# WESTON FINANCIAL SERVICES LLC X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: WESTON FINANCIAL SERVICES LLC - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001146227-20-000001 - CIK: 1146227 - File #: 8-53617 - Material weakness: No - Auditor: Fulvio & Associates, LLP - Auditor location: New York, NY - Contact: Edward Cohen - Phone: 2035576070 - Signed by: James McCann (General Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1146227/000114622720000001/public.pdf --- {0}------------------------------------------------ Statement of Financial Condition For the Year Ended December 31, 2019 Statement ofFinancial Condition For the Year Ended December 31, 2019 {1}------------------------------------------------ | Contents
Contents | |----------------------| |----------------------| | 1A-1B
1A—1B | | |----------------|----------| | | | | 2A | | | ZB | | | | | | 4-8
4-8 | | | | 2A
23 | {2}------------------------------------------------ # FULVIO &ASSOC1ATES,L.L.P. FULVIO GASSOCIATES, L.L.P. ' ' ' < New York Oflice: Connecticut Office: 4 C 6' Y t if: C' d P u b l lC A L C 0 1" n t a n tS S West 37th Street, 4th Floor 953 Rowayton Avenue NewYork, New York 10018 Rowayton, CT 06853 FAX: 212-575-5159 FAX: 203—857—0280 wwwfiflviollptom - - NewYork Ofl'icc: Connecticut Otiice: C e 1 t 1ft t' d P u b I l C A C C 014 n t a n t S 5 West 37th Street, 4th Floor 953 Rowayton Avenue NewYork. Ncork 10018 Rowayton. CT 06853 www. firlviollpmom TEL: 212-490—31 13 TEL: 203-857-4400 TEL: 212-490-3113 TEL: 203-857—4400 FAX: 212-575-5159 FAX1203-357—0280 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members' of Weston Financial Services LLC To the Members' of Weston Financial Services LLC #### Opinion on the Financial Statement Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Weston Financial Services LLC (the "Company") as of December 31, 2019, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of financial condition of Weston Financial Services LLC (the "Company") as of December 31, 2019, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position ofthe Company as of December 31, 2019 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 ofthe 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 withthe 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 andthe applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards ofthe 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 these risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We conducted our audit in accordance with the standards ofthe 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 fiaud. 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 statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. {3}------------------------------------------------ #### Explanatory paragraph Explanatory paragraph The accompanying financial statement has been prepared assuming that the Company will continue as a going concern. As discussed in Note 8 to the financial statement, the Company has received its last payment from its main source of revenue. The fact that the Company is losing 96% of its annual revenue and has no plans to replace it raises substantial doubt about its ability to continue as a going concern. Management's plans regarding this matter is also described in Note 8. The financial statement does not include any adjustments that might result from filing Form BDW and liquidating. Our opinion is not modified With respect to this matter. The accompanying financial statement has been prepared assuming that the Company will continue as a going concern. As discussed in Note 8 to the financial statement, the Company has received its last payment from its main source of revenue. The fact that the Company is losing 96% of its annual revenue and has no plans to replace it raises substantial doubt about its ability to continue as a going concern. Management's plans regarding this matter is also described in Note 8. The financial statement does not include any adjustments that might result from filing Form BDW and liquidating. Our opinion is not modified with respect to this matter. 1% Wow, on? film's % Agape/w, on? 2019 is our first year serving as the Company's auditor. 2019 is our first year serving as the Company's auditor. New York, NY New York, NY February 26,2020 February 26, 2020 {4}------------------------------------------------ UNITED STATES OMB APPROVAL SECURITIESANDEXCHANGECOMMISSION OMB Number: 3235—0123 Washington, D.C. 20549 Expires: August 31, 2020 UNITED STATES OMB APPROVAL SECURITIESANDEXCHANGECOMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020 Estimated average burden Estimated average burden # ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0EXRfi- 1| I7lA-5 SEC FILE NUMBER ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0EXRXI: 1| I7IA-5 SEC FILE NUMBER 8— 5361 7 8- 536 1 7 FACING PAGE FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Actof 1934 and Rule 17a-5 Thereunder Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule l7a-5 Thereunder | BEGINNING
REPORT
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THE | 01/01/201
01/01/201
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2/31/201
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or | T"'For' conditions ofconfidential treatment ofcertain portions ofthisfiling, see section 240.1'7a-5(e)(3). in"For conditions ofconfidential treatment ofcertain portions ofthisfiling. see section 240. 1 70-5(e)(3). {6}------------------------------------------------ # Weston Financial Services LLC Statement of Financial Condition At December 31, 2019 Weston Financial Services LLC Statement of Financial Condition At December 31, 2019 | ASSETS:
