# GLOBAL FINANCIAL SERVICES, L.L.C. X-17A-5 (2025-02-26) — Broker-dealer annual report - Company: GLOBAL FINANCIAL SERVICES, L.L.C. - Form: X-17A-5 - Filed: 2025-02-26 - Period: 2024-12-31 - Accession: 0000918185-25-000004 - CIK: 918185 - File #: 8-46866 - Type: Broker-dealer - Material weakness: No - Auditor: LaPorte, A Professional Accounting Corporation - Auditor location: Baton Rouge, LA - Contact: Gerardo Chapa - Phone: 713-968-0409 - Email: gchapa@globalhou.com - Website: globalhou.com - Signed by: Gerardo Chapa (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/918185/000091818525000004/Gfs2024public.pdf --- {0}------------------------------------------------ # Statement of Financial Condition # Global Financial Services, L.L.C. December 31, 2024 Filed as PUBLIC information pursuant to Rule17a-5(d) under the Securities Exchange Act of 1934 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden h (PCAOB Registration Number, if applicable) # ANNUAL REPORTS FORM X-17A-5 PART III | | ours bet response.
SEC FILE NUMBER
46866 | | |----|------------------------------------------------|--| | 8. | | | 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 01/01/2024 | | ______________________________________________________________________________________________________________________________________________________________________________ | | | | | |-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--|--|--| | | MM/DD/YY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: Global Financial Services, L.L.C. | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 1330 Post Oak Blvd., Suite 2100 | | | | | | | | (No. and Street) | | | | | | | | Houston | X | | 77056-3019 | | | | | (City) | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Gerardo Chapa | 713-968-0409 | | gchapa@globalhou.com | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
LaPorte, A Professional Accounting Corporation | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | 8555 United Plaza Blvd. Ste. 400 | Baton Rouge | LA | 70809 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 10/16/2003 | | 601 | | | | | \* Claims for exemption from the requirement that the annual 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-5(e)(1)(ii), if applicable. (Date of Registration with PCAOB)(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. FOR OFFICIAL USE ONLY {2}------------------------------------------------ # OATH OR AFFIRMATION | Gerardo Chapa | swear (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of Global Financials Services, L.L.C. | . as of | | 12/31 | 2 024 | | | 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. | | ![](_page_2_Picture_2.jpeg) | Signature: | | |------------------------|--| | Title:
, Un GO 1700 | | otary Public # This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (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). - [ (d) Statement of cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [] (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ {i} Computation of tangible net worth under 17 CFR 240.18a-2. - □ {j} Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | {k} Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [] {|} Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - O (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - | {p} Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (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 statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ {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. - [ {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - [ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(2), as applicable. {3}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 # Page | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|--| | Statement of Financial Condition | | | Notes to Statement of Financial Condition | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) LaPorte, APAC 8555 United Plaza Blvd. | Suite 400 Baton Rouge, LA 70809 225.296.5150 | Fax 225.296.5151 LaPorte.com # Report of Independent Registered Public Accounting Firm To the Board of Members Global Financial Services L.L.C. # Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Global Financial Services, L.L.C. (the Company) as of December 31, 2024, and the related notes to the financial statement (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial 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 financial statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. A Professional Accounting Corporation We have served as the Company's auditor since 2020. Baton Rouge, LA February 21, 2025 {5}------------------------------------------------ # GLOBAL FINANCIAL SERVICES, L.L.C. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 | Assets | | |------------------------------------------------------|-----------------| | Cash and cash equivalents | ನಿ
