# R.M. DUNCAN SECURITIES, INC. X-17A-5 (2022-08-26) — Broker-dealer annual report - Company: R.M. DUNCAN SECURITIES, INC. - Form: X-17A-5 - Filed: 2022-08-26 - Period: 2022-06-30 - Accession: 0000729162-22-000001 - CIK: 729162 - File #: 8-30534 - Type: Broker-dealer - Material weakness: No - Auditor: Tuttle & Bond, PLLC - Auditor location: Fredericksburg, TX - Contact: Romeo Portillo - Phone: 501-280-0298 - Email: rmduncan@rmds.biz - Website: rmds.biz - Signed by: Randall Duncan (President) Original filing: https://www.sec.gov/Archives/edgar/data/729162/000072916222000001/annual_report_2022_pub.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: # ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER 8-30534 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ TYPE OF REGISTRANT (check all applicable boxes): Broker-dealer Security-based swap dealer Major security-based swap participant Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (No. and Street) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Name) (Area Code Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Name if individual, state last, first, and middle name) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Address) (City) (State) (Zip Code) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Date of Registration with PCAOB)(if applicable) (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 07/01/21 06/30/22 R.M. DUNCAN SECURITIES, INC. 501 NORTH UNIVERSITY, SUITE 101 LITTLE ROCK AR 72205 Randall Duncan 501.280.0200 rmduncan@rmds.biz Tuttle & Bond, PLLC 2954 Goehmann Lane Fredericksburg TX 78624 03/19/2019 6543 accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(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 OMB control number. ![](_page_0_Picture_8.jpeg) {1}------------------------------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ R.M. Duncan Securities, Inc. Financial Statements and Supplemental Schedules Required by the U.S. Securities and Exchange Commission Including Independent Auditors Report Thereon for the Year-Ended June 30, 2022 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ## Opinion on The Financial Statements To Director and Shareholder of R.M. Duncan Securities, Inc. We have audited the accompanying statement of financial condition of R.M. Duncan Securities, Inc. (the "Company) as of June 30, 202 , and the related statements of operations, stockholder's equity, and cash flows for the year then ended, including the related notes (collectively referred to as financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 202 , 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. Companys financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting ## Basis for Opinion These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the 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 of these financial statements in accordance with 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 from material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error provides a reasonable basis for our opinion. 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 the audit ## Report on Supplementary Information The accompanying information contained in the Supplementary Information section has been subjected to audit procedures performed in conjunction with the audit of the Companys financial statement. The supplemental information is the responsibility of the Companys 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 Rule 17a-5 under the Securities Exchange Act of 1934 and, if applicable, under Regulation 1.10 under the Commodity Exchange Act. In our opinion, the information contained in the Supplementary Information section is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the R.M. Duncan Securities, Inc.s auditor since June 30, 2019. Texas August , 202 {4}------------------------------------------------ # Statement of Financial Condition As Of and for the Year Ended June 30, 2022 R.M. Duncan Securities, Inc. Financial Statements ## Assets | | R.M. Duncan Securities, Inc.
