Capital Financial (CPFH) 10-Q 20 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 17, 2018
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, 2018
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	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 2,088,196	$ 1,794,896
Accounts receivable (net of an allowance of $24,000 for 2018 and 2017)	1,759,520	1,824,995
Prepaids	16,922	55,466
Total current assets	3,864,638	3,675,357
PROPERTY AND EQUIPMENT
Land	98,409	98,409
Building	1,102,148	1,096,946
Furniture, fixtures and equipment	347,755	348,363
Less accumulated depreciation	(308,231)	(271,747)
Net property and equipment	1,240,081	1,271,971
OTHER ASSETS
Deferred tax asset – non-current	241,494	187,931
Total other assets	241,494	187,931
TOTAL ASSETS	5,346,213	5,135,259
CURRENT LIABILITIES
Accounts payable and accrued expenses	400,841	496,875
Commissions payable	1,984,859	2,029,467
Income taxes payable	132,658	10,859
Other current liabilities	1,202	1,749
Total current liabilities	2,519,560	2,538,951
NON CURRENT LIABILITIES
Building mortgage	656,946	672,426
Total noncurrent liabilities	656,946	672,426
TOTAL LIABILITIES	3,176,506	3,211,377
STOCKHOLDERS' EQUITY
Series A preferred stock – 5,000,000 shares authorized, $.0001 par value; 3,050,000 and 3,050,000 shares issued and 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	(8,278,049)	(8,523,873)
Less Treasury stock, 3,050,000 preferred shares at $0.4262	(1,300,000)	(1,300,000)
TOTAL STOCKHOLDERS' EQUITY	2,169,707	1,923,883
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,346,213	$ 5,135,259

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
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	3,050,000	3,050,000
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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
OPERATING REVENUES
Fee income	$ 576,017	$ 396,812	$ 1,026,029	$ 712,603
Commissions	3,182,378	3,249,259	6,656,742	6,758,257
Other fee income	22,579	111,071	43,676	209,719
Total revenue	3,780,974	3,757,142	7,726,447	7,680,579
EXPENSES
Compensation and benefits	313,818	371,528	632,429	758,025
Commission expense	3,130,207	3,062,434	6,380,851	6,345,008
General and administrative expenses	60,578	380,130	283,418	674,241
Depreciation	18,233	24,009	36,484	35,407
Total operating expenses	3,522,836	3,838,101	7,333,182	7,812,681
INCOME (LOSS) OF CONTINUING OPERATIONS	258,138	(80,959)	393,265	(132,102)
OTHER INCOME/EXPENSES
Interest expense	(8,098)	(6,466)	(16,270)	(12,260)
Other income-rent	1,200	8,500	1,200	8,500
Other income-interest	308	4,137	319	4,684
Total other income (expense)	(6,590)	6,171	(14,751)	924
INCOME (LOSS) OF CONTINUING OPERATIONS BEFORE INCOME TAX	251,548	(74,788)	378,514	(131,178)
INCOME TAX BENEFIT (EXPENSE)	(86,241)	54,583	(132,690)	41,179
NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS	165,307	(20,205)	245,824	(89,999)
DISCONTINUED OPERATIONS	0	0	0	(22,315)
NET INCOME (LOSS)	$ 165,307	$ (20,205)	$ 245,824	$ (112,314)
NET INCOME (LOSS) PER COMMON SHARE, BASIC AND DILUTED:
Continuing	$ 133	$ (16)	$ 198	$ (73)
Discontinued	$ 0	$ 0	$ 0	$ (18)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
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, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 245,824	$ (112,314)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation	36,484	35,407
Depletion	0	(29,354)
Provision (benefit) for deferred income taxes	0	(48,339)
Effects on operating cash flows due to changes in:
Accounts receivable	65,475	409,115
Income taxes payable (receivable)	121,799	(6,832)
Prepaids	38,544	13,368
Severance escrow	(53,563)	(128)
Accounts payable	(96,035)	11,317
Commissions payable	(44,608)	(385,575)
Other liabilities	(546)	188,217
Net cash provided by (used for) operating activities	313,374	74,882
CASH FLOWS FROM INVESTING ACTIVITIES
Disposal (Purchase) of property and equipment	608	(21,136)
Improvements to building	(5,202)	(220,756)
Reduction in Mortgage Debt	(15,480)	0
Deductions to oil and gas properties	0	105,438
Net cash used for investing activities	(20,074)	(136,454)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings	0	200,000
Net cash provided by (used for) financing activities	0	200,000
NET [INCREASE/DECREASE] IN CASH AND CASH EQUIVALENTS	293,300	138,428
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,794,896	934,711
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,088,196	1,073,139
SUPPLEMENTAL SCHEDULE OF NON CASH INVESTING AND FINANCING ACTIVITIES:
Cash paid for interest on building mortgage	$ 16,270	$ 12,260

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
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 subsidiary Capital Financial Services, Inc. (“CFS”) (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, 2017, of Capital Financial Holdings, Inc., as filed with the SEC. The condensed consolidated balance sheet at December 31, 2017, 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, 2018, are not necessarily indicative of operating results for the entire year.

