# G1 EXECUTION SERVICES, LLC X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: G1 EXECUTION SERVICES, LLC - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0001136305-22-000002 - CIK: 1136305 - File #: 8-53174 - Type: Broker-dealer - Material weakness: No - Auditor: EISNERAMPER,LLP - Auditor location: NEW YORK, NY - Contact: Robert C Sack - Phone: 610-617-2812 - Email: rob.sack@sig.com - Website: sig.com - Signed by: Robert C Sack (Treasurer) Original filing: https://www.sec.gov/Archives/edgar/data/1136305/000113630522000002/g1xsfc.pdf --- {0}------------------------------------------------ ## **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** **0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden h:ours per response: 12** # **ANNUAL REPORTS FORM X-17A-5** | | SEC FILE NUMBER | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|------------------|--|--|--|--| | | 8-53174 | | | | | | | | PART Ill | | | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | | 21
_20____
AND ENDING ___
FILING FOR THE PERIOD BEGINNING __ o_l/_O_l_/
MM/DD/YY | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: | Gl EXECUTION SERVICES, LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
□ Security-based swap dealer
&'Broker-dealer
0 Major security-based swap participa11t
0 Check here if respondent is also an OTC der vatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 401 CITY AVENUE, SUITE 220 | | | | | | | | | (No. and Street) | | | | | | | BALA CYNWYD | PA | 19004 | | | | | | (City) | (State) | (Zip Code) | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | ROBERT SACK | 610-617-2812 | ROB.SACK@SIG.COM | | | | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | EISNERAMPER, LLP | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | (Name - if individual, state last, f rst, and middle name) | | | | | | | | | | | | | | BALA CYNWYD PA PERSON TO CONTACT WITH REGARD TO THIS FILING ROBERT SACK 610-617-2812 ROB.SACK@SIG.COM **(Name) (Area Code -Telephone Number) (Email Address)** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* EISNERAMPER, LLP 733 THIRD AVENUE NEW YORK NY **(Address) (City) {State)** 09/29/2003 274 10017 **(Zip Code) (Date of Registration with PCAOB)(if applicable) (PCAOB Regi strat on Number, if applicable) FOR OFFICIAi.. USE ONLY** **\*Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(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 0MB control number.** {1}------------------------------------------------ ### **OATH OR AFFIRMATION** 1, **ROBERT SACK** swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Gl EXECUTION SERVICES, LLC as of DECEMBER 31 2..Ql.L is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely **Commonwealth of Pennsy1van a. Notary Seal Christina We gand,** Notary **Public Montgomery County** *My* **Commission Expires November a, 2025** **Commission Number 1409542** Signature:� Title: ;REASURER ### **This filing\*\* contains (check all applicable boxes):** - *51* (a) Statement of financial condition. - *5t* (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for deteirmination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3 -3. - D (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. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - D (o) Reconciliations, including appropriate ex[Planations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 17 CFR 240.18a-l, or 17 CFR 240.18a 2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - g (q) Oath or affirmation in accordance with 17 CFR 240.l 7a-5, 17 CFR 240.l 7a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - rs?' (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financi al report or financ al statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a 5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - D (z ) Other: ------------------------------------ *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e){3) or 17 CFR 240.18a-7(d)(2), as applicable.* {2}------------------------------------------------ {3}------------------------------------------------ # **EISNERAMPER** **ElsnerAmper LLP** 733 Third Avenue New York. NY 10017 **T 212.949.8700** F **212.891.4100** www.eisneramper.com ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of G1 Execution Services, LLC ### *Opinion on the Financial Statement* We have audited the accompany i ng statement of financial condition of G1 Execution Services, LLC (the "Entity") as of December 31, 2021 and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement pre,sents fair y, in all material respects, the f nancial position of the Entity as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. ## *Basis for Opinion* This financial statement is the responsibility of the Entity's management. Our responsibility is to express an opinion on the Entity'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 Entity 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 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 r i sks. 