Financial
Statements
Statement of
Financial
Condition
As Of and
for the Year Ended
June 30, 2022 | | | |-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--| | Assets | | | | | Current Assets | | | | | | Cash | \$
82,938 | | | | Accounts Receivable | 16,086 | | | | Other Current Assets | 30,398 | | | | Secured Demand Note
Prepaid Expenses | 50,000
7,923 | | | Total Current Assets | | 187,345 | | | Fixed Assets | | | | | | Furniture and Equipment | 10,581 | | | | Less Accumulated Depreciation | (10,581) | | | Total Assets | | \$
-
187,345 | | | | | | | | Liabilities & Equity
Liabilities | | | | | | Accounts Payable | \$
385 | | | | Subordinated Loan (Secured Demand Note) | 50,000 | | | | Other Current Liabilities | 27,472
` | | | | | 77,857 | | | Total Liabilities | | 77,857 | | | Equity | | | | | | Additional Paid-in Capital | - | | | | Common Stock, No Par Value, 1,000 Shares | | | | | Authorized, 100 Shares Issued and Outstanding | 6,000 | | | | Retained Earnings (Deficit) | 103,488 | | | Total Equity | | 109,488 | | | Total Liabilities & Equity | | \$
187,345 | | | | The accompanying notes are an integral part of these financial statements. | | | | | | | | | | | 2 | | {5}------------------------------------------------ ## SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - a. BUSINESS ENTITY R.M. DUNCAN SECURITIES, INC. (THE COMPANY) IS A REGISTERED BROKER-DEALER WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY'S ACTIVITIES INCLUDE DIRECT PARTICIPATION PROGRAMS, PRIVATE PLACEMENTS, RETAILING OF CORPORATE SECURITIES OVER-THE-COUNTER, BROKERING OF U.S. GOVERNMENT SECURITIES, SOLICITING OF INSTITUTIONS AND RETAIL CLIENTS, AND WRITING OF PUTS AND CALLS AS A BROKER. THE COMPANY'S SECURITIES TRANSACTIONS ARE EXECUTED AND CUSTOMER ACCOUNTS ARE CARRIED ON A FULLY DISCLOSED BASIS WITH HILLTOP SECURITIES INCORPORATED. b. CASH AND CASH EQUIVALENTS - FOR THE PURPOSES OF THE STATEMENT OF CASH FLOWS, THE d. FURNITURE AND FIXTURES - FURNITURE AND FIXTURES ARE STATED AT COST. DEPRECIATION IS - COMPANY CONSIDERS ALL CERTIFICATES OF DEPOSIT AND ALL LIQUID CASH INVESTMENTS WITH ORIGINAL MATURITIES OF LESS THAN THREE MONTHS TO BE CASH EQUIVALENTS. - c. SECURITIES TRANSACTIONS PROPRIETARY SECURITIES TRANSACTIONS IN REGULAR WAY TRADES ARE RECORDED ON THE TRADE DATE, AS IF THEY HAD SETTLED. PROFIT AND LOSS ARISING FROM ALL SECURITIES TRANSACTIONS ENTERED INTO FOR THE ACCOUNT AND RISK OF THE COMPANY ARE RECORDED ON A TRADE DATE BASIS. CUSTOMERS' SECURITIES TRANSACTIONS AND THE RELATED COMMISSION INCOME AND EXPENSES ARE REPORTED ON A TRADE DATE BASIS. MARKETABLE SECURITIES ARE VALUED AT MARKET VALUE, AND SECURITIES NOT READILY