Capital Financial (CPFH) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2017shares
Document And Entity Information
Entity Registrant Name	Capital Financial Holdings, Inc.
Entity Central Index Key	944,696
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
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	1,241
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 1,073,139	$ 934,711
Accounts receivable (net of an allowance of $24,000 for 2017 and 2016)	1,523,818	1,932,933
Prepaids	48,341	61,709
Current assets of discontinued operations	0	6,375
Total current assets	2,645,298	2,935,728
PROPERTY AND EQUIPMENT
Land	98,409	98,409
Building	1,096,439	875,682
Furniture, fixtures and equipment	564,736	543,601
Less accumulated depreciation	(457,464)	(422,058)
Property and equipment of discontinued operations	0	72,616
Net property and equipment	1,302,120	1,168,250
OTHER ASSETS
Severance escrow	258,313	258,185
Deferred tax asset	465,881	417,542
Other assets	175,279	175,279
Total other assets	899,473	851,006
TOTAL ASSETS	4,846,891	4,954,985
CURRENT LIABILITIES
Accounts payable	311,738	292,987
Commissions payable	1,642,387	2,027,962
Income taxes payable	3,355	10,187
Other current liabilities	201,180	12,962
Current liabilities of discontinued operations	0	7,434
Total current liabilities	2,158,660	2,351,532
NON CURRENT LIABILITIES
Non current liabilities of discontinued operations	0	2,907
Building mortgage	675,000	475,000
Total noncurrent liabilities	675,000	477,907
TOTAL LIABILITIES	2,833,660	2,829,440
STOCKHOLDERS' EQUITY
Series A preferred stock – 5,000,000 shares authorized, $.0001 par value; 3,050,000 and 3,050,000 shares issued and 0 outstanding, respectively	305	305
Additional paid in capital – series A preferred stock	1,524,695	1,524,695
Common stock – 1,000,000,000 shares authorized, $.0001 par value; 1,241 and 1,241 shares issued and outstanding, respectively	1,241	1,241
Additional paid in capital - common stock	10,221,515	10,221,515
Accumulated deficit	(8,434,525)	(8,322,211)
Less Treasury stock, 3,050,000 preferred shares at $0.4262	(1,300,000)	(1,300,000)
TOTAL STOCKHOLDERS' EQUITY	2,013,231	2,125,545
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,846,891	$ 4,954,985

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Allowance for doubtful accounts	$ 24,000	$ 24,000
STOCKHOLDERS' EQUITY
Series A Preferred stock, par value	$ 0.0001	$ 0.0001
Series A Preferred stock shares authorized	5,000,000	5,000,000
Series A Preferred stock shares issued	3,050,000	3,050,000
Series A Preferred stock shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock shares authorized	1,000,000,000	1,000,000,000
Common stock shares issued	1,241	1,241
Common stock shares outstanding	1,241	1,241
Treasury stock	3,050,000	3,050,000
Treasury stock, par value	$ 0.4262	$ 0.4262

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
OPERATING REVENUES
Fee income	$ 396,812	$ 337,983	$ 712,603	$ 596,089
Commissions	3,249,259	3,983,351	6,758,257	7,823,827
Other fee income	111,071	49,911	209,719	119,434
Total revenue	3,757,142	4,371,245	7,680,579	8,539,350
OPERATING EXPENSES
Compensation and benefits	371,528	335,583	758,025	699,657
Commission expense	3,062,434	3,776,517	6,345,008	7,408,766
General and administrative expenses	380,130	253,973	674,241	486,953
Depreciation	24,009	11,846	35,407	23,563
Total operating expenses	3,838,101	4,377,919	7,812,681	8,618,939
OPERATING LOSS	(80,959)	(6,674)	(132,102)	(79,589)
OTHER INCOME (EXPENSES)
Interest expense	(6,466)		(12,260)	947
Rent income	8,500		8,500	0
Other income	4,137	(11,796)	4,684	(881)
Total other income (expense)	6,171	(11,796)	924	(1,828)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX	(74,788)	(18,470)	(131,178)	(81,417)
INCOME TAX (EXPENSE) BENEFIT	54,583	(9,725)	41,179	(15,350)
NET LOSS BEFORE DISCONTINUED OPERATIONS	(20,205)	(28,195)	(89,999)	(96,767)
DISCONTINUED OPERATIONS	0	(8,148)	(22,315)	(14,873)
NET LOSS	$ (20,205)	$ (36,343)	$ (112,314)	$ (111,640)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED:
Continuing	$ (16)	$ (23)	$ (73)	$ (78)
Discontinued	$ 0	$ (7)	$ (18)	$ (12)
SHARES USED IN COMPUTING NET PER COMMON SHARE:
Basic and diluted	1,241	1,241	1,241	1,241

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (112,314)	$ (111,640)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	35,407	23,844
Depletion	(29,354)	10,442
Provision for deferred income taxes	(48,339)	(1,656)
(Increase) decrease in:
Accounts receivable	409,115	63,487
Income taxes payable	(6,832)	(63,788)
Prepaids	13,368	18,139
Severance escrow	(128)	(129)
Accounts Payable	11,317	35,232
Commissions Payable	(385,575)	59,185
Other liabilities	188,217	148,963
Net cash provided by operating activities	74,882	182,079
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(21,136)	(21,884)
Payment of Baron notes receivable	0	500,000
Improvements to building	(220,756)	0
Deductions to oil and gas properties	105,438	0
Net cash (used in) provided by investing activities	(136,454)	478,116
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings	200,000	0
Repayment of short-term borrowings	0	(50,000)
Net cash used in financing activities	200,000	(50,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS	138,428	610,195
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	934,711	1,038,426
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,073,139	1,648,621
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Cash paid for interest on building mortgage	$ 12,260	$ 0

