Capital Financial (CPFH) 10-K 15 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 20, 2019
Reduction in goodwill related to UHFS acquisition (See Note 5-Business Acquisitions)
Entity Registrant Name	Capital Financial Holdings, Inc
Entity Central Index Key	0000944696
Document Type	10-K
Document Period End Date	Dec. 31, 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	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float		$ 493,200
Entity Common Stock, Shares Outstanding		1,241
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 1,833,079	$ 1,794,896
Accounts receivable (net of allowance for doubtful accounts of $24,000 for 2018 and 2017)	1,800,704	1,824,995
Prepaids	30,587	55,466
Current assets of discontinued operations	0	0
Total Current Assets	3,664,370	3,675,357
PROPERTY AND EQUIPMENT
Land	98,409	98,409
Building	1,102,148	1,096,946
Furniture, fixtures and equipment	350,429	348,363
Less accumulated depreciation	(343,800)	(271,747)
Property and equipment of discontinued operations	0	0
Net property and equipment	1,207,186	1,271,971
OTHER ASSETS
Deferred tax asset - non-current	270,414	187,931
Total other assets	270,414	187,931
TOTAL ASSETS	5,141,970	5,135,259
CURRENT LIABILITIES
Accounts payable and accrued expenses	302,512	496,875
Commissions payable	2,046,263	2,029,467
Income taxes payable	0	10,859
Other current liabilities	0	1,749
Total current liabilities	2,348,775	2,538,951
NON CURRENT LIABILITIES
Building mortgage	641,169	672,426
Loss contingency	555,000	0
Total noncurrent liabilities	1,196,169	672,426
TOTAL LIABILITIES	3,544,944	3,211,377
STOCKHOLDERS' EQUITY
Series A Preferred stock - 5,000,000 shares authorized, $.0001 par value; 3,050,000 shares issued and 0 outstanding	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	(8,850,730)	(8,523,873)
Less Treasury stock, 3,050,000 preferred shares at $0.4262	(1,300,000)	(1,300,000)
TOTAL STOCKHOLDERS' EQUITY	1,597,026	1,923,883
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,141,970	$ 5,135,259

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Allowance for doubtful accounts	$ 24,000	$ 24,000
STOCKHOLDERS' EQUITY
Series A Preferred stock, par value	$ .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
Trrasury stock, par value	$ 0.4262	$ 0.4262

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
OPERATING REVENUES
Fee income	$ 2,117,458	$ 1,616,970
Commission income	12,765,209	13,481,827
Other income	69,038	156,932
Other fee income	119,480	313,462
Total revenue	15,071,185	15,569,191
EXPENSES
Compensation and benefits	1,341,659	1,458,152
Commission expense	12,417,237	12,739,243
General and administrative expenses	818,873	1,114,473
Settlement expense	713,858	192,749
Depreciation	72,053	62,705
Loss on Disposal of Assets	0	4,195
Total operating expenses	15,363,680	15,571,517
INCOME (LOSS) OF CONTINUING OPERATIONS	(292,495)	(2,326)
OTHER INCOME (EXPENSES)
Interest income	733	0
Interest expense	(32,564)	(29,039)
Total other income (expenses)	(31,831)	(29,039)
INCOME (LOSS) OF CONTINUING OPERATIONS BEFORE INCOME TAX	(324,326)	(31,365)
INCOME TAX BENEFIT (EXPENSE)	28,889	(85,933)
NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS	(295,437)	(117,298)
DISCONTINUED OPERATIONS	0	(22,315)
NET INCOME (LOSS)	$ (295,437)	$ (139,613)
Net income (loss) per common share, basic and diluted:
Continuing	$ (238)	$ (95)
Discontinued	$ 0	$ (18)
Weighted average common shares outstanding:
Basic and diluted	1,241	1,241

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Preferred stock and additional paid-in capital	Common stock and additional paid-in capital	Accumulated Deficit	Treasury stock and additional paid-in capital	Total
Balance, beginning of year at Dec. 31, 2016	$ 1,525,000	$ 10,222,756	$ (8,322,211)	$ (1,300,000)	$ 2,125,545
Balance, Shares beginning of year at Dec. 31, 2016	3,050,000	1,241
Preferred stock issued	$ 0				0
Preferred stock issued, shares	0
Purchase of preferred stock	$ 0				0
Net income (loss)			(139,613)		(139,613)
Capital dividends			(62,050)		(62,050)
Balance, end of year at Dec. 31, 2017	$ 1,525,000	$ 10,222,756	(8,523,874)	(1,300,000)	1,923,883
Balance, shares end of year at Dec. 31, 2017	3,050,000	1,241
Net income (loss)			(295,437)		(295,437)
Capital dividends			(62,050)		(62,050)
Prior period adjustment			30,631		30,631
Balance, end of year at Dec. 31, 2018	$ 1,525,000	$ 10,222,756	$ (8,850,730)	$ (1,300,000)	$ 1,597,026
Balance, shares end of year at Dec. 31, 2018	3,050,000	1,241

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (295,437)	$ (139,613)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation	72,053	62,705
Provision (benefit) for deferred income taxes	(82,483)	229,611
Effects on operating cash flows due to changes in:
Accounts receivable	24,291	107,938
Income taxes payable (receivable)	(10,859)	672
Prepaids	24,879	12,618
Commissions Payable	(16,796)	1,505
Accounts Payable	(194,363)	203,888
Other liabilities	(1,749)	(18,649)
Loss contingency	555,000	0
Net cash provided by (used for) operating activities	108,128	460,675
CASH FLOWS FROM INVESTING ACTIVITIES
Disposal (Purchase) of property and equipment	(2,066)	54,840
Purchase of building	(5,202)	(221,264)
Net cash used for investing activities	(7,268)	(166,424)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	(62,050)	(62,050)
Proceeds from long-term borrowing	(31,257)	194,519
Net cash provided by (used for) financing activities	(93,307)	132,469
CASH ADJUSTMENT FROM CHANGE IN ACCOUNT CLASSIFICATION
Prior Period Adjustment to Cash	30,630	0
Net cash adjustment by reclassification of accounts	30,630	0
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	38,183	426,720
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1,794,896	1,368,176
CASH AND CASH EQUIVALENTS AT END OF YEAR	1,833,079	1,794,896
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for: Interest	32,564	29,039
Cash paid during the year for: Income taxes	$ 0	$ 10,187

