The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated balance sheet as of March 31, 2013 (in thousands) (unaudited):



				Restatement Adjustments
	As Previously Reported			RSO		Eliminations			As Restated
ASSETS
Cash	$	15,372		$	—	$	—		$	15,372
Restricted cash	544			—		—			544
Receivables	403			—		—			403
Receivables from managed entities and related parties, net	32,328			—		(2,399		)	29,929
Investments in real estate, net	17,103			—		—			17,103
Investment securities, at fair value	28,207			—		(18,386		)	9,821
Investments in unconsolidated loan manager	37,803			—		—			37,803
Investments in unconsolidated entities	13,395			—		—			13,395
Assets of consolidated VIE - RSO:
Cash and cash equivalents (including restricted cash)	—			179,792		—			179,792
Investments, at fair value	—			275,174		—			275,174
Loans	—			1,734,550		(1,570		)	1,732,980
Investments in real estate and unconsolidated entities	—			123,561		(108		)	123,453
Other assets	—			55,486		(32		)	55,454
Total assets of consolidated VIE - RSO	—			2,368,563		(1,694		)	2,366,853
Property and equipment, net	2,446			—		—			2,446
Deferred tax assets, net	35,359			—		(6,817		)	28,542
Other assets	6,567			—		—			6,567
Total assets	$	189,527		$	2,368,563	$	(29,312	)	$	2,528,778

LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	18,651		$	—	$	(1	)	$	18,650
Payables to managed entities and related parties	3,160			—		(120		)	3,040
Borrowings	22,316			—		(1,570		)	20,746
Liabilities of consolidated VIE - RSO:
Borrowings	—			1,649,840		—			1,649,840
Other liabilities	—			60,975		(2,311		)	58,664
Total liabilities of consolidated VIE - RSO	—			1,710,815		(2,311		)	1,708,504
Total liabilities	44,127			1,710,815		(4,002		)	1,750,940

Commitments and contingencies

Equity:
Preferred stock	—			—		—			—
Common stock	296			—		—			296
Additional paid-in capital	286,340			—		—			286,340
Accumulated deficit	(26,983		)	—		(2,597		)	(29,580		)
Treasury stock, at cost	(103,446		)	—		—			(103,446		)
Accumulated other comprehensive (loss) income	(11,044		)	—		8,719			(2,325		)
Total stockholders’ equity	145,163			—		6,122			151,285
Noncontrolling interests	237			—		—			237
Noncontrolling interests attributable to RSO	—			657,748		(31,432		)	626,316
Total equity	145,400			657,748		(25,310		)	777,838
	$	189,527		$	2,368,563	$	(29,312	)	$	2,528,778

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of operations for the three months ended March 31, 2013 (in thousands) (unaudited):



				Restatement Adjustments
	As Previously Reported			RSO			Eliminations			As Restated
REVENUES:
Real estate	$	11,340		$	—		$	—		$	11,340
Financial fund management	4,287			—			—			4,287
Commercial finance	(178		)	—			—			(178		)
Revenues from consolidated VIE - RSO	—			30,578			—			30,578
Elimination of consolidated revenues attributed to operating segments	—			—			(2,700		)	(2,700		)
Total revenues	15,449			30,578			(2,700		)	43,327
COSTS AND EXPENSES:
Real estate	9,440			—			—			9,440
Financial fund management	2,528			—			—			2,528
Commercial finance	45			—			—			45
General and administrative	2,157			—			(4		)	2,153
Provision for credit losses	338			—			—			338
Depreciation and amortization	416			—			—			416
Expenses from consolidated VIE - RSO	—			17,950			(1,762		)	16,188
Elimination of consolidated expenses attributed to operating segments	—			—			(2,654		)	(2,654		)
Total expenses	14,924			17,950			(4,420		)	28,454
OPERATING INCOME	525			12,628			1,720			14,873

