# STUART PORTFOLIO CONSULTANTS, L.P. X-17A-5 (2021-03-01) — Broker-dealer annual report - Company: STUART PORTFOLIO CONSULTANTS, L.P. - Form: X-17A-5 - Filed: 2021-03-01 - Period: 2020-12-31 - Accession: 0001052455-21-000001 - CIK: 1052455 - File #: 8-50721 - Material weakness: No - Auditor: Fulvio & Associates LLP - Auditor location: New York, NY - Contact: Edward Cohen - Phone: 2035576070 - Website: fulviollp.com - Signed by: Stuart Oltchick (President) Original filing: https://www.sec.gov/Archives/edgar/data/1052455/000105245521000001/public.pdf --- {0}------------------------------------------------ # STUART PORTFOLIO CONSULTANTS L.P. STUART PORTFOLIO CONSULTANTS L.P. # FINANCIAL STATEMENT PURSUANT TO RULE 1721-5 UNDER THE SECURITES EXCHANGE ACT OF 1934 FINANCIAL STATEMENT PURSUANT TO RULE 17a—5 UNDER THE SECURITES EXCHANGE ACT OF 1934 DECEMBER 31, 2020 DECEMBER 31, 2020 > Pubfic Public {1}------------------------------------------------ UNITEDSTATES OMB APPROVAL SECURITIESANDEXCHANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020 UNITED STATES OMB APPROVAL SECURITIESAND EXCHANGE COMMISSION OMB Number: 3235—0123 Washington, D.C. 20549 Expires: August 31, 2020 Estimated average burden Estimated average burden 8- 50721 8- 5072 1 # ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0:XR)'(I:1II7IA-5 SEC FILE NUMBER ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0:"AIIRZT1II7IA-5 SEC FILE NUMBER FACING PAGE FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule l7a-5 Thereunder Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule l7a-5 Thereunder | BEGINNING
REPORT
FORTHE
FOR
THE
PERIOD
PERIOD
BEGINNING
REPORT | 01/01/2020
01/01/2020
MM/DD/YY
MM/DD/YY | AND
ENDING
AND
ENDING | 12/31/2020
12/31/2020
MM/DD/YY
MM/DD/YY | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------| | A.
A. | REGISTRANT
IDENTIFICATION
REGISTRANT
IDENTIFICATION | | | | Stuart
OF
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10028 | | (City)
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(State) | | (Zip
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— | | B.
B. | IDENTIFICATION
ACCOUNTANT
ACCOUNTANT
IDENTIFICATION | | | | ACCOUNTANT
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see | | | | {3}------------------------------------------------ ' ' '-- ' NewYork Ofiice: Connecticut Office: NewYork Ofiice: Connecticut Office: C e1' t lfl 6 d P M b l l C A C C 0 H 1'1t a n is 5West 37th Street, 4th Floor 95B Rowayton Avenue N'ewYork, NeWYork 10018 Rowayton, CT 06853 www.fulviollp.com C e I t if, e d P u b l t C A C C 0 u #1 t a n H SWest 37th Street, 4th Floor 95B Rowayton Avenue NewYork, NewYork 10018 Rowayton, CT 06853 wwwfulviollp.com TEL: 212—490—351 13 TEL: 203—857—4400 FAX: 212—575—5159 FAX: 203—857-0280 TEL: 212—490-31 13 TEL: 203—857-4400 FAX: 212—575-5159 FAX: 203—857—0280 # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Partners' of Stuart Portfolio Consultants L.P. To the Partners' of Stuart Portfolio Consultants L.P. # Opinion on the Financial Statement Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Stuart Portfolio Consultants LP. (the "Partnership") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Partnership as of December 31, 2020 in conformity with accounting principles generally accepted in the United States ofAmerica. We have audited the accompanying statement of financial condition of Stuart Portfolio Consultants LP. (the "Partnership") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Partnership as of December 31, 2020 in conformity with accounting principles generally accepted in the United States ofAmerica. # Basis for Opinion Basis for Opinion This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Dyersight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the US. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership'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 Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is fiee of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement ofthe 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 statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We 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 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 financial statement, whether due to error or fiaud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in thefinancial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. 2% 4%90240" , LL10 %J; fléépo'ara, LL49 We have served as the Partnership's auditor prior to 2015. We have served as the Partnership's auditor prior to 2015. New York, New York March 1, 2021 New York, New York March 1, 2021 {4}------------------------------------------------ # STUART PORTFOLIO CONSULTANTS L.P. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 STUART PORTFOLIO CONSULTANTS L.P. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 ### ASSETS ASSETS | Cash
Cash | | 80,467
80,467 | | |----------------------------------------------------------------------|----------|--------------------|--| | Consulting
Consulting
receivable
receivable
fees
fees | | 91,860
91,860 | | | Warrants
Warrants
owned
owned | | 10,500
10,500 | | | of
of
Rights
Rights
Use
Use
Asset
Asset | | 53,501
53,501 | | | Other
Other
assets
assets | | 38,240
38,240 | | | TOTAL
TOTAL
ASSETS
ASSETS | \$
\$ | 274,568
274,568 | | # LIABILITIES AND PARTNERS' CAPITAL LIABILITIES AND PARTNERS' CAPITAL ### Liabilities: Liabilities: | Accounts
Accounts
payable
payable
Liability
Liability
Lease
Lease | \$
\$ | 50,267
50,267
53,501
53,501 | |------------------------------------------------------------------------------------------------------------|----------|--------------------------------------| | TOTAL
LIABILITIES
LIABILITIES
TOTAL | | 103,768
103,768 | | capital
Partners'
Partners'
capital | | 170,800
170,800 | | TOTAL
CAPITAL
TOTAL
PARTNERS'
CAPITAL
PARTNERS' | | 170,800
170,800 | | LIABILITIES
LIABILITIES
AND
AND
TOTAL
TOTAL
CAPITAL
