# WELLS FARGO PRIME SERVICES, LLC X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: WELLS FARGO PRIME SERVICES, LLC - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0001304706-26-000002 - CIK: 1304706 - File #: 8-66677 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG, LLP - Auditor location: New York, NY - Contact: Damian George - Phone: 516-662-4287 - Email: timothy.m.connor@welfsfargo.com - Website: welfsfargo.com - Signed by: Timothy Connor (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1304706/000130470626000002/wfpssfc.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # **WELLS FARGO PRIME SERVICES, LLC** (An Indirect Wholly-Owned Subsidiary of Wells Fargo & Company) Statement of Financial Condition December 31, 2025 (With Report of Independent Registered Public Accounting Firm Thereon) {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > ANNUAL REPORTS FORM X-17A-5 | 0MB Number: 3235-0123 | | |--------------------------|--| | Expires: Nov. 30, 2026 | | | Estimated average burden | | | hours per response: 12 | | SEC ALE NUMBER # PART Ill FAONGPAGE 8-66677 Information Required Pursuant to Rules 17a-s, 17a-U, and 18a-7 under the Sewrities Exchange Act of 1934 FlLING FOR THE PERIOD BEGINNING Q 1 /Q1 /25 MM/0D/YY AND ENDING 12/31 /25 MM/DD/YY **A. REGISTRANT IDENTIRCATION** NAME oF FIRM: Wells Fargo Prime Services, LLC TYPE OF REGISTRANT (check all applicable boxes}: 0 Broker-dealer □ Security-based swap dealer D Major security-based swap participant D Check here if responderit is also an OTC derivatives dealer ADDRESS OF PRINOP AL PIACE OF BUSINESS: (Do not use **a P** .0. box no.) 45 Fremont Street {No. and Street) San Francisco CA 94105 (Oty) (State} (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Timothy Connor 215-764-7949 timothy.m.connor@welfsfargo.com (Name) {Area (()de-Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing"' KPMG, LLP | | {Name - if ind"rvidual, state last, first, and middle name) | | | |---------------------------------------------------|-------------------------------------------------------------|---------|--------------------------------------------| | 2 Manhattan West, 375 Ninth Ave | New York | NY | 10001 | | (Address) | (City) | (State) | (Zip Code} | | 10/20/2003 | | 185 | | | {Date of Relristration with PCAOB)ftf applicable) | | | (PCAOB Registration Number. if aoo!icablel | | | FOR OFAOAL USE ONLY | | | | | | | | + Oaims for exemption from.the requirement that the annual reports **be covered** by the reports of an.independent public accountant must be supported by a statement.of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if appticable. **Persons who are to respond to the collection gf information contained** In **this form are not required to respond unless the form** dlsplays a currently vabd 0MB eontrol number. {2}------------------------------------------------ #### OATH **OR AFFIRMATION** | I, Timothy Connor | swear (or affirm} that2 to the best of my knowledge and bertef, the | |---------------------------------------------------------------------------|-----------------------------------------------------------------------------------| | financial report pertaining to the firm of Wells Fargo Prime Services LLC | as of | | 2~
December 31 | 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 asthatofa customer. Chief Financial Officer #### This film~• **contains (check** all **applicable boxes):** - ~ (a) Statement of financial condition. - ii (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (Joss) or, if there is other comprehensive income in the **period(s)** presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S..X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f} Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D {h) Computation of net capital under17 CFR240.15c:3-1 or 17 CFR 240.18a-1, as applicable. - D {i) Computation oftmgible net worth under 17 CFR 240-18a-2. - 0 0) Computation for determination of customer reserve.requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (le) Computation for determination of security-based swap.reserve requirements pursuant to ExhibitB to 17 CFR 240;15c3-3 or Exhibit A to 17 CFR 240.183-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - D (m) Information relatingto possession or control requirements for customers under 17 CFR 240.15c3-3. - 0 (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. - 0 (o) Reconciliations, induding appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.lSc:3-1, 17 CFR 240.18a-1, or 17 CFR 240.183-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material.differences exist. - D (p} Summary of financial data for subsicfiaries not consolidated in the statement of financial condition. - ii (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.183-7, as applicable. - D (r) Compliance report in acrordance 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 240.18a-7, as applicable. - ii (t) Independent publk accountant's report based on an examination ofthestatementoffinancial condition. - D (u) Independent public accountant's report based on 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-S or 17 CFR 240.18a-7, as appfic:able. - 0 {w) Independent public .iccountant's report based on a review of the exemption report under 17 CFR 240.17:a-5 or 17 CFR 240.18a-7, as applicable. - D (x) supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D {y) Report describing any material inadeql.lacies found to exist or found to have existed since the date of the previous **audit,** or a statement that no material inadequacies exist, under 17CFR240.17a-12{k). D (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*~o request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e){3} or 17 CFR240.18a-7{d}{2), as applicable. