# SORRENTO PACIFIC FINANCIAL, LLC X-17A-5 (2023-04-14) — Broker-dealer annual report - Company: SORRENTO PACIFIC FINANCIAL, LLC - Form: X-17A-5 - Filed: 2023-04-14 - Period: 2022-12-31 - Accession: 0001252927-23-000005 - CIK: 1252927 - File #: 8-66046 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman - Auditor location: New York, NY - Contact: Ted Horwith - Phone: 858-882-6503 - Email: theodore.horwith@atriawealth.com - Website: atriawealth.com - Signed by: Ted Horwith (Managing Director - Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1252927/000125292723000005/SPFshortreport22.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: > SEC FILE NUMBER 8-66046 # **ANNUAL REPORTS FORM X-17A-5 PART III** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2022 12/31/2022 MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ SORRENTO PACIFIC FINANCIAL LLC TYPE OF REGISTRANT (check all applicable boxes): ܆ Broker-dealer ܆ Security-based swap dealer ܆ Major security-based swap participant ܆ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 10150 MEANLEY DRIVE, 1ST FLOOR | | (No. and Street) | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------|----------------------------------|--| | San
Diego
_____________________________________________________________________________________ | CA | | 92131 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Ted
Horwith
_____________________________________________________________________________________ | (858)
882-6503 | | Theodore.Horwith@atriawealth.com | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Citrin
Cooperman
_____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name) | | | | | 50
Rockafeller
Plaza
_____________________________________________________________________________________ | New
York | NY | 10020 | | | (Address) | (City) | (State) | (Zip Code) | | | 11/02/2005
_____________________________________________________________________________________ | | 2468 | | | | (Date of Registration with PCAOB)(if applicable) | (PCAOB Registration Number, if applicable) | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.** {1}------------------------------------------------ #### OATH OR AFFIRMATION | Ted Horwith | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of SORRENTO PACIFIC FINANCIAL LLC | as of | | 12/31 | 2 022 | | | 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. | | Title: # See Attachment for California Notary Signature: Managing Director - Chief Financial Officer Notary Public ### This filing\*\* contains (check all applicable boxes): - @ (a) Statement of financial condition. - = (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. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ {g} Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - 口 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - @ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {2}------------------------------------------------ | ACKNOWLEDGMENT | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document. | | | | | | State of California
Los Angeles
County of County of | | | | | | April 14, 2023
On | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(insert name and title of the officer) | | | | | personally appeared Theodore Horwith AKA Ted Horwith | who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. | | | | | paragraph is true and correct. | I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing | | | | | WITNESS my hand and official seal. | KAREN VILLATORO
Comm. No. 2379011
NOTARY PUBLIC - CALIFORNIA | | | | | Signature | LOS ANGELES COUNTY
My Comm. Exp. OCT. 19, 2025
