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<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 1. </font><u><font style="font: x-small Times New Roman">Basis of Presentation</font></u></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">Morgan Group Holding Co. (“Holding” or “the Company”) was incorporated in November 2001 as a wholly-owned subsidiary of LICT Corporation (“LICT”) to serve, among other business purposes, as a holding company for LICT’s controlling interest in The Morgan Group, Inc. (“Morgan”). On January 24, 2002, LICT spun off 2,820,051 shares of Holding common stock through a pro rata distribution (“Spin-Off”) to its stockholders and retained 235,294 shares.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.</font></p></div>
<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 2. </font><u><font style="font: x-small Times New Roman">Significant Accounting Policies</font></u></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">All highly liquid investments with maturity of three months or less when purchased are considered to be cash equivalents. The carrying value of a cash equivalent approximates its fair value based on its nature.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">At March 31, 2019, December 31, 2018, and March 31, 2018, all cash and cash equivalents were invested in a United States Treasury money market fund, of which an affiliate of the Company serves as the investment manager.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">The Company may from time to time invest in marketable securities that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">Basic earnings per share is based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share is based on basic shares plus the incremental shares that would be issued upon the assumed exercise of in-the-money stock options and unvested restricted stock using the treasury stock method and, if dilutive</font></p></div>
<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 3. </font><u><font style="font: x-small Times New Roman">Fair Value of Financial Instruments</font></u></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">The Company measures fair value as the selling price that would be received for an asset, or paid to transfer a liability, in the principal market on the measurement date. The hierarchy established by the FASB prioritizes fair value measurements based on the types of inputs used in the valuation technique. The inputs are categorized into the following levels:</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">Level 2 – Inputs other than quoted prices that are observable, either directly or indirectly, for identical or similar assets and liabilities in active or non-active markets; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liability.</font></p>
<p style="text-align: justify; padding-left: 32pt"><font style="font: x-small Times New Roman">Level 3 – Unobservable inputs not corroborated by market data, therefore requiring the entity to use the best available information, including management assumptions.</font></p>
<div style="padding-left: 32pt">
<p style="text-align: justify"><font style="font: x-small Times New Roman">At March 31, 2019, December 31, 2018, and March 31, 2018, the Company’s cash equivalents included money market securities. These securities are valued utilizing quoted market prices from identical instruments and are categorized in Level 1 of the fair value hierarchy.</font></p>
<p style="text-align: justify"><font style="font: x-small Times New Roman">At March 31, 2019, December 31, 2018, and March 31, 2018, there were no gross unrealized gains or losses.</font></p></div></div>
<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 4. </font><u><font style="font: x-small Times New Roman">Income Taxes</font></u></p>
<div style="padding-left: 32pt">
<p style="text-align: justify"><font style="font: x-small Times New Roman">The Company is a “C” corporation for Federal tax purposes, and has provided for deferred income taxes for temporary differences between the financial statement and tax bases of its assets and liabilities. The Company has recorded a full valuation allowance against its deferred tax asset of approximately $201,972 arising from its temporary basis differences and tax loss carryforward, as its realization is dependent upon the generation of future taxable income during the period when such losses would be deductible.</font></p>
<p style="text-align: justify"><font style="font: x-small Times New Roman">Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of any of the Company’s net operating loss carry forwards may be limited if cumulative changes in ownership of more than 50% occur during any three year period.</font></p></div></div>
<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 5. </font><u><font style="font: x-small Times New Roman">Commitments and Contingencies</font></u></p>
<div style="padding-left: 32pt">
<p style="text-align: justify"><font style="font: x-small Times New Roman">From time to time the Company may be subject to certain asserted and unasserted claims. It is the Company’s belief that the resolution of these matters will not have a material adverse effect on its financial position.</font></p></div></div>
<div><p style="text-align: justify"><font style="font: x-small Times New Roman">Note 6. </font><u><font style="font: x-small Times New Roman">Shareholders’ Equity</font></u></p>
<div style="padding-left: 32pt">
<p style="text-align: justify"><font style="font: x-small Times New Roman">On March 19, 2018 the Company sold in a private placement to LICT, 1,500,000 of its shares common stock for $180,000, or $0.12 per share. These funds are intended to be used to pay administrative costs for the next three years, until an acquisition candidate can be found and appropriate financing obtained. The funds from the sale were received on April 3, 2018.</font></p>
<p style="text-align: justify"><font style="font: x-small Times New Roman">At the Company’s Annual Meeting of Stockholders on May 8, 2014, its stockholders voted to amend the Company’s Certificate of Incorporation (the “Charter Amendment”) to increase the number of authorized shares of common stock, par value $0.01 per share, from 10,000,000 to 100,000,000. In order to economize costs until necessary, the Company has not yet filed the Amended Certificate of Incorporation with its state of incorporation, Delaware, to effectuate the authorization.</font></p>
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