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
NOTE 1 - BASIS OF PRESENTATION	The accompanying condensed consolidated financial statements of Capital Financial Holdings, Inc., a North Dakota corporation, and its subsidiaries Capital Financial Services, Inc. (“CFS”) and Capital Natural Resources, Inc. (“CNR”) (collectively, the "Company"), included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the footnotes thereto contained in the Annual Report on Form 10-K for the year ended December 31, 2016, of Capital Financial Holdings, Inc., as filed with the SEC. The condensed consolidated balance sheet at December 31, 2016, contained herein, was derived from audited financial statements, but does not include all disclosures included in the Form 10-K and applicable under accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America, but not required for interim reporting purposes, have been condensed or omitted. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (which are of a normal, recurring nature) necessary for a fair presentation of the financial statements. The results of operations for the six months ended June 30, 2017, are not necessarily indicative of operating results for the entire year. Oil and Gas Properties CNR follows the full cost method of accounting for crude oil and natural gas operations whereby all costs related to the exploration and development of crude oil and natural gas properties are capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Capitalized costs are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves as determined by independent petroleum engineers. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. For the six months ended June 30, 2017, depletion expense was zero. CNR held leasehold interests on acreage located in Gonzalas and Taylor County, Texas, Lincoln County, Colorado and Divide and Williams County, North Dakota. Proceeds from property sales will generally be credited to the full cost pool with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. In the first quarter of 2017, these assets were sold for $66,200. The Company assesses all items classified as unproved property on an annual basis, or if certain circumstances exist, more frequently, for possible impairment or reduction in value. In the first quarter of 2017, non-producing and unproved properties in Lincoln County, Colorado and Divide and Williams County, North Dakota held by the Company were disposed of in transfers deemed effective as of December 31, 2016 by assignment documents in accordance with established practice in the oil and gas industry. Oil and Gas Revenue The Company recognizes oil and gas revenue for only its ownership percentage of total production under the entitlement method. There was no imbalance as of June 30, 2017. Asset Retirement Obligations Asset retirement obligation is included in other noncurrent liabilities and relates to future costs associated with the plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on estimated remaining lives of those wells based on reserve estimates, external estimates to plug and abandon the wells in the future, inflation, credit adjusted discount rates and federal and state regulatory requirements. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. As of June 30, 2017, asset retirement obligations were zero and for the six months ended June 30, 2017 accretion expense was zero. As of December 31, 2016, the natural resource segment met the definition of discontinued operations.

2. ACCOUNTING PRONOUNCEMENTS IS

2. ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
NOTE 2 - ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE	A summary of our significant accounting policies is included in Note 1 of our 2016 Form 10-K filed on March 30, 2017. 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 2016-02 – Leases (Topic 842):

3. BUSINESS VENTURES

3. BUSINESS VENTURES	6 Months Ended
	Jun. 30, 2017
Business Ventures
NOTE 3 - BUSINESS VENTURES	On June 9, 2014, the Company launched a new wholly-owned operating subsidiary, Capital Natural Resources, Inc., by acquiring 1,000,000 shares, .001 par value common stock of Capital Natural Resources, Inc. for the amount of $100,000. Capital Natural Resources, Inc. will seek opportunities related to natural resources in the United States, including petroleum, natural gas and/or other minerals, water resources and land. On April 1, 2015, CNR obtained a non-operating working interest in an oil and gas property consisting of three oil and gas leases in Taylor County, Texas for a purchase price of $90,000 paid in cash. On December 1, 2015, CNR purchased a non-operating working interest in the Kifer Rozella 1, producing oil well, located in the County of Gonzales, state of Texas. The purchase price of $100,000 for CNR’s interest was paid by $50,000 by a promissory note and deed of trust carried by the Seller, Origin Production Company, Inc. Said promissory note has an annual interest rate of 10% per annum and is payable in monthly installment of approximately $1,062 beginning January 1, 2016 with final maturity on December 1, 2020. On February 1, 2016, the Company paid off the promissory note in the amount of approximately $50,847 bringing the balance of the note to zero. Total interest paid on the promissory note was approximately $847. On July 28, 2015, CNR acquired five year oil and gas leases located in Williams County, North Dakota and two tracts located in Divide County, North Dakota for a combined acquisition cost of $7,676, including lease bonus and prepaid annual rentals. The oil and gas leases were obtained from the State of North Dakota Department of Trust Lands. The leases grant the right to conduct oil and gas operations and extract oil and gas from the property with payment of royalty to the lessor of 3/16 of oil and gas produced. The leases were to expire August 3, 2020 unless held by production, meaning oil and gas is being produced from the properties. On August 20, 2015, CNR acquired a five year oil and gas lease located in Lincoln County, Colorado at an initial acquisition cost of $1,652 including the first annual rental payment of $1,600. The oil and gas lease was obtained from the Colorado State Board of Land Commissioners. The lease grants the right to conduct oil and gas operations and extract oil and gas from the property with payment of royalty to the lessor of 1/6 of oil and gas produced. The lease was to expire August 20, 2020 unless held by production, meaning oil and gas is being produced from the property. The oil and gas leases in North Dakota and Colorado were non-producing properties and non-operating leases. The purchase allocation for all four CNR oil and gas lease transactions was based on the estimated fair value of the assets acquired. On May 19, 2015, CNR acquired interests in coal rights located in Kanawha County, West Virginia with 1,483,451 recoverable tons for a purchase price of $1,275 paid in cash. On June 11, 2015, CNR acquired mineral, water rights and surface interests in Hudspeth County, Texas for a purchase price of $83,350 paid in cash. In the first quarter of 2017, all of the natural resource assets described above were disposed of by CNR. As of December 31, 2016, the natural resource subsidiary, Capital Natural Resources, Inc., met the definition of discontinued operations.

4. DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2017
Discontinued Operations
NOTE 4 - DISCONTINUED OPERATIONS	On March 2 and 3, 2017 the Company sold the assets in its natural resource segment, Capital Natural Resources, Inc. The sale included all of the leases and coal, mineral, water and surface interests. The summarized balance sheet for discontinued operations is presented below: 2017 2016 Current Assets Accounts receivable $ - 5,626 Current Long term receivable - Prepaids - 749 Total current assets $ - 6,375 Property and Equipment Oil and natural gas properties, Full Cost Method of Accounting $ - 61,829 Less accumulated depletion - (29,354 ) Equipment - 4,690 Less accumulated depreciation - (816 ) Other property holdings - 36,267 Net property and equipment $ - 72,616 Total Assets $ - 78,991 Current liabilities Accounts payable $ - 7,434 Total current liabilities $ - 7,434 Noncurrent liabilities Asset retirement obligation $ - 2,907 Total noncurrent liabilities $ - 2,907 Stockholder’s Equity Common Stock $ - 300,400 Accumulated deficit - (231,750 ) Total stockholder’s equity $ - 68,650 Total liabilities and stockholder’s equity $ - 78,991 The results of operations of Capital Natural Resources, Inc. are included in the Company’s Consolidated Statements of Operations as discontinued operations. The company recorded impairment on the assets held for sale as of December 31, 2016. The proceeds of the sale, after giving effect to any working capital adjustments, will be allocated among the holding company. The summarized income for the three months ended June 30, 2017 and June 30, 2016 from discontinued operations is presented below: 2017 2016 Operating Revenues Oil lease income $ - 19,460 Total operating revenue $ - 19,460 Operating Expenses Compensation and benefits $ - 15,158 Lease operating expense - 14,171 General and administrative - 235 Depletion - 4,990 Depreciation - 161 Loss from discontinued operations (22,315 ) Total operating expenses $ (22,315 ) 34,715 Operating loss $ (22,315 ) (15,255 ) Loss of discontinued operations before income tax expense $ (22,315 ) (15,255 ) Income tax benefit $ - 7,107 Net loss $ (22,315 ) (8,148 ) The summarized income for the six months ended June 30, 2017 and June 30, 2016 from discontinued operations is presented below: 2017 2016 Operating Revenues Oil lease income $ - 33,136 Total operating revenue $ - 33,136 Operating Expenses Compensation and benefits $ - 32,935 Lease operating expense - 28,639 General and administrative - 2,514 Depletion - 10,442 Depreciation - 281 Loss from discontinued operations (22,315 ) Total operating expenses $ (22,315 ) 74,811 Operating loss $ (22,315 ) (41,675 ) Other income (expenses) Interest expense $ - (847 ) Interest income - 16,206 Total other income $ - 15,359 Loss of discontinued operations before income tax expense $ (22,315 ) (26,316 ) Income tax benefit $ - 11,443 Net loss $ (22,315 ) (14,873 ) The Company did not reclassify its Statements of Cash Flows to reflect the various discontinued operations. Cash flows from 2017 are combined with the cash flows from continuing operations within each of the categories presented.

5. BARON NOTES RECEIVABLE

5. BARON NOTES RECEIVABLE	6 Months Ended
	Jun. 30, 2017
Business Acquisition, Pro Forma Information [Abstract]
NOTE 5 - BARON NOTES RECEIVABLE	On June 11, 2014, June 27, 2014, and July 22, 2014, Baron Energy, Inc., issued promissory notes receivable to Capital Natural Resources, Inc. (the “note holder”) in the amounts of $85,000, $40,000 and $375,000 respectively. The three notes carry an interest rate of 15% per annum, payable monthly, and mature on June 12, 2016, June 28, 2016 and July 23, 2016 respectively. The Chairman of the Company has acted, and continues to act, as counsel to the Company while his affiliated law firm has acted and continues to act as counsel to Baron Energy, Inc. Moreover, the Chairman also serves on the management team of the subsidiary that holds the Baron Energy Notes. This related party transaction was reviewed by the Company. At maturity, the notes are convertible at the option of the note holder into specified non-operating minority working interests in Baron Energy, Inc.’s oil and gas operations in Frio County, Texas. As additional compensation to the note holder, at the maturity of the notes, regardless of whether the note holder elects to convert the principal of the notes to non-operating minority working interests, the note holder will be assigned specified non-operating minority working interests in Baron Energy, Inc.’s oil and gas operations in Frio County, Texas. The note holder also has the option to receive additional working interests if it extends the maturity dates of the notes. Interest income earned on the notes was $82,642. On March 21, 2016, the Baron Notes were paid in full in the amount of $500,000 together with accrued interest.

6. LINE OF CREDIT

6. LINE OF CREDIT	6 Months Ended
	Jun. 30, 2017
Line of Credit Facility [Abstract]
NOTE 6 - LINE OF CREDIT	On September 12, 2016, the Company signed renewal loan documents for the line of credit with American Bank Center in the amount of $500,000. The line of credit has a variable interest rate of 1.509 percent above Wall Street Journal U.S. Prime Rate which was 4.25% as of June 30, 2017. The loan matures with principal due on September 12, 2017. As of June 30, 2017, the Company had zero outstanding and zero interest expense against its current line of credit. There are no financial covenants associated with the line of credit.

7. STOCK WARRANTS, STOCK SPLITS

7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
NOTE 7 - STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS	The Company measures and records compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values. There were no compensation costs or deferred tax benefits recognized for stock-based compensation awards for the six months ended June 30, 2017 and 2016. Changes are due to the stock buyback and reverse stock split. Option activity for the twelve months ended December 31, 2016 and the six months ended June 30, 2017 was as follows: Number of Options Weighted Average Exercise Price per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding on January 1, 2016 207 $ 8,692 $ 4,435 $ - Granted - - - Exercised - - - Canceled (39 ) - - Outstanding on December 31, 2016 168 $ 5,000 $ 3,844 $ - Granted - - - Exercised - - - Canceled (1 ) - - Outstanding on June 30, 2017 167 $ 4,538 $ 4,190 $ - Exercisable options totaled 168 at December 31, 2016 and totaled 167 at June 30, 2017.

