# FORDHAM FINANCIAL MANAGEMENT, INC. X-17A-5 (2021-03-30) — Broker-dealer annual report - Company: FORDHAM FINANCIAL MANAGEMENT, INC. - Form: X-17A-5 - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0000822489-21-000002 - CIK: 822489 - File #: 8-38622 - Material weakness: No - Auditor: Aprio,LLC - Auditor location: New York City, NY - Contact: Richard J Adams - Phone: 212-732-8500 - Signed by: Richard J Adams (C F O) Original filing: https://www.sec.gov/Archives/edgar/data/822489/000082248921000002/auditdoc2020.pdf --- {0}------------------------------------------------ | INTEDSTATES | OMB APPROVAL | |------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------| | SECURITIES AND ENCHANCE COMMISSION
Washington, D.C. 30540 | ONB Nomber:
373)-0123
Expirims: October 31, 2023
Estempted average burden | | ANNUAL AUDITED REPORT | Flours per response 12 00 | | FORM X-17A-5 | | | PART III | SECTLE ALTHRES
838622 | | ACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the
Securities Exchange Act of 1934 and Rule 17a-5 Thereander | | | BILEORT FOR THE PERIOD BEGINNE TORESO BY 121 2 CORNO ENDING DECEM BER 31
ANDINA | AND LIDER A | | A. REGISTRANT IDENTIFICATION | | | NAMENIE BROKER-DEALER-FOSEDHANS FOR FORMANS HAL MANAGRA FA | OFFICIAL USE ONLY | | ADDINESS OF PRINCIPAL PLACE OF BUSINESS. (Do DOT BEC P.O. BOX NO. ) | PRM LD. NO. | | Barrey JAnce.
Saith 643 | | | Not and Server
100%
1124 | | | 1571
(2001-7 | 0000
Pap Load | | AME AND TELEPHRINE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS ILLPORT
CHARDY PORMS | 212732 836 | | B. ACCOUNTANT IDENTIFICATION | Arch Fride Drivilles: Resolute | | NIDUPUNDENI PUBLIC AUCOUNTANT wisner opidiosi re contained in this Report" | | | RIC | | | Hillinual, plane last, licht, licht, licht miched i | | | 1000 (30)
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1514-1 | 1701393 | | CHICK ONE: | | | Certified Puolic Acommant
Public Accountant | | | is possessioni in Interes States States or may of Its prossessions. | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | "I hand for creengtion for regainment that lientify in covered to the optivious of on independent gublie accouplym must be sumperiod by a statement affices and circumsioners result cases for the compiles. See Section 2-40 170-2011 1 Potential Dersons who are to respons to the collection of information contained in this form are not required baraspon unless the form displays a currently valid OMS control SEC 1410 (11-05) {1}------------------------------------------------ ### OATH OR APFIRMATION ADAHS If a sear for arfilm | than in the best of Ing knowledge and belief the seconnessying financial statement and supplacing schadines perceibling to the first of CREBAM Linksel FLAMSEL FLAMSECKENT IN 2155 .20 Z ( = are trun and convert, I further swear (or affirm) than actines the any partner, propriation, principal of licer or direct many mopristicaly interest in necoded chassilized stately as that un a customer car your as fallowses MARLYS D VALDOVINGS Notary Public . State of Mow Jersey STENGATION My Continuiton Expires Fab 11, 2025 Notary Public requel => contains (check all applicable boxes < Facility Page. (0) Statement of Finannial Comlifion. ( Statement of Thome (Loss) or, if firere is other comprehensive in the perfinds) presented a Stansmission in I of Compresensive Income tas defined in \$210.1-02 of Regulation S-X1. (d) Statement of Changes in Vinancial Condition. (c) Slatement of Changes in Stockholders' Equity in Pariners' at Sole Proprietors" Capital (1) Statement of Changes in Liabilitives Schooldimitted to Claims of Creditors. (8) Compulation of Nes ("appal. (In) C'ompisation for Determination of Reserve Requirements Pursuant to Rule J.S.A. (1) Information Relating to the Possession or Control Kequirements Under Rule 15-3. (i) a Recordiliation, including appropriate expanzion of the Computation of Net Capital Under Role 15:3 | estable Computation for Delemination of the Ruserve Kequirements Under Exhibit A. as Rate 15e3-3. 11) A Recomellistion herween the andition sud imandied Statements of Financial Cendulus with respose to mesites in consoladiation An Outh or Affirmation. 177-4 (m) A copy of the STPC Supplamental Report. Is) A separt nesser ling any material madequacies found may cound mave stisted since the of the previous and "I hos sunomore at confidential encounter of count not than thing, we soccion 2 an i ta-Sieria {2}------------------------------------------------ FINANCIAL REPORT DECEMBER 31, 2020 This report is deemed CONFIDENTIAl in ascordance With Rolls 178-5(c)(3) under the Securities Excharge Act of 1934. A statement of finusoin condition hound separately has been filed with Securities and Excluango Commission simultancously nerewillies a PITBLIC doaunent. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ### REPORT OF INDERENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Officers and Director of Fordham Financial Managament, Inc. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Forcham Financial Manage & It. Inc. as of December 31. 2020, the related statements of income, changes in stockholders' equity and casin flows for the year then enced, and the related notes (collectively raferred to as the "financial statements" In our opinion, the financial statements present lainy in all material respects the financial position of Storom Financial Management, Inc. as of December 31 2020, and the results of to operations and its cash flows for the year their ended in conformity with accounting principles generally accepted in the Linuted i Stares of America #### Basis for Opinion These linancial statements are me responsibility of Forcham Financial Minnagement. Qur responsibility is to express an opinion on Fordham Financial Management. Inc. financial statements gommunities we a public accounting firm resistent in the Public Company Aces of the bevas Oversight States (United States) (PCAOB) and are required to be independent with respect to Fordham Firancial Management, Inc. in accordation 