Item 1. Financial Statements
BKF CAPITAL GROUP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands)
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March 31,
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December 31,
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2014
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2013
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(audited)
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(unaudited)
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Assets
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Cash and cash equivalents
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$
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5,373
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$
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5,898
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Investment in Qualstar
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1,127
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902
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Marketable securities
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274
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50
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Prepaid expenses and other assets
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35
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35
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Total assets
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$
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6,809
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$
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6,885
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Liabilities and Stockholders' Equity
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Accrued expenses
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$
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20
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$
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33
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Total liabilities
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20
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33
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Commitments and contingencies
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Stockholders' equity
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Common stock, $1 par value, authorized — 15,000,000 shares, 7,471,593 issued and outstanding as of March 31, 2014 and as of December 31, 2013
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7,472
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7,472
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Additional paid-in capital
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68,270
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68,270
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Accumulated other comprehensive income/(loss)
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57
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—
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Accumulated deficit
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(69,010
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)
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(68,890
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)
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Total stockholders' equity
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6,789
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6,852
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Total liabilities and stockholders' equity
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$
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6,809
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$
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6,885
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See accompanying notes
BKF CAPITAL GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per
share data)
(Unaudited)
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Three Months Ended
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March 31,
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2014
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2013
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Non Operating Income
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Interest income
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$
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2
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$
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4
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Other income
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—
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6
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Total revenues
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2
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10
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Expenses:
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Employee compensation and benefits
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25
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49
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Occupancy and equipment rental
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5
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21
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Other operating expenses
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34
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127
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Total expenses
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(64
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)
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(197
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)
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Other income (expense)
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Loss on equity investment
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(58
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)
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(306
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)
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Total other income (expense)
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(58
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)
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(306
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)
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Net income/(loss)
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(120
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)
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(493
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)
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Other comprehensive income,
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Unrealized gain (loss) on investments, net of tax
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57
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—
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Other comprehensive income/(loss)
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$
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(63
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)
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$
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—
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Net income/(loss) per share:
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(.02
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)
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(.07
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)
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Basic and Diluted
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7,471,593
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7,446,593
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Weighted average common shares outstanding
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See accompanying notes
BKF CAPITAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(Unaudited)
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Three Months Ended
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March 31,
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2014
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2013
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(audited)
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Cash flows from operating activities
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Net loss
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$
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(120
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)
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$
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(493
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)
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Changes in operating assets and liabilities:
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Stock compensation expenses
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-
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6
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Decrease in investment in Qualstar
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58
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306
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(Increase)/Decrease in prepaid expenses and other assets
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—
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—
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(Decrease)/Increase in accrued expenses
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(13
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)
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7
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Net cash used in operating activities
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(75
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)
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(174
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)
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Cash flows from investing activities
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Purchase of investment securities
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(450
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)
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—
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Net cash used in investing activities
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(450
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)
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—
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Net decrease in cash and cash equivalents
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(525
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)
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(174
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)
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Cash and cash equivalents at the beginning of the period
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5,898
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6,597
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Cash and cash equivalents at the end of the period
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$
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5,373
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$
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6,423
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Supplemental disclosure of cash flow information
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Cash paid for interest
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$
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—
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$
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—
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Cash paid for income taxes
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$
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—
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$
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—
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See accompanying notes
BKF CAPITAL GROUP, INC.
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
The unaudited condensed consolidated financial statements
included herein were prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management,
disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements should
be read in conjunction with the financial statements and notes included in the Company's Form 10-K for the year ended December
31, 2013.
In the opinion of management, the interim data includes
all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim period.
The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the fiscal
year.
1. Organization and Summary of Significant Accounting
Policies
Organization and Basis of Presentation
The Company operates through its wholly-owned subsidiaries,
BKF Investment Group, Inc., formerly known as BKF Management Co., Inc. ("BIG") and BKF Asset Holdings, Inc. (“BKF
Holdings”) all of which are collectively referred to herein as the "Company" or "BKF." The Company trades
on the over the counter market under the symbol ("BKFG"). Currently, the Company plans to engage in the asset management
business through its subsidiary BKF Advisors, Inc., which is a registered investment advisor in the States of Florida and California.
