# MONARCH CAPITAL GROUP, LLC X-17A-5 (2022-03-01) — Broker-dealer annual report - Company: MONARCH CAPITAL GROUP, LLC - Form: X-17A-5 - Filed: 2022-03-01 - Period: 2021-12-31 - Accession: 0001090020-22-000001 - CIK: 1090020 - File #: 8-51911 - Type: Broker-dealer - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Edward Cohen - Phone: 203-5576070 - Email: mpotter@monarch-capital.com - Website: monarch-capital.com - Signed by: Michael Potter (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1090020/000109002022000001/public.pdf --- {0}------------------------------------------------ # MONARCH CAPITAL GROUP LLC STATEMENT OF FINANCIAL CONDITION MONARCH CAPITAL GROUP LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 DECEMBER 31, 2021 > PUBLIC PUBLIC {1}------------------------------------------------ # "N'TEDSTATES OMEmiZI'ZZEE'fi; SECURITIES AND EXCHANGE COMMISSION Expires: Oct 3'1, 2023 Washington, D.C. 20549 Estimated average burden "N'TEDSTATES OMENU%"£EfZZ§S\$i§3 SECURITIES AND EXCHANGE COMMISSION Expires: Oct.3'1, 2023 Washington, D.C. 20549 Estimated average burden hours per response: 12 hours per response: 12 # FORM X-17A-5 PART III FORM X-17A-5 PART III FACING PAGE FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 Information Required Pursuant to Rules 17a-5, 173-12, and 183-7 underthe Securities Exchange Act of1934 FILING FOR THE PERIOD BEGINNING 01/01/2021 AND ENDING 12/31/2021 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION FILING FOR THE PERIOD BEGINNING 01/01/2021 AND ENDING 12/31/2021 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME 0|: FIRM: Monarch Capital Group, LLC NAMEOFHRM:M0narCh Capital Group, LLC TYPE OF REGISTRANT (check all applicable boxes): TYPE OF REGISTRANT (check all applicable boxes): El Broker-dealer |:| Security-based swap dealer |:| Major security-based swap participant CI Check here if respondent is also an OTC derivatives dealer E Broker-dealer D Security-based swap dealerD Major security-based swap participant CI Check here ifrespondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a PO. box no.) ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (DO notuse a P.O. box no.) | 370 | Lexington | Avenue, | Suite | 308 | | |-----|-----------|---------|-------|-----|--| | 370 | Lexington | Avenue, | Suite | 308 | | | | | | | | | | | Street)
Street)
(No.
(No.
and
and | | |----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------| | York
New
York
New | NY
NY | 10017
10017 | | (City)
(City) | (State)
(State) | (Zip
(Zip
Code)
Code) | | WITH
TO
CONTACT
CONTACT
WITH
PERSON
PERSON
TO | TO
REGARD
REGARD
TO
THIS
THIS
FILING
FILING | | | Potter
Michael
Michael
Potter | (212)
(212)
808—4380
808-4380 | mpotter@monarch—capita1.com
mpotter@monarch-capital.com | | (Name)
(Name) | Telephone
Number)
(Area
Code
Telephone
Number)
(Area
Code
—
— | (Email Address)
(Email
Address) | | | ACCOUNTANT
ACCOUNTANT
IDENTIFICATION
IDENTIFICATION
B.
