Capstone Financial 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document And Entity Information
Entity Registrant Name	CAPSTONE FINANCIAL GROUP, INC.
Entity Central Index Key	1,558,432
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		94,364,648
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

UNAUDITED CONDENSED STATEMENTS

UNAUDITED CONDENSED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Financial instruments owned, at fair value	$ 14,154,841	$ 28,838,301
Cash	1,560,422	$ 12,685
Accounts receivable	$ 120,000
Note receivable		$ 603,952
Prepaid expense	$ 20,927	86,209
Furniture and equipment, net	7,539	6,500
Deposit	85,000	65,000
Total assets	15,948,729	29,612,647
LIABILITIES
Accrued expenses	57,820	48,547
Accrued interest payable - related party	12,954	4,431
Short term advances payable - related party	85,131	94,306
Note payable - related party	553,552	1,203,552
Deferred Revenue	16,660	116,662
Put and Call option liability	847,576	$ 9,973,684
Income taxes payable	201,607
Deferred tax liability	5,098,070	$ 6,742,723
Total liabilities	6,873,370	18,183,905
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 2,000,000,000 shares authorized; 94,364,648 and 94,564,648 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	94,365	94,565
Additional paid in capital	958,422	1,176,633
Retained earnings (deficit)	8,022,572	10,157,544
Total stockholders' equity	9,075,359	11,428,742
Total liabilities and stockholders' equity	$ 15,948,729	$ 29,612,647

UNAUDITED CONDENSED STATEMENTS3

UNAUDITED CONDENSED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	2,000,000,000	2,000,000,000
Common stock shares issued	94,364,648	94,564,648
Common stock shares outstanding	94,364,648	94,564,648

UNAUDITED CONDENSED STATEMENTS4

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investment Income:
Services income	$ 50,001		$ 100,002
Interest - related party	7,014	$ 10,188	14,460	$ 18,695
Total revenue	57,015	10,188	114,462	18,695
Operating expenses:
Payroll expense	48,158	45,821	91,545	122,155
Professional fees	340,596	102,960	601,594	185,522
General and administrative	151,617	186,876	308,325	365,936
Interest expense - related party	3,468	7,008	8,524	11,831
Total operating expenses	543,839	342,665	1,009,988	685,444
Realized and Unrealized Gain (Loss) on Financial Instruments
Realized gain (loss) on financial instruments, net	(2,286,616)	$ 13,584	(826,456)	13,584
Unrealized (loss) on investment securities, net	(395,876)		(1,856,036)	(2,919)
Gain (loss) on financial instruments, net	(2,682,492)	$ 13,584	(2,682,492)	10,665
Net (loss) before income taxes	(3,169,316)	$ (318,893)	(3,578,018)	$ (656,084)
Income tax (benefit)	(1,443,046)		(1,443,046)
Net (loss)	$ (1,726,270)	$ (318,893)	$ (2,134,972)	$ (656,084)
Net (loss) per share - basic and diluted	$ (0.02)	$ 0	$ (0.02)	$ (0.01)
Weighted average shares outstanding - basic and diluted	94,553,659	93,758,721	94,559,123	93,499,507

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,134,972)	$ (656,084)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Sale (purchase) of financial investments, net	2,754,860	(2,919)
Net change in unrealized gain on financial investments, net	1,856,036	2,919
Net change in realized gain on financial securities, net	826,456	$ (13,584)
Depreciation	1,000
(Increase) decrease in assets:
Note receivable	400,000
Accrued interest receivable - related party	(14,459)	$ (18,695)
Prepaid expense	65,282	14,956
Deposits	$ (20,000)	(75,800)
Increase (decrease) in liabilities:
Accounts payable		(12,973)
Accrued expenses	$ 9,273	(11,032)
Accrued interest payable - related party	8,523	$ 11,831
Deferred revenue	(100,002)
Net repayments on notes payable - related party	(650,000)	$ (151,937)
Net repayments on short term advances - related party	(9,175)
Income taxes payable	201,607
Deferred tax liability	(1,644,653)
Net cash provided by (used in) operating activities	1,549,776	$ (899,734)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture and equipment	(2,039)
Net cash used in investing activities	$ (2,039)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net of offering costs		$ 909,200
Net cash provided by financing activities		909,200
Increase in cash	$ 1,547,737	$ 9,466
Cash at beginning of period	12,685
Cash at end of period	1,560,422	$ 9,466
Supplemental Disclosure of Cash Flow Information:
Noncash purchase of treasury stock	$ 218,411

