Note 17. Net Capital Requirements

KBD LLC and KFD LLC are subject to the Securities and Exchange Commission Uniform Net Capital Rule (“SEC Rule 15c3-1”), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2025, KBD LLC and KFD LLC had net capital of $107 and $1,546 respectively, which was $102 and $1,521 respectively, in excess of its required net capital of $5 and $25, respectively. KBD LLC’s and KFD LLC’s net capital ratio were 0.977 and 0.013 to 1, respectively. As of December 31, 2024, KBD LLC and KFD LLC had net capital of $40 and $1,435 respectively, which was $35 and $1,410 respectively, in excess of its required net capital of $5 and $25, respectively. KBD LLC’s and KFD LLC’s net capital ratio were 1.790 and 0.025 to 1, respectively.