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 evaluatirng the overall presentation of the financi al statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Entity's auditor since 2014. EISNERAMPER LLP New York, New York February 24, 2022 ![](_page_3_Picture_12.jpeg) ... -- "EisnerAmper• is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC provide professi onal services. EisnerAmper LLP and Eisner Advsory Group LLC are independently owned firms that pract ce in an alternatve practice structure in accordance wth the AICPA Code of Professiona l Conduct and applicable aw, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services, and Eisner Advi sory Group llC and its subsidiary enti t i es prov i de tax and business consulting services. Eisner Advi sory Group LLC and ts subsidiary entities are not lcensed CPA firms. {4}------------------------------------------------ ## **Statement of Financial Condition** **December 31, 2021** | (dollars in thousands) | | |----------------------------------------------------------------|-----------------| | Assets | | | Cash | \$
1 | | Receivable from clearing brokers | 364,227 | | Securities owned - at fair value | 1,312,962 | | Accrued trading receivables | 5,397 | | Receivable from affiliate | 131 | | Fixed assets (net of accumulaled depreciation of \$11,006) | 2 | | Goodwill | 5,750 | | Intangible assets (net of accumulated amortization of \$8,903) | 3,427 | | Other assets | 2,620 | | Total assets | \$
1,694,517 | | Liabilities and member's equity | | | Securities sold, not yet purchased - at fair value | \$
1,367,473 | | Accrued trading payables | 16,695 | | Payable to affiliates | 3,184 | | Accrued compensation | 4,074 | | Guaranteed payments to member | 1,848 | | Accrued expenses and other liabilities | 654 | | Total liabilities | 1,393,928 | | Member's equity | 300,589 | | Total liabilities and member's equ1ty | \$
1,694,517 | | | | {5}------------------------------------------------ **Notes to Statement of Financial Condition December 31, 2021** (dollars in thousands) ## **NOTE A - ORGANIZATION** G1 Execution Services, LLC (the "Entity") is a registered broker-dealer with the Securities and Exchange Commission (the "SEC"). The Entity's designated examining regulatory authority is the Financial Industry Regulatory Authority, Inc. The Entity generally acts as a market maker in listed and over-the-counter (OTC) equity securities. The Entity is 100% owned by G1X Holdings, LLC. ## **NOTE B - SIGNIFICANT ACCOUNTING POLICIES** The Entity records purchases and sales of securities, and related revenues and expenses on a trade-date basis. Interest income and expense are recorded on the accrual basis. Dividend income and dividends on securities sold, not yet purchased, are recorded on the ex-dividend date. The Entity maintains cash in a deposit account which, at times, may exceed federally insured limits. Depreciation of fixed assets is computed using either a straig,ht-line -.method or a double-declining balance method over the estimated useful life of the assets. Goodwill and intangibles represent the excess of the purcli'ase price over the fair value of net tangible assets acquired through the Entity's business combinapons. 1he "En\ify evaluates goodwill and intangible assets for impairment on at least an annual basis or when events or changes in circumstances indicate the carrying value may not be recoverable. Determining whether an asset's carrying value can be supported by its fair value is a subjective process that involves management estjglates and judgments and use of various valuation methodologies. Assets and liabilities denominated in foreign currencies are translated into United States dollar amounts at the period-end exchange rates. Purchases and sales of financial instruments that are denominated in foreign currencies are translated into United States dollar amounts at the prevailing rates of exchange on the transaction date. In accordance with Accounting Standards Codification ("ASC") Topic 326, Financial Instruments-Credit Losses (" ASC 326"}, the Entity assessed certain financial assets measured at amortized cost for credit losses using a current expectecf"credit loss ("GECL") methodology to estimate expected credit losses over the life of the financial asset, as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. Receivable from clearing brokers; the Entity has concluded that there are currently no expected credit losses based on the nature and contractual life or expected life of the financial assets held at each of the Entity's clearing brokers and clearing organizations. Certain trades and contracts are cleared through a centralized clearing organization and settled daily between the clearing organization