VBI Vaccines 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 14, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'PAULSON CAPITAL CORP	'
Document Type	'10-Q	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	6,093,258
Amendment Flag	'false	'
Entity Central Index Key	'0000704159	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Well-known Seasoned Issuer	'No	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash	$1,776,834	$337,136
Receivable from clearing organization	1,037,948	2,252,965
Notes and other receivables, net of allowances for doubtful accounts of $882,168 and $847,796	1,374,752	210,536
Income taxes receivable	67,406	43,834
Trading and investment securities owned, at fair value	9,405,514	8,500,488
Underwriter warrants, at fair value	1,069,000	1,548,000
Prepaid and deferred expenses	384,969	437,440
Furniture and equipment, at cost, net of accumulated depreciation and amortization of $70,055 and $155,519	94,856	9,644
Total Assets	15,211,279	13,340,043
Liabilities and Shareholders' Equity	'	'
Accounts payable and accrued liabilities	381,650	302,252
Payable to clearing organization	344	74,062
Compensation, employee benefits and payroll taxes	597,882	84,885
Deferred revenue	'	59,523
Advance from related party	1,521,781	'
Total Liabilities	2,501,657	520,722
Commitments and Contingencies	'	'
Shareholders' Equity	'	'
Preferred stock, no par value; 500,000 shares authorized; none issued	'	'
Common stock, no par value; 10,000,000 shares authorized; shares issued and outstanding: 5,766,985 and 5,766,985	2,163,711	2,163,711
Retained earnings	9,088,322	10,655,610
Total Shareholders' Equity	11,252,033	12,819,321
Noncontrolling interest in consolidated entities	1,457,589	'
Total Equity	12,709,622	12,819,321
Total Liabilities and Shareholders' Equity	$15,211,279	$13,340,043

Consolidated_Balance_Sheets_Un1

Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Allowances for doubtful accounts (in Dollars)	$882,168	$847,796
Accumulated depreciation and amortization (in Dollars)	$70,055	$155,519
Preferred stock, shares authorized (in Shares)	500,000	500,000
Preferred stock, shares issued (in Shares)	0	0
Preferred stock, par value (in Dollars per share)	$0	$0
Common stock, par value (in Dollars per share)	$0	$0
Common stock, shares authorized (in Shares)	10,000,000	10,000,000
Common stock, shares issued (in Shares)	5,766,985	5,766,985
Common stock, shares outstanding (in Shares)	5,766,985	5,766,985

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues	'	'	'	'
Commissions	$804,500	$67,963	$1,438,806	$3,724,988
Corporate Finance	390,868	22,199	741,983	69,663
Investment income (loss)	-62,857	141,205	-1,081,558	-438,416
Trading income (loss)	2,276,144	-132,220	2,581,922	810,625
Interest and dividends	8,594	399,941	23,129	560,656
Loss on asset disposition	'	'	-9,256	-702
Gain (loss) on sale of assets	'	-23,471	'	1,596,185
Other	-9,258	44,753	59,760	139,738
	3,407,991	520,370	3,754,786	6,462,737
Expenses	'	'	'	'
Commissions and salaries	1,471,401	278,687	2,988,720	4,367,736
Underwriting expenses	83,299	4,500	152,168	42,214
Rent and utilities	89,087	39,885	218,873	254,892
Communication and quotation services	30,084	48,713	86,710	265,953
Professional fees	200,665	160,577	813,446	590,507
Travel and entertainment	17,425	3,897	38,884	49,724
Advertising and promotion	509	185	509	9,308
Settlement expense	50,000	73,917	206,000	73,917
Clearing expenses	18,845	10,329	56,119	174,525
Bad debt expense	21,628	'	45,717	232,129
Depreciation and amortization	7,140	406	10,577	4,963
Licenses, taxes and insurance	152,765	170,249	509,482	436,593
Interest	493	'	22,274	'
Other	57,413	57,556	215,007	307,364
	2,200,754	848,901	5,364,486	6,809,825
Income (loss) before income taxes	1,207,237	-328,531	-1,609,700	-347,088
Income tax expense:	'	'	'	'
Current	0	0	0	0
Deferred	0	0	0	0
	0	0	0	0
Net income (loss)	1,207,237	-328,531	-1,609,700	-347,088
Loss attributable to non-controlling interests	-40,239	'	-42,412	'
Net income (loss) attributable to Paulson Capital Corp. common stockholders	$1,247,476	($328,531)	($1,567,288)	($347,088)
Basic net income (loss) per share (in Dollars per share)	$0.22	($0.06)	($0.27)	($0.06)
Diluted net income (loss) per share (in Dollars per share)	$0.07	($0.06)	($0.27)	($0.06)
Shares used in per share calculations:	'	'	'	'
Basic (in Shares)	5,766,985	5,766,985	5,766,985	5,767,288
Diluted (in Shares)	19,019,390	5,766,985	5,766,985	5,767,288