MARKETABLE ARE VALUED AT FAIR VALUE AS DETERMINED BY MANAGEMENT. - PROVIDED USING THE STRAIGHT LINE METHOD OVER THE ESTIMATED USEFUL LIVES OF THE ASSETS. - e. INCOME TAXES THE COMPANY, WITH THE CONSENT OF ITS STOCKHOLDER, HAS ELECTED UNDER THE INTERNAL REVENUE CODE AND THE ARKANSAS STATE INCOME TAX LAWS TO BE AN S CORPORATION. IN LIEU OF CORPORATION INCOME TAXES, THE STOCKHOLDER OF AN S CORPORATION IS TAXED ON HIS/HER PROPORTIONATE SHARE OF THE COMPANY'S TAXABLE INCOME. THEREFORE, NO PROVISION OR LIABILITY FOR FEDERAL OR STATE INCOME TAXES HAS BEEN INCLUDED IN THE FINANCIAL STATEMENTS. THE FEDERAL INCOME TAX RETURNS OF THE COMPANY FOR 2020, 2019, and 2018 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. f. ACCOUNTS RECEIVABLE RECOGNITION OF BAD DEBT THE COMPANY CONSIDERS ACCOUNTS g. CLEARING DEPOSIT - THE COMPANY HAS PLACED A \$30,000 CLEARING DEPOSIT WITH HILLTOP h. USE OF ESTIMATES - THE PREPARATION OF FINANCIAL STATEMENTS IN CONFORMITY WITH - RECEIVABLE TO BE FULLY COLLECTIBLE. UNCOLLECTIBLE ACCOUNTS RECEIVABLE ARE CHARGED DIRECTLY AGAINST EARNINGS WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE. USE OF THIS METHOD DOES NOT RESULT IN A MATERIAL DIFFERENCE FROM THE VALUATION METHOD REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. - SECURITIES INCORPORATED WHICH IS FULLY REFUNDABLE TO THE COMPANY SHOULD IT CLOSE THE CLEARING ACCOUNT. - 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 REVENUES AND EXPENSES DURING THE REPORTING PERIOD. ACTUAL RESULTS COULD DIFFER FROM THOSE ESTIMATES. - i. CONCENTRATIONS OF CREDIT RISK FINANCIAL INSTRUMENTS THAT POTENTIALLY EXPOSE THE ORGANIZATION TO CONCENTRATIONS OF CREDIT RISK ARE CASH EQUIVALENTS. CASH EQUIVALENTS ARE MAINTAINED AT HIGH-QUALITY FINANCIAL INSTITUTIONS AND CREDIT EXPOSURE IS LIMITED TO ANY ONE INSTITUTION. THE ORGANIZATION HAS NOT EXPERIENCED ANY LOSSES ON ITS CASH EQUIVALENTS. THE COMPANY IS ENGAGED IN VARIOUS TRADING AND BROKERAGE ACTIVITIES IN WHICH COUNTERPARTIES PRIMARILY INCLUDE BROKER-DEALERS, BANKS, AND OTHER FINANCIAL INSTITUTIONS. IN THE EVENT COUNTERPARTIES DO NOT FULFILL THEIR OBLIGATIONS, THE COMPANY MAY BE EXPOSED TO RISK. THE RISK OF DEFAULT DEPENDS ON THE CREDITWORTHINESS OF THE COUNTERPARTY OR ISSUER OF THE INSTRUMENT. IT IS THE COMPANY'S POLICY TO REVIEW, AS NECESSARY, THE CREDIT STANDING OF EACH COUNTERPARTY. {6}------------------------------------------------ 1. RECEIVABLE FROM AND PAYABLES TO BROKER AND CLEARING HOUSE AMOUNTS RECEIVABLE FROM AND PAYABLE TO BROKER-DEALERS AND CLEARING HOUSE AT JUNE 30, 2022 CONSIST OF THE FOLLOWING: AT JUNE 30, 2022: RECEIVABLE PAYABLE PAYABLE TO CLEARING HOUSE \$ \$ 0 RECEIVABLE FROM CLEARING HOUSE 16,086 TOTAL \$ 16,086 THE COMPANY CLEARS CERTAIN OF ITS PROPRIETARY AND CUSTOMER TRANSACTIONS THROUGH ANOTHER BROKER- DEALER ON A FULLY DISCLOSED BASIS. THE AMOUNT PAYABLE TO THE CLEARING HOUSE RELATES TO THE AFOREMENTIONED TRANSACTIONS AND IS COLLATERALIZED BY SECURITIES OWNED BY THE COMPANY. 