BKF is also seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues
and increase shareholder value.
The consolidated financial statements of BKF include
BIG and BIG's two wholly owned subsidiaries BKF Advisors, Inc. (“BKF Advisors”) and BKF Asset Management, Inc., ("BAM")
and BAM's two wholly-owned subsidiaries, BKF GP, Inc. (“BKF GP”) and LEVCO Securities, Inc. ("LEVCO Securities").
On November 27, 2012 LEVCO Securities was dissolved. All intercompany accounts have been eliminated.
BAM was an investment advisor which was registered
under the Investment Advisers Act of 1940, as amended; it withdrew its registration on December 19, 2006. BAM had no operations
during 2014 and 2013.
Services
During the quarters ended March 31, 2014 and March
31, 2013, the Company did not provide any investment advisory or asset management services.
The Company, through BKF GP, continues to act as the
managing general partner of several private investment partnerships, established prior to 2005, which are in the process of being
liquidated and dissolved.
BKF CAPITAL GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS - (Continued)
Use of Estimates
The preparation of the consolidated financial statements
in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could
differ from those estimates.
Recent Accounting Developments
There are no new accounting standards that are expected
to have a significant impact on the Company.
Cash and Cash Equivalents
Investments in money market funds are valued at net
asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally
recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit
risk related to the money market funds and the market rate inherent in the money market funds.
Other Comprehensive Income
The Company presents other comprehensive income in
accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive
income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately
from retained earnings and additional paid in capital in the equity section of a statement of position.
Fair Values of Financial Instruments
The Company adopted FASB ASC 820-10-50, “Fair
Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair
value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:
Level 1 inputs to the valuation methodology are quoted
prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 inputs to the valuation methodology include
quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability,
either directly or indirectly, for substantially the full term of the financial instrument.
BKF CAPITAL GROUP, INC.
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Level 3 inputs to valuation methodology are unobservable
and significant to the fair measurement.
The carrying amounts reported in the balance sheets
for cash and cash equivalents, and current liabilities each qualify as financial instruments and are a reasonable estimate of fair
value because of the short period of time between the origination of such instruments and their expected realization and their
current market rate of interest. Marketable securities are valued using Level 1 inputs.
2. Investment
a) Investment in Qualstar:
On July 3, 2013, Steven Bronson, BKF’s Chairman,
CEO, and majority shareholder, was appointed Chairman, Chief Executive Officer and President of Qualstar Corporation (“Qualstar”).
This resulted in the 18.3% of the Company’s ownership in Qualstar to be accounted for using the equity method, a change
from available for sale, on the basis that BKF can assert significant influence over the operations of Qualstar. The retroactive
application of the equity method resulted in a decrease to retained earnings at March 31, 2013 of approximately $306,000. In addition,
the basic and diluted earning per share were restated for the year to $-0.06.
The investment in Qualstar is accounted for using
the equity method as prescribed by Accounting Standard Codification Section 323, under which the Company’s carrying amount
of its investment in common stock of Qualstar is the initial cost adjusted for the Company’s share of Qualstar’s earnings
and losses, and further adjusted for any distributions or dividends. At March 31, 2014 the Company held 2,811,420 common shares
of Qualstar, representing approximately 22.94% of the outstanding shares. The investment in Qualstar was approximately $1,127,000
at March 31, 2014. The market value of the Company’s shares in Qualstar was approximately $4.4 million at March 31, 2014.
