# FORUM CAPITAL SECURITIES LLC X-17A-5 (2019-03-01) — Broker-dealer annual report
- Company: FORUM CAPITAL SECURITIES LLC
- Form: X-17A-5
- Filed: 2019-03-01
- Period: 2018-12-31
- Accession: 0001143263-19-000001
- CIK: 1143263
- File #: 8-53364
- Material weakness: No
- Auditor: Eisner Amper LLP
- Auditor location: New York, NY
- Contact: Edward Cohen
- Phone: 2035576070
- Signed by: Jeffrey M Stern (Managing Partner)
Original filing: https://www.sec.gov/Archives/edgar/data/1143263/000114326319000001/public.pdf
---
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(A wholly — owned subsidiary of FOP Holdings LLC) (A wholly — owned subsidiary of FOP Holdings LLC)
### STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DECEMBER 31, 2018 DECEMBER 31, 2018
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UNITED STATES OMB APPROVAL SECURITIESAND EXCHANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020 UNITEDSTATES OMB APPROVAL SECURITIESAND EXCHANGECOMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020
## ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0:XR): 1| TIA-5 SEC FILE NUMBER ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F02XR¢1IIIIA6 sec FILE NUMBER
Estimated average burden Estimated average burden
| 53364
\$53364
8- | |
|------------------------|--|
FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of1934 and Rule l7a-5 Thereunder
| REPORT
FOR
THE
PERIOD
BEGINNING
THE
BEGINNING
REPORT
FOR
PERIOD | January
2018
January
1
2018
AND
a
AND
1
u
MM/DD/YY
MMXDD/YY | December
ENDING
December
ENDING | 2018
31
31:
2018
v
MM/DD/YY
MM/DD/YY | | |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|-------------------------------------------------------------------------|--|--|
| IDENTIFICATION
REGISTRANT
A.
A.
REGISTRANT
IDENTIFICATION | | | | | |
| NAME
OF
BROKER-DEALER:
Forum
Forum
or
NAME
BROKER-DEALER: | Capital
Securities
Capital
LLC
Securities | LLC | OFFICIAL
USE
ONLY
OFFICIAL
USE
ONLY | | |
| ADDRESS
OF
PRINCIPAL
PRINCIPAL
PLACE
PLACE
OF
ADDRESS
OF
OF | PO.
BUSINESS:
(Do
No.)
BUSINESS:
(Do
not
Box
use
PO. Box
not use | No.) | ID. NO.
FIRM
FIRM
ID.
NO. | | |
| 140
E
45th
Street
140
E
40th
Floor
45th
Street
40th
Floor
,
, | | | | | |
| | (No.
Street)
(No.
and
and
Street) | | | | |
| York
New
New
York | NY
NY | 10017
10017 | | | |
| (City)
(City) | (State)
(State) | (Zip
(Zip | Code)
Code) | | |
| NAME
NAME
AND
AND
TELEPHONE
NUMBER
TELEPHONE
NUMBER
OF
OF
Deborah
O'Dea
Deborah
O'Dea | CONTACT
IN
TO
REGARD
PERSON
PERSON
TO
CONTACT
IN
REGARD | THIS
TO
REPORT
TO
THIS
REPORT
(212)
(212) | 290-1787
290-1787 | | |
| | | (Area
(Area | Telephone
Number)
Code
Code
Telephone
Number)
—
-— | | |
| B.