1,313,845 | | Investments | 565,751 | | Deposits with clearing broker | 545,208 | | Receivable from clearing broker | 306,654 | | Receivable from affiliate | 367,248 | | Other assets and prepaid expenses | 267,189 | | Furniture, equipment and leasehold improvements, net | 37,552 | | Right of use assets - lease, net | 1,124,903 | | Intangible assets, net | 1,400,000 | | Total assets | 5,928,350 | | Liabilities and Member's Equity | | | Accounts payable and accrued liabilities | 160,172 | | Accrued compensation | 293,702 | | Lease liability | 1,301,552 | | Total liabilities | 1,755,426 | | Member's Equity | | | Member's equity | 4,172,924 | | Total Liabilities and Member's equity | ಕಿ
5,928,350 | | | | The accompanying notes are an integral part of this financial statement. {6}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`R>BADJ=?=OAJA?HH;J=UAADH>J=HAD=?Q=DDRJKH>;?DHI=H=SSA@HHIA BAK;BHAQ=J;R?HD;S=DDAHD=?Q:>=<>:>H>AD=?QHIAQ>D@:;DRBA;S@;?H>?OA?H=DDAHD=?Q:>=<>:>H>AD=HHIAQ=HA;SHIA S>?=?@>=:DH=HAJA?HD=?QHIA=J;R?HD;SBACA?RA=?QAXKA?DADQRB>?OHIABAK;BH>?OKAB>;QE@HR=:BADR:HD@;R:Q Q>SSABSB;JHI;DAADH>J=HADE # a-8b-7ca-8b]d/6e-f17.8 g>OI:L:>`R>QQA?DHBRJA?HDW>HI;B>O>?=:J=HRB>H>AD;SHIBAAJ;?HID;B:ADDWIA?KRB@I=DAQ=BA @;?D>QABAQH;C=:A?HDE # h-60i-f/1 IA@=BBL>?OC=:RAD;S@=DI=?Q@=DIA`R>C=:A?HD!QAK;D>HDW>HI@:A=B>?O;BO=?>P=H>;?D!BA@A>C=<:AD!;HIAB =DDAHD=?QKBAK=>QAXKA?DAD!=?Q=@@;R?HDK=L=<:A=?Q=@@BRAQ:>=<>:>H>AD=KKB;X>J=HAS=>BC=:RAQRAH;HIADI;BH KAB>;Q;SH>JAH;J=HRB>HLE # h/076./01j]d/65^17.j-7ck1-81b2fcl^502e1^17.8 RB?>HRBA!A`R>KJA?H!=?Q:A=DAI;:Q>JKB;CAJA?HD=BABA@;BQAQ=?Q@=BB>AQ=H@;DH!?AH;S=@@RJR:=HAQ QAKBA@>=H>;?=?Q=J;BH>P=H>;?EAKBA@>=H>;?;SSRB?>HRBA=?QA`R>KJA?H>D@;JKRHAQ;?=DHB=>OIHV:>?A<=D>D ;CAB=HIBAAH;DACA?VLA=BKAB>;QEJ;BH>P=H>;?;S:A=DAI;:Q>JKB;CAJA?HD>D@;JKRHAQ;?=DHB=>OIHV:>?A<=D>D ;CABHIADI;BHAB;SHIAHABJ;SHIA:A=DA;BRDASR::>SAEmIA?=DDAHD=BABAH>BAQ;B;HIABW>DAQ>DK;DAQ!HIA@;DH =?QBA:=HAQ=@@RJR:=HAQQAKBA@>=H>;?;B=J;BH>P=H>;?=BABAJ;CAQSB;JHIA=@@;R?HD=?Q=?LBADR:H>?OO=>?;B :;DD>DBAS:A@HAQ>??AH>?@;JAS;BHIAKAB>;QEIA@;DH;SJ=>?HA?=?@A=?QBAK=>BD>D@I=BOAQH;AXKA?DA=D >?@RBBAQE>O?>S>@=?HBA?AW=:D=?QH=:>PAQE # l7n2^1o-p18 IA;JK=?L>DHBA=HAQ=?QH=XAQ=D=K=BH?ABDI>KS;BSAQAB=:>?@;JAH=XKRBK;DADE@@;BQ>?O:L!=?L SAQAB=:H=X:>=<>:>HL>DHIABADK;?D><>:>HL;SHIAJAJ?=?@>=:DH=HAJA?HDBAS:A@H=:>=<>:>HLS;BDH=HA>?@;JA H=XADS;BHIAAX=DB=?@I>DAFJ=BO>?NH=XWI>@I>D=?;<:>O=H>;?;SHIA;JK=?LE {7}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 Tax benefits associated with uncertain tax positions are recognized in which one of the following conditions is satisfied: (1) the more likely than not recognition threshold is satisfied; (2) the position is ultimately settled through negotiation or (3) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. #### Receivable from clearing broker The Company records a receivable due from its clearing broker-dealer for revenue earned since amounts are typically not collected until ten days after month-end. The opening and closing receivable balances for Principal transactions, net and Commissions on brokerage activities was: | | | | December 31, 2024 December 31, 2023 | | | |-------------|--|---------|----------------------------------------|---------|--| | Receivables | | 306.654 | | 115.260 | | #### Credit losses The Company accounts for estimated credit losses on financial assets in accordance with FASB ASC 326-20, Financial Instruments - Credit Losses. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. An allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at market value, including other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards. The Company did not record any allowances for credit losses as of December 31, 2024. #### Other intangible assets Effective January 1, 2016, the Company adopted ASU 2014-07, Pushdown Accounting. The effect of this change was to record previously unrecorded intangible assets at their fair values as of December 31, 2010, when the Company was purchased by its parent company, less amortization and impairment from that date through the adoption date of the accounting standard. The initial values of these assets were determined by an outside valuation firm and are amortized using the straight-line method over 10 years for customer lists and 4 years for the noncompete agreements. The expected useful lives of customer lists are analyzed periodically to assess the expected future economic benefit that the Company will derive from these relationships. Trade names recorded by the Company are considered indefinite lived assets and are not subject to amortization. The Company tests for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If such indicators exist, the Company compares the undiscounted cash flows related to the asset with the carrying value of the asset. If the carrying value is greater than the undiscounted cash flows, an impairment charge is recorded for amounts necessary to reduce the carrying value of the asset to fair value. {8}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 Single Reportable Segment The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including commissions on brokerage activities, revenue from principal transactions, and interest income. The Company has identified its managing director as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the same