# PAPAMARKOU WELLNER & CO., INC. X-17A-5 (2025-02-25) — Broker-dealer annual report
- Company: PAPAMARKOU WELLNER & CO., INC.
- Form: X-17A-5
- Filed: 2025-02-25
- Period: 2024-12-31
- Accession: 0000704897-25-000002
- CIK: 704897
- File #: 8-29033
- Type: Broker-dealer
- Material weakness: No
- Auditor: EisnerAmper LLP
- Auditor location: New York, NY
- Contact: Dmitriy Rutitskiy
- Phone: 2127514422
- Email: drutitskiy@dfppartners.com
- Website: dfppartners.com
- Signed by: Dmitriy Rutitskiy (Chief Financial Officer)
Original filing: https://www.sec.gov/Archives/edgar/data/704897/000070489725000002/PapamarkouPublic2024.pdf
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**UNITED STATES** 0MB Number: 3235-0123 **SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
0MB APPROVAL Expires: November 30, 2026 Estimated average burden hours per response ... 12.00 SEC FILE NUMBER **8** - **52806**
## **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|----------------------------|---------------------------------------------------|--|--|--|
| REPORT FOR THE PERIOD BEGINNING | --------------
01/01/2024
MM/DD /YYYY | AND ENDING | ------------
12/31/2024
MM/DD/YYYY | | | |
| | A. REGISTRANT IDENTIFICATION | | | | | |
| NAME OF FIRM: | Papamarkou Wellner & Co., Inc. | | | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
X Broker-dealer
□ Security-based swap dealer
□ Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | □ Major security-based swap participant | | | | | |
| | 430 Park Avenue -17th Floor
(No. and Street) | | | | | |
| New York | NY | | 10022 | | | |
| (City) | (State) | | (Zip Code) | | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING
Dmitriy Rutitskiy | 212-751-4422 | drutitskiy@dfppartners.com | | | | |
| (Name) | (Area Code -- Telephone No.) | (Email Address) | | | | |
| | B. ACCOUNTANT IDENTIFICATION | | | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | |
| | EisnerAmper LLP | | | | | |
| | (Name- if individual, state last, first, and middle name) | | | | | |
| 733 Third Avenue | New York | NY | 10017 | | | |
| (Address) | (City) | (State) | (Zip Code) | | | |
| 37893
(Date of Registration with PCAOB)(if applicable) | | | 274
(PCAOB Registration Number, if applicable) | | | |
| | | | | | | |
| | FOR OFFICIAL USE ONLY | | | | | |
| | | | | | | |
*\*Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.l 7a-5(e)(l)(ii),* if *applicable.*
*Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.*
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#### **OATH OR AFFIRMATION**
| I, | Dmitriy Rutitskiy | | , swear (or affirm) that, to the best ofmy knowledge and belief, the financial report pertaining to |
|-----|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| | the firm of | Papamarkou Wellner & Co., Inc. | , as of
December 31 , 2024 |
| | | | 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 custome | ~ |
| | | | |
| | | MARYROSE MERCADO
NOTARY PUBLIC, STAlE OF NEW YORK
Registration No. 01 ME6423025
2~
Qualified In Queens County _ 11 ~
Commission Expires October 4, | Chief Financial Officer
Title |
| | | | |
| | This filing** contains (ch{ | | |
| !Kl | (a) Statement of financial condition. | | |
| !Kl | | (b) Notes to consolidated statement of financial condition. | D (c) Statement of income (loss) or, ifthere is other comprehensive income in the period(s) presented, a statement of |
| | | comprehensive income (as defined in & 210.1-02 of Regulation S-X). | |
| | D ( d) Statement of cash flows. | | |
| | | D ( e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | |
| | | D (f) Statement of changes in liabilities subordinated to claims of creditors. | |
| | D (g) Notes to consolidated financial statements. | | |
| | | D (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240. lSa-l, as applicable. | |
| | | D (i) Computation of tangible net worth under 17 CFR 240. lSa-2. | |
| | | D (i) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. l 5c3-3 | |
| | | | D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240. l 5c3-3 or |
| | | Exhibit A to 17 CFR 240.lSa-4, as applicable.