ASSETS: | | |--------------------------------------------------------------------------------------------------------|--------------------------------| | Cash
Cash | 120,061
120,061
\$
\$ | | receivable
Fees
Fees
receivable | 221,000
221,000 | | Prepaid
expenses
expenses
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6,221 | | Assets
Total
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Assets | 347,282
347,282
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\$ | | LIABILITIES
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EQUITY: | | | LIABILITIES:
LIABILITIES: | | | Accrued
Accrued
expenses
expenses | 18,248
18,248
\$
\$ | | Commissions
Commissions
payable
payable | 7,650
7,650 | | Subordinated
Subordinated
loan
loan | 75,000
75,000 | | Total
Total
Liabilities
Liabilities | 100,898
100,898 | | MEMBERS'
MEMBERS'
EQUITY
EQUITY | 246,384
246,384 | | Total
Total
Liabilities
Liabilities
and
and
Members'
Members'
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Equity | \$347,282
\$347,282 | See accompanying notes tofinancial statements. See accompanying notes tofinancial Statements. {7}------------------------------------------------ #### 1. Business 1. Business Weston Financial Services LLC ("Company"), a Delaware limited liability company, is a registered brokerdealer in securities under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is engaged primarily in selling limited partnerships in primary distributions and private placement of securities. Weston Financial Services LLC ("Company"), a Delaware limited liability company, is a registered brokerdealer in securities under the Securities Exchange Act of1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is engaged primarily in selling limited partnerships in primary distributions andprivate placement of securities. The Company does not hold funds or securities for customers and does not carry accounts of customers. Accordingly, the Company operates under the exemptive provisions of Securities and Exchange Commission ("SEC") Rule 15c3—3(k)(2)(i). The Company does not hold fimds or securities for customers and does not carry accounts of customers. Accordingly, the Company operates under the exemptive provisions of Securities and Exchange Commission ("SEC") Rule 15c3-3(k)(2)(i). ### 2. Significant Accounting Policies 2. Significant Accounting Policies # Basis ofPresentation Basis ofPresentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ofAmerica (US. GAAP). The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ofAmerica (US. GAAP). #### Recently Adopted Accounting Pronounccments Recently AdoptedAccounting Pronouncements Effective January 1, 2018, the Company adopted the recently effective standards under Revenue from Contracts with Customers (Topic 606), which is applicable to all companies that enter into contracts with customers to transfer goods or services. These standards are effective for public business entities for interim and annual reporting periods beginning after December 15, 2017. Entities have the choice to apply these ASU's either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date ofthe initial application and not adjusting comparative information. Effective January 1, 2018, the Company adopted the recently effective standards under Revenue from Contracts with Customers (Topic 606), which is applicable to all companies that enter into contracts with customers to transfer goods or services. These standards are effective for public business entities for interim and annual reporting periods beginning after December 15, 2017. Entities have the choice to apply these ASU's either retrospectively to eachreporting period presented or byrecognizing the cumulative effect of applying these standards at the date of the initial application and not adjusting comparative information. The Company has elected the modified retrospective method (i.e., cumulative method) which did not result in a cumulative-effect adjustment at the date of adoption. The implementation ofthis new standard had no material impact on the Company's financial statements for the year ended December 31, 2019. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The Company has elected the modified retrospective method (i.e., cumulative method) which did not result in a cumulative-effect adjustment at the date of adoption. The implementation of this new standard had no material impact on the Company's financial statements for the year ended December 31, 2019. The new revenue recognition guidance doesnot apply to revenue associated withfinancial instruments, interest income and expense, leasing and insurance contracts. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-2 will require the recognition oflease assets and lease liabilities on the balance sheet related to the rights and obligations created by lease agreements, inclusive of those leases classified as operating leases under previous US. GAAP, along with the disclosure of key information about leasing arrangements. ASU 2016-02 is effective for certain companies (including the Company) for fiscal years beginning after December 15, 2018. Early adoption was permitted. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-2 will require the recognition oflease assets and lease liabilities on the balance sheet related to the rights and obligations created by lease agreements, inclusive ofthose leases classified as operating leases under previous US. GAAP, along with the disclosure of key information about leasing arrangements. ASU 2016-02 is effective for certain companies (including the Company) for fiscal years beginning after December 15, 2018. Early adoption was permitted. The Company has adopted, as of January 1, 2019, ASU 2016-02 Leases — (Topic 842). For the year ended December 31, 2019, ASU 2016-02 has no material impact on the financial condition and results of operations of the Company (See Note 7). The Company has adopted, as of January 1, 2019, ASU 2016-02 Leases — (Topic 842). For the year ended December 31, 2019, ASU 2016-02 has no material impact on the financial condition and results of operations of the Company (See Note7). {8}------------------------------------------------ ### 2. Significant Accounting Policies, continued 2. Significant Accounting Policies, continued #### Cash Cash The Company maintains its cash balances at one financial institution. At times, the amount on deposit at this institution may exceed the maximum balance insured by the Federal Deposit Insurance Corporation ("FDIC"). The Company maintains its cash balances at one financial institution. At times, the amount on deposit at this institution may exceed the maximum balance insured by the Federal Deposit Insurance Corporation ("FDIC"). #### Revenue Recognition Revenue Recognition Revenue from contracts with customers includes asset management fees and investment advisory fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure ofthe Company' 3 progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Revenue from contracts with customers includes asset management fees andinvestment advisory fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure ofthe Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The primary sources ofrevenue for the Company are as follows: The primary sources ofrevenue for the Company are as follows: #### Asset Management Fees Asset Management Fees The Company receives a contractual amount from one client based on assets under management in accordance with a service termination agreement. Based on this agreement, the Company earns a fixed amount every quarter through December 31, 2019. Each such payment is deemed to be earned evenly over the applicable quarter because the client is receiving and consuming the benefits as time passes over such quarter. With respect to a particular investor introduced by the Company to such client, the Company receives quarterly variable payments attributable to the assets under management of such introduced investor. Each such investor—based payment is deemed to be earned evenly over the applicable quarter because the client is receiving and consuming the benefits related to that investor as time passes over such quarter. The Company receives a contractual amount from one client based on assets under management in accordance witha service termination agreement. Based on this agreement, the Company earns a fixed amount every quarter through December 31,2019. Each such payment is deemed to be earned evenly over the applicable quarter because the client is receiving and consuming the benefits as time passes over such quarter. With respect to a particular investor introduced by the Company to such client, the Company receives quarterly variable payments attributable to the assets under management of such introduced investor. Each such investor-based payment is deemed to be earned evenly over the applicable quarter because the client is receiving and consuming the benefits related to that investor as time passes over such quarter. #### Compensation and Commissions Compensation and Commissions Registered representatives of the Company have agreed with the Company to receive a negotiated portion ofthe fees received by the Company with respect to transactions worked on by the registered representative. Registered representatives of the Company have agreed with the Company to receive a negotiated portion ofthe fees received by the Company with respect to transactions worked on by the registered representative. #### Fees Receivable Fees Receivable Fees receivable are stated at the amount the Company expects to collect. The Company records allowances for doubtful accounts resulting from the inability of clients to make required payments when considered necessary. At December 31, 2019, no allowances were necessary and fees receivable totaled \$221,000. Approximately 96% of fees receivable is from one client. Fees receivable are stated at the amount the Company expects to collect. The Company records allowances for doubtful accounts resulting from the inability of clients to make required payments when considered necessary. At December 31, 2019, no allowances were necessary and fees receivable totaled \$221,000. Approximately 96% of fees receivable is from one client. {9}------------------------------------------------ ### 2. Significant Accounting Policies, continued 2. Significant Accounting Policies, continued # Use ofEstimates Use ofEstimates The preparation ofthe financial statements in conformity with US. GAAP requires Company management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The preparation ofthe financial statements in conformity with US. GAAP requires Company management to make estimates andassumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from those estimates. #### Income Taxes Income Taxes No Federal or State income tax provision has been made in the accompanying financial statements since the members are required to report their respective share of the Company's income in their individual income tax returns. The Company is subject to New York City unincorporated business tax. No provision was required forthe year ended December 31, 2019. The Company applies the provisions of ASC 740, "Income Taxes", which clarifies the accounting for and reporting of income tax uncertainties, and requires additional disclosures related to uncertain income tax positions. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 requires that the Company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals orlitigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than—not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. No Federal or State income tax provision has been made in the accompanying financial statements since the members are required to report their respective share of the Company's income in their individual income tax returns. The Company is subject to New York City unincorporated business tax. No provision was required for the year ended December 31, 2019. The Company applies the provisions of ASC 740, "Income Taxes", which clarifies the accounting for and reporting of income tax uncertainties, and requires additional disclosures related to uncertain income tax positions. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 requires that the Company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. There were no unrecognized tax benefits for the year ended December 31, 2019. Each of the Company's Federal tax returns filed in the 3-year period ended December 31, 2019 remains subject to examination by the Internal Revenue Service. As of December 31, 2019, there was no impact to the financial statements relating to accounting for uncertainty in income taxes. There were no unrecognized tax benefits for the year ended December 31, 2019. Each of the Company's Federal tax returns filed in the 3-year period ended December 31, 2019 remains subject to examination by the lntemal Revenue Service. As of December 31, 2019, there was noimpact to the financial statements relating to accounting for uncertainty in income taxes. #### 3. Revenue 3. Revenue Fee income earned by the Company from one client, amounted to \$850,000 (96% of total fee income) for the year ended December 31, 2019. A portion ofthe fee income is designated as payable to Weston Capital Partners Master Fund II, Ltd. pursuant to a settlement agreement, (See note 6). Fee income earned by the Company from one client, amounted to \$850,000 (96% of total fee income) for the year ended December 31,2019. A portion ofthe fee income is designated as payable to Weston Capital Partners Master Fund II, Ltd.pursuant to a settlement agreement, (See note 6). # Revenue consists ofthefollowing: Revenue consists ofthefollowing: | Item
Item
Breakdown
Breakdown
Revenue
Revenue | Amount
Amount | of
of
Timing
Timing
Recognition
Recognition | |----------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------| | Asset
management
fees-Fixed
(a.)
Asset
management
fees-Fixed
(a.) | 850,000
850,000
\$
\$ | Recorded
Recorded
earned
earned
as
as | | (b.)
Investment
advisory
(b.)
Investment
advisory
fees
fees | 34
826
34
826 | Recorded
Recorded
earned
earned
as
as | | Total
Total | 884,826
884,826
§
8 | | {10}------------------------------------------------ #### 3. Revenue, continued 3. Revenue, continued - (a) The Company has an amended and restated services termination agreement (the "Agreement") with White Oak Global Advisors, LLC and White Oak Partners, LLC (collectively, "White Oa "). Per the agreement, White Oak agrees to pay Weston Financial Services, LLC \$212,500 within 30 days after the end of each calendar quarter beginning with the first quarter of 2013 and continuing through December 31, 2019, with respect to investments under management. (a) The Company has an amended and restated services termination agreement (the "Agreement") with White Oak Global Advisors, LLC and White Oak Partners, LLC (collectively, "White Oak"). Per the agreement, White Oak agrees to pay Weston Financial Services, LLC \$212,500 within 30 days after the end of each calendar quarter beginning withthe first quarter of 2013 and continuing through December 31,2019, with respect to investments under management. - (b) The Company is paid as compensation for its solicitation services, a percentage ofthe fees received by an investment fund in connection with a client having assets so managed. These fees are paid to the Company and then a portion paid to the registered representatives as commissions. (b) The Company is paid as compensation for its solicitation services, a percentage ofthe fees received by an investment fund in connection with a client having assets so managed. These fees are paid to the Company andthen a portion paid to the registered representatives as commissions. ### 4. Related Party Transactions 4. Related Party Transactions On December 19, 2014, the Company received a subordinated loan from a member ofthe Company in the amount of \$75,000. The loan is subordinated to allclaims of creditors ofthe Company. The loan matures on December 19, 2020. There is an extension of maturity clause in the agreement that extends the subordinated loan an additional year each year. Interest is payable quarterly at a rate of 10% per annum. For the year ended December 31, 2019, interest expense of \$7,500 has been charged to operations. On December 19, 2014, the Company received a subordinated loan from a member of the Company in the amount of\$75,000. The loan is subordinated to all claims of creditors ofthe