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PLCC 10Q WOW!

http://biz.yahoo.com/e/050815/plcc10-q.html

Three Months Ended June 30, 2005 vs. Three Months Ended June 30, 2004

Revenues

Total revenues for the second quarter of 2005 increased $13.2 million. As shown in the table above, sales commissions-which are commissions generated from the retail stock brokerage business-decreased approximately $300,000 as a result of lackluster market performance and lower commissions associated with corporate finance transactions. Sales commissions are also directly related to the number of brokers engaged by the Company. The Company had 95 stockbrokers as of June 30, 2005, as compared to 104 as of June 30, 2004, a decrease of approximately 9 percent.

Corporate finance revenue decreased $1.8 million, from the second quarter of 2004 to the second quarter of 2005. The Company completed two corporate finance transactions in the second quarter of 2004 with proceeds totaling $14.5 million, as compared to one corporate finance transaction in the second quarter of 2005 with gross proceeds totaling $2.7 million.

Investment income increased $13.9 million in the second quarter of 2005 as compared to the second quarter of 2004. Investment income can be volatile period-over-period based on the fact it is driven by the market value or fair value of the securities and underwriter warrants held by the Company. Investment income consists of (1) the unrealized appreciation and depreciation of securities held based on quoted market prices, (2) the unrealized appreciation and depreciation of securities held that are not readily marketable, based upon the Company's estimate of their fair value, (3) the realized gain and loss on the sale of securities with quoted market prices and securities that are not readily marketable, and (4) the unrealized appreciation and depreciation of underwriter warrants held by the Company. The appreciation of underwriter warrants totaled approximately $322,000 during the second quarter of 2005, as compared to the depreciation and expiration of underwriter warrants of approximately $611,000 for the second quarter of 2004. In addition, in the Company's investment account, the holdings in Charles & Colvard, Ltd., increased in value over $8.5 million and the holdings in Daystar Technologies, Inc., increased in value over $1.8 million during the second quarter of 2005. The Company has a concentration in Charles and Colvard with holdings approximating $21.3 million as of June 30, 2005. The Company may sell Charles & Colvard, Ltd., and/or Daystar Technologies, Inc., or any other security in its investment account any time deemed appropriate. The remainder of the total investment income is the result of the unrealized and realized appreciation of securities with quoted market prices. There was no change in the estimated fair value of securities not readily marketable during the second quarter of 2005.