U.S. Securities and Exchange Commission
                              Washington D.C. 20549

                                   Form 10-QSB


[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
                  For the quarterly period ended June 30, 1997

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

                        Commission File Number 33-70334-A


                    INTERNATIONAL ASSETS HOLDING CORPORATION
        (Exact name of small business issuer as specified in its charter)



         Delaware                                                   59-2921318
- ------------------------------------------------------------------------------
(State or other jurisdiction of              (IRS Employer Identification No.)
incorporation or organization)

                        250 Park Avenue South, Suite 200
                              Winter Park, FL 32789
                    (Address of principal executive offices)

                                 (407) 629-1400
                           (Issuer's telephone number)

                                       NA
(Former name,former address and former fiscal year,if changed since last report)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ].

The number of shares  outstanding  of Common Stock was 1,415,477 as of August 6,
1997.

Transitional small business disclosure format   Yes [ ]   No [X]




                                       

                                      






                                      INDEX



                                                                   Page No.
Part I.           FINANCIAL INFORMATION


   Item 1.        Condensed Consolidated Financial Statements

                  Condensed Consolidated Balance Sheet as of June 30, 1997   3

                  Condensed Consolidated Statements of Operations for the
                  Nine Months ended June 30, 1997, and 1996                  5

                  Condensed Consolidated Statements of Operations for the
                  Three Months ended June 30, 1997, and 1996                 6

                  Condensed Consolidated Statements of Cash Flows for the
                  Nine Months ended June 30, 1997, and 1996                  7

                  Notes to Condensed Consolidated Financial Statements       9

   Item 2.        Management's Discussion and Analysis or Plan of Operation 11


Part II.          OTHER INFORMATION

   Item 6.        Exhibits and Reports on Form 8-K                          16

                  Signatures                                                17





                                       2







                  INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES

                          Condensed Consolidated Balance Sheet

                                  June 30, 1997

                                   (Unaudited)


             Assets


Cash                                                       $         445,845
Cash deposits with clearing broker                                 2,129,735
Investments                                                        1,314,284
Other receivables                                                     81,197
Securities owned, at market value                                  3,323,070
Deferred income tax benefit                                           51,232

Property and equipment, at cost:
     Leasehold improvements                                           52,953
     Furniture and equipment                                         829,287
                                                               -------------

                                                                     882,240
Less accumulated depreciation and amortization                       426,212
                                                             ---------------

             Net property and equipment                              456,028

Other assets, net of accumulated amortization of $78,502             303,313








                                                              ===============
                                                           $       8,104,704
                                                              ===============



See accompanying notes to condensed consolidated financial statements.


                                       3



          INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES

                            Condensed Consolidated Balance Sheet

                                  June 30, 1997

                                   (Unaudited)


             Liabilities and Stockholders' Equity


Liabilities:
     Securities sold, but not yet purchased, at market value  $         896,892
     Payable to clearing broker                                         171,435
     Accounts payable                                                   144,157
     Accrued employee compensation  and benefits                        893,053
     Other accrued expenses                                             240,348
     Income taxes payable                                                76,238
     Deferred income taxes                                                  677
     Other                                                                7,638
                                                                ---------------

             Total liabilities                                        2,430,438
                                                                 ---------------


Stockholders' equity:
     Preferred stock, $.01 par value.  Authorized 1,000,000
       shares; issued and outstanding -0- shares                          -
    Common stock, $.01 par value.  Authorized 3,000,000
       shares; issued and outstanding 1,419,904 shares                   14,199
     Additional paid-in capital                                       3,162,270
     Retained earnings                                                2,497,797
                                                                ---------------
             Total stockholders' equity                               5,674,266




                                                                 ===============
                                                              $       8,104,704
                                                                 ===============

See accompanying notes to condensed consolidated financial statements.