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) KPMG LLP Suite 1000 620 S. Tryon Street Charlotte, North Carolina 28202-1842 #### **Report of Independent Registered Public Accounting Firm** To the Member and the Board of Managers Wells Fargo Prime Services, LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Wells Fargo Prime Services, LLC (the Company) as of December 31, 2025, and the related notes (collectively, 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, 2025, in conformity with U.S. generally accepted accounting principles. #### Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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 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. We have served as the Company's auditor since 2012. Charlotte, North Carolina February 27, 2026 {4}------------------------------------------------ #### **WELLS FARGO PRIME SERVICES, LLC** ## (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Statement of Financial Condition December 31, 2025 | Assets | | |----------------------------------------------------------|--------------------------------| | Cash and cash equivalents | \$
62,653,979 | | Securities bmrnwed | 4,348,879 | | Deposit with cleating broker | 1,000,000 | | Accounts receivable | 190,400 | | Due from affiliates | 38,864 | | Prepaid expenses and other assets | 95,137 | | Total assets | \$
68,327,259
========== | | Liabilities and Member's Equity | | | Secmities loaned | \$
4,348,879 | | Accounts payable, accrned expenses and other liabilities | 21,285 | | Due to affiliates | 71,336 | | Total liabilities | 4,441,500 | | Member's equity | 63,885,759 | | Total liabilities and member's equity | \$
68,327,259
========== | The accompanying notes are an integral pa1t of this Statement of Financial Condition {5}------------------------------------------------ ## **(1) Organization and Basis of Presentation** Wells Fargo Prime Se1vices, LLC (the Company) is organized as a Limited Liability Company. The Company is a wholly-owned subsidia1y ofEveren Capital Corporation (Everen), which is a wholly owned subsidia1y of WFC Holdings, LLC (WFCH), which is a wholly owned subsidia1y of Wells Fargo & Company (WFC). WFC is registered with the Federal Rese1ve Board as a financial holding company in accordance with the Gramm Leach Bliley Act of 1999 (GLBA). The Company is registered with the Secmities and Exchange Cotrunission (SEC) and as a fully disclosed secmities broker-dealer and is a member of the Financial Industiy Regulat01y Authority, Inc. (FINRA). The Company is subject to various governmental rnles and regulations, including the Net Capital Rule set fo1th in SEC Rule l 5c3-1 of the Securities Exchange Act of 1934. The Company has been approved by FINRA to act as a broker or dealer in secmities to execute ti·ansactions in corporate equity secmities on listed and over-the-counter markets, government and corporate debt secmities, options on secmities, private placements of secmities, and rebate a p01tion of commissions to customers and/or their creditors. The Company has also been approved by FINRA to off er sho1t ananging se1v ices to clients. The Company does not ti·ade for its own account. The Company provides secmities and derivatives trading and other brokerage fmn se1vices to hedge funds, corporations, and institutional investors. Goldman Sachs and Co. LLC (GS&Co. or the Clearing Broker) provides custody and cleating se1vices to the Company on a fully-disclosed basis. In 2024, the Company continued moving client assets off the GS&Co. platfonn and as of December 31 , 2025, a significant p01tion of client assets have been transfe1Ted off the platfmm. When the remaining clients have been fully ti·ansfe1Ted, the clearing a1Tangement will be te1minated and the Company's clearing deposit will be retmned. The chief operating decision maker (CODM) of the Company is the chief executive officer (CEO). The CODM uses net income to monitor actual results versus p1ior pe1iods and planned amounts to assess perfo1mance and decide how to allocate resources and invest profits. Additionally, the CODM uses excess net capital (see Note 6), which is not a measure of profit or loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations constitute a single operating segment and therefore, a single repo1table segment, because the CODM manages the business activities using info1mation of the Company as a whole. The measure of segment assets is total assets as repmted on the Company's Statement of Financial Condition. The Company derives revenue primarily in the United States. # **(2) Summary of Significant Accounting Policies** # *(a) Basis of