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 was made assurance about whelher the financial statements are fress. of material misstatement. Whether due to error or freud. Our audit included performing procadures to assess the naks of material missiatement of the financial statements, whether dire to effor of fraud, and performing. procedures that respond to those nots Such procedures included examining, on a test basis, evilience regarding the amounts and disclosures in the financial statements. Dur await else included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statuments. We believe that our sudit provides a reasonable basis for our opinton #### Auditor's Report on Supplemental Information The Schedule I Computation of Net Capital under SEC Rule 15:3-1 and Schedule II. Computation for Delemination of Reserve Requirements under SEC Rule 1563-3 (exemption), have been subjected to audit. procentires performed in conjunction with the auto of Fordham Financial Nanagement, Inc. a financial sialamants. The supplemental information is the responsibility of Fordham Financial Managemiunt. Inc. s. managemont. Our audit procedures included determining whether the supplemental information reconcies. lo the finencial statements or the underlying and other records as applicable, and nerforming procoduros lo test the completeness and accurecy of the information presented in the supply ental miormation. In forming our opinion on the suppliemental information we evaluatied whether the suppliemental information, Including its form and content, is presented in contomity with 17 C.S.N. \$240.17a-5. In our bointion the Schedule | Computation of Net Capital linder SEC Rute 15c2-1 and Schedule II, Computation of Reserve Requiraments Under SEC Rule 16c3-3 is faily stated, in all material respects. In relation to the financial statements as a whole. We have leeved on Cordinat Birmagement Inc 'y suillor anoc 2020 Slew York. New York March 28, 290 / Arma XIT 7 Here Para, SUILE 210, New Yon, NY 10001 212,057,0540 {4}------------------------------------------------ ### TABLE OF CONTENTS | | Cago No. | |-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Report of Independent Registered Public Accounting Firm | | | Financial Statements: | | | Statement of Financial Condillo! | | | STATEMENT of Tricome | - | | Statement of Changes in Stockholders' Equily | 1 | | Statement of Cast Flows | 5 | | Notes to Financial Statements | (0.10) | | Supplementary Information: | | | Schedule I: Computation of Net Capital Under Rule Lice I | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Schedule (1: Compotation for Devermination of Reserve Requirements
Under SFC Rule 15c2-3 | 62 | | Supplemental Reports: | | | Independent Registered Public Accounting Firm s Report on Exemption Report | 15 | | Exemption Report | - | | Independent Accountant's Agreed-Upon Procedures Report on Sefective of
Assossment and Payments (Form SIPC-7) | 115 | {5}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION # DECEMBER 31, 2020 ### ASSETS | FIFSST IDUALITY | | | |-----------------------------------------------|----------------|--------------| | ( as and cash squing lerm | V
7,595,140 | | | SUMMER WITH Excluming Trip The Passeral I | 21/8763102 | | | Hoodivable Irem houlder dealers | 7.80.011 | | | Pregenticionenses | 102418 | | | Dotal corrent assels | | REALERS! | | Non-current assets | | | | Pergual Liums | 184,233 | | | Scurry deposits | DURIKE | | | total non-current assets | | 115 163 | | Total ansels | | 180700000 | | TAVIHIS.LES AND STOCKHOLDERS VOLUL | | | | Corrent fiabilities | | | | I positions payable and siccrued expenses | 2
105.04 9 | | | Quarterly bonuses navubae | 12.048.382 | | | Addiscus scriassiminas I | 8,742,357 | | | I listure laxies payable | 11 2017 177 | | | UNITO I DAMILT - Papiness - Purmers portugues | 105. 10 | | | Total current Inbilities | | 20301302 | | Intellex -- contrible - philation should | | 12015 | | Total labilities | | 1178.3411 | | Stockholder's Equity | | | | Common stock, no par value, 15300 Junique | | | | arrituralstop pair pourse Decreation | 13000 | | | (DOCK a-- all paint-in career | 4.8541134 | | | Resulted carnings | 8073/887 | | | Tutal stoch bolder's oquity | | 17/11/27/747 | | Total Habilities and stocklinidar's Equity | | 39,119,081 | See actionsporting notes to the financial statements {6}------------------------------------------------ # STATEMENT OF INCOME # YEAR ENDED DECEMBER 31, 2020 | Revenue | | | | |-------------------------------------------------|---------------|---|------------| | Sompone tinance mannie | \$ 68,850,735 | | | | LAMINTHS AND IDEOSTE | 2,804,880 | | | | Rehales monne | 180.527 | | | | Conference fee neom | 63,855 | | | | Interest income | 11 184 | | | | FINA revenue | | ಕ | 73.161 295 | | Kxponses | | | | | Compensation and related henefits | 17196983 | | | | Concra and acimenstrative | 8,723,806 | | | | Brokerage, axchange and slearance focs | 607 473 | | | | Bad debts | 2 227 | | | | Conterence expenses | 598 | | | | SaxILaya Pro | | | 36,730,500 | | sugned during in the from waid arouse actional. | | | 16 210,720 | | SOXY21 DUDDO DIN 1001 FROUSTAGAL | | | 1223 21 | | Nel lucome | | | MAPZANKET | See accompsnying nores to the financial summents. {7}------------------------------------------------ # STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY # YEAR ENDED DECEMBER 31, 2020 | | Common
STACK | | Addrioma
1. 2. K. - TII
( 305) | | Retamen
Euronings | | Total
Stockhelder's
11 11 1111111 | | |-----------------------------|-----------------|--------|--------------------------------------|-------------|----------------------|-------------|-----------------------------------------|-------------| | Balance, January 1. 2020 | 17 | 15.000 | 22 | 6.508.505 | ﻱ | (3,900,924) | 21 | 239581 | | Net income | | | | | | 12,007,608 | | 12,007,000 | | Gapital distributions | | | | (1.654.446) | | | | (1.654.446) | | Ballinos. December 31, 2000 | ದಿ | 12.000 | | 1.85 089 | | 18073684 | | 13,012,748 | See neepimpanying nores to the linancial statements {8}------------------------------------------------ # STATEMENT OF CASH FLOWS ### YEAR ENDED DECEMBER 31, 2020 | Cash flows from operating scrivities | | | | |----------------------------------------------------------------------------------------|----------------|------|------------| | EXCE HIC OFFIC | SUPERS/ARTINIS | | | | Adjustments in recoricile not meonie to net carsi
