Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document Information [Line Items] | ||
Entity Registrant Name | BKF CAPITAL GROUP INC | |
Entity Central Index Key | 9235 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | BKFG | |
Entity Common Stock, Shares Outstanding | 7,471,593 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $2,722 | $3,052 |
Investment in Qualstar and Interlink | 3,153 | 2,848 |
Prepaid expenses and other assets | 14 | 15 |
Total assets | 5,889 | 5,915 |
Liabilities and Stockholders' Equity | ||
Accrued expenses | 27 | 52 |
Total liabilities | 27 | 52 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $1 par value, authorized — 15,000,000 shares, 7,471,593 issued and outstanding as of March 31, 2015 and as of December 31, 2014 | 7,472 | 7,472 |
Additional paid-in capital | 68,270 | 68,270 |
Accumulated deficit | -69,880 | -69,879 |
Total stockholders' equity | 5,862 | 5,863 |
Total liabilities and stockholders' equity | $5,889 | $5,915 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION [Parenthetical] (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,471,593 | 7,471,593 |
Common stock, shares outstanding | 7,471,593 | 7,471,593 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Non Operating Income | ||
Interest income | $1 | $2 |
Total revenues | 1 | 2 |
Expenses: | ||
Employee compensation and benefits | 25 | 25 |
Occupancy and equipment rental | 4 | 5 |
Other operating expenses | 4 | 34 |
Total expenses | -33 | -64 |
Other income (expense) | ||
Gain/(loss) on equity investments | 31 | -58 |
Total other income (expense) | 31 | -58 |
Net income/(loss) | ($1) | ($120) |
Basic and Diluted Earnings Per Share (in dollars per share) | $0 | ($0.02) |
Weighted average common shares outstanding (in shares) | 7,471,593 | 7,471,593 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($1) | ($120) |
Changes in operating assets and liabilities: | ||
Gain / (loss) on equity investments | -31 | 58 |
(Decrease) in accrued expenses | -25 | -13 |
Net cash used in operating activities | -57 | -75 |
Cash flows from investing activities | ||
Purchase of investment securities | -273 | -450 |
Net cash used in investing activities | -273 | -450 |
Net decrease in cash and cash equivalents | -330 | -525 |
Cash and cash equivalents at the beginning of the period | 3,052 | 5,898 |
Cash and cash equivalents at the end of the period | 2,722 | 5,373 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $0 | $0 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Organization and Summary of Significant Accounting Policies |
Organization and Basis of Presentation | |
The Company operates through its wholly-owned subsidiaries, BKF Investment Group, Inc., formerly known as BKF Management Co., Inc. ("BIG") and BKF Asset Holdings, Inc. (“BKF Holdings”) all of which are collectively referred to herein as the "Company" or "BKF." The Company trades on the over the counter market under the symbol ("BKFG"). Currently, the Company plans to engage in the asset management business through its subsidiary BKF Advisors, Inc., which is a registered investment advisor in the State of California. BKF is also seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues and increase shareholder value. | |
The consolidated financial statements of BKF include BIG and BIG's two wholly owned subsidiaries BKF Advisors, Inc. (“BKF Advisors”) and BKF Asset Management, Inc., ("BAM") and BAM's two wholly-owned subsidiaries, BKF GP, Inc. (“BKF GP”) and LEVCO Securities, Inc. ("LEVCO Securities"). On November 27, 2012 LEVCO Securities was dissolved. All intercompany accounts have been eliminated. | |
BAM was an investment advisor which was registered under the Investment Advisers Act of 1940, as amended; it withdrew its registration on December 19, 2006. BAM had no operations during 2014 and 2013. | |
Services | |
During the quarters ended March 31, 2015 and March 31, 2014, the Company did not provide any investment advisory or asset management services nor did the Company act as a broker dealer. | |
The Company, through BKF GP, continues to act as the managing general partner of several private investment partnerships, established prior to 2005, which are in the process of being liquidated and dissolved. | |
Use of Estimates | |
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Recent Accounting Developments | |
In August 2014, the FASB issued ASU No. 2014-15 ("ASU 2014-15"), Presentation of Financial Statements-Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires a Company's management to evaluate, at each reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on its consolidated financial statements. | |
Cash and Cash Equivalents | |
Investments in money market funds are valued at net asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit risk related to the money market funds and the market rate inherent in the money market funds. | |
Other Comprehensive Income | |
The Company presents other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid in capital in the equity section of a statement of position. | |