B. | IDENTIFICATION
ACCOUNTANT
ACCOUNTANT
IDENTIFICATION | | | | |
| | | | | | |
| INDEPENDENT
PUBLIC
ACCOUNTANT
INDEPENDENT
PUBLIC
ACCOUNTANT
Eisner
Amper
Eisner
Amper
LLP
LLP | opinion
whose
opinion
contained
this
whose
is
is contained
in
in
this | Report*
Report* | | | |
| | Ifindividual. slate
(Name
last/hart. middle
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name) | | | |
| 750
3rd
Avenue
16th
Floor
750
3rd
Avenue
16th
Floor
,
, | New
New
York
York | NY
NY | 10017
10017 | | |
| (Address)
(Address) | (City)
(City) | (State)
(State) | (Zip
Code)
(Zip
Code) | | |
| CHECK
CHECK
ONE:
ONE: | | | | | |
| .Certified
.Certified
Public
Public
Accountant
Accountant | | | | | |
| Public
Public
Accountant
Accountant | | | | | |
| Accountant
resident
not
in
United | of
States
or any
of its | | | | |
| Accountant
United
resident
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not | its
States
possessions.
possessions.
or any | | | | |
| | OFFICIAL
ONLY
USE
FOR
FOR
OFFICIAL
USE
ONLY | | | | |
\*Claimsfor exemptionfrom the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basis for the exemption. See Section 240. l7a—5(e)(2) \*Claimsfor exemptionfrom the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basisfor the exemption. See Section 240. l7a-5(e)(2)
Potential persons who are to respond to the collection of information contained in this form are not required to respond SEC 1410 (1 1'05) unless theform displays a currently valid OMB control number. Potential persons who are to respond to the collection of Information contained in this form are not required to respond SEC 1410 (1 1'05) unless the form displays a currently valid OMB control number.
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#### OATH OR AFFIRMATION OATH OR AFFIRMATION
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|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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(A wholly — owned subsidiary of FOP Holdings LLC) (A wholly — owned subsidiary of FCP Holdings LLC)
### CONTENTS CONTENTS
### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
| Financial
Financial
Statement
Statement | |
|--------------------------------------------------|--|
|--------------------------------------------------|--|
| Statement
Statement
of
of
Financial
Financial
Condition
Condition | |
|----------------------------------------------------------------------------------------------------------------------|-----|
| Statement
Statement
of
of
Financial
Financial
Condition
Condition
Notes
Notes
to
to | 3-6 |
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# EISNERAM PER Nzttlilmztié EISNERAM PER Nli'ill'td'ifiiii'i?
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Member of Forum Capital Securities LLC The Member of Forum Capital Securities LLC
#### Opinion on the Financial Statement Opinion on the Financial Statement
We have audited the accompanying statement of financial condition of Forum Capital Securities LLC (the "Company"), a wholly-owned subsidiary of FCP Holdings LLC, as of December 31, 2018 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, 2018, in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of financial condition of Forum Capital Securities LLC (the "Company"), a wholly-owned subsidiary of FOP Holdings LLC, as of December 31, 2018 andthe 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, 2018, 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 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 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 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 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 thatwe 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 testbasis, 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 or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error orfraud, 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.
WWW/(>41? Wye/(>41?
We have served as the Company's auditor since 2015. We have served as the Company's auditor since 2015.
