# INTERCOASTAL CAPITAL MARKETS, INC. X-17A-5 (2026-07-28) — Broker-dealer annual report - Company: INTERCOASTAL CAPITAL MARKETS, INC. - Form: X-17A-5 - Filed: 2026-07-28 - Period: 2026-05-31 - Accession: 0000011118-26-000001 - CIK: 11118 - File #: 8-09698 - Type: Broker-dealer - Material weakness: No - Auditor: ALPERIN NEBBIA & ASSOCIATES, CPA, PA - Auditor location: FAIRFIELD, NJ - Contact: JOHN ROGERS - Phone: 5619314650 - Email: jrogers@intercoastalcm.com - Website: intercoastalcm.com - Signed by: JOHN ROGERS (PRESIDENT) Original filing: https://www.sec.gov/Archives/edgar/data/11118/000001111826000001/icmi2026confidential2.pdf --- {0}------------------------------------------------ INTERCOASTAL CAPITAL MARKETS, INC. ------------------ FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION MAY 31, 2026 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ### ANNUAL REPORTS FORM X-17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | 8-09698 | | 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 | 06/01/25 | AND ENDING | 05/31/26 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|--------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Intercoastal Capital Markets, Inc. | | | | | 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.) | | | | | 200 E Palmetto Park Road, Suite 108 | | | | | | (No. and Street) | | | | Boca Raton | i | | 33432 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | John Rogers | 561-931-4650 | | jrogers@intercoastalcm.com | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Alperin Nebbia & Associates, CPA, PA | | | | | | (Name - if individual, state last, first, and middle name) | | | | 375 Passaic Avenue, Suite 200 Fairfield | | NJ | 07004 | | (Address) | (City) | (State) | (Zip Code) | | 02/24/2009 | | 3397 | | | (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 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION I, John Rogers swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Intercoastal Capital Markets, Inc. . as of 5/31 , 2 2026 , 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 as that of a customer. ZACHARY S. DRAGONETTE No. 02DR6408075 Signature: Notary Public, State of New York Qualified in Erie County My Commission Expires 8/3/20\_ZD Title: President #### 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. Notary Pyllic - (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. - O (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 capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, 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 240.17a-12, or 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 existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). O (z) Other: \_ \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e)(3), as applicable. {3}------------------------------------------------ ### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | 1 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------|------| | FINANCIAL STATEMENTS: | | | Statement of Financial Condition | 2 | | Statement of Operations | 3 | | Statement of Changes in
Equity
| 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6-11 | | SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS: | | | Schedule I - Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange
Act of 1934
| 3 | | Schedule II
Statement on Exemption from Computation for Reserve Requirements and
Information for Possession or Control Requirements under Rule 15c3-3 | 14 | | Report of Independent Registered Public Accounting Firm | 5 | | Exemption Report | .16 | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### Report of Independent Registered Public Accounting Firm To the Shareholder of Intercoastal Capital Markets, Inc. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Intercoastal Capital Markets, Inc. as of May 31, 2026, the related statements of operations, changes in stockholder s equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of Intercoastal Capital Markets, Inc. as of May 31, 2026, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Intercoastal Capital Markets, Inc. management. Our responsibility is to express an opinion on Intercoastal Capital Markets, Inc. financial statements 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 Intercoastal Capital Markets, Inc. 