CAPITAL
PARTNERS'
PARTNERS' | | 274,568
274,568 | The accompanying notes are an integral part ofthese financial statement. The accompanying notes are an integral part ofthese financial statement. {5}------------------------------------------------ ### NOTE 1. ORGANIZATION AND NATURE OF BUSINESS ACTIVITY NOTE 1. ORGANIZATION AND NATURE OF BUSINESS ACTIVITY Stuart Portfolio Consultants LP. (the "Partnership") was formed on January 28, 1998 under the laws of the state of Delaware as a limited partnership. The Partnership is registered as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. The Partnership earns consulting fees by acting as a selling agent for private placement investments or direct participation interests in other investment vehicles. Accordingly, the Partnership does not carry customers' accounts and does not receive, deliver or hold cash or securities in connection with its selling activities. Fees from these activities are earned quarterly based on a percentage of the fees charged by the investment partnerships to the underlying investors. The General Partner of the Partnership is Stuart Portfolio Consultants LLC (the "General Partner"). Stuart Portfolio Consultants LP. (the "Partnership") was formed on January 28, 1998 underthe laws of the state of Delaware as a limited partnership. The Partnership is registered as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. The Partnership earns consulting fees by acting as a selling agent for private placement investments or direct participation interests in other investment vehicles. Accordingly, the Partnership does not carry customers' accounts and doesnot receive, deliver or hold cash or securities in connection with its selling activities. Fees from these activities are earned quarterly based on a percentage of the fees charged by the investment partnerships to the underlying investors. The General Partner of the Partnership is Stuart Portfolio Consultants LLC (the "General Partner"). #### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES # Basis of presentation Basis of presentation The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. The General Partner believes that the estimates utilized in preparing its financial statements are reasonable and prudent, however, actual results could differ from these estimates. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. The General Partner believes that the estimates utilized in preparing its financial statements are reasonable and prudent, however, actual results could differ from these estimates. ### Cash and cash equivalents Cash and cash equivalents The Partnership considers all highly liquid investments purchased with a maturity ofthree months orless to be cash equivalents. The Partnership considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. ### Income taxes Income taxes No provision for federal or state income taxes has been made since the Partnership is not a taxable entity. The partners are individually liable forthe taxes on their share of the Partnership's income or loss. The Partnership is, however, subject to the New York City Unincorporated Business Tax ("UBT"). No provision for federal or state income taxes has been made since the Partnership is not a taxable entity. The partners are individually liable for the taxes on their share of the Partnership's income or loss. The Partnership is, however, subject to the New York City Unincorporated Business Tax ('6UBT99). {6}------------------------------------------------ #### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ### Income taxes (continued) Income taxes (continued) ASC 740 provides guidance forhow uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation oftax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more—likely—than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likelythan—not threshold would be recorded as a tax benefit or expense in the current year. The tax years that remain subject to examination are 2019, 2018 and 2017. The Partnership determined thatthere are no uncertain tax positions which would require adjustments ordisclosures on the financial statements. ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented anddisclosed in the financial statements. ASC 740 requires the evaluation oftax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more-likely-than-not" ofbeing sustained by the applicable tax authority. Tax positions not deemed to meet the more-likelythan—not threshold would be recorded as a tax benefit or expense in the current year. The tax years that remain subject to examination are 2019, 2018 and 2017. The Partnership determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements. The Partnership has a deferred UBT income tax asset of approximately \$62,000 at December 31, 2020 related to the net operating loss carry forwards. A valuation allowance has been established offsetting the \$62,000, as the ultimate realization of these benefits is uncertain. The Partnership had net operating loss carry forwards of approximately \$1,543,000 as ofDecember 31, 2020 which begin to expire in 2031. The Partnership has a deferred UBT income tax asset of approximately \$62,000 at December 31, 2020 related to the net operating loss carry forwards. A valuation allowance hasbeen established offsetting the\$62,000, as the ultimate realization of these benefits is uncertain. The Partnership hadnet operating loss carry forwards of approximately \$1,543,000 as of December 31, 2020 which begin to expire in 2031. # Concentrations of credit risk Concentrations of credit risk The Partnership maintains its cash balances at financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to \$250,000. The Partnership maintains its cash balances at financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to \$250,000. In the course of its business, the Partnership enters into engagements with various clients. In the event clients