Permanent Equity

6 Months Ended

Jun. 30, 2012

Permanent Equity [Abstract]

PERMANENT EQUITY

14. PERMANENT EQUITY

Stockholders’ Equity

Common Equity: The following table reflects the activity for the six months ended June 30, 2012 related to the number of shares of unrestricted common stock that the Company had issued as of June 30, 2012:

	Common Stock Shares
Balance at December 31, 2011 (1)		10,132,497
Shares issued in connection with the redemption of Operating LLC units		186,339
Vesting of shares		239,259
Shares withheld for employee taxes		(1,780	)
Balance at June 30, 2012 (1)		10,556,315

(1) Includes 50,400 shares of the Company’s common stock held as treasury stock.

In connection with the acquisition of JVB in January 2011, the Company issued 559,020 restricted units of the Operating LLC to certain of the former owners of JVB that remained employees of JVB following the acquisition. These units include a service requirement and vest over a three year period and are treated as compensation for future service rather than as part of the purchase price to acquire JVB. In January 2012, 186,339 restricted units of the Operating LLC vested, and the holders of these vested Operating LLC membership units elected to redeem these units. The Company, at its discretion, issued 186,339 shares of IFMI common stock to the JVB sellers in exchange for the 186,339 vested membership units.

Acquisition and Surrender of Additional Units of the Operating LLC, net: Effective January 1, 2011, IFMI and the Operating LLC entered into a Unit Issuance and Surrender Agreement (the “UIS Agreement”) which was approved by IFMI’s Board of Directors and the board of managers of the Operating LLC. In an effort to maintain a 1:1 ratio of IFMI’s common stock to the number of membership units IFMI holds in the Operating LLC, the UIS Agreement calls for the issuance of additional membership units of the Operating LLC to IFMI when IFMI issues its common stock to employees under existing equity compensation plans. In certain cases, the UIS Agreement calls for IFMI to surrender units to the Operating LLC when certain restricted shares are forfeited by the employee or repurchased. During the six months ended June 30, 2012, the Operating LLC issued to IFMI 464,946 units related to the UIS Agreement.

In January 2012, IFMI received 186,339 vested membership units from certain former owners of JVB in exchange for the Company’s issuance of 186,339 shares of IFMI common stock to the same former owners.

In summary, during the six months ended June 30, 2012, IFMI received (net of surrenders) 651,285 units of the Operating LLC pursuant to the UIS Agreement and as a result of the vesting and redemption of membership units of the Operating LLC by certain former owners of JVB for IFMI common stock. The Company recognized a net increase in additional paid in capital of $828 and a net increase in accumulated other comprehensive loss of $28 with an offsetting decrease in non-controlling interest of $800 in connection with the acquisition and surrender of additional units of Operating LLC.

The following schedule presents the effects of changes in IFMI’s ownership interest in the Operating LLC on the equity attributable to IFMI:

	June 30, 2012			June 30, 2011
Net income / (loss) attributable to IFMI	$	(5,937	)	$	(2,996	)
Transfers (to) from the non-controlling interest:
Increase in IFMI’s paid in capital for the acquisition / (surrender) of additional units of consolidated subsidiary, net		828			972
Changes from net income / (loss) attributable to IFMI and transfers (to) from non-controlling interest	$	(5,109	)	$	(2,024	)