8. INCOME TAXES

8. INCOME TAXES	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
NOTE 8 - INCOME TAXES	Deferred taxes arise because of different tax treatment between financial statement accounting and tax accounting, known as “temporary differences.” The Company records the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in future periods) and “deferred tax liabilities” (generally items for which the Company has received a tax deduction and has not yet been recorded in the consolidated statement of operations). Management reviews and adjusts those estimates annually based upon the most current information available. However, because the recoverability of deferred taxes is directly dependent upon the future operating results of the Company, actual recoverability of deferred taxes may differ materially from management’s estimates. Due to stock options forfeited, the deferred tax assets associated with stock compensation valued under the Black Scholes model were reduced. As of June 30, 2017, an accumulated amount of approximately $434,610 has been recorded as tax expense since the beginning of stock options being forfeited. There are no additional stock options subject to forfeiture. The effective tax rates for the six months ended June 30, 2017 were different from the statutory rate primarily due to the reduction of the deferred tax assets related to stock compensation. At June 30, 2017, the Company has approximately $399, 000 in federal net operation loss carry forward which begins to expire in 2036.

9. EARNINGS PER SHARE

9. EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
NOTE 9 - EARNINGS PER SHARE	Basic earnings per share are computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common shares had been converted to common shares. The following reconciles amounts reported in the financial statements: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ (20,205 ) (28,195 ) Less: Preferred Stock Dividends Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ (20,205 ) 1,241 (16 ) (28,195 ) 1,241 $ (23 ) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ (89,999 ) (96,767 ) Less: Preferred Stock Dividends Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ (89,999 ) 1,241 (73 ) (96,767 ) 1,241 $ (78 ) Options and warrants to purchase 377 common shares at exercise prices between $3,500 and $14,300 were outstanding at June 30, 2017, but were not included in the computation of diluted earnings per share for the quarter ending June 30, 2017 and June 30, 2016, because their effect was anti-dilutive.

10. RULE 4110 (c)(1)

10. RULE 4110 (c)(1)	6 Months Ended
	Jun. 30, 2017
Rule 4110 C1
NOTE 10 - RULE 4110 (c)(1)	The Company operates under the provision of FINRA Rule 4410 (c)(1) and, accordingly, the member is restricted from withdrawing equity capital for a period of one year from the date such equity capital is contributed, unless otherwise permitted by FINRA in writing. Subject to the requirements of paragraph (c)(2) of this Rule, this paragraph shall not preclude a member from withdrawing profits earned. On December 28, 2016, the board of the holding company of Capital Financial Services, Inc. approved capital contribution in the amount of $65,000 to be transferred to the Company.

11. REGULATORY MATTERS

11. REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2017
Regulatory Matters
NOTE 11 - REGULATORY MATTERS	The broker dealer (“BD”) segment of Capital Financial Services, Inc. is subject to periodic examinations by its regulators, the Financial Industry Regulatory Authority (“FINRA”) and the Securities Exchange Commission (“SEC”). During 2016, the SEC conducted a routine examination of the CFS BD. At the conclusion of its examination, the SEC issued an Examination Report with certain findings, asking the Company’s regulated entity to improve its anti-money laundering program, record additional information on the Company’s transaction blotters, and record transactions on the Company’s transaction blotters that are performed at other companies. On November 28, 2016 the broker dealer made its latest response to the routine examination report. The broker dealer is awaiting the closing letter from the SEC and continues to work with its legal counsel with respect to any potential remaining issues. On May 19, 2017, FINRA, the regulatory authority for the Company’s subsidiary Capital Financial Services, Inc. (the broker dealer subsidiary) issued its post examination report for the FINRA examination of the broker dealer subsidiary which began in April 2017. In that report FINRA noted exceptions in its risk assessment of the firm in the following areas: 1) the need for an adequate anti-money laundering program to detect and report suspicious activity, 2) three instances of procedural inadequacy regarding due diligence or suitability with respect to REIT offerings participated in by the broker dealer subsidiary and 3) one instance of inadequate disclosure to a customer of variable annuity fees by a registered representative of the broker dealer subsidiary. These items remain as open items with FINRA pending final resolution of the examination. The broker dealer subsidiary is working to resolve the forgoing exception issues with FINRA as well as in its procedural processes.

12. BUILDING PURCHASE

12. BUILDING PURCHASE	6 Months Ended
	Jun. 30, 2017
Building Purchase
NOTE 12 - BUILDING PURCHASE	On November 16, 2016, the Company closed on the acquisition of a commercial office building and associated property (the “Office Building”) located at 1821 Burdick Expressway West, Minot, North Dakota from Evanmark Enterprises, LLC, an entity unrelated to the Company. The contract purchase price for the Office Building was $975,000, exclusive of closing costs of $9,091, with all built-in fixtures and other furniture, fixtures and equipment in the building remaining with the property. The Company paid $509,091 at closing toward the purchase price of the Office Building with the remaining $475,000 of the purchase price financed by a commercial real estate loan from American Bank Center (“American Bank”) in the principal amount of $675,000, $475,000 of which is being applied to the purchase price of the Office Building and $200,000 of which was utilized for renovations to the building. The loan will carry a fixed interest rate of 4.879% per annum for five (5) years with the rate to be adjusted at the end of the five (5) year period based on the Wall Street Journal Prime interest rate plus 1.759%. American Bank has a first priority mortgage on the Office Building. On April 7, 2017 the Company was notified by the City of Minot that the address on this property was changing from 1801 Burdick Expressway W to 1821 Burdick Expressway W. Effective in June 2017, the Company’s broker-dealer subsidiary began paying rent to the Company of $8,500 per month on a month-to-month basis for a portion of the office facility owned by the Company. The broker-dealer utilizes approximately 5,817 square feet of office space for its operations out of a total of 6,188 square feet in the office facility. Rent Income and Rent Expense related to this Company/Subsidiary arrangement are eliminated in the consolidated financial statements.