provided by operating activities: | | | | | Decrease ( mercase ) in: | | | | | STAXTERSONGLAST FORTHSED THAN SUSSONTEY I | (19.211,030) | | | | Receivable from hrower-dealers | 19330.9011 | | | | Diae from registered representatives | 62751 | | | | Furowatic Inany | ((208) | | | | Prepaid expenses | (53,588) | | | | Intrease (decrease) in: | | | | | Accounts payable and nearmil experial | 68,512 | | | | Crummssions payaloke | Carrie | | | | Quarterly bonuses payuble | 12,948,387 | | | | arrayou saxes payable | 4,200,000 | | | | Wer casil provided by deperating assure ally and | | 1. 8 | 8 155910 | | Cash flows from financing activities | | | | | Loan proceds | 681881 | | | | Carriel Cistmations | (LAS4 446) | | | | Dies casin (read by finance) (de press) rises soil | | | 11/127 | | and strease a cus dan't a sensance into ini | | | 6,67 1,639 | | Cash ond cash equivalents - beginning al year | | | 023 55 | | we los bring - small number dised brand vesti | | 5 | 750-140 | | Supple mental disclosure of cush flow in(i) mation | | | | | South Theory Property Taxes | | ya | | | 1889 Partify program 150 T | | 8 | | | | | | | See accompany ing notes (o the financial statements. {9}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### DECEMBER 31, 2020 #### Note | - Organization and Nature of Basiness Fordbam Financial Management, Inc. (the "Company") is a broker-dealer registered with the Seowifies and Eschange Commission (the "SEC") and is a member of the Financial Industry Autowith ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company Is a Chiloratus corporation that is a wholly-owned subsidiary of Fordhum IToidings, Inc. (the "Parcel"). The Courpuly 15 engaged in a single Time of business as a suauntues broker-dester, which comprises several classes of services, including private placements unil inwestment banking. The Company operates under the provisions of Paragraph (k)(2)(ii) of Role 15(3-3 of the Securities Exchange Act of 1934 and, accordingly Js exempt from the remaining provisions of that tule. Essentifally, the requirements of Peragraph (k)/2)(i) provide that the Company close all uansactions on fothalf of customers on a fully disclosed basis with a chain - trailer and promptly transmit all customer lunds. and securities to the clearing broker-dealer. The clearing broker-dealer curres all the scomms of the customers and preserves all related books and records as and cecurity as and can and a clearing broker-nealer #### Note 2 - Significant Accounting Policies #### Basis of presentation The Company follows woooooting established by the Financial Accounting Standards Board (the "IFASB") In ensure consistent reporting of financial condition, results of operations, and cash flows. References to accounting principles generally accepted in the United States of America ("GAAP") in these notes are to the 1 ASB Accounting Standards Codification TA, sometimes teferred to as the "Codification" or-180" #### Use of estimates The preparation of financial stutements in conformity with 1 5. gamerally accepted accoming primeples requires that management make estimates and assumptions that alled the reported amounts of assess and Todalities and disclosure of confingent assets und finhiltites at the date of the finenetal station is and the more him thinks this in the separting separting separting separting so montante corporation of corporation corresport Three estimates. #### Cash and cash equivalents I to Company considers lighty liquid investments with an with of three months of the SALETICA (DES USARS) {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### DECEMBER 31. 2020 #### Property and capipment Property and equipment are stated at cost. Deprecisition is provided using a Modified Acceleration I inst. Recovery System ("MACRS") using estimated weful five to seven years. Major additions and improvements are capitalized, and reportirs and maintantance are charged to operations as inclused All (10000) and equipment was fully depreciated us of December 31, 2018. #### Revenue recognition The Company recognizes revenue in depet the transfer in promised services to constomers in an amount that reflects the cansideration lo which the entitled in exchange for those services. The guidance requires an entity to follow a Eve-step tuodel to 1 1 ) succifily the contract(s) with a customer. (2) locally the performance nhilgations in the entiract, (3) determine the himsaction price, (4) allocale the trainsition price to the performance obligations in the contract, and (5) recognise royenixe when (or his) the contry salisties a performance obligation. In desemining the transaction price, an entily may include winning consideration of the extent that it is anywhile than a stentlicant reversal in the amount of sumulative revenue recognized would not necur when the uncertainty associated with the variuble consideration is resolved. The Company provides corporate finance and cammissions realed services to its cusiomers. The benefits of the Compuny's services are generally transferred to the castomers or a point in time upon ickecuting a transaction. The Company's revenue recognition muy differ from the liming of payment by its castomers. The Company records a receivalve when rexemale is recognized prior to payment. nud the Company has an meonditional right to puyment. Alternatively, when proment gresedes the provision of the related services, the Company records defered reveaux a contract lightly mill the performance obligations are satisfied. #### Coepocate finance revenues Corporato finance revenues income and fies from fixed income securities offerings in