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2015
Organization And Description Of Business
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Organization The business focus of Capstone Financial Group, Inc. (the "Company") is to invest in equity securities of other companies. The Company seeks to discover, unlock and grow value in privately-held or illiquid companies, including through the exercise of friendly influence at a company in support of operational improvements and strategic initiatives. In some cases, the Company might be one of the largest shareholders of the other company. The Company seeks to work closely and constructively with the management and boards of the other companies. While the Company does not manage the day-to-day operations of these companies, the Company seeks to maintain a thorough understanding of how they operate and evaluate their performance and prospects on an ongoing basis. The Company may also seek to actively trade in its strategic investment positions and/or enter into private securities transactions with regard to those positions, to capitalize on price fluctuations and realize profits or minimize losses. The Company was incorporated on July 10, 2012 under the laws of the State of Nevada, as Creative App Solutions, Inc. On August 23, 2013, the Company amended its articles of incorporation and changed its name to Capstone Financial Group, Inc. Through December 31, 2012, the Company had not commenced significant operations and, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915, the Company was considered a development stage company. During the year ended December 31, 2013, the Company exited the development stage. Effective in 2014, the Company transitioned its business plan to its current business focus. At June 30, 2015 the Company’s investments are entirely focused in one entity, Twinlab Consolidated Holdings, Inc. (“Twinlab”). Management believes that it will be able to liquidate a sufficient portion of its investment and/or raise additional capital to avoid and/or satisfy its call obligations as and when they become due and/or are exercised. However, no assurance can be given that market conditions in the future will continue to allow the Company to sell its investments in sufficient quantities to enable full warrant exercises or to raise additional capital to do so (see Note 6).

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
Basis Of Presentation
BASIS OF PRESENTATION	NOTE 2 – BASIS OF PRESENTATION The accompanying unaudited condensed financial statements of have been prepared in accordance with financial reporting conventions of the investment company industry and United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in the Company’s Annual Report on Form 10-K filed with the SEC on April 30, 2015. The unaudited condensed financial statements contain all normal recurring accruals and adjustments that in the opinion of management, are necessary to present fairly the financial position of the Company at June 30, 2015, the results of the Company’s operations for the three months and six months periods ended June 30, 2015 and the Company’s cash flows for the six months ended June 30, 2015. It should be understood that accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three months and six months periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year or any future interim periods.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS The Company has evaluated the recent accounting pronouncements through the date of this filing, and management does not expect adoption of such pronouncements to have an impact on the Company’s financial statements.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 4 – FAIR VALUE MEASUREMENTS GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1 • Level 2 • Level 3: The Company’s financial instruments are valued by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The valuation methodology for each investment type and discussion of key unobservable inputs is described below. Common Stocks Generally, when the Company invests in common stocks that are traded on the NASDAQ Markets or over-the-counter markets (such as the OTCBB, OTCQB or OTC Pink marketplaces), such common stocks are valued at the last traded price. If there is no trade on a measurement date, the Company will typically value the common stock at the closing bid price. However, in certain circumstances, the closing trading price is not considered to be a fairindication ofthe value for which the Company can sell the common stock. In such cases, the common stock must be analyzed to determine what exit price the Company would receive when liquidating the position. Investments in non-marketable common stocks at June 30, 2015 and December 31, 2014 were valued based on subsequent transactions with unrelated third parties. These positions are classified as Level 3 securities by the Company. Derivative Financial Instruments Derivative financial instruments include call and put options and warrants at June 30, 2015 and December 31, 2014. Derivatives are accounted for at fair value with changes in fair value reported in operations. The significant unobservable inputs used in the fair value measurement of the Company’s derivative financial instruments include the underlying common stock, duration, volatility and discount rate, which are used in the Black-Scholes and Monte Carlo valuation models. Changes to any of those inputs in isolation would result in fluctuations in the fair value measurement.