as those described in the summary of significant accounting policies. #### 2. DEPOSIT WITH CLEARING ORGANIZATION The Company is required to maintain a minimum deposit of \$500,000 with its clearing broker-dealer, Raymond James Clearing Corporation. Effective March 13, 2023, the Company entered into a second clearing agreement with Pershing LLC where it's minimum deposit requirement is also \$500,000. As of December 31, 2024, the deposit total was \$1,051,475 which includes interest earned and investments in U.S. Treasury bills valued at \$506,267 and reported in Investments on the Statement of Financial Condition. ## 3. FURNITURE, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS Furniture, equipment, and leasehold improvements as of December 31, 2024 were as follows: | | Depreciable | | | |----------------------------------------------------------------------|-------------|-----------|-------------| | | | Cost | Lives | | Furniture and fixtures | | 68,523 | 7 Years | | Equipment and software | | 149,228 | 3 - 5 Years | | Leasehold improvements | | 272,480 | 4 - 7 years | | Less: Accumulated depreciation and amortization | | (452,679) | | | Total fixed assets, net of accumulated depreciation and amortization | | 37,552 | | #### 4. OTHER INTANGIBLE ASSETS Other intangible assets consist of the following: | Customer Lists | ನಿ | 15,758,600 | |--------------------------|----|--------------| | Non-compete agreements | | 1,996,720 | | | | 17,755,320 | | Prior Impairment | | (2,470,964) | | Accumulated Amortization | | (15,284,356) | | | ನಿ | | | Trade name | | 4,700,000 | | Prior impairment | | (3,300,000) | | | | 1,400,000 | | Total Other Intangibles | ಿರ | 1,400,000 | | | | | {9}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 #### 5. STATE INCOME TAXES The components of the 2024 state income tax liability were as follows: | Current | 21.914 | |----------------------|--------| | Income tax liability | 21.914 | The Company had no accrual for interest or penalties for uncertain tax positions as of December 31, 2024. Texas state tax returns are generally subject to examination over the period governed by the statute of limitations, generally four years from the original due date. #### 6. MEMBERSHIP INTERESTS The Company has 1,000 common units and 100 special units of membership interests authorized, issued and outstanding. This comprised all of the outstanding units of member's equity at December 31, 2024. #### 7. 401(k) EMPLOYEE SAVINGS PLAN The Company's employees are included in the Global Financial Services, L.L.C qualified 401(k) employee savings plan. The Company provides a match of up to 3% of the employees first 6% eligible salary deferral compensation each year. The employee fully vests in the Company's match contribution after 3 years of service #### 8. FAIR VALUE OF FINANCIALS INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including the market, income or cost approaches. The fair value model establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's own assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs to the valuation hierarchy are unadjusted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. As of December 31, 2024, the Company held U.S. Treasury bills classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices derived from active markets. {10}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 The Company's Level 2 investments are fixed income corporate bonds which are valued based upon pricing feeds from pricing services used by the Company's clearing broker at December 31, 2024. The following table presents the Company's fair value hierarchy for these investments measured at fair value on a recurring basis as of December 31, 2024: | Investments | Amount | Fair Value Level | |------------------------------|---------|------------------| | U.S. Treasury Bills | 506-267 | Level I | | Fixed Income Corporate Bonds | 59.484 | l evel 2 | ## 9. COMMITMENTS AND CONTINGENCIES The Company's customer base consists of individuals and entities located mostly outside of the United States. Deposits with and receivables from the clearing organizations are with the Company's clearing brokerdealers. The Company has an uncommitted financing arrangement with its clearing broker-dealers that finances its customer accounts, certain broker-dealer balances, and firm trading positions. Although these customer accounts and broker-dealer balances are not reflected in the Statement of Financial Condition for financial reporting purposes, the Company has generally agreed to indemnify its clearing broker-dealers for losses it may sustain in connection with the accounts, and therefore, retains risk on these accounts. The Company is required to maintain a minimum of \$500,000 of certain cash or securities on deposit with each of its clearing broker-dealers. The deposit with clearing organizations amounted to \$1,051,475 as of December 31, 2024. ## 10. LEASES The Company has an operating lease of office space with a remaining lease term of 55 months. Total rent expense for the Company's operating lease was \$303,510 