which the Company acts as underwriter or placement agent. Corporare finance resumes also include fees earns I frim providing consulting, ask management and financial advisory sesvices. Majority of the corporate finance mangement fees are variable and contingent upon execuling a transaction. Therefore, corporate finatos. revenues are typically recognized upon the closing of the uncertaints involved. #### Commission income Securities transactions and the recognition of related moome and experses are recerded on a made-date hasis Commissions and related clearing charges are also recorded this a trade-date susis as securities transactions fictur. #### Income taxes Provision has been made for income taxes currently due Federal, New York State and New York City las autherities. The amount of current and deferred laws payable or refundable is recognized as of the date the financial statements utiliting currently enautal laws and rates. Deferred tas expenses or benefits are recognized in the financial statements for the changes in deferred tax isbilities on assets between vears. {11}------------------------------------------------ ### NUTES TO FINANCIAL STATEMENTS ### DECEMBER 31, 2020 The Company resugnizes und measures its unrecognized lass benefits in accordance with [ASIS ASC 740. Income Vaxes. Uniter that guidance the Company assesses the likelithood, based on their rechnicali merit, that the lax positions will be sastained upon examination based on the facts, circomistances and information www.blogs. It the ead of each period. The measurament of unrecognized tax benefits is adjustad when new information is available, or when an event (820ms than requires a change. The Company recognizes the acontal of my interest and pensifies related to unrecognized tax henefits in income to expense. #### New accounting and acthoritstive guidance In March 2016, the FASH issued ASL' No. 2016-08. Reverse from Coursels with Casinoners Claptor dith . Principal versas Arent Cansiderations (Reporting Rovenue Gross versus Net) "This standard clarifies the implementation guillance un principal versus agent considerations. The guidance thelinators (a. assist an entify in determining whether it controls & specified good of service before II is this Customers. The effective date and transition requirements, of AST 2016-08, are the same as the offective date and trausition requirements for ASL 2014-09. The adoption of this gradance does not line a material impact on the Company's financral statements. In April 2011, the FASB issued A.S.U. No. 2016-10, Ravana from Contracts with Castimary (Topic GU6) ! Identifying l'efformance Ohligations and Lievesting which amends certain aspects of the FASH's new rovenue standard. ASU 2016-10 identifies performance obligations and provides licensing miglementation guidance. The effective date and transition requirements, of ASU 2016 10. are the strontive . care and transition requirements for ASU 2014-09. The adoption of this standard does not have a maternal impset on the Company's Inuncial sintements. #### Impairment of Long-Lived Assets Long-ived assess are eviewed for imparment whenever events or changes in currumstances indicate Inali the carrying anount of an asses may not be filly recoverable. Recoverability of assess to be held and used. is measural by a comparison of the carrying annum of the assets to the discounted future net cash thows expected to be generated by the assets. If such assets are considered to be impaired. The impairnent to berecognized incasured by the amount that the carrying amount of the assess exceeds the lan value of the 1956685 ### Subsequent Events The Cumpany has avaliated subsequent events through Murch 28, 2021, the simulal statements were synilahle in De issued. #### Note 3 - Receivable from Clearing Broker/Securities Held at Broker The Company cynducts husiness and clears its proprietary and customer transactions through one eleasing timker on a filly disclosed busis. The Commitssions as un introducing froker in the irunsaczions of its customers. The clearing and depositions for the Company's customer accorner accorner are reclormed by its clearing broker pursuant to a cleanines agreement {12}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### DECEMBER 31, 2020 #### Note 4-Loan payable On May 15. 2020 ("effective dato") the Company signed a Paycheck Protection Program Term Note ("Note") in the amount of \$180.189. The Note contains provisions for the foreiveness of the facility, silbical In program requirements outlined in Section 1106 of the Coronavirus Ard, Refiel, and Economic Society. Act. Loan lorgiveness is subject to the sole approval of the Small Business Administration. The Company is chieffe for loan forgiveness in an arround equal to purments made during the 24-week period beginning. on the Effective Date, with the exception than 10% of the amount of load for veness tual be for expenses other than payroll expenses. The Company intently in apply for lorgriveness of the PPP Lom with respect to these covered expenses. Any announts outstanding under the Note shall actrue micrest as a Tale of 1%. The Note is a five-year loan with a maturity date of May 15. 