# FAMILY INVESTORS COMPANY X-17A-5 (2024-03-01) — Broker-dealer annual report - Company: FAMILY INVESTORS COMPANY - Form: X-17A-5 - Filed: 2024-03-01 - Period: 2023-12-31 - Accession: 0000200258-24-000002 - CIK: 200258 - File #: 8-11190 - Type: Broker-dealer - Material weakness: No - Auditor: BDG CPA's - Auditor location: Ridgewood, NJ - Contact: Susan M Tomljanovic - Phone: 19083221800 - Email: susantomljanovic@familyinvestors.com - Website: familyinvestors.com - Signed by: Susan Tomljanovic (FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/200258/000020025824000002/FamilyInvestorsCompany.pdf --- {0}------------------------------------------------ | SEC FILE NUMBER | |-----------------| | 0 44400 | {1}------------------------------------------------ | Peter Chemidlin
l, __________________________________________________________________________________________________________________________________________________________________________ | | | | | | | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|--|--|--| | | | | | | | | | | | December 31 _ _ , 2 023, is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | | | | | | as that of a customer. | | | | | | | | | | JANET E. ROCKMORE
Signature:
NOTARY PUBLIC OF NEW JE
Title:
AY COMMISSION EXPIRES
President | | | | | | | | | | | | | | | | | | | | Notary Public | | | | | | | | | | | | | | | | | | | | This filing** contains (check all applicable boxes): | | | | | | | | | | 2 (a) Statement of financial condition. | | | | | | | | | | □ (b) Notes to consolidated statement of financial condition. | | | | | | | | | | be (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of | | | | | | | | | | comprehensive income (as defined in § 210.1-02 of Regulation S-X). | | | | | | | | | | 1X (d) Statement of cash flows. | | | | | | | | | | 12 (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | | | | | | | | (f) Statement of changes in liabilities subordinated to claims of creditors. | | | | | | | | | | [2 (g) Notes to consolidated financial statements. | | | | | | | | | | LX (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | | | | | | | | | ڪ (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | | | | | | | | | | | | | | | | | | □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | | | | | | | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | | | | | | | | | (1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | | | | | | | | (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
□ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | | | | | | | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. | | | | | | | | | | ID (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | | | | | | | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | | | | | | | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | | | | | | | | exist. | | | | | | | | | | പ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | | | | | | | | | | (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. | | | | | | | | | | (r) Compliance report in accordance with 17 CFR 240.18a-7, as applicable. | | | | | | | | | | 12 (s) Exemption report in accordance with 17 CFR 240.18a-7, as applicable. | | | | | | | | | | (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | | | | | | | | Q (u) Independent public accountant's report based on an examination of the financial statements under 17 | | | | | | | | | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | | | | | | | | | [] {v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | | | | | | | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | | | | | LX (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | | | | | | | | CFR 240.18a-7, as applicable. | | | | | | | | | | LX (x) Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.17a-12,
as applicable. | | | | | | | | | | (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or | | | | | | | | | | | | | | | | | | | - - {2}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. REPORT ON AUDIT OF FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION** **Pursuant to Rule 17a5 of The Securities Exchange Act of 1934 SEC File No. 8-11190** **FOR THE YEAR ENDED DECEMBER 31, 2023** {3}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2023** | | Page | |------------------------------------------------------------------------------------------------------------------------------|-------| | Report of Independent Registered Public Accounting Firm | 1-2 | | Financial Statements | | | Statement of Financial Condition | 3 | | Statement of Income | 4 | | Statement of Changes in Stockholders' Equity | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7-15 | | Supplemental Information Required by Rule 17a-5 of
the Securities and Exchange Commission | | | Schedule of Computation of Net Capital for Brokers
and Dealers Under SEC Rule 15c3-1 | 16 | | Schedule of Reconciliation of Net Capital per FOCUS
Report with Audit Report | 16 | | Information Relating to Possession or Control Requirements
Under SEC Rule 15c3-1 | 17 | | Independent Accountant's Report on Exemption Report | 18 | | Independent Accountant's Report on Applying Agreed-Upon Procedures