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($1,609,700)	($347,088)
Adjustments to reconcile net loss to net cash flows provided by operating activities:	'	'
Receipt of underwriter warrants	-141,000	'
Unrealized depreciation/expiration of underwriter warrants	620,000	51,000
Receipt of securities from investing activities	'	-439,000
Depreciation and amortization	10,577	4,963
Bad debt expense	45,717	232,129
Loss on asset disposition	9,256	702
Gain on sale of assets	'	-1,596,185
Change in assets and liabilities:	'	'
Receivables from/payable to clearing organization, net	1,141,299	1,773,896
Notes and other receivables	-1,209,933	-429,081
Income taxes receivable	-23,572	-34,250
Trading and investment securities owned	-905,026	677,001
Prepaid and deferred expenses	52,471	57,098
Deferred revenue	-59,523	-72,924
Accounts payable, accrued liabilities and compensation payables	614,176	-312,654
Trading securities sold, not yet purchased	'	-356,705
Net cash used in operating activities	-1,455,258	-791,098
Cash flows from investing activities:	'	'
Additions to furniture and equipment	-105,044	-800
Proceeds from sale of fixed assets	'	250
Proceeds from sale of assets	'	1,245,375
Net cash provided by (used in) investing activities	-105,044	1,244,825
Cash flows from financing activities:	'	'
Proceeds from related party advance	1,500,000	'
Proceeds from issuance of preferred stock in consolidated entity	1,500,000	'
Dividends paid to common shareholders	'	-288,349
Payments to retire common stock	'	-1,250
Net cash provided by (used in) financing activities	3,000,000	-289,599
Increase in cash	1,439,698	164,128
Cash:	'	'
Beginning of period	337,136	292,002
End of period	1,776,834	456,130
Supplemental cash flow information:	'	'
Cash (paid) received during the period for income taxes, net	7,000	-26,000
Receivable from sale of assets	'	$384,400

Note_1_Basis_of_Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Basis of Presentation and Significant Accounting Policies [Text Block]	'
	Note 1. Basis of Presentation
	The financial information for Paulson Capital Corp. and its majority-owned subsidiary, Paulson Investment Company, and its wholly owned subsidiary Paulson Capital Properties, LLC, included herein as of September 30, 2013 and December 31, 2012 and for the three- and nine-month periods ended September 30, 2013 and 2012 is unaudited; however, such information reflects all adjustments, consisting only of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 31, 2012 is derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

Note_2_Earnings_Per_Share

Note 2 - Earnings Per Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	Note 2. Earnings Per Share
	We computed basic earnings per common share using net income (loss) available to common stockholders and the weighted average number of common shares outstanding during the period. We computed diluted earnings per common share using net income available to common stockholders and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period.
	Potentially dilutive common shares from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options. Potentially dilutive common shares are determined by applying the if-converted method.
	In the third quarter of 2013 we included 13,235,547 contingently issuable common shares in the calculation of diluted earnings per common share that were held in escrow pending the results of our 2013 Annual Shareholders Meeting and subsequent closing of a financing transaction. The contingently issuable common shares are described below in Note 8 where under a proposed financing the Company will issue the Onvestors a Unit consisting of (i) shares of Common Stock; (ii) shares of Series A Preferred Stock; (iii) a Class A Warrant; and (iv) a Class B Warrant.
	Following is a reconciliation of our shares used for our basic net income (loss) per share and our diluted net income (loss) per share:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Shares used for basic net income (loss) per share		5,766,985		5,766,985		5,766,985		5,767,288
	Effect of dilutive stock options		16,858		—		—		—
	Effect of contingently issuable common shares		13,235,547		—		—		—
	Shares used for diluted net income (loss) per share		19,019,390		5,766,985		5,766,985		5,767,288
	Stock options not included in diluted net income (loss) per share because their effect would have been antidilutive		—		218,500		216,000		312,250