2022. Mouthly principal and interest payments are doferred for ten months atter the end of the end of the Company's Note forgiveness ("Deferal Period"). After such Deferral Period. and after taking into account any Note forgiveness applicable to the Note pursuali to the Act, any remaining primerpal and accrued interest will he payable in surstimitially equaliment were the remaining months left turill May 15, 2022. As of March 28, 2021 the outstanding Intellige of the Noto in the amount of ST80, 89 is received in 108 payable. #### Note 5- Commitments and Contingent Linbilities #### Lease commitments I ne Company is currently on a month-to-month lease for its office spayes location at 17 Ballery Place and 17 State Street. New York NY: Rent expense for the year entiled Desember 31, 2020 amounted to 6422,4113. #### Brokerage activities In like wormal course of business. In Company in enggreed and excludes activities on an agency this (fromas a cleaning broker in commerion with these activities s castomer's unsettled transactions finay espose the C impany in off-halance show hisk in the encomes is imalite in thilfil mein promotion obligations Significant greath in the event that the event that the Company's meaning monther a unald common of the contraction of the soloro #### Uncertainly related in Covid-14 The Company's emering profitability may statulity and estimages coluded in the the memoring statements may change the n-current political and peoplements on resalt (n public health connecting related to the novel coronaying or COVID-9. The directives and intersity of these impacts and Nations distantion to which these events effect fire | ampany > him iness will depand on figure developinent wills | are highly uncersain and cannot ise predicount this sime. {13}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### AS OF DECEMBER 31, 2020 ### Note 6-Related Party Transactions The Campany extended credit ("fergivable thans") to was advisors in 2020 m the form of signing Broman and commission advances. The decision to extend credit in advisors my generally bused on the a =============================================================================== shillty to generation former commissions. These advances are forgivishts over the terms of the neves of a coment provided the idolsor cenains licensed through for a period of fire. At Docember I 2020 NING 335 bl excended credit is forgivable. AN Circuvable trans are interest free. ### Note 7 - Income Taxes The I ASB provides goidance tor haw ancerain sas positious should be resogniant, mensured, the loved, and prosented in the financial statements. This requires the cvaluation of last positions rakeer or exposulatio be lawen in the nourse of preparing the Company's tax resams to determine whether tax positions are "mine fikely stam not of the resustained "which connitied" by the applicable tas sulliently. The pusitions not desmed to meet the more-likely shown on threshold would be a cas henefit of = pense and liability in the pourent year. For the year ended December 31. 2020. management == devermined that there are nir amentatul last postuons. The Company is not seasoning by U.S. foderal, state and Incal tax aulliorities for tax years hefore 2017. #### Note 8 - Net Capital Requirements The Company is subject to the SEC Unitorm Rule (SEC Rule 15c2-1), which requires the maintenance of minimum net capital and requires that the ratio of ageregate indebtedness to ner capital. Both as defined, shall not exceed 15 to 1 (and the of the "applicable" exchange also provides that equiry capital may not be withatrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 11, 2020, the Company had tiet capital of \$12,575, 175, which was \$10,830,085 in escess of its required net capital of \$1,745,090. The Company's net capital rutto was 2,08 ro 1. Certain advances. dividend payments and other equily withdrawals are resuriered by the provisions of the Fules of the Securities and Exchange Commission, Under the amangements with the clearing broker dealer, the Chinely is required to maintain certain minimum levels of capital and comply with sther financial ratio requirements. ### Note 9 - Conceptrations and Credit Risks The Company clears its socurities transactions through a major firm. These activities may eamise the Company to off-onlance-sheet risk in the event that the institution is unable to fulfill its shiligation and the Company has to purchase or sell the securities at a Joss The Cumpany maintains its cash in a bank deposit account which, at times, may exceed lederally insured timits, Accounts in the United States are guaranteed by the Federal Deposit Insurance Corporation ("F11(C") up to \$250,000. At December 31, 2020, the Circused I DIC insurad Ilmits. The Company has not experienced any losses in such accounts. Financial instraments that potentially subject the Company to concentrations of credit risk consist principally of the clearing organizations receivable. The Company has cash an deposit with a dearing organization. The amount of credit risk associated with the clearing organization receivable is \$21,676,092. and is reflected in the statement of financial condition. {14}------------------------------------------------ SUPEEMENTARY INFORMATION {15}------------------------------------------------ # SCHEDULE 1-COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 # AS OF DECEMBER 31, 2020 | Tutal since linker's equily | | S 12042011 | |-------------------------------------------------------------------------------------------------------------|-------------|---------------| | Deductions/charges: | | | | Non-allowable assels! | | | | Fringivable louns | 184,313 | | | Propa lo essenses | 162.408 | | | Security degrests | 20.800 | | | Total deductions/charges | | 167541 | | Nel Capital before haircuis on sociaties positions | | 12369777 | | Haireuns on securities pursuant to 15c3-111 | | 11 | | Net Capital per rule 15e3-1 | | \$ 12.575.175 | | Computation of Net Capital Requirement | | | | Aggregate andebreaness | | | | Accounts payable and accrued liabilities | 1
105240 | | | Sparissions payable | 8.742351 | | | Income lases payable | 4.200.170 | | | Quarterly homuses payable | 2048.387 | | | Luans parahle | 120.189 | | | Total ageregate indebtedress | | 26. 76. 1 | | Minimum capital required tilie greater of 51001.000 | | | | or ( 2/3% (of aggrespite indebtedness) | | 2.745.090 | | Excess Net Capital | | 5 10.830.0N5 | | Ratiu of ageregate indebtedness to not capital | | 208 litt I | | Reconciliation with Company's Computation (included