(Seal | | | | {3}------------------------------------------------ # SORRENTO PACIFIC FINANCIAL, LLC ANNUAL FILING IN ACCORDANCE WITH RULE 17a-5 AS OF DECEMBER 31, 2022 TOGETHER WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THEREON {4}------------------------------------------------ # SORRENTO PACIFIC FINANCIAL, LLC # TABLE OF CONTENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ................. 1 ### FINANCIAL STATEMENT | Statement of Financial | | |------------------------|---| | No | C | | es to Financial Statem | T | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member and Board of Managers Sorrento Pacific Financial, LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Sorrento Pacific Financial, LLC as of December 31, 2022, 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 Sorrento Pacific Financial, LLC as of December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of Sorrento Pacific Financial, LLC's management. Our responsibility is to express an opinion on Sorrento Pacific Financial, LLC'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 Sorrento Pacific Financial, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those 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. # **Uncertainty Regarding Impacts of Recent Disruptions in U.S. Banking System** As discussed in Note to the financial statement, the Company maintains cash balances, which may exceed federally insured limits, in one financial institution. In March 2023, the shut-down of certain financial institutions raised economic concerns over disruption to the U.S. banking system. Given the uncertainty of the situation, the related financial statement impact cannot be reasonably estimated at this time. Our opinion is not modified with respect to this matter. We have served as Sorrento Pacific Financial, LLC's auditor since 2020. New York, New York April 14, 2023 {6}------------------------------------------------ # SORRENTO PACIFIC FINANCIAL, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 | ASSETS | | | |----------------------------------------|------|-----------| | Cash and cash equivalents | ಲ್ಲಿ | 1,404,826 | | Receivables from clearing firms | | 817,128 | | | | | | Other receivables | | 26.089 | | Other assets and deposits | | 37.610 | | Deposits with clearing firms | | 100,000 | | | | | | Total assets | ಲ್ಲಿ | 2,385,653 | | | | | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES | | | | Accounts payable | ಕ್ಕಾ | 34.582 | | Accrued commissions | | 476.815 | | | | | | Due to affiliates | | 139,999 | | Other accrued liabilities | | 242,133 | | Total liabilities | | 893,529 | | | | | | COMMITMENTS AND CONTINGENCIES (Note 7) | | | | MEMBER'S EQUITY | | 1,492,124 | | | | | | Total liabilities and member's equity | ಕ್ಕಾ | 2,385,653 | The accompanying notes are an integral part of this financial statement. {7}------------------------------------------------ # SORRENTO PACIFIC FINANCIAL, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2022 #### NOTE 1 - ORGANIZATION AND DESCRIPTION OF THE COMPANY Sorrento Pacific Financial, LLC (the "Company"), a wholly-owned subsidiary of its ultimate parent company, Atria Wealth Solutions, Inc. ("AWSI"), is a registered broker-dealer and investment advisor licensed by the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority. The Company provides broker-dealer and investment advisory services for regional and community banks and independent registered representatives as an introducing broker-dealer, clearing customer transactions through other broker-dealers on a fully disclosed basis. ### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Basis of Presentation This financial statement is prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which require the Company to make estimates and assumptions regarding valuations of certain financial instruments, accruals for liabilities, and other matters that affect the financial statement and related disclosures. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the financial statement. ### Concentrations of Credit Risk The Company maintains cash balances with a financial institution. At December 31, 2022, accounts at the financial institution are insured by the Federal Deposit Insurance Corporation up to \$250,000. As of December 31, 2022, the Company had uninsured cash balances of \$473,499. Management performs periodic evaluations of the relative credit standing of this institution. The Company has not recognized any credit losses from this institution. The Company maintains accounts at clearing firms, which are insured by the Securities Investors Protection Corporation up to \$500,000 (including a maximum of \$250,000 for claims for uninvested cash awaiting reinvestment). As of December 31, 2022, the Company had an uninsured cash balance of \$23,209 at the Company's primary clearing firm. Management performs periodic evaluations of the relative credit standing of the clearing firms. The Company has not recognized any credit losses from clearing firms during the year ended December 31, 2022. At December 31, 2022, the Company had commission and transaction related receivables of \$411,509 with the Company's primary clearing firm or 50% of the total commission and transaction related receivables. #### Income Taxes The Company is a single member limited liability company which is disregarded for federal income tax purposes. Accordingly, no income tax expense or deferred tax assets and liabilities are recorded within the Company's financial statement. ### Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. {8}------------------------------------------------ # 6255(172 3\$&,),& ),1\$1&,\$///& 127(672),1\$1&,\$/67\$7(0(17 '(&(0%(5 #### *Receivables from Clearing Firms and Other Receivables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roperty and Equipment* 3URSHUW\DQGHTXLSPHQWDUHUHFRUGHGDWFRVWDQGDUHGHSUHFLDWHGRQDVWUDLJKWOLQHEDVLV RYHUWKHHVWLPDWHGXVHIXOOLYHVRIWKHGHSUHFLDEOHDVVHWVZKLFKUDQJHIURPWKUHHWRVHYHQ \HDUV0DLQWHQDQFHFRVWVDUHFRQVLGHUHGSHULRGFRVWVDQGDUHH[SHQVHGDVLQFXUUHG ### **127(±3523(57<\$1'(48,30(171(7** 3URSHUW\DQGHTXLSPHQWQHWFRQVLVWVRIWKHIROORZLQJDW'HFHPEHU | &RPSXWHUVDQGHTXLSPHQW | |
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| # **127(±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{9}------------------------------------------------ # SORRENTO PACIFIC FINANCIAL, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2022 The Company is exempt from the provisions of Rule 15c3-3 (per Paragraph (k)(2)(ii) of such rule) under the Securities Exchange Act of 1934 as a broker or dealer which carries no customer accounts and does not otherwise hold funds or securities of customers. Due to such exemption, the Company is not required to prepare a determination of reserve requirement for brokers or dealers. ### NOTE 6 - RELATED PARTY TRANSACTIONS The Company is involved in certain related party transactions with an affiliate, CUSO Financial Services, L.P. ("CFS"). For the year ended December 31, 2022, the Company was charged \$793,545 by CFS for administrative, consulting, and reporting platform services, of which \$746,820 is included within advertising and market development and outside services and \$63,525 is included in outside services in the accompanying Statement of Financial Condition. The Company has an expense sharing agreement pertaining to the Company's administrative and reporting platform with CFS Insurance and Technology Services, LLC ("CI&TS"), a related entity. Under the terms of this agreements, the Company is allocated depreciation expense related to the administrative and reporting platform. For the year ended December 31, 2022, the Company was charged \$26,661 by Cl&TS, which is included in outside services in the accompanying Statement of Financial Condition. Additionally, the Company is involved in certain related party transactions with