10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2012.

or

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT.

For the transition period from          to          

Commission file number: 1-10024

BKF Capital Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware	36-0767530
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

225 N.E. Mizner Boulevard, Suite 400 Boca Raton, Florida 33432

(Address of Principal Executive Office) (Zip Code)

(561) 362-4199

(Registrant's telephone number including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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.

x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

x Yes ¨ No

As of November 13, 2012, 7,446,593 shares of the registrant's common stock, $1.00 par value, were outstanding.

TABLE OF CONTENTS

Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Statements of Financial Condition as of  September 30, 2012 (unaudited) and December 31, 2011 (audited)	3
	Consolidated Statements of Operations and Comprehensive Income (three-months and nine-months ended September 30, 2012 and 2011)	4
	Consolidated Statements of Cash Flows (nine-months ended  September 30, 2012 and 2011)	5
	Notes to Condensed Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
Item 4.	Controls and Procedures	13
Part II.	Other Information	13
Item 1.	Legal Proceedings	13
Item 5.	Other Information	13
Item 6.	Exhibits	14
Signatures		14

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

BKF CAPITAL GROUP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar amounts in thousands)

	September 30,			December 31,
	2012			2011
	(unaudited)
Assets
Cash and cash equivalents	$	6,756		$	8,292
Investments		3,270			3,337
Prepaid expenses and other assets		34			77
Total assets	$	10,060		$	11,706
Liabilities and Stockholders' Equity
Accrued expenses	$	70		$	41
Total liabilities		70			41
Commitments and contingencies
Stockholders' equity
Common stock, $1 par value, authorized — 15,000,000 shares, 7,446,593 issued and outstanding as of September 30, 2012 and December 31, 2011		7,447			7,447
Additional paid-in capital		68,269			68,269
Accumulated deficit		(65,248	)		(64,570	)
Accumulated other comprehensive income/(loss)		(478	)		519
Total stockholders' equity		9,990			11,665
Total liabilities and stockholders' equity	$	10,060		$	11,706

See accompanying notes

3

BKF CAPITAL GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Operating income:
Royalties	$	—		$	—		$	—		$	—
Non Operating Income
Interest income		4			6			14			20
Other income		7			16			30			46
Total revenues		11			22			44			66
Expenses:
Employee compensation and benefits		68			71			212			202
Occupancy and equipment rental		16			16			48			48
Other operating expenses		39			8			462			78
Total expenses		123			95			722			328
Net income/(loss)		(112	)		(73	)		(678	)		(262	)
Other comprehensive income, net of tax
Unrealized gain (loss) on investments		(985	)		186			(997	)		375
Other comprehensive income/(loss)	$	(1,097	)	$	113		$	(1,675	)	$	113
Net income/(loss) per share:
Basic and Diluted	$	(0.02	)	$	(0.01	)	$	(0.09	)	$	0.04
Weighted average common shares outstanding		7,446,593			7,446,593			7,446,593			7,446,593

See accompanying notes

4

BKF CAPITAL GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2012			2011
Cash flows from operating activities
Net income (loss)	$	(678	)	$	(262	)
Changes in operating assets and liabilities:
Decrease in advisory trailer fees and other receivable		—			15
Decrease in prepaid expenses and other assets		42			246
Increase (decrease) in accrued expenses		29			(57	)
Decrease in accrued lease liability expense		—			(1,139	)
Net cash used in operating activities		(607	)		(1,197	)
Cash flows from investing activities
Purchase of investment securities		(929	)		(267	)
Net cash used in investing activities		(928	)		(267	)
Net decrease in cash and cash equivalents		(1,536	)		(1,464	)
Cash and cash equivalents at the beginning of the period		8,292			9,744
Cash and cash equivalents at the end of the period	$	6,756		$	8,280
Supplemental disclosure of cash flow information
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—

See accompanying notes

5

BKF CAPITAL GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The unaudited condensed consolidated financial statements included herein were prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's Form 10-K for the year ended December 31, 2011.

In the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year.

1. Organization and Summary of Significant Accounting Policies

Organization and Basis of Presentation

BKF Capital Group, Inc. (the "Company") operates through a wholly-owned subsidiary, BKF Management Co., Inc. and its subsidiaries, all of which are referred to as "BKF." The Company trades on the over the counter market under the symbol ("BKFG"). Currently, the Company is seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues and increase shareholder value.

The consolidated financial statements of BKF include its wholly-owned subsidiaries BKF Asset Management, Inc., ("BAM"), BAM's two wholly-owned subsidiaries, BKF GP Inc. ("BKF GP") and LEVCO Securities, Inc. ("LEVCO Securities"). All inter-company accounts have been eliminated. All adjustments necessary for a fair statement of results for the interim period have been made and all such adjustments were of a normal recurring nature.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

6

BKF CAPITAL GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Cash and Cash Equivalents

Investments in money market funds are valued at net asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit risk related to the money market funds and the market rate inherent in the money market funds.

OTHER COMPREHENSIVE INCOME

The Company presents other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid in capital in the equity section of a statement of position. The Company reports its unrealized gains and losses on investments in securities as other comprehensive income (loss) in its financial statements.

Fair Values of Financial Instruments

Financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried in the consolidated financial statements at amounts that approximate fair value at September 30, 2012 and December 31, 2011. Fair values are based on market prices and assumptions concerning the amount and timing of estimated future cash flows. Investments have been valued using level 1 inputs under ASC Topic 820, Fair Value Measurements and Disclosures.

2. Investments

Investments are classified as available-for-sale according to the provisions of ASC Topic 320, Investments - Debt & Equity Securities. Accordingly, the investments are carried at fair value with unrealized gains and losses reported separately in other comprehensive income.

At September 30, 2012 the Company held 2,239,419 common shares of Qualstar Corporation valued at approximately $3,270,000.

3. Concentrations

On October 3, 2008, the Emergency Economic Stabilization Act of 2008 increased the insurance coverage offered by the Federal Deposit Insurance Corporation (FDIC) from $100,000 to $250,000 per depositor. This limit is anticipated to return to $100,000 after December 31, 2013. Additionally, under the FDIC's Temporary Liquidity Guarantee Program, amounts held in non-interest bearing transaction accounts at participating institutions are fully guaranteed by the FDIC through December 31, 2013. The Company had amounts in excess of $250,000 in a single bank during the year. Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation. These balances fluctuate during the year and can exceed this $250,000 limit.