in part IIA of Form X-17A-5 as of December 31, 2020) | | | | Net Capital, us reported in the Company + Part (1 (Imaunined) FOCUS raport | | \$ 12,575,175 | There were no material differences herwoon the audited compaisition of get capital included in this report and the corresponding schedule included in the Company's unaudited December 31, 2020 Part II EOCUS filing {16}------------------------------------------------ # FORDHAM FINANCIAL MANAGEMENT, INC. SCHEDULE II - COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER SEC 15e3-3 # DECEMBER 31, 2020 Mone. The Company Is excentin from Ride 15c3-3 under subparagraph (k)(2)(1). {17}------------------------------------------------ # REPORT OF INDEPENDENT REGISTISED IN INLIE ACCODE PATING LARM To the Officers and Directors of Fordbare | Inancial Manugement, Dac. We have reviewed managements, included in the accompanying Exemption Report, in which (1) Fordhum Financial Management, Inc. identified the following provisions of I 7 C.F. R. §15e3-3(c) under which Fordham Floancial Management. Inc. claimed an exemption from 17 C.E.R. 5240,15c3-3; paragraph (4(2(7) (the exempion provisions) and (2) Eurdham Financial Management. Inc. stated Unal Foreflamm Financial Management Inc. met the identified excemption provisious the most recent fisual part without exception. Fordlean Financial Management. Inc. 's management is responsible for compliance with the exemption provisions and its statements Our review was condicted in acentrauce with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Fordham Finencial Management, the,'s compliance with the exerspting provisions. A review is substantfilly less in scure than an exumination, the objective of which is the expression of an opinion of management's statements. Accordingly, we do not express such an opinion. Based in our review, we are not aware of any material modifications that should be made to management's sementanta referred to Above for them to be fairly stated. In all material respects, bassal on the provisions set forth in paragraph (k)(2)(ii) of Raile 15c7-3 under the Securities Lachungo Act of 1934. New York New York-March 28, 2021 Sand Ur ![](_page_17_Picture_8.jpeg) {18}------------------------------------------------ ### EXEMPTION REPORT ### DECEMBER 31. 2020 Footham Financial Munagement, Inc. (the "Company") is a registered broker-dealer subject to Rule 173-5 promulgated by the Securities and Exchange Commission (17 C.F.R. § 240. (73-5, "Reports to le mude by certain brokers and dealers"). This Laemption Report wus prepared as required by 17 C.I.R. § 240 176-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - ( 1) Tre Company claimed an exemplion from 17 C.J. ( 240 15c3-3 under the following provisions of 17 C.F.R. § 240.15e3-3(k)(2)(i). - (2) The Company has met the identified exemption provisions in 17 C.F.R. § 240.1563-3(k+throughout the most recent fises year without exception. Fordham Financial Management. Inc. 1. William Baquel, affism that, to my knowledge and belter, this Exempling Report is true and corran. William Baouel, President March 38, 2021 ![](_page_18_Picture_11.jpeg) {19}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Officers and Directors of Fordham Financial Management. Inc. We have performed the procedures included in Rule TTa-5(e)(4) under the Securities Exchange Ad. LL 1834 and in the Sacurities Investor Protection (SIPC) Sarias 600 Rules, which are enumeration 1 relaw in avaluality Fordham Enancial management, Inc. and the SIPC, solery to assist you and SPC in evaluating Fortham Financial Management, Inc. s compliance with the applicable Institutions of the General Assessment Reconcillation (Form SIPC-T) for the year anded Decamber 31 2020. Fordham Financial Management, Inc.'s management is responsible for Its Form SIPC-7 and for 1s compliance with those requirements. This agreed-upon procedures engagement was consurted in acondiances with standards astablished by the Public Company Accounting Oversight Board (United States) 300 m accomance with attestation standards established by the American Institute of Corthon Public Accountants The sulliciency of these procedures is salely the responsibility of those parties specified in this report. either for make no representation regarding the sufficiency of the procedures described blorom either for this purpose for which this report has been requested or for any other couronse. The procedures we performed and our findings are as follows - 11 Compared the listed assessment payments in Farm SIPC-7 with respective cash disbursement records secones, noting no diffierences - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Fair III for the year ended Desamber 31, 2020 with the Total Revenue amount reportant in Form A-3 Far fir the year ended December 31, 2020, noting no differences: - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers. roling no differences. - 4) Recalculated the arthmetical 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. We were not engaged to and did not senting an examination or review, the abjective of which would be the expression of an opinion or conclusion, respectively, on Fordham Financial Management This Is one with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2020. Accordingly. minht matter man apinion or conclusion. Had we performed additional procedures, alber matters might his ve con result has nother that would have be meppred to you This report is intended solely for the information and bee of Fordham Financial Management, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified pailles. 19110 ULP New York, New York March 28, 2021 {20}------------------------------------------------ | SIPC-6 | BECURITIES INVESTOR PROTECTION CORPORATION
P O. Box 32185 Washington, II C. 20090-2165
202 371-8800 | SIPC-6 | |--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | BB REV 12/18 | General Assessment Payment Form
For the first half of the fiscal year ending r 2/ \$1/2 oze
(Neap careNilly the Instructions in your Warking Copy before completing this Farm) | BF/ZF AJB BE | | | TO BE FILED BY ALL MEMBERS OF THE SECURITIES INVESTOR PROTECTION CORPORATION
Walle of Member, address, Dosignated Lxemining Adthority, 1934 Act legistration in and month in Writtn Transl year Ends (or
purposes of the audil requirement of SEG Rule 1 /a 5.