B. | | | INDEPENDENT
INDEPENDENT
ACCOUNTANT
ACCOUNTANT
PUBLIC
PUBLIC | whose
reports
reports
contained
contained
whose
are
are | filing*
filing*
this
this
in
in | | Berkower,
Berkower,
LLC
LLC | | | | | if
if individual,
individual,state
last, first,
first,
(Name
state
and
(Name
last,
and
—
— | middle
middle
name)
name) | | | OFFICIAL
ONLY
ONLY
FOR
FOR
OFFICIAL
USE
USE | | | |------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------| | of Registration
with
of Registration
with
applicable)
(Date
(Date
PCAOB)(if
applicable)
PCAOB)(if | | Registration
Registration
(PCAOB
(PCAOB | if
Number,
if
applicable)
Number,
applicable) | | | | 2
2
1
1
7
7 | | | (Address)
(Address) | (City)
(City) | (State)
(State) | (Zip
Code)
Code)
(Zip | | 517
Route
1,Suite
Suite
517
Route
1,
4103
4103 | Iselin
Iselin | NJ
NJ | 08830
08830 | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. \* Claims for exemption from the requirement that the annualreports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a—5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. 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. {2}------------------------------------------------ #### OATH on AF—FtR'MAIlon OATH OR AFFIRMATIDN I, Michael Potter , swear (or affirm) that, to thebest of my knowledge and belief, the financial report pertaining to the firm of Monarch Capital Group, LLC . as 0f December 3 1 . 20 :71 . is true and correct. I further swear (or affirm) that neither the company nor antiI partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in ampv account classified solelyr as that of a customer. l, Michael Potter , swear (or affirm) that, to thebest of my knowledge and belief, the financial report pertaining to the firm of Monarch Capital Group. LLC . as of December 31 . 2o 71 . is trUe and correct. Ifurther swear ior affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_2.jpeg) Signature:W Signature:W Chief Executive Officer Notary Publicaw" Notary Public # This filing" contains [check all applicable-boxes): This filing" contains [check all applicable boxes): a - Y (a) Statement of financial condition. iai Statement of financial condition. - lb] Notes to consolidated statement of financial condition. (bi Notes to consolidated statement: of fine nciai condition. - E] DUE] DDDDDEIEIU DEE .(c) Statement of income (loss) or, if there is. other comprehensive income in the periodls') presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S—X). El DUE DDDDEIDDD DE! (cl Statement ofincome (loss) or,if there is other comprehensive income in the periodis') presented, a statement of comprehensive income (as defined in § 210.1—02 of Regulation S-X). - (d) Statement of cash flows. (:1) Statement ofcash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietors equity-.- (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - {fl Statement of changes in liabilities subordinated to claims of creditors. if) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statement-s. (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.13a-1, as applicable. in) 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. (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [i] Computation for determination of customer reserve requirements pursuant to Exhibit Ato 17 CFR 2402.15c3-3. lj) 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 240.135c3-3; or Exhibit A to 17 CFR 240.18a-4, as applicable. (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. - (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. (ii Computation for Determination of PAH Requirements under Exhibit A to § 240.15c3-3. - (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. rim) information relating to possession or control requirements for customers under 17 CFR 240.15.:'3-3. - (n) Information relating to possession or control requirements for security-based swap customers under '17 CFR 240.15c3-3lp)(2) or 17 CFR 240.1834, as applicable. in) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3ip)(2) or 17 CFR 240.18a—4, as applicable. - (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-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.183-4, as applicable, if material differences exist, or a statement that no material differencesexist. (0) Reconciliations, including appropriate explanations, ofthe FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3—3 or 17 CFR 240.183-4, as applicable, if material differences exist, or a statement that no material differences exist. - (p) Summary of financial data forsubsidiaries not consolidated in the statement of financial condition. ipi Summary of financial data for subsidiaries not consolidated in the. statement offinancial condition. - to) Oath or affirmation in accordance with 17 CFR 24D.17a—'5, 17-EEH'ZZIOT17a-12, or 17 CFR 240.13a-7, as applicable. (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17GFR24'UT17a-12, or 17 CFR 240.183-7, as applicable; - (r) Compliance report in accordance with 17 CFR 24017316 or 17 CFR 240.13a-7, as applicable. (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.183-7, as applicable. - (5] Exemption report in. accordance with 17 CFR 240.173-5 or 17 CFR 240.13a47, as applicable. (5) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.183-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. it) independent public accountant's report based on an examination of the statement offinancial condition. - (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.133-7, or 17 CFR 240173-12, asapplica bie. iui Independent public accoun'tant's report based on an examination of the financial report or financial statementszunder 17 CFR 240.17a—5, 17 CFR 240.183-7, or 17 CFR 240173—12, as applicable. - (v) Independent public accounta nt's report based on an examination of certain statements in the compliance report under 17 CFR 240.173-5 or 17 CFR 240.183-7, as applicable. (vi 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 24D..'17a-'5 or 17 CFR 240.133—7, as applicable. \_ (w) independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.1233, as applicable. ' \_ - (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 :CFR 240.15c3—1e or 17 CFR 240.17a-12, as applicable. (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3—1e or 17 CFR 240.17a-12, as applicable. - Cl El III III III DECIDED (3;) Report describing-any material inadequacies found to exist or fouwho have existedsince the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 24D.17a-12(k). El El Ci El El DBUDED (y) Report describing any material inadequacies found to exist or found to have existedsince the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k}. - (2) Other: (2) Other: - "To request confidential treatment of certain portions of this filing, see 17 CFR 240.12a'-5.