7

BKF CAPITAL GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

4. Commitments and Contingencies

The Company could be subject to a variety of claims, suits and proceedings that arise from time to time, including actions with respect to contracts, regulatory compliance and public disclosure. These actions may be commenced by a number of different constituents, including vendors, former employees, regulatory agencies, and stockholders. The following is a discussion of the more significant matters involving the Company.

The Company is a defendant in a lawsuit for claims for alleged services in the amount of approximately $171,000. The complaint was filed in the New York State Supreme Court and alleges a claim for breach of contract against BAM for alleged goods and services delivered to BAM. The Company is vigorously defending this action. The Company has no specific reserve for this action.

5. Warrants

On March 1, 2011, the Company granted warrants to purchase 200,000 shares of the Company’s common stock, $1.00 par value to an executive of the company in exchange for certain services to be rendered. The warrants are exercisable for a period of 5 years, but they shall expire and terminate ninety (90) days after the Executive’s separation from the Company for any reason. The warrants shall vest and be exercisable as follows: (i) 50,000 warrants exercisable at $1.55 per share shall vest upon the occurrence of BKF raising $5,000,000 through the sale of equity and completion of twelve months of employment; (ii) 50,000 warrants exercisable at $1.55 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $10,000,000 from the execution of this Agreement; (iii) 50,000 warrants exercisable at $2.00 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $15,000,000 from the execution of this Agreement; and (iv) 50,000 warrants exercisable at $2.00 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $20,000,000 from the execution of this Agreement. The executive to whom these warrants relate resigned as of April 25, 2012 and the warrants expired. At September 30, 2012, the Company had no warrants outstanding.

6. Restricted Stock Grant

On August 1, 2012, the Company rehired Maria Fregosi to serve as the Company’s Chief Operating Officer. In addition to an annual salary of 60,000 per annum, the Company also issued Ms. Fregosi 100,000 restricted shares, on August 1, 2012, of the Company’s common stock vesting a follows: (i) 25,000 on July 31, 2013, (ii) 25,000 on July 31, 2014, (iii) 25,000 on July 31, 2015, and (iv) 25,000 on July 31, 2016.

8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q contains certain statements that are not historical facts, including, most importantly, information concerning possible or assumed future results of operations of BKF Capital Group, Inc. (the "Company") and statements preceded by, followed by or that include the words "may," "believes," "expects," "anticipates," or the negation thereof, or similar expressions, which constitute "forward-looking statements" within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E (the "Reform Act") of the Securities Exchange Act of 1934 (the "Exchange Act"). For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are based on the Company's current expectations and are susceptible to a number of risks, uncertainties and other factors, including the risks specifically enumerated in Company's Annual Report on Form 10-K for the year ended December 31, 2011, and the Company's actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company will not undertake and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. In addition, it is the Company's policy generally not to make any specific projections as to future earnings, and the Company does not endorse any projections regarding future performance that may be made by third parties.

The following discussion and analysis provides information which the Company's management believes to be relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read together with the Company's financial statements and the notes to financial statements, which are included in this report, as well as the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

Background

BKF was incorporated in Delaware in 1954. The Company's securities trade on the over the counter market under the symbol "BKFG." During the third quarter of 2006, the Company ceased all operations, except for maintaining its status as an Exchange Act reporting company and winding down certain investment partnerships for which BKF acts as general partner. Currently, the Company is seeking to consummate an acquisition, merger or other business combination with an operating entity to enhance BKF's revenues and increase shareholder value.

The Company operates through its wholly-owned subsidiaries, BKF Investment Group, Inc., formerly known as BKF Management Co., Inc. ("BIG") and BKF Asset Holdings, Inc. (“BKF Holdings”) all of which are collectively referred to herein as the "Company" or "BKF." The consolidated financial statements of BKF, BIG and BIG's two wholly owned subsidiaries BKF Advisors, Inc. (“BKF Advisors”) and BKF Asset Management, Inc., ("BAM") and BAM's two wholly-owned subsidiaries, BKF GP, Inc. (“BKF GP”) and LEVCO Securities, Inc. ("LEVCO Securities"). There were no affiliated partnerships in BKF's December 31, 2011 consolidated financial statements.

Historically the Company operated in the investment advisory and asset management business entirely through BAM, which was a registered investment adviser with the Securities and Exchange Commission ("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 on December 19, 2006 and ceased operating in the investment advisory and asset management business. LEVCO Securities, a subsidiary of BAM, was a broker dealer registered with the SEC and a member of the National Association of Securities Dealers, Inc. (now known as the Financial Industry Regulatory Authority). LEVCO Securities withdrew its registration as a broker-dealer on November 30, 2006 and ceased operating as a broker dealer. BKF GP, Inc., the other subsidiary of BAM, acts as the managing general partner of several affiliated investment partnerships which have been in the process of being liquidated and dissolved since 2006.

9

Plan of Operations

On August 2, 2012, the Company issued a press release disclosing that the Company plans to create an asset management platform with investment vehicles that focus on areas of portfolio management that typically receive less attention from investors but also present unique investment opportunities. The Company is also engaged in seeking to arrange an acquisition, with an operating business with revenues, at least three years of operating history and unique value opportunities. The Press Release is attached as an exhibit to the Company’s Current Report on Form 8-K, dated August 3, 2012.

In September 2012, the Company changed the name of its subsidiary BKF Management Co., Inc. to BKF Investment Group, Inc. and formed a wholly owned subsidiary, BKF Advisors that is in the process of registering as an investment advisor with the State of Florida and the State of California. The Company expects that BKF Advisors will act as the investment advisor to the BKF Small Cap Growth and Income, L.P., a newly formed Delaware limited partnership that plans to engage as an investment fund (the “Partnership”). BAM is the general partner of the Partnership. The Company expects to seed the Partnership which expects to focus on small-cap and micro-cap companies with a value based approach to investing. Thereafter, the Company intends to grow its asset management business by acquiring or seeding other alternative investment funds with unique investment strategies and/or emerging portfolio managers. The Company’s goal is to grow revenues and income over time and achieve valuation multiples in line with other publicly-traded comparable companies. The Company expects to create value for its shareholders by rebuilding its asset management operations, and expects to earn fee income for assets under management, performance fees upon successfully liquidating investments and from its proprietary capital investments in the investment funds for which BKF acts as the general partner. Moreover, the Company has substantial net operating loss carry-forwards that it may be able to use to offset future profits and thereby minimize tax liabilities.