2. ACCOUNTING PRONOUNCEMENTS IS

2. ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE	6 Months Ended
	Jun. 30, 2018
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 2017 Form 10-K filed on April 18, 2018. 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, 2018
Business Ventures
NOTE 3 - BUSINESS VENTURES	On June 9, 2014, the Company launched a new wholly-owned operating subsidiary, Capital Natural Resources, Inc. (“CNR”). In the first quarter of 2017, all of the natural resource assets of CNR were disposed of. 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, 2018
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: 2018 2017 Current Assets Accounts receivable $ – $ (19,168 ) Current Long term receivable – – Prepaids – – Total current assets $ – $ (19,168 ) Property and Equipment Oil and natural gas properties, Full Cost Method of Accounting $ – $ – Less accumulated depletion – – Equipment – – Less accumulated depreciation – – Other property holdings – – Net property and equipment $ – $ – Total Assets $ – $ (19,168 ) Current liabilities Accounts payable $ – $ 45 Total current liabilities $ – $ 45 Noncurrent liabilities Asset retirement obligation $ – – Total noncurrent liabilities $ – $ – Stockholder’s Equity Common Stock $ – $ 270,400 Accumulated deficit – (289,613 ) Total stockholder’s equity $ – $ (19,213 ) Total liabilities and stockholder’s equity $ – $ (19,168 ) The results of operations of Capital Natural Resources, Inc. are included in the Company’s Consolidated Statements of Operations as discontinued operations. The summarized income for the six months ended June 30, 2018 and June 30, 2017 from discontinued operations is presented below: 2018 2017 Operating Revenues Oil lease income $ – $ 13,676 Total operating revenue $ – 13,676 Operating Expenses Compensation and benefits $ – – Lease operating expense – – General and administrative – – Depletion – – Depreciation – – Loss from discontinued operations – (22,315 ) Total operating expenses $ – $ (22,315 ) Operating loss $ – $ (22,315 ) Other income (expenses) Interest expense $ – $ – Interest income – – Total other income (expenses) $ – $ – Loss of discontinued operations before income tax expense $ – $ (22,315 ) Income tax (expense) benefit $ – – Net loss $ – (22,315 ) 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. STOCK WARRANTS, STOCK SPLITS

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
NOTE 5 - 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, 2018 and 2017. Changes are due to the stock buyback and reverse stock split. Option activity for the twelve months ended December 31, 2017 and the six months ended June 30, 2018 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, 2017 207 $ 8,692 $ 4,435 $ – Granted – – – Exercised – – – Canceled 39 – – Outstanding on December 31, 2017 168 $ 5,000 $ 3,844 $ – Granted – – – Exercised – – – Canceled 1 – – Outstanding on June 30, 2018 167 $ 4,538 $ 4,190 $ - Exercisable options totaled 168 at December 31, 2017 and totaled 167 at June 30, 2018.

6. INCOME TAXES

6. INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
NOTE 6 - 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. At June 30, 2018, the Company has approximately $398,000 in federal net operation loss carry forward which begins to expire in 2036.

7. EARNINGS PER SHARE

7. EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
NOTE 7 - 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: Six Months Ended June 30, 2018 Six Months Ended June 30, 2018 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ 245,824 $ (89,999 ) Less: Preferred Stock Dividends – Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ 245,924 1,241 $ 189 $ (89,999 ) 1,241 $ (73 ) Options and warrants to purchase 377 common shares at exercise prices between $3,500 and $14,300 were outstanding at June 30, 2018, but were not included in the computation of diluted earnings per share for the quarter ending June 30, 2018 and June 30, 2017, because their effect was anti-dilutive.

8. RULE 4110 (c)(1)

8. RULE 4110 (c)(1)	6 Months Ended
	Jun. 30, 2018
Rule 4,110
NOTE 8 - 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.