and the Entity's prime broker, therefore limiting the amount of unsettled credit exposure. The Entity continually monitors the capital adequacy of such organizations. This statement of financial condition has been prepared in conformity with accounting principles generally accepted in the United States of America, which require the use of estimates by management. {6}------------------------------------------------ ## **Notes to Statement of Financial Condition** **December 31, 2021** (dollars in thousands) ## **NOTE C - FAIR VALUE OF FINANCIAL INSTRUMENTS** The Entity measures its financial instruments in accordance with the Financial Accounting Standards Board Accounting Standards Codification Section for Fair Value Measurements. This codification section clarifies the definition of fair value financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Fair Value Measurements establishes a fair value hierarchy and specifies that a valuation technique used to measure fair value shall maximize the use of observable inputs and minimize the use of unobservable inputs. The objective of a fair value measurement is to determine 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 (an exit price). Accordingly, the f,a(r value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or Hat>ilities jlevel 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under Fair Value Measurements are described below: - Level 1: Unadjusted quoted prices in active markets for identical, u nrestricted assets or liabilities that the Entity has the ability to access at the measurement date; - Level 2: Inputs that are observable for substantially the full term of he asset or liability (other than quoted prices for the specific asset or liability in an active ma�et), incluai�g quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in a nonactive market, inputs other than quoted � prices, and inputs derived principally from or corroborated by observable market data by correlation or otberwise; and - Level 3: Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported b�iftle or f}O market activity). As required by the Codification Section for Fair Value Measy,rements, financial instruments are classified within the level of the lowest significant input considered in determining fair value. Financial instruments classified within Level 3 whose fair value measurement COQSiders several inputs may include Level 1 or Level 2 inputs as components of the overall fair value me�.sJ.!rement. The tables that follow set forth information about' the level within the fair value hierarchy at which the Entity's financial instruments are measured at December 31, 2021: | Assets measured at fair value: | | Quoted Prices in
Active Markets for
Identical Assets | Significant Other
Observable
Inputs | | |--------------------------------------------------------|-------------|------------------------------------------------------------|-------------------------------------------|--| | Description | Totals | (Level 1) | (Level 2) | | | Equities/Warrants/Rights:
Market Maker/Facilitation | \$1,312,962 | \$1,304,898 | \$8,064 | | {7}------------------------------------------------ ## **Notes to Statement of Financial Condition** **December 31, 2021** (dollars in thousands) ## **NOTE C - FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)** Liabilities measured at fair value: | Description | Totals | Quoted Prices in
Active Markets for
Identical Liabilities
(Level 1) | Significant Other
Observable
Inputs
(Level 2) | |---------------------------|-----------------|------------------------------------------------------------------------------|--------------------------------------------------------| | | | | | | Equities/Warrants/Rights: | | | | | Market Maker/Facilitation | \$1
,367,472 | \$1,366,063 | | | Debt Securities: | | | | | Corporate | 1 | | | | | | | � | The amounts presented in each of the above tables inclu�C\..net amo nt **for** those instances where the Entity holds the long and short positions for the same�curity ��ols'in different accounts. Equity securities owned and equity securities sold, not �QuSased, that are traded on a national securities exchange are valued at the last reported sales price oo he lasTousiness day of the year. re summarized as follows: | | Securities
Owned | Securities Sold,
Not Yet
Purchased | |----------------------|---------------------|------------------------------------------| | Equity securities | \$
1,309,443 | \$
1,365,866 | | Warrants | 3,461 | 1,543 | | Rights | 58 | 63 | | 0
Debt securities | | 1 | | | \$
\3121962 | \$
1 367 473 | | (