do not fulfill their obligations, the Partnership may be exposed to risk. The risk of default depends on the credit worthiness of the client. It is the Partnership's policy to review, as necessary, the credit standing ofeach client with which it conducts business and, generally, requires no collateral from its clients. There were no accounts receivable amounts written-off in 2020. In the course of its business, the Partnership enters into engagements with various clients. In the event clients do not fulfill their obligations, the Partnership may be exposed to risk. The risk of default depends on the credit worthiness of the client. It is the Partnership's policy to review, as necessary, the credit standing ofeach client with which it conducts business and, generally, requires no collateral from its clients.There were no accounts receivable amounts written-off in 2020. {7}------------------------------------------------ #### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ## Allocation ofprofits and losses Allocation ofprofits and losses The Partnership's netincome or loss for any fiscal year is allocated to all the partners in accordance with their percentage interests as defined in the Partnership's limited partnership agreement. The Partnership's net income or loss for any fiscal year is allocated to all the partners in accordance with their percentage interests as defined in the Partnership's limited partnership agreement. # Fair value of financial instruments Fair value of financial instruments The fair value of the Partnership's assets and liabilities, which qualify as financial instruments under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825 "Financial Instruments — Overall Disclosure", approximates the carrying amounts presented in the statement of financial condition. The fair value of the Partnership's assets andliabilities, which qualify as financial instruments under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825 "Financial Instruments — Overall Disclosure", approximates thecarrying amounts presented in the statement offinancial condition. ### Warrants Owned Warrants Owned Equity Warrants are recorded on a trade-date basis and are carried at fair value. Realized gains and losses on these warrants are included in the accompanying statement ofoperations. The difference between the costand the fair value of open warrants is reflected as unrealized appreciation or depreciation on warrants, and any change in thatamount from the prior year is reflected as net change in unrealized appreciation or depreciation ofwarrants in the accompanying statement of operations. Interest income is recognized under the accrual basis. Dividend income is recognized on the eX-dividend date. Equity Warrants are recorded on a trade-date basis andare carried at fair value. Realized gains and losses on these warrants are included in the accompanying statement ofoperations. The difference between the cost and the fair value of open warrants is reflected as unrealized appreciation or depreciation on warrants, and any change in that amount from the prior year is reflected as net change in unrealized appreciation or depreciation ofwarrants in the accompanying statement of operations. Interest income is recognized under the accrualbasis. Dividend income is recognized on the ex-dividend date. ### NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS As described in Note 2, the Partnership records its investments at fair value. Fair value is 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. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the levelofjudgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. As described in Note 2, the Partnership records its investments at fair value. Fair value is 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. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities recorded atfair value are categorized within the fair value hierarchy based upon the level ofjudgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. {8}------------------------------------------------ ### NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) The three levels ofthe fair value hierarchy are described below: The three levels ofthe fair value hierarchy are described below: - Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Partnership has the ability to access at the measurement date. The types of investments in Level 1 in active markets include listed equities and listed derivatives. Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Partnership has the ability to access at the measurement date. The types of investments in Level 1 in active markets include listed equities andlisted derivatives. - Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly orindirectly. Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly. - Level 3: Inputs that are unobservable for the asset or liability and that include situations where there is little, if any, market activity for the asset or liability. Level 3: Inputs that are unobservable for the asset or liability and that include situations where there is little, if any, market activity for the asset or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models orinputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree ofjudgment exercised in determining fair value is greatest for instruments categorized in Level 3. The availability of observable inputs canvary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yetestablished in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree ofjudgment exercised in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. In certain cases, the inputs used to measure fair value mayfall into different levels of the fair value hierarchy. In suchcases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The Partnership assessed the Warrants owned at Level 3 forthe year ended December 31, 2020. The Partnership assessed the Warrants owned at