13. SEGMENT REPORTING

13. SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
NOTE 13 - SEGMENT REPORTING	The Company organizes its current business units into three reportable segments: broker dealer services, natural resources (discontinued operation as of December 31, 2016), and holding company. The broker-dealer services segment distributes securities and insurance products to retail investors through a network of registered representatives through its wholly-owned subsidiary, Capital Financial Services, Inc. (“CFS”), a Wisconsin corporation. The natural resources segment sought opportunities related to natural resources in the United States, including petroleum, natural gas and/or other minerals, water resources and land through its wholly-owned subsidiary, Capital Natural Resources, Inc. (“CNR”), a Colorado corporation. As of December 31, 2016, this operation met the definition of discontinued operation. The holding company encompasses cost associated with business development and acquisitions, dispositions of subsidiary entities and results of discontinued operations, dividend income and recognized gains or losses. The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. The historical results of Capital Natural Resources, Inc. have been reflected as discontinued operations. Holding Broker-Dealer As of, and for the three months ended: Company Services Total June 30, 2017 Commissions and fee income - 3,646,071 3,646,071 Other fee income - 111,071 111,071 Other income 36 4,101 4,137 Rent income 8,500 - 8,500 Interest expense (6,466 ) - (6,466 ) Depreciation 13,493 10,516 24,009 Income (loss) before income tax benefit (expense) (206,331 ) 131,543 (74,788 ) Income tax benefit (expense) 106,851 (52,268 ) 54,583 Net income (loss) of continued operations (99,480 ) 79,275 (20,205 ) Segment assets of continued operations 1,833,585 3,013,306 4,846,891 Holding Broker-Dealer As of, and for the three months ended: Company Services Total June 30, 2016 Commissions and fee income - 4,321,334 4,321,334 Other fee income - 49,911 49,911 Other income (expense) (3,394 ) (8,402 ) (11,796 ) Depreciation 688 11,158 11,846 Income (loss) before income tax benefit (expense) (90,443 ) 71,973 (18,470 ) Income tax benefit (expense) 32,419 (42,144 ) (9,725 ) Net income (loss) of continued operations (58,024 ) 29,829 (28,195 ) Segment assets of continued operations 1,815,344 3,139,641 4,954,985 Holding Broker-Dealer As of, and for the six months ended: Company Services Total June 30, 2017 Commissions and fee income - 7,470,860 7,470,860 Other fee income - 209,719 209,719 Other income 95 4,589 4,684 Rent income 8,500 - 8,500 Interest expense (12,260 ) - (12,260 ) Depreciation 14,525 20,882 35,407 Income (loss) before income tax benefit (expense) (322,817 ) 191,639 (131,178 ) Income tax benefit (expense) 117,005 (75,826 ) 41,179 Net income (loss) of continued operations (205,812 ) 115,813 (89,999 ) Segment assets of continued operations 1,833,585 3,013,306 4,846,891 Holding Broker-Dealer As of, and for the six months ended: Company Services Total June 30, 2016 Commissions and fee income - 8,419,916 8,419,916 Other fee income - 119,434 119,434 Other income (3,499 ) 2,618 (881 ) Depreciation 1,222 22,341 23,563 Income (loss) before income tax benefit (expense) (190,259 ) 108,842 (81,417 ) Income tax benefit (expense) 41,428 (56,778 ) (15,350 ) Net income (loss) of continued operations (148,831 ) 52,064 (96,767 ) Segment assets of continued operations 1,815,344 3,139,641 4,954,985

