# G1 EXECUTION SERVICES, LLC X-17A-5 (2024-02-28) — Broker-dealer annual report - Company: G1 EXECUTION SERVICES, LLC - Form: X-17A-5 - Filed: 2024-02-28 - Period: 2023-12-31 - Accession: 0001136305-24-000002 - CIK: 1136305 - File #: 8-53174 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers, LLP - Auditor location: New York, NY - Contact: Robert 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/1136305/000113630524000002/g1xsfc.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, O.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17A-S | | PART Ill | | 0MB APPROVAL | |--------------------------| | 0MB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | hours per response: 12 | | | **SEC FILE NUMBER** 8-53174 FACING PAGE **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING O 1/01/2023 MM/0D/YY AND ENDING 12/31/2023 MM/DD/YY **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: G1 EXECUTION SERVICES, LLC TYPE OF REGISTRANT (check all applicable boxes): 0 Broker-dealer O Security-based swap dealer □ Major security-based swap participant **D Check here if respondent is also an OTC derivatives dealer** ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do **not** use a P.O. box no.) # 410 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)** #### **8. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* # PricewaterhouseCoopers LLP | (Name - if individual, state last, first, and middle name) | | | | | | |------------------------------------------------------------|-----------------------|---------|----------------------------------------|--|--| | r•
300 Madison Avenue | New York | NY | 10017 | | | | (Address) | (City) | (State) | (Zip Code) | | | | 10/20/2003 | | 238 | | | | | of ReOO, ROBERT SACK | | | swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------|--|--|---------------------------------------------------------------------------------------|-------| | | | | financial report pertaining to the firm of G1 EXECUTION SERVICES | as of | | 12/31 | | | 2� 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 as that of a customer. ![](_page_1_Picture_3.jpeg) Title: **TREASURER** #### **This filing\*\* contains (check all applicable boxes):** - iii (a) Statement of financial condition. - ii (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation **S-X).** - □ (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (fl 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. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination 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 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of **PAB** Requirements under Exhibit **A** to§ 240.1Sc3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.lSa-4, as applicable. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.lSa-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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. - iii (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-5 or 17 CFR 240.lBa-7, as applicable. - iii (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based Or'I an examination of the financial report *or* financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (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 240.17a-S 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. - n (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.l 7a-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}------------------------------------------------ **(a limited liability company)** **ST A TEME 1T OF FINANCIAL CO DITJON** **DECEMBER 31, 2023** {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Member of G1 Execution Services, LLC #### *Opinion on the Financial Statement* - *Statement of Financial Condition* We have audited the accompanying statement of financial condition of G1 Execution Services. LLC (the "Company") as of December 31, 2023, including 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, 2023, in conformity with accounting principles generally accepted in the United States of America. ## *Basis for Opinion* The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with 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 of this financial statement in accordance with the standards of t11e 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. Philadelphia, Pennsylvania February 27, 2024 We have served as the Company's auditor since 2023. {4}------------------------------------------------ # *Statement of Financial Condition* *December 31, 2023* *(dollars in thousands)* | Assets | | | |-----------------------------------------------------------------|-----------------|-----| | Receivable from clearing brokers | 1,276,715
\$ | | | Securities owned - at fair value | 2,237,595 | | | Accrued trading receivables | 6,231 | | | Receivable from affiliate | | 368 | | Goodwill | 5,750 | | | Intangible assets (net of accumulated amortization of \$10,573) | 1,757 | | | Other assets | 2,558 | | | Total assets | 3,530,974
\$ | | | Liabilities and member's equity | | | | Securities sold, not yet purchased - at fair value | 2,701,932
\$ | | | Accrued trading payables | 13,246 | | | Payable to affiliates | 3,834 | | | Accrued compensation | 4,270 | | | Guaranteed payments to member | 2,753 | | | Accrued expenses and other liabilities | | 734 | | Total liabilities | 2,726,769 | | | Member's equity | 804,205 | | | Total liabilities and member's equity | 3,530,974