for the year ended December 31, 2024. Future minimum commitments under this operating lease are as follows: | Year Ending December 31, | | | |---------------------------------|----|--------------| | 2025 | | 333,934 | | 2026 | | 339,906 | | 2027 | | 345,878 | | 2028 | | 351,850 | | 2029 | | 208,522 | | Total minimum payments required | ಳು | 1,580,092 | | Less imputed interest | | (278,540) | | Total operating lease liabiity | | \$ 1,301,552 | Supplemental information related to the operating lease as of December 31, 2024 are as follows: Weighted average remaining lease term: 55 months Weighted average discount rate: 8.5% {11}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 On December 31, 2024 the operating lease ROU asset amounted to \$1,124,903 and the operating lease liability amounted to \$1,301,552. The Company also has sublease agreements with subtenants one of which was renewed to extend the term from February 1, 2024 through January 31, 2025. After January 31, 2025, the sublease will be automatically renewed for an additional year beginning on February 1 and ending January 31 of the following year. The automatic renewal will continue each year until written notice of non-renewal is provided by the Company or the Subtenant. The second of these agreements is extended on a month by month basis until written notice of non-renewal is provided to the Company by the subtenant. The total rental income earned December 31, 2024 was \$106,421. This amount is included in Other income on the Statement of Operations. #### 11. CONCENTRATIONS OF RISK The Company executes, as agent, securities transactions on behalf of its customers. If either the customer or a counterparty fails to perform, the Company may be required to discharge the obligations of the nonperforming party. In such circumstances, the Company may sustain a loss if the market value of the security differs from the contract value of the transaction. The Company's customer security transacted on either a cash or margin basis. In margin transactions, the customer is extended credit by the clearing broker-dealer, subject to various regulatory margin requirements, collateralized by cash and securities in the customer's account. In connection with these activities, the Company executes customer transactions with the clearing broker-dealer involving the sale of securities not yet purchased (short sales). In the event the customer fails to satisfy its obligation; the Company may be required to purchase financial instruments at prices in order to fulfill the customer's obligations. Cash and cash equivalents include demand deposits with the Company's clearing broker-dealer which are not insured. The Company is subject to credit risk to the extent that its deposits with commercial banks exceed the Federal Deposit Insurance Corporation insurable limit of \$250,000. #### 12. RELATED PARTY TRANSACTIONS The Company is affiliated with an entity registered under the Investment Advisers Act of 1940 to conduct investment advisory services. The affiliate reimbursed the Company in cash on a periodic basis. Amounts receivable from the affiliate totaling \$2,116,800 are included in Other Assets in the accompanying Statement of Financial Condition. Such amounts are non- interest bearing and are due on demand. The Company was also a member of a group of affiliated operating companies. These affiliates may make certain payments on the Company's behalf for general operating purposes. These amounts are reimbursed by the Company in cash on a periodic basis. In addition, employees of these affiliates may provide services to the Company. The Company charged the affiliates \$16,800 for overhead costs established in the applicable expense sharing agreement related to such services that is netted against Other expenses on the accompanying Statement of Operations. The expense sharing agreement with the affiliates were terminated effective September 1, 2024. {12}------------------------------------------------ # NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 #### 13. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (SEC Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. A further requirement is that equity capital may not be withdrawn, or cash distributions paid if this ratio would exceed 10 to 1 after such withdrawal or distribution. As of December 31, 2024, the Company had net capital, as defined, of \$2,017,310, which was \$1,917,310 in excess of the required minimum net capital of \$100,000. As of December 31, 2024, the Company had aggregate indebtedness of \$630,523 and its aggregate indebtedness to net capital ratio was .3 to 1. The Company periodically makes distributions of capital to its members at amounts that are determined not to have a detrimental effect on the net capital position at the time of withdrawal. #### 14. SUBSEQUENT EVENTS The Company has evaluated subsequent events through February 21, 2025, the date the financial statements were available to be issued and is not aware of any events which would require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.