Fair Values of Financial Instruments | |
The Company adopted FASB ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | |
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | |
The carrying amounts reported in the balance sheets for cash and cash equivalents, and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest | |
Investments
Investments | 3 Months Ended |
Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Available for Sale Securities [Text Block] | 2. Investments |
a) Investment in Qualstar: | |
The investment in Qualstar is accounted for using the equity method as prescribed by Accounting Standard Codification Section 323, under which the Company’s carrying amount of its investment in common stock of Qualstar is the initial cost adjusted for the Company’s share of Qualstar’s earnings and losses, and further adjusted for any distributions or dividends. At March 31, 2015 the Company held 3,095,875 common shares of Qualstar, representing approximately 25.27% of the outstanding shares. The investment in Qualstar was approximately $705,000 at March 31, 2015. The market value of the Company’s shares in Qualstar was approximately $4.6 million at March 31, 2015. | |
During the quarter ended March 31, 2015, the Company recorded a loss on its investment in Qualstar of approximately $62,000. These losses do not include the quarterly results of Qualstar as of March 31, 2015, as Qualstar’s financial statements were not available at the time we prepared our financial statements. Therefore, all balances related | |
to the Company’s investment in Qualstar are recorded on a three month (quarterly) lag. This lag is consistent from period to period. | |
b) Investment in Interlink | |
At March 31, 2015, the Company holds 691,020 shares of Interlink Electronics which represents approximately 11.8% of Internlink’s outstanding shares. Since, Steven Bronson, BKF’s Chairman is also the Chief Executive Officer of Interlink Electronics and can significantly influence the operational decisions at Interlink, the Company made a change in its accounting for this investment from available-for-sale securities to the equity method. The change in accounting methods did not have a material impact on the financial statements for the previously reported earnings-per-share. The retroactive application of the equity method resulted in an immaterial change to retained earnings at March 31, 2014. In addition, the basic and diluted earning per share did not change. | |
The investment in Interlink Electronics is accounted for using the equity method as prescribed by Accounting Standard Codification Section 323, under which the Company’s carrying amount of its investment in common stock of Interlink is the initial cost adjusted for the Company’s share of Qualstar’s earnings and losses, and further adjusted for any distributions or dividends. At March 31, 2015 the Company held 691,200 common shares of Interlink, representing approximately 11.8% of the outstanding shares. The investment in Interlink was approximately $2.5 million at March 31, 2015. The market value of the Company’s shares in Interlink was approximately $6.2 million at March 31, 2015. | |
During the quarter ending March 31, 2015, the Company recorded a gain on its investment in Interlink of approximately $93,000. These gains do not include the quarterly results of Interlink as of March 31, 2015, as Interlink’s financial statements were not available at the time we prepared our financial statements. Therefore, all balances related to the Company’s investment in Interlink are recorded on a three month (quarterly) lag. This lag is consistent from period to period. | |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 3. Concentrations |
The Company had amounts in excess of $250,000 in a single bank during the year. Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation. These balances fluctuate during the year and can exceed this $250,000 limit. Management regularly monitors the financial institution, together with its cash balances, and tries to keep this potential risk to a minimum. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 4. Commitments and Contingencies |
The Company could be subject to a variety of claims, suits and proceedings that arise from time to time, including actions with respect to contracts, regulatory compliance and public disclosure. These actions may be commenced by a number of different constituents, including vendors, former employees, regulatory agencies, and stockholders. The following is a discussion of the more significant matters involving the Company. | |
The Company is a defendant in a lawsuit for claims for alleged services in the amount of approximately $171,000. The complaint was filed in the New York State Supreme Court and alleges a claim for breach of contract against BAM for alleged goods and services delivered to BAM. The Company is vigorously defending this action. The Company has no specific reserve for this action. | |
Control
Control | 3 Months Ended |
Mar. 31, 2015 | |
Control [Abstract] | |
Schedule Of Control [Text Block] | 5. Control |