2. SUBORDINATED BORROWINGS THE BORROWINGS UNDER SUBORDINATION AGREEMENTS CONSISTED OF THE FOLLOWING: 4.00% NOTE PAYABLE TO REVA L. DUNCAN, PAYABLE IN ANNUAL INSTALLMENTS OF INTEREST, SECURED BY PLEDGED UNITED STATES TREASURY NOTES AS DEFINED IN THE COLLATERAL AGREEMENT, DUE ON JUNE 8, 2023. ## \$ 50.000 THE SUBORDINATED BORROWINGS ARE WITH REVA L. DUNCAN AND ARE AVAILABLE IN COMPUTING NET CAPITAL UNDER THE SEC'S UNIFORM NET CAPITAL RULE. TO THE EXTENT THAT SUCH BORROWINGS ARE REQUIRED FOR THE COMPANY'S CONTINUED COMPLIANCE WITH MINIMUM NET CAPITAL REQUIREMENTS, THEY MAY NOT BE REPAID. 3. LONG TERM DEBT ON MARCH 30, 2021 THE COMPANY RECEIVED LOAN PROCEEDS IN THE AMOUNT OF \$43,002 AND BEARS INTEREST AT A RATE OF 1% PER ANNUM UNDER THE PAYCHECK PROTECTION PROGRAM (PPP). THE PPP, ESTABLISHED AS PART OF THE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT (CARES ACT), PROVIDES FOR LOANS TO QUALIFYING BUSINESSES FOR AMOUNTS UP TO 2.5 TIMES OF THE AVERAGE MONTHLY PAYROLL EXPENSES OF THE QUALIFYING BUSINESS. THE LOANS AND ACCRUED INTEREST ARE FORGIVABLE AFTER EIGHT WEEKS AS LONG AS THE BORROWER USES THE LOAN PROCEEDS FOR ELEGIBLE PURPOSES, INCLUDING PAYROLL, BENEFITS, RENT AND UTILITIES, AND MAINTAINS ITS PAYROLL LEVELS. ON NOVEMBER 15, 2021, THE COMPANY OBTAINED FULL FORGIVENESS ON THE LOAN AND INTEREST DUE. THE FORGIVENESS OF THE LOAN AND INTEREST IS RECOGNIZED AS OTHER INCOME IN THE AMOUNT OF \$43,002. 4. NET CAPITAL REQUIREMENT THE COMPANY IS REQUIRED TO MAINTAIN MINIMUM NET CAPITAL AS DEFINED UNDER RULE 15c3-1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RELATED REGULATIONS. THE COMPANY USES THE AGGREGATE INDEBTEDNESS METHOD WHICH REQUIRES A BROKER-DEALER TO MAINTAIN MINIMUM NET CAPITAL OF 6-2/3% OF AGGREGATE INDEBTEDNESS OR \$100,000, WHICHEVER IS GREATER, AND ALSO REQUIRES THAT THE RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL NOT EXCEED 15 TO 1. NET CAPITAL (AS DEFINED) AT JUNE 30, 2022 WAS \$151,565, AND THE COMPANY'S AGGREGATE INDEBTEDNESS TO NET CAPITAL RATIO WAS .1838 TO 1. {7}------------------------------------------------ ## RELATED PARTY TRANSACTIONS THE COMPANY RENTED OFFICE SPACE FROM R.M. DUNCAN CONSULTING GROUP, LLC, OF WHICH THE GENERAL PARTNER IS ALSO THE PRESIDENT OF R.M. DUNCAN SECURITIES, INC.. THE COMPANY PAID \$29,628 IN 2022 FOR RENT. THE COMPANY EARNED NO GROSS COMMISSIONS ON