                                           |  | 4.4                                                                                |        | $      | -                                 |   |
|   | Granted                                         |  | 0                                       |  |        | -                                              |  | -                                                                                  |        |        | -                                 |   |
|   | Exercised                                       |  | 0                                       |  |        | -                                              |  | -                                                                                  |   |        | -                                 |   |
|   | Forfeited                                       |  | (264,500)                                    |  |   | 2.59                                           |  | 2.0                                                                                |        |   | -                                 |   |
|   | Balance at September      30, 2007              |  | 2,734,500                               |  | $      | 2.33                                           |  | 3.8                                                                                |        | $      | -                                 |   |
|   | Warrants exercisable at      September 30, 2007 |  | 983,625                                 |  | $      | 2.63                                           |  | 3.8                                                                                |        | $      | -                                 |   |
|   |                                                 |  |                                              |  |        |                                                |  |                                                                                    |        |        |                                   |   |

|                                          |
|------------------------------------------|
|                                     | As of September 30, 2007 |  | As of December 31, 2006 |
|                                     |   | **Receivables** |   |   | **Payables** |  |   | **Receivables** |   |   | **Payables** |
| Securities borrowed/loaned               | $ | 19,639,950 |   | $ | - |   | $ | 48,026,075 |   | $ | - |
| Clearing deposits & receivables/payables |   | 3,567,634 |   |   | 1,215,234 |   |   | 7,371,196 |   |   | 911,261 |
|                                     |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    | $ | 23,207,584 |   | $ | 1,215,234 |   | $ | 55,397,271 |   | $ | 911,261 |
|                                          |

----

|                                |
|--------------------------------|
|                           |   |   |   |   | Capital Requirement |  | Excess Net Capital |
|                           |   |   | **Net Capital** |   |   | **FINRA** |   |   | **CFTC** |  |   | **FINRA** |   |   | **CFTC** |
| Terra Nova Financial,      LLC |   | $ | 16,595,689 |   | $ | 1,500,000 |   | $ | 500,000 |   | $ | 15,095,689 |   | $ | 16,095,689 |
| Market Wise Securities, LLC    |   |   | 51,454 |   |   | 5,000 |   |   | - |   |   | 46,454 |   |   | - |
| RushTrade Securities, Inc.     |   |   | 97,286 |   |   | 5,000 |   |   | 45,000 |   |   | 92,286 |   |   | 52,286 |
|                           |   | $ | 16,744,429 |   | $ | 1,510,000 |   | $ | 545,000 |   | $ | 15,234,429 |   | $ | 16,147,975 |
|                                |

----

----

----

|                              | (unaudited)                                  |
|-----------------------------------|----------------------------------------------|
| **Results of Operations**         | For Three Months Ended        Septermber 30, |  | For Nine Months Ended        September 30, |
| **(in thousands)**                |                                         | 2007 |  |   | 2006 |  |   | $ Change |  | % Change |  |   | 2007 |  |   | 2006 |  |   | $ Change |  | % Change |
| **Total revenues**                | $                                            | 12,870 |   | $ | $12,501 |   | $ | $369 |   | 2.9% |   | $ | 38,034 |   | $ | 22,865 |   | $ | $15,169 |   | 66.3% |
| ****                              |                                         |  |   |   |  |   |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |
| **Total operating      expenses** |                                         | 11,292 |   |   | 13,403 |   |   | (2,111 | ) | -15.8% |   |   | 34,220 |   |   | 25,542 |   |   | 8,678 |   | 34.0% |
| ****                              |                                         |  |   |   |  |   |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |
| **Interest expense**              |                                         | 13 |   |   | 26 |   |   | (13 | ) | -50.3% |   |   | 55 |   |   | 222 |   |   | (167) |   | -75.0% |
| ****                              |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income tax provision**          |                                         | 429 |  |   | - |  |   | 429 |  | 100.0% |  |   | 1,385 |  |   | - |  |   | 1,385 |  | 100.0% |
| ****                              |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net income (loss)**             | $                                            | 1,136 |   | $ | (928 | ) | $ | 2,064 |   | 222.5% |   | $ | 2,374 |   | $ | (2,899 | ) | $ | 5,273 |   | 181.9% |
|                              |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| • | Implementation of a common stock buy-back program      on September 28, 2007 authorizing the use of up to $5 million to repurchase      Terra Nova Financial Group, Inc outstanding common stock |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Substantial completion of the IT infrastructure      relocation from Dallas, TX to Chicago, IL maximizing operational efficiencies                                                               |
| • | Creation of Romanian subsidiary staffed by      development personnel enhancing the Company's proprietary trading and clearing      systems                                                      |
| • | Increased trading volume 80% in the third quarter      2007 and 130% year-to-date under the RushGroup Technologies, Inc. wholly-owned      subsidiary                                            |
| • | Completed a one-for-ten reverse stock split      on August 1, 2007                                                                                                                               |
| • | Nine months ended September 30, 2007 revenue      per employee of approximately $405 thousand, based on 94 full time employees                                                                   |
| • | Increase in customer assets to $939 million      at the end of the third quarter 2007, up 21% from the comparable period      in 2006                                                            |

----

----

----

----

----

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 202,062,151 |       | 307,003     |       | 26,200                               |       | 202,395,354 |   |
|   | 99.83%      |       | 0.15%       |       | 0.02%                                |       | 100%        |   |

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 201,997,816 |       | 299,538     |       | 98,000                               |       | 202,395,354 |   |
|   | 99.80%      |       | 0.15%       |       | 0.05%                                |       | 100%        |   |

----

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 191,464,294 |       | 650,546     |       | 10,280,514                           |       | 202,395,354 |   |
|   | 94.60%      |       | 0.32%       |       | 5.08%                                |       | 100%        |   |

|   | **For**     | ** ** | **Against** | ** ** | **Abstain/        Broker Non-Votes** | ** ** | **Total**   |   |
|--------|-------------|------------|-------------|------------|--------------------------------------|------------|-------------|--------|
|   | 185,852,070 |       | 6,444,384   |       | 10,098,900                           |       | 202,395,354 |   |
|   | 91.83%      |       | 3.18%       |       | 4.99%                                |       | 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 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 |
|         |                                                                                                                                                                                                                               |

----

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

----