1. NATURE OF OPERATIONS AND SIG

1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	The nature of operations and significant accounting policies of Capital Financial Holdings, Inc. and its Subsidiary are presented to assist in understanding the Company’s consolidated financial statements. Nature of operations Broker-Dealer Services The Company derives all of its operating revenues from Capital Financial Services, Inc. through investment advisory fees as well as commissions earned from sales of mutual funds, insurance products, and various other securities. CFS is a full-service brokerage firm. CFS is registered with the SEC as an investment advisor and broker-dealer and also with FINRA as a broker-dealer. CFS specializes in providing investment products and services to independent investment representatives, financial planners, and investment advisors and currently supports approximately 130 investment representatives and investment advisors. The Company operates under the provision of Paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission and, accordingly, is exempt from the remaining provisions of that rule. To the best of management’s knowledge and belief the Company met the identified exemption provisions from January 1, 2018 to December 31, 2018 without exception. Holding Company The Company encompasses cost associated with ownership of its office building, business development and acquisitions, dispositions of subsidiary entities and results of discontinued operations, dividend income and recognized gains or losses. Principles of consolidation Concentrations Use of estimates Fair Value of Financial Instruments Revenue recognition Cash and cash equivalents Clearing Deposits Accounts Receivable Goodwill Property and equipment Other assets Advertising Earnings per common share Income taxes Severance Escrow Concentration of Credit Risk Recent Accounting Developments 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): Leases ASU 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Revenue Recognition, ASU 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-17— Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-18— Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2017-01— Business Combinations (Topic 805): Clarifying the Definition of a Business.

2. CASH AND CASH EQUIVALENTS

2. CASH AND CASH EQUIVALENTS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
CASH AND CASH EQUIVALENTS	Cash and cash equivalents at December 31, 2018 and 2017 consist of checking and savings accounts of $1,559,482 and $1,461,706, respectively. At December 31, 2018 and 2017, the Company had severance escrow balances of $157,926 and $157,911, respectively. The Company’s severance escrow accounts are restricted cash held in third-party administered escrow accounts for the sole purpose of funding certain employee severance plans which are included in Cash and cash equivalents. The Company had deposit accounts with clearing firms of $25,392, $50,000 and $40,279 with Pershing, Dain and NSCC, respectively on December 31, 2018 and $100,000, $50,000 and $40,279, respectively on December 31, 2017 which are included in Cash and cash equivalents.

3. PROPERTY AND EQUIPMENT

3. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
PROPERTY AND EQUIPMENT	Property and equipment at December 31, 2018 and 2017, consists of the following: 2018 2017 Office furniture and equipment $ 350,429 $ 348,363 Land 98,409 98,409 Building 1,102,148 1,096,946 Accumulated depreciation (343,800 ) (271,747 ) $ 1,207,196 $ 1,271,971 Depreciation expense for continuing operations totaled $72,053 and $62,705 in 2018 and 2017, respectively.

4. INCOME TAXES

4. INCOME TAXES	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
INCOME TAXES	The provision for income taxes is based on earnings before income taxes reported for financial statement purposes and consisted of the following: 2018 2017 Current income tax expense: Federal $ – $ – State – 10,859 Total current tax expense $ – $ 10,859 Deferred tax expense: Federal $ (123,124 ) $ (123,124 ) State (18,468 ) (18,468 ) Total deferred tax expense $ (141,592 ) $ (141,592 ) Total provision (benefit) for income tax expense $ (141,592 ) $ (141,592 ) 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). Deferred tax assets (liabilities) were comprised of the following: 2018 2017 Deferred tax asset: Net operating loss carryforward $ 131,827 $ 49,344 Intangibles – – Stock option compensation 152,895 152,895 Other assets – – Total deferred tax assets $ 284,722 $ 202,239 Deferred tax liabilities: Plant, property and equipment $ (14,308 ) $ (14,308 ) Total deferred tax liabilities $ (14,308 ) $ (14,308 ) Net deferred tax asset Net deferred tax asset – non-current $ 270,414 $ 187,391 Net deferred tax asset $ 270,414 $ 187,391 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. The Company is aware of the risk that the recorded deferred tax assets may not be realizable. The capital loss generated on the sale of Omega shares is unlikely to be recognized and therefore has not been included in deferred assets. However, management believes that the Company will obtain the full benefit of any net operating loss and other deferred tax assets on the basis of its evaluation of the Company’s anticipated profitability over the period of years that the temporary differences are expected to become tax deductions. It believes that sufficient book and taxable income will be generated to realize the benefit of any net operating loss and other deferred tax assets. ASC 740 guidance requires that the Company evaluate all monetary tax positions taken, and recognize a liability for any uncertain tax positions that are more likely than not to be sustained by the tax authorities. The Company has not recorded any liabilities, or interest and penalties, as of December 31, 2018 related to uncertain tax positions. The Company files income tax returns in the U.S. and various state jurisdictions. There are currently no federal or state income tax examinations underway for these jurisdictions. The tax years 2015-2018 remain open to examination by taxing jurisdictions to which the Company is subject. At December 31, 2018, the Company has approximately $1,084,128 in federal net operation loss carryforward which begins to expire in 2036. A reconciliation of the difference between the expected federal tax rate computed at the U.S. statutory income tax rate of 35% and the Company’s effective tax rate for the years ended December 31, 2018 and 2017 is shown in the following table: 2018 2017 Expected federal tax rate 21 % 21 % State income taxes 5 % 5 % Effect of permanent differences 0 % 0 % Change in tax rate and other 0 % 0 % Effective tax rate 26 % 26 % Income tax payable for period ended December 31, 2017 was $10,859 compared to income tax payable of $0 during the same period in 2018.

