# HIGHLANDER CAPITAL GROUP, INC. X-17A-5 (2023-03-30) — Broker-dealer annual report - Company: HIGHLANDER CAPITAL GROUP, INC. - Form: X-17A-5 - Filed: 2023-03-30 - Period: 2022-12-31 - Accession: 0000808761-23-000001 - CIK: 808761 - File #: 8-37169 - Type: Broker-dealer - Material weakness: No - Auditor: Meisel, Tuteur & Lewis, P.C. - Auditor location: Roseland, NJ - Contact: Doug MacWright - Phone: 973-718-3510 - Email: dmacwright@highlandercapital.com - Website: highlandercapital.com - Signed by: Douglas MacWright (President & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/808761/000080876123000001/HCGPublic22.pdf --- {0}------------------------------------------------ CONSOLIDATED FINANCIAL STATEMENT DECEMBER 31, 2022 PUBLIC DOCUMENT {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. **20549** # **ANNUAL REPORTS FORM X-17A-S PART** Ill | OMBAP 0 | | |--------------------------|--| | 0MB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | hours per response: 12 | | | | | SEC FILE NUMBER 8-37169 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 | __
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MM/00/YY | | |---------------------------------|----------------------------------------|------------|--------------------------------------------|--| | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Highlander Capital Group, Inc. TYPE OF REGISTRANT (check all applicable boxes): !Kl Broker-dealer □ Security-based swap dealer D Check here If respondent Is also an OTC derivatives dealer □ Major security-based swap participant | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.) | | | |----------------------------------------------------------------------|--|--| |----------------------------------------------------------------------|--|--| | 535 Millburn Avenue | | | | |--------------------------------------------------|---------------------------------------------------------------------------|-----------------|--------------------------------------------| | | (No. and Street) | | | | Short Hills | NJ | | 07078 | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Douglas MacWright | 973-718-3510 | | dmacwright@highlandercapital.com | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | Meisel, Tuteur & Lewis, P.C. | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | (Name - If Individual, state last, first, and middle name) | | | | 101 Eisenhower Parkway | Roseland | NJ | 07068 | | (Address) | (City} | (State) | (Zip Code) | | 09/29/2009 | | 3861 | | | (Date of Registration with PCAOB)(lf 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 accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(1)(il}, 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, {2}------------------------------------------------ #### OATH **OR AFFIRMATION** | Douglas MacWright
I, | • swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|---------| | financial report pertaining to the firm of | Highlander Capital Group, Inc. | • as of | | December 31 | 2 022 • 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. This **filing•• contains (check all applicable boxes):** - IXI (a) Statement of financial condition. - fi1 (b) Notes to consolidated statement of financial condition. - □ (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). - 0 (d) Statement of cash flows. - 0 (e) Statement of changes in stockholders· or partners' or sole proprietor's equity. - □ (f) Statement of changes in llablllties subordinated to claims of creditors. - 0 (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-1, as applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - 0 (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.lSa-4, as applicable. - □ (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 240.1Sc3-3. - 0 (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.lBa-4, as applicable. - 0 (o) Reconciliations, Including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.lBa-1, or 17 CFR 240.lSa-2, as appllcable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.lSa-4, as applicable, If material differences exist, or a statement that no material differences exist. - 0 (p) Summary of financial data for subsidiaries not consolidated In the statement of financial condition. - IXl (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - □ (r) Compllance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - Iii (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - 0 (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - □ (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. - 0 (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - □ (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 