# U.S. SECURITIES, INTL. CORP. X-17A-5 (2022-12-16) — Broker-dealer annual report
- Company: U.S. SECURITIES, INTL. CORP.
- Form: X-17A-5
- Filed: 2022-12-16
- Period: 2022-09-30
- Accession: 0000100505-22-000004
- CIK: 100505
- File #: 8-18118
- Type: Broker-dealer
- Material weakness: No
- Auditor: WWC, P.C.
- Auditor location: San Mateo, CA
- Contact: William Coppa
- Phone: 212 227 0800
- Email: bcoppa@ussecuritiesintl.com
- Website: ussecuritiesintl.com
- Signed by: William Coppa (Secretary Treasurer)
Original filing: https://www.sec.gov/Archives/edgar/data/100505/000010050522000004/ussecauditreport.pdf
---
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## U.S. SECURITIES INTERNATIONAL CORP.
## FINANCIAL STATEMENTS and SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2022
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## TABLE OF CONTENTS
| Report of Independent Registered Public Accounting Firm | Page
- |
|---------------------------------------------------------------------------------------------------------------------------|-----------|
| Financial Statements: | |
| Statement of Financial Condition | 2 |
| Statements of Operations and Comprehensive Income | 3 |
| Statements of Changes in Stockholders' Equity | 4 |
| Statements of Cash Flows | 5 |
| Notes to Financial Statements | 6 - 11 |
| Supplementary Information: | |
| Computation of Net Capital | 13 |
| Computation of Basic Net Capital Requirement | 13 |
| Computation of Aggregate Indebtedness | 13 |
| Reconciliation of Net Capital | 14 |
| Computation for Determination of the Reserve Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | । |
| Information relating to Possession or Control Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | ી ર |
| Report of Independent Registered Public Accounting Firm | 16 |
| Exemption Report | 18 |
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| | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | | OMB APPROVAL
OMB Number: 3235-0123
Expires: Oct. 31, 2023
Estimated average burden
hours per response: 12 | |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-----------------|-----------------------------|-----------------------------------------------------------------------------------------------------------------------|--|
| | ANNUAL REPORTS | | | SEC FILE NUMBER | |
| FORM X-17A-5 | | | 8-18118 | | |
| | PART III | | | | |
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
FILING FOR THE PERIOD BEGINNING | FACING PAGE
10/1/2021 | AND ENDING | | 09/30/2022 | |
| | MM/DD/YY | | MM/DD/YY | | |
| | A. REGISTRANT IDENTIFICATION | | | | |
| | U S Securities International Corp. | | | | |
| NAME OF FIRM: | | | | | |
| 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.) | | | | | |
| | 120 Broadway, Suite 1017 | | | | |
| | (No. and Street) | | | | |
| New York | NY | | | 10271 | |
| (City) | (State) | | | (Zip Code) | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | |
| William Coppa | (212) 227-0800 | | bcoppa@ussecuritiesintl.com | | |
| (Name) | (Area Code - Telephone Number) | | (Email Address) | | |
| | B. ACCOUNTANT IDENTIFICATION | | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | WWC, P.C. | | | | |
| | (Name - if individual, state last, first, and middle name) | | | | |
| 2010 Pioneer Court | San Mateo | CA | | 94403 | |
| (Address)
3/16/2004 | (City) | (State)
1171 | | (Zip Code) | |
| (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. | | | | |
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### OATH OR AFFIRMATION
| William Coppa | swear (or affirm) that, to the best of my knowledge and belief, the |
|----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| financial report pertaining to the firm of | as of as as of
U S Securities International Corp. |
| 9/30 | , 2 022 , is true and correct. If 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. | |
| | |
| | Signature |
| | |
| | litle: |
| | Jenice Hernands cretary/Treasurer
Notary Public State Of New York |
| | No. 01HE6359254 |
| Nptary Public | Qualified in Bronx, Cert. Kings, NY Counties
Commission Expires May 22nd 2025 |
| | The UPS Store @ 82 Nassau 212.406.9010 |
| 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 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. |
| L (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. | |
| [1) 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 capital or tangible net |
| | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 |
| | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences |
| exist. | |
| | □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. |
| | (q) Oath or affirmation in accordance with 17 CFR 240.17a-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. | |
| | O (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 have existed since the date of the previous audit, or |
| a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). | |
| L (z) Other: | |
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### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of U.S. Securities International Corp.
#### Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of U.S. Securities International Corp. as of September 30, 2022, and the related statements of comprehensive income, changes in stockholders' 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 U.S. Securities International Corp. as of September 30, 2022, 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 U.S. Securities International Corp.'s management. Our responsibility is to express an opinion on U.S. Securities International Corp's 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 U.S. Securities International Corp. 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 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.
#### Auditor's Report on Supplemental Information
The Schedule I-Computation of Net Capital Under Rule 15c3-1 and Exemption Report on Schedule III-Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 has been subjected to audit procedures performed in conjunction with the audit of U.S. Securities International statements. The supplemental information is the responsibility of U.S. Securities International Corp.'s management. Our audit procedures included determining whether the supplemental information reconciles to 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 15c3-1 and Exemption Report on Schedule III-Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 is fairly stated, in all material respects, in relation to the financial statements as a whole.
WWC,P.C.
WWC, P.C
We have served as U.S. Securities International Corp.'s auditor since 2021.
San Mateo, CA November 29, 2022
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# U.S. SECURITIES INTERNATIONAL CORP. STATEMENT OF FINANCIAL CONDITION AS OF SEPTEMBER 30, 2022
Current Assets:
| Cash and cash equivalents
Commissions receivable due from clearing broker
Trading securities
Prepaid | S | 53,498
6,361
1,944,263
1,308 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|---------------------------------------|
| Right of use assets, net | | 81,187 |
| Non-current Assets: | | |
| Restricted cash - clearing deposit held at clearing broker | | 50,000 |
| Total Assets | ತಿ | 2,136,617 |
| Current Liabilities: | | |
| Accounts payable and accrued liabilities
Lease obligations | S | 126,518
87,752 |
| Total Liabilities | ಕಿತ | 214,270 |
| Commitments and Contingencies | | |
| Stockholders' Equity: | | |
| Common stock with \$1.00 par value: authorized 10,000 shares
Designated non-voting: issued and outstanding 36 shares as of September 30, 2022
Designated voting; issued and outstanding 4 shares as of September 30, 2022
Retained earnings | S | 36
4
1,922,307 |
| Total Stockholders' Equity | S | 1,922,347 |
| Total Liabilities and Stockholders' Equity | ਦਿੱਤੇ | 2,136,617 |
See Accompanying Notes and Independent Auditors Report
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# U.S. SECURITIES INTERNATIONAL CORP. STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2022
| Revenue | | |
|-----------------------------------------------------|----|------------------|
| Commissions | ಕಾ | 365,089 |
| Interest & dividends | | 35,438 |
| Trading income | | 184,574 |
| Other income | | 6,700 |
| Total Revenue | ಕಿ | 591,801 |
| Expenses: | | |
| Compensation expense | | 175,856 |
| Clearing and execution expense | | 140,225 |
| Miscellaneous operating expense | | 102,154 |
| Professional fees | | 28,835 |
| Occupancy | | 120,967 |
| Insurance | | 14,845 |
| Regulatory fees
Communication and market data | | 9,717 |
| | | 6,149
598,748 |
| Net income (loss) before provision for income taxes | | (6,947) |
| Provision for federal income tax | | |
| Provision for state and local taxes | | |
| Net income (loss) | | (6,947) |
| Comprehensive income (loss) | | (6,947) |
See Accompanying Notes and Independent Auditors Report
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### U.S. SECURITIES INTERNATIONAL CORP. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED SEPTEMBER 30, 2022
| | Common Stock
- Non-Voting | | Common Stock
- Voting
Shares Amount Shares Amount | | Retained Earnings | Total Equity | |
|-----------------------------------|------------------------------|-------|---------------------------------------------------------|------|-------------------|--------------|--|
| Balance at October 1, 2021 | 36 | \$ 36 | ব | \$ 4 | \$ 1,929,254 | \$1,929,294 | |
| Net income (loss) from operations | | | | | (6,947) | (6.947) | |
| Balance at September 30, 2022 | 36 | \$ 36 | ব | \$ 4 | \$ 1,922,307 | \$1.922.347 | |
See Accompanying Notes and Independent Auditors Report
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# U.S. SECURITIES INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2022
### NOTE 1 - Nature of Business
### Organization
U.S. Securities International Corp. (the "Company') incorporated in the State of New York on June 24, 1974. The Company was purchased from Fidelity Management and Research Co. in 1974 by the operating personnel who have owned and operated the Company since that date. The Company is a registered broker-dealer with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory (FINRA) the Chicago Board Options Exchange (CBOE). The Company is also a member of the (Securities Investor Protection Corporation (SIPC).