5. STOCK WARRANTS, STOCK SPLITS

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS	In December of 2003 the Company issued 3,050,000 shares of Series A preferred Stock for total cash of $1,525,000 ($305 par value and $1,524,695 paid in Capital). By agreement dated November 14, 2011, the Company bought back the 3,050,000 shares of Series A Preferred Stock as treasury stock for a payment of $1,300,000. There are no outstanding shares of Series A Preferred Stock. The Company has authorized 210 perpetual warrants to certain organizers, directors, officers, employees and shareholders of the Company. All of these warrants were issued between 1987 and 1990 and were accounted for in accordance with the provisions of Accounting Principles Board (“APB”) Opinion No. 25, Accounting for Stock Issued to Employees. No compensation expense was recorded for these warrants as the exercise price exceeded the market price of the stock at the date of issue. The Company plans to continue to apply APB Opinion No. 25 in accounting for these warrants. These warrants, at the date of issue, allowed for the purchase of shares of stock at $2.00 per share. The exercise prices of these warrants were adjusted to reflect stock splits of 1 for 10,000 in 2013, 2 for 1 in 2002, and 11 for 10 in 1990 and 1989. 0.2 warrants (adjusted for the 1 for 10,000 stock split in 2013 and the 2 for 1 stock split in 2002) were exercised in 1997, leaving an outstanding balance of 210 warrants as of December 31, 2018. The Company had entered into employment agreements with past employees of the Company. Upon execution of these employment agreements, a one-time granting of stock options took effect. These options are fully vested and have a perpetual life. Each employment contract stated the strike price for which options were granted. In addition, the contracts granted options when the employees reach specified performance goals. The Company has also issued options to directors as well as various other employees and past employees. The options granted to employees were granted in connection with reaching certain performance goals. These options are considered to be fully vested and have a contractual life of ten years. The Company plans to issue additional common shares if any of its outstanding options are exercised. There have been no options exercised to date. The Company has adopted the FASB accounting and standards for fair value recognition provisions for stock-based employee compensation. There were no compensation costs or deferred tax benefits recognized for stock-based compensation awards for the twelve months ended December 31, 2018. As of December 31, 2018, 421 stock options totaling $1,103,600 had been cancelled. In June of 2013, shareholders approved by a majority vote a 10,000 to 1 reverse stock split during the annual meeting of shareholders. The reverse stock split became effective on August 14, 2013. Option activity for the last three years was as follows: Number of Options Weighted Average Exercise Price per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding on December 31, 2015 207 $ 8,692 $ 4,435 $ – Granted – – – – Exercised – – – – Canceled 39 – – – Outstanding on December 31, 2016 168 $ 5,000 $ 3,844 $ – Granted – – – – Exercised – – – – Canceled – – – – Outstanding on December 31, 2017 168 $ 5,000 $ 3,844 $ – Granted – – – – Exercised – – – – Cancelled – – – – Outstanding on December 31, 2018 168 $ 5,000 $ 3,844 $ – Exercisable options at the end of 2018 were 168, 168 in 2017, and 168 in 2016. The following table summarizes information concerning options outstanding and exercisable as of December 31, 2018: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0 to $4,900 138 Perpetual $ 4,200 138 $ 4,200 $ 5,000 to $9,900 27 1* $ 5,200 27 $ 5,200 $ 10,000 to $15,000 3 Perpetual $ 10,100 3 $ 10,100 $ 0 to $15,000 168 1* $ 8,692 168 $ 8,692 * Excludes options with a perpetual life

6. EMPLOYEE BENEFIT PLANS

6. EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
EMPLOYEE BENEFIT PLANS	The Company sponsors a 401(K) plan for all its employees. Effective January 1, 2005, the Company implemented a match of up to 4% of employee deferrals. Plan expenses paid for by the Company were $1,678 and $2,858 for the years ended December 31, 2018 and 2017, respectively. The matching contributions paid by the Company were $49,591 and $54,826 for the years ended December 31, 2018 and 2017, respectively. Effective January 1, 2016, the Company implemented a match of up to 6% of employee deferrals.

7. RULE 4110 (c)(1)

7. RULE 4110 (c)(1)	12 Months Ended
	Dec. 31, 2018
Rule 4110
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.

8. NET CAPITAL REQUIREMENTS

8. NET CAPITAL REQUIREMENTS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
NET CAPITAL REQUIREMENTS	The Company’s broker-dealer subsidiary, Capital Financial Services, Inc., is a member firm of the Financial Industry Regulatory Authority (FINRA) and is registered with the Securities and Exchange Commission (SEC) as a broker-dealer. Under the Uniform Net Capital Rule (Rule 15c3-1 under the Securities Exchange Act of 1934), the subsidiary is required to maintain a minimum net capital and a ratio of aggregate indebtedness to net capital, as defined, of not more than 15 to 1. At December 31, 2018, this subsidiary had net capital of $386,231 compared to $626,409 during the same period ended in 2017; a minimum net capital requirement of $194,380 in 2018 compared to $171,851 during the same period ended in 2017; excess net capital of $191,851 in 2018 compared to $454,355 during the same period ended in 2017 and a ratio of aggregate indebtedness to net capital of 7.5 to 1 in 2018 compared to a ratio of aggregate indebtedness to net capital of 4.1 to 1 during the same period ended in 2017. The subsidiary claims exemption from Rule 15c3-3 under Section 15c3-3(k)(2)(ii), which states that all customer transactions are cleared through another broker-dealer on a fully disclosed basis. The subsidiary promptly transmits customer funds or securities to its clearing firm. Therefore, a schedule showing the Computation for Determination of Reserve Requirements under Rule 15c3-3 of the Securities and Exchange Commission and the Schedule of Information Relating to Possession or Control Requirements under Rule 15c3-3 of the Securities and Exchange Commission, are not required. We, as members of management of Capital Financial Services, Inc. (the subsidiary) are responsible for complying with 17 C.F.R §240.17a-5, “Reports to be made by certain brokers and dealers” and complying with 17 C.F.R §240.15c3-3: ((k)(2)(ii)) (the “exemption provisions”). To the best of our knowledge and belief we state the following: (1) We identified the following provisions of 17 C.F.R §15c3-3(k) under which the subsidiary claimed an exemption from 17C.F.R §240.15c3-3: ((k)(2)(ii)) (the “exemption provisions”), and (2) we met the identified exemption provisions from January 1, 2018 to December 31, 2018 without exception.