Presentation* The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of Ame1ica (US GAAP), the most significant of which are summarized below. {6}------------------------------------------------ ## *(b) Accounting Standards Adopted During Current Year* In 2025, the Company adopted FASB ASU 2023-09 *Improvements to Income Tax Disclosures,* which requires all public entitles, including those entities disregarded for federal taxes, to disclose the net difference between the tax bases and the repmted amounts of the entity's assets and liabilities per ASC 740-10-50-16. # *(c) Use of Estimates* The preparation of these financial statements requires management to make estimates and assumptions that affect the amounts and disclosures repo1ted in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as additional infonnation becomes available or previously existing circumstances are modified. Actual results could differ from these estimates. ## *(d) Cash and Cash Equivalents* The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents, including ce1tain money market investments. ## *(e) Securities Lending Activity* The Company engages in secmities financing transactions as pait of its shmt airnnging business. In these transactions, the Company acts as a lending and bmrnwing p1incipal providing airnnged securities loans to p1ime brokerage clients of Wells Fai·go Securities, LLC (WFS), its affiliated cleai·ing broker-dealer. All collateral posted by or on behalf of p1ime brokerage clients is delivered to and held by WFS. WFS perfmms all collateral management, mai·gining, and custody functions. Because collateral is maintained and controlled by WFS and the Company has no custodial responsibilities, the Company's credit exposure ai·ising from these lending and bonowing activities is not significant and the allowance for credit losses is immate1ial. #### *(f) Deposit with Clearing Broker* Pursuant to the clea1ing agreement with GS&Co., the Company maintains a deposit of \$1,000,000 that is invested in a money market fund with GS&Co., until such time that all clea1ing and custodial services cease and the cleai·ing agreement is te1minated. #### *(g) Transactions with Affiliates* The Company is charged under an expense shai·ing agreement by ce1tain affiliated ent1t1es, which represent reimbursements for certain direct and indirect overhead costs incmrnd by those affiliated entities on behalf of or for the benefit of the Company. The transactions with affiliates described above and in Note 7, and the effect thereof on the accompanying financial statements, may not necessarily be indicative of the effect that might have {7}------------------------------------------------ ## **WELLS FARGO PRIME SERVICES, LLC** (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year ended December 31, 2025 resulted from dealing with non-affiliated patties. Additionally, the Company provides rurnnged securities loans to prime brokerage clients ofWFS, as disclosed in Note 2 (e) Secmities Lending Activity. #### *(h) Federal and State Income Taxes* The Company is a single member limited liability company and is treated as a disregarded entity pmsuant to Treasmy Regulation Section 301.7701-3 for federal income tax purposes. Generally, disregru·ded entities are not subject to entity-level federal or state income taxation and, as such, the Company does not provide for income taxes under F ASB ASC 740, Income Taxes. The Company's taxable income is reported in the tax retmn of Everen. There are no tax sharing agreements between the Company and Everen. Although the Company is a disregarded entity for federal income tax purposes and does not record income taxes under ASC 740, in accordance with ASC 740-10-50-16, management has evaluated the net difference between the tax bases and the rep01ted amounts of the Company's assets and liabilities. The difference as of December 31, 2025 was \$2,129,228. Ce1tain states and foreign jurisdictions may subject the Company to entity-level taxation as a single member limited liability company; however, there is not a material provision for state and foreign income taxes for year ended December 31, 2025. The Company files tax returns in vruious states and local jmisdictions and is subject to income tax examinations by those tax authorities for yeru·s 2017 and fo1wru·d. Due to the Company's status as a disregru·ded entity for income tax purposes, the related balance sheet accounts including income tax receivable/payable and defened tax assets and liabilities are immaterial to the financial statements. Based upon its evaluation, the Company has concluded that there are no significant unce1tain income tax positions relevant to the jmisdictions where it is required to file income tax returns requiling recognition in the financial statements. Management monitors proposed and issued tax laws, regulations and cases to detennine the potential impact to unce1tain income tax positions. The Company recognizes accrued interest and penalties, as approp1iate, related to unrecognized income tax benefits in income tax expense. The Company did not recognize any interest or penalties in the year ended December 31, 2025. At December 31 , 2025, management had not identified any potential subsequent