Relating to an Entity's SIPC Assessment Reconciliation | 19-20 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 76 North Walnut Street Ridgewood, New Jersey 07450 201-652-4040 fax: 201-652-0401 www.bdgcpa.com # **Report of Independent Registered Public Accounting Firm** To the Board of Directors and Stockholders of Family Investors Company, Inc.: #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Family Investors Company, Inc. as of December 31, 2023, the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Family Investors Company, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Family Investors Company, Inc.'s management. Our responsibility is to express an opinion on Family Investors Company, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Family Investors Company, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. {5}------------------------------------------------ #### **Auditor's Report on Supplemental Information** The supplemental information in the accompanying Table of Contents has been subjected to audit procedures performed in conjunction with the audit of Family Investors Company, Inc.'s financial statements. The supplemental information is the responsibility of Family Investors Company, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Family Investors Company, Inc.'s auditor since 2018. BDG-CPAs, PC Ridgewood, NJ February 28, 2024 ![](_page_5_Picture_5.jpeg) {6}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** # **ASSETS** | Current assets | | |---------------------------------------------------------|-----------------| | Cash and cash equivalents | \$
377,795 | | Securities owned at market | 555,632 | | Receivables non-customers | 174,697 | | Prepaid taxes | 11,536 | | Prepaid expenses | 7,996 | | Total current assets | \$
1,127,656 | | Property and equipment, net of accumulated depreciation | 11,353 | | Other assets | | | Reserved cash | \$
50,933 | | Deferred tax asset | 8,919 | | Security deposit | 1,400 | | Total other assets | 61,252 | | TOTAL ASSETS | \$
1,200,261 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | Current liabilities | | | Accounts payable and accrued expenses | \$
502,105 | | Total current liabilities | 502,105 | | Total liabilities | \$
502,105 | | Stockholders' equity | | | Common stock, no par value; 2,500 shares | | | Authorized, 1,175 shares issued, and 1,050 outstanding | \$
52,750 | | Cost of 125 shares of common stock held by the Company | (39,904) | | Retained earnings | 685,310 | | Total stockholders' equity | 698,156 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$
1,200,261 | {7}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2023** | Revenues
Cost of revenues
Net revenues | \$1,934,721
840,061
1,094,660 | |-----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------| | General and administrative expenses:
Other salaries & consulting
General administrative
Total general and administrative | 514,148
609,598
1,123,746 | | Loss from operations | (29,086) | | Other income:
Interest income
Dividend income
Unrealized ordinary gain on securities
Total other income | 2,691
22,014
55,193
79,898 | | Income before provision for income taxes | 50,812 | | Income tax expense | 9,016 | | Net income | \$
41,796 | {8}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2023** | | Common
Stock | Treasury
Stock | Retained
Earnings | Total | |------------------------------|-----------------|-------------------|-----------------------------------------------------------------|-----------| | Balance at January 1, 2023 | \$52,750 | (\$30,950) | __________________________________________________
\$643,514 | \$665,314 | | Purchase of treasury stock | - | (8,954) | - | (8,954) | | Net income for fiscal year | - | - | 41,796 | 41,796 | | Balance at December 31, 2023 | \$52,750 | (\$39,904) | \$685,310 | \$698,156 | {9}------------------------------------------------ # **FAMILY INVESTORS COMPANY, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023** | Operating activities: | | |------------------------------------------------------|------------| | Net income | \$ 41,796 | | Adjustment to reconcile net income to net cash flows | | | provided by operating activities | | | Depreciation | 4,688 | | Changes in other operating assets and liabilities | | | Securities owned at market | (75,902) | | Receivables non-customers | (16,699) | | Prepaid taxes | (10,326) | | Prepaid expenses | 1,769 | | Deferred tax asset | 5,770 | | Accounts payable and accrued expenses | 110,634 | | Net cash provided by operating activities | 61,730 | | Investing activities | | | Purchase of fixed assets | (5,591) | | Net cash used in investing activities | (5,591) | | Financing activities | | | Purchase of treasury stock | (8,954) | | Net cash used in financing activities | (8,954) | | Net increase in cash during the fiscal year | 47,185 | | Cash at December 31, 2022 | 330,610 | | Cash at December 31, 2023 | \$ 377,795 | | Supplemental disclosure of cashflow information | | | Interest paid during the year | \$
- | | Income taxes paid during the year | \$ 13,572 | {10}------------------------------------------------ # **1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # *Nature of Operations* Family Investors Company, Inc. (the "Company") was incorporated in the State of New Jersey on April 1, 1960. The Company is an introducing broker registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is exempt from rule 15c3-3 of the SEC under paragraph (K)(2)(ii) of that rule. # *Basis of Accounting* Revenue and expenses are recorded on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. # *ASC 606 Revenue Recognition* In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, *Revenue from Contracts with Customers* (Topic 606) ("ASC 606"). The requirements of ASC 606 were effective for the Company for the year ended December 31, 2018. The Company adopted the standard on January 1, 2018 using the modified retrospective