9. REGULATORY MATTERS

9. REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2018
Regulatory Matters
REGULATORY MATTERS	The broker dealer (“BD”) segment of Capital Financial Services, Inc. is subject to periodic examinations by its regulator, 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.

10. BUILDING PURCHASE

10. BUILDING PURCHASE	12 Months Ended
	Dec. 31, 2018
Building Purchase
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 is being 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 at cost of $221,264 were made in 2017 to bring the total cost of the land building to $1,195,355, and additional renovation cost of $5,202 were made in 2018 to bring the total cost of the land and building to $1,200,557. 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. OPERATING LEASES

11. OPERATING LEASES	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
OPERATING LEASES	The Company has various leases for office equipment and office space that are set to expire over the next several years through 2018. The total rent expense for these leases was $14,197 and $94,224 for December 31, 2018 and 2017, respectively. The following is a schedule by years of future minimum rental payments on operating leases as of December 31, 2018. Years ending December 31, 2019 $ 13,203 2020 13,203 2021 13,203 2022 13,203 2023 13,203 Total minimum future rental payments $ 66,016

12. GOODWILL

12. GOODWILL	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
GOODWILL	The Company had no Goodwill recorded as of December 31, 2018 or December 31, 2017.

13. FAIR VALUE DISCLOSURES

13. FAIR VALUE DISCLOSURES	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
FAIR VALUE DISCLOSURES	FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value in three broad levels: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company have the ability to access. ● Level 2 inputs are inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly. ● Level 3 are unobservable inputs for the asset or liability and rely on management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company’s own data.) The Company had no assets subject to Fair Value Disclosure measurement calculations at December 31, 2018 or December 31, 2017.

14. EARNINGS PER SHARE

14. EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
EARNINGS PER SHARE	Basic earnings per share are computed by dividing earnings available to common stockholders 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 stock had been converted to common stock. The following reconciles amounts reported in the financial statements: Options and warrants to purchase 378 common shares at exercise prices between $3,500 and $14,300 were outstanding at December 31, 2018, but were not included in the computation of earnings per share for the year ended December 31, 2017. For the Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount Income (Loss) from continuing operations $ (295,437 ) 1,241 $ (238 ) Less: preferred stock dividends – Income(Loss) available to common stockholders – Basic earnings per share $ (295,437 ) 1,241 $ (238 ) Effect of dilutive securities: Options and warrants – – Diluted earnings per share $ (295,437 ) 1,241 $ (238 ) For the Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per Share Amount Income (Loss) from continuing operations $ (117,298 ) 1,241 $ (95 ) Less: preferred stock dividends – Income (Loss) available to common stockholders – Basic earnings per share $ (117,298 ) 1,241 $ (95 ) Effect of dilutive securities: Options and warrants – – – Income (Loss) available to common stockholders – Diluted earnings per share $ (117,298 ) 1,241 $ (95 )

15. COMPREHENSIVE INCOME (LOSS)

15. COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
COMPREHENSIVE INCOME (LOSS)	There were no differences between net income (loss) and comprehensive income (loss).

16. RELATED PARTY TRANSACTIONS

16. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
RELATED PARTY TRANSACTIONS	There were no related party transactions during the years ended December 31, 2018 or December 31, 2017.

17. LITIGATION

17. LITIGATION	12 Months Ended
	Dec. 31, 2018
Litigation
LITIGATION	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 multiple FINRA arbitration proceedings by customers. 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. Collectively these legal proceedings, when resolved are expected to be material to the Company’s financial statements. To protect against the currently known legal risks, including suitable expenses for defense and legal advice related to the legal proceedings, existing information and assessments at the time indicated the need to generate provisions for the contingency. For the year ended December 31, 2018, a sum of $555,000 has been reported for contingent liabilities, insofar as these can be adequately measured at this stage. The provisions recognized, the contingent liabilities disclosed and the other latent legal risks are partially subject to substantial estimation risks given the complexity of the individual factors and the fact that the independent and exhaustive investigations have not yet been completed.

18. COMMITMENTS AND CONTINGENCI

18. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	If a contingent liability is probable and As of December 31, 2018, the Company is a defendant in eleven customer arbitrations through FINRA Arbitration which are legal proceedings considered to be in the normal course of business. Collectively these legal proceedings, when resolved are expected to be material to the Company’s financial statements. To protect against the currently known legal risks, including suitable expenses for defense and legal advice related to the legal proceedings, existing information and assessments at the time indicated the need to generate provisions for the contingency. For the year ended 12/31/18 a sum of $555,000 has been reported for contingent liabilities, insofar as these can be adequately measured at this stage. The provisions recognized, the contingent liabilities disclosed and the other latent legal risks are partially subject to substantial estimation risks given the complexity of the individual factors and the fact that the independent and exhaustive investigations have not yet been completed.