OTHER INCOME (EXPENSE):
Other-than-temporary impairment on investments	(214		)	—			—			(214		)
Interest expense	(494		)	—			—			(494		)
Other income, net	740			—			(551		)	189
Elimination of consolidated VIE income attributed to operating segments	—			—			31			31
	32			—			(520		)	(488		)
Income from continuing operations before taxes	557			12,628			1,200			14,385
Income tax (benefit) provision	(146		)	—			1,762			1,616
Income from continuing operations	703			12,628			(562		)	12,769
Loss from discontinued operations, net of tax	(2		)	—			—			(2		)
Net income	701			12,628			(562		)	12,767
Net loss attributable to noncontrolling interests - RAI	43			—			—			43
Net income attributable to noncontrolling interests of consolidated VIE - RSO	—			(1,102		)	(11,212		)	(12,314		)
Net income attributable to common shareholders	$	744		$	11,526		$	(11,774	)	$	496





				Restatement Adjustments
	As Previously Reported			RSO	Eliminations	As Restated
Amounts attributable to common shareholders:
Income from continuing operations	$	746				$	498
Discontinued operations	(2		)			(2		)
Net income	$	744				$	496

Basic earnings per share:
Continuing operations	$	0.04				$	0.02
Discontinued operations	—					—
Net income	$	0.04				$	0.02
Weighted average shares outstanding	20,124					20,124

Diluted earnings per share:
Continuing operations	$	0.03				$	0.02
Discontinued operations	—					—
Net income	$	0.03				$	0.02
Weighted average shares outstanding	21,815					21,815



				Restatement Adjustments
	As Previously Reported			RSO		Eliminations			As Restated
REVENUES:
Real estate	$	9,716		$	—	$	—		$	9,716
Financial fund management	6,304			—		—			6,304
Commercial finance	(1,240		)	—		—			(1,240		)
Revenues from consolidated VIE - RSO	—			28,726		—			28,726
Elimination of consolidated revenues attributed to operating segments	—			—		(3,510		)	(3,510		)
Total revenues	14,780			28,726		(3,510		)	39,996
COSTS AND EXPENSES:
Real estate	7,407			—		—			7,407
Financial fund management	4,379			—		—			4,379
Commercial finance	230			—		—			230
General and administrative	2,467			—		—			2,467
Restructuring charges	365			—		—			365
Provision for credit losses	2,962			—		—			2,962
Depreciation and amortization	535			—		—			535
Expenses from consolidated VIE - RSO	—			14,245		(2,615		)	11,630
Elimination of consolidated expenses attributed to operating segments	—			—		(3,457		)	(3,457		)
Total expenses	18,345			14,245		(6,072		)	26,518
OPERATING (LOSS) INCOME	(3,565		)	14,481		2,562			13,478

OTHER INCOME (EXPENSE):
Other-than-temporary impairment on investments	(74		)	—		—			(74		)
Interest expense	(645		)	—		—			(645		)
Other income, net	630			—		(505		)	125
Elimination of consolidated VIE income attributed to operating segments	—			—		33			33
	(89		)	—		(472		)	(561		)
(Loss) income from continuing operations before taxes	(3,654		)	14,481		2,090			12,917
Income tax (benefit) provision	(1,323		)	—		2,615			1,292
Income (loss) from continuing operations	(2,331		)	14,481		(525		)	11,625
Loss from discontinued operations, net of tax	(16		)	—		—			(16		)
Net (loss) income	(2,347		)	14,481		(525		)	11,609
Net loss attributable to noncontrolling interests - RAI	39			—		—			39
Net income attributable to noncontrolling interests of consolidated VIE - RSO	—			—		(14,030		)	(14,030		)
Net (loss) income attributable to common shareholders	$	(2,308	)	$	14,481	$	(14,555	)	$	(2,382	)



				Restatement Adjustments
	As Previously Reported			RSO	Eliminations	As Restated
Amounts attributable to common shareholders:
Loss from continuing operations	$	(2,292	)			$	(2,366	)
Discontinued operations	(16		)			(16		)
Net loss	$	(2,308	)			$	(2,382	)