All of the Company's executable trades are cleared through its clearing broker on a fully disclosed basis. The Company does not carry customer accounts. The Company is classified by its Designated Regulatory Authority (DRA) FINRA, as an Introducing non-clearing broker-dealer. The Company is exempt from Securities and Exchange Commission Rule 15c3-3 under paragraph k(2)(ii).
### NOTE 2 - Summary of Significant Accounting Policies
### Basis of Presentation
The accompanying financial statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP").
### Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
### Cash
All unrestricted highly liquid investments with initial or remaining maturities of less than 90 purchase are considered cash and cash equivalents. The Company's cash is held by major financial institutions. At times, such amount may exceed the Federal Deposit Insurance Corporation ("FDIC") limit. On September 30, 2022, the Company's cash did not exceed the limit; therefore, there was no concentration of risk for Company's deposits.
### Commission Receivable Due from Clearing Broker
Receivables from clearing broker on the statement of financial condition consist of commissions earned by the Company that are held with the clearing broker. These receivables are typically settled within thirty days. The clearing broker is a sufficiently capitalized financial institution. Management has determined that the risk of loss is unlikely, acordingly, an allowance for bad debt has not been assessed. Should the clearing broker's financial condition deteriorate, the management will reassess.
### Restricted Cash
Restricted cash represents good faith deposit held at clearing broker as set forth by the clearing agreement enter into by the by the Company and its clearing broker. The Company has assessed the financial viability of the clearing broker and believes that the deposit is fairly stated and the risk of loss on the deposit is not significant.
{10}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2022
#### NOTE 2 - Summary of Significant Accounting Policies (cont.)
#### Revenue Recognition
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Revenue Recognition), which outlines a single comprehensive model for entities to use in accounting from contracts with customers. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU defines the promised good or service as the performance obligation under the contract.
In accordance with the new revenue recognition standard, the specific performance obligation (promised services) associated with the customer and has determined when that specific performance obligation has been satisfied, which may be at a point in time or over time depending on how the performance obligation is defined. The contracts with customers also contain the transaction price, which consists of fixed consideration and/or consideration that may vary (variable consideration) and is defined as the amount of consideration an entity expects to be entitled to when or as the performance obligation is satisfied.
The new revenue recognition standard further clarified the guidance related to reporting revenue gross as principal versus net as an agent. The Company acts as an agent in the majority of the revenue generating transactions with its customers.
#### Commissions
Commission income is recognized when the customer has agreed with the Company on the security to be transacted and the amount of commission to be charged, the service has been rendered, at which point there are no outstanding performance obligations due to the customer, and the Company is assured that its commission fee will be received. Brokerage commissions are derived from executing transactions for clients on exchanges and over-the-counter markets, providing brokerage services and other such activities. Transactions in securities, including the related commission revenues and expenses, are recorded on a trade-date basis as securities transactions occur.