FORDHAM FINANCIAL MANAGEMEN
17 BATTERy GLACO - Suite 643
NEW Jokk, 25/ 1000 4
8-38622 | COP
Nore It any at the information shown an the
Trans e seaste "goldorfrom sa nuper ledal grimes.
Dif pure Dio-squalital of supplies months and
WORKING
main migh all no nife form hilad
Nams and felophone number of person to
contact respecting thes form.
Kichard J ADAHS
212-732-5500 | | IF abron page 2) | 2. A. Gonoral essessment payment for line first ball at the fiscal year | 25252 | | BUD DDAEFF® LUVULSSRESS® | I Less prior year averpayment eppliad as reflected on SIPC-1 il applicable. | ্র
25 252 | | | B. Interest computed on late nayinent (son mamucilar ( ) tot God days at Pirs del annum | | | | 1 old BBSOSSMENT and Interest and | 26206 | | D. PAYMENT: V the box | Check malled to P.O. Box Funds Wired ACH
26006
Total (must be same as Caboye) | | | | A Subsidiana material (1) modiated in this form (give neme and 1984 (1973) 1997 (19) 1995) | | | | | | | ADD DOMO DIA | The STPC member submitting this form and the
person Dy whom it is executor septesent thereby
that all information contained herem is irue, correst | | | Galgo Indel day a1 OCT - 0 CT - 20 20 | | |---------------------------------------|--| AMAGEMENT TANK 18881 1 Name Ul Gelphyly PETERPERSIN IMILO LEASE The the use light lier. CF0 Tall This form and the assessions payment is due all of the first sit nonline of the firste in an assily access. Resin the | Salar Sales
14 | parisimatica | The Called | DOWDIADA | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|------------|------------------|--------------| | Calculátions _________________________________________________________________________________________________________________________________________________________________
Exceptions Notage Exceptions Nota | Disposition of asception | | Discumantation - | Forward Cupy | {21}------------------------------------------------ # DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT Amounts for the fiscal period 270 200100 2 30 - 2020 Ellminate cents 251 382 925/382 2522 748 94 2165168 949 2416 586 6834 496 25 252 По рале 1 Ону 200 #### Item No. 11 #### Madilion :: - Intederssers on frighted studies churiness of subsidianes lexcept loreign pubsitiones) and preducessors not included above - (P) Not loss from principal fransactions in securities in trading accounts. - (1) Net loss (com principal transactions in commendries in treating accuration - 14) Interest sod dividend expense deducted in determining flom 22. - 5 Net loss from managument of or participation in the uncerwriting or distribution of securities. - first from mulanemark it a nor printing, tugistration faes and logal lees geducted in occurring nati prell from management (1 or participatien in innoverding or distribution of becarifies. - ( / Nel voss from sucurities in mivastment accounts. Politions #### 2c Dengelons. - Investment for the diatribunon of shares of a registered company of small investment anyleson of the sale of variable annulties, trom the business in mediated, hour investinoni advisory survices rendored to renistored investment companies of insurance annually separate accountis and from transactions in security tollores products. - (2) Revenues from commodity fransastions. - " "Securities Hangering and clearance paid to other SIPS members in connection with Supprifies Itansactions. - 141 Reanburbements for postage in commention with proxy pollollaling. - (5) Ner gain from sesimbles in investment accounts. - (0) 100% of continues and markegs carned from transactions in in certificates at daposil and ( um issuance date frum issuance date. - IT) Oreat expenses of printing, advertising and legal fous included in somiection with ulter sovennu related to the securities business (revenuo defined by Section = 3(S)(L) nT fille Acti - (Sing Instruction in related either dreatly or indirectly to the securitions alusiness. (Sgo Instruction C): (Moductions in excess of \$109.000 require documentation)) - 10) Total Inforest and dividend uxpense (FOGUS Line ") HART HA Line = Code 4075 of top 100 (evone 11-1 string stores . of Jotal interest and dividend income - ( ) 40% of margin interest earned on customers securities (2000 1) FOCUS (of FOCUS Ime 5. Code 8980) Enter the grouter of line (I) or (if) Sucharped letty I - 20 SIPC Nel Operating Rovenuel - 2e. General Assessment @ 0015 622 {22}------------------------------------------------ | | | | SECURITIES INVESTOR PROTECTION CORPORATION | | |---------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | SIPC-7 | | P.O. Box 92185 Washington, D.C. 20090-2185
202-371-8300 | | | | (36-REV 12/ (B) | | General Assessment Reconciliation | | (26-REV 12 | | | | For the frees year chdich 12/31/2020 | IReau curchily the listruction in your Working Gopy bellure and in Fa Fa | | | | DITTROUSE of the Quoit requirement of \$10 Rule 1/1-5: | | YO BE FILED BY ALL SIPE MEMBERS WITH FISCAL YEAR ENDINGS
I mamo of Manber, address, Dasignaled Ekamining Aultony, 1934 Aci registration no, and morth in Which IIseal year ends for | | | | Of DOWN BOHN MALL FOR AADC 700
38822 FINRA DEC
FORDHAM FINANCIAL MANAGEMENT INC.