events that would have a material impact on unrecognized income tax benefits within the next twelve months. #### **(3) Financial Instruments, Off-Balance Sheet Arrangements and Credit Risk** #### *(a) Financial Instruments and Off-Balance Sheet Arrangements* The Company does not trade securities for its own account and has not entered into any transactions on its own behalf involving financial instruments, such as financial futures, fo1wru·d contracts, options, swaps or derivatives that would expose the Company to significant off-balance sheet 1isk. The Company was not a pa1ty to any off-balance sheet anangements dming 2025. The Company does not have any interests or involvement in special purpose entities or stmctm·ed finance entities. {8}------------------------------------------------ ## *(b) Credit Risk* The Company maintains its cash in bank deposit accounts which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts, and it believes it is not exposed to significant credit risk on these cash accounts. Cash held at the Clearing Broker is insured by the Securities Investor Protection Corporation (SIPC) and by supplemental insurance provided by the Clearing Broker. Such insurance protects the Company against loss due to a failure of the Cleaiing Broker. Management does not believe the Company is exposed to undue 1isk of loss thereon. The Company functions as an introducing broker that executes customer orders. The orders are then settled by the Clea1ing Broker that maintains custody of customers' secmities and provides financing to customers. Through indemnification provisions in agreements with the Clea1ing Broker, customer activities may expose the Company to off-balance sheet credit 1isk. Financial instmments may have to be purchased or sold at prevailing mai·ket p1ices in the event a customer fails to settle a trade on its original te1ms or in the event cash and securities in customer margin accounts ai·e not sufficient to fully cover customer obligations. The Company seeks to control the risks associated with customer activities through customer screening and selection procedures, as well as through requirements on customers to maintain margin collateral in compliance with applicable regulations and cleai·ing organization policies. The Company is also exposed to credit risk as it relates to the collection of receivables from third pa1ties. #### ( **4) Securities Borrnwed and Securities Loaned** Securities bonowing and lending agreements represent collateralized financing transactions and are generally documented under industly standard agreements that allow the prompt close-out of all ti·ansactions (including the liquidation of securities held) and the offsetting of obligations to return cash or securities by the non-defaulting pa1ty, following a payment or other default by the other paity under the relevant master agreement. All secmities bmrnwing and lending transactions involve equity secmi ties that are generally exchange n-aded and ai·e overnight in tenor. The securities bonowing and lending agreements are recorded at the amount of cash advanced or received. With respect to secmities loaned, the ti·ansactions are collateralized by cash in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of securities bo1rnwed and secmities loaned on a daily basis and obtains or posts additional collateral in order to maintain conti·actual margin protection. All collateral associated with the Company's secmities financing activities is delivered to and held byWFS. Interest income is earned on cash collateral posted in securities bon owing ti·ansactions, and interest expense is incmred on cash collateral received in securities lending ti·ansactions. These interest amounts are determined based on contractual rates and ai·e accmed daily and settled periodically. For the year ended December 31, 2025, interest income and interest expense related to securities lending and bmrnwing transactions were offset, reflecting the Company's shmt airnnging stmcture as described in Note 2 (e). {9}------------------------------------------------ ## **WELLS FARGO PRIME SERVICES, LLC** ## (An Indirnct Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year ended December 31, 2025 The following table presents the gross and net securities bonowing and lending agreements and the related offsetting amounts: | Assets: | | |-------------------------------------------------------------------|------------------------------| | Securities borrowings agreements | | | Gross amounts recognized | \$
4,348,879 | | Gross amounts offset in Statement of Financial Condition (1) | | | Net amounts in Statement of Financial Condition | 4,348,879 | | Collateral not recognized in Statement of Financial Condition (2) | (4,238,510) | | Net Amount (3) | \$
110,369
=========== | | Liabilities: | | | Securities lending agreements | | | Gross amounts recognized | \$
4,348,879 | | Gross amounts offset in Statement of Financial Condition (1) | | | Net amounts in the Statement of Financial Condition | 4,348,879 | | Collateral not recognized in Statement of Financial Condition (4) | (4,238,510) | | Net Amount (3) | \$