The Company is also seeking to arrange for a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity. The Company shall endeavor to utilize some or all of the Company's net operating loss carryforwards in connection with a business combination transaction; however, there can be no assurance that the Company will be able to utilize any of its net operating loss carryforwards. The Company has not identified a viable operating entity for a merger, acquisition, business combination or other arrangement, and there can be no assurance that the Company will ever successfully arrange for a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity.

The Company anticipates that the selection of a business opportunity will be a complex process and will involve a number of risks, because potentially available business opportunities may occur in many different industries and may be in various stages of development. Due in part to depressed economic conditions in a number of geographic areas and shortages of available capital, management believes that there are numerous firms seeking either the additional capital which the Company has or the benefits of a publicly traded corporation, or both. The perceived benefits of a publicly traded corporation may include facilitating or improving the terms upon which additional equity financing may be sought, providing liquidity for principal shareholders, creating a means for providing incentive stock options or similar benefits to key employees, providing liquidity for all shareholders and other factors.

In some cases, management of the Company will have the authority to effect acquisitions without submitting the proposal to the shareholders for their consideration. In some instances, however, the proposed participation in a business opportunity may be submitted to the shareholders for their consideration, either voluntarily by the Board of Directors to seek the shareholders' advice and consent, or because of a requirement of State law to do so.

10

In seeking to arrange a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity, the Company's objective will be to obtain long-term capital appreciation for the Company's shareholders. There can be no assurance that the Company will be able to complete any merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity.

The Company may need additional funds in order to effectuate a merger, acquisition or other arrangement by and between the Company and a viable operating entity, although there is no assurance that the Company will be able to obtain such additional funds, if needed. Even if the Company is able to obtain additional funds there is no assurance that the Company will be able to effectuate a merger, acquisition or other arrangement by and between the Company and a viable operating entity.

Qualstar Investment

On December 17, 2010, the Company purchased 1,500,000 shares of Qualstar Corporation ("Qualstar") common stock in a privately negotiated transaction at the price of $1.55 per share or the total aggregate amount of $2,325,000 (the “2010 Purchase”). Qualstar is a diversified electronics manufacturer specializing in data storage, power supplies and computer pointing devices. Qualstar's products are known throughout the world for high quality and Simply Reliable designs that provide years of trouble-free service. The securities of Qualstar are traded on NASDAQ under the symbol "QBAK." The registrant purchased the Qualstar shares from Richard A. Nelson and Kathleen R. Nelson as Co-Trustees of the Nelson Family Trust U/A DTD 01/19/2000. Richard A. Nelson is an officer and director of Qualstar. Following the 2010 Purchase, BKF owned approximately 12.2% of issued and outstanding shares of Qualstar. The Company previously disclosed its acquisition of shares of Qualstar in Current Report on Form 8-K filed on December 23, 2010. Between December 23, 2010 and September 30, 2012, BKF increased its Qualstar holdings from 12.2% to 18.2% through open market transactions.

On February 15, 2012 BKF sent a letter to the Qualstar board of director, which was attached as an exhibit to the Company’s Schedule 13D filing on February 21, 2012. In the February 15, 2012 letter, BKF suggested steps that the Qualsar board can and should take to maximize shareholder value. The Qualstar board did not discuss the Feburary 15, 2012 letter with BKF and it failed to take any of the requested actions. In or about May 2012, the BKF launched a proxy contest to remove and replace the board of directors of Qualstar. See BKF’s Definitive Proxy Statement on Schedule 14A, filed on June 6, 2012, which is incorporated herein by reference. The special meeting of the shareholders of Qualstar occurred on June 20, 2012. While BKF’s proposals did receive approval of the majority of the votes cast at the meeting, they did not receive approval from a majority of the outstanding shares, which was required to remove the incumbent Qualstar board.

At September 30, 2012 the Company held 2,239,419 common shares of Qualstar valued at approximately $3,270,000, representing approximately 18.2% of the issued and outstanding shares of Qualstar. The Company holds the shares of Qualstar for investment purposes and is currently considering its options. The Company is in the process of transferring its holdings of Qualstar into its wholly owned subsidiary BKF Asset Holdings, Inc.

11

RESULTS OF OPERATIONS

The following discussion and analysis of the results of operations is based on the Consolidated Statements of Financial Condition and Consolidated Statements of Operations for BKF Capital Group, Inc. and Subsidiaries.

Income

Total revenues for the three months ended September 30, 2012 was $ 11,000 compared to $22,000 in the same period in 2011, a decrease of $ 11,000. The decrease is primarily due to non operating other income. Total revenues for the nine months ended September 30, 2012 was $44,000 compared to $66,000 in the same period in 2011, a decrease of $22,000. The decrease is primarily due to non operating other income.

Expenses

Total expenses for the three months ended September 30, 2012 were approximately $123,000, reflecting an increase of 29% from $95,000 in expenses in the same period in 2011. The increase is primarily attributable to professional fees related to the proxy filings for Qualstar. Total expenses for the nine months ended September 30, 2012 were approximately $722,000, reflecting an increase of 120% from $328,000 in expenses in the same period in 2011. The increase is primarily attributable to professional fees related to the proxy filings for Qualstar.

Net Income/Net Loss

Net loss for the three months ended September 30, 2012 was $112,000, as compared to a net loss of $73,000 in the same period in 2011.

Net loss for the nine months ended September 30, 2012 was $678,000, as compared to a net loss of $262,000 in the same period in 2011.

LIQUIDITY AND CAPITAL RESOURCES

BKF's current assets as of September 30, 2012 consist primarily of cash and investments.

While BKF has historically met its cash and liquidity needs through cash generated by operating activities, cash flow from current activities may not be sufficient to fund operations in the future. BKF will use a portion of its existing working capital for such purposes.

At September 30, 2012, BKF had cash and cash equivalents of $6.8 million, compared to $8.3 million of cash and cash equivalents at December 31, 2011.

OFF BALANCE SHEET RISK

There has been no material change with respect to the off balance sheet risk incurred by the Company since September 30, 2012.

12

Item 4. Controls and Procedures

We maintain "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our principal executive officer to allow timely decisions regarding required disclosure.

Evaluation of disclosure and controls and procedures.