14. LEGAL PROCEEDINGS

14. LEGAL PROCEEDINGS	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
NOTE 14 - LEGAL PROCEEDINGS	The Company operates in a legal and regulatory environment that exposes it to potentially significant litigation risks. Issuers of certain alternative products sold by the Company are in Bankruptcy or may have other financial difficulties. As a result of such alleged failings of alternative products and the uncertainty of client recovery from the various product issuers, the Company is subject to several legal and/or arbitration proceedings. These proceedings include customer suits, investments alleged to be unsuitable, and bankruptcies and other issues brought by claimants. The Company vigorously contests the allegations of the various proceedings and believes that there are multiple meritorious legal and fact based defenses in these matters. Such cases are subject to many uncertainties, and their outcome is often difficult to predict, including the impact on operations or on the financial statements, particularly in the earlier stages of a case. The Company makes provisions for cases brought against it when, in the opinion of management after seeking legal advice, it is probable that a liability exists, and the amount can be reasonably estimated. The current proceedings are subject to uncertainties and, as such, the Company is unable to estimate the possible loss or range of loss that may result from the outcome of these cases; however, results in these cases that are against the interests of the Company could have a severe negative impact on the financial position of the Company. As of June 30, 2017, the Company is a defendant in six on-going suits or arbitrations as discussed above. In April 2017, the Company issued payment of $62,673 on one of the above matters as a deposit with the court pursuant to a court order and recorded a $63,000 accrual for the matter as of December 31, 2016. On July 20, 2017, the court granted the plaintiff’s additional motion for fees on fees in the same matter in the amount of approximately $78,000. Although payment of fees is held in abeyance, pending final resolution of the action, the award of the $78,000 in fees against the Company was booked as an accrued liability as of June 30, 3017. The Company will continue to defend the case. On April 5, 2011, several broker-dealers and their principals/officers, including the Company and John Carlson, President and Chief Compliance Officer, filed a lawsuit in the Superior Court of California for Orange County against Mayer Hoffman McCann, P.C. (“Mayer Hoffman”) captioned Signature Financial Group, Inc., et al, (“Signature”) v. Mayer Hoffman McCann, P.C., et al. The lawsuit arose out of reviews of the financial statements of Medical Capital Holdings, Inc. (“Medical Capital”) by Mayer Hoffman. In June 2009, Medical Capital was sued by the U.S. Securities and Exchange Commission (“SEC” or “Commission”), a finding was made that Medical Capital was conducting a “Ponzi scheme” and a receiver was appointed to liquidate Medical Capital. The plaintiffs in the Signature lawsuit are broker-dealers and principals of broker-dealers that sold Medical Capital investments to their clients. These plaintiffs sought to recover damages from Mayer Hoffman for the losses and expenses they incurred as a result of the Medical Capital financial deceptions and resulting expenses and losses to the plaintiffs. Specific claims asserted and relief requested included fraud-intentional misrepresentation of fact/concealment of fact; negligent misrepresentation; equitable indemnity and declaratory relief. On September 23, 2014, the Plaintiffs entered into a Confidential Settlement and Mutual Release Agreement (the “Settlement Agreement”) with Mayer Hoffman and entities affiliated with Mayer Hoffman to settle the Plaintiffs’ claims against Mayer Hoffman and all affiliated parties of Mayer Hoffman. The parties acknowledged that as between the Company and Mr. Carlson, one hundred percent (100%) of the settlement proceeds paid to them was for the alleged damage or harm to goodwill (and loss of goodwill). The settlement proceeds were received on December 4, 2014 and charged against goodwill carried on the consolidated financial statements of Capital Financial Holdings, Inc., the parent of the Company. In a matter related to the Settlement Agreement, on or about October 6, 2014, the Company filed a lawsuit seeking declaratory judgment against its former errors and omission insurance carrier - Arch Specialty Insurance Company (“Arch”) - in the Circuit Court of Wisconsin for Milwaukee County (Capital Financial Services, Inc. v. Arch Specialty Insurance Company). On or about November 24, 2014, Arch filed counterclaims against the Company. The actions were for declaratory relief in connection with a dispute over whether Arch was entitled to any portion of the settlement proceeds that the Company received in exchange for dismissing the lawsuit with Mayer Hoffman. On approximately September 14, 2016 the Company and Arch agreed to settle the matter, on October 14, 2016 a Stipulation and Order for Dismissal was filed with the Court and on October 24, 2016 the Court entered an order dismissing the case, including all claims, counterclaims and third party claims with prejudice with no costs assessed to any party.

15. SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
Weighted Average Grant Date Fair Value, Exercised
NOTE 15 - SUBSEQUENT EVENTS	None.

1. BASIS OF PRESENTATION (Polic

1. BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Oil and Gas Properties	CNR follows the full cost method of accounting for crude oil and natural gas operations whereby all costs related to the exploration and development of crude oil and natural gas properties are capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Capitalized costs are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves as determined by independent petroleum engineers. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. For the six months ended June 30, 2017, depletion expense was zero. CNR held leasehold interests on acreage located in Gonzalas and Taylor County, Texas, Lincoln County, Colorado and Divide and Williams County, North Dakota. Proceeds from property sales will generally be credited to the full cost pool with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. In the first quarter of 2017, these assets were sold for $66,200. The Company assesses all items classified as unproved property on an annual basis, or if certain circumstances exist, more frequently, for possible impairment or reduction in value. In the first quarter of 2017, non-producing and unproved properties in Lincoln County, Colorado and Divide and Williams County, North Dakota held by the Company were disposed of in transfers deemed effective as of December 31, 2016 by assignment documents in accordance with established practice in the oil and gas industry.
Oil and Gas Revenue	The Company recognizes oil and gas revenue for only its ownership percentage of total production under the entitlement method. There was no imbalance as of June 30, 2017.
Asset Retirement Obligations	Asset retirement obligation is included in other noncurrent liabilities and relates to future costs associated with the plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on estimated remaining lives of those wells based on reserve estimates, external estimates to plug and abandon the wells in the future, inflation, credit adjusted discount rates and federal and state regulatory requirements. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. As of June 30, 2017, asset retirement obligations were zero and for the six months ended June 30, 2017 accretion expense was zero. As of December 31, 2016, the natural resource segment met the definition of discontinued operations.

4. DISCONTINUED OPERATIONS (Tab

4. DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Discontinued Operations Tables
Discontinued operations assets and liabilities	2017 2016 Current Assets Accounts receivable $ - 5,626 Current Long term receivable - Prepaids - 749 Total current assets $ - 6,375 Property and Equipment Oil and natural gas properties, Full Cost Method of Accounting $ - 61,829 Less accumulated depletion - (29,354 ) Equipment - 4,690 Less accumulated depreciation - (816 ) Other property holdings - 36,267 Net property and equipment $ - 72,616 Total Assets $ - 78,991 Current liabilities Accounts payable $ - 7,434 Total current liabilities $ - 7,434 Noncurrent liabilities Asset retirement obligation $ - 2,907 Total noncurrent liabilities $ - 2,907 Stockholder’s Equity Common Stock $ - 300,400 Accumulated deficit - (231,750 ) Total stockholder’s equity $ - 68,650 Total liabilities and stockholder’s equity $ - 78,991
Summary of the impairment calculation on the discontinued assets held for sale	2017 2016 Operating Revenues Oil lease income $ - 19,460 Total operating revenue $ - 19,460 Operating Expenses Compensation and benefits $ - 15,158 Lease operating expense - 14,171 General and administrative - 235 Depletion - 4,990 Depreciation - 161 Loss from discontinued operations (22,315 ) Total operating expenses $ (22,315 ) 34,715 Operating loss $ (22,315 ) (15,255 ) Loss of discontinued operations before income tax expense $ (22,315 ) (15,255 ) Income tax benefit $ - 7,107 Net loss $ (22,315 ) (8,148 ) 2017 2016 Operating Revenues Oil lease income $ - 33,136 Total operating revenue $ - 33,136 Operating Expenses Compensation and benefits $ - 32,935 Lease operating expense - 28,639 General and administrative - 2,514 Depletion - 10,442 Depreciation - 281 Loss from discontinued operations (22,315 ) Total operating expenses $ (22,315 ) 74,811 Operating loss $ (22,315 ) (41,675 ) Other income (expenses) Interest expense $ - (847 ) Interest income - 16,206 Total other income $ - 15,359 Loss of discontinued operations before income tax expense $ (22,315 ) (26,316 ) Income tax benefit $ - 11,443 Net loss $ (22,315 ) (14,873 )