As of March 31, 2015 Mr. Bronson beneficially owns 4,505,100 shares of the Company's common stock. Mr. Bronson's beneficial ownership represents approximately 60.3% of the Company's issued and outstanding shares of common stock. Accordingly, Mr. Bronson has effective control of the Company. In the election of directors, stockholders are not entitled to cumulate their votes for nominees. Thus, as a practical matter, Mr. Bronson may be able to elect all of the Company's directors and otherwise direct the affairs of the Company. | |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation, Policy [Policy Text Block] | Organization and Basis of Presentation |
The Company operates through its wholly-owned subsidiaries, BKF Investment Group, Inc., formerly known as BKF Management Co., Inc. ("BIG") and BKF Asset Holdings, Inc. (“BKF Holdings”) all of which are collectively referred to herein as the "Company" or "BKF." The Company trades on the over the counter market under the symbol ("BKFG"). Currently, the Company plans to engage in the asset management business through its subsidiary BKF Advisors, Inc., which is a registered investment advisor in the State of California. BKF is also seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues and increase shareholder value. | |
The consolidated financial statements of BKF include BIG and BIG's two wholly owned subsidiaries BKF Advisors, Inc. (“BKF Advisors”) and BKF Asset Management, Inc., ("BAM") and BAM's two wholly-owned subsidiaries, BKF GP, Inc. (“BKF GP”) and LEVCO Securities, Inc. ("LEVCO Securities"). On November 27, 2012 LEVCO Securities was dissolved. All intercompany accounts have been eliminated. | |
BAM was an investment advisor which was registered under the Investment Advisers Act of 1940, as amended; it withdrew its registration on December 19, 2006. BAM had no operations during 2014 and 2013. | |
Services | |
During the quarters ended March 31, 2015 and March 31, 2014, the Company did not provide any investment advisory or asset management services nor did the Company act as a broker dealer. | |
The Company, through BKF GP, continues to act as the managing general partner of several private investment partnerships, established prior to 2005, which are in the process of being liquidated and dissolved. | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Developments |
In August 2014, the FASB issued ASU No. 2014-15 ("ASU 2014-15"), Presentation of Financial Statements-Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires a Company's management to evaluate, at each reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on its consolidated financial statements. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
Investments in money market funds are valued at net asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit risk related to the money market funds and the market rate inherent in the money market funds. | |
Comprehensive Income, Policy [Policy Text Block] | Other Comprehensive Income |
The Company presents other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid in capital in the equity section of a statement of position. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments |
The Company adopted FASB ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | |
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | |
The carrying amounts reported in the balance sheets for cash and cash equivalents, and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. | |
Investment_Details_Textual
Investment (Details Textual) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Qualstar [Member] | |
Investment Owned, Balance, Shares (in shares) | 3,095,875 |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 25.27% |
Investment Owned, at Fair Value (in dollars) | $705,000 |
Investment Owned, Face Amount (in dollars) | 4,600,000 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 62,000 |
Interlink Electronics [Member] | |
Investment Owned, Balance, Shares (in shares) | 691,020 |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 11.80% |
Investment Owned, at Fair Value (in dollars) | 2,500,000 |
Investment Owned, Face Amount (in dollars) | 6,200,000 |
Equity Method Investment, Realized Gain (Loss) on Disposal | $93,000 |
Concentrations_Details_Textual
Concentrations (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Cash, FDIC in Single Bank Account, Description | The Company had amounts in excess of $250,000 in a single bank during the year. |
Cash, FDIC Not Insured, Anticipated Excess Amount, Description | Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation |
Cash, FDIC Balances Fluctuate, Description | These balances fluctuate during the year and can exceed this $250,000 limit |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Loss Contingency, Damages Sought, Value | $171,000 |
Control_Details_Textual
Control (Details Textual) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Common Stock, Shares, Outstanding | 7,471,593 | 7,471,593 |
Mr.Bronson [Member] | ||
Common Stock, Shares, Outstanding | 4,505,100 | |
Common Stock Beneficial Ownership Percentage | 60.30% |