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer, of the effectiveness of the design and operation of the Company's Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on the evaluation, the Company's Principal Executive Officer has concluded that the Company's disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that the Company’s disclosure controls and procedures are operating in an effective manner to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.

Changes in internal controls over financial reporting.

There have been no changes in Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during Company's most recent quarter that has materially affected, or is reasonably likely to materially affect, Company's internal control over financial reporting.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there is only reasonable assurance that the Company's controls will succeed in achieving the stated goals under all potential future conditions.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is a defendant in a lawsuit for claims for alleged services in the amount of approximately $171,000. The complaint was filed in the New York State Supreme Court, New York County and is entitled: Thomson Financial, LLC v. BKF Asset Management, Inc. and assigned Index No. 601390/09. In the action Thomson Financial alleges a claim for breach of contract against BAM for alleged goods and services delivered to BAM. The Company is vigorously defending this action. The Company has not recorded a liability reserve because the Company does not believe it will be held liable in the action.

The Company's management is unaware of any other material existing or pending legal proceedings or claims against the Company.

Item 5. Other Information

On August 1, 2012, the Company rehired Maria Fregosi to serve as the Company’s Chief Operating Officer. Ms. Fregosi shall be paid an annual salary of $60,000 per annum and she shall be entitled to receive an annual salary of $60,000 per annum and she will be entitled to receive an annual bonus, determined in the sole discretion of the Company’s Board of Directors. Additionally, the Company issued Ms. Fregosi 100,000 restricted shares, on August 1, 2012, of the Company’s common stock vesting as follows: (1) 25,000 shares on July 31, 2013, (ii) 25,000 shares on July 31, 2014, (iii) 25,000 shares on July 31, 2015, and (iv) 25,000 shares on July 31, 2016. A copy of Ms. Fregosi’s employment agreement is attached hereto as Exhibit 10.42.

13

Item 6. Exhibits.

a. Exhibits

The following exhibits are hereby filed as part of this Quarterly Report on Form 10-Q or incorporated herein by reference.

Exhibit
Number	Description of Document
10.42*	Copy of Employment Agreement, between BKF Capital Group, Inc. and Maria Fregosi, dated August 1, 2012
31*	Section 302 Certification of Chief Executive Officer
32*	Section 906 Certification of Chief Executive Officer
101.INS*#	XBRL Instance Document 101.SCH*# XBRL Taxonomy Extension Schema
101.CAL*#	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*#	XBRL Taxonomy Extension Definition Linkbase
101.LAB*#	XBRL Taxonomy Extension Label Linkbase
101.PRE*#	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith.

# Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 14, 2012

BKF CAPITAL GROUP, INC.
By:	/s/ Steven N. Bronson
	Steven N. Bronson,
	Chief Executive Officer,
	as Registrant's duly authorized
	officer

14

EXHIBIT INDEX

Exhibit
Number	Description of Document
10.42*	Copy of Employment Agreement, between BKF Capital Group, Inc. and Maria Fregosi, dated August 1, 2012
31*	Section 302 Certification of Chief Executive Officer
32*	Section 906 Certification of Chief Executive Officer
101.INS*#	XBRL Instance Document 101.SCH*# XBRL Taxonomy Extension Schema
101.CAL*#	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*#	XBRL Taxonomy Extension Definition Linkbase
101.LAB*#	XBRL Taxonomy Extension Label Linkbase
101.PRE*#	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith.

# Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

15

EX-10.42

Exhibit 10.42

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”), dated as of August 1, 2012, is entered into between BKF Capital Group, Inc., a Delaware corporation, with offices located at 225 N.E. Mizner Boulevard, Boca Raton, Florida 33432 (“BKF Capital” or the “Company”) and Maria Fregosi, an individual, who resides at 541 N.E. Spanish Trial, Boca Raton, Florida 33432 (“Executive”). BKF Capital and Executive are each referred to herein as a “Party” and collectively, the “Parties”).

W I T N E S S E T H :

WHEREAS, BKF Capital desires to employ Executive, and Executive is willing to accept such employment on the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, BKF Capital and Executive agree as follows:

1.           Employment. BKF Capital hereby employs Executive as its Chief Operating Officer, reporting to Company’s Chief Executive Officer, Steven N. Bronson (the “CEO”) and the Board of Directors (the “Board”), subject to the conditions set forth in this Agreement.

2.           Duties. The Executive shall perform all reasonable duties incident to the positions of Chief Operating Officer as well as any other duties as may from time to time be assigned by the CEO and/or the Board, and agrees to abide by all policies, practices, procedures or rules of the Company, provided same are consistent with the scope and dignity of Executive’s position. The Executive agrees to devote her best efforts, energies and skill to the discharge of the duties and responsibilities attributable to her position, and to this end, she will devote a majority of her time and attention to the business and affairs of the Company, its subsidiaries and its affiliates. The Executive also agrees that she shall not take personal advantage of any business opportunities which arise during her employment and which may benefit the Company or its affiliates. All material facts regarding such opportunities must be promptly reported to the CEO and the Board for consideration by the Company or its affiliates. Notwithstanding the foregoing, the Executive may donate her time and efforts to charitable causes, educational and other similar activities, so long as such endeavors do not affect her ability to perform her duties under this Agreement. If requested by the Company, and provided Executive deems she has reasonable availability, the Executive shall serve on the board of directors of any affiliate of the Company or any committee thereof without additional compensation. Company shall have the right, but not the obligation, to use Executive’s name, photograph, likeness and approved biographical data for the purpose of advertising, marketing, promoting, publicizing and exploiting any matter related to the duties performed hereunder.

3.         Term. The term of this Agreement shall commence on August 1, 2012, and shall continue until terminated by either Party (the “Term”) (the “Term”). Executive understands and agrees that her employment with the Company is at will, which means that either the Executive or the Company may terminate this Agreement at any time, with or without cause, and with or without prior notice. Any modification of the “at will” nature of the employment must be in writing and executed by the Executive and by the Company, after approval by the Board.

4.          Compensation and Benefits.

4.1        Salary. Executive shall be paid an annual salary of $60,000.00 per year, payable on a bi-weekly basis, less all customary withholdings and deductions.

4.2        Restricted Stock Grant. Executive shall receive 100,000 shares of the Company’s restricted common stock, subject to the following vesting schedule: 25% of the shares shall vest on July 31, 2013, 25% of the shares shall vest on July 31, 2014, 25% of the shares shall vest on July 31, 2015 and the last 25% of the shares shall vest on July 31, 2016. In the event the Executive’s employment with the company is terminated for any reason prior to a vesting date, then all remaining shares of unvested restricted common stock shall be forfeited.