7. STOCK WARRANTS, STOCK SPLI23

7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Option activity	Number of Options Weighted Average Exercise Price per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding on January 1, 2016 207 $ 8,692 $ 4,435 $ - Granted - - - Exercised - - - Canceled (39 ) - - Outstanding on December 31, 2016 168 $ 5,000 $ 3,844 $ - Granted - - - Exercised - - - Canceled (1 ) - - Outstanding on June 30, 2017 167 $ 4,538 $ 4,190 $ -

9. EARNINGS PER SHARE (Tables)

9. EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ (20,205 ) (28,195 ) Less: Preferred Stock Dividends Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ (20,205 ) 1,241 (16 ) (28,195 ) 1,241 $ (23 ) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ (89,999 ) (96,767 ) Less: Preferred Stock Dividends Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ (89,999 ) 1,241 (73 ) (96,767 ) 1,241 $ (78 )

13. SEGMENT REPORTING (Tables)

13. SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting	Holding Broker-Dealer As of, and for the three months ended: Company Services Total June 30, 2017 Commissions and fee income - 3,646,071 3,646,071 Other fee income - 111,071 111,071 Other income 36 4,101 4,137 Rent income 8,500 - 8,500 Interest expense (6,466 ) - (6,466 ) Depreciation 13,493 10,516 24,009 Income (loss) before income tax benefit (expense) (206,331 ) 131,543 (74,788 ) Income tax benefit (expense) 106,851 (52,268 ) 54,583 Net income (loss) of continued operations (99,480 ) 79,275 (20,205 ) Segment assets of continued operations 1,833,585 3,013,306 4,846,891 Holding Broker-Dealer As of, and for the three months ended: Company Services Total June 30, 2016 Commissions and fee income - 4,321,334 4,321,334 Other fee income - 49,911 49,911 Other income (expense) (3,394 ) (8,402 ) (11,796 ) Depreciation 688 11,158 11,846 Income (loss) before income tax benefit (expense) (90,443 ) 71,973 (18,470 ) Income tax benefit (expense) 32,419 (42,144 ) (9,725 ) Net income (loss) of continued operations (58,024 ) 29,829 (28,195 ) Segment assets of continued operations 1,815,344 3,139,641 4,954,985 Holding Broker-Dealer As of, and for the six months ended: Company Services Total June 30, 2017 Commissions and fee income - 7,470,860 7,470,860 Other fee income - 209,719 209,719 Other income 95 4,589 4,684 Rent income 8,500 - 8,500 Interest expense (12,260 ) - (12,260 ) Depreciation 14,525 20,882 35,407 Income (loss) before income tax benefit (expense) (322,817 ) 191,639 (131,178 ) Income tax benefit (expense) 117,005 (75,826 ) 41,179 Net income (loss) of continued operations (205,812 ) 115,813 (89,999 ) Segment assets of continued operations 1,833,585 3,013,306 4,846,891 Holding Broker-Dealer As of, and for the six months ended: Company Services Total June 30, 2016 Commissions and fee income - 8,419,916 8,419,916 Other fee income - 119,434 119,434 Other income (3,499 ) 2,618 (881 ) Depreciation 1,222 22,341 23,563 Income (loss) before income tax benefit (expense) (190,259 ) 108,842 (81,417 ) Income tax benefit (expense) 41,428 (56,778 ) (15,350 ) Net income (loss) of continued operations (148,831 ) 52,064 (96,767 ) Segment assets of continued operations 1,815,344 3,139,641 4,954,985

4. DISCONTINUED OPERATIONS (Det

4. DISCONTINUED OPERATIONS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Total current assets	$ 0	$ 6,375
PROPERTY AND EQUIPMENT
Net property and equipment	0	72,616
CURRENT LIABILITIES
Total current liabilities	0	7,434
NON CURRENT LIABILITIES
Total noncurrent liabilities	0	2,907
Capital Natural Resources
CURRENT ASSETS
Accounts receivable	0	5,626
Current Long term receivable	0	0
Prepaids	0	749
Total current assets	0	6,375
PROPERTY AND EQUIPMENT
Oil and Natural Gas Properties, Full Cost Method of Accounting	0	61,829
Less accumulated depletion	0	(29,354)
Equipment	0	4,690
Less accumulated depreciation	0	(816)
Other property holdings	0	36,267
Net property and equipment	0	72,616
TOTAL ASSETS	0	78,991
CURRENT LIABILITIES
Accounts payable		7,434
Total current liabilities	0	7,434
NON CURRENT LIABILITIES
Asset retirement obligation	0	2,907
Total noncurrent liabilities	0	2,907
STOCKHOLDERS' EQUITY
Common stock	0	300,400
Accumulated deficit	0	(231,750)
TOTAL STOCKHOLDERS' EQUITY	0	68,649
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 0	$ 78,991