MARKET, CREDIT AND LIQUIDITY RI

MARKET, CREDIT AND LIQUIDITY RISK	6 Months Ended
	Jun. 30, 2015
Risks and Uncertainties [Abstract]
MARKET, CREDIT AND LIQUIDITY RISK	NOTE 5 – MARKET, CREDIT AND LIQUIDITY RISK Market risk is the potential loss the Company may incur as a result of changes in the market or fair value of a particular financial instrument. Risks arise in options and warrant contracts from changes in the market or fair value of their underlying financial instruments. Credit risk is the potential loss the Company may incur as a result of the failure of a counterparty or an issuer to make payments according to the terms of a contract. Credit risk can arise from investment activities in financially distressed issuers. To manage this risk, the Company may seek to diversify its investment portfolio with respect to specific credits, sectors and asset classes. The Company is also subject to market concentration risk since a significant portion of its investment portfolio has similar characteristics, and is therefore affected similarly by changes in economic conditions. Investments of the Company trade in relatively thin markets and throughout the year, depending upon market conditions, may be considered illiquid. As a result, the market values can be more volatile and difficult to determine relative to other securities. In addition, if the Company is required to liquidate all or a portion of its portfolio quickly, it may realize significantly less than the value at which it previously recorded its financial instruments.

INVESTMENTS, AT FAIR VALUE

INVESTMENTS, AT FAIR VALUE	6 Months Ended
	Jun. 30, 2015
Investments, All Other Investments [Abstract]
INVESTMENTS, AT FAIR VALUE	NOTE 6 – INVESTMENTS, AT FAIR VALUE Financial instruments, net are comprised of the following at June 30, 2015. Cost Estimated Fair Value ASSETS Common Stock $ 504,315 $ 10,649,197 2014 Call Options 450 1,138,860 Series B Warrants — 2,366,784 $ 504,765 $ 14,154,841 LIABILITIES Contingent Call Options $ — $ (225,599 ) Third-Party Call Options — (621,977 ) $ — $ (847,576 ) The Company records the sales of securities on a trade date basis and at June 30, 2015 had a receivable of $120,000 related to two such sales, both of which were fully settled in July 2015. Financial instruments, net are comprised of the following at December 31, 2014. Cost Estimated Fair Value ASSETS Common Stocks $ 6,212 $ 8,018,621 2014 Call Options 2,492 6,644,680 Series A Warrants — 9,947,368 Series B Warrants — 4,227,632 $ 8,704 $ 28,838,301 LIABILITIES Warrant Put Option $ — $ (9,973,684 ) During the first quarter of 2014, the Company purchased shares in a company (other than Twinlab) traded on the OTC Markets for a total of $2,919. The Company currently categorizes these holdings as Level 3 assets. As of June 30, 2015, this investment is carried at $0 value under management’s valuation guidelines. In August 2014, the Company purchased 10,987,500 split-adjusted shares of common stock of Twinlab in private transactions from 25 shareholders for total consideration of $3,296. In August 2014, the Company purchased options to acquire 8,743,000 outstanding shares of Twinlab’s Common Stock (collectively, the “2014 Call Options”) in a private transaction from 14 stockholders, for total consideration of $2,623. The 2014 Call Options exercise price is $0.0001 per share and the 2014 Call Options expire in August 2015. Such options are immediately exercisable and in February 2015, the Company exercised 7,244,500 of those options. In September 2014, Twinlab issued to the Company a Series A Warrant to purchase up to 52,631,579 shares of Twinlab’s Common Stock at an exercise price of $0.76 per share (the “Series A Warrant”) and a Series B Warrant to purchase up to 22,368,421 shares of Twinlab’s Common Stock at an exercise price of $0.76 per share (the “Series B Warrant”). Both the Series A Warrant and the Series B Warrant were exercisable from October 2014 through October 2017. Twinlab and the Company also entered into a Common Stock Put Agreement, dated as of September 30, 2014, as amended on December 15, 2014 (the “Put Agreement”). Pursuant to the Put Agreement, if the Company did not exercise the Series A Warrant by February 16, 2015 and thereafter at a rate of no less than 1,461,988 shares of Common Stock (the “Minimum Amount”) per month (the “Minimum Rate”) over the term of the Series A Warrant, Twinlab had the right (subject to certain conditions) to require the Company to exercise the Series A Warrant at the Minimum Rate for the duration of the Series A Warrant. During the six months ended June 30, 2015, the Company sold an aggregate of 3,976,647 units of Twinlab securities to various unrelated third party accredited investors. Each unit consisted of one share of (unrestricted) Twinlab common stock and a detachable call option to purchase from the Company, for $1.00 per share, one (restricted) share of Twinlab common stock. The term of each such call option was three years from the respective unit sale date. Twinlab and the Company also entered into a Compromise Agreement and Release and an Amendment No. 1 to Series B Warrant, each dated as of May 28, 2015, pursuant to which, among other things: (a) the Company surrendered the entire remaining-unexercised portion of the Series A Warrant (51,973,684 warrants) and 4,368,421 