Note_3_Fair_Value_Measurements

Note 3 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Disclosures [Text Block]	'
	Note 3. Fair Value Measurements
	Various inputs are used in determining the fair value of our assets and liabilities carried at fair value and are summarized into three broad categories:
		●	Level 1 – unadjusted quoted prices in active markets for identical securities;
		●	Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.; and
		●	Level 3 – significant unobservable inputs, including our own assumptions in determining fair value.
	The inputs or methodology used for valuing securities is not necessarily an indication of the risk associated with investing in those securities.
	Following are the disclosures related to our financial assets and liabilities (in thousands):
			30-Sep-13					31-Dec-12
			Fair Value			Input Level		Fair Value			Input Level
	Trading and investment securities owned:
	Corporate equities, marketable		$	5,016		Level 1		$	3,463		Level 1
	Corporate equities, not readily marketable			4,332		Level 3			4,878		Level 3
	Corporate options/warrants, marketable			58		Level 1			159		Level 1
	Underwriter warrants			1,069		Level 3			1,548		Level 3
	Trading securities sold, not yet purchased:
	Corporate equities, marketable			-		Level 1			-		Level 1
	Following is a summary of activity related to our Level 3 financial assets and liabilities (in thousands):
			Underwriter Warrants				Not Readily Marketable Investment Securities
	Balance, December 31, 2012		$	1,548			$	4,878
	Fair value of underwriter warrants received included as a component of corporate finance income			141				-
	Investment in privately-held company			-				100
	Net unrealized loss, included as a component of investment income related to securities held			(506	)			(646	)
	Underwriter warrants exercised or expired included as a component of investment income			(114	)			-
	Balance, September 30, 2013		$	1,069			$	4,332
			Underwriter Warrants				Not Readily Marketable Investment Securities
	Balance, December 31, 2011		$	1,395			$	3,857
	Fair value of underwriter warrants received included as a component of corporate finance income			-				-
	Investment in privately-held company			-				439
	Net unrealized gain (loss), included as a component of investment loss related to securities held			(51	)			(380	)
	Balance, September 30, 2012		$	1,344			$	3,916
	Valuation of Marketable Trading and Investment Securities Owned
	The fair value of marketable trading and investment securities owned is determined based on quoted market prices. Securities traded on a national exchange are stated at the last reported sales price on the day of valuation; other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are stated at the last quoted bid price.
	Valuation of Not Readily Marketable Investment Securities
	Securities not readily marketable include investment securities (a) for which there is no market on a securities exchange or no independent publicly quoted market, (b) that cannot be publicly offered or sold unless registration has been effected under the Securities Act of 1933, or (c) that cannot be offered or sold because of other arrangements, restrictions or conditions applicable to the securities or to us. The fair value of not readily marketable securities is estimated by management using available information including the following: quoted market prices of similar securities (i.e., unrestricted shares of the same company); price of recent known trades of the same or similar securities; the cost of the security, if recently purchased, adjusted for changes in the financial condition of the issuer; all other information available from review of available documents related to the issuer or discussions with management of the issuer. Significant unobservable inputs include the discount rate for lack of liquidity, and the volatility index of comparable companies. Changes to these unobservable inputs would cause the fair value to fluctuate substantially.
	Valuation of Underwriter Warrants
	We estimate the fair value of our underwriter warrants using the Black-Scholes Option Pricing Model. The warrants generally have a five-year expiration date and vest immediately. The warrants are generally subject to a restriction period of six months to one-year in which we cannot exercise the warrants. The Black-Scholes model requires us to use five inputs including: stock price, risk free rate, exercise price, time remaining on the warrant and price volatility. After stock price, the most influential factor in this model is price volatility, which we calculate for each company’s warrants based on each company’s own historical closing stock prices as well as an index of historical prices for comparable companies. When we initially receive a new underwriter warrant from an initial public offering, its calculated volatility factor is entirely based on the volatility of an index of comparable companies, since there is no price history for a new publicly traded company. As each underwriter warrant approaches its expiration date, its volatility factor is derived primarily from the historical prices of its underlying common stock. Private company underwriter warrant valuations use the volatility index of comparable public companies. There is no assurance that we will ultimately be able to exercise any of our warrants in a way that will realize the value that we attribute to them in our financial statements based on this model.
	Valuation of Trading Securities Sold, Not Yet Purchased
	As a securities broker-dealer, we are engaged in various securities trading and brokerage activities as principal. In the normal course of business, we sometimes sell securities that we do not currently own and will therefore be obligated to purchase such securities at a future date. This obligation is recorded on our balance sheet at the fair value based on quoted market prices of the related securities and will result in a trading loss on the securities if the fair value increases and a trading gain if the fair value decreases between the balance sheet date and the purchase date.
	There were no changes to our valuation methods or techniques during the first nine-month periods of 2013 or 2012.
	The following table is a quantitative disclosure about the significant unobservable inputs (Level 3) that were used in determining fair value at September 30, 2013:
			Quantitative Information about Level 3 Fair Value Measurements
			Fair Value at			Valuation Technique	Unobservable Input		Range						Weighted Average
			30-Sep-13
									Minimum			Maximum
	Investments in privately-held companies		$	4,332		Income approach; Market approach; Asset approach	Discount rate for lack of liquidity			20	%		20	%		20	%
	Underwriter warrants			1,069		Black-Scholes Option Pricing Model	Volatility index of comparable companies			61.2	%		92.6	%		78.4	%
			$	5,401