) | | | ## **NOTE E - RECEIVABLE FROM CLEARING BROKERS AND CONCENTRATION OF CREDIT RISK** The clearing and depository operations for the Entity's securities transactions are provided by Merrill Lynch Professional Clearing Corp., Cowen and Company LLC, and BofA Securities, Inc. At December 31, 2021, all of the securities owned and securities sold, not yet purchased, and the amounts receivable from clearing brokers reflected on the statement of financial condition are securities positions with and amounts d'ue from these clearing brokers. The securities at these clearing brokers serve as collateral for the amounts payable to such clearing brokers. The clearing brokers have the right to sell or repledge this collateral, subject to the clearing agreements with the Entity. {8}------------------------------------------------ ## **Notes to Statement of Financial Condition December 31, 2021** **(dollars in thousands)** ## **NOTE F - GOODWILL AND OTHER INTANGIBLES** **At December 31, 2021, the Entity's goodwill had a carrying value of \$5,750.** **Intangible assets with finite lives, which are primarily amortized on a straight line basis, consist of the following:** | | Original
Useful | Remaining
Useful | Gross | Accumulated | Net | |-------------------------------|--------------------|---------------------|------------|------------------|--------| | Description | Life (Years) | Life (Years) | Amount | Amortization | Amount | | | | | | | | | E*TRADE Customer Relationship | 12 | 4 | \$ 10,020 | (6,593) \$
\$ | 3,427 | | Other Customer Relationships | 7 | | 1,850 | (1,850) | | | | | | \$ 1 1,870 | (8,443} \$
\$ | 3,427 | | | | | | | | ## **NOTE G - RELATED PARTY TRANSACTIONS** **The Entity is affiliated through common ownership with various entities, including Susquehanna Technology Management, Inc. ("STMI"), Susquehanna lnternatlonal Group/LLP ("SIG"), and Susquehanna Israel Technologies Ltd ("SITLTD").** **SIG acts as a common payment agent for the Entity and various affiliates for various direct and indirect operating expenses. The Entity pays for the indirect costs at an amount agreed upon between the Entity and SIG based on allocations determined at SIG's discretion. SIG also J?rovides assistance, maintenance, advice, and other similar services to the Entity and various affiliates in respec of certain intellectual property. The Entity pays for these intellectual property related services pt..11;. \_ suant to a formula agreed upon between the Entity and SIG. Included in payable to affiliates is \$2,964 related to t�ese foregoing costs and services.** **SIG also provides infrastructur\_e support services to the Entity and various affiliates. The Entity pays a monthly fee for these services based on allocations determined at SIG's discretion. Included in payable to affiliates is \$6 related to these services.** **STMI and SITLTD provide administrative and technology services to the Entity and various affiliates. The Entity pays a monthly managemept fee for these services based on allocations determined at STMI and SITLTD's discretion. Included in payable to affiliates are \$158 and \$6 , respectively, related to these services.** **Affiliated broker-dealers execute trades for the Entity for which it pays a fee or receives a rebate, based on liquidity provided, based on monthly trading and execution charges, plus a surcharge to cover other costs. Included in receivable from and payable to affiliates is a net amount of \$81 related to these fees as of December 31, 2021.** **Guaranteed payments in 2021 are determined based on a certain class of the member's contributed capital.** **Because of its short-term nature, the fair value of the payable to affiliates approximates its carrying amount.** **The Entity and various other ent ties are under common ownership and control. As a result, management can exercise its discretion when determining which entity will engage in new or current business activities and/or trade new products. Therefore, the financial position presented herein may not necessarily be indicative of that which would be obtained had these entities operated autonomously.** {9}------------------------------------------------ ## **Notes to Statement of Financial Condition** **December 31, 2021** (dollars in thousands) ## **NOTE H - FINANCIAL INSTRUMENTS AND RISK** In the normal course of its business, the Entity trades various financial instruments and enters into various financial transactions where the risk of potential loss due to market risk, interest rate risk, currency risk, credit risk, liquidity risk and other risks could exceed the related amounts recorded. In general, the Entity hedges its positions to mitigate these risks based a, certain models. These models take into consideration the types of risks mentioned above in an attempt to identify arbitrage opportunities associated with various types of financial instruments held by the Entity. Losses may occur when the underlying assumptions on which the Entity's trading is based are not completely representative of actual market conditions. The success of any trading activity is influenced