19. OPERATING SEGMENTS

19. OPERATING SEGMENTS	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
OPERATING SEGMENTS	The Company organizes its 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 ownership of the Company’s 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. Capital Financial Holdings, Inc. derives the majority of its revenues and net income from sales of mutual funds, insurance products, and various other securities through Capital Financial Services, Inc. (“CFS”), the Company’s broker-dealer subsidiary. As of, and for the year ended, December 31, 2018: Holding Company Broker-Dealer Services Total Revenues from external customers$ $ 3,200 $ 15,068,191 $ 15,071,391 Interest expense (34,564 ) – (34,564 ) Depreciation 34,972 37,081 72,053 Income (loss) before income tax benefit (expense) (219,075 ) (105,251 ) (324,326 ) Income tax benefit (expense) 5,015 23,874 28,889 Net income (loss) of continued operations (214,060 ) (81,377 ) (295,437 ) Segment assets of continued operations As of, and for the year ended, December 31, 2017: Revenues from external customers$ $ – $ 15,569,191 $ 15,569,191 Interest expense (29,039 ) – (29,039 ) Depreciation 21,357 41,349 62,705 Income (loss) before income tax benefit (expense) (336,728 ) 305,363 (31,365 ) Income tax benefit (expense) 16,409 (102,342 ) (85,933 ) Net income (loss) of continued operations (320,319 ) 203,021 (117,298 ) Segment assets of continued operations 1,638,344 3,496,915 5,135,259 Reconciliation of Segment Information 2018 2017 Assets for the Holding Company segment $ 1,622,065 $ 1,638,344 Assets for the Broker-Dealer Services segment $ 3,519,905 $ 3,496,915 Elimination for the Holding Company segment receivables $ – $ – Elimination for the Broker-Dealer Services segment receivables $ – $ – Consolidated assets of continued operations $ 5,141,970 $ 5,135,259

20. SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
SUBSEQUENT EVENTS	The Company has evaluated subsequent events through the date the financial statements were available to be issued on April 12, 2019, and have identified the following events. January 28, 2019, the Company’s subsidiary executed a tentative Asset Purchase and Assignment Agreement with another FINRA member broker dealer ("Assignee") wherein, subject to approval of FINRA and any other securities regulatory authorities, Assignee may be entitled to purchase certain retail customer accounts of the Company’s subsidiary. The agreement will become effective only upon approval of FINRA (the Effective Date). Pursuant to the terms of the tentative agreement, Assignee will pay to the Company’s subsidiary a total of Three Hundred Thousand Dollars for all retail accounts accepted by Assignee that choose to transfer to Assignee, to be paid in installments as follows: Seventy Five Thousand Dollars upon the Effective Date of the Assignment Agreement, Seventy Five Thousand Dollars three months from the Effective Date and assuming the Effective Date has occurred, One Hundred Fifty Thousand Dollars on or before December 31, 2019. The Company has no knowledge of or control over when the agreement will be effective if ever. Since December 31, 2018, the Company’s subsidiary has been named as a Respondent in an additional three customer arbitration claims, bringing the outstanding arbitration claims to fourteen. These claims relate to the same former registered representative and with similar allegations to the arbitration claims described in Note 17.

1. NATURE OF OPERATIONS AND S_2

1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
Nature of operations	Capital Financial Holdings, Inc., (the “Company”) is the parent company of Capital Financial Services, Inc. Capital Financial Holdings, Inc. was established in September 1987 as a North Dakota corporation. Headquartered in Minot, North Dakota, the Company is marketing its services throughout the United States. The Company currently has two reporting segments: Broker-Dealer Services The Company derives all of its operating revenues from Capital Financial Services, Inc. through investment advisory fees as well as commissions earned from sales of mutual funds, insurance products, and various other securities. CFS is a full-service brokerage firm. CFS is registered with the SEC as an investment advisor and broker-dealer and also with FINRA as a broker-dealer. CFS specializes in providing investment products and services to independent investment representatives, financial planners, and investment advisors and currently supports approximately 130 investment representatives and investment advisors. The Company operates under the provision of Paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission and, accordingly, is exempt from the remaining provisions of that rule. To the best of management’s knowledge and belief the Company met the identified exemption provisions from January 1, 2018 to December 31, 2018 without exception. Holding Company The Company encompasses cost associated with ownership of its office building, business development and acquisitions, dispositions of subsidiary entities and results of discontinued operations, dividend income and recognized gains or losses.
Principles of consolidation	The consolidated financial statements include the accounts of Capital Financial Holdings, Inc., and its subsidiary Capital Financial Services, Inc. (“CFS”). All significant inter-company transactions and balances have been eliminated in the accompanying consolidated financial statements.
Concentrations	Capital Financial Holdings, Inc. derives all of its revenues and net income from sales of mutual funds, insurance products, and various other securities through CFS, the Company’s broker-dealer subsidiary. The Company’s revenues are largely dependent on the sales activity of registered representatives operating as independent contractors. Accordingly, fluctuations in financial markets and the composition of assets under management impact revenues and results of operations.
Use of estimates	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments	The Company’s financial instruments consist of cash, accounts receivables, accounts payable and accrued expense obligations. The carrying value of the Company’s financial instruments approximate their fair value due to the short-term nature of their underlying terms.
Revenue recognition	Commission income and the related clearing expenses are recorded based on the trade date. The revenue earned from 12b-1 is recognized ratably over the period received. Investment advisory fees are derived from account management and investment advisory services. These fees are determined based on a percentage of the customer’s assets under sponsor management or a flat fee, may be billed monthly or quarterly and recognized ratably over the period received.
Cash and cash equivalents	The Company’s policy is to record all liquid investments with original maturities of three months or less as cash equivalents. Liquid investments with maturities greater than three months are recorded as investments.
Clearing Deposits	The Company has “Deposit Accounts” with each of its Clearing Firms, as set forth in each of the Clearing Agreements. Upon termination or expiration of these agreements, the Clearing Firms would deliver the balance of these accounts to the Company. As of December 31, 2018, the balance in the Company’s Dain account, Pershing account and NSCC was $50,000, $25,392 and $40,279, respectively. These deposits are included in Cash and cash equivalents.
Accounts receivable	The Company’s receivables consist primarily of concessions related to registered representative activity. Management evaluates the need for an allowance for doubtful accounts by identifying troubled accounts and using historical experience. Accounts receivable are written off when management deems them uncollectible. Recoveries of accounts receivable previously written off are recorded when received. The Company does not charge interest on its receivables.
Goodwill	The Company accounts for goodwill under the FASB accounting and reporting standards for goodwill and other intangible assets, which requires that goodwill and indefinite-lived other intangible assets deemed to have an indefinite useful life be assessed annually for impairment using fair value measurement techniques. As of December 31, 2018, the Company no longer has a value for goodwill.
Property and equipment	Property and equipment is stated at cost less accumulated depreciation computed on straight-line and accelerated methods over estimated useful lives of 5-7 years. The office building is stated at cost less accumulated depreciation computed on a straight line method over an estimated useful life of 39 years.
Other assets	Other assets include other miscellaneous assets.
Advertising	Costs of advertising and promotion are expensed as incurred. There were no advertising and promotion costs in 2018 or 2017.
Earnings per common share	Basic earnings per common share was computed using the weighted average number of shares outstanding of 1,241 in 2017 and 2018. Diluted earnings per common share is computed using the weighted average number of shares outstanding adjusted for share equivalents arising from unexercised stock warrants, stock options, written put options, and preferred shares.
Income taxes	The Company files a consolidated income tax return with its wholly owned subsidiary. The amount of deferred tax benefit or expense is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates. Deferred tax benefits or expenses are recognized in the financial statements for the changes in deferred tax assets between years. The Company’s policy is to evaluate the likelihood that its uncertain tax positions will prevail upon examination based on the extent to which those positions have substantial support within the Internal Revenue Code and Regulations, Revenue Rulings, court decisions, and other evidence. It is the opinion of management that the Company has no significant uncertain tax positions that would be subject to change upon examination. The federal income tax returns of the Company are subject to examination by the IRS, generally for three years after they were filed.
Severance Escrow	The Company’s severance escrow accounts are restricted cash held in third-party administered escrow accounts for the sole purpose of funding certain employee severance plans established in 2010 by the Company’s Board of Directors for the benefit of and with the purpose of retaining its employees. These funds are held in escrow accounts pursuant to several Involuntary Termination Severance Pay Plans and are not available to the Company for use other than the Involuntary Termination Severance Plan purposes nor is it accessible to creditors of the Company. These restricted cash accounts, totaling $157,911 in 2017 and $157,927 in 2018 are included in Cash and cash equivalents.
Concentration of Credit Risk	The Company has a concentration of credit risk for cash deposits at various financial institutions. These deposits may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any losses in such accounts.
Recent Accounting Developments	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): Leases ASU 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Revenue Recognition, ASU 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-17— Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-18— Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2017-01— Business Combinations (Topic 805): Clarifying the Definition of a Business.

