Delaware		11-2936371
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)

100 Pine Street, Suite 500 San Francisco, California		94111
(Address of Principal Executive Offices)		(Zip Code)

				Page No.
PART I    FINANCIAL INFORMATION
ITEM 1.		Financial Statements (unaudited)
		Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2002 and 2001		2
		Condensed Consolidated Statements of Financial Condition as of September 30, 2002 and December 31, 2001		3
		Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2002 and 2001		4
		Notes to Condensed Consolidated Financial Statements		5
ITEM 2		Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
ITEM 3.		Quantitative and Qualitative Disclosures About Market Risk		19
PART II    OTHER INFORMATION
ITEM 1.		Legal Proceedings		20
ITEM 6.		Exhibits and Reports on Form 8-K		20
Signatures				21

		Three Months Ended								Nine Months Ended
		September 30, 2002				September 30, 2001				September 30, 2002				September 30, 2001
Revenue:
Commissions		$	2,332,664			$	51,993			$	4,533,765			$	146,387
Principal transactions			79,176				—				203,952				—
Investment banking			15,833				—				262,249				—
Other			—				13,446				28,827				29,396
Total revenue			2,427,673				65,439				5,028,793				175,783
Operating expenses:
Compensation and benefits (inclusive of non-cash expenses of $67,580, $352,122, $514,109 and $3,287,635)			1,725,501				1,354,181				4,408,319				6,753,525
Brokerage and clearing fees			346,609				—				742,181				—
Professional services			145,479				202,704				415,515				952,513
Occupancy and equipment			48,003				245,470				173,223				4,029,772
Communications and technology			114,129				228,144				202,421				411,858
Depreciation and amortization			101,356				562,826				300,731				1,417,623
Write-down of software assets			—				3,010,371				—				3,010,371
Settlement of lease obligations			—				7,039,397				—				7,039,397
Other			(136,444	)			649,187				401,521				2,949,633
Total operating expenses			2,344,633				13,292,280				6,643,911				26,564,692
Operating income (loss)			83,040				(13,226,841	)			(1,615,118	)			(26,388,909	)
Interest income			9,563				39,836				37,280				312,006
Interest expense			(363,878	)			(29,131	)			(1,091,498	)			(40,643	)
Other income (expense)			91,649				(207,107	)			91,649				(951,304	)
Loss from continuing operations			(179,626	)			(13,423,243	)			(2,577,687	)			(27,068,850	)
Income from discontinued operations			—				51,750				32,641				381,110
Net loss		$	(179,626	)		$	(13,371,493	)		$	(2,545,046	)		$	(26,687,740	)
Basic and diluted net loss per share		$	(0.01	)		$	(0.75	)		$	(0.14	)		$	(1.50	)
Weighted average number of common shares			20,908,856				17,880,391				19,865,495				17,815,821

		September 30, 2002				December 31, 2001
ASSETS
Cash and cash equivalents		$	2,572,304			$	4,358,091
Securities owned:
Marketable, at fair value			522,842				—
Not readily marketable, at estimated fair value			10,500				—
Restricted cash			364,570				—
Due from clearing broker			233,823				—
Accounts receivable, net			40,686				—
Equipment and fixtures, net			380,541				674,618
Debt issuance costs			629,846				658,434
Prepaid expenses and other assets			131,265				212,050
Assets of discontinued operations			—				1,603,588
Total assets		$	4,886,377			$	7,506,781
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Accounts payable		$	301,788			$	401,505
Commissions payable			411,413				—
Accrued liabilities			1,056,648				1,164,866
Due to clearing and other brokers			92,543				—
Deferred revenue			15,000				—
Convertible notes payable, net			8,444,655				8,141,704
Liabilities of discontinued operations			—				1,240,439
Total liabilities			10,322,047				10,948,514
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value; 60,000,000 shares authorized; 606,366 and 2,000,000 shares issued and outstanding as of September 30, 2002 and December 31, 2001, respectively; aggregate liquidation preference of $2,100,094 as of September 30, 2002			61				200
Common stock, $0.0001 par value; 300,000,000 shares authorized; 21,075,859 and 18,328,204 shares issued and outstanding as of September 30, 2002 and December 31, 2001, respectively			2,107				1,833
Additional paid-in capital			85,005,519				84,516,375
Accumulated deficit			(90,443,357	)			(87,730,641	)
Deferred compensation			—				(229,500	)
Total stockholders’ deficit			(5,435,670	)			(3,441,733	)
Total liabilities and stockholders’ deficit		$	4,886,377			$	7,506,781

		Nine Months Ended September 30
		2002				2001
Cash flows from operating activities:
Net loss		$	(2,545,046	)		$	(26,687,740	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			300,731				1,417,623
Common stock issued for services			83,337				145,200
Stock warrants issued for modification of lease obligations			—				1,358,797
Stock-based compensation			430,772				2,742,435
Note payable issued in connection with employee severance			—				400,000
Amortization of discounts on convertible notes payable			302,951				—
Amortization of debt issuance costs			51,088				—
Unrealized loss on securities			34,357