# SMITH, BROWN & GROOVER, INC. X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: SMITH, BROWN & GROOVER, INC. - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0000014632-26-000005 - CIK: 14632 - File #: 8-13079 - Type: Broker-dealer - Material weakness: No - Auditor: RDG Partners, PLLC - Auditor location: Rochester, NY - Contact: Holli C. Edwards - Phone: 478-474-7004 - Email: holli@sbgwealth.com - Website: sbgwealth.com - Signed by: Thomas D. Gaither, Jr. (President) Original filing: https://www.sec.gov/Archives/edgar/data/14632/000001463226000005/sbg2025financials-sec.xsd.pdf --- {0}------------------------------------------------ **SMITH, BROWN & GROOVER, INC. AND SUBSIDIARY** **FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION** **For the Year Ended December 31, 2025** {1}------------------------------------------------ 01/01/2025 12/31/2025 Smith, Brown & Groover, Inc. ■ 4001 Vinevilee Avenue Macon Georgia 31210 Holli C. Edwards 478-747-7004 holli@sbgwealth.com RDG + Partners, PLLC 10 Winthrop Street Rochester NY 14607 07/13/2010 5175 {2}------------------------------------------------ | | swear (or affirm) that, to the best of my knowledge and belief, the
Thomas D. Gaither, Jr. | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--| | | financial report pertaining to the firm of Smith, Brown & Groover, Inc.
as of | | | | | | | December 31 | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely
as that good
NN CH | | | | | | | | Commission
Signature:
Expires | | | | | | | NOTARY | | | | | | | litle:
PUBLIC | | | | | | President
PRIL 22, 2029 | | | | | | | 2.17.2026 | | | | | | | | | | | | | | 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. | | | | | | | | | | | | | | } 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. | | | | | | | □ (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. | | | | | | | O (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. | | | | | | | 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 240.15c3-1e or 17 CFR 240.17a-12, | | | | | | | as applicable. | | | | | | | (y) Report describing any material inadequacies 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 chis filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.18c-7(d)(2), as | | | | | {3}------------------------------------------------ # C O N T E N T S | | Page | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------| | REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM…………………………………………………………… 1 | | | FINANCIAL STATEMENTS
Statement of financial condition…………………………………………………
Statement of income ………………………………………………
Statement of changes in stockholder's equity……………………………………
Statement of cash flows…………………………………………………………
Notes to financial statements…………………………………………………… | 2
3
4
5
7 | | INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY | | | SCHEDULE OF EXPENSES……………………………………………………… 18 | | | Schedule of expenses…………………………………………………………… 19 | | | SUPPLEMENTARY INFORMATION REQURIRED BY RULE 17a-5
OF THE SECURITIES AND EXCHANGE COMMISSION
Schedule I - Computation of net capital under Rule 15c3-1 of the Securities
and Exchange Commission……………………………………………………. 21
Schedule II - Computation for determination of reserve requirements under Rule
15c3-3 of the Securities and Exchange Commission………………………… 23
Schedule III - Information relating to possession or control requirements under
Rule 15c3-3 of the Securities and Exchange Commission…………………… 24
Schedule IV - Reconciliation with Company's computations…………………… 25 | | | INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED
UPON PROCEDURES TO AN ENTITY'S SIPC ASSESSMENT
RECONCILIATION………………………………………………………… 26
SIPC-7 General Assessment Reconciliation…………………………………… 27 | | | REPORT ON INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM………………………………………….……………… 29
Compliance Report…………………………………………………………30 | | {4}------------------------------------------------ #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Smith, Brown & Groover, Inc. #### **Opinion on the Financial Statements** We have audited the accompanying consolidated statement of financial condition of Smith, Brown & Groover, Inc. as of December 31, 2025, the related consolidated statements of income, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Smith, Brown & Groover, Inc. as of December 31, 2025, 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 consolidated financial statements are the responsibility of Smith, Brown & Groover, Inc.'s management. Our responsibility is to express an opinion on Smith, Brown & Groover, Inc.'s consolidated 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 Smith, Brown & Groover, 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission, the Computation for Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission, the Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission, and Reconciliation with Company's Computations (collectively, the "Schedules") has been subjected to audit procedures performed in conjunction with the audit of Smith, Brown & Groover, Inc.'s consolidated financial statements. The supplemental information is the responsibility of Smith, Brown & Groover, Inc.'s 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 Schedules are fairly stated, in all material respects, in relation to the consolidated financial statements as a whole. We have served as Smith, Brown & Groover, Inc.'s auditor since 2025. Rochester, New York February 28, 2026 RDG + Partners, PLLC 10 Winthrop Street, Rochester, NY 14607 \* Tel 585.673.2600 **www.1rdg.com** {5}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### December 31, 2025 | ASSETS | | |-------------------------------------------------------------|-----------------| | Cash | \$