EISNERAMPER LLP New York, New York February 27, 2019 EISNERAMPER LLP New York, New York February 27, 2019
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### FORUM CAPITAL SECURITIES LLC (A wholly — ownedsubsidiary of FCP Holdings LLC) FORUM CAPITAL SECURITIES LLC (A wholly — owned subsidiary of FCP Holdings LLC)
STATEMENT OF FINANCIAL CONDITION STATEMENT OF FINANCIAL CONDITION
| December
December
2018
31,
31,
2018 | |
|--------------------------------------------------------------------------------------------------------|------------------------------------|
| ASSETS
ASSETS | |
| Cash
Cash | 509,622
509,622
\$
\$ |
| Investment
Investment
fees
fees
receivable
receivable
banking
banking | 3,525,641
3,525,641 |
| Other
Other
assets
assets | 19,244
19,244 |
| Total
Total
Assets
Assets | 4,054,507
4,054,507
\$
\$ |
| LIABILIITES
LIABILIITES
AND
MEMBER'S
MEMBER'S
EQUITY
AND
EQUITY | |
| Liabilities
Liabilities | |
| Accounts
Accounts
payable
and
accrued
accrued
expenses
expenses
payable
and | 188,678
188,678
\$
\$ |
| Contract
Contract
liabilities
liabilities | 125,000
125,000 |
| Total
Liabilities
Total
Liabilities | 313,678
313,678 |
| Member's
Equity
Equity
Member's | 3,740,829
3,740,829 |
| Total
Total
Liabilities
and
Member's
Member's
Equity
Liabilities
and
Equity | 4,054,507
4,054,507
\$
\$ |
{6}------------------------------------------------
(A wholly — owned subsidiary of FOP Holdings LLC) NOTES TO THE STATEMENT OF FINANCIAL CONDITION December 31, 2018 (A wholly — owned subsidiary of FCP Holdings LLC) NOTES TO THE STATEMENT OF FINANCIAL CONDITION December 31, 2018
### 1. Nature of business 1. Nature of business
Forum Capital Securities LLC (the "Company"), a wholly-owned subsidiary of FOP Holdings LLC (the "Parent"), is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company's business is primarily comprised of investment banking fees for capital raising and private placement services. Forum Capital Securities LLC (the "Company"), a wholly-owned subsidiary of FCP Holdings LLC (the "Parent"), is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is amember of the Financial Industry Regulatory Authority ("FINRA"). The Company's business is primarily comprised of investment banking fees for capital raising and private placement services.
### 2. Summary of significant accounting policies 2. Summary of significant accounting policies
### Basis of Presentation Basis of Presentation
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
### 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 industry-specific 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 forthose 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 Company has adopted ASU 2014-09 effective January 1, 2018. The adoption had no impact to the financial statements and no adjustments were made to the beginning member's equity. 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 mostrecent current revenue recognition guidance, including industry-specific 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 theconsideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also specifies theaccounting for certain incremental costs of obtaining a contract, and costs to fulfill a contract with a customer. The Company has adopted ASU 2014-09 effective January 1, 2018. The adoption had no impact to the financial statements and no adjustments were made to the beginning member's equity.
The Company provides investment banking services and acts as the placement agent in connection with the private placement of securities to be issued by an investment company to any person or entity ("Investors"). Revenue for investment banking 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 investment banking 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 forrevenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2018, contract liabilities amounted to \$125,000. The Company provides investment banking services and acts as the placement agent in connection withthe private placement of securities to be issued by an investment company to any person or entity ("Investors"). Revenue for investment banking arrangements is generally recognized at the point in timethat 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 investment banking arrangements in which the performance obligations aresimultaneously 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. At December 31, 2018, contract liabilities amounted to \$125,000.
The Company acts as placement agent for various clients. Revenues are earned from fees arising from the private placement of securities in which the Company acts as placement agent. Revenue is recognized on the trade date (the date on which there is a closing) for the portion of capital raised by the Company. The Company acts as placement agent for various clients. Revenues are earned from fees arising from the private placement of securities in which the Company acts as placement agent. Revenue is recognized on the trade date (the date on which there is a closing) for the portion of capital raised by the Company.
The Company believes that the trade date is the appropriate point in time to recognize revenue forthe private placement of securities 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. The Company believes that the trade date is the appropriate point in time to recognize revenue for the private placement of securities as there are no significant actions which the Company needs to take subsequent to this date andthe issuer obtains the control and benefit ofthe capitalmarkets offering at that point.
{7}------------------------------------------------
(A wholly — owned subsidiary of FCP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018 (A wholly — owned subsidiary of FCP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018
### 2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
#### Investment Banking Fees Receivable Investment Banking Fees Receivable
The Company carries its investment banking fees receivable at billed amounts less an allowance for doubtful accounts. If necessary, on a periodic basis, the Company evaluates its investment banking fees receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. No allowance for doubtful accounts was required at December 31, 2018. The Company carries its investment banking fees receivable at billed amounts less an allowance for doubtful accounts. If necessary, on a periodic basis, the Company evaluates its investment banking feesreceivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. No allowance for doubtful accounts was required at December 31, 2018.