TRADES EXECUTED FOR RELATIVES OF OFFICERS OF THE CORPORATION AND OTHER RELATED ENTITIES. ONLY TICKET CHARGES WERE COLLECTED FOR SUCH TRANSACTIONS. THE PRESIDENT / SHAREHOLDER OF R.M. DUNCAN SECURITIES, INC. SERVES AS THE MANAGER OF EMINENCE ENERGY RESOURCES, LLC WHICH OWNS A 40% INTEREST OF WARRIOR EXPLORATION & PRODUCTION, LLC. DURING 202 THE COMPANY RECEIVED COMMISSIONS OF APPROXIMATELY \$60,000 FOR THE PRIVATE PLACEMENT OF DEBT SECURITIES FROM WARRIOR EXPLORATION & PRODUCTION, LLC. 7. CONTINGENCIES 8. RENT 9. MAJOR CUSTOMER COMMITMENTS AS OF JUNE 30, 2022, THE COMPANY HAD NO OTHER COMMITMENTS OR CONTINGENCIES. THERE ARE CURRENTLY NO ASSERTED CLAIMS OR LEGAL PROCEEDINGS AGAINST THE COMPANY, HOWEVER, THE NATURE OF THE COMPANYS BUSINESS SUBJECTS IT TO VARIOUS CLAIMS, REGULATORY EXAMINATIONS, AND OTHER PROCEEDINGS IN THE ORDINARY COURSE OF BUSINESS. THE ULTIMATE OUTCOME OF ANY SUCH ACTION AGAINST THE COMPANY COULD HAVE AN ADVERSE IMPACT ON THE FINANCIAL CONDITION, RESULTS OF OPERATIONS, OR CASH FLOWS OF THE COMPANY. 10. REVENUE RECOGNITION THE RENT EXPENSE FOR THE YEAR WAS \$29,628; THE AMOUNT PAID WAS FOR THE LEASE ON THE OFFICE SPACE AND PARKING. REVENUE FROM TWO CUSTOMERS APPROXIMATED \$218,611 OR 61.65% OF TOTAL REVENUES FOR THE YEAR ENDED JUNE 30, 2022. THE COMPANY ADOPTED ASU 2014-09, REVENUE FROM CONTRACTS WITH CUSTOMERS, (CODIFIED IN ASC 606). THE COMPANY RECOGNIZES REVENUE WHERE SERVICES ARE RENDERED. REVENUE IS RECOGNIZED BASED ON THE AMOUNT OF CONSIDERATION THAT MANAGEMENT EXPECTS TO RECEIVE IN EXCHANGE FOR THESE SERVICES IN ACCORDANCE WITH THE TERMS OF THE CONTRACT WITH THE CLIENT. TO DETERMINE THE AMOUNT AND TIMING OF REVENUE RECOGNITION, THE COMPANY MUST (1) INDENTIFY THE CONTRACT WITH THE CLIENT, (2) IDENTIFY THE PERFORMANCE OBLIGATIONS IN THE CONTRACT, (3) DETERMINE THE TRANSACTION PRICE, (4) ALLOCATE THE TRANSACTION PRICE TO THE PERFORMANCE OBLIGATIONS IN THE CONTRACT, AND (5) RECOGNIZE REVENUE WHEN THE COMPANY SATISFIES A PERFORMANCE OBLIGATION. REVENUE FROM CONTRACTS WITH CUSTOMERS INCLUDES COMMISSIONS FROM RETAIL, INSTITUTIONAL MUTUAL FUNDS AND BROKER/DEALER CLIENTS, AND IS RECOGNIZED WHEN PROMISED GOODS OR SERVICES ARE DELIVERED TO THE CLIENT IN AN AMOUNT THE COMPANY EXPECTS TO RECEIVE IN EXCHANGE FOR THOSE GOODS OR SERVICES (I.E., THE TRANSACTION PRICE). THE RECOGNITION AND MEASUREMENT OF REVENUE IS BASED ON THE ASSESSMENT OF INDIVIDUAL CONTRACT TERMS. 