approach, and in conjunction with the adoption, management evaluated the new guidance in ASC 606 and determined that there is no change in the manner that the Company recognizes revenue. Furthermore, management has determined that the required guidance in ASC 606 does not have an impact on the Company's financial or regulatory capital. #### *Cash and Cash Equivalents* The Company considers all highly liquid investments, except for those held or long-term investment, with maturities of three months or less when purchased to be cash equivalents. #### *Deposit at Clearing Broker* A cash deposit is required to be held by the clearing broker in order to maintain a contractual clearing agreement. See Report of Independent Registered Public Accounting Firm. {11}------------------------------------------------ #### *Securities Transactions* The Company accepts customer orders and self clears the orders except for equity securities, which clear through another broker. The clearing broker settles the equity security transaction and pays the Company a commission. Customer payments for the investment company shares are payable directly to the investment company. #### *Property and Equipment* Property and equipment are recorded at cost. Depreciation for property and equipment is provided using the straight-line method for financial purposes at rates based on the following estimated useful lives: | | Years | |------------------|-------| | Office Equipment | 7 | | Furniture | 5 | Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is reported. Expenditures for major renewals and improvements that extend the useful lives of the property and equipment are capitalized. Expenditures for the maintenance and repairs are charged to expense as incurred. {12}------------------------------------------------ #### *Revenue and Cost Recognition* Commissions and related expenses are recorded on a trade-date basis as securities transactions clear. #### *Advertising Costs* The Company expenses advertising costs as they are incurred. Advertising expense for the year ended December 31, 2023 was \$10,338. #### *Income Taxes and Deferred Taxes* The Company is taxed as a C-corporation pursuant to the Internal Revenue Code and applicable state laws. The company accounts for income taxes in accordance with FASB ASC 740, *Income Taxes,* which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be deductible or taxable when assets and liabilities are recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. # *Uncertain Tax Positions* The Company is required to recognize, measure, classify, and disclose in the financial statements uncertain tax positions taken or expected to be taken in the Company's tax returns. Management has determined that the Company does not have any uncertain tax positions and associated unrecognized benefits that materially impact the financial statements or related disclosures. Since tax matters are subject to some degree of uncertainty, there can be no assurance that the Company's tax returns will not be challenged by the taxing authorities and that the Company will not be subject to additional tax, penalties, and interest as a result of such challenge. Generally, the Company's current and prior three years tax returns remain subject for income tax examination as of December 31, 2023. {13}------------------------------------------------ #### *Receivables from Non-Customers* Commission revenue and other fees due from the clearing broker and investment companies but not yet received that are expected to be collected within one year is recorded as receivables from non-customers at a net realized value. If amounts become uncollectible, they will be charged to the operations when that determination is made. # *Use of Estimates* The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenues and expenses during the reporting period. Actual results could differ from the estimates. # *Date of Management's Review* After 63 years of being an independent self-clearing broker dealer, the Company has decided to partner with Cambridge Investment Research. The Company will operate as a supervisory location. Cambridge will pay the Company a payout of 92% for all commissionable business and trails. This partnership will provide the Company with regulatory oversight, increased technology and reporting as well as the ability to do fee based business. The transition will begin on January 4, 2024 and is expected to be completed by April 4, 2024, when the Company plans to close down its broker dealer with FINRA. Management has evaluated subsequent events through February 28, 2024 which is the date the financial statements were available to be issued. # **2) FAIR VALUE MEASUREMENTS** The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures of investments in equity securities and mutual funds that are classified as available-for-sale on a recurring basis. The Fair Market Value Measurements Topic of the FASB Accounting Standards Codification defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements for fair value measurements. The disclosures required under this Topic have been included in this note. {14}------------------------------------------------ # *Fair Value Hierarchy* The Fair Market Value Measurements Topic of the FASB Accounting Standards Codification establishes a fair market value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy give the highest priority to unadjusted quoted prices in active markets for the identical assets or liabilities (Level 1 measurement) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included with Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. # *Determination of Fair Value* Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the Company bases its fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is the Company's policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. # *Cash Value and Cash Equivalents, Short Term Financial Instruments, Receivables from Non-Customers and Accounts Payable* The carrying amounts approximate fair value because of the short maturity of instruments. #### *Investments in Mutual Funds* Investments in mutual funds that are classified as available-for-sale are recorded at fair value on a recurring basis. Investments in mutual funds are valued at the net asset value ("NAV") of shares held by the Company at year-end. Management believes that the valuations used in its financial statements are reasonable and are appropriately classified in the fair value hierarchy. Realized gains and losses, determined using the specific identification method, are included in earnings; as are unrealized holdings gains and losses. {15}------------------------------------------------ #### *Assets Measured and Recognized at Fair Value on a Recurring Basis* The table below presents the amounts of assets measured at fair value recurring basis as of December 31, 2023: | | Total | Level 1 | Level 2 | Level 3 | |--------------|------------|------------|---------|---------| | Mutual funds | \$ 555,632 | \$ 555,632 | \$
- | \$
- | # **3) RESERVED CASH** The Company is required to maintain reserve funds on deposit with the clearing broker. The required reserve at December 31, 2023 was \$50,000. Cash on deposit in the reserve amounted to \$50,933 at December 31, 2023. # **4) RECEIVABLES FROM NON-CUSTOMERS** Amounts receivable from the clearing broker investment companies at December 31, 2023 consist of fees and commissions receivable in the amount of \$174,697. The Company believes its receivables to be fully collectible; accordingly, no allowance for doubtful accounts was recorded for the year then ended. #### **5) SECURITIES OWNED – MARKETABLE** As of December 31, 2023, the Company has no holdings in equity securities classified as securities owned at market in the statement of financial condition. Marketable securities owned are considered trading securities by management. At December 31, 2023, marketable securities consist of mutual funds in the amount of \$555,632. # **6) PROPERTY AND EQUIPMENT** The following is a summary of property and equipment less accumulated depreciation as of December 31, 2023. Depreciation expense for the year then ended was \$4,688. | Furniture and fixtures | \$ 45,245 | |-------------------------------|-----------| | Office equipment | 50,323 | | | 95,568 | | Less accumulated depreciation | 84,215 | | | \$ 11,353 | See Report of Independent Registered Public Accounting Firm. {16}------------------------------------------------ # **7) INCOME TAX** The income tax expense (benefit) for the year ended December 31, 2023 consists of the following: | Current | | |-----------------|----------| | Federal | \$ 2,640 | | State and local | 606 | | Deferred | 3,246 | | Federal | 4,712 | | State and local | 1,058 | | | 5,770 | | | \$ 9,016 | The income tax expense reported on the statement of income differs from the amounts that would result from applying statutory tax rates to income before income tax primarily because of the dividend received deduction, the charitable contribution deductibility, and the unrealized gain/loss deductibility. The deferred tax asset of \$8,919 as of December 31, 2023 relates primarily to the net unrealized gain position as this will be realized only upon disposition, this item is non-current. The Company has chosen to early adopt the amendments in FASB Accounting Standards Update (ASU) 2015-17 *Balance Sheet Classifications of Deferred Taxes,* prior periods were not retrospectively adjusted. # **8) EMPLOYEE BENEFIT PLAN** The Company maintains a contributory profit sharing plan as defined under section 401(k) of the U.S. Internal Revenue Service Code covering substantially all employees. Company contributes to the plan at a rate of 6% of the employees' eligible compensation. Employer contributions during the year ended December 31, 2023 were \$59,500. In addition the Company has a profit sharing plan which provides for discretionary contributions as determined annually by the Board of Directors. The Board of Directors has elected to contribute to the profit sharing plan for 2023. The profit sharing contribution for the year ended December 31, 2023 was \$71,259. {17}------------------------------------------------ # **9) CONCENTRATION OF RISK** The Company is engaged in various activities in which counter-parties primarily include brokerdealers, banks, and other financial institutions. In the event counter-parties do not fill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counter-party or issuer of the instrument. For the year ended December 31, 2023, commissions from three companies represented approximately 84% of the total commissions earned. The Company maintains in its cash balances various financial institutions. The balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000. At December 31, 2023, cash balance held by the clearing broker totaled \$50,933, and the cash balance held in the money market fund totaled \$2,073. These balances are not insured by the FDIC. # **10) NET CAPITAL REQUIREMENTS** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2023, the Company had net capital of \$508,803 which was \$458,803 in excess of its required net capital. The Company's ratio of aggregate indebtedness to net capital as of December 31, 2023 was 0.99 to 1.0. # **11) SUBSEQUENT EVENTS** The Company has made a review of material subsequent events from December 31, 2023 through the date of this report. See Note 1. # **12) REVENUES FROM CONTRACTS WITH CUSTOMERS** #### *Significant Judgments* Revenue from contracts with customers includes commission income. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. {18}------------------------------------------------ #### *Commissions* *Brokerage commissions*: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. #### *Disaggregated Revenue from Contracts with Customers* The following table presents revenue by major source. Revenue from contracts with customers | Commissions | | |---------------------------------------------|-------------| | Brokerage Commissions | \$1,934,721 | | Total commission revenue | \$1,934,721 | | Total revenue from contracts with customers | \$1,934,721 | # **13) ECONOMIC UNCERTAINTY RELATED TO COVID-19 AND MARKET RISKS** In early 2020, the Coronavirus that causes COVID-19 became a global pandemic. While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration of this disruption. Therefore, the extent of the financial impact to the ongoing operations of the Company and duration cannot be reasonably estimated at this time. Market risks include risks related to pandemics and international conflicts. As of December 31, 2023, the Company had sufficient liquidity to continue operations into the foreseeable future. {19}------------------------------------------------ # **SCHEDULE I & II Computation of the Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission, and Schedule II – Reconciliation of Computation of Net Capital Pursuant to Rule 15c3-1** | Total stockholders' equity | \$698,156 | |----------------------------------------------------------|-----------| | Non-allowable assets: | | | Accounts receivable (unallowable portion) | 64,393 | | Property and equipment, net of accumulated depreciation | 11,353 | | Prepaid expenses | 19,532 | | Deferred tax asset | 8,919 | | Security deposits | 1,400 | | Petty cash | 200 | | Total non-allowable assets, deductions and charges | 105,797 | | NET CAPITAL | \$592,359 | | Haircut on securities and money market funds | 83,556 | | ADJUSTED NET CAPITAL | \$508,803 | | | | | Minimum requirements of 6-2/3% of aggregate indebtedness | | | or \$50,000, whichever is greater | 50,000 | | EXCESS NET CAPITAL | \$458,803 | | AGGREGATE INDEBTEDNESS: | | | Total liabilities | \$502,105 | | RATIO OF AGGREGATE INDEBTEDNESS
TO NET CAPITAL | 98.68% | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Net capital previously reported | \$508,804 | | Rounding adjustment | (1) | | Net capital per this report | \$508,803 | See Report of Independent Registered Public Accounting Firm and accompanying notes. {20}------------------------------------------------ {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) 76 North Walnut Street Ridgewood, New Jersey 07450 fax: 201-652-0401 www.bdgcpa.com 201-652-4040 # **Report of Independent Registered Public Accounting Firm** To the Board of Directors and Shareholders of Family Investors Company, Inc.: We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Family Investors Company, Inc. (the "Company") identified the following provision of 17 C.F.R. §15c3-3(k) under which Family Investors Company, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) (exemption provision) and (2) Family Investors Company, Inc. stated that the Company met the identified exemption provision throughout the most recent fiscal year without exception. Family Investors Company, Inc.'s management is responsible for compliance with the exemption provision and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Family Investors Company, Inc.'s compliance with the exemption provision. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provision set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. BDG-CPAs, PC Ridgewood, NJ February 28, 2024 {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) 76 North Walnut Street Ridgewood, New Jersey 07450 201-652-4040 fax: 201-652-0401 www.bdgcpa.com # **Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures** To the Board of Directors and Stockholders of Family Investors Company, Inc.: We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2023. Management of Family Investors Company, Inc. (the "Company") is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our associated findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2023 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2023, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. {23}------------------------------------------------ We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on Family Investors Company, Inc.'s Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of Family Investors Company, Inc. and SIPC and is not intended to be and should not be used by anyone other than these specified parties. BDG-CPAs, PC Ridgewood, New Jersey February 28, 2024 ![](_page_23_Picture_5.jpeg) {24}------------------------------------------------ #### **GENERAL ASSESSMENT FORM** For the fiscal year ended \_\_\_\_\_\_\_\_\_\_ 12/31/2023 | | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
FAMILY INVESTORS COMPANY INC
1/1/2023
For the fiscal period beginning ______________ and ending ____________ | SEC No.