Level 3 for the year ended December 31, 2020. {9}------------------------------------------------ ### NOTE 4. NET CAPITAL REQUIREMENTS NOTE 4. NET CAPITAL REQUIREMENTS The Partnership is subject to the SEC Uniform Net Capital Rule (SEC Rule l5c3-1), 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.Equity capital may notbe withdrawn or cash dividends paid ifthe resulting net capital ratio would exceed, 10 to 1. At December 31, 2020, the Partnership had net capital of \$30,200, which was \$25,200 in excess ofits required net capital of \$5,000. The Partnership's net capital ratio was 1.66 to 1. The Partnership does not handle cash or securities on behalfof customers. Therefore, the Partnership is exempt from SEC Rule 15c 3—3. The Partnership is subject to the SEC 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. Equity capital may not be withdrawn or cash dividends paid ifthe resulting net capital ratio would exceed, 10 to 1. At December 31, 2020, the Partnership had net capital of \$30,200, which was \$25,200 in excess ofits required net capital of \$5,000. The Partnership's net capital ratio was 1.66 to 1. The Partnership doesnot handle cash or securities on behalfof customers. Therefore, the Partnership is exempt from SEC Rule 150 3—3. #### NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES On November 1, 2012 the Partnership renewed its original lease term to commence on November 1, 2016 and end on October 31, 2021. The annual rent under the agreement is \$64,800. The lease agreement called for a security deposit in the amount of \$8,100, which will be returned at the end of the lease term. As such, it has been determined by the Company this is a lease under the provisions ofASC 842. On November 1, 2012 the Partnership renewed its original lease term to commence on November 1, 2016 and end on October 31, 2021. The annual rent under the agreement is \$64,800. The lease agreement called for a security deposit in the amount of \$8,100, which will be returned at the endof the lease term. As such, it has been determined by the Company this is alease under the provisions ofASC 842. As of December 31, 2020, future minimum lease rental payments are \$54,000 for the period ending October 31, 2021. As of December 31, 2020, filture minimum lease rental payments are \$54,000 for the period ending October 31, 2021. The Partnership had no equipment rental commitments, no underwriting commitments, and no contingent liabilities at December 31, 2020 or during the year then ended. The Partnership had no equipment rental commitments, no underwriting commitments, and no contingent liabilities at December 31, 2020 or during the year then ended. ### NOTE 6. GUARANTEES NOTE 6. GUARANTEES FASB ASC 460, Guarantees, requires the Partnership to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security ofa guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as wellas indirect guarantees ofthe indebtedness of others FASB ASC 460, Guarantees, requires the Partnership to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance alsodefines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees ofthe indebtedness of others The Partnership has issued no guarantees effective at December 31, 2020 or during the year then ended. The Partnership has issued no guarantees effective at December 31, 2020 or during the year then ended. {10}------------------------------------------------ #### NOTE 7. PAYCHECK PROTECTION PROGRAM LOAN NOTE 7. PAYCHECK PROTECTION PROGRAM LOAN In early 2020, an outbreak of a novel strain of coronavirus (COVID-l9) emerged globally. As a result, there have been mandates from federal, state and local authorities resulting in an overall decline in economic activity. The government issued the CARES Act earmarking over \$600 million through the Paycheck Protection Program (PPP), administered by the Small Business Administration, for potentially forgivable loans to support eligible small businesses impacted by COVID—19. In early 2020,an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. As a result, there havebeenmandates from federal, state and local authorities resulting in an overall decline in economic activity. The government issued the CARES Act earmarking over \$600 million through the Paycheck Protection Program (PPP), administered by the Small Business Administration, for potentially forgivable loans to support eligible small businesses impacted by COVID—19. During 2020, the Partnership applied for and received a PPP loan in the amount for \$17,600. The loan bears interest at a rate of 1% per annum and the maturity is May 1, 2022. As ofDecember 31, 2020, the Partnership determined that the loan shall be fully forgiven in accordance with its terms, therefore, such amount was considered as other income and was included in the statement of operations. On January 11,2021, the Partnership received the notification of the forgiveness ofthe loan and interest in full. During 2020, the Partnership applied for and received a PPP loan inthe amount for \$17,600. The loan bears interest at a rate of1% per annum and the maturity is May 1, 2022. As ofDecember 31, 2020, the Partnership determined that the loan shall be fully forgiven in accordance with its terms, therefore, such amount was considered as other income and was included in the statement of operations. On January 11, 2021, the Partnership received the notification of the forgiveness of the loan and interest in full. #### NOTE 8. SUBSEQUENT EVENTS NOTE 8. SUBSEQUENT EVENTS Subsequent events have been evaluated through March 1, 2021 , the date the financial statements were available to be issued. There have been no events requiring recognition or disclosure in the financial statements. Subsequent events have been evaluated through March 1, 2021, the date the financial statements were available to be issued.There havebeenno events requiring 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.