BKF Capital : and Subsidiaries

BKF Capital Group, Inc. and Subsidiaries

Annual Report for the Year Ended December 31, 2021

BKF Capital Group, Inc.

1 Jenner, Suite 200

Irvine, CA 92618

Business

Overview

BKF Capital Group, Inc., ("we," "us," "our," "BKF" or the "Company") was incorporated in Delaware in 1954. The Company was formerly Baker, Fentress & Company and operated as a non-diversified, closed-end management investment company under the Investment Company Act of 1940. Pursuant to a Plan for Distribution of Assets adopted in 1999, BKF sold substantially all of its investment securities and distributed the cash proceeds, along with shares of its largest investment, to its stockholders. These distributions were completed in January 2000. In

April 2000, BKF received a deregistration order from the Securities and Exchange Commission ("SEC"), which completed BKF's transformation from an investment company to an operating company.

The Company's consolidated financial statements include BKF and its wholly owned subsidiaries BKF Asset Holdings, Inc. ("BAH") and Bronson Financial LLC ("BF"). The consolidated financial statements previously included BKF's wholly owned subsidiary BKF Investment Group, Inc., formerly known as BKF Management Co., Inc. ("BIG"), BIG's wholly owned subsidiary BKF Asset Management, Inc. ("BAM"), and BAM's wholly owned subsidiary BKF GP, Inc. ("BGP"). In November 2019, BAM was dissolved into BIG, and BIG was subsequently dissolved into BKF. In November 2021, BGP was dissolved. As a result, the corporate structure currently includes BKF and its wholly owned subsidiaries BAH and BF.

BKF Asset Holdings, Inc. makes controlling principal investments (or effective control) in publicly and privately owned businesses. Bronson Financial LLC is an investment banking firm focusing on capital raising and mergers and acquisitions advisory services to lower- and middle-market companies, which obtained approval by Financial Industry Regulatory Authority, Inc. ("FINRA") in June 2021 to operate as a registered broker-dealer.

The Company previously operated in the investment advisory and asset management business entirely through BAM, which was a registered investment advisor with the 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 in 2006 and ceased operating in the investment advisory and asset management business. LEVCO Securities, Inc. ("LEVCO"), a former subsidiary of BAM that was dissolved in 2012, was a broker-dealer registered with the SEC and a member of the National Association of Securities Dealers, Inc. (now known as FINRA). LEVCO withdrew its registration as a broker-dealer in 2006 and ceased operating as a broker-dealer. BGP previously acted as the managing general partner of an affiliated investment partnership which is in the process of being liquidated and dissolved.

Our principal executive office is located at 1 Jenner, Suite 200, Irvine, CA 92618, and the telephone number is [phone]. Our website address iswww.bkfcapital.com.

Strategy

BKF Capital Group, Inc. is a publicly traded holding company operating through its wholly owned subsidiaries, BKF Asset Holdings, Inc., which makes controlling principal investments (or effective control) in publicly and privately owned businesses, and Bronson Financial LLC, a FINRA registered broker-dealer which provides investment banking services (consisting of M&A advisory and capital raising services) to lower- and middle-market companies.

BKF Asset Holdings, Inc. currently has investments in Interlink Electronics, Inc. (NASDAQ: LINK), a global leader in human-machine interface and sensor technologies, Qualstar Corporation (OTCMKTS: QBAK), a leading manufacturer of data storage solutions and high-efficiency power supplies, and MyTabolite, Inc., a developer of a next generation mobile health application that utilizes an individual's blood test in conjunction with proprietary algorithms to guide a healthier lifestyle.

Market Information

The Company's common stock is quoted on the OTCPink marketplace of the OTC Markets Group under the symbol "BKFG".

Holders of Record

All of our common stock is not registered in the name of beneficial owners, but rather in the name of "Cede & Co.," the name used by The Depository Trust Company. As of December 31, 2021, the Company believes it has less than ten actual shareholders of record of its common stock.

Dividend Policy

We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future, if at all. Any future determination to declare cash dividends will be made at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements, general business conditions and other factors that our board of directors may deem relevant.