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 statements are 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 statements, 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. #### Supplemental Information The supplemental information, Schedule I-Computation of Net Capital Under Rule 15 c3-1 of the Securities and Exchange Act of 1934 and Schedule II- Statement on Exemption from Computation for Reserve Requirements and Information for Possession or Control Requirements under Rule 15c3-3 has been subjected to audit procedures performed in conjunction with the audit of Intercoastal Capital Markets, Inc. financial statements. The supplemental information is the responsibility of Intercoastal Capital Markets, Inc. management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I-Computation of Net Capital Under Rule 15 c3-1 of the Securities and Exchange Act of 1934 and Schedule II- Statement on Exemption from Computation for Reserve Requirements and Information for Possession or Control Requirements under Rule 15c3-3 is fairly stated, in all material respects, in relation to the financial statements as a whole. July 27, 2026 2024. Alperin, Nebbia & Associates, CPA, PA Fairfield, New Jersey {5}------------------------------------------------ #### INTERCOASTAL CAPITAL MARKETS, INC. ### ----------------- STATEMENT OF FINANCIAL CONDITION MAY 31, 2026 #### ASSETS | Cash and cash equivalents | \$
74,103 | |---------------------------------------------------------|------------------| | Securities owned, at fair value | 51,201,976 | | Due from clearing brokers, net | 140,829 | | Clearing broker deposits | 708,062 | | Prepaid expenses and other assets | 162,862 | | Fixed assets, net | 38,681 | | Right-of-use asset, net | 38,389 | | Total assets | \$
52,364,902 | | LIABILITIES AND
S EQUITY | | | Liabilities: | | | Due to clearing brokers, net | \$
37,086,256 | | Compensation payable | 620,347 | | Accounts payable and accrued expenses | 157,616 | | Accrued expenses
related party | 36,941 | | Securities sold not yet purchased, at fair value | 2,014,602 | | Lease obligation | 41,971 | | Total liabilities | 39,957,733 | | Commitments and Contingencies (Note 7) | | | | | | Common stock, \$1 par value, 500,000 shares authorized, | | | issued and outstanding | 500,000 | | Additional paid-in-capital | 3,801,063 | | Retained earnings | 8,106,106 | | Total | 12,407,169 | | | \$
52,364,902 | {6}------------------------------------------------ #### INTERCOASTAL CAPITAL MARKETS, INC. ### ----------------- STATEMENT OF OPERATIONS FOR THE YEAR ENDED MAY 31, 2026 | Principal transactions | \$
9,384,978 | |--------------------------|-----------------| | Interest and dividends | 2,123,895 | | Total revenues | 11,508,873 | | EXPENSES: | | | Commissions | 4,449,904 | | Interest | 1,853,893 | | Data and communications | 1,539,241 | | Salaries and benefits | 970,959 | | Clearance and execution | 463,314 | | Occupancy | 354,183 | | Travel and entertainment | 122,420 | | Professional fees | 114,637 | | Regulatory fees | 114,185 | | Taxes | 81,854 | | Depreciation | 48,012 | | Other operating expenses | 109,682 | | Total expenses | 10,222,284 | | | | | NET INCOME | \$
1,286,589 | {7}------------------------------------------------ # INTERCOASTAL CAPITAL MARKETS, INC. ----------------- STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MAY 31, 2026 | | Common
Stock
Shares | | Common
Stock | Additiona
Paid in
Capital | | Retained
Earnings | | Total
Stockholder's
Equity | |----------------------------|---------------------------|-------|-----------------|---------------------------------|-------|----------------------|---|----------------------------------| | Balance as of May 31, 2025 | 500,000 | ക | 500,000 | \$ 3,801,063 | ಳಿ | 8,774,917 | ಕ | 13,075,980 | | Net Income | | | 1 | | | 1,286,589 | | 1,286,589 | | Stockholder distributions | | | | | | (1,955,400) | | (1,955,400) | | Balance as of May 31, 2026 | 500,000 | સ્ત્ર | 500,000 | \$ 3,801,063 | લ્ત્વ | 8,106,106 | ಆ | 12,407,169 | {8}------------------------------------------------ ### STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MAY 31, 2026 ## CASH FLOWS FROM OPERATING ACTIVITIES: | Net Income | \$
1,286,589 | |------------------------------------------------------------------------------------------|-----------------| | Adjustments to reconcile net income to net cash | | | provided by operating activities: | | | Depreciation | 48,012 | | Non-cash lease expense | (9,494) | | Unrealized trading gain | 669 | | Changes in operating assets and liabilities: | | | Securities owned, at fair value | 18,439,974 | | Due from clearing brokers | (14,870) | | Prepaid expenses and other assets | 12,657 | | Clearing broker deposit | (250,883) | | Compensation payable | (99,540) | | Due to clearing brokers | (16,382,951) | | Accounts payable and accrued expenses | (3,294) | | Accrued expenses
related party | (6,994) | | Securities sold not yet purchased, at fair value | (1,059,971) | | Total adjustments | 673,315 | | Net cash provided by operating activities | 1,959,904 | | CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of furniture, equipment, and leasehold | | | improvements | (1,994) | | Net cash used in investing activities | (1,994) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | Stockholder distributions | (1,955,400) | | Net cash used in financing activities | (1,955,400) | | | | | | | | NET CHANGE IN CASH | 2,510 | | Cash and cash equivalents, beginning of year | 71,593 | | | | | Cash and cash equivalents, end of year | \$
74,103 | | Supplemental disclosure of cash flow information: | | | Income taxes paid | \$