3. PROPERTY AND EQUIPMENT (Tabl

3. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
Property And Equipment Tables
Property and equipment	2018 2017 Office furniture and equipment $ 350,429 $ 348,363 Land 98,409 98,409 Building 1,102,148 1,096,946 Accumulated depreciation (343,800 ) (271,747 ) $ 1,207,196 $ 1,271,971

4. INCOME TAXES (Tables)

4. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes Tables
Provision for income taxes	2018 2017 Current income tax expense: Federal $ – $ – State – 10,859 Total current tax expense $ – $ 10,859 Deferred tax expense: Federal $ (123,124 ) $ (123,124 ) State (18,468 ) (18,468 ) Total deferred tax expense $ (141,592 ) $ (141,592 ) Total provision (benefit) for income tax expense $ (141,592 ) $ (141,592 )
Deferred tax assets	2018 2017 Deferred tax asset: Net operating loss carryforward $ 131,827 $ 49,344 Intangibles – – Stock option compensation 152,895 152,895 Other assets – – Total deferred tax assets $ 284,722 $ 202,239 Deferred tax liabilities: Plant, property and equipment $ (14,308 ) $ (14,308 ) Total deferred tax liabilities $ (14,308 ) $ (14,308 ) Net deferred tax asset Net deferred tax asset – non-current $ 270,414 $ 187,391 Net deferred tax asset $ 270,414 $ 187,391
Expected income tax benefit reconciliation	2018 2017 Expected federal tax rate 21 % 21 % State income taxes 5 % 5 % Effect of permanent differences 0 % 0 % Change in tax rate and other 0 % 0 % Effective tax rate 26 % 26 %

5. STOCK WARRANTS, STOCK SPLI_2

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
Option activity	Number of Options Weighted Average Exercise Price per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding on December 31, 2015 207 $ 8,692 $ 4,435 $ – Granted – – – – Exercised – – – – Canceled 39 – – – Outstanding on December 31, 2016 168 $ 5,000 $ 3,844 $ – Granted – – – – Exercised – – – – Canceled – – – – Outstanding on December 31, 2017 168 $ 5,000 $ 3,844 $ – Granted – – – – Exercised – – – – Cancelled – – – – Outstanding on December 31, 2018 168 $ 5,000 $ 3,844 $ –
Exercisable options	Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0 to $4,900 138 Perpetual $ 4,200 138 $ 4,200 $ 5,000 to $9,900 27 1* $ 5,200 27 $ 5,200 $ 10,000 to $15,000 3 Perpetual $ 10,100 3 $ 10,100 $ 0 to $15,000 168 1* $ 8,692 168 $ 8,692

11. OPERATING LEASES (Tables)

11. OPERATING LEASES (Tables)	12 Months Ended
	Dec. 31, 2018
Operating Leases Tables
Minimum rental payments on operating leases	Years ending December 31, 2019 $ 13,203 2020 13,203 2021 13,203 2022 13,203 2023 13,203 Total minimum future rental payments $ 66,016

14. EARNINGS PER SHARE (Tables)

14. EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
PromissoryNoteNonCurrent
Basic Earning per share	For the Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount Income (Loss) from continuing operations $ (295,437 ) 1,241 $ (238 ) Less: preferred stock dividends – Income(Loss) available to common stockholders – Basic earnings per share $ (295,437 ) 1,241 $ (238 ) Effect of dilutive securities: Options and warrants – – Diluted earnings per share $ (295,437 ) 1,241 $ (238 ) For the Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per Share Amount Income (Loss) from continuing operations $ (117,298 ) 1,241 $ (95 ) Less: preferred stock dividends – Income (Loss) available to common stockholders – Basic earnings per share $ (117,298 ) 1,241 $ (95 ) Effect of dilutive securities: Options and warrants – – – Income (Loss) available to common stockholders – Diluted earnings per share $ (117,298 ) 1,241 $ (95 )