9. REGULATORY MATTERS

9. REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2018
Regulatory Matters
NOTE 9 - 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 the second quarter of 2018, FINRA conducted a routine examination of the broker dealer segment which is not yet finished.

10. BUILDING PURCHASE

10. BUILDING PURCHASE	6 Months Ended
	Jun. 30, 2018
Building Purchase
NOTE 10 - 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 1801 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 was applied to the purchase price of the Office Building and $200,000 of which was utilized for renovations to the building. Renovations to the building were made in 2017 and 2018 to bring the total cost of the land and building to $1,200,557 at June 30, 2018. The loan carries 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.

11. SEGMENT REPORTING

11. SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
NOTE 11 - SEGMENT REPORTING	The Company organizes its current business units into two reportable segments: broker dealer services 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 holding company encompasses cost associated with its office building, 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. As of, and for the six months ended June 30, 2018 Holding Company Broker-Dealer Services Total Commissions and fee income $ – 7,682,771 7,682,771 Other fee income $ – 43,676 43,676 Interest expense $ 16,270 – 16,270 Depreciation $ 17,375 19,109 36,484 Income (loss) before income tax benefit (expense) $ (137,693 ) 516,207 378,514 Income tax benefit (expense) $ (5,015 ) 137,705 132,690 Net income (loss) of continued operations $ (132,678 ) 378,502 245,824 Segment assets of continued operations $ 1,733,301 3,612,912 5,346,213

12. LEGAL PROCEEDINGS

12. LEGAL PROCEEDINGS	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
NOTE 12 - 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, 2018, the Company was a defendant in six on-going suits or arbitrations as discussed above.

4. DISCONTINUED OPERATIONS (Tab

4. DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2018
Discontinued Operations Tables Abstract
Schedule of discontinued operations	2018 2017 Current Assets Accounts receivable $ – $ (19,168 ) Current Long term receivable – – Prepaids – – Total current assets $ – $ (19,168 ) Property and Equipment Oil and natural gas properties, Full Cost Method of Accounting $ – $ – Less accumulated depletion – – Equipment – – Less accumulated depreciation – – Other property holdings – – Net property and equipment $ – $ – Total Assets $ – $ (19,168 ) Current liabilities Accounts payable $ – $ 45 Total current liabilities $ – $ 45 Noncurrent liabilities Asset retirement obligation $ – – Total noncurrent liabilities $ – $ – Stockholder’s Equity Common Stock $ – $ 270,400 Accumulated deficit – (289,613 ) Total stockholder’s equity $ – $ (19,213 ) Total liabilities and stockholder’s equity $ – $ (19,168 ) 2018 2017 Operating Revenues Oil lease income $ – $ 13,676 Total operating revenue $ – 13,676 Operating Expenses Compensation and benefits $ – – Lease operating expense – – General and administrative – – Depletion – – Depreciation – – Loss from discontinued operations – (22,315 ) Total operating expenses $ – $ (22,315 ) Operating loss $ – $ (22,315 ) Other income (expenses) Interest expense $ – $ – Interest income – – Total other income (expenses) $ – $ – Loss of discontinued operations before income tax expense $ – $ (22,315 ) Income tax (expense) benefit $ – – Net loss $ – (22,315 )

5. STOCK WARRANTS, STOCK SPLI19

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2017 207 $ 8,692 $ 4,435 $ – Granted – – – Exercised – – – Canceled 39 – – Outstanding on December 31, 2017 168 $ 5,000 $ 3,844 $ – Granted – – – Exercised – – – Canceled 1 – – Outstanding on June 30, 2018 167 $ 4,538 $ 4,190 $ -

7. EARNINGS PER SHARE (Tables)

7. EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of earnings per share	Six Months Ended June 30, 2018 Six Months Ended June 30, 2018 Numerator Denominator Per Share Amount Numerator Denominator Per Share Amount Net (Loss) Income of continuing operations $ 245,824 $ (89,999 ) Less: Preferred Stock Dividends – Income of Continuing Operations Available to Common Shareholders – Basic and diluted Earnings per Share $ 245,924 1,241 $ 189 $ (89,999 ) 1,241 $ (73 )