501,422 | | Cash in segregated accounts | 126,804 | | Cash - clearing service escrow deposit | 61,805 | | Securities owned, at fair value | 692,846 | | Fees receivable | 435,000 | | Commissions receivable | 55,191 | | Receivable from clearing broker | 3,158 | | Income tax refund receivable | 156,907 | | Prepaid expenses | 48,671 | | Note receivable from Stockholder | 5,210 | | Employee advances | 36,001 | | Deferred tax asset | 70,055 | | Furniture, equipment, and leasehold improvements, at cost, | | | less accumulated depreciation and amortization of \$371,715 | 405,056 | | Finance right-of-use asset | 3,714 | | Total assets | \$
2,601,840 | | LIABILITIES | | | Accounts payable, accrued expenses and other liabilities | \$
169,060 | | Finance lease liability | 3,744 | | Total liabilities | 172,804 | | STOCKHOLDER'S EQUITY | | | Common stock, \$100 par value, 500 shares authorized, | | | 260 shares issued | 26,000 | | Retained earnings | 2,405,705 | | | 2,431,705 | | Treasury stock | (2,669) | | Total stockholder's equity | 2,429,036 | | Total liabilities and stockholder's equity | \$
2,601,840 | {6}------------------------------------------------ ## STATEMENT OF INCOME #### For the Year Ended December 31, 2025 | REVENUES | | |----------------------------------------------|---------------| | Distribution fees | \$ 2,414,665 | | Investment advisory fees | 2,520,343 | | Brokerage commissions | 6,627 | | Net trading income (loss) | (4,950) | | Interest | 10,326 | | Margin interest | 1,817 | | Other revenue related to securities business | 681 | | Gain on disposal of assets | 832 | | Total revenues | 4,950,341 | | EXPENSES | | | Compensation and benefits | 3,509,035 | | Occupancy and equipment costs | 190,198 | | Exchange, clearance fees and expenses | 174,545 | | Other | 247,631 | | Regulatory fees and expenses | 120,658 | | Communications | 122,285 | | Losses in error account | (518) | | Data processing costs | 56,365 | | Total expenses | 4,420,199 | | INCOME (LOSS) BEFORE INCOME TAX PROVISION | 530,142 | | PROVISION FOR INCOME TAXES | | | Deferred income tax (benefit) provision | 117,670 | | Current income tax provision | 22,093 | | | 139,763 | | NET INCOME (LOSS) | \$
390,379 | {7}------------------------------------------------ | | Year Ended
For the | Dece | mber 31, 2025 | | | |------------------------------------------------------|-----------------------|-------------------|------------------------|--------------------|----------------------------| | | | | Retained | Treasury | | | | m
Co | mon Stock | Earnings | Stock | Total | | | Shares | mount
A | | | | | Balances at January 1, 2025
me (loss)
Net inco | 260
- | 26,000
-
\$ | \$2,015,326
390,379 | \$
(2,669)
- | \$
2,038,657
390,379 | | mber 31, 2025
Dece
Balances at | 260 | 26,000
\$ | \$2,405,705 | \$
(2,669) | \$
2,429,036 | STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY {8}------------------------------------------------ ## STATEMENT OF CASH FLOWS #### For the Year Ended December 31, 2025 | CASH FLOWS FROM OPERATING ACTIVITIES | | |-------------------------------------------------|---------------| | Net income | \$
390,379 | | Adjustments to reconcile net income to | | | net cash provided by operating activities: | | | Depreciation | 82,349 | | Amortization of ROU asset | 9,109 | | Gain on disposal of assets | (832) | | (Increase) decrease in: | | | Securities owned, net | (374,607) | | Fees receivable | (40,000) | | Commissions receivable | (51,390) | | Receivable from clearing broker | 4,577 | | Income tax refunds receivable | (91,907) | | Prepaid expenses | (3,744) | | Employee advances | 6,000 | | Deferred tax benefit | 117,670 | | Increase (decrease) in: | | | Accounts payable and other liabilities | 19,950 | | Net provided by operating activities | 67,554 | | CASH FLOWS FROM INVESTING ACTIVITIES | | | Purchase of fixtures and leasehold improvements | (232,098) | | Proceeds from sale of asset | 1,000 | | Loan to shareholder, net | 64,009 | | Net cash used by investing activities | (167,089) | {9}------------------------------------------------ ## STATEMENT OF CASH FLOWS (Continued) #### For the Year Ended December 31, 2025 | CASH FLOWS FROM FINANCING ACTIVITIES | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------| | Repayment of finance lease liability | \$
(12,996) | | Net cash used by financing activities | (12,996) | | NET DECREASE IN CASH | (112,531) | | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning | 802,562 | | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, ending | \$
690,031 | | SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION | | | Interest paid | \$
1,233 | | Income taxes paid | \$