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 UNERLYING 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. THERE WERE NO UNSATISFIED PERFORMANCE OGLIGATIONS AF OF JUNE 30, 2022. {8}------------------------------------------------ ## RECENT ACCOUNTING PRONOUNCEMENTS IN FEBRUARY 2016, THE FASB ESTABLISHED TOPIC 842, LEASES, BY ISSUING ACCOUNTING STANDARDS UPDATE NO. 2016-02, WHICH REQUIRES LESSORS TO CLASSIFY LEASES AS SALES-TYPE, DIRECT FINANCING, OR OPERATING LEASE. TOPIC 842 WAS SUBSEQUENTLY AMENDED BY ASU NO. 2018-01, LAND EASEMENT PRACTICAL EXPEDIENT FOR TRANSITION TO TOPIC 842; ASU NO. 2018-10, CODIFICATION IMPROVEMENTS TO TOPIC 842; AND ASU NO. 2018-11, TARGETED IMPROVEMENTS. THE NEW STANDARD IS EFFECTIVE FOR THE COMPANY ON JANUARY 1, 2022, WITH EARLY ADOPTION PERMITTED. THE COMPANY EXPECTS TO ADOPT THE NEW STANDARD ON ITS EFFECTIVE DATE. A MODIFIED RETROSPECTIVE TRANSITION APPROACH IS REQUIRED, APPLYING THE NEW STANDARD TO ALL LEASES EXISTING AT THE DATE OF INITIAL APPLICATION. AN ENTITY MAY CHOOSE TO USE EITHER (1) ITS EFFECTIVE DATE OR (2) THE BEGINNING OF THE EARLIEST COMPARATIVE PERIOD PRESENTED IN THE FINANCIAL STATEMENTS AS ITS DATE OF INITIAL APPLICATION. IF AN ENTITY CHOOSES THE SECOND OPTION, THE TRANSITION REQUIREMENTS FOR EXISTING LEASES ALSO APPLY TO LEASES ENTERED INTO BETWEEN THE DATE OF INITIAL APPLICATION AND THE EFFECTIVE DATE. THE ENTITY MUST ALSO RECAST ITS COMPARATIVE PERIOD FINANCIAL STATEMENTS AND PROVIDE THE DISCLOSURES REQUIRED BY THE NEW STANDARD FOR THE COMPARATIVE PERIODS. THE COMPANY EXPECTS TO ADOPT THE NEW STANDARD ON JANUARY 1, 2022 AND USE THE EFFECTIVE DATE AS OUR DATE OF INITIAL APPLICATION. CONSEQUENTLY, FINANCIAL INFORMATION WILL NOT BE UPDATED AND THE DISCLOSURES REQUIRED UNDER THE NEW STANDARD WILL NOT BE PROVIDED FOR DATES AND PERIODS BEFORE JANUARY 1, 2022. THE NEW STANDARD PROVIDES A NUMBER OF OPTIONAL PRACTICAL EXPEDIENTS IN TRANSITION. THE COMPANY EXPECTS TO ELECT THE PACKAGE OF PRACTICAL EXPEDIENTS, WHICH PERMITS US NOT TO REASSESS UNDER THE NEW STANDARD OUR PRIOR CONCLUSIONS ABOUT LEASE IDENTIFICATION, LEASE CLASSIFICATION AND INITIAL DIRECT COSTS. THE COMPANY DOES NOT EXPECT TO ELECT THE USE-OF-HINDSIGHT OR THE PRACTICAL EXPEDIENT PERTAINING TO LAND EASEMENTS; THE LATTER NOT BEING APPLICABLE TO US. THE COMPANY CONTINUES TO EVALUATE CERTAIN ASPECTS OF THE NEW STANDARD, AND DOES NOT EXPECT THE NEW STANDARD TO HAVE A MATERIAL EFFECT ON THE FINANCIAL STATEMENTS OR HAVE A SIGNIFICANT CHANGE IN LEASING ACTIVITIES BETWEEN NOW AND ADOPTION. ## SUBSEQUENT EVENTS THE COMPANY EVALUATED THE EVENTS AND TRANSACTIONS SUBSEQUENT TO ITS JUNE 30, 2022 BALANCE SHEET DATE IN ACCORDANCE WITH FASB ASC 855-10-50 AND DETERMINED THAT THERE WERE NO SIGNIFICANT EVENTS TO REPORT THROUGH AUGUST , 2022 WHICH IS THE DATE THE COMPANY'S FINANCIAL STATEMENTS WERE AVAILABLE FOR ISSUE. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.