4.3        Bonus Compensation. The Executive shall also be entitled to receive and annual bonus determined solely at the discretions of the Board.

4.4        Vacation and Sick Leave. During the Term, the Executive shall be entitled to an aggregate of four (4) weeks of paid vacation, and five (5) days of paid sick leave, prorated for any portion of a year to the date of termination. The timing and duration of any vacation shall be subject to the prior written approval of the Company, in its discretion.

4.5         Executive Benefit Plans. At all times during the term of this Agreement the Executive shall be provided the opportunity to participate in all health, pension and welfare plans, life insurance, programs and benefits (the “Plans”) as approved by the Company’s Compensation Committee or the Board.

5.           Reimbursement of Business Expenses. During the term of this Agreement, upon submission of proper invoices, receipts or other supporting documentation satisfactory to BKF Capital and in specific accordance with such guidelines as may be established from time to time, Executive shall be reimbursed by BKF Capital for all reasonable business expenses actually and necessarily incurred by Executive on behalf of BKF Capital in connection with Executive’s performance of services under this Agreement.

6.           Representations as to Employability.

6.1        Absence of prior restrictions. Executive represents and warrants that Executive is not party to, or bound by, any agreement or commitment, or subject to any restriction, including, but not limited to agreements related to previous employment containing confidentiality, non-solicitation, non-poaching or non-compete covenants, which would adversely affect the business of BKF Capital or Executive’s performance of duties under this Agreement.

6.2         Absence of third party proprietary information. Executive represents and warrants that Executive is not in possession of and will not bring onto the Company’s premises or access or utilize any proprietary information of any prior employer or other third-party that Executive is not permitted to have. Executive represents, further, that Executive will be able to fulfill Executive’s duties hereunder without such proprietary information by utilizing only information that is generally available in the public domain or the rightful property of Executive or the Company.

7.           Confidentiality and Proprietary Information.

7.1Non-Disclosure. During the course of Executive’s employment with BKF Capital, Executive will learn of Confidential Information (as defined below) and Executive may develop Confidential Information on behalf of BKF Capital. Executive agrees that Executive will not use or disclose to any Person (except as required by applicable law or for the proper performance of Executive’s duties and responsibilities for BKF Capital) any Confidential Information obtained or created by Executive incident to Executive’s employment or any other association with BKF Capital. Executive understand that this restriction shall continue to apply after Executive’s employment terminates, regardless of the reason for such termination.

7.2        Protection of Information. All information, data, documents, records and files, in any kind of media, relating to the business (whether past, present or future) of BKF Capital (“Confidential Information”), whether or not prepared by Executive, shall be the sole and exclusive property of BKF Capital. Executive agree to safeguard all Confidential Information and to surrender to BKF Capital, at the time Executive’s employment terminates or at such earlier time as requested, all tangible forms of Confidential Information of BKF Capital then in Executive’s possession or control, and to destroy or retrieve any copies, such that no Confidential Information which was at any time in Executive’s possession or control will exist in tangible form other than what Executive have turned over to BKF Capital or destroyed.

7.3         Proprietary Information and Inventions Agreement. The Executive represents and acknowledges that she has executed the Company’s Proprietary Information and Inventions Agreement which provides for, among other things, non-disclosure of confidential and proprietary information. A copy of the Company’s form Proprietary Information and Inventions Agreement is attached hereto as Appendix A, and is expressly made a part of this Agreement. The Executive, further, represents and acknowledges that she is bound by the terms of the Executive Proprietary Information and Inventions Agreement and that any breach of the Executive Proprietary Information and Inventions Agreement shall constitute a material breach of this Agreement.

8.           Non-competition and Non-solicitation. The Executive represents and acknowledges that she has executed the Company’s Covenant Not to Compete and Non-Solicitation Agreement which provides for, among other things, non-competition and non-solicitation of customers and employees of the Company. A copy of the Company’s form Covenant Not to Compete and Non-Solicitation Agreement is attached hereto as Appendix B, and is expressly made a part of this Agreement. The Executive, further, represents and acknowledges that she is bound by the terms of the Company’s Covenant Not to Compete and Non-Solicitation Agreement and that any breach of the Company’s Covenant Not to Compete and Non-Solicitation Agreement shall constitute a material breach of this Agreement.

9.           Termination. This Agreement may be terminated prior to the expiration of the Term set forth in Section 3 upon the occurrence of any of the events set forth in, and subject to the terms of, this Section 9.

9.1         Voluntarily. The Company and/or the Executive may terminate this Agreement at any time by written notice to the other Party. Either Party may waive such notice from the other Party.

9.2         Death. This Agreement will terminate immediately and automatically upon Executive’s death.

9.3         Disability. This Agreement may be terminated at BKF Capital’s option, immediately upon notice to the Executive, if Executive shall suffer a permanent disability. For the purposes of this Agreement, the term “permanent disability” shall mean Executive’s inability to perform Executive’s duties under this Agreement for a period of ninety (90) consecutive days due to illness, accident or any other physical or mental incapacity, as determined by the Board. In the event that a dispute arises with respect to Executive’s disability, the Board shall select a duly licensed medical doctor to make such a determination, and the decision of such doctor will be binding on the parties.

9.4         Termination by BKF Capital for Cause. Notwithstanding anything contained herein to the contrary, Company may terminate the employment of the Executive and all of the Company’s obligations under this Agreement at any time for Cause (as hereinafter defined) by giving the Executive written notice of such termination, with reasonable specificity of the details thereof. “Cause” shall include, without limitation, the following: (i) conviction (including conviction on a Nolo Contendere plea) of a felony, or a misdemeanor where imprisonment is imposed and served; (ii) commission of any act of theft, fraud, dishonesty, unethical business conduct, or intentional falsification of any employment or Company’s records; (iii) improper disclosure of the Company’s confidential or proprietary information; (iv) any action by the Executive which has a detrimental effect on the Company’s reputation or business; (v) failure or neglect or inability by the Executive to devote her full time and best efforts to the Company’s business and affairs; (vi) failure or neglect by the Executive to perform the duties of the Executive’s position which failure or neglect has an adverse effect of the Company or its prospects, other than for reasons of Disability; (vii) failure of the Executive to obey reasonable orders given by the Board or the CEO, provided such orders are consistent with the scope of Executive’s position; (viii) any material breach of this Agreement or Company rules, of which Executive has or should have prior notice; (ix) chronic and unexcused absenteeism; (x) misconduct by the Executive in connection with the performance of any of her material duties, including, without limitation, misappropriation of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on Company premises or to which the Company is subject; (xi) disloyalty by the Executive; (xii) failure to fully cooperate in any investigation by the Company; (xiii) a course of conduct amounting to gross incompetence; (xiv) any other act of misconduct by the Executive; (xv) the Executive’s abuse of alcohol or other drugs or controlled substances which abuse interferes with the Executive’s performance of her duties or obligations to the Company; or (xvi) the Executive’s resignation hereunder.