19. OPERATING SEGMENTS (Tables)

19. OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule segment	Holding Company Broker-Dealer Services Total Revenues from external customers$ $ 3,200 $ 15,068,191 $ 15,071,391 Interest expense (34,564 ) – (34,564 ) Depreciation 34,972 37,081 72,053 Income (loss) before income tax benefit (expense) (219,075 ) (105,251 ) (324,326 ) Income tax benefit (expense) 5,015 23,874 28,889 Net income (loss) of continued operations (214,060 ) (81,377 ) (295,437 ) Segment assets of continued operations As of, and for the year ended, December 31, 2017: Revenues from external customers$ $ – $ 15,569,191 $ 15,569,191 Interest expense (29,039 ) – (29,039 ) Depreciation 21,357 41,349 62,705 Income (loss) before income tax benefit (expense) (336,728 ) 305,363 (31,365 ) Income tax benefit (expense) 16,409 (102,342 ) (85,933 ) Net income (loss) of continued operations (320,319 ) 203,021 (117,298 ) Segment assets of continued operations 1,638,344 3,496,915 5,135,259
Reconciliation of Segment Information	2018 2017 Assets for the Holding Company segment $ 1,622,065 $ 1,638,344 Assets for the Broker-Dealer Services segment $ 3,519,905 $ 3,496,915 Elimination for the Holding Company segment receivables $ – $ – Elimination for the Broker-Dealer Services segment receivables $ – $ – Consolidated assets of continued operations $ 5,141,970 $ 5,135,259

1. NATURE OF OPERATIONS AND S_3

1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average number of shares outstanding, basic	1,241	1,241
Restricted cash accounts	$ 157,927	$ 157,911
Minimum [Member]
Property plant and equipment useful life	5 years
Maximum [Member]
Property plant and equipment useful life	7 years
Dain account
Clearing deposits	$ 50,000	35,000
Pershing account
Clearing deposits	25,392	100,000
NSCC
Clearing deposits	$ 40,279	$ 40,279

2. CASH AND CASH EQUIVALENTS (D

2. CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Checking and savings accounts	$ 1,559,482	$ 1,461,706
Severance escrow	157,926	157,911
Pershing account
Clearing deposits	25,392	100,000
Dain account
Clearing deposits	50,000	35,000
NSCC
Clearing deposits	$ 40,279	$ 40,279

3. PROPERTY AND EQUIPMENT (Deta

3. PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Property And Equipment Details
Office furniture and equipment	$ 350,429	$ 348,363
Land	98,409	98,409
Building	1,102,148	1,096,946
Accumulated depreciation and amortization	(343,800)	(271,747)
Property and equipment of discontinued operations	0	0
Property Plant and Equipment, Net	$ 1,207,186	$ 1,271,971

3. PROPERTY AND EQUIPMENT (De_2

3. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
PromissoryNoteNonCurrent
Depreciation expense	$ 72,053	$ 62,705

4. INCOME TAXES (Details)

4. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current income tax expense:
Federal	$ 0	$ 0
State	0	10,859
Total current tax expense	0	10,859
Deferred tax expense:
Federal	(123,124)	(123,124)
State	(18,468)	(18,468)
Total deferred tax expense	(141,592)	(141,592)
Total provision (benefit) for income tax expense	$ (141,592)	$ 85,933

4. INCOME TAXES (Details 1)

4. INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred tax asset:
Net operating carry forwards	$ 131,827	$ 49,344
Intangibles	0	0
Stock option compensation	152,895	152,895
Other assets	0	0
Total deferred tax assets	284,722	202,239
Deferred tax liabilities:
Plant, property and equipment	(14,308)	(14,308)
Total deferred tax liabilities	(14,308)	(14,308)
Net deferred tax asset - non - current	270,414	187,931
Net deferred tax asset	$ 270,414	$ 187,931

4. INCOME TAXES (Details 2)

4. INCOME TAXES (Details 2)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the Difference Between the Expected Income Tax Benefit (Expense) Rate:
Expected federal tax rate	21.00%	21.00%
State income taxes	5.00%	5.00%
Effect of permanent differences	0.00%	0.00%
Change in tax rate and other	0.00%	0.00%
Effective tax rate	26.00%	26.00%

4. INCOME TAXES (Details Narrat

4. INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Federal net operation loss carryforward	$ 1,084,128
Federal net operation loss carryforward expiration	Dec. 31, 2036
Income tax payable	$ 0	$ 10,859

5. STOCK WARRANTS, STOCK SPLI_3

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Warrants Stock Splits And Stock Options Details
Number of options, Outstanding Beginning	168	168	207
Number of options, Granted	0	0	0
Number of options, Exercised	0	0	0
Number of options, Canceled	0	0	39
Number of options, Outstanding Ending	168	168	168
Weighted Average Exercise Price per Share, Beginning	$ 5,000	$ 5,000	$ 8,692
Weighted Average Exercise Price per Share, Granted	0	0	0
Weighted Average Exercise Price per Share, Exercised	0	0	0
Weighted Average Exercise Price per Share, Canceled	0	0	0
Weighted Average Exercise Price per Share, Ending	5,000	5,000	5,000
Weighted Average Grant Date Fair Value, Beginning	3,844	3,844	4,435
Weighted Average Grant Date Fair Value, Granted	0	0	0
Weighted Average Grant Date Fair Value, Exercised	0	0	0
Weighted Average Grant Date Fair Value, Canceled	0	0	0
Weighted Average Grant Date Fair Value, Ending	$ 3,844	$ 3,844	$ 3,844
Aggregate Intrinsic Value, Beginning	$ 0	$ 0	$ 0
Aggregate Intrinsic Value, Granted	0	0	0
Aggregate Intrinsic Value, Exercised	0	0	0
Aggregate Intrinsic Value, Canceled	0	0	0
Aggregate Intrinsic Value, Ending	$ 0	$ 0	$ 0