                                       4



            INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations

                For the Nine Months Ended June 30, 1997 and 1996

                                   (Unaudited)

1997 1996 ---- ---- Revenues: Commissions $ 6,649,876 6,594,941 Net dealer inventory and investment gains 1,932,332 1,783,535 Other revenue 483,953 466,295 ---------------- ----------------- Total revenues 9,066,161 8,844,771 ---------------- ----------------- Expenses: Commissions and clearing fees 3,806,636 3,666,213 Employee compensation and benefits 1,976,765 1,906,807 Communications and promotions 1,106,964 1,286,638 Other operating expenses 1,270,755 979,334 ---------------- ----------------- Total expenses 8,161,120 7,838,992 ---------------- ----------------- Income before income taxes 905,041 1,005,779 Income tax expense 373,013 408,754 ---------------- ----------------- Net income $ 532,028 597,025 ================ ================= Earnings per common and dilutive common equivalent share: Primary: $ .313 .326 Fully diluted: $ .313 .326 Weighted average number of common and dilutive common equivalent shares outstanding: Primary: 1,915,855 2,155,527 Fully diluted: 1,915,855 2,155,527
See accompanying notes to condensed consolidated financial statements. 5 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations For the Three Months Ended June 30, 1997 and 1996
1997 1996 ---- ---- Revenues: Commissions $ 2,494,030 2,109,340 Net dealer inventory and investment gains 746,598 547,970 Other revenue 182,018 184,335 ----------------- ----------------- Total revenues 3,422,646 2,841,645 ----------------- ----------------- Expenses: Commissions and clearing fees 1,425,624 1,171,382 Employee compensation and benefits 721,056 634,599 Communications and promotions 363,442 420,591 Other operating expenses 497,242 354,487 ----------------- ----------------- Total expenses 3,007,364 2,581,059 ----------------- ----------------- Income before income taxes 415,282 260,586 Income tax expense 166,375 105,247 ----------------- ----------------- Net Income $ 248,907 155,339 ================= ================= Earnings per common and dilutive common equivalent share: Primary: $ .159 .086 Fully diluted: $ .159 .086 Weighted average number of common and dilutive common equivalent shares outstanding: Primary: 1,605,873 2,226,133 Fully diluted: 1,605,873 2,226,133
See accompanying notes to condensed consolidated financial statements. 6 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows For the Nine Months Ended June 30, 1997 and 1996 (Unaudited)
1997 1996 ---- ---- Cash flows from operating activities: Net income $ 532,028 597,025 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net amortization and appreciation of investments (65,096) (70,758) Depreciation and amortization 121,264 91,946 Deferred income taxes (39,607) 3,184 Cash provided by (used for) changes in: Receivable from clearing broker 237,136 (292,107) Receivable from affiliated company 26,542 12,127 Other receivables 26,888 49,463 Securities owned (852,475) (983,747) Other assets (135,362) (30,012) Securities sold, but not yet purchased (132,189) 199,305 Payable to clearing broker 171,435 - Accounts payable 33,124 (8,182) Accrued employee compensation and benefits 49,109 29,432 Other accrued expenses 84,027 (29,569) Income taxes payable (45,080) (43,430) Other liabilities 75 135 ----------------- --------------- Net cash provided by (used for) operating activities 11,819 (475,188) ----------------- --------------- Cash flows from investing activities: Disposal of investments 5,800,000 7,729,000 Acquisition of investments (5,730,191) (7,393,001) Acquisition of property, equipment and other assets (235,388) (191,192) ----------------- --------------- Net cash provided by (used for) investing activities (165,579) 144,807 ----------------- ---------------
(continued) See accompanying notes to condensed consolidated financial statements. 7 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows, Continued
1997 1996 ---- ---- Cash flows from financing activities: Acquisition of common shares related to repurchase program (32,321) (27,089) Acquisition of common shares for treasury (67,822) - ----------------- --------------- Net cash used for financing activities (100,143) (27,089) ----------------- --------------- Net decrease in cash and cash equivalents (253,903) (357,470) Cash and cash equivalents at beginning of period 2,829,483 1,604,871 ----------------- --------------- Cash and cash equivalents at end of period $ 2,575,580 1,247,401 ================= =============== Supplemental disclosure of cash flow information: Cash paid for interest $ 2,166 5,897 ================= =============== Income taxes paid $ 457,700 449,000 ================= ===============