D (I) Computation for Determination of PAB Requirements under Exhibit A to & 240.15c3-3 | |
| | | D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | |
| | | D (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.lSa-4, as applicable. | |
| | | | D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net |
| | | | worth under 17 CFR 240.15c3-l, 17 CFR 240.lSa-l, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 |
| | | | CFR 240.15c3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences |
| | exist. | | |
| | | D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | |
| !Kl | | | (q) Oath or affirmation in accordance with 17 CFR 240.l 7a-5, 17 CFR 240.l 7a-12, or 17 CFR 240.lSa-7, as applicable. |
| | | D (r) Compliance report in accordance with 17 CFR240.17a-5 or 17 CFR240.18a-7, as applicable. | |
| | | D (s) Exemption report in accordance with 17 CFR 240. l 7a-5 or 17 CFR 240.lSa-7, as applicable. | |
| !Kl | | (t) Independent public accountant's report based on an examination of the statement of financial condition. | |
| | | | D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 |
| | | CFR 240. l 7a-5, 17 CFR 240.1 Sa-7, or 17 CFR 240. l 7a-12, as applicable. | D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 |
| | | CFR 240.l 7a-5 or 17 CFR 240.lSa-7, as applicable. | |
| | | | D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240. l 7a-5 or 17 |
| | CFR 240.lSa-7, as applicable. | | |
| | | | D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.l 7a-12, |
| | as applicable. | | |
| | | | D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or |
| | | a statement that no material inadequacies exist, under 17 CFR 240.l 7a-12(k). | |
| | | | D (z) Other: ______________________________
_ |
*\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.l 7a-5(e)(3) or 17 CFR 240.l 8a-7(d)(2), as* applicable.
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# **Papamarkou Wellner & Co., Inc.**
Statement of Financial Condition (With Report of Independent Registered Public Accounting Firm) Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 December 31, 2024
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## **Papamarkou Wellner** & **Co., Inc.**
### **CONTENTS**
| | Page(s) |
|------------------------------------------------------------------------------|---------|
| Report of Independent Registered Public Accounting Firm 1 | |
| Financial Statement | |
| Statement of Financial Condition
| 2 |
| Notes to the Statement of Financial Condition 3 - | 8 |
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#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Stockholders of Papamarkou Wellner & Co., Inc.
#### **Opinion on the Financial Statements**
We have audited the accompanying statement of financial condition of Papamarkou Wellner & Co., Inc. (the "Company") as of December 31, 2024, 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 the Company as of December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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.
We have served as the Company's auditor since 2015.
**EISNERAMPER LLP** New York, New York February **25, 2025**
"EisnerAmper" is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC and its subsidiary entities provide professional services. EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services, and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are not licensed CPA firms.
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## **Papamarkou Wellner & Co., Inc. Statement of Financial Condition As of December 31, 2024**
| ASSETS | |
|-------------------------------------------------|------------------|
| Cash and cash equivalents | \$
2,564,043 |
| Receivable from clearing broker | 207,392 |
| Fees receivable | 4,650,331 |
| Other assets | 89,412 |
| Total assets | \$
7,511 ,178 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| Liabilities | |
| Accounts payable and accrued expenses | \$
672,678 |
| Due to affiliate | 14,386 |
| Deferred income tax payable | 161 ,071 |
| Total liabilities | 848,135 |
| Stockholders' equity | |
| Common stock , \$0.01 par value, authorized and | |
| issued 10,000 shares, outstanding 9,000 shares | 90 |
| Additional paid-in capital | 575,317 |
| Retained earnings | 6,112,636 |
| | 6,688,043 |
| Less: treasury stock, 1,000 shares at cost | {25,000) |
| Total stockholders' equity | 6,663,043 |
| Total liabilities and stockholders' equity | \$
7,511 ,178 |
The accompanying notes are an integral part of the statement of financial condition.
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#### **1. Organization and nature of business**
Papamarkou Wellner & Co., Inc. (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is also a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company's operations consist primarily of engaging in agency and principal transactions and private placement of securities as an introducing broker.