Basic earnings per share:
Continuing operations	$	(0.12	)			$	(0.12	)
Discontinued operations	—					—
Net loss	(0.12		)			(0.12		)
Weighted average shares outstanding	19,437					19,437

Diluted earnings per share:
Continuing operations	$	(0.12	)			$	(0.12	)
Discontinued operations	—					—
Net loss	(0.12		)			(0.12		)
Weighted average shares outstanding	19,437					19,437

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of comprehensive income for the three months ended March 31, 2013 (in thousands) (unaudited):



			Restatement Adjustments
	As Previously Reported		RSO			Eliminations			As Restated
Net income	$	701	$	12,628		$	(562	)	$	12,767

Other comprehensive (loss) income:
Unrealized gains (losses) on investment securities available-for-sale	2,148		—			(2,499		)	(351		)
Reclassification adjustment for losses realized, net of tax	131		—			—			131
	2,279		—			(2,499		)	(220		)
Reclassification adjustment for minimum pension liability losses realized, net of tax	89		—			(2		)	87
Unrealized gains on hedging contracts, net of tax	4		—			1			5
Subtotal - activity related to RAI	2,372		—			(2,500		)	(128		)

Activity related to consolidated VIE - RSO:
Reclassifications adjustment for losses included in net income	—		55			—			55
Unrealized gains on available-for-sale securities, net	—		4,541			—			4,541
Reclassification adjustments associated with unrealized gains from interest rate hedges included in net income	—		(627		)	—			(627		)
Unrealized gains on derivatives, net	—		1,334			—			1,334
Subtotal activity related to consolidated VIE - RSO	—		5,303			—			5,303
Subtotal - other comprehensive income	2,372		5,303			(2,500		)	5,175
Comprehensive income	3,073		17,931			(3,062		)	17,942
Comprehensive loss (income) attributable to noncontrolling interests	43		209			(17,826		)	(17,574		)
Comprehensive income attributable to common shareholders	$	3,116	$	18,140		$	(20,888	)	$	368



				Restatement Adjustments
	As Previously Reported			RSO			Eliminations			As Restated
Net (loss) income	$	(2,347	)	$	14,481		$	(525	)	$	11,609

Other comprehensive (loss) income:
Unrealized losses on investment securities available-for-sale	(450		)	—			341			(109		)
Reclassification adjustment for losses realized, net of tax	46			—			—			46
	(404		)	—			341			(63		)
Reclassification adjustment for minimum pension liability losses realized, net of tax	47			—			—			47
Unrealized gains on hedging contracts, net of tax	101			—			—			101
Subtotal - activity related to RAI	(256		)	—			341			85

Activity related to consolidated VIE - RSO:
Reclassifications adjustment for losses included in net income	—			12			—			12
Unrealized gains on available-for-sale securities, net	—			10,587			—			10,587
Reclassification adjustments associated with unrealized losses from interest rate hedges included in net income	—			56			—			56
Unrealized losses on derivatives, net	—			(93		)	—			(93		)
Subtotal - activity related to consolidated VIE - RSO	—			10,562			—			10,562
Subtotal - other comprehensive (loss) income	(256		)	10,562			341			10,647

Comprehensive (loss) income	(2,603		)	25,043			(184		)	22,256
Comprehensive income (loss) attributable to noncontrolling interests	39			—			(24,592		)	(24,553		)
Comprehensive (loss) income attributable to common shareholders	$	(2,564	)	$	25,043		$	(24,776	)	$	(2,297	)

The following table presents the consolidated statement of cash flows as originally presented in the March 31, 2013 10-Q for the six months ended March 31, 2013, less the activity for the three months ended December 31, 2012, in order to derive the activity for the three months ended March 31, 2013 as shown in the column labeled "RAI" in the consolidating statement of cash flows that follows the table below (in thousands) (unaudited):