110,369 | | | =========== | (1) Represents recognized amount of agreements with counterparties subject to enforceable MSLAs that have been offset in the Statement of Financial Condition. (2) Represents the fair value of collateral held by WFS under enforceable MSLAs, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. (3) Represents the amount of our exposure that is not collateralized and/or is not subject to an enforceable MSLA. (4) Represents the fair value of collateral we have pledged at WFS, related to enforceable MSLAs, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. #### **(5) Indemnification** The Company entered into contracts with the Cleai·ing Broker that contain a variety of indemnifications for which the maximum exposure is unknown but for which management expects the risk of loss, if any, to be remote. The Company has no cunent claims or losses pursuant to such contracts. #### **(6) Net Capital Requirements and Exemptions fl-om SEC Rule 15c3-3** The Company is a broker-dealer subject to SEC Rule 15c3-1 of the SEC, which specifies uniform minimum net capital requirements, as defined, for their registrants. As of December 31, 2025, the Company had regulatory net capital, as defined, of \$62,335,468 which exceeded the amount required by \$62,085,468. The Company was exempt from SEC Rule 15c3-3 throughout the year ended December 31, 2025 under SEC Rule 15c3-3(k)(2)(ii) as all customer transactions are cleared through the Clearing Broker on a fully disclosed basis and all customer funds and securities are promptly transmitted to the Clearing Broker; and {10}------------------------------------------------ based on Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company's other business activities are limited to a sh01t :manged financing business, and the Company (i) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (ii) did not carry accounts of or for customers; and (iii) did not cany P AB accounts ( as defined in 17 C.F.R. § 240.15c3-3). Under these exemptions, the Company is not subject to the reserve requirements and possession or control provisions of SEC Rule 15c3-3. # **(7) Related Pa1·ty Transactions** Tue following items present the Company's significant transactions with affiliates as of and for the year ended December 31, 2025: ## *(a) Services transacted with Affiliates of the Company* Tue Company is charged under expense shaiing agreements management fees or expense allocations by various affiliate service providers, which represent reimbursements for direct costs and general overhead costs incurred by the affiliate for support services to business lines of the Company. Services under these anangements includes infonnation technology systems, credit risk, support and development, operations support, product support and general and administrative support services. Tue Company has no employees, however, a portion of Wells Fargo Secmities, LLC's (WFS) executive overhead related to the prime business is allocated to the Company as a result of this arrangement. Allocation methodologies are customized by the type of product line being supported. Allocated costs for the year ended December 31, 2025 ai·e as follows: | Risk management | \$
2,505 | |---------------------------------------------|---------------| | Executive overhead allocation -
WFS | 211,206 | | Information technology | 2,622 | | Other management fee and corporate overhead | 28,791 | | Total | \$
245,124 | Tue amount due from affiliated entities is the unsettled amount as a result of expense sharing agreements, which is \$38,864 as of December 31, 2025. It represents the amount funded by the Company in excess of the costs paid on behalf of the Company. As of December 31, 2025, amounts owed to affiliates ai·e reported in Due to affiliates (\$71,336) and in Accounts payable, accmed expenses and other liabilities (\$21,284). These balances primarily include interest payable and accmed expenses with WFS. {11}------------------------------------------------ #### **(8) Commitments and Contingencies** The Company could be named as a defendant in various legal actions arising from its nmmal business activities, and any such proceedings could expose the Company to potential financial loss. In the event this were to occur, the Company would establish accrnals for legal actions when potential losses associated with any such actions became probable and the costs can be reasonably estimated. For such accmals, the Company would record the amount it considers to be the best estimate within a range of potential losses that are both probable and estimable; however, if the Company cannot dete1mine a best estimate, then it would record the low end of the range of those potential losses. The actual costs of resolving legal actions may be substantially higher or lower than the amounts accrned for those actions. As of December 31, 2025, the Company has not been named as a defendant in any legal actions. #### **(9) Subsequent events** The Company has evaluated the effects of subsequent events that have occurred subsequent to period end December 31, 2025, and through Febrna1y 27, 2026, which is the date we issued the financial statements. Dming this pe1iod, there have been no mate1ial subsequent events that would require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.