Company. The loan matures on December 19, 2020. There is an extension of maturity clause in the agreement that extends the subordinated loan an additional year each year. Interest is payable quarterly at a rate of10% perannum. For the year ended December 31,2019, interest expense of \$7,500 has been charged to operations. ## 5. Regulatory Net Capital Requirements 5. Regulatory Net Capital Requirements The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance ofminimum regulatory net capital and a specified ratio ofaggregate indebtedness to regulatory net capital, both as defined, which shall not exceed 15 to 1. Regulatory net capital and aggregate indebtedness may fluctuate on a daily basis. As of December 31, 2019, the Company had net capital of \$101,813 which was \$96,813 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.25 to 1 at December 31, 2019. The Company is subject to the SEC Uniform Net CapitalRule (Rule 1503-1), which requires the maintenance ofminimum regulatory net capital and a specified ratio ofaggregate indebtedness to regulatory net capital, both as defined, which shall not exceed 15 to 1. Regulatory net capital and aggregate indebtedness may fluctuate on a dailybasis.As of December 31, 2019, the Company had net capital of \$101,813 which was \$96,813 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.25 to 1 at December 31, 2019. #### 6. Settlement Agreement 6. Settlement Agreement The Company has entered into a settlement agreement ("Settlement Agreement") with Wimbledon Financing Master Fund Ltd., as assignee ofWeston Capital Partners Master Fund II, Ltd. (Partners 11).The Company will make payments to Wimbledon Financing Master Fund, Ltd. as assignee of Weston Capital Partners Master Fund II, Ltd. (Partners 11) through February 4, 2020, Payments totaling \$455,000 were made during 2019, and the Company is obligated to make payments of \$115,000 in 2020. The Company may be obligated to make a residual payment to Wimbledon according to procedures set out in the Settlement Agreement. Based on these procedures there was no residual payment for 2019. The Company has entered into a settlement agreement ("Settlement Agreement") with Wimbledon Financing Master Fund Ltd., as assignee ofWeston CapitalPartners Master Fund II, Ltd. (Partners II). The Company will make payments to Wimbledon Financing Master Fund, Ltd. as assignee of Weston Capital Partners Master Fund II, Ltd. (Partners ll) through February 4, 2020, Payments totaling \$455,000 were made during 2019, and the Company is obligated to make payments of \$115,000 in 2020. The Company may be obligated to make a residual payment to Wimbledon according to procedures set out in the Settlement Agreement. Based on these procedures there was no residual payment for 2019. {11}------------------------------------------------ # 7. Commitments and Contingent Liabilities 7. Commitments and Contingent Liabilities On September 1, 2018, the Company entered into a lease agreement for office space thatterminated on June 30, 2019. The monthly rent under this agreement was \$1,500 per month. On September 1, 2019, the Company entered into a new lease agreement. The agreement renews on a month-to-month basis, unless and until canceled at the end of any month, upon no less than thirty days prior written notice from either party. The monthly base rent under this agreement is approximately \$453. On September 1, 2018, the Company entered into a lease agreement for office space that terminated on June 30, 2019. The monthly rent under this agreement was \$1,500 per month. On September 1, 2019, the Company entered into a new lease agreement. The agreement renews on a month-to-month basis, unless and until canceled at the end ofany month, upon no less than thirty days prior written notice from either party. The monthly base rent under this agreement is approximately \$453. For the year ended December 31, 2019, the total rent expense amounted to \$11,208, which is included on the statement of operations. For the year ended December 31, 2019, the total rent expense amounted to \$11,208, which is included on the statement of operations. #### 8. Subsequent Events 8. Subsequent Events During January 2020, under the Settlement Agreement, the Company received its last payment of \$212,500 which was its main source ofrevenue. The Company is considering filing Form BDW with the Securities and Exchange Commission and FINRA, and liquidating the Company by the end of June 30, 2020. The Company has determined thatsufficient cash is available to meet all of its obligations during this time period. The Company has performed an evaluation of events that have occurred subsequent to December 31, 2019 and through February 26, 2020, which is the date the financial statements were available to be issued. No events were identified which require disclosure. During January 2020, under the Settlement Agreement, the Company received its last payment of \$212,500 which was its main source ofrevenue. The Company is considering filing Form BDW with the Securities and Exchange Commission and FINRA, and liquidating the Company by the end ofJune 30, 2020. The Company has determined that sufficient cash is available to meet all of its obligations during this time period. The Company has performed an evaluation of events that have occurred subsequent to December 31, 2019 and through February 26, 2020, which is the date the financial statements were available to be issued. No events were identified which require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.