17 BATTERY PL STE 643
NEW YORK, NY 10004-1137 | | indicate on the form Mcdi
contact respecting this form
SICHARD J | Note: it any of the information shown on the
Insting label requires sorrection, please e-mail
any marrestions to formity sinc.org and su
Name and telephone nimber af person to
212- 732 - 8500 | | | 2 A. General Assessment illum 2e from page ZI | | | 105 544 | | | B. I sss payment made With SIPC 9 filed exclude interest | | | 25252 | | 02-18-20
Date Paid | | | | | | C
propos promoverpayment spplied | | | | -0- | | D. Gssessment balanco due or loverpayment) | | | 80 292 | | | | | E. Interest computed on late payment (see instruction E) for _________________________________________________________________________________________________________________ | | 40 | | | | F. Total assessment balance and interest uus (or averphyment carried Forward) | | 86292 | | E. PAYMENT! V the box
Total (must be same as F above) | Check mailed to P.O. Box Li Funds Wired D | ACH E | 80 292 | | | H. Overpsyinent carried forward | | | | | | | | | J. Subsidiaries (S) and prodecessors (P) Included in this Ipine name und 1934 Act ragistration (uniber) | | | | | | | | | The SIPC member suamiting this tarm and the
person by whom i is executed represent liareby
and complete | that all information contained herein is true, corract | CRDI | CHILGOSES-FINALIE | | | Daled the 26 they of Co | 21 21 | (1-0 | A FOOLE | | | | | for a period of not less than 6 years, the lates! 2 years In an easily accessible plaou. | THE
This form and the assessment payment is due 60 days atter the end of the fiscal year. Relain the Working Copy of this larm | | | | | | | | | ਵਿ
Dater
Postmarked
SIPC REVIEW
Calculations | Pro 150 1500 | Baylewed
Doumminto wi- | | | | Excuptions | | | | Forware Curry | | SUBDIDDED 10 00012000610 | | | | | | | | 1 | | | (1997 {23}------------------------------------------------ # DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT Amounis for the lises! poriod beginning 1/1/2020 Ac page 1, Time E.A./ | | | | 20202712721 Turblid Diff | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|-----|-----------------------------| | DEN NO.
Za Talal reveous (FOGIJS Lime 12 ParLittA Libr. S. Code 4030) | | | Eliminate cents
72961236 | | Shong Garantons
II Total revenues from the securities business of subsidiaries (except loreign subsidiaties) and
ewods (reprices not included above. | | | | | (7) fret loss from principal transactions to secondies in Irading scrown)s. | | | | | (3) Net loss Nom principal transactions in commoditions in frauling accomots. | | | | | (4) i liferest and dividend expense deductsd in betermining item 25. | | | | | (5) Nel inss from wanagement til on particigation in the underending of securities. | | | | | (i) Expensios offer than adversion printing registration loas and legal fors deducted in determing nei
profit from panel of or participational in no nederwriting on on classifies. | | | | | [7] Net lass from securities in urvestment accounts. | | | | | Intel additions | | | | | 20, Deductions
ITT Revenues from the distribution of shares blog registered open and micsiment company of innil
Investment from the sale of vanisble unnuities, from the business of insurance, from linestmant
adwisn'y suchbes rendered to tegistered investment cosignifies or institution porchary seperate
ascounts, and from fransactions in security fulures groupels. | | | | | 12) Revenuas light commoduly transactions. | | | | | (2) Gommissions, Iloor prekerace and cleasance paid to the SIFC members in convection with
securities fransections. | | | 2597875 | | (4) Reinoursements for passage II connection with proxy solicitation. | | | | | (a) Net gain irom securities in investmentraccounts. | | | | | (5) 100% of early ind markups barsed from Lransactions in 1) bentlicales of benclication
(1) Treasury bills, bankers acceplanuds or chilimorcial pabel that mature time months or less
from resuance date. | | | | | (1) Driecl expensios of printing advartising and legal less incurred in connection with other boyentlie
related to the securities business trevenue delined by Seption 1610 (c) of Ibe Act, | | | | | (II) Croge ravenue not related gither cires ly or indicatly to the supprilias business,
1500 lustruction C): | | | | | [Dedoctions in excess of \$100,000 regulte ducumentațiis | | | | | (9) [1) Total follotuse and divicend expense (FOCUS Line 221PART IIA Lime 13
Cade 4075 pras line 2b(4) above) but not in axaess
of lotal interest and dividend lincome. | 6 | | | | Ill 40% of margin interest earned on customers securities
"DEEE appud 's Puin STIDOL TO SSEP STANDED | | 596 | | | Enlate the greater of Sine (H by (il) | | | | | DER DESCRIPTIONE | | | 2598 471 | | 20. SIPC Nat Operating Revenues | | | | | ET00. @ the ESSSSSS TETBHOBLET | | | 1.70 362160 | | | | | 105 544 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.