(e1(3) or .17 .CFR.249.1—\_8a—7(d)(2), as oppfiCoble. "To request confidential treatment of certain portions of this filing, see 17 CFR 240.1.Zo<5{e}(3i or 17 .CFRZQOJSa—J'idir'Z), as applicable. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF' INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Sole- Member of Monarch Capital Group, LLC To the Sole Member of Monarch CapitalGroup, LLC #### Opinion on the Financial Statement Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Monarch Capital Group, LLC (the "Company") as of December 31, 2021 and the related notes (collectively referred to as the "Financial Statement"). In ouropinion, the Financial Statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of financial condition of Monarch Capital Group, LLC (the "Company") as of December 31,2021 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 Company as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion 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 ouraudit. 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 the US. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 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 ouraudit. 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 the US. 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 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. 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 orfraud. 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 usedand 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. We have served as the Company's auditor since 2018. We have served as the Company's auditor since 2018. Berkower LLC Berkower LLC lse-iin, New Jersey February 28,. 20.22. Iselin, New Jersey February 28, 2022 {4}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2021 DECEMBER 31, 2021 #### ASSETS ASSETS | Cash
Cash
and
cash
cash
equivalents
equivalents
and | \$1,572,270
\$1,572,270 | |------------------------------------------------------------------------------------------------|----------------------------| | broker
Receivable
Receivable
from
from
clearing
clearing
broker | 61,601
61,601 | | Securities
Securities
owned,
owned,
at
at
market
market
value
value | 67
67 | | asset
Right
Right
of
ofuse
asset
use | 440,982
440,982 | | Other
Other
assets
assets | 29,092
29,092 | | TOTAL
TOTAL
ASSETS
ASSETS | \$2,104,012
\$2,104,012 | #### LIABILITIES AND MEMBER'S EQUITY LIABILITIES AND MEMBER'S EQUITY | LIABILITIES
LIABILITIES
Accrued
Accrued
expenses
other
other
liabilities
expenses
and
and
liabilities
parent
parent
Due
Due
to
to
Lease
liability
Lease
liability | 33,965
33,965
\$
\$
199,749
199,749
479,327
479,327 | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|--|--|--| | TOTAL
TOTAL
LIABILITIES
LIABILITIES | 713,041
713,041 | | | | | MEMBER'S
MEMBER'S
EQUITY
EQUITY | 1,390,971
1,390,971 | | | | | TOTAL
TOTAL
LIABILITIES
LIABILITIES
AND
AND
MEMBER'S
MEMBER'S
EQUITY
EQUITY | \$2,104,012
\$2,104,012 | | | | {5}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS #### DECEMBER 31, 2021 DECEMBER 31,2021 #### 1. ORGANIZATION AND NATURE OF BUSINESS 1. ORGANIZATION AND NATURE OF BUSINESS Monarch Capital Group, LLC (the "Company") was organized under the Limited Liability Company Law of the State of New York in March 1999. The Company is a registered broker-dealer with the Securities and Exchange Commission and the Financial Industry Regulatory Authority. In this capacity, it executes agency transactions for its customers and fonNards all such transactions to Pershing, LLC ("Pershing") the Company's clearing agent, on a fully disclosed basis. In addition, the Company provides advisory services and originates, places, and acts as an agent for private equity, public offerings and bond securities. The Company is a wholly-owned subsidiary of Monarch Holdings, LLC. ("Holdings"). Monarch Capital Group, LLC (the "Company") was organized under the Limited Liability Company Law of theState of New York in March 1999. The Company is a registered broker-dealer with the Securities and Exchange Commission and the Financial Industry Regulatory Authority. In this capacity, it executes agency transactions for its customers and forwards all such transactions to Pershing, LLC ("Pershing") the Company's clearing agent, on a fullydisclosed basis. In addition, the Company provides advisory services and originates, places, and acts as an agent for private equity, public offerings and bond securities. The Company is a wholly-owned subsidiary of Monarch Holdings, LLC. ("Holdings"). In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in market (market risk) or failure of the other party to the transaction to perform (counterparty risk) exceeds the amounts recorded forthe transaction. In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in market (market risk) or failure of the otherparty to the transaction to perform (counterparty risk) exceeds the amounts recorded for the transaction. The Company's policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which it conducts business. The Company's policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which itconducts business. The Company introduces its customer transactions to Pershing with whom it has a correspondent relationship for execution and clearance in accordance with the terms of a clearance agreement. In connection therewith, the Company has agreed to indemnify Pershing for losses that the clearing broker