71,394 | | | | {9}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 #### NOTE 1 DESCRIPTION OF ORGANIZATION 1960 under the name Bellamah, Neuhauser & Barrett, Inc. The Company is a broker-dealer, registered with the Financial Industry Regulatory corporate reorganization, and changed its name to Intercoastal Capital Markets, Inc. The Company is wholly owned by Trifecta Holdings, LLC trading of fixed income securities including but not limited to securitized products, certificates of deposits and municipal securities. All securities transactions are cleared through non-affiliated clearing firms on a fully disclosed basis. #### NOTE 2 BASIS OF ACCOUNTING AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of Accounting The accompanying financial statements have been prepared pursuant to Rule 17a-5 of the Securities and Exchange Commission Act of 1934. The classification and reporting of items appearing on the financial statements are consistent with that rule. #### Use of Estimates The preparation of financial statements in conformity with general accepted accounting principles requires management to make estimates and assumptions. This will affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. The most significant estimates in the accompanying financial statements are the valuation of the rights of use asset and corresponding lease liability, collectability of receivables and estimated life of fixed assets. #### Cash and Cash Equivalents The Company considers all amounts on deposit that are subject to withdrawal on demand as cash or cash equivalents. As of May 31, 2026, all cash was on deposit in banks. Periodically, the amount on deposit exceeds the FDIC insurance limits. #### Revenues The Company is engaged in the proprietary trading of fixed income securities including but not limited to securitized products, certificates of deposits and municipal securities through securities clearing firms. Proprietary securities transactions are recorded on the trade date as if they had settled on that date. In certain instances, revenue is recorded on a settlement date basis, and the trade versus settlement date difference is evaluated for materiality to determine if an adjusting entry is required. The Company does not render investment advice, nor does it hold itself out as a broker-dealer to the public through advertising or otherwise. The Company has a minimal amount of retail customers and does not hold the securities of others or extend or arrange for the extension of credit in connection with the sale of securities. #### Interest and Dividends Interest revenue on fixed income securities owned and securities sold not yet purchased, including amortization of premiums and accretion of discounts, is recognized as earned or due. Dividend revenue is recognized as earned. #### Due to/from Clearing Brokers Amounts due from clearing brokers represent monthly commissions, clearing fees, and accrued interest which is paid to the Company on a monthly basis. Amounts due to clearing brokers represent credit extended by the clearing brokers net of cash held at the clearing brokers inclusive of required deposits and maintenance balances. The credit extended is collateralized by securities positions held by the Company. {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 #### Fixed Assets Fixed assets are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 5 to 7 years. #### Income Taxes income taxes but rather, items of income, loss, deduction and credit pass through to stockholders in determining their individual income tax liability. For certain status and therefore may generate state level tax liabilities. Due to immateriality, the Company has not calculated a deferred tax asset or liability. In the unlikely event an uncertain tax position existed in which the Company could incur corporate income taxes, management would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by a taxing authority. Reserves for uncertain tax positions would then be recorded if management determined it is probable either a position would not be sustained upon examination or if a payment would have to be made to a taxing authority and the amount was reasonably estimable. As of May 31, 2026, the Company does not believe it has any uncertain tax positions which would result in the Company having a liability to a taxing authority. As of May 31, 2026, the tax years since 2023 remain open for audit. #### Defined Contribution Plan The Company provides a contributory 401K plan for its employees. For the fiscal year ended May 31, 2026, payroll and then 1.5% for the balance of the payroll. The Company contributed approximately \$92,000 to the plan for the year ended May 31, 2026. #### Leases ASC 842 Leases requires the recording of a right-of-use asset and related lease liability on the statement of financial condition. Such amounts are based on the net present value of future lease obligations, using an incremental