During the quarter ended March 31, 2014, the Company
recorded a loss on its investment in Qualstar of approximately $58,000. These losses do not include the quarterly results
of Qualstar as of March 31, 2014, as Qualstar’s financial statements are not typically available at the time we prepare our
financial statements. Therefore, all balances related to the Company’s investment in Qualstar are recorded on a three month
(quarterly) lag. This lag is consistent from period to period. The financial results for Qualstar’s quarter ended March 31,
2014 were not available prior to the preparation of our financial statements.
b) Marketable Securities
As of March 31, 2014, the Company held 19,575 shares
of Interlink Electronics. The fair market value of these shares was $274,000 at March 31, 2014. At March 31, 2014, the unrealized
gain on these shares reported in other comprehensive income, was approximately $57,000. Steven Bronson, BKF’s Chairman, CEO
and majority shareholder is also the Chief Executive Officer of Interlink Electronics.
BKF CAPITAL GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS - (Continued)
3. Concentrations
The Company had amounts in excess of $250,000 in a
single bank during the year. Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation. These balances
fluctuate during the year and can exceed this $250,000 limit. Management regularly monitors the financial institution, together
with its cash balances, and tries to keep this potential risk to a minimum.
4. Commitments and Contingencies
The Company could be subject to a variety of claims,
suits and proceedings that arise from time to time, including actions with respect to contracts, regulatory compliance and public
disclosure. These actions may be commenced by a number of different constituents, including vendors, former employees, regulatory
agencies, and stockholders. The following is a discussion of the more significant matters involving the Company.
The Company is a defendant in a lawsuit for claims
for alleged services in the amount of approximately $171,000. The complaint was filed in the New York State Supreme Court and alleges
a claim for breach of contract against BAM for alleged goods and services delivered to BAM. The Company is vigorously defending
this action. The Company has no specific reserve for this action.
5. Control
As of September 30, 2013 Mr. Bronson beneficially
owns 4,111,785 shares of the Company's common stock. Mr. Bronson's beneficial ownership represents approximately 55% of the Company's
issued and outstanding shares of common stock. Accordingly, Mr. Bronson has effective control of the Company. In the election of
directors, stockholders are not entitled to cumulate their votes for nominees. Thus, as a practical matter, Mr. Bronson may be
able to elect all of the Company's directors and otherwise direct the affairs of the Company.
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Item 2.
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Management's Discussion and Analysis of Financial
Condition and Results of Operations
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This Quarterly Report on Form
10-Q contains certain statements that are not historical facts, including, most importantly, information concerning possible or
assumed future results of operations of BKF Capital Group, Inc. (the "Company") and statements preceded by, followed
by or that include the words "may," "believes," "expects," "anticipates," or the negation
thereof, or similar expressions, which constitute "forward-looking statements" within the meaning of the Section 27A
of the Securities Act of 1933 and Section 21E (the "Reform Act") of the Securities Exchange Act of 1934 (the "Exchange
Act"). For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained
in the Reform Act. These forward-looking statements are based on the Company's current expectations and are susceptible to a number
of risks, uncertainties and other factors, including the risks specifically enumerated in Company's Annual Report on Form 10-K
for the year ended December 31, 2013, and the Company's actual results, performance and achievements may differ materially from
any future results, performance or achievements expressed or implied by such forward-looking statements. The Company will not undertake
and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking
statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events. In addition, it is the Company's policy generally not to make any specific projections as to future earnings,
and the Company does not endorse any projections regarding future performance that may be made by third parties.
The following discussion and
analysis provides information which the Company's management believes to be relevant to an assessment and understanding of the
Company's results of operations and financial condition. This discussion should be read together with the Company's financial statements
and the notes to financial statements, which are included in this report, as well as the Company's Annual Report on Form 10-K for
the year ended December 31, 2013.
Background
BKF
was incorporated in Delaware in 1954. The Company's securities trade on the over the counter market under the symbol "BKFG."
The Company operates through its wholly-owned subsidiaries, BKF Investment Group, Inc., formerly known as BKF Management Co., Inc.
("BIG") and BKF Asset Holdings, Inc. (“BKF Holdings”) all of which are collectively referred to herein as
the "Company" or "BKF." The consolidated financial statements of BKF, BIG and BIG's two wholly owned subsidiaries
BKF Advisors, Inc. (“BKF Advisors”) and BKF Asset Management, Inc., ("BAM") and BAM's two wholly-owned subsidiaries,
BKF GP, Inc. (“BKF GP”) and LEVCO Securities, Inc. ("LEVCO Securities"). On November 27, 2012 LEVCO Securities
was dissolved. There were no affiliated partnerships in BKF's March 31, 2014
consolidated
financial statements.