of the warrants under the Series B Warrant; (b) the Put Agreement was terminated; (c) the remaining 18,000,000 warrants under the Series B Warrant were deemed divided into four tranches, each with an associated date beyond which it would no longer be exercisable: one tranche for 2,000,000 warrant shares (no longer exercisable after November 30, 2015), one for 4,000,000 warrant shares (no longer exercisable after March 31, 2016), one for 6,000,000 warrant shares (no longer exercisable after July 31, 2016) and another for 6,000,000 warrant shares (no longer exercisable after November 30, 2016); and (d) the Company granted Twinlab three contingent call options, at $0.01 per share, to acquire Twinlab shares from the Company to the extent that upon effective expiration of the second, third and fourth tranches the Company had not exercised the warrants within such tranches (the “Contingent Call Options”). The three Contingent Call Options would be for a number of Twinlab shares equal to 25% of such unexercised warrants (i.e., a maximum of 1,000,000 shares if the Company exercised no warrants from the second tranche, a maximum of 1,500,000 shares if the Company exercised no warrants from the third tranche and a maximum of 1,500,000 shares if the Company exercised no warrants from the fourth tranche). In addition, Twinlab cannot exercise a Contingent Call Option unless it has satisfied such option’s “Liquidity Condition,” namely that for each of the three or four months before the tranche’s effective expiration date Twinlab must have a financial position sufficient to show a 1.15x fixed charge coverage ratio for a certain trailing period, all as defined by Twinlab’s Credit and Security Agreement dated January 22, 2015. Twinlab also agreed in the Compromise Agreement and Release that, given that the Company has identified, and may in the future identify, to Twinlab on a confidential basis persons to whom the Company might sell the Company’s Twinlab shares, Twinlab shall not, without the Company’s prior written consent, privately place Twinlab equity securities to any persons theretofore or thereafter first introduced to Twinlab by the Company; provided that Twinlab may, without the Company’s consent, privately place Twinlab equity securities to such a person at any time after the earlier of (a) the date the entire Series B Warrant has expired and/or been exercised, or (b) the first anniversary of such particular introduction. Fair Value of Financial Instruments The Company's financial instruments recorded at fair value have been categorized based upon a fair value hierarchy. The following fair value hierarchy table presents information about the Company's financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis June 30, 2015 Level 1 Level 2 Level 3 Total Assets Financial instruments, at fair value: Common Stocks $ — $ — $ 10,649,197 $ 10,649,197 2014 Call Options — — 1,138,860 1,138,860 Series B Warrants — — 2,366,784 2,366,784 Total financial instruments, at fair value — — 14,154,841 14,154,841 Total assets held at fair value $ — $ — $ 14,154,841 $ 14,154,841 Liabilities Financial instruments, at fair value: Third-Party Call Options $ — $ — $ 621,977 $ 621,977 Contingent Call Options — — 225,599 225,599 Total liabilities held at fair value $ — $ — $ 847,576 $ 847,576 Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2014 Level 1 Level 2 Level 3 Total Assets Financial instruments, at fair value: Common Stocks $ — $ — $ 8,018,621 $ 8,018,621 2014 Call Options — — 6,644,680 6,644,680 Series A Warrants — — 9,947,368 9,947,368 Series B Warrants — — 4,227,632 4,227,632 Total Financial instruments, at fair value — — 28,838,301 28,838,301 Total assets held at fair value $ — $ — $ 28,838,301 $ 28,838,301 Liabilities Financial instruments, at fair value: Warrant Put Option — — 9,973,684 9,973,684 Total liabilities held at fair value $ — $ — $ 9,973,684 $ 9,973,684 This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs used in valuing certain financial assets and liabilities were unavailable. In situations where there is little, if any, market activity for an asset or liability at the measurement date, the fair value measurement objective remains to measure the financial asset at the price that would be received by the holder of the financial asset (or liability) in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date. The following table presents a summary of changes in the fair value amounts of the financial instruments classified within Level 3 for the three and six months ended June 30, 2015. Common Stock 2014 Call Options Series A Warrants Series B Warrants Put Option Liability Call Option Liability Total Fair value, net, January 1, 2015 $ 8,018,621 $ 6,644,680 $ 9,947,368 $ 4,227,632 $ (9,973,684 ) $ — $ 18,864,617 Total gains (losses) included in earnings: Unrealized gains (losses) 4,045,660 (5,505,820 ) — — — — (1,460,160 ) Fair value, net, March 31, 2015 12,064,281 1,138,860 9,947,368 4,227,632 (9,973,684 ) — 17,404,457 Total gains (losses) included in earnings: Unrealized gains (losses) (1,915,084 ) — — 2,366,784 — (847,576 ) (395,876 ) Realized gains (losses) (9,823,026 ) (4,227,632 ) 9,849,013 — (4,201,645 ) Exercised 500,000 (124,342 ) 124,671 — 500,329 Fair value, net, June 30, 2015 $ 10,649,197 $ 1,138,860 $ — $ 2,366,784 $ — $ (847,576 ) $ 13,307,265