The Company has negotiated with certain clients the payment of investment banking fees over a period greater than one year. At December 31 , 2018, included in investment banking fees receivable is approximately \$1,096,000, which is due over a period greater than one year. The Company reserves the right to charge interest on any fees scheduled to become due over a period greater than one year. The Company has negotiated with certain clients the payment of investment banking fees over a period greater than one year. At December 31 , 2018, included in investment banking fees receivable is approximately \$1,096,000, which is due over a period greater than one year. The Company reserves the right to charge interest on any fees scheduled to become due over a period greater than one year.
### Income Taxes Income Taxes
The Company is a single member limited liability company, and treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code provides that any income or loss is passed through to the member for income tax purposes. The Company's parent is subject to the New York City Unincorporated Business Tax ("UBT"). As the liability associated with the UBT is principally the result of the operations of the Company, the UBT, which is calculated using currently enacted tax laws and rates, is recorded as an imputed expense or benefit. The Company is a single member limited liability company, and treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code provides that any income or loss is passed through to the member for income tax purposes. The Company's parent is subject to the New York City Unincorporated Business Tax ("UBT"). As the liability associated with the UBT is principally the result of the operations of the Company, the UBT, which is calculated using currently enacted tax laws and rates, is recorded as an imputed expense or benefit.
At December 31, 2018, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. At December 31, 2018, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require.
### Use of Estimates Use of Estimates
The preparation of these financial statements in conformity with accounting principles generally accepted in the United States ofAmerica requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
### 3. Fair value of financial instruments 3. Fair value of financial instruments
Financial instruments including investment banking fees receivable (Level 2) are carried at amounts that approximate fair value due to generally negligible credit risk and short term nature. Accounts payable and accrued expense (Level 2) and contract liabilities (Level 2) are carried at amounts that approximate fair value due to their short term nature. Financial instruments including investment banking fees receivable (Level 2) are carried at amounts that approximate fair value due to generally negligible credit risk and short term nature. Accounts payable and accrued expense (Level 2) and contract liabilities (Level 2) are carried at amounts that approximate fair value due to their short term nature.
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(A wholly — owned subsidiary of FOP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018 (A wholly — owned subsidiary of FCP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018
### 4. Regulatory requirement 4. Regulatory requirement
The Company is a member of FINRA, and is subject to the SEC Uniform Net Capital Rule 15c3—1. This rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2018, the Company's net capital was approximately \$196,000 which was approximately \$175,000 in excess of its minimum requirement of \$20,912. The Company's ratio of aggregate indebtedness to capital is 1.60 to 1. The Company is a member of FINRA, and is subject to the SEC Uniform Net Capital Rule 15c3-1. This rule requires the maintenance of minimum net capitaland that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2018, the Company's net capital was approximately \$196,000 which wasapproximately \$175,000 in excess of its minimum requirement of \$20,912. The Company's ratio of aggregate indebtedness to capital is 1.60to 1.
The Company is exempt from the provision of rule 15C3-3 under paragraph (k)(2)(i) of the rule. The Company is exempt from the provision of rule 15C3-3 under paragraph (k)(2)(i) of the rule.
