14. PERMANENT EQUITY

Stockholders’ Equity

Common Equity: The following table reflects the activity for the six months ended June 30, 2013 related to the number of shares of unrestricted common stock that the Company had issued as of June 30, 2013:


			Common Stock
			Shares
December 31, 2012			10,794,725
Shares issued in connection with the redemption of Operating LLC units			186,339
Vesting of shares			556,736
Shares withheld for employee taxes			(14,438)
June 30, 2013			11,523,362

In connection with the acquisition of JVB Holdings in January 2011, the Company issued 559,020 restricted units of the Operating LLC to certain of the former owners of JVB Holdings who remained employees of JVB Holdings. As of December 31, 2012, there were 372,681 restricted units outstanding. These units vest over a three year period (of which two of the three years have elapsed) and are treated as compensation for future service. In January 2013, 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 Holdings sellers in exchange for these vested membership units. As of June 30, 2013, there were 186,342 restricted units outstanding.

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, 2013, IFMI received units of the Operating LLC. The following table displays the amount of units received (net of surrenders) by IFMI 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 Holdings for IFMI common stock as discussed above.


			Operating LLC
			Membership Units
Units related to UIS Agreement			376,564
Units received from certain former owners of JVB Holdings			186,339
Total			562,903

The Company recognized a net increase in additional paid in capital of $634 and a net decrease in accumulated other comprehensive income of $25 with an offsetting decrease in non-controlling interest of $609 in connection with the acquisition and surrender of additional units of the 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 for the six months ended:



	June 30, 2013		June 30, 2012
Net income / (loss) attributable to IFMI	$	(9,202)	$	(5,937)
Transfers (to) from the non-controlling interest:
Increase / (decrease) in IFMI's paid in capital for the
acquisition / (surrender) of additional units in consolidated
subsidiary, net		634		828
Changes from net income / (loss) attributable to IFMI and transfers (to) from the non-controlling interest:	$	(8,568)	$	(5,109)