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Income tax benefit for the six months ended June 30, 2015 was $1,443,046 at an effective tax rate of 40.33%, which was greater than the federal statutory rate due to the state income tax expense. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The disclosures regarding the Company's unrecognized tax benefits at December 31, 2014 included in the Company's 2014 Annual Report on Form 10-K continue to be relevant for the periods ended June 30, 2015 as to the Company’s unrecognized tax benefits at June 30, 2015.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
SUBSEQUENT EVENTS	NOTE 8 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were available to be issued. Except as noted below, there are no events which require adjustments to, or disclosure in, the financial statements for the periods ended June 30, 2015. In July 2015, the Company sold 168,420 Twinlab shares to unrelated third parties for $128,000.In August 2015 through the date the financial statements were available to be issued, the Company sold 198,000 Twinlab shares to an unrelated third party for $150,480. In July 2015, the Company made two partial exercises of the Series B Warrant and received 657,895 Twinlab shares in exchange for an aggregate exercise price of $500,000. In July 2015, in exchange for $277,500, the Company acquired a 20% interest in privately-held Western New York real estate companies LC Strategic Realty, LLC and LC Strategic Holdings, LLC, as well as in all other business conducted or to be conducted by the firms’ majority holders to the extent such other business has a primary focus on (a) real estate (subject to the exclusion of certain specified projects), (b) media/entertainment/show business, or (c) endorsements/advertisements/personal appearances/use of likeness/monetization of celebrity.

INVESTMENTS, AT FAIR VALUE (Tab

INVESTMENTS, AT FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2015
Investments At Fair Value Tables
Schedule of Investments in securities and unrealized gains	Investments in securities, net are comprised of the following at June 30, 2015. Cost Estimated Fair Value ASSETS Common Stock $ 504,315 $ 10,649,197 2014 Call Options 450 1,138,860 Series B Warrants - 2,366,784 $ 504,765 $ 14,154,841 LIABILITIES Contingent Call Options $ - $ (225,599) Third-Party Call Options - (621,977) $ - $ (847,576) Investments in securities, net are comprised of the following at December 31, 2014. Cost Estimated Fair Value ASSETS Common Stocks $ 6,212 $ 8,018,621 2014 Call Options 2,492 6,644,680 Series A Warrants − 9,947,368 Series B Warrants − 4,227,632 $ 8,704 $ 28,838,301 LIABILITIES Warrant Put Option $ − $ (9,973,684)
Schedule of Assets and Liabilities measured at Fair Value on a Recurring Basis	The following fair value hierarchy table presents information about the Company's financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis June 30, 2015 Level 1 Level 2 Level 3 Total Assets Financial instruments, at fair value: Common Stocks $ − $ − $ 10,649,197 $ 10,649,197 2014 Call Options − − 1,138,860 1,138,860 Series B Warrants − − 2,366,784 2,366,784 Total financial instruments, at fair value − − 14,154,841 14,154,841 Total assets held at fair value $ − $ − $ 14,154,841 $ 14,154,841 Liabilities Financial instruments, at fair value: Third-Party Call Options $ − $ − $ 621,977 $ 621,977 Contingent Call Options − − 225,599 225,599 Total liabilities held at fair value $ − $ − $ 847,576 $ 847,576 Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2014 Level 1 Level 2 Level 3 Total Assets Financial instruments, at fair value: Common Stocks $ − $ − $ 8,018,621 $ 8,018,621 2014 Call Options − − 6,644,680 6,644,680 Series A Warrants − − 9,947,368 9,947,368 Series B Warrants − − 4,227,632 4,227,632 Total Financial instruments, at fair value − − 28,838,301 28,838,301 Total assets held at fair value $ − $ − $ 28,838,301 $ 28,838,301 Liabilities Financial instruments, at fair value: Warrant Put Option − − 9,973,684 9,973,684 Total liabilities held at fair value $ − $ − $ 9,973,684 $ 9,973,684