115,000 | | Reconciliation of cash reported in the statement of financial condition
with the total cash presented in the statement of cash flows:
Cash
Cash in segregated accounts under federal regulations
Cash - clearing service escrow deposit | \$
501,422
126,804
61,805 | | | \$
690,031 | {10}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 1. NATURE OF OPERATIONS Smith, Brown & Groover, Inc. is a securities broker-dealer registered with the SEC and a member of FINRA. The Company's principal products and services are stocks, bonds, mutual funds, insurance, annuities and investment advisory. The Company's customers are primarily individuals in the middle Georgia area. Smith, Brown & Groover, Inc. formed a wholly owned subsidiary in 2017, SBG Transportation, LLC, to provide travel services to the Company. The LLC had no assets or operations in 2025 and received a certificate of termination in February 2025. # 2. SIGNIFICANT ACCOUNTING POLICIES ## Segments The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of services, including agency transactions and investment advisory. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business and manage the Company. Additionally, the CODM uses excess net capital (see Note 9), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends, and manage the Company. The Company's operations constitute a single operating segment and, therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. # Securities Owned Proprietary securities (trading securities) transactions in regular-way trades are recorded on the trade-date, as if they had settled at cost. Profits and losses arising from all securities transactions entered into for the account and risk of the Company are recorded on a trade-date basis. Customers' securities transactions are reported on a settlement-date basis with related commission income and expenses reported on a trade-date basis. Amounts receivable and payable for securities transactions that have not reached their contractual settlement date are recorded net on the statement of financial condition. All securities are classified as trading securities and are recorded at fair value in accordance with Financial Accounting Standards Board (FASB) ASC 820, *Fair Value Measurements and Disclosures.* As a result, unrealized gains and losses resulting from the difference between fair value and acquisition costs are recorded in the statement of income. {11}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 2. SIGNIFICANT ACCOUNTING POLICIES (continued) ## Net Trading Income (Loss) Securities transactions entered into for the account and risk of the Company are recorded on a trade date basis. Net trading income (loss) comprises gains less losses related to trading assets and liabilities and includes all realized and unrealized gains and losses. ## Depreciation The Company capitalizes property with a cost of at least \$1,000 and a useful life of more than one year. Furniture, equipment, and automobiles are depreciated over a period of five to ten years using the straight-line depreciation method. Leasehold improvements are amortized over the economic useful life of the improvement. Depreciation expense for the year totaled \$82,349. #### Statement of Cash Flows For the purpose of reporting cash flows, cash, cash equivalents and restricted cash include operating cash in bank accounts and cash segregated and held in escrow under federal and other regulations. Money market funds held in the investment account are treated as investments. ## Current Expected Credit Losses (CECL) Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, *Financial Instruments — Credit Losses*. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported in Credit Loss expense. *Receivables from broker-dealers and clearing organizations.* The Company's receivables from broker-dealers and clearing organizations include commissions receivable from unsettled trades, amounts receivable for securities failed to deliver, accrued interest receivables and fees receivable from sale of investment company shares. A portion of the Company's trades and contracts are cleared through a clearing organization and settled daily between the clearing organization and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. {12}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 2. SIGNIFICANT ACCOUNTING POLICIES (continued) ## Advertising The Company expenses the cost of advertising the first time the advertising activity takes place. Advertising expenses total \$92,800 for the year ended December 31, 2025. ## Income Taxes Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between tax and book depreciation of property and equipment, the basis of marketable securities, and the deductibility of net operating losses for financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. ## Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. ## Leases The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a lease liability and a right of use (ROU) asset at the commencement date of the lease. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. The discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. The Company has elected to not recognize right-of-use assets or lease liabilities for short term leases of all asset classes and recognizes short term leases on a straight-line basis over the lease term. The Company did not elect the practical expedient to use hindsight {13}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS ## 2. SIGNIFICANT ACCOUNTING POLICIES (continued) ## Leases (continued) when determining lease term. The Company made an accounting policy election by class of underlying asset to account for each separate lease component of a contract and its associated non-lease components as a single lease component. ## 3. CASH SEGREGATED UNDER FEDERAL AND OTHER REGULATIONS In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, we as a brokerdealer carrying client accounts, are subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of clients. As of December 31, 2025, cash of \$100,005 is segregated in a reserve account. As of December 31, 2025, cash of \$26,799 representing customer funds are also segregated in accordance with Securities and Exchange Commission rules. ## 4. RECEIVABLE FROM AND PAYABLE TO BROKER-DEALERS AND CLEARING ORGANIZATIONS The Company clears most of its proprietary and customer transactions through another broker-dealer on a fully disclosed basis. The receivable from the clearing broker represents commissions receivable from the clearing broker in excess of clearing and administrative fees due to the clearing broker. ## 5. FAIR VALUE MEASUREMENT FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - x Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. - x Level 2 inputs are inputs (other than quoted prices included within level 1) that are observable for the asset or liability, whether directly or indirectly. {14}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 5. FAIR VALUE MEASUREMENT (continued) x Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data.) The following presents the fair value of the Company's assets measured on a recurring basis as of December 31, 2025: | | Fair Value | Level 1 | |----------------------------------------|--------------------------|--------------------------| | Money market funds
Corporate stocks | \$
521,000
171,846 | \$
521,000
171,846 | | | \$
692,846 | \$
692,846 | Total marketable securities at cost were \$731,351 during the year ended December 31, 2025. There were no Level 2 or 3 inputs as of December 31, 2025. There were no liabilities requiring fair market value measurement. #### 6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following, at cost: | Office furniture and equipment | \$
168,356 | |--------------------------------|---------------| | Leasehold improvements | 87,729 | | Automobiles | 518,686 | | Software | 2,000 | | | 776,771 | | Less accumulated depreciation | (371,715) | | | \$
405,056 | ## 7. REVENUE FROM CONTRACTS WITH CUSTOMERS #### Significant Judgements Revenue from contracts with customers includes commission income, which consists of brokerage and distribution fees, and advisory fees from customers. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are {15}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS ## 7. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued) ## Significant Judgements (continued) satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based upon the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration would be applied due certain future events. ## Distribution Fees The Company enters arrangements with pooled investment vehicles (funds) to distribute shares to investors. The Company may receive distribution fees paid by the fund up front, over time, upon the investor's exit from the fund (that is, a contingent deferred sales charge), or as a combination thereof. The Company recognizes upfront distribution fees on the trade date, while variable amounts are constrained until uncertainty related to market value fluctuations is resolved. Revenue for such fees is recognized when it is probable that a significant reversal will not occur. ### Investment Advisory Fees The Company provides investment advisory services on a daily basis, and the performance obligation is satisfied over time as customers continuously receive and consume the benefits of advisory services. Advisory fees are calculated as a percentage of assets under management and are recognized quarterly as services are rendered. The Company assesses whether contract modifications (e.g., fee rate changes) require a new performance obligation or a cumulative adjustment to revenue. ## Brokerage Commissions for Non-Discretionary Accounts The Company executes securities transactions for customers but earns no commissions on these trades. The Company charges a flat fee of \$20 per trade and revenue is recognized on the trade date, which is the point at which the Company's performance obligation is met. No additional performance obligations exist beyond the execution of trades. ## Life and Annuity Commissions The Company earns commissions from selling annuity and life insurance products. Upfront commissions, typically 1% of the product value, are recognized when the product is sold. Trail commissions, typically 1% of the product