borrowing The Company has elected to not recognize ROU assets and lease liabilities for short-term leases that have a term of 12 months or less. #### Credit Losses ASU No. 2016 res cleared through clearing organizations and settled daily between the clearing organizations and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed to the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. As such, the Company has determined that there is no material impact on the #### Segment Reporting segment as defined by Accounting Standards Codification 280, as it conducts its business activities and reports financial results using information of the Company as a whole. The President of the Company serves as Chief Operating Decision Maker, which makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents its financial results. The significant income and expenses of the segment are reported in the accompanying statement of operations. {11}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 #### NOTE 3 NET CAPITAL REQUIREMENT The Company, as a registered broker-dealer and as a member of FINRA, must comply with the Net Capital Rule of the Securities and Exchange Commission. The Company has a net capital requirement which is calculated as the greater of \$100,000 or 6 2/3% aggregate indebtedness. The Company had net capital as computed under Rule 15c3-1 of \$8,090,822, which is \$7,990,822 above the \$100,000 net capital amount required to be maintained at May 31, 2026 computed in accordance with Rule 15c3-1 was 0.10 to 1. #### NOTE 4 FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures the financial assets in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. These levels are: - Level 1 Valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset ily available pricing sources for market transactions involving identical assets, liabilities or funds. - Level 2 Valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and mortgage-backed securities. Valuations are usually obtained from third party pricing services for identical or comparable assets or liabilities. - Level 3 Valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The availability of observable inputs can vary from instrument to instrument and in certain cases, the inputs level within the fair value hierarchy is based on the lowest level of input that is significant to their value measurement of an instrument requires judgment and consideration of factors specific to the instrument. The following table shows the Company's financial instruments adjusted cost, gross unrealized gains (loss) and fair value by significant investment category as of May 31, 2026: | | Adjusted
Costs | Unrealized Gains
(Losses) | Fair Value
Level 2 | |------------------------------------|-------------------|------------------------------|-----------------------| | Securities Owned | | | | | Government Agency Bonds | \$
14,941,896 | \$
(2,264,663) | \$
12,677,233 | | Municipal Bonds | 27,754,630 | 168,495 | 27,923,125 | | Certificates of Deposit | 4,567,906 | (17,303) | 4,550,603 | | Corporate Bonds | 3,832,429 | (26,803) | 3,805,626 | | Private Label Asset-Backed Bonds | 2,198,618 | 46,771 | 2,245,389 | | Totals | \$
53,295,479 | \$
(2,093,503) | \$
51,201,976 | | Securities Sold, Not Yet Purchased | | | | | U.S. Treasury Bonds | \$
2,007,755 | \$
(6,847) | \$
2,014,602 | {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 #### NOTE 5 FIXED ASSETS Fixed assets consist of computer equipment. furniture and fixtures and leasehold improvements with the following balances at May 31, 2026: | Computer equipment | \$
30,643 | | |-------------------------------------------------|--------------|--| | Furniture and fixtures | 134,942 | | | Leasehold improvements | 326,163 | | | Total Costs | 491,748 | | | Less: Accumulated depreciation and amortization | (453,067) | | | Fixed assets, net | \$
38,681 | | Depreciation expense for the year ended May 31, 2026 was \$48,012. #### NOTE 6 DUE FROM, TO CLEARING BROKERS, NET Amounts due to clearing brokers, net as of May 31, 2026 consist of the following: | Payable to clearing brokers | \$
45,886,685 | |-------------------------------------------------|------------------| | Less: collateral for securities borrowed/loaned | (8,800,429) | | Due to clearing brokers, net | \$
37,086,256 | The interest rate computation and approximate rates charged are as follows: - StoneX Financial, Inc. Cost of funds + 75 Basis Points - Hilltop Securities Federal Funds + 150 Basis Points - Mirae Asset Securities Overnight Bank Funding Rate + 140 Basis Points Amounts due from clearing brokers, net as of May 31, 2026 consist of the following: | Receivable from clearing brokers | \$
210,610 | |-----------------------------------|---------------| | Less: Accrued interest receivable | (69,781) | | Due from clearing brokers, net | \$