#### **2. Summary of Significant Accounting Policies**
#### Basis of Presentation
The Company's statement of financial condition is presented in conformity with accounting principles generally accepted in the United States of America ("GAAP").
#### Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of cash deposits in a money market fund with a clearing organization.
#### Property and Equipment
Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the estimated useful life of 5 years for all assets. Maintenance and repair costs are expensed as incurred. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable, and recognizes an impairment loss when it is probable that the estimated cash flows are less than the carrying value of the asset.
#### Revenue Recognition
Revenue from Contracts with Customers ("ASC Topic 606") requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when the entity satisfies a performance obligation.
**Placement fees:** The Company enters into arrangements with funds to solicit investors. The Company may receive placement fees up front, or over time. The Company believes that its private placement fee obligation for fixed amounts are fulfilled once the investor's capital is placed and recognized on the trade date, while private placement performance fees amounts are variable fees based on the funds performance and recognized over time. Due to the uncertainty of the future value of the funds , as well as potential for investor withdrawal , variable fees are recognized when the market values are determinable, usually monthly or quarterly.
**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 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 price is agreed upon and the risks and rewards of ownership have been transferred to/from the customer.
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## **Papamarkou Wellner & Co., Inc. Notes to Statement of Financial Condition December 31, 2024**
#### Revenue Recognition (continued)
**Interest:** Interest income is derived from rebates of interest charged to customers on margin balances extended by the Company's clearing broker. Pursuant to a clearing agreement, the Company receives the excess of interest income charged to customers for margin balances above stated tiers. For margin balances, customers negotiate a rate with the clearing firm. For amounts negotiated in excess of the clearing firm's cost of funds, the Company shares in that excess interest charged to customers. The Company believes its performance obligation is satisfied on the trade date because that is when the interest is calculated by the clearing broker.
#### Use of Estimates
The preparation of the statement of financial condition is in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statement.
#### Fees Receivable
Fees receivable, carried at amortized cost, is an estimate based on information provided by the fund managers. Any difference between the actual amounts received in a subsequent period and the amounts recorded as a receivable at the end of the prior period are recorded as an adjustment to revenue in the subsequent period.
#### Receivable from Clearing Broker
The receivable from clearing broker arise in the ordinary course of business and are pursuant to clearing agreements with the clearing firm and includes cash and net amounts receivable for securities transactions that have not settled.
#### Allowance for Credit Losses
The Company follows ASC Topic 326, Financial Instruments- Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial assets as of the reporting date.
The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including fees receivable and receivable from clearing broker utilizing the CECL framework. The adoption of ASC 326 had no impact on the Company's opening stockholders' equity. The Company's expectation is that the credit risk associated with fees receivables and receivable from clearing broker is that any client or financial institution with which it conducts business with is unable to fulfill its contractual obligations. Management monitors the credit risk and considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. Currently, there is not a foreseeable expectation of an event or change which could result in these receivables being unpaid. The Company has no allowance for credit losses as of and for the year ended December 31 , 2024.
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#### Income Taxes
The Company has elected to be taxed under applicable provisions of Subchapter S of the Internal Revenue Code and similar state provisions. Under those provisions, the Company does not pay federal and state taxes on its corporate income. Instead, the stockholders of the Company are individually liable for such taxes. The Company is, however, subject to New York City income taxes. The amount of current and deferred taxes payable or refundable is recognized as of the date of the statement of financial condition utilizing currently enacted tax laws and rates. The provision for city income taxes provided is based on pretax income for financial accounting purposes.
The Company follows an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce the deferred income tax assets to the amount expected to be realized.
In accordance with **GAAP,** the Company is required to determine whether a tax position of the Company is more-likely-than-not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized could result in the Company recording a tax liability that would reduce stockholders' equity. This policy also provides guidance on thresholds, measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different entities. At December 31, 2024, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. Management's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. Accrued interest and penalties related to income tax matters are classified as a component of income tax expense.
The Company files its income tax returns in the U.S. federal and various state and local jurisdictions. Any potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, state and local tax laws. The Company's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.