Historically the Company operated
in the investment advisory and asset management business entirely through BAM, which was a registered investment adviser with the
Securities and Exchange Commission ("SEC"). BAM specialized in managing equity portfolios for institutional investors
through its long-only equity and alternative investment strategies. BAM withdrew its registration as a registered investment advisor
on December 19, 2006 and ceased operating in the investment advisory and asset management business. LEVCO Securities, a subsidiary
of BAM, was a broker dealer registered with the SEC and a member of the National Association of Securities Dealers, Inc. (now known
as the Financial Industry Regulatory Authority). LEVCO Securities withdrew its registration as a broker-dealer on November 30,
2006 and ceased operating as a broker dealer. BKF GP, Inc., the other subsidiary of BAM, acts as the managing general partner of
several affiliated investment partnerships which have been in the process of being liquidated and dissolved since 2006.
Since January 1, 2007, the Company
has had no operating business and no assets under management. The Company's principal assets consist of a significant cash position,
investments in securities, sizable net operating tax losses to potentially carry forward, and its status as a publicly traded Exchange
Act reporting company. BKF's current revenue stream will not be sufficient to cover BKF's ongoing expenses, however the Company
has enough cash to continue in operation beyond the upcoming year.
Plan of Operations
On August 2, 2012, the Company
issued a press release disclosing that the Company plans to create an asset management platform with investment vehicles that focus
on areas of portfolio management that typically receive less attention from investors but also present unique investment opportunities.
The Company is also engaged in seeking to arrange an acquisition, with an operating business with revenues, at least three years
of operating history and unique value opportunities. The Press Release is attached as an exhibit to the Company’s Current
Report on Form 8-K, dated August 3, 2012.
In September 2012, the Company
changed the name of its subsidiary BKF Management Co., Inc. to BKF Investment Group, Inc. and formed a wholly owned subsidiary,
BKF Advisors, Inc. (“BKF Advisors”). BKF Advisors has registered as an investment advisor with the State of Florida
and the State of California. The Company expects that BKF Advisors will act as the investment advisor to the BKF Income Fund, L.P.,
a newly formed Delaware limited partnership that plans to engage as an investment fund (the “Partnership”). BAM is
the general partner of the Partnership.
The Company expects to seed the Partnership which
expects to focus on small-cap and micro-cap companies with a value based approach to investing. Thereafter, the Company intends
to grow its asset management business by acquiring or seeding other alternative investment funds with unique investment strategies
and/or emerging portfolio managers. The Company’s goal is to grow revenues and income over time and achieve valuation multiples
in line with other publicly-traded comparable companies. The Company expects to create value for its shareholders by rebuilding
its asset management operations, and expects to earn fee income for assets under management, performance fees upon successfully
liquidating investments and from its proprietary capital investments in the investment funds for which BKF acts as the general
partner. Moreover, the Company has substantial net operating loss carry-forwards that it may be able to use to offset future profits
and thereby minimize tax liabilities.
The Company is also seeking to
arrange for a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating
entity. The Company shall endeavor to utilize some or all of the Company's net operating loss carryforwards in connection with
a business combination transaction; however, there can be no assurance that the Company will be able to utilize any of its net
operating loss carryforwards. The Company has not identified a viable operating entity for a merger, acquisition, business combination
or other arrangement, and there can be no assurance that the Company will ever successfully arrange for a merger, acquisition,
business combination or other arrangement by and between the Company and a viable operating entity.