140,829 | #### NOTE 7 COMMITMENTS AND CONTINGENCIES #### Clearing Agreements The Company maintains a Fully Disclosed Clearing Agreement with StoneX Financial, Inc. The agreement was signed in November 2016 and renews on a yearly basis at the same terms. The Company maintains a Fully Disclosed Clearing Agreement with Hilltop Securities, Inc. The agreement was signed in October 2018 and renews on a yearly basis at the same terms. The Company maintains a Fully Disclosed Clearing Agreement with Mirae Asset Securities (USA), Inc. The agreement was signed in October 2019 and renews on a yearly basis at the same terms. #### Office Lease Obligations The Company has five lease commitments for its offices in Boca Raton Florida, Orlando Florida, Boonton New Jersey, Buffalo New York, and Charlotte North Carolina. Rent expense for all office leases discussed below, including Common Overhead Maintenance (CAM) and other miscellaneous charges under all leases, for the year ended May 31, 2026, totaled \$340,826. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 #### Short Term Leases In January 2018, the Company entered into a lease in Buffalo, New York for an executive suite with a fixed monthly rent of \$700. The lease also includes furnishings, telephone, telephone lines, and internet access. There was an installation, administration and set-up fee. A parking space is also included in the rent. This lease term is one year, commencing February 1, 2018, and has been renewed for consecutive one-year terms. The current term expires January 31, 2027 at a rate of \$1,025 per month. A security deposit of \$700 was required. Future minimum lease payments for fiscal year 2027 are \$8,200. rent beginning in June 2025 of \$10,000. The current lease term ends May 31, 2027. The future minimum In October 2022, the Company extended their annual lease in Charlotte, North Carolina for a fully furnished, staffed and equipped executive suite with a current fixed monthly rent of \$1,238 and a security deposit of \$1,838. The current term expires January 31, 2027. Future minimum lease payments for fiscal year 2026 are \$9,904. In May 2025, the Company entered into a lease in Boonton, New Jersey for office space with a fixed monthly lease payments for fiscal year 2027 are \$60,000. In March 2024, the Company entered into a membership agreement for office space in Orlando, Florida. Termination is subject to the terms of the membership agreement. The Company paid a deposit of \$950. The monthly fee is \$950 and is included in occupancy on the statement of operations. #### Long Term Lease Right of Use Asset and Lease Obligation On October 15, 2019, the Company entered into a seven-year lease with a related party affiliate for a Boca Raton, Florida office space of approximately 4,324 square feet. A \$13,210 deposit was paid at that time. The agreed upon monthly rent for the first year was \$9,008 and a CAM fee of \$4,201 with a 3% annual increase in the base rent each year. Utilities and common area maintenance (CAM) services, as calculated by the expedients , which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 months or less. At lease inception, the Company recorded right-of-use assets and lease liabilities of \$550,834. The significant assumption used to determine the present value of the lease liability was a discount rate of Right-of- | | May 31, 2026 | |-----------------------------------------|---------------| | Operating office lease | \$
550,834 | | Less: accumulated amortization | (512,445) | | Balance of ROU asset as of May 31, 2026 | \$
38,389 | Operating lease liability related to the ROU asset is summarized below: | | May 31, 2026 | |-----------------------------------------------|---------------| | Operating office lease | \$
550,834 | | Less: accumulated reduction | (508,863) | | Balance of lease liability as of May 31, 2026 | \$
41,971 | {14}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS YEAR ENDED MAY 31, 2026 Future minimum lease payments under the non-cancelable long-term operating lease as of May 31 are as follows: | Year ended May 31, 2027 | \$
43,026 | | |------------------------------------|--------------|--| | | 43,026 | | | Less: Imputed interest | (1,055) | | | Present value of lease liabilities | \$
41,971 | | #### Legal Matters During the normal course of operations, the Company, from time to time, may be involved in lawsuits, arbitrations, claims, and other legal or regulatory proceedings. financial position, results of operations, or cash flows. #### NOTE 8 RELATED PARTY TRANSACTIONS Distributions paid to the Parent during the fiscal year ended May 31, 2026, were \$1,955,400. The Company leases office space in Boca Raton, Florida from a related party (see Note 7). As of May 31, 2026, the Company owes the related party \$36,941 for outstanding rent due, which is reflected in accrued expenses related party on the statement of financial condition. #### NOTE 9 CONCENTRATION OF CREDIT RISK The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. The Company's marketable securities are held in accounts at three