CI&TS. Beginning in 2012, Cl&TS began providing insurance agency services to the Company. For the year ended December 31, 2022, the Company was charged \$80,000 by Cl&TS which is included in outside services in the accompanying Statement of Financial Condition. The Company has an expense sharing agreement with AWSI. The Company's expense sharing agreement provides that it will pay AWSI for employee compensation and benefits. For the year ended December 31, 2022, employee compensation and benefits was \$97,780 and is included in employee compensation and benefits in the accompanying Statement of Financial Condition. The Company has expense sharing agreements with CFS, CI&TS, AWSI, and other broker-dealer affiliates for ongoing operational expenses. For the year ended December 31, 2022, expenses allocated from other affiliates and to other affiliates included in the Statement of Financial Condition are as follows: | | | Allocated From
Affiliates | | Allocated To
Affiliates | | |---------------------------------------------------|------|------------------------------|----|----------------------------|--| | Advertising and market development | ಕಾ | 23.474 | ಕಾ | (628) | | | Commissions and clearing | | 97.098 | | | | | Communication and technology | | 109,421 | | | | | Employee compensation and benefits | | 172,317 | | (11,151) | | | Office supplies and printing | | 2,644 | | | | | Outside services | | 3,819 | | (7) | | | Taxes, licenses, insurance, and registration fees | | 2,976 | | (874) | | | Travel and entertainment | | 284.944 | | (21,408) | | | Total | ಕ್ಕಾ | 696,693 | ಕಾ | (34,068) | | {10}------------------------------------------------ # 6255(172 3\$&,),& ),1\$1&,\$///& 127(672),1\$1&,\$/67\$7(0(17 '(&(0%(5 #### **127(±&200,70(176\$1'&217,1\*(1&,(6** #### *Litigation* ,QWKHQRUPDOFRXUVHRIEXVLQHVVWKH&RPSDQ\PD\EHSDUW\WROLWLJDWLRQRURWKHU UHJXODWRU\PDWWHUV,IWKHDVVHVVPHQWRIDFRQWLQJHQF\LQGLFDWHVWKDWLWLVSUREDEOHWKDWD PDWHULDOORVVKDVEHHQLQFXUUHGDQGWKHDPRXQWRIWKHOLDELOLW\FDQEHHVWLPDWHGWKH HVWLPDWHGOLDELOLW\ZRXOGEHDFFUXHGLQWKH&RPSDQ\¶VILQDQFLDOVWDWHPHQWV,IWKH DVVHVVPHQWLQGLFDWHVWKDWDSRWHQWLDOO\PDWHULDOORVVFRQWLQJHQF\LVQRWSUREDEOHEXWLV UHDVRQDEO\SRVVLEOHRULVSUREDEOHEXWFDQQRWEHHVWLPDWHGWKHQWKHQDWXUHRIWKH FRQWLQJHQWOLDELOLW\WRJHWKHUZLWKDQHVWLPDWHRIWKHUDQJHRISRVVLEOHORVVLIGHWHUPLQDEOH DQGPDWHULDOZRXOGEHGLVFORVHG ### *Clearing and Custody, and Trustee and Administrator Relationships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±(03/2<((N 6\$9,1\*63/\$1** 7KH&RPSDQ\KDVDN VDYLQJVSODQWKH3ODQ FRYHULQJDOOHOLJLEOHHPSOR\HHV 7KH3ODQSURYLGHVIRUYROXQWDU\HPSOR\HHFRQWULEXWLRQVXSWRDGROODUOLPLWSUHVFULEHGE\ODZ DQGKDVDQHPSOR\HUPDWFKLQJSODQ ### **127(±5(&(17(9(1765(/\$7,1\*727+(',65837,21,17+(86%\$1.,1\* 6<67(06** ,Q0DUFKWKH)',&SODFHGFHUWDLQILQDQFLDOLQWXLWLRQVLQWRUHFHLYHUVKLSUDLVLQJ HFRQRPLFFRQFHUQVRYHUGLVUXSWLRQLQWKH86EDQNLQJV\VWHP7KH86JRYHUQPHQWWRRN FHUWDLQDFWLRQVWRVWUHQJWKHQSXEOLFFRQILGHQFHLQWKH86EDQNLQJV\VWHP+RZHYHUWKHUH FDQEHQRFHUWDLQW\WKDWWKHDFWLRQVWDNHQE\WKH86JRYHUQPHQWZLOOEHHIIHFWLYHLQ PLWLJDWLQJWKHHIIHFWVRIILQDQFLDOLQVWLWXWLRQIDLOXUHVRQWKHHFRQRP\ZKLFKPD\LQFOXGHOLPLWV RQDFFHVVWRVKRUWǦWHUPOLTXLGLW\LQWKHQHDUWHUPRURWKHUDGYHUVHHIIHFWV5HIHUWR1RWHIRU FDVKDPRXQWVLQH[FHVVRIIHGHUDOO\LQVXUHGOLPLWVWKDWH[SRVHWKH&RPSDQ\WRULVNRIORVVLI WKHFRXQWHUSDUW\LVXQDEOHWRSHUIRUPDVDUHVXOWRIIXWXUHGLVUXSWLRQVWRWKHEDQNLQJV\VWHP RUHFRQRP\7KHXQFHUWDLQW\RIWKHVLWXDWLRQKDVWKHSRWHQWLDOWRKDYHDILQDQFLDOLPSDFWWR WKH&RPSDQ\WKDWFDQQRWEHUHDVRQDEO\HVWLPDWHGDWWKLVWLPH ### **127(±68%6(48(17(9(176** 7KH&RPSDQ\KDVSHUIRUPHGDQHYDOXDWLRQRIHYHQWVWKDWKDYHRFFXUUHGVXEVHTXHQWWR 'HFHPEHUDQGWKURXJK\$SULOWKHGDWHRIWKHILOLQJRIWKLVUHSRUW7KHUH KDYHEHHQQRPDWHULDOVXEVHTXHQWHYHQWVWKDWRFFXUUHGGXULQJVXFKSHULRGWKDWZRXOGUHTXLUH GLVFORVXUHLQWKLVUHSRUWRUZRXOGEHUHTXLUHGWREHUHFRJQL]HGLQWKHILQDQFLDOVWDWHPHQWVDV RI'HFHPEHU Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.