240.17a-12(k). □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - ••ro request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e)(3} or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ # CONSOLIDATED FINANCIAL STATEMENT DECEMBER 31, 2022 # CONTENTS | Report of Independent Public Accounting Firm | | |-----------------------------------------------|--------| | Consolidated Financial Statement: | | | Consolidated Statement of Financial Condition | 2 | | Notes to Consolidated Financial Statement | 3 - 10 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Certified Public Accountants Management Consultants #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Highlander Capital Group, Inc. and Subsidiary ### **Opinion on the Consolidated Financial Statement** We have audited the accompanying consolidated statement of financial condition of Highlander Capital Group, Inc. and Subsidiary (the "Company'') as of December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statement"). In our opinion, the consolidated financial statement presents fairly, in all material respects, the financial position of Highlander Capital Group, Inc. and Subsidiary as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This consolidated financial statement is the responsibility of Highlander Capital Group, Inc. and Subsidiary's management. Our responsibility is to express an opinion on Highlander Capital Group, Inc. and Subsidiary's consolidated financial statement 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 Highlander Capital Group, Inc. and Subsidiary 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 consolidated financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statement, 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 consolidated 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 consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Highlander Capital Group, Inc. and Subsidiary's auditor since 2016. Roseland, New Jersey March 29, 2023 {5}------------------------------------------------ # HIGHLANDER CAPITAL GROUP INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION # DECEMBER 31, 2022 ## ASSETS | Cash
Receivables from clearing broker
Deposit with clearing broker
Prepaid expenses and other assets
Property and equipment, less accumulated depreciation & amortization of \$309,923
Investment in affiliate, at fair value (cost basis of \$0)
TOTAL ASSETS | ಕ್ಕಿ
A | 769
30,837
100,000
19,583
22,429
16,327
189,945 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------| | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable and accrued expenses | ತಿರು | 36,803 | | TOTAL LIABILITIES | | 36,803 | | COMMITMENTS AND CONTINGENCIES | | | | Stockholders' equity
Common stock - Class A voting, no par value,
1,000 shares authorized, 160 shares issued, 158 shares outstanding
Common stock - Class B nonvoting, no par value, | | 1,600 | | 900 shares authorized, none issued or outstanding
Additional paid in capital
Accumulated deficit
Treasury stock, 2 shares at cost | | 1,156,399
(999,857)
(5,000) | | TOTAL STOCKHOLDERS' EQUITY | | 153,142 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | ಿತ | 189,945 | The accompanying notes are an integral part of these consolidated financial statements. {6}------------------------------------------------ NOTES TO CONSOLIDATED FINANCIAL STATEMENT DECEMBER 31, 2022 #### 1. ORGANIZATION AND NATURE OF BUSINESS Highlander Capital Group, Inc. ("HCG Inc."), formerly FIA Capital Group, Inc., and subsidiary (collectively referred to as "the Company"), was incorporated in the state of New Jersey on July 9, 1968 and is effectively a 100% owned by its President both directly and through two related LLC's. HCG Inc. owns 100% of the member's capital of its only subsidiary Highlander Realty Advisors, LLC ("HRA LLC"), a limited liability company organized under the laws of the state of New Jersey on May 19, 2006. The Company has offices in Short Hills, New Jersey. The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company was granted registration as a broker dealer on April 22, 1987. The two primary sources of income are proprietary trading on the Company's behalf, and commissions earned from retail trading. The Company does not carry customer accounts and accordingly is exempt from the Securities and Exchange Commission's Rule 15c-3-3 (the customer protection rule) pursuant to provision K(2)(ii) of such rule. The Company participates in a variety of financial and administrative transactions with related parties and affiliates. Though generally at commercial rates, it is possible that because of these relationships the terms of some of these transactions are not the same as those that would result from transactions among wholly unrelated parties. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Principles of Consolidation The consolidated financial statement includes the accounts of Highlander Capital Group, Inc. and its subsidiary Highlander Realty Advisors LLC. All significant intercompany transactions and balances have been eliminated. #### Basis of Financial Statement Presentation The accompanying consolidated financial statement is prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The accounting policies and reportung practices of the Company conform to the predominant practices in the broker-dealer industry. #### Management Estimates The preparation of consolidated financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Government and Other Regulation A broker-dealer of securities business is subject to significant regulation by various governmental agencies and self-regulatory organizations. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting its operations in accordance with applicable requirements of these organizations. As a registered broker-dealer, the Company is subject to the Securities and Exchange Commission's net capital rule (Rule 15c3-1) which requires the Company maintain a minimum net capital, as defined. {7}------------------------------------------------ %&\*)\*&&%)&# \* %% #)\*\*\$%\* \$( #### **"\$!' 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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Cash and Cash Equivalents For purposes of presentation on the statement of financial condition, the Company considers highly liquid instruments, with original maturities of three months or less that are not held for sale in the ordinary course of business, to be cash and cash equivalents. Cash and cash equivalent balances may, at a limited number of banks and financial institutions, periodically exceed Federal Depository Insurance Corporation ("FDIC") insurance coverage. The Company believes it mitigates this risk by investing in or through major financial institutions and primarily in funds that are insured by the United States federal government. ### Clearing Arrangements The Company has an agreement with RBC Correspondent Services ("RBC"), a division of RBC Capital Markets LLC, to provide execution and clearing services on behalf of its customers on a fully disclosed basis. All customer records and accounts are maintained by RBC. RBC is a member of various stock exchanges and is subject to the rules and regulations of such organizations as well as those of the Securities and Exchange Commission. Receivables from the clearing broker include amounts due on proprietary unsettled cash and margin transactions and commissions earned. As of December 31, 2022, the Company had a clearing deposit with RBC in the amount of \$100,000. #### Other Assets Other assets are comprised of receivables generated in the normal course of business, such as prepad expenses, deposits, and other operating assets. #### Securities Transactions All securities transactions are recorded on a trade date basis. #### Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed over ther estimated useful lives, 3 to 7 years, on the straight-line method. Leasehold improvements are amortized using the straight-line method over either the economic useful life of the improvement or the lease term, whichever is shorter. Following the acquisition of any long-lived asset, the Company continually evaluates whether later events and circumstances have occurred that indicate the remaining useful life of the long-lived asset may warrant revision or that the remaining balance of the long-lived asset may not be recoverable. # Fair Value of Other Assets and Liabilities The carrying amounts reported on the statement of financial condition for cash, if any, approximate its fair value based on the short-term maturity and the daily pricing mechanisms for these instruments. Other assets and liabilities with short and intermediate-term maturities and defined settlement amounts, including receivables, payables, and accrued liabilities are reported at their contractual amounts, which approximate fair value. {9}------------------------------------------------ NOTES TO CONSOLIDATED FINANCIAL STATEMENT DECEMBER 31, 2022 # 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Investment Valuation The Company follows the guidance in the Fair Value Measurement and Disclosure topic of the FASB Accounting Standards Codification (ASC 820). Under this guidance, 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. ASC 820 establishes a fair value hierarchy for inputs 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. 