A termination pursuant to this Section 9.4 shall take effect ten (10) days after the giving of written notice to the Executive, specifying the nature of such breach, unless the Executive shall, during such ten (10) day period, remedy to the reasonable satisfaction of the Board the misconduct, disregard, failure, abuse or breach specified in such notice; provided, however, that such termination shall take effect immediately upon the giving of such notice if the Board shall, in its reasonable discretion, have determined that such misconduct, disregard, failure, abuse or breach is not remediable (which determination shall be stated in such notice).

9.5         Compensation in Event of Termination.

a. Voluntary Termination. Upon Executive’s voluntary termination of this Agreement pursuant to Section 9.1, Executive shall be entitled to receive the compensation, as set forth in paragraph 4 above, up to the date of termination, and after such date shall not be entitled to any Compensation under this Agreement, and Executive will no longer continue any vesting but will retain any equity that has vested as of the date of termination

b. Termination for Death or Disability. If Executive’s employment is terminated due to the Executive’s Death or Disability pursuant to Sections 9.2 or 9.3, then Executive or her beneficiaries will be entitled to receive: (i) Executive’s Compensation, as set forth in Section 4, above, to the end of the monthly pay period immediately following Executive’s date of termination, (ii) accrued Bonus Payments payable to the Executive under the Management Bonus Plan and (iii) all equity and/or options issued to Executive by BKF Capital but not yet vested shall immediately fully vest.

c. Termination for Cause. Upon the termination of this Agreement pursuant to Section 9.4, the Executive shall receive no severance package and shall not be entitled to any Compensation, benefits or other rights granted herein to the Executive.

d. Termination of Executive by BKF Capital Without Cause. If Executive’s employment is terminated by BKF Capital without cause, then Executive shall be entitled to receive the compensation, as set forth in paragraph 4 above, up to the date of termination, and after such date shall not be entitled to any Compensation under this Agreement, and Executive will no longer continue any vesting but will retain any equity that has vested as of the date of termination.

9.6         Release. In no event shall the Executive be entitled to receive any payments, amounts, rights, or benefits under this Section 9 unless Executive executes a release concerning any claims Executive may have against BKF Capital in a form reasonably acceptable to BKF Capital.

10.        Miscellaneous.

10.1      Survival. The provisions of Sections 7 and 8 shall survive the termination of this Agreement.

10.2      Entire Agreement. This Agreement sets forth the entire understanding of the Parties relating to the Executive’s employment with BKF Capital and merges and supersedes any prior or contemporaneous agreements between the Parties pertaining to the subject matter hereof.

10.3      Modification. This Agreement may not be modified unless in writing and signed by the Party against whom the same is sought to be enforced.

10.4      Waiver. Failure of a Party to enforce one or more of the provisions of this Agreement or to require at any time performance of any of the obligations hereof shall not be construed to be a waiver of such provisions by such Party nor to in any way affect the validity of this Agreement or such Party's right thereafter to enforce any provision of this Agreement, nor to preclude such Party from taking any other action at any time which it would legally be entitled to take.

10.5      Assignment. This Agreement and all any rights or obligations hereunder are not assignable by Executive, but may be assigned by BKF Capital upon the sale of substantially all of its assets.

10.6      Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and transmitted via email, and shall be deemed to have been given at the time of transmittal, as follows:

To BKF Capital:	BKF Capital, Inc.
	225 N.E. Mizner Boulevard, Suite 400
	Boca Raton, Florida  33432
	Attn.:Steven N. Bronson, Chairman and CEO
	Email: sbronson@catalystfinancial.com
To Executive:	Maria Fregosi
	541 N.E. Spanish Trail
	Boca Raton, Florida  33432
	Email: mfregosi@bkfcapital.com

10.7      Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity and enforceability of the other provisions of this Agreement, and the provision held to be invalid or unenforceable shall be modified so as to be enforced as nearly as possible according to its original terms and intent but only to the extent necessary to eliminate such invalidity or unenforceability.

10.8      Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.

10.9      Counterparts. This Agreement may be executed in any number of counterparts, including facsimile and email pdf signatures which shall be deemed as original signatures. All executed counterparts shall constitute one agreement, notwithstanding that all signatories are not signatories to the original or the same counterpart.

IN WITNESS WHEREOF, each Party hereto has duly executed this Agreement as of the date set forth above.

BKF Capital Group, Inc.	Maria Fregosi
/s/	/s/
By:__________________________	_____________________
Steven N. Brosnon, Chairman & CEO	Signature

EX-31

Exhibit 31

Statement Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 By Principal Executive Officer and Principal Financial Officer Regarding Facts and Circumstances Relating to Exchange Act Filings

I, Steven N. Bronson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 of BKF Capital Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a -15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: November 14, 2012

/s/ Steven N. Bronson

Steven N. Bronson, President

EX-32

Exhibit 32

President's Written Certification
Of Financial Statements
Pursuant to 18 U.S.C. Statute 1350

Pursuant to 18 U.S.C. Statute 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned hereby certifies in his capacity as president of BKF Capital Group, Inc. (the "Company") that

(a) the Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2012 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, and

(b) the information contained in such report fairly presents, in all material respects, the financial condition of the Company at the end of such period and the results of operations of the Company for such period.

Dated: November 14, 2012

/s/ Steven N. Bronson

Steven N. Bronson, President

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Concentrations

9 Months Ended

Sep. 30, 2012

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

3. Concentrations

On October 3, 2008, the Emergency Economic Stabilization Act of 2008 increased the insurance coverage offered by the Federal Deposit Insurance Corporation (FDIC) from $100,000 to $250,000 per depositor. This limit is anticipated to return to $100,000 after December 31, 2013. Additionally, under the FDIC's Temporary Liquidity Guarantee Program, amounts held in non-interest bearing transaction accounts at participating institutions are fully guaranteed by the FDIC through December 31, 2013. The Company had amounts in excess of $250,000 in a single bank during the year. Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation. These balances fluctuate during the year and can exceed this $250,000 limit.