See accompanying notes to condensed consolidated financial statements. 8 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 30, 1997 and 1996 (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions and requirements of Form 10-QSB and, therefore, do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the opinion of Management, such financial statements reflect all adjustments necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company's audited consolidated financial statements for the year ending September 30, 1996, filed on Form 10-KSB (SEC File Number 33-70334-A). As used in this Form 10-QSB, the term "Company" refers, unless the context requires otherwise, to International Assets Holding Corporation and its five wholly owned subsidiaries; International Assets Advisory Corp.("IAAC"), Global Assets Advisors, Inc. ("GAA"), International Financial Products, Inc. ("IFP"), GlobalNet Securities, Inc. ("GNSI") and International Asset Management Corp. ("IAMC"). All significant intercompany balances and transactions have been eliminated in consolidation. (2) Securities Owned and Securities Sold, But Not Yet Purchased Securities owned and Securities sold, but not yet purchased at June 30, 1997, consist of trading and investment securities at quoted market values as follows:
Sold, but not Owned yet purchased Obligations of U.S. Government $ 1,048,214 - Common stock and American Depository Receipts 1,167,883 896,892 Proprietary unit investment trusts 786,695 - Corporate debt securities 166,857 - Foreign government obligations 153,421 - ------------ -------- $ 3,323,070 896,892
9 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements, continued (3) Earnings Per Common Share Primary and fully diluted earnings per common and dilutive common equivalent share for the three months and the nine months ended June 30, 1997 and 1996, have been computed by dividing adjusted net income by the weighted average number of common and dilutive common equivalent shares outstanding. Common equivalent shares represent shares of common stock issuable upon the assumed exercise of stock options and warrants. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings per Share." Statement 128 supersedes APB Opinion No. 15, "Earnings per Share," and specifies the computation, presentation, and disclosure requirements for earnings per share ("EPS") for entities with publicly held common stock or potential common stock. Statement 128 was issued to simplify the computation of EPS. It requires dual presentation of basic and diluted EPS on the face of the statements of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Statement 128 is effective for financial statements for both interim and annual periods ending after December 15, 1997. Earlier application is not permitted. After adoption, all prior period EPS data presented shall be restated to conform to Statement 128. Under Statement 128, basic EPS would be $.173 and $.107 for the three months ended June 30, 1997 and 1996, respectively, and $.369 and $.409 for the nine months ended June 30, 1997 and 1996, respectively. Diluted EPS would be $.169 and $.100 for the three months ended June 30, 1997 and 1996, respectively, and $.356 and $.394 for the nine months ended June 30, 1997 and 1996, respectively. (4) Leases The Company occupies leased office space of approximately 13,815 square feet at 250 Park Avenue South, Winter Park, Florida. In December 1996, the Company executed an amendment to enhance this leased office space and extend the lease expiration from November 1999 to May 2001. The Company is obligated under various noncancelable operating leases for the rental of its office facilities and certain office equipment. Rent expense associated with operating leases amounted to $230,583 and $219,822 for the nine months ended June 30, 1997, and 1996, respectively. The minimum lease payments under noncancelable operating leases as of June 30, 1997 are as follows: 10 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements, continued Fiscal Year (12 month period) Ending September 30, -------------------------------------------------- 1997 $ 308,600 1998 313,400 1999 308,500 2000 320,000 2001 231,300 Thereafter 17,500 Total future minimum lease payments $1,499,300 (5) Stock Repurchase Program On March 13, 1996, the Board of Directors authorized the Company to repurchase up to $500,000 in shares of the Company's common stock in the open market during the remainder of the fiscal year ended September 30, 1996. On October 4, 1996, the Company announced that the Board of Directors authorized the Company to continue its repurchase of common stock up to $500,000 in the open market during the remainder of the fiscal year that ends September 30, 1997. The stock purchases will be made in the open market from time to time as market conditions permit. The Company is required to comply with Rule 10b-18 and Regulation M of the Securities and Exchange Commission which regulate the specific terms in which shares may be repurchased. As of August 6, 1997, the Company has repurchased a total of 21,400 shares under this repurchase program at a total cost of $81,013. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION. The Company's assets increased from $7,528,292 at September 30, 1996, to $8,104,704 at June 30, 1997, or an increase of $576,412. The Company's liabilities increased from $2,285,911 at September 30, 1996, to $2,430,438 at June 30, 1997, or an increase of $144,527. The increase in the net assets (assets less liabilities) of $431,885 primarily relates to the $532,028 net income earned for the nine month fiscal period net of stock repurchase costs from the stock repurchase program and repurchases from terminated participants of the Company's Employee Stock Ownership Plan together totaling $100,143 for the same period. The Company's condensed consolidated balance sheet at June 30, 1997, reflects a payable to clearing broker, for trades which had not yet settled for cash, due to the costs from the purchase of securities exceeding the proceeds of securities sold. 11 Results of Operations: The Company's principal activities, securities brokerage and the trading of and market-making in securities, are highly competitive and extremely volatile. The earnings of the Company are subject to wide fluctuations since many factors over which the Company has little or no control, particularly the overall volume of trading and the volatility and general level of market prices, may significantly affect its operations. Nine Months Ended June 30, 1997, as Compared to the Nine Months Ended June 30, 1996 The Company's revenues are derived primarily from commissions earned on the sale of securities and trading income in securities purchased or sold for the Company's account. Total revenues increased by approximately $221,000, or 3% for the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. For the nine months ended June 30, 1997, and 1996, approximately 73% and 75%, respectively, of the Company's revenues were derived from commissions earned on the sale of securities. For the nine months ended June 30, 1997, and 1996, approximately 21% and 20%, respectively, of the Company's total revenues were from net dealer inventory and investment gains (trading revenue). Commission revenue increased by approximately $55,000, or 1% for the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. The average number of account executives increased from 40 as of June 30, 1996, to 42 as of June 30, 1997. During the nine months ended June 30, 1997, the overall volume of customer ticket orders increased by approximately 8% and the average dollar amount of retail trades decreased by approximately 6%, as compared to the nine months ended June 30, 1996. This 8% increase in ticket volume is primarily attributable to promotional activities that included the execution of free trades for new clients during the first half of the current fiscal year. This promotional activity also caused the average dollar amount of retail trades to be reduced. Revenues from net dealer inventory and investment gains increased by approximately $149,000, or 8% for the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. The increase in trading revenue is primarily attributable to increases in the Company's fixed income trading due to the hiring of a new fixed income trader and increases in the volume of wholesale trading activities. The Company's trading department primarily concentrates on global securities that it believes are likely to be traded by the Company's clients. By focusing on these types of securities, trading revenue is more directly related to commission revenue and order flow. Other revenues increased by approximately $18,000 or 4% during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. The increase in other revenue is primarily due to increases in earned money management fees, account maintenance fees and subscription fee income. 12 The major expenses incurred by the Company relate to direct costs of securities operations such as commissions and clearing fees, employee compensation and benefits and communications and promotions expense. Total expenses increased by approximately $322,000, or 4% for the nine months ended June 30, 1997, as compared to the same period in 1996. This increase in expense is primarily attributable to increases in commissions and clearing fees, employee compensation and other operating expenses. Commissions and clearing fees increased approximately $140,000, or 4% during the nine months ended June 30, 1997, as compared to the same period in 1996. This increase is directly related to the 1% increase in commission revenue and the 8% increase in trading revenue for the same period. Employee compensation and benefits expense increased approximately $70,000, or 4% during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. The increase in employee compensation and benefits is primarily due to the cost of additional employees hired by the company and increases in employee compensation during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. Partially offsetting this increase in employee compensation is a decrease in performance based bonus accruals based on the decrease in income before income taxes. Overall communication and promotions expenses decreased by approximately $180,000, or 14% during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. This decrease is primarily due to the elimination of funding from