### 5. Related party transactions 5. Related party transactions
Pursuant to a service agreement, the Parent provides various services on behalf of the Company. These include professional services, physical premises, utilities, the use of fixed assets, travel, insurance, subscriptions, taxes, personnel and other general and administrative services for which the Company pays the Parent. The Parent has charged substantially all of its expenses to the Company, as the Parent does not have any other operations. As of December 31, 2018, included in accounts payable and accrued expenses is \$154,301 due to Parent, representing amounts owed to the Parent relating to this agreement and the imputed New York City unincorporated business tax expense or benefit. Pursuant to a service agreement, the Parent provides various services on behalf of the Company. These include professional services, physical premises, utilities, the use of fixed assets, travel, insurance, subscriptions, taxes, personnel and othergeneral and administrative services for which the Company pays theParent. The Parent has charged substantially all of its expenses to the Company, as theParent does not have any other operations. As of December 31, 2018, included in accounts payable and accrued expenses is \$154,301 dueto Parent, representing amounts owed to the Parent relating to this agreement and the imputed New York City unincorporated business tax expense or benefit.
### 6. Concentrations 6. Concentrations
The Company periodically maintains significant cash balances in a single financial institution, which at times may exceed federally insured limits. Management does not anticipate any material losses as a result of this concentration. The Company periodically maintains significant cash balances in a single financial institution, which at times may exceed federally insured limits. Management does not anticipate anymaterial losses as a result of this concentration.
For the year ended December 31, 2018, approximately 97% of revenues earned were from two customers. Investment banking fees receivable from these two customers aggregated approximately \$3,470,000 at December 31,2018. For the year ended December 31, 2018, approximately 97% of revenues earned were from two customers. Investment banking fees receivable from these two customers aggregated approximately \$3,470,000 at December 31,2018.
### 7. Defined Benefit Retirement Plan 7. Defined Benefit Retirement Plan
The Parent maintains a defined benefit retirement plan to cover all employees. For the year ended December 31, 2018, the Parent charged the Company the amount that is required to be contributed by the Parent to the plan. The Parent maintains a defined benefit retirement plan to cover all employees. For the year ended December 31, 2018, the Parent charged the Company the amount that is required to be contributed by the Parent to the plan.
#### 8. Profit Sharing 401(k) Plan 8. Profit Sharing 401(k) Plan
The Parent maintains a defined contribution retirement plan under Internal Revenue Code Section 401(k). Employees are eligible to contribute a specified percentage of their salary, not to exceed the statutory limit, to the plan. No employer contributions will be made to the plan in accordance with the plan document. The Parent maintains a defined contribution retirement plan under Internal Revenue Code Section 401(k). Employees areeligible to contribute a specified percentage of their salary, not to exceed the statutory limit, to the plan. No employer contributions will be made to the plan in accordance with the plan document.
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(A wholly — owned subsidiary of FOP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018 (A wholly — owned subsidiary of FCP Holdings LLC) NOTES TO FINANCIAL STATEMENTS December 31, 2018
### 9. Commitments and Contingent Liabilities 9. Commitments and Contingent Liabilities
On June 8, 2015, the Parent renewed its original lease term to commence on March 17, 2016 and end on April 30, 2021. The monthly rent under this agreement is \$30,218, which is charged to the Company. On June 8, 2015, the Parent renewed its original lease term to commence on March 17, 2016 and end on April 30, 2021. The monthly rent under this agreement is \$30,218, which is charged to the Company.
As of December 31, 2018, future minimum lease rental payments are payable as follows: As of December 31, 2018, future minimum lease rental payments arepayable as follows:
| December
December
Period
Period
ending
ending
31
31 | Lease
commitment
commitment
Lease | |
|--------------------------------------------------------------------------|--------------------------------------------|--------------------|
| 2019
2019 | \$
\$ | 362,610
362,610 |
| 2020
2020 | \$
\$ | 362,610
362,610 |
| April
April
30,
30,
2021
2021 | \$
\$ | 120,870
120,870 |
| | \$
\$ | 846,090
846,090 |
| | | |
### 10. Subsequent Events 10. Subsequent Events
Subsequent events have been evaluated through February 27, 2019 which is the date the financial statements were available to be issued, and no additional events have been identified which require identification. Subsequent events have been evaluated through February 27, 2019 which is the date the financial statements were available to be issued, and no additional events have been identified which require identification.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.