value, are realized on an ongoing basis and paid quarterly. {16}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 7. REVENUE FROM CONTRACTS WITH CUSTOMERS (continued) #### 12B-1 Fees These fees represent revenue-sharing commissions earned from investment companies for selling mutual funds and annuities. Revenue is recognized when earned, typically on a monthly or quarterly basis. Disaggregated revenue from contracts with customers: | Revenue Type | Recognition Timing | Revenue (\$) | | |---------------------------------------------|--------------------|--------------|-----------| | Investment advisory fees | Quarterly | \$ | 2,520,343 | | Brokerage commissions | Trade Date | | 6,627 | | Life & Annuity commissions (upfront) | Trade Date | | 252,014 | | Life & Annuity commissions (trail) | Over Time | | 1,681,844 | | Mutual fund commissions (upfront) | Trade Date | | 43,504 | | Municipal fund commissions (upfront) | Trade Date | | 93 | | 12B-1 Fees | Monthly/Quarterly | | 437,210 | | Other securities-related revenue | Various | | 681 | | Total revenue from contracts with customers | | \$ | 4,942,316 | #### 8. SEGMENT REPORTING The Company's operations are a single reportable segment, and the chief operation decision maker manages the business activities using the entire statement of income presented on page 3. The following presents the other required segment disclosures for the year ended December 31, 2025: | Revenues from external customers (see note 7) | \$
4,942,316 | |-----------------------------------------------|-----------------| | Net trading income (loss) | (4,950) | | Interest | 10,326 | | Margin interest | 1,817 | | Gain on disposal of assets | 832 | | Interest expense | 1,233 | | Depreciation | 82,349 | | Amortization of ROU asset | 9,109 | | Current income tax expense | 22,093 | | Segment assets | 2,601,840 | | Expenditures for segment long-lived assets | 232,098 | {17}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS # 9. NET CAPITAL REQUIREMENTS As a registered broker-dealer, the company is subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. As a member of FINRA, we are subject to the rules of FINRA, whose capital requirements are substantially the same as Rule 15c3-1. Rule 15c3-1 requires that aggregate indebtedness, as defined, not exceed 15 times net capital, as defined. FINRA may require a member firm to reduce its business if its net capital is less than four percent of aggregate debit items and may prohibit a member firm from expanding its business and declaring cash dividends if its net capital is less than five percent of aggregate debit items. At December 31, 2025, the Company had net capital, as defined by Rule 15c3-1 of \$1,232,226 which is \$982,226 above its required net capital of \$250,000. The Company's net capital ratio was .14 to 1. # 10. LOAN The Company has a \$500,000 line of credit with Cadence Bank, with interest accrued on the outstanding balance at 1% over the prime rate with a floor rate of 5.5%. The line is renewable biannually in September 2026 and is guaranteed by the stockholder. At December 31, 2025, there was no outstanding debt. ## 11. EMPLOYEE BENEFITS The Company has a 401k safe harbor matching plan in which all employees age 21 and over with one year of service are eligible to participate. The Company matches up to 4% of eligible compensation. Employer matching contributions totaled \$85,160. ## 12. RELATED PARTY TRANSACTIONS ## Lease The Company leases office and storage space from the stockholder. Rent is \$12,000 per month for a term of one year beginning January 01, 2025, and ending on December 31, 2025. The lease can be terminated by either party with a 30-day notice. Total rent paid under the lease was \$144,000 for the year ended December 31, 2025. #### Note Receivable The stockholder note is renewable annually and bears interest at the stated rate of 3.25% per annum. When the average monthly Applicable Federal Rate (AFR) is greater than the stated rate, an adjustment to interest is made annually to equal the AFR effective monthly average. Interest on the note is due on or before December 31 of each year. {18}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### 13. INCOME TAXES The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, *Income Taxes.* ## Components of Income Tax Provision The provision for income taxes for the year ended December 31, 2025 consists of the following: | | Federal | | State | | Total | | |----------------------------|---------|--------|-------------|----|---------|--| | Current expense | \$ | 17,615 | \$
4,478 | \$ | 22,093 | | | Deferred expense (benefit) | | 92,137 | 25,533 | | 117,670 | | | Total income tax provision | | | | \$ | 139,763 | | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. #### Deferred Tax Assets and Liabilities The net deferred tax assets in the accompanying statement of financial condition include the following amounts of deferred tax assets and liabilities: | Deferred tax liabilities | \$
(69,352) | |--------------------------|----------------| | Deferred tax assets | 139,407 | | Net deferred tax assets | \$