the Company to IFP for promotional activities. As of October 1996, Company funding for all IFP promotional activities was ceased due to the unsuccessful efforts of IFP in generating revenues. Other operating expenses increased approximately $291,000, or 30% during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. This increase is attributable to increases in expenses incurred for rental of leased premises, insurance expense, professional fees, contributions and amortization and depreciation expense. As a result of the above, income before income taxes decreased by approximately $101,000 or 10% during the nine months ended June 30, 1997, as compared to the nine months ended June 30, 1996. The Company's effective income tax rate was approximately 41% for both the nine months ended June 30, 1997, and 1996. Three Months Ended June 30, 1997, as Compared to the Three Months Ended June 30, 1996 Total revenues increased by approximately $581,000, or 20% for the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. For the three months ended June 30, 1997, and 1996, approximately 73% and 74%, respectively, of the Company's revenues were derived from commissions earned on the sale of securities. For the three months ended June 30, 1997, and 1996, approximately 22% and 19%, respectively, of the Company's total revenues were derived from net dealer inventory and investment gains (trading revenue). 13 Commission revenue increased by approximately $385,000, or 18% for the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. The increase in revenues is related to an 18% increase in ticket volume and a 1% increase in the average dollar amount of trades during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. This increase in commission revenue is also related to an increase in the number of account executives from 38, as of June 30, 1996, to 46, as of June 30, 1997, or an increase of 21%. Revenues from net dealer inventory and investment gains increased by approximately $199,000, or 36% for the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. The increase in trading revenue is primarily attributable to increases in the Company's fixed income trading due to the hiring of a new fixed income trader and increases in wholesale trading activities. Other revenues decreased by approximately $2,000, or 1% during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. This decrease is primarily attributable to a decrease in dividend income, caused by a change in the mix of dividend paying securities held by the trading department during short term durations, for the three months ended June 30, 1997, as compared to the same period in 1996. This decrease in dividend income was partially offset by increases in money management fees and account maintenance fees. The major expenses incurred by the Company relate to direct costs of securities operations such as commissions and clearing fees, employee compensation and benefits and communications and promotions expense. Total expenses increased by approximately $426,000, or 17% for the three months ended June 30, 1997, as compared to the same period in 1996. This increase in expense is primarily attributable to increases in commissions and clearing fees, employee compensation and benefits and other operating expenses. Commissions and clearing fees increased approximately $254,000, or 22% during the three months ended June 30, 1997, as compared to the same period in 1996. This increase is directly related to the 18% increase in commission revenue and the 36% increase in trading revenue for the same period. Employee compensation and benefits expense increased approximately $86,000, or 14% during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. This increase in employee compensation and benefits is primarily due to the cost of additional employees hired by the Company and increases in employee compensation as well as increases in performance based bonus accruals based on the increase in income before income taxes by the Company during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. 14 Overall communication and promotions expense decreased approximately $57,000, or 14% primarily due to decreased promotional activities during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. Other operating expenses increased approximately 40% during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. This increase is attributable to increases in expenses incurred for insurance expense, professional fees, contributions and amortization and depreciation expense. As a result of the above, income before income taxes increased by approximately $155,000 during the three months ended June 30, 1997, as compared to the three months ended June 30, 1996. The Company's effective income tax rate was approximately 40% for the three months ended June 30, 1997, and 1996. Liquidity and Capital Resources Substantial portions of the Company's assets are liquid. At June 30, 1997, approximately 88% of the Company's assets consisted of cash, cash equivalents, and marketable securities. All assets are financed by the