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Investments

9 Months Ended

Sep. 30, 2012

Cash and Cash Equivalents [Abstract]

Investments in Available for Sale Securities [Text Block]

2. Investments

Investments are classified as available-for-sale according to the provisions of ASC Topic 320, Investments - Debt & Equity Securities. Accordingly, the investments are carried at fair value with unrealized gains and losses reported separately in other comprehensive income.

At September 30, 2012 the Company held 2,239,419 common shares of Qualstar Corporation valued at approximately $3,270,000.

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 6,756	$ 8,292
Investments	3,270	3,337
Prepaid expenses and other assets	34	77
Total assets	10,060	11,706
Liabilities and Stockholders' Equity
Accrued expenses	70	41
Total liabilities	70	41
Commitments and contingencies
Stockholders' equity
Common stock, $1 par value, authorized - 15,000,000 shares, 7,446,593 issued and outstanding as of September 30, 2012 and December 31, 2011	7,447	7,447
Additional paid-in capital	68,269	68,269
Accumulated deficit	(65,248)	(64,570)
Accumulated other comprehensive income/(loss)	(478)	519
Total stockholders' equity	9,990	11,665
Total liabilities and stockholders' equity	$ 10,060	$ 11,706

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Basis of Accounting

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Basis of Accounting [Text Block]

The unaudited condensed consolidated financial statements included herein were prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's Form 10-K for the year ended December 31, 2011.

In the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year.

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Organization and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1. Organization and Summary of Significant Accounting Policies

Organization and Basis of Presentation

BKF Capital Group, Inc. (the "Company") operates through a wholly-owned subsidiary, BKF Management Co., Inc. and its subsidiaries, all of which are referred to as "BKF." The Company trades on the over the counter market under the symbol ("BKFG"). Currently, the Company is seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues and increase shareholder value.

The consolidated financial statements of BKF include its wholly-owned subsidiaries BKF Asset Management, Inc., ("BAM"), BAM's two wholly-owned subsidiaries, BKF GP Inc. ("BKF GP") and LEVCO Securities, Inc. ("LEVCO Securities"). All inter-company accounts have been eliminated. All adjustments necessary for a fair statement of results for the interim period have been made and all such adjustments were of a normal recurring nature.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Cash and Cash Equivalents

Investments in money market funds are valued at net asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit risk related to the money market funds and the market rate inherent in the money market funds.

OTHER COMPREHENSIVE INCOME

The Company presents other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid in capital in the equity section of a statement of position. The Company reports its unrealized gains and losses on investments in securities as other comprehensive income (loss) in its financial statements.

Fair Values of Financial Instruments

Financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried in the consolidated financial statements at amounts that approximate fair value at September 30, 2012 and December 31, 2011. Fair values are based on market prices and assumptions concerning the amount and timing of estimated future cash flows. Investments have been valued using level 1 inputs under ASC Topic 820, Fair Value Measurements and Disclosures.

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION [Parenthetical] (USD $)	Sep. 30, 2012	Dec. 31, 2011
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,446,593	7,446,593
Common stock, shares outstanding	7,446,593	7,446,593

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Warrants (Details Textual) (USD $)	1 Months Ended
	Mar. 31, 2011	Mar. 01, 2011
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 1.00
Class Of Warrant Or Right, Exercisable Period	5 years
Class Of Warrant Or Right, Termination Period	90 days
Class Of Warrants Or Right, Exercisable Upon Completion Of First Financial Target (in shares)	50,000
Class Of Warrants Or Right, Exercise Price Upon Completion Of First Financial Target (in dollars per share)	$ 1.55
First Financial Target To Be Achieved To Exercise Warrants (in dollars)	$ 5,000,000
Class Of Warrant Or Right Employment Description	completion of twelve months of employment.
Class Of Warrants Or Right, Exercisable Upon Completion Of Second Financial Target (in shares)	50,000
Class Of Warrants Or Right, Exercise Price Upon Completion Of Second Financial Target (in dollars per share)	$ 1.55
Second Financial Target To Be Achieved To Exercise Warrants (in dollars)	10,000,000
Class Of Warrants Or Right, Exercisable Upon Completion Of Third Financial Target (in shares)	50,000
Class Of Warrants Or Right, Exercise Price Upon Completion Of Third Financial Target (in dollars per share)	$ 2.00
Third Financial Target To Be Achieved To Exercise Warrants (in dollars)	15,000,000
Class Of Warrants Or Right, Exercisable Upon Completion Of Fourth Financial Target (in shares)	50,000
Class Of Warrants Or Right, Exercise Price Upon Completion Of Fourth Financial Target (in dollars per share)	$ 2.00
Fourth Financial Target To Be Achieved To Exercise Warrants (in dollars)	$ 20,000,000

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DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Sep. 30, 2012	Nov. 13, 2012
Entity Registrant Name	BKF CAPITAL GROUP INC
Entity Central Index Key	0000009235
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	bkfg
Entity Common Stock, Shares Outstanding		7,446,593
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012

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Restricted Stock Grant (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2012
Salaries, Wages and Officers' Compensation	$ 60,000
July 31, 2013 [Member]
Common Stock Vesting	25,000
July 31, 2014 [Member]
Common Stock Vesting	25,000
July 31, 2015 [Member]
Common Stock Vesting	25,000
July 31, 2016 [Member]
Common Stock Vesting	25,000
Restricted Stock [Member]
Shares, Issued	100,000

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Operating income:
Royalties	$ 0	$ 0	$ 0	$ 0
Non Operating Income
Interest income	4	6	14	20
Other income	7	16	30	46
Total revenues	11	22	44	66
Expenses:
Employee compensation and benefits	68	71	212	202
Occupancy and equipment rental	16	16	48	48
Other operating expenses	39	8	462	78
Total expenses	123	95	722	328
Net income/(loss)	(112)	(73)	(678)	(262)
Other comprehensive income, net of tax
Unrealized gain (loss) on investments	(985)	186	(997)	375
Other comprehensive income/(loss)	$ (1,097)	$ 113	$ (1,675)	$ 113
Net income/(loss) per share:
Basic and Diluted (in dollars per share)	$ (0.02)	$ (0.01)	$ (0.09)	$ 0.04
Weighted average common shares outstanding (in shares)	7,446,593	7,446,593	7,446,593	7,446,593

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Restricted Stock Grant

9 Months Ended

Sep. 30, 2012

Restricted Stock [Abstract]

Restricted Stock Grant [Text Block]

6. Restricted Stock Grant

On August 1, 2012, the Company rehired Maria Fregosi to serve as the Company’s Chief Operating Officer. In addition to an annual salary of 60,000 per annum, the Company also issued Ms. Fregosi 100,000 restricted shares, on August 1, 2012, of the Company’s common stock vesting a follows: (i) 25,000 on July 31, 2013, (ii) 25,000 on July 31, 2014, (iii) 25,000 on July 31, 2015, and (iv) 25,000 on July 31, 2016.