clearing brokerage firms. Each brokerage firm account is covered for only custody protection by SIPC for up to \$500,000 per clearing firm. At May 31, 2026, cash in banks did not exceed the federally insured limits. At May 31, 2026, the due from clearing brokers balance consists of receivables from 3 clearing firms, none of which exceeds \$500,000. #### NOTE 10 SUBSEQUENT EVENTS Subsequent to year-end, in June 2026, following the departure of its sole certificate of deposit trader, the Company ceased proprietary trading in certificates of deposit. Revenue from such trading represented ue for the year ended May 31, 2026. The Company is unable to reasonably estimate the effect of this change on future results of operations because certain fixed and shared overhead expenses cannot be specifically attributed to these operations and may continue to be incurred. The Company has evaluated all other subsequent events through July 27, 2026, the date these financial statements were issued and determined that no additional events require recognition or disclosure in the financial statements. {15}------------------------------------------------ #### SUPPLEMENTAL INFORMATION {16}------------------------------------------------ | Net capital: | | |----------------------------------------------------|-----------------| | Total stockholder's equity | ಕ
12,407,169 | | Non-allowable assets: | | | | | | Furnishings & equipment | 38,681 | | Prepaid Expenses & Other | 170,925 | | Total non-allowable assets | 209,606 | | | 12,197,563 | | Exempted Securities | 2,646,269 | | Debt Securities | 1,430,689 | | Undue Concentration | 29,783 | | Haircuts on securities | 4,106,741 | | Net Capital | ക
8,090,822 | | Minimum net capital required - 6 2/3% of aggregate | | | indebtedness or \$100,000 whichever is greater | 100,000 | | Excess Net Capital | ക
7,990,822 | | Aggregate indebtedness | ಕ್ಕಾ
818,487 | | Ratio of aggregate indebtedness to net capital | 10.12% | corresponding unaudited Form X-17 A-5, Part IIA filing submitted on June 23, 2026. {17}------------------------------------------------ ### Schedule II INTERCOASTAL CAPITAL MARKETS, INC. ----------------- #### Statement on Exemption from Computation for Reserve Requirements and Information for Possession or Control Requirements under Rule 15c3-3 AS OF MAY 31, 2026 In accordance with the exemptive provisions of SEC Rule 15c3-3, specifically exemption (k)(2)(ii), the Company is exempt from the computation of a reserve requirement and the information relating to the possession or control requirements. The Company is also relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R § 240.17a-5 due to its activities related to proprietary trading. {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) #### Report of Independent Registered Public Accounting Firm To the Shareholder of Intercoastal Capital Markets, Inc. Intercoastal Capital Markets, Inc. identified the following provision of 17 C.F.R §15c3-3(k) under which Intercoastal Capital Markets, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3(k):(2)(ii) and Intercoastal Capital Markets, Inc. stated that Intercoastal Capital Markets, Inc. met the identified exemption provision throughout the most recent fiscal year without exception. Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to (1) proprietary trading, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year ended May 31, 2026 without exception. Intercoastal Capital Markets, Inc. provision and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Intercoastal Capital Markets, Inc. compliance with the exemption provision. A review is substantially less in scope than an examination, the opinion. Based on our revi referred to above for them to be fairly stated, in all material respects, based on the provision set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions. Alperin, Nebbia & Associates, CPA, PA Fairfield, New Jersey July 27, 2026 {19}------------------------------------------------ #### Exemption Report - Intercoastal Capital Markets, Inc. Intercoastal Capital Markets, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company claimed an exemption under paragraph (k) (2) (ii) of 17 C.F.R. § 240. 15c3-3, and (2) The Company met the identified exemption provision in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year from June 1, 2025 through May 31, 2026 without exception. (3) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to (1) proprietary trading, and the Company (1) did not directly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year ended May 31, 2026 without exception. Intercoastal Capital Markets, Inc. | John Rogers
swear (or affirm) that, to my best knowledge and belief, this Exemption Report is | | |--------------------------------------------------------------------------------------------------|--| | true and corpe t. | | | | | | By: | | | | | | President
Title: | | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.