	For the Six Months Ended March 31, 2013			For the Three Months Ended December 31, 2012					For the Three Months Ended March 31, 2013
	As originally filed			As originally filed			Reclassifications		As presented
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(159	)	$	(860	)	$	—	$	701
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,006			550			—		456
Other-than-temporary impairment on investment securities	214			—			—		214
Provision for credit losses	5,490			5,152			—		338
Unrealized gain on trading securities	(909		)	(164		)	—		(745		)
Equity in earnings of unconsolidated entities	(2,462		)	(1,201		)	—		(1,261		)
Distributions from unconsolidated entities	1,727			1,011			—		716
Gain on sale of assets	(2,437		)	(831		)	—		(1,606		)
Gain on sale of loans and investment securities, net	(824		)	(307		)	—		(517		)
Deferred income tax benefit	(387		)	(241		)	—		(146		)
Equity-based compensation issued	498			205			—		293
Equity-based compensation received	(860		)	(206		)	—		(654		)
Trading securities purchases and sales, net	1,003			(1,828		)	—		2,831
Loss from discontinued operations	8			6			—		2
Changes in operating assets and liabilities	(501		)	(4,666		)	—		4,165
Net cash provided by (used in) operating activities	1,407			(3,380		)	—		4,787

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(251		)	(80		)	—		(171		)
Payments received on real estate loans and real estate	2,761			712			—		2,049
Investments in unconsolidated real estate entities	(1,521		)	(1,012		)	—		(509		)
Principal payments received (paid) on leases and loans	—			3			—		(3		)
Purchase of loans and investments	(2,849		)	(1,323		)	—		(1,526		)
Net cash used in investing activities	(1,860		)	(1,700		)	—		(160		)




	For the Six Months Ended March 31, 2013			For the Three Months Ended December 31, 2012					For the Three Months Ended March 31, 2013
	As originally filed			As originally filed			Reclassifications		As presented
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	2,000			—			—		2,000
Principal payments on borrowings	(2,340		)	(229		)	—		(2,111		)
Dividends paid	(1,182		)	(593		)	—		(589		)
Repurchase of common stock	(1,132		)	(1,078		)	—		(54		)
Increase in restricted cash	98			3			—		95
Other financing activities	(150		)	(150		)	—		—
Net cash used in financing activities	(2,706		)	(2,047		)	—		(659		)

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(862		)	(367		)	—		(495		)
Net cash used in discontinued operations	(862		)	(367		)	—		(495		)

(Decrease) increase in cash	(4,021		)	(7,494		)	—		3,473
Cash, beginning of period	19,393			19,393			—		11,899
Cash, end of period	$	15,372		$	11,899		$	—	$	15,372

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of cash flows for the three months ended March 31, 2013 (in thousands) (unaudited):



	RAI			RSO			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	701		$	12,628		$	(562	)	$	12,767
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	456			—			—			456
Other-than-temporary impairment charges	214			—			—			214
Provision for credit losses	338			—			—			338
Unrealized gain on trading securities	(745		)	—			—			(745		)
Equity in earnings of unconsolidated entities	(1,261		)	—			—			(1,261		)
Distributions from unconsolidated entities	716			—			—			716
Gain on sale of assets	(1,606		)	—			—			(1,606		)
Gain on sale of loans and investment securities, net	(517		)	—			—			(517		)
Deferred income tax benefit	(146		)	—			—			(146		)
Equity-based compensation received	(654		)	—			654			—
Equity-based compensation issued	293			484			(484		)	293
Trading securities purchases and sales, net	2,831			—			—			2,831
Loss from discontinued operations	2			—			—			2
Changes in operating assets and liabilities	4,165			—			6			4,171
Change in cash attributable to consolidated VIE - RSO	—			27,803			(170		)	27,633
Net cash provided by operating activities	4,787			40,915			(556		)	45,146