Note_4_Stockholders_Equity

Note 4 - Stockholders Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	Note 4. Stockholders' Equity
	Comprehensive Income
	The Company did not have any transactions that generated comprehensive income during the first nine months of 2013 or during the fiscal year ended December 31, 2012.
	Repurchase of Common Stock
	There were no common shares repurchased during the first nine months of 2013.
	In the first quarter of 2012, we repurchased 1,000 shares of our common stock for $1,250, or $1.25 per share, pursuant to our stock repurchase program previously approved by our Board of Directors, after which 68,011 shares remain available for repurchase. This repurchase plan does not have an expiration date.
	Common Share Dividends
	In March 2012, the Board of Directors approved a special cash dividend of $0.05 per common share payable April 16, 2012 to shareholders of record April 4, 2012. Dividends payable in the amount of $288,349 were recorded in the first quarter of fiscal 2012 and paid during the second quarter of fiscal 2012.
	In December 2012, the Board of Directors approved a second special cash dividend of $0.15 per common share payable December 28, 2012 to shareholders of record December 14, 2012. Dividends of $865,048 were paid in the fourth quarter of fiscal 2012.
	No dividends were declared or paid during the first nine months of 2013.
	Common Shares in Escrow
	As described in Note 8, the Company issued and placed 287,773 shares of common stock in escrow on July 25, 2013. These shares are not considered officially outstanding until they are released from the escrow.

Note_5_New_Accounting_Guidance

Note 5 - New Accounting Guidance	9 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	'
	Note 5. New Accounting Guidance
	Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.

Note_6_Change_in_Preferred_Sto

Note 6. Change in Preferred Stock Designation	9 Months Ended
	Sep. 30, 2013
Change In Preferred Stock Designation [Abstract]	'
Change In Preferred Stock Designation [Text Block]	'
	Note 6. Change in Preferred Stock Designation
	On June 19, 2013, the Company’s Board of Directors authorized the creation of Series A Preferred Stock. On July 18, 2013, the Company filed a Certificate of Designation of Preference, Rights and Limitations of Series A Convertible Preferred Stock with the Secretary of State of Oregon.