by general economic conditions that may affect the level and volatility of equity prices, credit spreads and interest rates for both equity and interest rate sensitive instruments. Unexpected vola\_ 'lity or illiquidity in relevant markets could adversely affect the Entity's operating results. Market risk represents the potential loss that can be caused by increase,s or decreases in the fair value of financial instruments resulting from market fluctuations. Interest rate risk is the risk that the fair value or future cash flows of fixed income or rate sensitive financial instruments will increase or decrease because of changes in interest rates. Generally, the value of fixed income securities will change inversely with changes in interest rates. As inter�t rates rise, the fair value of fixed income securities tends to decrease. Conversely, as interest rates fall, **he fair** value of fixed income securities tends to increase. This risk is generally greater for long-term securities than for short-term securities. Currency risk is the risk that the fair value of financial ·nstruments will fluctuate because of changes in foreign exchange rates. Financial instruments that are denoTllinated in a non-U.S. currency are subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. Credit risk represents the potential loss that would occur if counterparties fail to perform pursuant to the terms of their obligations. In addition to its financial instruments and related transactions, the Entity is subject to credit risk to the extent a custodian or brokec. with whom it conducts business is unable to fulfill contractual obligations. Liquidity risk is the risk s-temmJng from the lack of marketability of a position that cannot be bought or sold quickly enough to prevent or minimize a loss'. While the use of'-certain forms of leverage, including margin borrowing and derivative instruments, can substantially improve the return on invested capital; such use may also increase the adverse impact to which the portfolio of the Entity may be subject. Short selling, or the sale of securities not owned by the Entity, exposes the Entity to the risk of loss in an amount greater than the initial proceeds. Such losses can increase rapidly, and in the case of equities, without effective limit. The Entity limits the risk associated with the short selling of equities by hedging with other financial instruments. {10}------------------------------------------------ ## **Notes to Statement of Financial Condition** **December 31, 2021** (dollars in thousands) ## **NOTE** I - **DERIVATIVE FINANCIAL INSTRUMENTS** Derivative financial instruments may be used to manage market risk and to take an active long or short position in the market. Should interest rates or credit spreads move unexpectedly, anticipated benefits may not be achieved and a loss realized. Furthermore, the use of derivative financial instruments involves the risk of imperfect correlation in movements in the price of the instruments, interest rates and the underlying assets. Derivatives used for risk management include warrants and rights. The following table sets forth the annual volume of the Entity's derivative financial instruments by major product type on a gross basis as of December 31, 2021: | | Approximate
Annual
Volume | F�ir V�l!J!il | | | | Statement of Financial | |----------|---------------------------------|---------------|-------|-------------|--------|----------------------------------------------------------| | | (Contracts)"' | Assets | | Liabilities | | Condition Location | | Warrants | 1 ,740,675 | \$ | 3,461 | \$ | 1 ,543 | '5ecurities o Qed; Securities
sold, not yet purchased | | Rights | 54,905 | | 58 | | 63 | Securities owned; Securities
sold, not yet purchased | \* Approximate annual volume of contracts shown is in thousands. ## **NOTE J - INCOME TAXES** No provision for federal income taxes has been made because the Entity is a single-member LLC and, therefore, is not subject to federal ineo e taxes. The Entity is currently not subject to state or local income taxes. , At December 31, 2021, managemen has 'determined that there are no material uncertain income tax positions. ## **NOTE K - NET CAPITAL REQUIRE�ENT** As a registered broker-dealer, the Entity is subject to the SEC's Uniform Net Capital Rule 1 5c3-1. The Entity computes its net capita :under the basic method permitted by the rule, which requires the maintenance of minimum net capital of 6-2/3% of aggregate indebtedness, as defined, or \$1,000, whichever is greater. As of December 31, 2021, the Entity had net capital of \$257,015, which exceeded its requirement of \$1,764 by \$255,251. ## **NOTE L - SUBSEQUENT EVENTS** Subsequent to year end, the member made capital contributions of \$170,000 and had withdrawals of \$160,000. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.