70,055 | Deferred tax assets primarily relate to net operating loss carryforwards and unrealized losses on investments. Deferred tax liabilities primarily relate to the differences between book and tax depreciation. The Company had federal and state net operating loss for carryforwards of \$518,237 and \$509,018, respectively. The carryforwards are available to be used to reduce taxable income in future years, subject to limitations. Management evaluates the realizability of deferred tax assets and records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based upon the Company's history of profitability and projected future taxable income, management has concluded that no valuation allowance is necessary at December 31, 2025. {19}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS ## 13. INCOME TAXES (continued) ## Effective Tax Rate Reconciliation The Company's effective rate differs from the U.S. federal statutory rate of 21% primarily due to state income taxes and permanent differences. A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate for the year ended December 31, 2025, is as follows: | | Amount | Percentage | | |--------------------------------------------|---------------|------------|--| | U.S. federal statutory rate | \$
111,330 | 21.0% | | | State income taxes, net of federal benefit | 30,218 | 5.7% | | | Permanent differences | 3,007 | 0.6% | | | Other | (4,792) | -0.9% | | | Effective income tax rate | \$
139,763 | 26.4% | | The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. At December 31, 2025, the Company had no material uncertain tax positions and had not accrued interest or penalties. ## 14. LEASES The Company has elected not to apply the recognition requirements of Topic 842 to short-term leases and has no operating leases with a term greater than 12 months. The Company entered into a five-year financing lease for a new copier in April of 2021 and a three-year financing lease for computer equipment in March 2023. The present values of \$29,038, and \$18,536, respectively, for the leases are recognized as a finance right-of-use asset with a related finance lease liability in the consolidated statement of financial condition. A lease incentive of \$13,000 was realized as a reduction to the 2021 copier right-of-use asset at inception. The asset is presented net of \$30,860 accumulated amortization. Amortization expense totaled \$9,109 for the year ended December 31, 2025. Future payments due under the finance lease as of December 31, 2025, are as follows: | Due in 2026 | \$
3,765 | |-----------------------------|-------------| | Less effects of discounting | (21) | | Lease liability recognized | \$
3,744 | As of December 31, 2025, the weighted average remaining lease term is 8.8 months and the weighted average discount rate is 4.09%. The discount rate used is the incremental borrowing rate since there was no access to the rate implicit in the lease. {20}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS #### 15. CONCENTRATIONS The Company has diversified its credit risk for cash by maintaining deposits in three banks. Accounts at each institution are insured up to \$250,000 by the Federal Deposit Insurance Corporation (FDIC). Balances on deposit in excess of FDIC insurance were \$466,730 as of December 31, 2025. Cash held in brokerage accounts is fully protected by the Securities Investor Protection Corporation. The Company derived 10% of its total revenue from the sale of mutual funds and mutual fund dealer commissions and 39% of its total revenue from the sale of annuities during the year ended December 31, 2025. The Company received 87% of its commissions from annuity sales from four issuers with 51% received from one issuer. ### 16. RISKS AND UNCERTAINTIES The consequences of a substantial decline in the financial markets could have a significant impact on the securities owned by the Company and on the Company's performance. 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. ## 17. SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through February 28, 2026, the date upon which the Company's financial statements were available for issue. The Company has not evaluated subsequent events after this date. {21}------------------------------------------------ #### **INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY SCHEDULE OF EXPENSES** To the Board of Directors of Smith, Brown & Groover, Inc. We have audited the financial statements of Smith, Brown & Groover, Inc. as of and for the year ended December 31, 2025, and our report thereon dated February 28, 2026, which expressed an unmodified opinion on those financial statements, appears on page 1. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Expenses is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Rochester, New York February 28, 2026 > RDG + Partners, PLLC 10 Winthrop Street, Rochester, NY 14607 \* Tel 585.673.2600 **www.1rdg.com** {22}------------------------------------------------ #### SUPPLEMENTARY SCHEDULE OF EXPENSES #### For the Year Ended December 31, 2025 | COMPENSATION AND BENEFITS | | |-----------------------------------------------|---------------| | Commissions to registered representatives | \$