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 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 investment and are affected by a wide variety of factors including, the type of investment, whether the investment 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 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 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 enturety 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 entityspecific measure. Therefore, even when market assumptions are not readly 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 investments. This condition could cause an investment to be reclassified to a lower level within the fair value hierarchy. {10}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{11}------------------------------------------------ NOTES TO CONSOLIDATED FINANCIAL STATEMENT DECEMBER 31, 2022 # 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Recently Issued Accounting Pronouncements Recently issued accounting pronouncements that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. # 3. PROPERTY AND EQUIPMENT Property and Equipment at December 31, 2022 consists of the following: | Computer equipment | ಿರ | 185,881 | |-------------------------------------------------|----|---------| | Furniture and fixtures | | 95,474 | | Leasehold improvements | | 50.997 | | | | 332,352 | | Less: accumulated depreciation and amortization | | 309.923 | | | | 22,429 | Total depreciation and amortization expense charged to operations amounted to \$3,402 for the year ended December 31, 2022. # 4. TREASURY STOCK In December 2012, the Board of Directors authorized the Company to repurchase 2 shares of Class A - voting common stock from a minority stockholder for \$5,000. The stock is held in treasury and recorded using the cost method. #### 5. TRANSACTIONS WITH RELATED PARTIES The Company shares its office space as well as various administrative services with affiliates of the Company. In addition, the Company is also invested in an affiliated company through common ownership and management. In February 2011, the Company relocated to Short Hills, NJ where it leases space on a month basis from GDJ Realty Holdings LLC which is 50% owned by the Company's president and 50% other family members. For the year ended December 31, 2022, rent expense totaled \$21,600. In December 2007, the Company and its subsidiary acquired a 30% interest in Highlander Futures Management LLC ("HFM LLC"), a New Jersey limited liability company, for an initial capital contribution of \$15,000. Highlander Futures Management LLC is involved in equity and options investing. At December 31, 2022, the fair value of the Company's investment in HFM LLC amounted to \$16,327 and is included in the investment in affiliate balance reported on the consolidated statement of financial condition. For the year ended December 31, 2022, the net change in unrealized apprecation on the Company's investment in affiliate amounted to \$(4,130). {12}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{13}------------------------------------------------ %&\*)\*&&%)&# \* %% #)\*\*\$%\* \$( #### **!#!#"%** \*41;9<-:E9-5:@-5:?-)1/@5;: 7<8-:@41-'8-:-@4-@/;B1>?-8819<8;E11?;2@41;9<-:E-310 C4;4-B1/;9<81@10-@81-?@ 9;:@4??1>B5/1C5@4-@81-?@ 4;A>?5:1-/4 9;:@4<1>5;0 ::A-8 /;:@>5.A@5;:?->1?A.61/@@;8595@-@5;:?A:01>@41 :@1>:-8(1B1:A1;01 '->@5/5<-:@?9-E181/@@;0121> ;2@415>-::A-8/;9<1:?-@5;: 221/@5B1!-:A->E @41/;9<-:E9;052510@41<8-:@;:;8;:31> >1=A5>1@4119<8;E1>9-@/4 \*4119<8;E11/;:@>5.A@5;:5?2A88EB1?@10-@-88@591? '->@5/5<-:@?->1B1?@105: @41;9<-:E/;:@>5.A@5;:-@@41>-@1;2 <1>E1->;2?1>B5/1.135::5:3-2@1>@4125>?@E1->-:0->1 B1?@10-2@1>@41@45>0E1-> #### **%#!!""** \*41;9<-:E5??A.61/@@;>5?7?-??;/5-@10C5@4A:2;>1?11:;>/-@-?@>;<45/1B1:@?5:/8A05:3@1>>;>5?@-@@-/7? :-@A>-805?-?@1>?31;<;85@5/-81B1:@?-:0@41191>31:/1;2-<-:0195/?A/4-?&, ;>;@41>31:/51?C45/4/;A80/>1-@11/;:;95/25:-:/5-8-:0.A?5:1??05?>A<@5;:? \*41?11B1:@?/;A8081-0 @;;<1>-@5;:-805225/A8@51?@4-@/;A809-@1>5-88E59<-5>\$-:-3191:@K?-.585@E@;9-:-31@41;9<-:EK?-/@5B5@51? <;@1:@5-88E >1?A8@5:35:9-@1>5-8 25:-:/5-88;??1?@;@41;9<-:E \$-:-3191:@ ?117?@;9-:-31@41?1 >5?7? @4>;A34 /;:@5:A5@E -:0 >1?5851:/E <8-::5:3 -8@4;A34 :; -??A>-:/1 /-: .1 9-01 @4-@ \$-:-3191:@ C588 ?A//1??2A88E 59<8191:@ ?A/4 <8-:? ;> @4-@ ?A/4 <8-:? C;A80 ?A//1??2A88E -B;50 ;> 95@53-@1 -0B1>?1 /;:?1=A1:/1? #### **"\$" \$#%#"** )A.?1=A1:@1B1:@?-:0@>-:?-/@5;:?C1>11B-8A-@10@4>;A34\$->/4 C45/45?@410-@1@41/;:?;850-@10 25:-:/5-8?@-@191:@C-?-B-58-.81@;.15??A10 \*41>1C1>1:;;@41>?A.?1=A1:@1B1:@?@4-@>1=A5>1-06A?@91:@? ;>05?/8;?A>1?5:@41/;:?;850-@1025:-:/5-8?@-@191:@-?;21/19.1> Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.