Note_7_Restructure_of_Paulson_

Note 7 - Restructure of Paulson Investment Company, Inc.	9 Months Ended
	Sep. 30, 2013
Investments Schedule [Abstract]	'
Investment [Text Block]	'
	Note 7. Restructure of Paulson Investment Company, Inc.
	The Company is in the process of restructuring the business involving the broker-dealer license held by the Company’s subsidiary, Paulson Investment Company, Inc. (“PIC”). Subject to approval by the Financial Industry Regulatory Authority (FINRA), the restructuring is contemplated to result in PIC being ultimately owned entirely by management of PIC and outside investors.
	In January 2013, PIC received a $1,500,000 loan from an outside investor pursuant to a convertible promissory note bearing 5% simple interest. The note is convertible, subject to FINRA approval, into preferred stock of PIC. The holders of the preferred shares will have no liquidation or other rights in the cash, receivables, inventories (including underwriter warrants), and certain prepaid assets, furniture and equipment (“Legacy Assets”) that existed when the convertible promissory note was executed, and will not participate in any future gains or losses derived from those assets. The noteholder has agreed that the note would stop accruing interest after April 30, 2013.
	During the nine-month period ended September 30, 2013, PIC received a $1,500,000 investment in PIC for which the investor (the “Investor”) received a 15.79% liquidation preference in the non-Legacy Assets. As of September 30, 2013, the Company held a 100% ownership interest in the Legacy Assets of PIC, and an 84.21% ownership interest in the non-Legacy Assets of PIC. The non-controlling interest in PIC represents the equity interest in the subsidiary that is not attributable, either directly or indirectly, to the Company and is reported as equity of the Company, separate from the Company’s controlling interest. Revenues, expenses, gains losses, net income or loss is reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and non-controlling interests.

Note_8_Proposed_Corporate_Reor

Note 8. Proposed Corporate Reorganization	9 Months Ended
	Sep. 30, 2013
Restructuring and Related Activities [Abstract]	'
Restructuring and Related Activities Disclosure [Text Block]	'
	Note 8. Proposed Corporate Reorganization
	The Board of Directors of the Company has determined that a change of direction is in the best interest of shareholders. Therefore, it has proposed a series of related transactions to execute a corporate reorganization. Among these transactions are as follows:
	a)     Proposed Financing
	On July 25, 2013, the Company entered into a series of agreements intended to secure investment in the Company of $5,250,000 (the "Investment") from DKR Ventures, LLC, a Delaware limited liability company, and Hudson Bay Master Fund Ltd., a Cayman Islands limited partnership (collectively, the “Investors”), in a private placement transaction (the “Proposed Financing”) intended to be exempt from registration under the Securities Act of 1933, as amended, subject to satisfaction of certain conditions including approval of the transaction by the Company's shareholders at a shareholders meeting scheduled for November 8, 2013.  The investment and 287,773 shares of common stock have been placed in escrow and will be returned to the Investors and the Company, respectively, if the transaction does not close.
	Under the agreements, the Company will issue the Investors a Unit consisting of (i) 287,773 shares of common stock; (ii) 500,000 shares of Series A Preferred Stock; (iii) a Class A Warrant; and (iv) a Class B Warrant. Each share of Series A Preferred Stock has a stated value of $0.806974 and a conversion ratio of 2.305640603 per share of Common Stock, subject to adjustment. Each share of Series B Preferred Stock will be convertible into one share of Common Stock and have a stated value of $0.35 per share and a conversion ratio equal to one share of Common Stock for each share of Series B Preferred Stock outstanding, equal to a purchase price of $0.35 per share of Common Stock, subject to adjustment. The Class A Warrant is exercisable for up to 7,500,000 shares of Series B Preferred Stock at a per share exercise price of $0.80, subject to adjustment, beginning on the date that is six months following the date of issuance and ending on the date that is five years thereafter. The Class B Warrant is exercisable for up to 13,559,407 shares of Series B Preferred Stock. The purchase price of one share of Common Stock underlying the Class B Warrant is deemed to be $0.35, subject to adjustment, without any payment of consideration by the Holder upon exercise. The Class B Warrant is exercisable beginning on the date that is six months following the date of issuance and ending on the date that is two years thereafter.
	b)     Creation of Liquidating Trust
	In connection with the Proposed Financing, the Company’s Board of Directors approved a plan to create a liquidating trust to benefit the shareholders of Common Stock of record as of October 11, 2013. Shareholders of record (“Legacy Shareholders”) will be given a non-transferable beneficial interest in the trust in proportion to their pro-rata ownership interest in the Company’s Common Stock. The trust will hold the majority of the assets currently held by PIC primarily consisting of underwriter warrants, trading and investment securities, and cash and accounts receivable. It is expected the assets in the trust will be liquidated and distributed to the Legacy Shareholders over time.
	c)     Proposed Changes to the Articles of Incorporation
	At the 2013 Shareholders Meeting, the Company has proposed to change the Company’s state of incorporation to Delaware from Oregon.
	The Company has also proposed the amendment and restatement of the Company’s Articles of Incorporation to increase the authorized capital stock from 10,000,000 shares of common stock, no par value per share, and 500,000 shares of preferred stock, no par value, to 90,000,000 shares of Common Stock, par value $0.0001 per share, and 30,000,000 shares of “Blank Check” Preferred Stock, par value $0.0001 per share.
	d)     Proposed Reverse Stock Split of Common Stock
	The Company has sought, subject to shareholder approval at the 2013 Annual Meeting of Shareholders (the "2013 Shareholders Meeting"), the authority to effect a reverse stock of its common stock. The authority would permit, but not require, the Board of Directors to effect a reverse stock split of the issued and outstanding Common Stock at any time prior to 18 months from the date of approval by a ratio of not less than one-for-two and not more than one-for-ten, with the exact ratio to be set within this range at the sole discretion of the Board of Directors.