\$ | | | | | | {5}------------------------------------------------ # *Notes to Statement of Financial Condition December 31, 2023* (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 POLJCIES* # *Financial Instruments* 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 expense are recorded on the ex-dividend date. #### *Cash* The Entity maintains a deposit account for cash. which at times, may exceed federally insured limits of \$250. #### *Goodwill and Intangibles* Goodwill and intangibles represent the excess of the purchase price over the fair value of net tangible assets acquired through the Entity's business combinations. The Entity evaluates goodwill and intangible assets for impainnent 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 estimates and judgments and use of various valuation methodologies. # *Translation of Foreign Currencies* 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. ## *Current Expected Credit Losses ("CECL")* The Entity assessed certain financial assets, as noted below, measured at amortized cost for credit losses using a CECL 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 monitors the capital adequacy of such organizations. {6}------------------------------------------------ *Notes to Statement of Financial Condition December 31, 2023 (dollars in thousands)* # *NOTE B - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)* ## *Use of Estimates* *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. Actual results could differ from those estimates.* ## *NOTE C - FAIR VALUE OF FINANCIAL INSTRUMENTS* *The Entity measures its financial instruments in accordance with the Financial Accounting Standards Board Accounting Standards Codification ("ASC") 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 fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 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, unrestricted 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 the asset or liability (other than quoted prices for the specific asset or liability in an active market), including 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 otherwise; and* - *Level 3: Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).* *As required by the Codification Section for Fair Value Measurements, 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 considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.* *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, 2023:* {7}------------------------------------------------ # *Notes to Statement of Financial Condition December 31, 2023* (dollars in thousands) # *NOTE C* - *FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)* 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:
Markel Maker/Facilitation | \$
2,237,461 | \$ | 2,231,672 | \$ | 5,789 | | | Debt Securities:
Corporate | 134 | | | | 134 | | Liabilities measured at fair value: | | | | Quoted Prices in
Active Markets for
Identical Liabilities | | Significant Other
Observable
Inputs | | | |--------------------------------------------------------|----|-----------|-----------------------------------------------------------------|-----------|-------------------------------------------|-----------|--| | Description | | Totals | (Level 1) | | | (Level 2) | | | Equities/Warrants/Rights:
Market Maker/Facilitation | \$ | 2,701,840 | \$ | 2,700,640 | \$ | 1,200 | | | Debt Securities:
Corporate | | 92 | | | | 92 | | The amounts presented in each of the above tables include a net amount for those instances where the Entity holds the long and short positions for the same security symbols in different accounts. Equity securities owned and equity securities sold, not yet purchased, that are traded on a national securities exchange are valued at the last reported sales price on the last business day of the year. Debt securities are generally valued using broker or dealer quotations or alternative pricing sources on the last business day of the year. {8}------------------------------------------------ *Notes to Statement of Financial Condition December 31, 2023* (dollars in thousands) # *NOTE D - SECURITIES OWNED AND SECURITIES SOLD, NOT YET PURCHASED* Securities owned and securities sold, not yet purchased, are summarized as follows: | | Securities
Owned | Securities Sold,
Not Yet
Purchased | |-------------------|---------------------|------------------------------------------| | Equity securities | \$
2,236,546 | \$
2,701,485 | | Warrants | 878 | 333 | | Rights | 37 | 22 | | Debt securities | 134 | 92 | | | \$
2,2371
595 | \$
2z701,932 | ## *NOTE E - RECEIVABLE FROM CLEARING BROKERS AND CONCENTRATION OF CREDIT RISK* The clearing and depository operations for the Entity's securities transactions are primarily provided by BofA Securities, Inc. and Goldman Sachs & Co. LLC. At December 31, 2023, 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 due 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. The Entity is subject to credit risk to the extent a custodian or broker with whom it conducts business is unable to fulfill contractual obligations. # *NOTE F - GOODWILL AND OTHER INTANGIBLES* At December 31, 2023, the Entity's goodwill had a carrying value of \$5,750. Management believes there is no impairment to recognize on the Entity's goodwill as of December 31, 2023. Intangible assets with finite lives, which are amortized on a straight line basis, consist of the following: | Description | Original
Useful
Life (Years) | Remaining
Useful
Life (Years) | Gross
Amount | Accumulated
Amortization | Net
Amount | | |-------------------------------|------------------------------------|-------------------------------------|-----------------|-----------------------------|---------------|-------| | E*TRADE Customer Relationship | 12 | 2 | \$ 10,020 | \$