may sustain related to the Company's customers. As of December 31, 2021, amounts were owed to the clearing broker by these customers, which were in connection with normal, delivery-against-payment, cashaccount transactions. Securities purchased by customers in connection with those transactions are held by the clearing broker as collateral for the amounts owed. The Company introduces its customer transactions to Pershing withwhom it has a correspondent relationship for execution and clearance in accordance with the terms of a clearance agreement. In connection therewith, the Company hasagreed to indemnify Pershing for losses that the clearing broker may sustain related to the Company's customers. As of December 31, 2021, amounts were owed to the clearing broker by these customers, which were in connection with normal, delivery-against—payment, cashaccount transactions. Securities purchased by customers in connection with those transactions areheldby the clearing broker as collateral for the amounts owed. #### 2. SIGNIFICANT ACCOUNTING POLICIES 2. SIGNIFICANT ACCOUNTING POLICIES The Company maintains its books and records on an accrual basis in accordance with accounting principles generally accepted in the United States of America The Company maintains its books and records on an accrual basis in accordance with accounting principles generally accepted in the United States of America {6}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31, 2021 # 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) which requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. which requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. #### Revenue recognition Revenue recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), as subsequently amended, that outlines a single comprehensive model for entities to use in accounting forrevenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industryspecific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also specifies the accounting for certain incremental costs of obtaining a contract, and costs to fulfilla contract with a customer. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), as subsequently amended, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industryspecific guidance. The core principle of the revenue modelis that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects theconsideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also specifies the accounting for certain incremental costs of obtaining a contract, and costs to fulfill a contract with a customer. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how toallocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations aresatisfied at a point in timeor over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### Commissions Commissions Brokerage commissions: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. Brokerage commissions: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date the Company fillsthe trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. {7}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) #### DECEMBER 31, 2021 DECEMBER 31, 2021 # 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) Investment advisory fees: The Company provides investment advisory services on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other penods. Investment advisory fees:The Company provides investment advisory services ona daily basis. The Company believes theperformance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and arerecognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. #### Investment Banking Investment Banking Underwriting fees: The Company underwrites securities for business entities that want to raise funds through a sale of securities. Revenues are earned from feesarising from securities offerings in which the Company acts as an underwriter. Revenue is recognized on the trade date (the date on which the Company purchases the securities from the issuer) for the portion the Company is contracted to buy. The Company believes that the trade date is the appropriate point in time to recognize revenue for securities underwriting transactions as there are no significant actions which the Company needs to take subsequent to this date and the issuer obtains the control and benefit of the capital markets offering at that point. Underwriting fees: The Company underwrites securities for business entities that want to raise funds through a sale of securities. Revenues are earned from fees arising from securities offerings in which the Company acts as an underwriter. Revenue is recognized on the trade date (thedate on which the Company purchases thesecurities from the issuer) for the portion the Company is contracted to buy. The Company believes that the trade date is the appropriate point in timeto recognize revenue for securities underwriting transactions as there areno significant actions which theCompany needs to take subsequent to this date and the issuer obtains the control and benefit of the capital markets offering at that point. UndenNriting costs that are deferred under the guidance in FASB ASC 940-340-25-3 are recognized in expense at the time the related revenues are recorded. In the event that transactions are not completed and the securities are not issued, the Company immediately expenses those costs. Underwriting costs that are deferred under the guidance in FASB ASC 940-340-25-3 are recognized in expense at the time the related revenues arerecorded. In the event that transactions are not completed and the securities are not issued, the Company immediately expenses those costs. M&A advisory fees: The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. M&A advisory fees: The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. {8}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31, 2021 #### 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) Security transactions and financing with the clearing broker are classified as operating activities on the statement of cash flows since this is the Company's principal business. Security transactions and financing with theclearing broker are classified as operating activities on the statement of cash flows since this is the Company's principal business. Fair Value - Definition and Hierarchy Fair Value -Definition andHierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Partnership uses various valuation approaches. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows: In determining fair value, the Partnership uses various valuation approaches. A fair value hierarchy for inputs is used in measuring fair value that maximizes the useof observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Partnership has the ability to access. Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Partnership has the ability to access. Level 2 - Valuations based on inputs, other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 2 -Valuations based on inputs, other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Level 3 - Valuations based on inputs that are unobservable andsignificant to the overall fair value measurement. Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Partnership's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, ratherthan an entity-specific measure. Therefore, even when market assumptions are not readily available, the Partnership's own assumptions are set to reflect those that market participants would usein pricing the assetor liability at the measurement date. {9}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31, 2021 # 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and notyet established in the marketplace, the liquidity ofmarkets, and other characteristics particular to the transaction. 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. Because of the inherent uncertainty ofvaluation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Partnership in determining fair value is greatest for investments 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, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including thetype of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. 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. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Partnership in determining fair value is greatest for investments 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, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement. Fair Value — Valuation Techniques and Inputs Fair Value — Valuation Techniques and Inputs Investments in securities and securities sold short that are freely tradable and are listed on major securities exchanges are valued at their last reported sales price as of the valuation date. Investments in securities and securities sold short that are freely tradable and are listed on major securities exchanges are valued at their last reported sales price as of the valuation date. Many over-the-counter ("OTC") contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that the marketplace participants are willing to pay for an asset. Ask prices represent the lowest price that the marketplace participants are willing to accept for an asset. For securities whose inputs are based on bid-ask prices, the Partnership's valuation policies do not require that fair value always be a predetermined point in the bid-ask range. The Partnership's policy for securities traded in the OTC markets and listed securities for which no sale was reported on that date are generally valued at their last reported "bid" price. Many over-the-counter ("OTC") contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that the marketplace participants are willing to pay for an asset. Ask prices represent the lowest price that the marketplace participants are willing to accept for an asset. For securities whose inputs are based on bid-ask prices, the Partnership's valuation policies do not require that fair value always be a predetermined point in the bid-ask range. The Partnership's policy for securities traded in the OTC markets and listed securities for which no sale wasreported on that date are generally valued at their last reported "bid" price. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Securities traded on inactive markets or valued by reference to similar instruments are generally categorized in Level 2 of the fair value hierarchy To the extent these securities are actively traded andvaluation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Securities traded on inactive markets or valued by reference to similar instruments aregenerally categorized in Level 2 of the fair value hierarchy {10}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31,2021 # 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) #### Accounting Standards Accounting Standards On January 1,2020, the Company adopted FASB ASC Topic 326 — "Financial Instruments — Credit Losses" ("ASC Topic 326") which replaces the incurred loss methodology with the current expected credit loss ("CECL") methodology. The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. Expected Credit losses on off-balance sheet credit exposures must be estimated over the contractual period the Company is exposed to credit risk as a result of a present obligation to extend credit. On January 1, 2020, the Company adopted FASB ASC Topic 326 — "Financial Instruments — Credit Losses" ("ASC Topic 326") which replaces the incurred loss methodology with thecurrent expected credit loss ("CECL") methodology. The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. Expected Credit losses onoff-balance sheet credit exposures must be estimated over the contractual period the Company is exposed to credit risk as a result of a present obligation to extend credit. The Company adopted ASC topic 326 using the modified retrospective approach for all in-scope assets. The impact of the adoption of the current expected credit loss ("CECL") methodology to the current period was not material. The Company adopted ASC topic 326 using the modified retrospective approach for all in-scope assets. The impact of the adoption of the current expected credit loss ("CECL") methodology to the current