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(171		)	—			—			(171		)
Payments received on real estate loans and real estate	2,049			—			—			2,049
Investments in unconsolidated real estate entities	(509		)	—			—			(509		)
Principal payments received on leases and loans	(3		)	—			—			(3		)
Purchase of loans and securities by consolidated VIE - RSO	—			(209,991		)	—			(209,991		)
Principal payments and proceeds from sales received by consolidated VIE - RSO	—			275,663			—			275,663
Purchase of loans and investments	(1,526		)	—			—			(1,526		)
Decrease in restricted cash - consolidated VIE RSO	—			(19,241		)	—			(19,241		)
Other - consolidated VIE - RSO	—			(4,499		)	—			(4,499		)
Net cash (used in) provided by investing activities	(160		)	41,932			—			41,772

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	2,000			—			—			2,000
Principal payments on borrowings	(2,111		)	—			—			(2,111		)
Net repayments of debt by consolidated VIE - RSO	—			(104,196		)	—			(104,196		)
Dividends paid	(589		)	—			—			(589		)
Dividends paid on common stock by consolidated VIE - RSO	—			(20,978		)	556			(20,422		)
Net proceeds from issuance of common stock by consolidated VIE - RSO	—			44,862			—			44,862
Repurchase of common stock	(54		)	—			—			(54		)
Increase in restricted cash	95			—			—			95
Other - consolidated VIE - RSO	—			(2,535		)	—			(2,535		)
Net cash used in financing activities	(659		)	(82,847		)	556			(82,950		)

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(495		)	—			—			(495		)
Net cash used in discontinued operations	(495		)	—			—			(495		)

Increase in cash	3,473			—			—			3,473
Cash, beginning of year	11,899			—			—			11,899
Cash, end of period	$	15,372		$	—		$	—		$	15,372

The following table present the consolidating statement of cash flows as originally presented in the March 31, 2012 10-Q for the six months ended March 31, 2012, less the activity for the three months ended December 31, 2012, in order to derive the activity for the three months ended March 31, 2012 as shown in the column labeled "RAI" in the consolidating statement of cash flows that follows the table below (in thousands) (unaudited):



	For the Six Months Ended March 31, 2012			For the Three Months Ended December 31, 2011						For the Three Months Ended March 31, 2012
	As originally filed			As originally filed			Reclassifications			As presented
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(1,784	)	$	563		$	—		$	(2,347	)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	3,693			3,087			—			606
Other-than-temporary impairment on investment securities	74			—			—			74
Provision for credit losses	5,212			2,250			—			2,962
Equity in (earnings) losses of unconsolidated entities	(228		)	(557		)	—			329
Distributions from unconsolidated entities	2,021			1,163			—			858
Loss on extinguishment of debt	2,190			2,190			—			—
Gain on sale of loans and investment securities, net	(63		)	(58		)	—			(5		)
Gain on sale of leases and loans	(37		)	(37		)	—			—
Gain on sale and deconsolidation of subsidiaries	(8,749		)	(8,749		)	—			—
Deferred income tax (benefit) provision	(1,169		)	154			—			(1,323		)
Equity-based compensation issued	817			498			—			319
Equity-based compensation received	(164		)	—			—			(164		)
Loss from discontinued operations	36			—			(20		)	16
Changes in operating assets and liabilities	(4,296		)	(1,412		)	20			(2,864		)
Net cash used in operating activities	(2,447		)	(908		)	—			(1,539		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(95		)	(106		)	—			11
Payments received on real estate loans and real estate	1,550			1,550			—			—
Investments in unconsolidated real estate entities	(503		)	(127		)	—			(376		)
Purchase of commercial finance assets	(18,483		)	(18,483		)	—			—
Principal payments received on leases and loans	9,037			9,031			—			6
Cash divested on deconsolidation of LEAF	(2,284		)	(2,284		)	—			—
Purchase of loans and investments	(736		)	(600		)	—			(136		)
Proceeds from sale of loans and investment securities	277			207			—			70
Net cash used in investing activities	(11,237		)	(10,812		)	—			(425		)