Note_9_Subsequent_Events

Note 9. Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	Note 9. Subsequent Events
	a)	On October 7, 2013, PIC issued a Promissory Note and received consideration of $700,000 cash. The Note bears interest at the rate of 5% and is due on July 1, 2014.  It is convertible into 11.6% of the equity of PIC upon the earlier (i) all necessary FINRA and NASDAQ approvals and (ii) July 1, 2014.
	b)	On October 1, 2013, PIC entered into a 2-year lease for new office space in Novato, California with an average base rent of $5,540 per month.
	c)	On October 1, 2013, 5,000 stock options were exercised at a price of $1.13 per share for gross proceeds of $5,650. On October 7, 2013, 33,500 stock options were exercised at a price of $1.13 per share for gross proceeds of $37,855.

Note_2_Earnings_Per_Share_Tabl

Note 2 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Shares used for basic net income (loss) per share		5,766,985		5,766,985		5,766,985		5,767,288
	Effect of dilutive stock options		16,858		—		—		—
	Effect of contingently issuable common shares		13,235,547		—		—		—
	Shares used for diluted net income (loss) per share		19,019,390		5,766,985		5,766,985		5,767,288
	Stock options not included in diluted net income (loss) per share because their effect would have been antidilutive		—		218,500		216,000		312,250

Note_3_Fair_Value_Measurements1

Note 3 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	'
		30-Sep-13					31-Dec-12
		Fair Value			Input Level		Fair Value			Input Level
	Trading and investment securities owned:
	Corporate equities, marketable	$	5,016		Level 1		$	3,463		Level 1
	Corporate equities, not readily marketable		4,332		Level 3			4,878		Level 3
	Corporate options/warrants, marketable		58		Level 1			159		Level 1
	Underwriter warrants		1,069		Level 3			1,548		Level 3
	Trading securities sold, not yet purchased:
	Corporate equities, marketable		-		Level 1			-		Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	'
		Underwriter Warrants				Not Readily Marketable Investment Securities
	Balance, December 31, 2012	$	1,548			$	4,878
	Fair value of underwriter warrants received included as a component of corporate finance income		141				-
	Investment in privately-held company		-				100
	Net unrealized loss, included as a component of investment income related to securities held		(506	)			(646	)
	Underwriter warrants exercised or expired included as a component of investment income		(114	)			-
	Balance, September 30, 2013	$	1,069			$	4,332
		Underwriter Warrants				Not Readily Marketable Investment Securities
	Balance, December 31, 2011	$	1,395			$	3,857
	Fair value of underwriter warrants received included as a component of corporate finance income		-				-
	Investment in privately-held company		-				439
	Net unrealized gain (loss), included as a component of investment loss related to securities held		(51	)			(380	)
	Balance, September 30, 2012	$	1,344			$	3,916
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]	'
		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at			Valuation Technique	Unobservable Input		Range						Weighted Average
		30-Sep-13
								Minimum			Maximum
	Investments in privately-held companies	$	4,332		Income approach; Market approach; Asset approach	Discount rate for lack of liquidity			20	%		20	%		20	%
	Underwriter warrants		1,069		Black-Scholes Option Pricing Model	Volatility index of comparable companies			61.2	%		92.6	%		78.4	%
		$	5,401