period wasnot material. Receivables from clearing broker: The Company's receivables from clearing broker include amounts receivable from unsettled trades, including amounts receivable for securities failed to deliver, accrued interest receivables and cash deposits. A portion of the Company's trades are cleared through a clearing organization and settled daily between the clearing organization and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. Receivables from clearing broker: The Company's receivables from clearing broker include amounts receivable from unsettled trades, including amounts receivable for securities failed to deliver, accrued interest receivables and cash deposits. A portion of the Company's trades are cleared through a clearing organization and settled daily between the clearing organization and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. #### 3. FAIR VALUE MEASUREMENTS 3. FAIR VALUE MEASUREMENTS The Company's assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 2. The following table presents information about the Company's assets and liabilities measured at fair value as of December 31, 2021: The Company's assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 2. The following table presents information about the Company's assets and liabilities measured at fair value as of December 31, 2021: {11}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31,2021 #### 3. FAIR VALUE MEASUREMENTS (continued) 3. FAIR VALUE MEASUREMENTS (continued) | Assets
(atfair
fair
Assets
(at
value)
value) | Level
Level | 1
1 | Level
Level | 2
2 | Level
Level | 3
3 | Total
Total | |----------------------------------------------------------------------------------------------------------|----------------|----------|----------------|--------|----------------|--------|----------------------| | Investments
securities
securities
Investments
in
in
Common
Common
stock
stock | \$
\$ | 67
67 | \$
\$ | 0
0 | \$
\$ | 0
0 | 67
67
\$
\$ | #### 4. PROVISION FOR INCOME TAXES 4. PROVISION FOR INCOME TAXES The Company is recognized as a single member Limited Liability Company (an "LLC") by the Internal Revenue Service. As such, it is treated as a disregarded entity and is not subject to income taxes. The Company's income or loss is reportable by its Parent on its tax return. However, the Company is subject to New York City Unincorporated Business Tax, and a \$5,900 provision is included in the statement of operations. The Company is recognized as a single member Limited Liability Company (an "LLC") by the Internal Revenue Service. As such, it is treated as a disregarded entity and is not subject to income taxes. The Company's income or loss is reportable by its Parent on its tax return. However, the Company is subject to New York City Unincorporated Business Tax, and a \$5,900 provision is included in the statement of operations. FASB provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. The tax years that remain subject to examination are 2018, 2019, 2020 and 2021. For the year ended December 31, 2021 management has determined that there are no material uncertain income tax positions. FASB provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-Iikely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. The tax years that remain subject to examination are 2018, 2019, 2020 and 2021.For the year ended December 31, 2021 management has determined that there are no material uncertain income tax positions. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in portfolio maintenance fees, if assessed. No interest expense or penalties have been assessed forthe period ended December 31, 2021. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in portfolio maintenance fees, ifassessed. No interest expense or penalties have been assessed for the period ended December 31, 2021. {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) #### DECEMBER 31, 2021 DECEMBER 31,2021 #### 5. RELATED PARTY TRANSACTION 5. RELATED PARTY TRANSACTION The Company has an agreement with the Parent in which certain overhead expenses incurred by the Parent are allocated to the Company for its allowable share. In addition, 100% reimbursement is made to the Parent for expenses directly related to the Company. Included in the statement of operations, in the respective accounts, is \$183,910, which include rent, travel and entertainment, office, data services and other expenses. The Company has an agreement with the Parent in which certain overhead expenses incurred by theParent are allocated to the Company for its allowable share. In addition, 100% reimbursement is made to theParent for expenses directly related to the Company. Included in the statement of operations, in the respective accounts, is \$183,910, which include rent, travel and entertainment, office, data services and other expenses. #### 6. CASH AND CASH EQUIVALENTS 6. CASH AND CASHEQUIVALENTS The Company maintains cash and cash equivalents with regulated financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). Deposits with a single brokerage institution are insured up to \$500,000 per customer, including up to \$250,000 for cash deposits, by the Securities Investor Protection Corp. ("SIPC"). The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents. Cash and cash equivalents include \$1,500,990 being held in money market funds. The Company maintains cash and cash equivalents with regulated financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by theFederal Deposit Insurance Corporation ("FDIC"). Deposits with a single brokerage institution are insured up to \$500,000 per customer, including up to \$250,000 for cash deposits, by the Securities Investor Protection Corp. ("SIPC"). The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents. Cash and cash equivalents include \$1,500,990 being held in money market funds. #### 7. SECURITIES OWNED, AT MARKET VALUE AND PLACEMENT FEES 7. SECURITIES OWNED, AT MARKET VALUE AND PLACEMENT FEES In its normal course of business, the Company receives restricted securities and warrants as fees for advisory services from