#### Valuation of Investments at Fair Value - Definition and Hierarchy
In accordance with GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Company uses various valuation approaches. In accordance with **GAAP,** a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
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#### Valuation of Investments at Fair Value - Definition and Hierarchy (continued)
The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.
Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation , those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls , is determined based on the lowest level input that is significant to the fair value measurement.
Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.
#### Segment reporting
The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, where the Company's operations consist primarily of engaging in agency and principal transactions and private placement of securities as an introducing broker. The Company has identified its CEO and President, CCO, and CFO as the chief operating decision makers ("CODM"), who use net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 4), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. The Company's operations and offices are located in the United States. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies.
The measure of segment assets is reported on the statement of financial condition as total assets at December 31 , 2024.
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#### **3. Income Taxes**
The deferred income tax payable as of December 31 , 2024 was approximately \$161 ,000 and represents the tax effect of temporary difference between the basis of assets and liabilities for income tax and financial reporting purposes. The Company utilizes the cash basis method of accounting for income tax purposes and the accrual basis for financial reporting purposes. The components of deferred income tax payable consist of the taxes applicable to the fees receivable netted against accounts payable and accrued expenses at December 31 , 2024.
#### **4. Net capital requirement**
The Company, as a member of FINRA, is subject to the SEC Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital , both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31 , 2024, the Company's net capital was approximately \$2,590,000, which was approximately \$2,540,000 in excess of its minimum net capital requirement of approximately \$50,000.
#### **5. Off-balance sheet risk**
Pursuant to a clearance agreement, the Company introduces all of its securities transactions to a clearing broker on a fully-disclosed basis. All of the customers' money balances and long and short security positions are carried on the books of the clearing broker. In accordance with the clearance agreement, the Company has agreed to indemnify the clearing broker for losses, if any, which the clearing broker may sustain from carrying securities transactions introduced by the Company. In accordance with industry practice and regulatory requirements , the Company and the clearing broker monitor collateral on the customers' accounts.
In addition, the receivable from the clearing broker, for commission income and interest sharing income, net of brokerage fees , is pursuant to this clearing agreement.
#### **6. Concentrations of credit risk**
In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to off balance sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss.
The Company maintains its cash balances in various financial institutions which at times may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. Management monitors the financial condition of such financial institutions and does not anticipate any losses from these counterparties.
As of December 31 , 2024, fees receivable from a single placement fee client were approximately \$3,962,000.
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#### **7. Fair value measurements**
The Company's assets recorded at fair value have been categorized based upon a fair value hierarchy. See Note 2 for a discussion of the Company's accounting policies.
The following table presents information about the Company's assets measured at fair value as of December 31 , 2024:
| Assets (at fair value) | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | Significant
Other
Observable
Inputs (Level 2) | Significant
Unobservable
Inputs (Level 3) | Balance as of
December 31 ,
2024 |
|------------------------|----------------------------------------------------------------------------|--------------------------------------------------------|-------------------------------------------------|----------------------------------------|
| Cash equivalent | \$
2,066,538 | \$ | \$ | \$
2,066,538 |
The fair value of the Company's cash equivalents held in the money market fund are determined through market, observable and corroborated sources.
At December 31 , 2024, the carrying value of the Company's financial instruments, such as, receivable from clearing broker, fees receivable, other assets, accounts payable, accrued expenses, and due to affiliate approximate their fair values due to the nature of their short term maturities and are categorized as Level 2 assets and liabilities.
#### **8. Related party transactions**
The Company receives commission income from numerous customers' trades placed by investment advisors. Some customers have been referred to these investment advisors by Papamarkou Wellner Asset Management, Inc. (the "Affiliate").
Effective January 1, 2011 , the Company is operating under an Administrative Services Agreement (the "Agreement") with the Affiliate. This Agreement was amended on January 1, 2015 to allocate all expenses between the Company and the Affiliate based on the percentage of revenues earned by each entity during the prior year. As of December 31 , 2024, there is a net balance due from the Affiliate of approximately \$14,000 based on shared resources under the Agreement.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.