Note_2_Earnings_Per_Share_Deta

Note 2 - Earnings Per Share (Details)	3 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares	13,235,547

Note_2_Earnings_Per_Share_Deta1

Note 2 - Earnings Per Share (Details) - Earnings Per Share, Basic And Diluted (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share, Basic And Diluted [Abstract]	'	'	'	'
Shares used for basic net income (loss) per share	5,766,985	5,766,985	5,766,985	5,767,288
Effect of dilutive stock options (in Dollars)	$16,858	'	'	'
Effect of contingently issuable common shares	13,235,547	'	'	'
Shares used for diluted net income (loss) per share	19,019,390	5,766,985	5,766,985	5,767,288
Stock options not included in diluted net income (loss) per share because their effect would have been antidilutive	'	218,500	216,000	312,250

Note_3_Fair_Value_Measurements2

Note 3 - Fair Value Measurements (Details)	9 Months Ended
	Sep. 30, 2013
Note 3 - Fair Value Measurements (Details) [Line Items]	'
Underwriter Warrants Expiration Term	'5 years
Minimum [Member]	'
Note 3 - Fair Value Measurements (Details) [Line Items]	'
Warrant Exercise Restriction Period	'6 months
Maximum [Member]	'
Note 3 - Fair Value Measurements (Details) [Line Items]	'
Warrant Exercise Restriction Period	'1 year

Note_3_Fair_Value_Measurements3

Note 3 - Fair Value Measurements (Details) - Disclosures Related to Financial Assets and Liabilities (USD $)	Sep. 30, 2013	Dec. 31, 2012
Trading and investment securities owned:	'	'
Underwriter warrants	$1,069,000	$1,548,000
Fair Value, Inputs, Level 1 [Member]	'	'
Trading and investment securities owned:	'	'
Corporate equities, marketable	5,016,000	3,463,000
Corporate options/warrants, marketable	58,000	159,000
Fair Value, Inputs, Level 3 [Member]	'	'
Trading and investment securities owned:	'	'
Corporate equities, not readily marketable	4,332,000	4,878,000
Underwriter warrants	$1,069,000	$1,548,000

Note_3_Fair_Value_Measurements4

Note 3 - Fair Value Measurements (Details) - Summary of Activity Related to Level 3 Financial Assets and Liabilities (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
			Underwriter Warrants [Member]	Underwriter Warrants [Member]	Not Readily Marketable Investment Securities [Member]	Not Readily Marketable Investment Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]	'	'	'	'	'	'
Balance,	$1,069,000	$1,548,000	$1,548,000	$1,395,000	$4,878,000	$3,857,000
Fair value of underwriter warrants received included as a component of corporate finance income	'	'	141,000	'	'	'
Investment in privately-held company	'	'	'	'	100,000	439,000
Net unrealized gain (loss), included as a component of investment	'	'	-506,000	-51,000	-646,000	-380,000
Underwriter warrants exercised or expired included as a component of investment income	'	'	-114,000	'	'	'
Balance,	$1,069,000	$1,548,000	$1,069,000	$1,344,000	$4,332,000	$3,916,000

Note_3_Fair_Value_Measurements5

Note 3 - Fair Value Measurements (Details) - Quantitative Information about Level 3 Fair Value Measurements (USD $)	9 Months Ended
	Sep. 30, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Fair Value (in Dollars)	$5,401
Investments in Privately-Held Companies [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Fair Value (in Dollars)	4,332
Valuation Technique	'Income approach; Market approach; Asset approach
Unobservable Input	'Discount rate for lack of liquidity
Weighted Average	20.00%
Investments in Privately-Held Companies [Member] | Minimum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Range	20.00%
Investments in Privately-Held Companies [Member] | Maximum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Range	20.00%
Underwriter Warrants [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Fair Value (in Dollars)	$1,069
Valuation Technique	'Black-Scholes Option Pricing Model
Unobservable Input	'Volatility index of comparable companies
Weighted Average	78.40%
Underwriter Warrants [Member] | Minimum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Range	61.20%
Underwriter Warrants [Member] | Maximum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Range	92.60%