537,613 | | Stockholder's compensation | 1,440,718 | | Clerical salaries | 1,221,761 | | Insurance - employee benefits | 128,712 | | Payroll taxes | 94,148 | | Profit sharing plan expense | 86,083 | | | 3,509,035 | | OCCUPANCY AND EQUIPMENT COST | | | Rent | 144,000 | | Building insurance | 2,220 | | Utilities | 44,001 | | Equipment rental | (23) | | | 190,198 | | EXCHANGE, CLEARANCE FEES AND EXPENSES | | | Exchange fees | 3,268 | | Clearing broker administrative fees | 52,378 | | Clearance fees | 118,899 | | | 174,545 | | OTHER | | | Automobile expense, net of stockholder fringe | (14,344) | | Dues and subscriptions | 2,781 | | Depreciation and amortization | 91,458 | | Interest | 1,233 | | Repairs and maintenance | 37,717 | | Office miscellaneous | 44,570 | | Meals and entertainment | 7,638 | | Conference and travel | 16,186 | | Consulting and legal | 54,588 | | Dues, fees and assessments | 5,804 | | | 247,631 | {23}------------------------------------------------ #### SUPPLEMENTARY SCHEDULE OF EXPENSES (continued) #### For the Year Ended December 31, 2025 | REGULATORY FEES AND EXPENSES | | |------------------------------------------------|-----------------| | Professional fees | \$
57,965 | | Insurance - errors and ommissions | 15,024 | | Insurance and bond - required | 6,693 | | Taxes, licenses, and fees | 40,976 | | | 120,658 | | COMMUNICATIONS | | | Office supplies | 14,144 | | Telephone | 2,152 | | Postage | 8,166 | | Advertising and marketing | 97,823 | | | 122,285 | | LOSSES IN ERROR ACCOUNT | | | Errors and omissions | (518) | | DATA PROCESSING COSTS | | | Computer software service and maintenance fees | 56,365 | | | \$
4,420,199 | {24}------------------------------------------------ # SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION #### December 31, 2025 | NET CAPITAL | | |------------------------------------------------------------------|-----------------| | Total stockholder's equity from statement of financial condition | \$
2,429,036 | | Deduct stockholder's equity not allowable for net capital | - | | Total stockholder's equity qualified for net capital | 2,429,036 | | Add: | | | Other (deductions) or allowable credits | - | | Total capital | 2,429,036 | | Deductions and/or charges: | | | Nonallowable assets: | | | Furniture, equipment, and leasehold improvements, net | 408,770 | | Employee loans, uncollateralized | 41,210 | | Prepaid expenses | 48,671 | | Income tax refund claim | 156,907 | | Deferred tax asset | 70,055 | | Commissions and fees receivable | 435,000 | | Total deductions and/or charges | 1,160,613 | | Net capital before haircuts on securities positions | 1,268,423 | | Haircuts on securities: | | | Trading and investment securities | | | Stocks and warrants | 25,777 | | Other securities | 10,420 | | Total haircuts on securities | 36,197 | | | | | Net capital | \$
1,232,226 | {25}------------------------------------------------ # SCHEDULE I (continued) COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION December 31, 2025 | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT (continued) | | |--------------------------------------------------------------------------------------------------|---------------| | Minimum net capital required (6-2/3% of aggregate indebtedness) | \$
11,520 | | Minimum dollar net capital requirement of reporting broker | \$
250,000 | | Net capital requirement (greater of the above) | \$
250,000 | | Excess net capital | \$
982,226 | | Net capital less the greater of 10% of AI or 120% of minimum net capital | \$
932,226 | | COMPUTATION OF AGGREGATE INDEBTEDNESS
Total aggregate indebtedness liabilities from Statement | | | of Financial Condition | \$
172,804 | | Total aggregate indebtedness | \$
172,804 | | Percentage of aggregate indebtedness to net capital | 14.02% | {26}------------------------------------------------ ## SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION #### December 31, 2025 | CREDIT BALANCES: | | |----------------------------------------------------------------|---------------| | Free and other credit balances in customers' security accounts | \$
- | | DEBIT BALANCES: | | | Debit balances in customers' cash and margin accounts | \$
- | | | | | RESERVE COMPUTATION: | | | Excess of total credits over total debits | \$
- | | 105% of total credits over total debits | \$
- | | Amount held on deposit in Reserve Bank Account | \$
100,005 | | Required deposit | \$
- | | | | {27}------------------------------------------------ ## SCHEDULE III INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION ## December 31, 2025 State the market value and the number of items of: 1. Customers' fully paid securities and excess margin securities not in respondent's possession or control as of the report date (for which instructions were issued as of the report date but for which the required action was not taken by respondent within the time frames specified under Rule 15c3-3). | | \$
0 | |-----------------|---------| | Number of items | 0 | 2. Customers' fully paid and excess margin securities for which instructions to reduce to possession or control had not been issued as of the report date, excluding items arising from "temporary lags resulting from normal business operations" as permitted under Rule 15c3-3. | | \$