various clients. The Company expects to continue to receive restricted securities and/or warrants, representing the right to purchase equity, in companies for which advisory services are provided as recurring fee based revenue. At December 31, 2021, management determines the market value of the restricted securities and warrants, based upon historical costs for non-publicly traded companies and exercise value where stock market quotations exist for publicly traded companies. Throughout the year ended December 31, 2021, the Company had not received or held any restricted securities. In its normal course of business, the Company receives restricted securities and warrants as fees for advisory services from various clients. The Company expects to continue to receive restricted securities and/or warrants, representing the right to purchase equity, in companies for which advisory services areprovided as recurring fee based revenue. At December 31, 2021, management determines the market value of the restricted securities and warrants, based upon historical costs for non-publicly traded companies and exercise value where stock market quotations exist for publicly traded companies. Throughout the year ended December 31, 2021, the Company had not received or held any restricted securities. #### 8. COMMITMENTS AND CONTINGENT LIABILITIES 8. COMMITMENTS AND CONTINGENT LIABILITIES The Company had no undenNriting commitments, or contingent liabilities at December 31, 2021. The Company had no undenNriting commitments, or contingent liabilities at December 31 , 2021. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31,2021 #### 8. COMMITMENTS AND CONTINGENT LIABILITIES (continued) 8. COMMITMENTS AND CONTINGENT LIABILITIES (continued) On May 27, 2021, the Parent entered into a new lease with the term to commence on September 1, 2021 and end on January 31, 2027. The total rent under this agreement is \$535,464, which is charged to the Company. In addition, the Company is to receive an abatement of \$38,952 over the course of the first24 months of this lease. As such, it has been determined by the Company this is an operating lease under the provisions of ASC 842. Rent expense was \$153,070 for the twelve-month period ended December 31, 2021. On May 27, 2021, the Parent entered into a new lease with the term to commence on September 1, 2021 and endon January 31, 2027. The total rent under this agreement is \$535,464, which is charged to the Company. In addition, the Company is to receive an abatement of \$38,952 over the course of the first 24 months of this lease. As such, it has been determined by the Company this is an operating lease under the provisions of ASC 842. Rent expense was \$153,070 for the twelve-month period ended December 31, 2021. As of December 31, 2021, future minimum lease rental payments are payable as follows: As of December 31, 2021, future minimum lease rental payments arepayable as follows: | Period
December
December
Period
Ending
Ending
31
31 | Lease
Commitment
Commitment
Lease | |--------------------------------------------------------------------------|--------------------------------------------| | | | | 2022
2022 | \$85,362
\$85,362 | | 2023
2023 | \$90,686
\$90,686 | | 2024
2024 | \$99,037
\$99,037 | | 2025
2025 | \$101,513
,513
\$101 | | 2026
2026 | \$104,051
\$104,051 | | 31,2027
January
2027
January
31, | \$8,814
\$8,814 | | of
of
Amount
Amount
accumulated
accumulated | | | discount
discount | \$10,136)
(\$10,136) | | | \$479,327
\$479,327 | | | | Discount rate used to calculate the present value of its future lease payments to recognize lease liability: 0.78% Discount rate used to calculate the present value of its future lease payments to recognize lease liability: 0.78% #### COVID Pandemic COVID Pandemic On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate ithave had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. The Company may be directly impacted from the markets in which it operates and the volatility of the financial markets. The effects of the potential impact cannot be estimated at this time. The Company may be directly impacted from the markets in which it operates and the volatility of the financial markets. The effects of the potential impact cannot be estimated at this time. {14}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) NOTES TO FINANCIAL STATEMENTS (continued) # DECEMBER 31, 2021 DECEMBER 31,2021 #### 9. LIABILITIES SUBORDINATED TO THE CLAIMS OF GENERAL CREDITORS 9. LIABILITIES SUBORDINATED TO THE CLAIMS OF GENERAL CREDITORS As of December 31, 2021, the Company had not entered into any subordinated loans agreements. As of December 31, 2021, the Company had not entered into any subordinated loans agreements. #### 10. NET CAPITAL REQUIREMENTS 10. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission's Net Capital Rule 15c3-1, 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. At December 31, 2021, the Company had net capital of \$1,331,849 which exceeded the minimum requirement of \$250,000 by \$1,081,849. The Company's ratio of aggregate indebtedness to net capital ratio was 0.204 to 1. The Company is subject to the Securities and Exchange Commission's Net Capital Rule 1503-1, 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. At December 31, 2021, the Company had net capital of \$1,331,849 which exceeded the minimum requirement of\$250,000 by \$1,081,849. The Company's ratio of aggregate indebtedness to net capital ratio was 0.204 to 1. 11. RULE 15C3-3 11. RULE 15C3-3 > The Company is exempt from the provisions of Rule 15c3-3. The Company is exempt from the provisions of Rule 1503-3. #### 12. SUBSEQUENT EVENTS 12. SUBSEQUENT EVENTS Events have been evaluated through the date that these financial statements were issued, and no events have been identified which require disclosure or adjustment to the financial statements. Events have been evaluated through the date that these financial statements were issued, and no events have been identified which require disclosure or adjustment to the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.