(8,263) \$ | | 1,757 | {9}------------------------------------------------ *Notes to Statement of Financial Condition December 31, 2023 (dollars in thousands)* # *NOTE G - RELATED PARTY TRANSACTIONS* *The Entity is affiliated through common ownership with various entities, including Susquehanna Technology Management, Inc. ("STMI"), Susquehanna International Group, LLP ("SIG"), and Susquehanna Israel Technologies Ltd ("SITL TD").* *SIG acts as a common payment agent for the Entity 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 provides assistance, maintenance, advice, and other similar services to the Entity in respect of certain intellectual property. The Entity pays for these intellectual property related services pursuant to a formula agreed upon between the Entity and SIG. Included in payable to affiliates is \$3,306 related to these foregoing costs and services.* *SIG also provides infrastructure support services to the Entity. The Entity pays a monthly fee for these services based on allocations determined at SIG's discretion. Included in payable to affiliates is \$33 related to these services.* *STMI and SITLTD provide administrative and technology services to the Entity. The Entity pays a monthly management fee for these services based on allocations determined at STMl's and SITLTD's discretion, as applicable. Included in payable to affiliates are \$462 and \$5, 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 are \$368 and \$27, respectively, related to these fees as of December 31, 2023.* *Guaranteed payments in 2023 are determined based on a stated rate on a certain portion of the member's contributed capital.* *Because of their short-term nature, the fair values of the payable to and receivable from affiliates approximate their carrying amounts.* *The Entity and various other entities 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.* #### *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 on 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 volatility or illiquidity in relevant markets could adversely affect the Entity's operating results.* *Market risk represents the potential loss that can be caused by increases or decreases in the fair value of financial instruments resulting from market fluctuations.* {10}------------------------------------------------ **Notes to Statement of Financial Condition December 31, 2023** (dollars in thousands) # **NOTE H - FINANCIAL INSTRUMENTS AND RISK (CONTINUED)** 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 interest rates rise, the fair value of fixed income securities tends to decrease. Conversely, as interest rates fall, the 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 instruments will fluctuate because of changes in foreign exchange rates. Financial instruments that are denominated 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. Liquidity risk is the risk stemming 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. The Entity purchases and sells options on securities. The seller of a call option which is covered (e.g., the seller has a long position in the underlying instrument) assumes the risk of a decline in the market price of the underlying instrument below the value of the underlying instrument, less the premium received, and gives up the opportunity for gain on the underlying instrument above the exercise price of the option. The seller of an uncovered call option assumes the risk of a theoretically unlimited increase in the market price of the underlying instrument above the exercise price of the option. The buyer of a call option assumes the risk of losing its entire investment in the call option. If the buyer of the call sells short the underlying instrument, the loss on the call will be offset, in whole or in part, by any gain on the short sale of the underlying instrument. The seller of a put option which is covered (e.g., the seller has a short position in the underlying instrument) assumes the risk of an increase in the market price of the underlying instrument above the sales price (in establishing the short position) of the underlying instrument, plus the premium received, and gives up the opportunity for gain on the underlying instrument below the exercise price of the option. The seller of an uncovered put option assumes the risk of a decline in the market price of the underlying instrument below the exercise price of the option. The buyer of a put option assumes the risk of losing its entire investment in the put option. If the buyer of the put holds the underlying instrument, the loss on the put will be offset, in whole or in part, by any gain on the underlying instrument. {11}------------------------------------------------ # *Notes to Statement of Financial Condition December 31, 2023* *(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 options, 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, 2023:* | | Annual
Volume | | Eaic �alu� | Statement of Financial | | | |----------|------------------|--------|-------------|---------------------------------------------------------|--|--| | | (Contracts)* | Assets | Liabilities | Condition Location | | | | Options | 1 | \$ | \$ | | | | | Warrants | 963,670 | 878 | 333 | Securities owned; Securities
sold, not yet purchased | | | | Rights | 38,115 | 37 | 22 | Securities owned; Securities
sold, not yet purchased | | | \*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 income taxes. The Entity is currently not subject to state or local income taxes.* *The Entity's U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State and local tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction.* *The Entity is not presently associated with an open tax examination.* *At December 31, 2023, management has determined that there are no material uncertain income tax positions.* # *NOTE K - NET CAPITAL REQUIREMENT* *As a registered broker-dealer, the Entity is subject to the SEC's Uniform Net Capital Rule 15c3-1. The Entity computes its net capital 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, 2023, the Entity had net capital of \$89,931, which exceeded its requirement of \$1 ,656 by \$88,275.* ## *NOTE L - SUBSEQUENT EVENTS* *The Entity evaluated subsequent events to consider if the impact of such events needed to be reflected or disclosed on the statement of financial condition. Such evaluation was performed through February 27, 2024, the date that this statement of financial condition was issued.* Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.