Southern Trust Securities Holding Corp

CIK:0001326250|SEC Filings

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues
Trading income	$ 128,239	$ 396,157	$ 630,875	$ 1,366,220
Commissions	130,386	131,301	394,563	394,448
Give up income	32,247	87,965	186,518	195,105
Managed account fees	30,230	25,553	96,428	73,180
Interest and dividend income	22,134	29,927	93,781	77,302
Other income			111,646	196,167
Total	343,236	670,903	1,513,811	2,302,422
Expenses
Commissions and clearing fees	139,939	423,355	602,972	1,230,084
Employee compensation and benefits	295,068	299,798	895,919	729,864
Occupancy	23,018	14,061	65,647	47,458
Communications and market data	35,192	41,034	126,246	124,965
Professional fees	113,947	70,278	421,769	341,824
Travel and entertainment	3,381	36,350	44,725	69,494
Depreciation and amortization	16,328	16,128	48,853	48,175
Interest expense	11,278	12,396	38,374	38,014
Other operational expenses	59,772	59,671	179,163	177,501
Total	697,923	973,071	2,423,668	2,807,379
Loss from operations	(354,687)	(302,168)	(909,857)	(504,957)
Gain on exercise of put option				(750,242)
(Loss) income before equity in income of Nexo Emprendimientos SA	(354,687)	(302,168)	(909,857)	245,285
Equity in loss of Nexo Emprendimientos SA				210,607
Net (loss) income	(354,687)	(302,168)	(909,857)	455,892
Net (loss) income attributable to noncontrolling interest	(2,321)	175	6,298	6,310
Net (loss) income attributable to Southern Trust Securities Holding Corp and Subsidiaries.	(352,366)	(302,343)	(916,155)	449,582
Preferred stock dividends			(104,000)
Net (loss) income applicable to common stockholders	(352,366)	(302,343)	(1,020,155)	449,582
Comprehensive income (loss):
Net (loss) income	(354,687)	(302,168)	(909,857)	455,892
Foreign currency translation adjustment gain (loss)	8,919	4,907	5,310	(1,470)
Total other comprehensive (loss) income	(345,768)	(297,261)	(904,547)	454,422
Comprehensive income (loss) attributable to noncontrolling interest	(2,321)	175	6,298	6,310
Comprehensive (loss) income attributable to Southern Trust Securities Holding Corp and Subsidiaries	$ (343,447)	$ (297,436)	$ (910,845)	$ 448,112
Weighted average common shares outstanding
Basic	19,177,826	19,177,826	19,177,826	19,177,826
Diluted	19,177,826	19,177,826	19,177,826	21,257,826
Net loss per common share
Basic	$ (0.02)	$ (0.02)	$ (0.05)	$ 0.02
Diluted	$ (0.02)	$ (0.02)	$ (0.05)	$ 0.02

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net loss	$ (909,857)	$ 455,892
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock-based compensation - employees	174,864	214,006
Depreciation and amortization	48,853	48,175
Income in equity of affiliate		(210,607)
Gain on exercise of put option		(750,242)
Changes in operating assets and liabilities:
Securities owned	293,630	(742,778)
Due from clearing broker	4,851,811	746,614
Commissions receivable	57,584	(14,833)
Other assets	(3,766)	(3,468)
Due from redemption of investment	1,070,000
Accounts payable and accrued expenses	(8,734)	105,455
Payable to customers	(5,175,094)	(704,557)
Due to investors from redemption of investment	(758,696)
Income Taxes Payable	(18,400)
Net cash (used in) operating activities	(377,805)	(856,343)
Cash flows from Investing Activities
Purchases of equipment	(2,659)	(44,009)
Proceeds from exercise of put option		1,200,000
Net cash (used in ) investing activities	(2,659)	1,155,991
Cash flows from financing activities
Dividends paid to preferred stockholders	(104,000)
Principal payments on notes payable	(53,692)	(44,930)
Net cash flows used in financing activities	(157,692)	(44,930)
Effect of foreign exchange rate changes on cash and cash equivalents	5,310	(1,470)
Net (decrease) increase in cash and cash equivalents	(532,846)	253,248
Cash and cash equivalents, beginning of period	903,678	339,445
Cash and cash equivalents, end of period	370,832	592,693
Supplemental disclosure of cash flow information:
Cash paid during the periods for interest	38,374	38,014
Cash paid during the periods for taxes	$ 27,802

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL CONDITION (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 370,832	$ 903,678
Securities owned at fair value	1,034,511	1,328,141
Due from redemption of investment		1,070,000
Due from clearing broker	412,613	5,264,424
Commissions receivable	26,705	84,289
Investment in AR Growth	22,370	22,370
Investment in Nexo Emprendimientos, S.A. (see Note 16)	1,524,704	1,524,704
Other assets	24,426	20,660
Property and equipment, net	1,488,291	1,534,485
Total assets	4,904,452	11,752,751
Liabilities
Accounts payable and accrued expenses	350,938	359,672
Payable to customers	375,795	5,550,889
Due to investors from redemption of investment		758,696
Note payable	591,762	645,454
Income taxes payable		18,400
Total liabilities	1,318,495	7,333,111
Commitments and contingencies (Note 15)
Stockholders' equity
Series C, 8% convertible preferred stock, no par value, 2.5 million shares authorized, 520,000 issued and outstanding at September 30, 2013 and December 31, 2012	5,200,000	5,200,000
Common stock, no par value, 100 million shares authorized; 19,177,826 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	10,474,760	10,474,760
Additional paid-in-capital	2,195,631	2,020,767
Accumulated deficit	(14,396,440)	(13,376,285)
Accumulated other comprehensive loss	(8,459)	(13,769)
Total Southern Trust Securities Holding Corp. and Subsidiaries stockholders' equity	3,465,492	4,305,473
Noncontrolling interest	120,465	114,167
Total stockholders' equity	3,585,957	4,419,640
Total Liabilities and Stockholders' Equity	$ 4,904,452	$ 11,752,751