4. DISCONTINUED OPERATIONS (D27

4. DISCONTINUED OPERATIONS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
OTHER INCOME (EXPENSES)
Net loss	$ 0	$ (8,148)	$ (22,315)	$ (14,873)
Capital Natural Resources
OPERATING REVENUES
Oil lease income	0	19,460	0	33,136
Total revenue	0	19,460	0	33,136
OPERATING EXPENSES
Compensation and benefits	0	15,158	0	32,935
Lease operating expense	0	14,171	0	28,639
General and administrative	0	235	0	2,514
Depletion expense	0	4,990	0	10,442
Depreciation	0	161	0	281
Loss from discontinued operations	(22,315)	0	(22,315)	0
Total operating expenses	(22,315)	34,715	(22,315)	74,811
Operating loss	(22,315)	(15,255)	(22,315)	(41,675)
OTHER INCOME (EXPENSES)
Interest expense			0	(847)
Interest income			0	16,206
Total other income (expenses)			0	15,359
Loss of discontinued operations before income tax expense	(22,315)	(15,255)	(22,315)	(26,316)
Income tax (expense) benefit	0	7,107	0	11,443
Net loss	$ (22,315)	$ (8,148)	$ (22,315)	$ (14,873)

6. LINE OF CREDIT (Details Narr

6. LINE OF CREDIT (Details Narrative)	6 Months Ended
	Jun. 30, 2017USD ($)
Line of Credit Facility [Abstract]
Interest expense	$ 0
Outstanding line of credit	$ 0

7. STOCK WARRANTS, STOCK SPLI29

7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Summary of option activity
Number of options, Outstanding Beginning	168	207
Number of options, Granted	0	0
Number of options, Exercised	0	0
Number of options, Canceled	(1)	39
Number of options, Outstanding Ending	167	168
Weighted Average Exercise Price per Share, Beginning	$ 5,000	$ 8,692
Weighted Average Exercise Price per Share, Granted	0	0
Weighted Average Exercise Price per Share, Exercised	0	0
Weighted Average Exercise Price per Share, Canceled	0	0
Weighted Average Exercise Price per Share, Ending	4,538	5,000
Weighted Average Grant Date Fair Value, Beginning	3,844	4,435
Weighted Average Grant Date Fair Value, Granted	0	0
Weighted Average Grant Date Fair Value, Exercised	0	0
Weighted Average Grant Date Fair Value, Canceled	0	0
Weighted Average Grant Date Fair Value, Ending	$ 4,190	$ 3,844
Aggregate Intrinsic Value, Beginning	$ 0	$ 0
Aggregate Intrinsic Value, Granted	0	0
Aggregate Intrinsic Value, Exercised	0	0
Aggregate Intrinsic Value, Canceled	0	0
Aggregate Intrinsic Value, Ending	$ 0	$ 0

7. STOCK WARRANTS, STOCK SPLI30

7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details Narrative) - shares	Jun. 30, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Exercisable options	167	168

8. INCOME TAXES (Details Narrat

8. INCOME TAXES (Details Narrative)	6 Months Ended
	Jun. 30, 2017USD ($)
Income Tax Disclosure [Abstract]
Stock compensation recorded through tax expense	$ 434,610
Federal net operation loss carry forward	$ 399,000

9. EARNINGS PER SHARE (Details)

9. EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Income (Loss) from continuing operations	$ (20,205)	$ (28,195)	$ (89,999)	$ (96,767)
Basic and diluted shares outstanding	1,241	1,241	1,241	1,241
Continuing Operations Earnings Per Share	$ (16)	$ (23)	$ (73)	$ (78)

9. EARNINGS PER SHARE (Details

9. EARNINGS PER SHARE (Details Narrative)	Jun. 30, 2017$ / sharesshares
Options and warrants to purchase Common stock, outstanding | shares	377
Minimum [Member]
Options and warrants exercise price	$ 3,500
Maximum [Member]
Options and warrants exercise price	$ 14,300

13. SEGMENT REPORTING (Details)

13. SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Commissions and fee income	$ 3,646,071	$ 4,321,334	$ 7,470,860	$ 8,419,916
Other fee income	111,071	49,911	209,719	119,434
Other income	4,137	(11,796)	4,684	(881)
Rent income	8,500		8,500	0
Interest expense	(6,466)		(12,260)	947
Depreciation	24,009	11,846	35,407	23,563
Income (loss) before income tax benefit (expense)	(74,788)	(18,470)	(131,178)	(81,417)
Income tax benefit (expense)	54,583	(9,725)	41,179	(15,350)
Net income (loss) of continued operations	(20,205)	(28,195)	(89,999)	(96,767)
Segment assets	4,846,891	4,954,985	4,846,891	4,954,985	$ 4,954,985
Holding Company
Commissions and fee income	0	0	0	0
Other fee income	0	0	0	0
Other income	36	(3,394)	95	(3,499)
Rent income	8,500		8,500
Interest expense	(6,466)		(12,260)
Depreciation	13,493	688	14,525	1,222
Income (loss) before income tax benefit (expense)	(206,331)	(90,443)	(322,817)	(190,259)
Income tax benefit (expense)	106,851	32,419	117,005	41,428
Net income (loss) of continued operations	(99,480)	(58,024)	(205,812)	(148,831)
Segment assets	1,833,585	1,815,344	1,833,585	1,815,344
Broker-Dealer Services
Commissions and fee income	3,646,071	4,321,334	7,470,860	8,419,916
Other fee income	111,071	49,911	209,719	119,434
Other income	4,101	(8,402)	4,589	2,618
Rent income	0		0
Interest expense	0		0
Depreciation	10,516	11,158	20,882	22,341
Income (loss) before income tax benefit (expense)	131,543	71,973	191,639	108,842
Income tax benefit (expense)	(52,268)	(42,144)	(75,826)	(56,778)
Net income (loss) of continued operations	79,275	29,829	115,813	52,064
Segment assets	$ 3,013,306	$ 3,139,641	$ 3,013,306	$ 3,139,641