	For the Six Months Ended March 31, 2012			For the Three Months Ended December 31, 2011						For the Three Months Ended March 31, 2012
	As originally filed			As originally filed			Reclassifications			As presented
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	128,845			128,845			—			—
Principal payments on borrowings	(123,924		)	(123,823		)	—			(101		)
Preferred stock dividends paid by LEAF to RSO	(188		)	(188		)	—			—
Dividends paid	(1,135		)	(569		)	—			(566		)
Repurchase of common stock	(955		)	(939		)	—			(16		)
Decrease in restricted cash	(652		)	(633		)	19			—
Other financing activities	(2,275		)	(2,250		)	(19		)	(44		)
Net cash (used in) provided by financing activities	(284		)	443			—			(727		)

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(569		)	(375		)	—			(194		)
Net cash used in discontinued operations	(569		)	(375		)	—			(194		)

Decrease in cash	(14,537		)	(11,652		)	—			(2,885		)
Cash, beginning of period	24,455			24,455			—			12,803
Cash, end of period	$	9,918		$	12,803		$	—		$	9,918

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of cash flows for the three months ended March 31, 2012 (in thousands) (unaudited):



	RAI			RSO			Eliminations			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(2,347	)	$	14,481		$	(525	)	$	11,609
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	606			—			—			606
Other-than-temporary impairment on investments	74			—			—			74
Provision for credit losses	2,962			—			—			2,962
Equity in earnings of unconsolidated entities	329			—			—			329
Distributions from unconsolidated entities	858			—			—			858
Gain on sale of loans and investment securities, net	(5		)	—			—			(5		)
Deferred income tax benefit	(1,323		)	—			—			(1,323		)
Equity-based compensation issued	319			165			(165		)	319
Equity-based compensation received	(164		)				164			—
Loss from discontinued operations	16			—			—			16
Changes in operating assets and liabilities	(2,864		)	—			—			(2,864		)
Change in cash attributable to operations of consolidated VIE - RSO	—			(14,110		)	1			(14,109		)
Net cash (used in) provided by operating activities	(1,539		)	536			(525		)	(1,528		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	11			—			—			11
Investments in unconsolidated real estate entities	(376		)	—			—			(376		)
Principal payments received on leases and loans	6			—			—			6
Purchase of loans and securities by consolidated VIE - RSO	—			(167,505		)	—			(167,505		)
Principal payments and proceeds from sales received by consolidated VIE - RSO	—			162,632			—			162,632
Purchase of loans and investments	(136		)	—			—			(136		)
Proceeds from sale of loans and investment securities	70			—			—			70
Increase in restricted cash - consolidated VIE RSO	—			9,196			—			9,196
Other - consolidated VIE - RSO	—			1,081			20			1,101
Net cash (used in) provided by investing activities	(425		)	5,404			20			4,999

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on borrowings	(101		)	—			—			(101		)
Net repayments of debt by consolidated VIE - RSO	—			(9,537		)	—			(9,537		)
Dividends paid	(566		)	—			—			(566		)
Dividends paid on common stock by consolidated VIE - RSO	—			(19,979		)	505			(19,474		)
Net proceeds from issuance of common stock by consolidated VIE - RSO	—			24,158			—			24,158
Repurchase of common stock	(16		)	—			—			(16		)
Other financing activities	(44		)	—			—			(44		)
Other financing activities of consolidated VIE - RSO	—			(582		)	—			(582		)
Net cash used in financing activities	(727		)	(5,940		)	505			(6,162		)

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(194		)	—			—			(194		)
Net cash used in discontinued operations	(194		)	—			—			(194		)

Decrease in cash	(2,885		)	—			—			(2,885		)
Cash, beginning of year	12,803			—			—			12,803
Cash, end of period	$	9,918		$	—		$	—		$	9,918