0 | |-----------------|---------| | Number of items | 0 | 3. Possession and control procedures have been tested and are functioning as required by Rule 15c3-3. (Y or N) $$\begin{array}{cccc} \hline X & \text{Yes} \\ \hline \hline \text{ } & \text{ No} \\ \hline \end{array} \quad \begin{array}{ccc} \text{Yes} \\ \hline \text{No} \\ \hline \end{array}$$ {28}------------------------------------------------ ## SCHEDULE IV RECONCILIATION WITH COMPANY'S COMPUTATIONS ## December 31, 2025 | Net capital, as reported in Company's | | |-----------------------------------------------------------------------|-----------------| | Part II (Unaudited) FOCUS report | \$
1,232,157 | | Decrease in nonallowable assets from closing adjustments | 127,804 | | Net increase (decrease) in income and equity from closing adjustments | (127,735) | | | 69 | | Net capital per audited Schedule I | \$
1,232,226 | There were no differences between the Company's computation of reserve requirements and the audited computation of reserve requirements under Rule 15c3-3. {29}------------------------------------------------ # **This report is deemed CONFIDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934** #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES Board of Directors of Smith, Brown & Groover, Inc. We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2025. Management of Smith, Brown & Groover, Inc. (Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2025 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2025, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. Rochester, New York February 28, 2026 RDG + Partners, PLLC 10 Winthrop Street, Rochester, NY 14607 \* Tel 585.673.2600 **www.1rdg.com** {30}------------------------------------------------ | | \$% &

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| | SMITH BROWN & GROOVER INC
4001 VINEVILLE AVENUE
MACON, GA 31210 | | | | | SMITH BROWN & GROOVER INC
###################################################### | Holli C. Edwards
############################### | | | |-------------------------------------------------------------------------------------|--------------------------------------------------------|--|--| | .%
=%-1 | .)B! " 1 | | | | 2/17/2026
###################################################### | holli@sbgwealth.com
############################### | | | | .\$1 | .% !!1 | | | | | | | | {32}------------------------------------------------ #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors of Smith, Brown & Groover, Inc. We have examined Smith, Brown & Groover, Inc.'s statements, included in the accompanying Compliance Report, that (1) Smith, Brown & Groover, Inc.'s internal control over compliance was effective during the most recent fiscal year ended December 31, 2025; (2) Smith, Brown & Groover, Inc.'s internal control over compliance was effective as of December 31, 2025; (3) Smith, Brown & Groover, Inc. was in compliance with 17 C.F.R. §§ 240.15c3-1 and 240.15c3-3(e) as of December 31, 2025; and (4) the information used to state that Smith, Brown & Groover, Inc. was in compliance with 17 C.F.R. §§ 240.15c3-1 and 240.15c3-3(e) was derived from Smith, Brown & Groover, Inc.'s books and records. Smith, Brown & Groover, Inc.'s management is responsible for establishing and maintaining a system of internal control over compliance that has the objective of providing Smith, Brown & Groover, Inc. with reasonable assurance that non-compliance with 17 C.F.R. § 240.15c3-1, 17 C.F.R. § 240.15c3-3, 17 C.F.R. § 240.17a-13, or NASD Rule 2340 of the Financial Industry Regulatory Authority that requires account statements to be sent to the customers of Smith, Brown & Groover, Inc. will be prevented or detected on a timely basis. Our responsibility is to express an opinion on Smith, Brown & Groover, Inc.'s statements based on our examination. We conducted our examination in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the examination to obtain reasonable assurance about whether Smith, Brown & Groover, Inc.'s internal control over compliance was effective as of and during the most recent fiscal year ended December 31, 2025; Smith, Brown & Groover, Inc. complied with 17 C.F.R. §§ 240.15c3-1 and 240.15c3- 3(e) as of December 31, 2025; and the information used to assert compliance with 17 C.F.R. §§ 240.15c3-1 and 240.15c3- 3(e) as of December 31, 2025 was derived from Smith, Brown & Groover, Inc.'s books and records. Our examination includes testing and evaluating the design and operating effectiveness of internal control over compliance, testing and evaluating Smith, Brown & Groover, Inc.'s compliance with 17 C.F.R. §§ 240.15c3-1 and 240.15c3-3(e), determining whether the information used to assert compliance with 240.15c3-1 and 240.15c3-3(e) was derived from Smith, Brown & Groover, Inc.'s books and records, and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. In our opinion, Smith, Brown & Groover, Inc.'s statements referred to above are fairly stated, in all material respects. Rochester, New York February 28, 2026 {33}------------------------------------------------ ![](_page_33_Picture_0.jpeg) Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.