5. STOCK WARRANTS, STOCK SPLI_4

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details 1)	12 Months Ended
	Dec. 31, 2018$ / sharesshares
0 to $4,900
Number Outstanding | shares	138
Weighted Average Remaining Contractual Life (Years)	Perpetual
Weighted Average Exercise Price | $ / shares	$ 4,200
Number Exercisable | shares	138
Weighted Average Exercise Price | $ / shares	$ 4,200
5,000 to $9,900
Number Outstanding | shares	27
Weighted Average Remaining Contractual Life (Years)	1 year
Weighted Average Exercise Price | $ / shares	$ 5,200
Number Exercisable | shares	27
Weighted Average Exercise Price | $ / shares	$ 5,200
10,000 to $15,000
Number Outstanding | shares	3
Weighted Average Remaining Contractual Life (Years)	Perpetual
Weighted Average Exercise Price | $ / shares	$ 10,100
Number Exercisable | shares	3
Weighted Average Exercise Price | $ / shares	$ 10,100
0 to $15,000
Number Outstanding | shares	168
Weighted Average Remaining Contractual Life (Years)	1 year
Weighted Average Exercise Price | $ / shares	$ 8,692
Number Exercisable | shares	168
Weighted Average Exercise Price | $ / shares	$ 8,692

5. STOCK WARRANTS, STOCK SPLI_5

5. STOCK WARRANTS, STOCK SPLITS, AND STOCK OPTIONS (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
PromissoryNoteNonCurrent
Stock options canceled amount	$ 421
Stock options canceled	1,103,600
Exercisable options	168	168	168

6. EMPLOYEE BENEFIT PLANS (Deta

6. EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Employee benefit plan expenses	$ 1,678	$ 2,858
Matching contributions paid by the company	$ 49,591	$ 54,826

8. NET CAPITAL REQUIREMENTS (De

8. NET CAPITAL REQUIREMENTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Mortgage Banking [Abstract]
Net capital	$ 386,231	$ 626,409
Minimum net capital requirement	194,380	171,851
Excess net capital	$ 191,851	$ 454,335
Ratio of aggregate indebtedness to net capital	7.50%	4.10%

11. OPERATING LEASES (Details)

11. OPERATING LEASES (Details)	Dec. 31, 2018USD ($)
Years ending December 31,
2019	$ 13,203
2020	13,203
2021	13,203
2022	13,203
2023	13,203
Total minimum future rental payments	$ 66,016

11. OPERATING LEASES (Details N

11. OPERATING LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Rent expense for leases	$ 14,197	$ 94,224

12. GOODWILL (Details Narrative

12. GOODWILL (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Goodwill Details Narrative Abstract
Goodwill	$ 0	$ 0

14. EARNINGS PER SHARE (Details

14. EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share Details Usd Abstract
Income (Loss) from continuing operations	$ (295,437)	$ (117,298)
Less: Preferred Stock Dividends	0	0
Income (Loss) available to common stockholders Basic earnings per share, Amount	$ (295,437)	$ (117,298)
Income (Loss) available to common stockholders Basic earnings per share, Shares	1,241	1,241
Income (Loss) available to common stockholders Basic earnings per share	$ (238)	$ (95)
Effect of Dilutive Securities:
Options and Warrants	$ 0	$ 0
Income Available to Common Shareholders - Diluted Earnings per Share, Amount	$ (295,437)	$ (117,298)
Income Available to Common Shareholders - Diluted Earnings per Share, Shares	1,241	1,241
Income Available to Common Shareholders - Diluted Earnings per Share	$ (238)	$ (95)

14. EARNINGS PER SHARE (Detai_2

14. EARNINGS PER SHARE (Details Narrative)	Dec. 31, 2018$ / sharesshares
Options and warrants to purchase | shares	378
Minimum [Member]
Options and warrants to purchase, exercise prices	$ 3,500
Maximum [Member]
Options and warrants to purchase, exercise prices	$ 14,300

19. OPERATING SEGMENTS (Details

19. OPERATING SEGMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Interest expense	$ (32,564)	$ (29,039)
Depreciation	72,053	62,705
Income (loss) before income tax benefit (expense)	(324,326)	(31,365)
Income tax benefit (expense)	28,889	(85,933)
Net income (loss) of continued operations	(295,437)	(139,613)
Holding Company [Member]
Revenues from external customers	3,200	0
Interest expense	(34,564)	(29,039)
Depreciation	34,972	21,357
Income (loss) before income tax benefit (expense)	(219,075)	(336,728)
Income tax benefit (expense)	5,015	16,409
Net income (loss) of continued operations	(214,060)	(320,319)
Segment assets of continued operations	1,622,065	1,638,344
Broker-Dealer Services [Member]
Revenues from external customers	15,068,191	15,569,191
Interest expense	0	0
Depreciation	37,081	41,349
Income (loss) before income tax benefit (expense)	(105,251)	305,363
Income tax benefit (expense)	23,874	(102,342)
Net income (loss) of continued operations	(81,377)	203,021
Segment assets of continued operations	3,519,905	3,496,915
Total [Member]
Revenues from external customers	15,071,391	15,569,191
Interest expense	(34,564)	(29,039)
Depreciation	72,053	62,705
Income (loss) before income tax benefit (expense)	(324,326)	(31,365)
Income tax benefit (expense)	28,889	(85,933)
Net income (loss) of continued operations	(295,437)	(117,298)
Segment assets of continued operations	$ 5,141,970	$ 5,135,259

19. OPERATING SEGMENTS (Detai_2

19. OPERATING SEGMENTS (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Assets	$ 5,141,970	$ 5,135,259
Holding Company segment [Member]
Assets	1,622,065	1,638,344
Receivables	0	0
Broker Dealer Services, Inc. [Member]
Assets	3,519,905	3,496,915
Receivables	$ 0	$ 0