Company's equity capital, short-term borrowings from securities lending transactions and other payables. The Company's wholly owned registered securities broker/dealer subsidiary IAAC is subject to the requirements of the SEC and the NASD relating to liquidity and net capital levels. At June 30, 1997, IAAC had net capital of approximately $2,535,000, which was approximately $2,413,000 in excess of its minimum net capital requirement at that date. In the opinion of management, the Company's existing capital and cash flow from operations will be adequate to meet the Company's capital needs for at least the next 12 months in light of known and reasonably estimated trends. In addition, management believes that the Company will be able to obtain additional short or medium-term financing that may be desirable in the ordinary conduct of its business. The Company has no plans for additional financing and there can be no assurance such financing will be available. 15 PART II ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a). Exhibits (11) The Statements of Computation of Earnings Per Share are attached hereto as Exhibit 11 (27) Broker-Dealers and Broker Dealer Holding Companies Financial Data Schedule BD is attached hereto as Exhibit 27 b). Form 8-K No reports were filed on Form 8-K during the nine months ended June 30, 1997. 16 Signatures In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTERNATIONAL ASSETS HOLDING CORPORATION Date 08/13/97 /s/ Jerome F. Miceli Jerome F. Miceli President and Chief Operating Officer Date 08/13/97 /s/ Jonathan C. Hinz Jonathan C. Hinz Chief Accounting Officer 17 INTERNATIONAL ASSETS HOLDING CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE For the Nine Months Ended June 30, 1997 and 1996
1997 1996 ---- ---- Adjustment of shares outstanding: Weighted average number of actual common shares outstanding 1,442,437 1,459,756 Weighted average number of additional common shares outstanding assuming the exercise of common stock equivalents (1) 473,418 695,771 Weighted average number of common and dilutive ============== ============== common equivalent shares outstanding 1,915,855 2,155,527 ============== ============== Adjustment of net income: Actual net income $532,028 $597,025 Adjustment to net income assuming the investment of excess proceeds received from the assumed exercise of common stock equivalents, net of income taxes $67,709 $104,728 ============== ============== Adjusted net income $599,737 $701,753 ============== ============== Earnings per common and dilutive common equivalent share: Primary: $.313 $.326 Fully diluted (2): $.313 $.326
- ------------------------------------------------------------------------------- (1) This calculation assumes that of all the additional common shares outstanding, assuming the exercise of all common stock equivalents, 283,981 shares of common stock are re-acquired with the proceeds therefrom as of October 1, 1996 and 290,857 shares are re-acquired as of October 1, 1995. (2) In 1997 and 1996 there were no other potentially dilutive securities present other than the common stock equivalents (common stock warrants and common stock options), therefore, primary and fully diluted earnings per share amounts are the same. 18 INTERNATIONAL ASSETS HOLDING CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE For the Three Months Ended June 30, 1997 and 1996
1997 1996 ---- ---- Adjustment of shares outstanding: Weighted average number of actual common shares outstanding 1,434,853 1,457,534 Weighted average number of additional common shares outstanding assuming the exercise of common stock equivalents (1) 171,020 768,599 Weighted average number of common and dilutive ============== ============== common equivalent shares outstanding 1,605,873 2,226,133 ============== ============== Adjustment of net income: Actual net income $248,907 $155,339 Adjustment to net income assuming the investment of excess proceeds received from the assumed exercise of common stock equivalents, net of income taxes $6,826 $36,508 ============== ============== Adjusted net income $255,733 $191,847 ============== ============== Earnings per common and dilutive common equivalent share: Primary: $.159 $.086 Fully diluted (2): $.159 $.086
- ------------------------------------------------------------------------------- (1) This calculation assumes that of all the additional common shares outstanding, assuming the exercise of all common stock equivalents, 283,981 shares of common stock are re-acquired with the proceeds therefrom as of April 1, 1997 and 290,857 shares are re-acquired as of April 1, 1996. (2) In 1997 and 1996 there were no other potentially dilutive securities present other than the common stock equivalents (common stock warrants and common stock options), therefore, primary and fully diluted earnings per share amounts are the same. 19
 

BD 1 9-MOS SEP-30-1997 JUN-30-1997 2,575,580 81,197 0 0 4,637,354 456,028 8,104,704 0 1,113,448 0 0 896,892 0 0 0 14,199 5,660,067 8,104,704 1,932,332 202,277 6,649,876 0 185,233 2,166 4,856,699 905,041 905,041 0 0 532,028 .313 .313