11. SEGMENT REPORTING (Tables)

11. SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of segment reporting	As of, and for the six months ended June 30, 2018 Holding Company Broker-Dealer Services Total Commissions and fee income $ – 7,682,771 7,682,771 Other fee income $ – 43,676 43,676 Interest expense $ 16,270 – 16,270 Depreciation $ 17,375 19,109 36,484 Income (loss) before income tax benefit (expense) $ (137,693 ) 516,207 378,514 Income tax benefit (expense) $ (5,015 ) 137,705 132,690 Net income (loss) of continued operations $ (132,678 ) 378,502 245,824 Segment assets of continued operations $ 1,733,301 3,612,912 5,346,213

4. DISCONTINUED OPERATIONS (Det

4. DISCONTINUED OPERATIONS (Details) - Capital Natural Resources - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Accounts receivable	$ 0	$ (19,168)
Current long term receivable	0	0
Prepaids	0	0
Total current assets	0	(19,168)
Property and Equipment
Oil and natural gas properties, Full Cost Method of Accounting	0	0
Less accumulated depletion	0	0
Equipment	0	0
Less accumulated depreciation	0	0
Other property holdings	0	0
Net property and equipment	0	0
Total Assets	0	(19,168)
Current liabilities
Accounts payable	0	45
Total current liabilities	0	45
Noncurrent liabilities
Asset retirement obligation	0	0
Total noncurrent liabilities	0	0
Stockholder’s Equity
Common stock	0	270,400
Accumulated deficit	0	(289,613)
Total stockholder’s equity	0	(19,213)
Total liabilities and stockholder’s equity	$ 0	$ (19,168)

4. DISCONTINUED OPERATIONS (D23

4. DISCONTINUED OPERATIONS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other income (expenses)
Net loss	$ 0	$ 0	$ 0	$ (22,315)
Capital Natural Resources
Operating Revenues
Oil lease income			0	13,676
Total revenue			0	13,676
Operating Expenses
Compensation and benefits			0	0
Lease operating expense			0	0
General and administrative			0	0
Depletion			0	0
Depreciation			0	0
Loss from discontinued operations			0	(22,315)
Total operating expenses			0	(22,315)
Operating loss			0	(22,315)
Other income (expenses)
Interest expense			0	0
Interest income			0	0
Total other income (expenses)			0	0
Loss of discontinued operations before income tax expense			0	(22,315)
Income tax (expense) benefit			0	0
Net loss			$ 0	$ (22,315)

5. STOCK WARRANTS, STOCK SPLI24

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
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, Ending	$ 0	$ 0

7. STOCK WARRANTS, STOCK SPLITS

7. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details Narrative) - shares	Jun. 30, 2018	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Exercisable options	167	167

6. INCOME TAXES (Details Narrat

6. INCOME TAXES (Details Narrative)	Jun. 30, 2018USD ($)
Income Tax Disclosure [Abstract]
Federal net operation loss carry forward	$ 398,000

7. EARNINGS PER SHARE (Details)

7. EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net (Loss) Income of continuing operations	$ 165,307	$ (20,205)	$ 245,824	$ (89,999)
Basic and diluted shares outstanding	1,241	1,241	1,241	1,241
Continuing Operations Earnings Per Share	$ 133	$ (16)	$ 198	$ (73)

7. EARNINGS PER SHARE (Details

7. EARNINGS PER SHARE (Details Narrative)	Jun. 30, 2018$ / 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

11. SEGMENT REPORTING (Details)

11. SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Commissions and fee income	$ 3,780,974	$ 3,757,142	$ 7,726,447	$ 7,680,579
Other fee income	22,579	111,071	43,676	209,719
Interest expense	8,098	6,466	16,270	12,260
Depreciation	18,233	24,009	36,484	35,407
Income (loss) before income tax benefit (expense)	251,548	(74,788)	378,514	(131,178)
Income tax benefit (expense)	(86,241)	54,583	(132,690)	41,179
Net income (loss) of continued operations	165,307	$ (20,205)	245,824	$ (89,999)
Segment assets of continued operations	5,346,213		5,346,213		$ 5,135,259
Holding Company
Commissions and fee income			0
Other fee income			0
Interest expense			16,270
Depreciation			17,375
Income (loss) before income tax benefit (expense)			(137,693)
Income tax benefit (expense)			5,015
Net income (loss) of continued operations			(132,678)
Segment assets of continued operations	1,733,301		1,733,301
Broker-Dealer Services
Commissions and fee income			7,682,771
Other fee income			43,676
Interest expense			0
Depreciation			19,109
Income (loss) before income tax benefit (expense)			516,207
Income tax benefit (expense)			(137,705)
Net income (loss) of continued operations			378,502
Segment assets of continued operations	$ 3,612,912		$ 3,612,912