The Company anticipates that
the selection of a business opportunity will be a complex process and will involve a number of risks, because potentially available
business opportunities may occur in many different industries and may be in various stages of development. Due in part to depressed
economic conditions in a number of geographic areas and shortages of available capital, management believes that there are numerous
firms seeking either the additional capital which the Company has or the benefits of a publicly traded corporation, or both. The
perceived benefits of a publicly traded corporation may include facilitating or improving the terms upon which additional equity
financing may be sought, providing liquidity for principal shareholders, creating a means for providing incentive stock options
or similar benefits to key employees, providing liquidity for all shareholders and other factors.
In some cases, management of
the Company will have the authority to effect acquisitions without submitting the proposal to the shareholders for their consideration.
In some instances, however, the proposed participation in a business opportunity may be submitted to the shareholders for their
consideration, either voluntarily by the Board of Directors to seek the shareholders' advice and consent, or because of a requirement
of State law to do so.
In seeking to arrange a merger,
acquisition, business combination or other arrangement by and between the Company and a viable operating entity, the Company's
objective will be to obtain long-term capital appreciation for the Company's shareholders. There can be no assurance that the Company
will be able to complete any merger, acquisition, business combination or other arrangement by and between the Company and a viable
operating entity.
The Company may need additional
funds in order to effectuate a merger, acquisition or other arrangement by and between the Company and a viable operating entity,
although there is no assurance that the Company will be able to obtain such additional funds, if needed. Even if the Company is
able to obtain additional funds there is no assurance that the Company will be able to effectuate a merger, acquisition or other
arrangement by and between the Company and a viable operating entity.
Qualstar Investment
On December 17, 2010, the Company purchased
1,500,000 shares of Qualstar Corporation ("Qualstar") common stock in a privately negotiated transaction at the price
of $1.55 per share or the total aggregate amount of $2,325,000 (the “2010 Purchase”). Qualstar is a diversified electronics
manufacturer specializing in data storage, power supplies and computer pointing devices. Qualstar's products are known throughout
the world for high quality and Simply Reliable designs that provide years of trouble-free service. The securities of Qualstar are
traded on NASDAQ under the symbol "QBAK." The registrant purchased the Qualstar shares from Richard A. Nelson and Kathleen
R. Nelson as Co-Trustees of the Nelson Family Trust U/A DTD 01/19/2000. Richard A. Nelson is an officer and director of Qualstar.
Following the 2010 Purchase, BKF owned approximately 12.2% of issued and outstanding shares of Qualstar. The Company previously
disclosed its acquisition of shares of Qualstar in Current Report on Form 8-K filed on December 23, 2010. Following the December
17, 2010 transaction BKF increased its Qualstar holdings through open market transactions.
On February 15, 2012 BKF sent a letter
to the Qualstar board of directors, which was attached as an exhibit to the Company’s Schedule 13D filing on February 21,
2012. In the February 15, 2012 letter, BKF suggested steps that the Qualsar board can and should take to maximize shareholder value.
The Qualstar board did not discuss the Feburary 15, 2012 letter with BKF and it failed to take any of the requested actions. In
or about May 2012, BKF launched a proxy contest to remove and replace the board of directors of Qualstar. See BKF’s Definitive
Proxy Statement on Schedule 14A, filed on June 6, 2012, which is incorporated herein by reference. The special meeting of the shareholders
of Qualstar occurred on June 20, 2012. While BKF’s proposals did receive approval of the majority of the votes cast at the
meeting, they did not receive approval from a majority of the outstanding shares, which was required to remove the incumbent Qualstar
board.
On January 17, 2013, BKF sent a letter (the
“Notice”) to the Qualstar Board, notifying Qualstar Board that in accordance with Section 6 of Article II of Qualstar’s
Bylaws, as amended and restated as of March 24, 2011, BKF Capital intends to nominate six (6) directors to serve on Qualstar’s
Board of Directors at the 2013 Annual Meeting of Shareholders. Specifically, in the Notice, BKF nominated the following persons
for election to Qualstar’s Board of Directors at the 2013 Annual Meeting of Shareholders: Steven N. Bronson, Edward J. Fred,
Sean M. Leder, David J. Wolenski, Alan B. Howe and Maria Fregosi.