Note_4_Stockholders_Equity_Det

Note 4 - Stockholders Equity (Details) (USD $)	1 Months Ended		3 Months Ended		9 Months Ended
	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2012	Mar. 31, 2012	Sep. 30, 2013	Jul. 25, 2013
Stockholders' Equity Note [Abstract]	'	'	'	'	'	'
Stock Repurchased During Period, Shares (in Shares)	'	'	'	1,000	0	'
Stock Repurchased During Period, Value	'	'	'	$1,250	'	'
Stock Repurchased During Period Per Share Amount (in Dollars per share)	'	'	'	$1.25	'	'
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in Shares)	'	68,011	'	68,011	'	'
Common Stock, Dividends, Per Share, Declared (in Dollars per share)	$0.15	$0.05	'	'	'	'
Payments of Dividends	'	'	865,048	288,349	'	'
Escrow Deposit, Shares (in Dollars)	'	'	'	'	'	$287,773

Note_7_Restructure_of_Paulson_1

Note 7 - Restructure of Paulson Investment Company, Inc. (Details) (USD $)	1 Months Ended
	Jan. 31, 2013	Sep. 30, 2013
Note 7 - Restructure of Paulson Investment Company, Inc. (Details) [Line Items]	'	'
Proceeds from Loans (in Dollars)	$1,500,000	'
Debt Instrument, Interest Rate, Stated Percentage	5.00%	'
Investments (in Dollars)	'	$1,500,000
Legacy Assets of PIC [Member]	'	'
Note 7 - Restructure of Paulson Investment Company, Inc. (Details) [Line Items]	'	'
Equity Method Investment, Ownership Percentage	'	100.00%
Non-Legacy Assets of PIC [Member]	'	'
Note 7 - Restructure of Paulson Investment Company, Inc. (Details) [Line Items]	'	'
Equity Method Investment, Ownership Percentage	'	84.21%

Note_8_Proposed_Corporate_Reor1

Note 8. Proposed Corporate Reorganization (Details) (USD $)	1 Months Ended
	Jul. 25, 2013	Sep. 30, 2013	Dec. 31, 2012
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Proceeds from Issuance of Private Placement (in Dollars)	$5,250,000	'	'
Escrow Deposit, Shares (in Dollars)	$287,773	'	'
Common Stock, Shares Authorized	90,000,000	10,000,000	10,000,000
Preferred Stock, Shares Authorized	500,000	500,000	500,000
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$0.00	$0	$0
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	'	$0	$0
Common Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	287,773	'	'
Preferred Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	500,000	'	'
Series A Preferred Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Preferred Stock Stated Value (in Dollars per share)	$0.81	'	'
Conversion Ratio	2.305640603	'	'
Convertible Preferred Stock, Shares Issued upon Conversion	7,500,000	'	'
Series B Preferred Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Preferred Stock Stated Value (in Dollars per share)	$0.35	'	'
Convertible Preferred Stock, Shares Issued upon Conversion	13,559,407	'	'
No Par Common Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Common Stock, Shares Authorized	10,000,000	'	'
Blank Check Preferred Stock [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Preferred Stock, Shares Authorized	30,000,000	'	'
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$0.00	'	'
Minimum [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Stockholders' Equity Note, Stock Split	'one-for-two	'	'
Maximum [Member]	'	'	'
Note 8. Proposed Corporate Reorganization (Details) [Line Items]	'	'	'
Stockholders' Equity Note, Stock Split	'one-for-ten	'	'

Note_9_Subsequent_Events_Detai

Note 9. Subsequent Events (Details) (USD $)	Jan. 31, 2013	Oct. 07, 2013	Oct. 02, 2013	Oct. 07, 2013	Oct. 02, 2013
		Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
		PIC [Member]	Office Building [Member]
Note 9. Subsequent Events (Details) [Line Items]	'	'	'	'	'
Debt Instrument, Face Amount	'	$700,000	'	'	'
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%	'	'	'
Debt Instrument, Convertible, Conversion to Equity	'	11.60%	'	'	'
Lessee Leasing Arrangements, Operating Leases, Term of Contract	'	'	'2 years	'	'
Operating Leases, Rent Expense	'	'	5,540	'	'
Stock Issued During Period, Value, Stock Options Exercised	'	'	'	33,500	5,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share)	'	'	'	$1.13	$1.13
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	'	'	'	$37,855	$5,650