INVESTMENTS, AT FAIR VALUE (Det

INVESTMENTS, AT FAIR VALUE (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Unrealized gain on investment securities, net	$ (395,876)		$ (1,856,036)	$ (2,919)
Assets [Member] | Cost [Member]
Unrealized gain on investment securities, net			504,765		$ 8,707
Assets [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			14,154,841		28,838,301
Assets [Member] | Equity [Member] | Cost [Member]
Unrealized gain on investment securities, net			504,315		6,212
Assets [Member] | Equity [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			10,649,197		8,018,621
Assets [Member] | Option [Member] | Cost [Member]
Unrealized gain on investment securities, net			450		2,492
Assets [Member] | Option [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			$ 1,138,860		$ 6,644,680
Assets [Member] | Warrant B [Member] | Cost [Member]
Unrealized gain on investment securities, net
Assets [Member] | Warrant B [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			$ 2,366,784		$ 4,227,632
Assets [Member] | Warrant A [Member] | Cost [Member]
Unrealized gain on investment securities, net
Assets [Member] | Warrant A [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net					$ 9,947,368
Liabilities [Member] | Cost [Member]
Unrealized gain on investment securities, net
Liabilities [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			$ (847,576)
Liabilities [Member] | Contingent Call Options [Member] | Cost [Member]
Unrealized gain on investment securities, net
Liabilities [Member] | Contingent Call Options [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			$ (225,599)
Liabilities [Member] | Third-Party Call Options [Member] | Cost [Member]
Unrealized gain on investment securities, net
Liabilities [Member] | Third-Party Call Options [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net			$ (621,977)
Liabilities [Member] | Warrant Put Option [Member] | Cost [Member]
Unrealized gain on investment securities, net
Liabilities [Member] | Warrant Put Option [Member] | Estimate of Fair Value [Member]
Unrealized gain on investment securities, net					$ (9,973,684)

INVESTMENTS, AT FAIR VALUE (D16

INVESTMENTS, AT FAIR VALUE (Details 2) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Assets [Member]
Total Assets/Liabilities Held at Fair Value	$ 14,154,841	$ 28,838,301
Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Total Assets/Liabilities Held at Fair Value
Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Total Assets/Liabilities Held at Fair Value	$ 14,154,841	$ 28,838,301
Assets [Member] | Equity [Member]
Financial Investment owned at fair value	$ 10,649,197	$ 8,018,621
Assets [Member] | Equity [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Investment owned at fair value
Assets [Member] | Equity [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Investment owned at fair value	$ 10,649,197	$ 8,018,621
Assets [Member] | Option [Member]
Financial Investment owned at fair value	$ 1,138,860	$ 6,644,680
Assets [Member] | Option [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Investment owned at fair value
Assets [Member] | Option [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Investment owned at fair value	$ 1,138,860	$ 6,644,680
Assets [Member] | Warrant A [Member]
Financial Investment owned at fair value		$ 9,947,368
Assets [Member] | Warrant A [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Investment owned at fair value
Assets [Member] | Warrant A [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Investment owned at fair value		$ 9,947,368
Assets [Member] | Warrant B [Member]
Financial Investment owned at fair value	$ 2,366,784	$ 4,227,632
Assets [Member] | Warrant B [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Investment owned at fair value
Assets [Member] | Warrant B [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Investment owned at fair value	$ 2,366,784	$ 4,227,632
Liabilities [Member]
Total Assets/Liabilities Held at Fair Value	$ 847,576	$ 9,973,684
Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Total Assets/Liabilities Held at Fair Value
Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Total Assets/Liabilities Held at Fair Value	$ 847,576	$ 9,973,684