On January 30, 2013, BKF announced a partial
tender offer to purchase up 3,000,000 shares of Qualstar’s common stock at a purchase price of $1.65 per share (the “PTO”),
which was a 19% increase above the share price of Qualstar’s common stock on the day before the offering was announced. The
PTO provided that BKF would purchase a minimum of 1,000,000 shares in the PTO. In connection with the PTO, BKF filed a Scheduled
TO on January 30, 2013, which is incorporated herein by reference. On February 5, 2013, the board of directors of Qualstar adopted
a poison pill in the form of a rights plan that would be triggered in the event that BKF purchased any additional shares. After
analyzing the poison pill adopted by the Qualstar board of directors and the likelihood that a court would strike down the poison
pill, on February 11, 2013, BKF announced that it would withdraw and terminate the PTO. In connection with the termination of the
PTO, BKF filed a Schedule 14A on February 11, 2013, which is incorporated herein by reference.
On June 6, 2013, BKF filed its
definitive proxy statement for Qualstar’s 2013 Annual Meeting of Shareholders (the “Qualstar Meeting”) to be
held on June 28, 2013. In its proxy statement BKF nominated five (5) persons to be elected to the board of directors of Qualstar.
Specifically, BKF nominated Steven N. Bronson, Sean M. Leder, David J. Wolenski, Alan B. Howe and Dale E. Wallis. At the Qualstar
Meeting, the shareholders of Qualstar voted to elect BKF Capital’s nominees to the board of directors of Qualstar. Specifically,
the Qualstar shareholders elected the following persons to serve on the Qualstar board of directors: Steven N. Bronson, Sean M.
Leder, David J. Wolenski, Alan B. Howe and Dale E. Wallis. On July 3, 2013, Steven N. Bronson, our Chairman, CEO and President,
was appointed to serve as Qualstar’s Chairman and interim CEO and President. In August 2013, Qualstar reimbursed BKF for
the costs and expenses incurred in connection with the 2012 proxy contenst and the 2013 proxy contest in the aggregate amount of
$356,000.
At
March 31, 2014
the Company held 2,811,420 common shares of Qualstar
representing approximately 22.94% of the issued and outstanding shares of Qualstar. The Company holds the shares of Qualstar for
investment purposes and is currently considering its options. The Company is in the process of transferring its holdings of Qualstar
shares into its wholly owned subsidiary BKF Asset Holdings, Inc.
RESULTS OF OPERATIONS
The following discussion and
analysis of the results of operations is based on the Consolidated Statements of Financial Condition and Consolidated Statements
of Operations for BKF Capital Group, Inc. and Subsidiaries.
Income
Total
income for the three months ended March 31, 2014
was $ 2,000 compared
to $10,000 in the same period in 2013, a decrease of $ 8,000. The decrease is primarily due to a decrease in interest income and
other income.
Expenses
Total
expenses for the three months ended March 31,2014
were approximately
$64,000, reflecting an decrease of 68% from $197,000 in expenses in the same period in 2013. These expenses are primarily attributable
to professional fees related to the proxy contest for Qualstar.
Other Income and Loss
Loss on equity investment for 2014 was approximately $58,000
compared to a loss of $306,000 in 2013. The decrease is primarily attributable to the curtailment of expenses by Qualstar.
Net Income/Net Loss
Net
Loss for the three months ended March 31, 2014
was $120,000, as
compared to a net loss of $493,000 in the same period in 2013.
LIQUIDITY AND CAPITAL RESOURCES
BKF's
current assets as of March 31, 2014
consist primarily of cash and
investments.
While BKF has historically met its cash
and liquidity needs through cash generated by operating activities, cash flow from current activities may not be sufficient to
fund operations in the future. BKF will use a portion of its existing working capital for such purposes.
At March 31, 2014, BKF had cash and cash
equivalents of $5.3 million, compared to $5.9 million of cash and cash equivalents at December 31, 2013.
OFF BALANCE SHEET RISK
There has been no material change with respect
to the off balance sheet risk incurred by the Company since March 31, 2014.