8-11190
12/31/2023 | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|---------------------------------------| | 1 | Total Revenue (FOCUS Report – Statement of Income (Loss) – Code 4030) | | \$ 2,014,619.00
__________________ | | 2 | Additions: | | | | | a Total
revenues
from
the
securities
business
of
subsidiaries
(except
foreign
subsidiaries)
and
predecessors
not
included
above. | __________________ | | | | b Net
loss
from
principal
transactions
in
securities
in
trading
accounts. | __________________ | | | | c Net
loss
from
principal
transactions
in
commodities
in
trading
accounts. | __________________ | | | | d Interest
and
dividend
expense
deducted
in
determining
item
1. | __________________ | | | | e Net
loss
from
management
of
or
participation
in
the
underwriting
or
distribution
of
securities. | __________________ | | | | f Expenses
other
than
advertising,
printing,
registration
fees
and
legal
fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | __________________ | | | | g Net loss from securities in investment accounts. | __________________ | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00
__________________ | | 3 | Add lines 1 and 2h | | \$ 2,014,619.00
__________________ | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 219,836.00
__________________ | | | | b Revenues
from commodity transactions. | __________________ | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | __________________ | | | | d Reimbursements for postage in connection with proxy solicitations. | __________________ | | | | e Net gain from securities in investment accounts. | __________________ | | | | f 100% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | __________________ | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | __________________ | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | __________________ | | | 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss) -
Code 4075 plus line 2d above) but
not
in excess of total interest and dividend income
__________________ | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report - Statement of Income (Loss)
-
Code 3960)
__________________ | | | | | c Enter the greater of line 5a or 5b | \$ 0.00
__________________ | | | 6 | Add lines 4a through 4h and 5c. This is your total deductions. | | \$ 219,836.00
__________________ | {25}------------------------------------------------ | SIPC-7
37 REV 0722 | | SECURITIES INVESTOR PROTECTION CORPORATION | | SIPC-7
37 REV 0722 | |-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------------------| | | | GENERAL ASSESSMENT FORM | | | | | | 12/31/2023
For the fiscal year ended __________ | | | | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | \$ 1,794,783.00
__________________ | | 8 | Multiply line 7 by .0015. This is your General Assessment. | | | \$ 2,692.00
__________________ | | 9 | Current overpayment/credit balance, if any | | | \$ 0.00
__________________ | | 10 | 2023
General assessment from last filed
_____
SIPC-6 or 6A | | \$ 1,322.00
__________________ | | | | 2023
11 a Overpayment(s) applied on all _____ SIPC-6 and 6A(s)
b Any other overpayments applied
2023
c All payments applied for _____ SIPC-6 and 6A(s)
d Add lines 11a through 11c | \$ 0.00
__________________
\$ 0.00
__________________
\$ 1,322.00
__________________ | \$ 1,322.00
__________________ | | | 12 | LESSER of line 10 or 11d. | | | \$ 1,322.00
__________________ | | | 13 a Amount from line 8 | | \$ 2,692.00
__________________ | | | | b Amount from line 9 | | \$ 0.00
__________________ | | | | c Amount from line 12 | | \$ 1,322.00
__________________ | | | | d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | | \$ 1,370.00
__________________ | | 14 | 0
Interest (see instructions) for ______ days late at 20% per annum | | | \$ 0.00
__________________ | | 15 | Amount you owe SIPC. Add lines 13d and 14. | | | \$ 1,370.00 | | 16 | Overpayment/credit carried forward (if applicable) | | | \$ 0.00
__________________ | | SEC No.
8-11190 | Designated Examining Authority
DEA: FINRA | FYE
2023 | Month
Dec | | | | MEMBER NAME
FAMILY INVESTORS COMPANY INC
MAILING ADDRESS
P O BOX 100
265 SOUTH AVE
FANWOOD, NJ 07023-0100 | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) UNITED STATES By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy ✔ | FAMILY INVESTORS COMPANY INC | Susan Tomljanovic | | | |--------------------------------------------------------|--------------------------------------|--|--| | ______________________________________________________ | _______________________________ | | | | (Name of SIPC Member) | (Authorized Signatory) | | | | 1/24/2024 | susantomljanovic@familyinvestors.com | | | | ______________________________________________________ | _______________________________ | | | | (Date) | (e-mail address) | | | Completion of the "Authorized Signatory" line will be deemed a signature. *This form and the assessment payment are due 60 days after the end of the fiscal year.* Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.