Other Information

The Company's securities were registered under Section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act"). In May 2015, we filed Form 15-12g to terminate the registration and reporting obligations under Section 12(g) of the Exchange Act. Since May 2015, we make available our annual financial statements, quarterly financial statements, and other significant reports and amendments to such reports, free of charge, on our website as soon as reasonably practicable after such reports are prepared. Our website address iswww.bkfcapital.com.

Officers and Directors

The following table sets forth the name, age and position of each of our directors, executive officers and significant employees as of March 28, 2022. Each director will hold office until the next annual meeting of our stockholders or until his or her successor has been elected and qualified. Our executive officers are appointed by, and serve at the discretion of, the board of directors.

Name	Age	Position
Steven N. Bronson	56	Chairman, Chief Executive Officer and President
Leonard A. Hagan	70	Director
Ryan J. Hoffman	43	Chief Financial Officer

Steven N. Bronson. Mr. Bronson has over 35 years of business and entrepreneurial experience. His successful background in investment banking and principal investing has led to him taking executive positions in several companies. Mr. Bronson became the Chief Executive Officer and Chairman of the Board of Directors of Interlink Electronics, Inc. (NASDAQ: LINK) in 2010, and added the role of President in 2011. Interlink Electronics, Inc. is a global trusted advisor and technology partner in the advancing world of human-machine interface and sensor technologies.

In 2013, Mr. Bronson assumed the positions of President and Chief Executive Officer of Qualstar Corporation (OTCMKTS: QBAK), a high-quality tape library manufacturer, and its subsidiary N2Power, Inc., a manufacturer of high efficiency power supplies for diverse electronics industries. Since 2008, Mr. Bronson also has served as Chief Executive Officer and Chairman of the Board of Directors of Ridgefield Acquisition Corp. (OTCMKTS: RDGA). Mr. Bronson is a registered principal and chief compliance officer of Bronson Financial LLC and currently holds SIE, Series 4, Series 7, Series 24, Series 27, Series 53, Series 55, and Series 79 licenses.

Leonard A. Hagan. Mr. Hagan is a founding partner at Hagan & Burns CPA's P.C. ("Hagan & Burns") where he provides financial and regulatory services to the broker-dealer community as well as tax preparation services to the firm's clients. Prior to founding Hagan & Burns in 1995, Mr. Hagan worked for six years at the accounting firm of S.D. Leidesdorf & Co. where he was a manager, which was then merged into Ernst & Whinney. Following his time at S.D. Leidesdorf & Co. and Ernst & Whinney, Mr. Hagan spent three years at Credit Suisse until he founded his own accounting firm. Mr. Hagan has over forty-five years' experience as a certified public accountant and over twenty-five years as a licensed Financial and Operations Principal ("FinOp"). Mr. Hagan is a director of RidgefieldAcquisition Corp. (OTCMKTS: RDGA), which is a publicly traded company. Mr. Hagan earned a Bachelor of Arts degree in Economics from Ithaca College and continued his education at Cornell University where he received his MBA in accounting and finance. The Board has concluded that Mr. Hagan should serve on our Board based on his financial expertise and his experience of being a certified public accountant.

Ryan J. Hoffman. Mr. Hoffman has served as our Chief Financial Officer since 2020, joining BKF with more than two decades of auditing and professional services experience accrued at two top global accounting firms. He previously spent 16 years at the accounting firm RSM and was a partner at the firm for his last five years. There, he successfully led audits of global companies in industries that include technology, consumer products, and manufacturing. While there, he cultivated a specialization in software and multiple-element revenue recognition accounting and auditing. Prior to that, he worked for the Big Four accounting firm Ernst & Young. Mr. Hoffman graduated with a degree in accounting from Chapman University and is a licensed CPA. He is also the CFO of Interlink Electronics, Inc. (NASDAQ: LINK) and Qualstar Corporation (OTCMKTS: QBAK). Mr. Hoffman is a registered principal (FinOP) and chief financial officer of Bronson Financial LLC and currently holds SIE, Series 7, Series 24, Series 27, Series 63, and Series 79 licenses.

INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS ................................................................................................................. 6

CONSOLIDATED STATEMENTS OF OPERATIONS .......................................................................................... 7

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY ......................................... 8

CONSOLIDATED STATEMENTS OF CASH FLOWS ......................................................................................... 9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ....................................................................... 10-24