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Warrants

9 Months Ended

Sep. 30, 2012

Warrants [Abstract]

Warrants [Text Block]

5. Warrants

On March 1, 2011, the Company granted warrants to purchase 200,000 shares of the Company’s common stock, $1.00 par value to an executive of the company in exchange for certain services to be rendered. The warrants are exercisable for a period of 5 years, but they shall expire and terminate ninety (90) days after the Executive’s separation from the Company for any reason. The warrants shall vest and be exercisable as follows: (i) 50,000 warrants exercisable at $1.55 per share shall vest upon the occurrence of BKF raising $5,000,000 through the sale of equity and completion of twelve months of employment; (ii) 50,000 warrants exercisable at $1.55 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $10,000,000 from the execution of this Agreement; (iii) 50,000 warrants exercisable at $2.00 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $15,000,000 from the execution of this Agreement; and (iv) 50,000 warrants exercisable at $2.00 per share shall vest upon the occurrence of BKF Capital raising an aggregate amount of $20,000,000 from the execution of this Agreement. The executive to whom these warrants relate resigned as of April 25, 2012 and the warrants expired. At September 30, 2012, the Company had no warrants outstanding.

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Concentrations (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2012	Oct. 03, 2008
Cash, FDIC Insured, Initial Amount (in dollars)		$ 100,000
Cash, FDIC Insured, Amount After Amendment (in dollars)		250,000
Cash, FDIC Insured, Anticipated Coverage Limit (in dollars)	$ 100,000
Cash, FDIC Insured, Anticipated Coverage Limit Date	Dec. 31, 2013
Cash, FDIC in Single Bank Account, Description	The Company had amounts in excess of $250,000 in a single bank during the year.
Cash, FDIC Not Insured, Anticipated Excess Amount, Description	Amounts over $250,000 are not insured by the Federal Deposit Insurance Corporation.
Cash, FDIC Balances Fluctuate, Description	These balances fluctuate during the year and can exceed this $250,000 limit.

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Organization and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation, Policy [Policy Text Block]

Organization and Basis of Presentation

BKF Capital Group, Inc. (the "Company") operates through a wholly-owned subsidiary, BKF Management Co., Inc. and its subsidiaries, all of which are referred to as "BKF." The Company trades on the over the counter market under the symbol ("BKFG"). Currently, the Company is seeking to consummate an acquisition, merger or business combination with an operating entity to enhance BKF's revenues and increase shareholder value.

The consolidated financial statements of BKF include its wholly-owned subsidiaries BKF Asset Management, Inc., ("BAM"), BAM's two wholly-owned subsidiaries, BKF GP Inc. ("BKF GP") and LEVCO Securities, Inc. ("LEVCO Securities"). All inter-company accounts have been eliminated. All adjustments necessary for a fair statement of results for the interim period have been made and all such adjustments were of a normal recurring nature.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Investments in money market funds are valued at net asset value. The Company maintains substantially all of its cash and cash equivalents in interest bearing instruments at two nationally recognized financial institutions, which at times may exceed federally insured limits. As a result the Company is exposed to credit risk related to the money market funds and the market rate inherent in the money market funds.

Comprehensive Income, Policy [Policy Text Block]

OTHER COMPREHENSIVE INCOME

The Company presents other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. This section requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid in capital in the equity section of a statement of position. The Company reports its unrealized gains and losses on investments in securities as other comprehensive income (loss) in its financial statements.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Values of Financial Instruments

Financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried in the consolidated financial statements at amounts that approximate fair value at September 30, 2012 and December 31, 2011. Fair values are based on market prices and assumptions concerning the amount and timing of estimated future cash flows. Investments have been valued using level 1 inputs under ASC Topic 820, Fair Value Measurements and Disclosures.

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Investments (Details Textual) (USD $)	Sep. 30, 2012
Investment Owned, Balance, Shares (in shares)	2,239,419
Investment Owned, at Fair Value (in dollars)	$ 3,270,000

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Commitments and Contingencies (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2012
Loss Contingency, Damages Sought, Value	$ 171,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net income (loss)	$ (678)	$ (262)
Changes in operating assets and liabilities:
Decrease in advisory trailer fees and other receivable	0	15
Decrease in prepaid expenses and other assets	42	246
Increase (decrease) in accrued expenses	29	(57)
Decrease in accrued lease liability expense	0	(1,139)
Net cash used in operating activities	(607)	(1,197)
Cash flows from investing activities
Purchase of investment securities	(929)	(267)
Net cash used in investing activities	(928)	(267)
Net decrease in cash and cash equivalents	(1,536)	(1,464)
Cash and cash equivalents at the beginning of the period	8,292	9,744
Cash and cash equivalents at the end of the period	6,756	8,280
Supplemental disclosure of cash flow information
Cash paid for interest	0	0
Cash paid for income taxes	$ 0	$ 0

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

4. Commitments and Contingencies

The Company could be subject to a variety of claims, suits and proceedings that arise from time to time, including actions with respect to contracts, regulatory compliance and public disclosure. These actions may be commenced by a number of different constituents, including vendors, former employees, regulatory agencies, and stockholders. The following is a discussion of the more significant matters involving the Company.

The Company is a defendant in a lawsuit for claims for alleged services in the amount of approximately $171,000. The complaint was filed in the New York State Supreme Court and alleges a claim for breach of contract against BAM for alleged goods and services delivered to BAM. The Company is vigorously defending this action. The Company has no specific reserve for this action.