#### Trading Income
The Company's trading income consists of realized gains and losses from trading equity securities.
#### Income Taxes
Income taxes are accounted for under Accounting Standards Codification ("ASC") 740, Income Taxes, ("ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax assets and liabilities are measured using enacted to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment that it is more likely than not that deferred tax assets will not be recognized, a valuation allowance would be established to offset their benefit. The Company adopted this policy for the current year. The Company has a Net Operating Loss Carryover in the amount of \$162,132. The Company recorded deferred taxes on unrealized gains on securities net of the Net Operating Loss.
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{13}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2022
\$87,752. A discount rate of 6.0% was used when measuring the Operating lease right of use asset and the Operating lease liability at initial application of the new accounting standard on December 1, 2019.
In addition, the company rents space from a related party at the amount of \$1,500 per month as an alternate location for record safekeeping. This lease is cancelable at the owner's discretion.
The Company has been leasing office space under an operating lease since 2003. The most recent renewal was signed in 2022 and extended the lease to the end of September 2023. During the year ended September 30, 2022, occupancy costs were \$120,967.
A reconciliation of operating lease liabilities by minimum lease payments and discount amount by year. Maturities of lease liability payments are as follows:
September 30, 2022 \$ 87,752
#### NOTE 7 - Pension Plan
The Company has a qualified. self-directed, defined contribution pension employees. For the year ended September 30, 2022, the Company contributed \$20,830 to the plan, an amount equal to 25% of each participant's compensation for the period October 1, 2021 through September 30, 2022. In addition, the company reimburses its staff for medical expenses as bills are submitted. There is no written plan for this reimbursement.
#### NOTE 8 - Regulatory Requirements
The Company is subject to the Securities and Exchange Commission ("SEC") Net Capital Rule (Rule 15c3-1), which requires broker dealers to minimum maintain net capital. The ratio of aggregate indebtedness to net capital shall not exceed 15 to 1 for ongoing concerns. The Rule requires that the Company maintain "net capital" equal to the greater of \$5.000 or 6 2/3% of "aggregate indebtedness", as those terms are defined in the Rule. As of September 30, 2022, the Company had a net capital of \$1,380,507 which was \$1,371,635 in excess of its required net capital of \$8,872. The Company's net capital ratio was 0.0964 to 1.
The Company is exempt for the provision of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to Paragraph (k)(2)(ii). As an introducing broker, the Company clears customer transactions on a fully disclosed basis and promptly transmits all customer funds and securities to the clearing broker carries all of the accounts of such customers and maintains and preserves such books and records.
#### NOTE 9 - Related party transactions
The Company rents property from year to year from a firm owned by an executive officer and shareholder of the Company, for the purpose of record retention and data security. For the year ended September 30, 2022, such rental payments aggregated \$18,000 and are included in operations.
### NOTE 10 - Subsequent Events
In preparing the accompanying financial statements, the Company evaluates subsequent events that have occurred after the balance sheet date of September 30, 2022 and up through November 29, 2022, which is the date that these financial statements are available to be issued. There are two types of subsequent events: (i) recognized, or those that provide additional evidence with respect to conditions that existed at the balance sheet, including the estimates inherent in the process of preparing financial statements, and (ii) non-recognized, or those that provide evidence with respect to conditions that did not exist at the balance sheet but arose subsequent to that date.
{14}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2022
On October 3, 2022, the Company sold 500 shares of the CBOE stocks, receiving \$58,551.65 of net proceeds.
#### NOTE 11 - Corona virus disclosure
Since December 31, 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of nonessential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions. The Company has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended September 30. 2022 have not been adjusted to reflect their impact. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods.
{15}------------------------------------------------
# SUPPLEMENTARY INFORMATION
{16}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. COMPUTATION OF NET CAPITAL AS OF SEPTEMBER 30, 2022
#### Computation of Net Capital:
| Total Ownership Equity | \$ 1,922,347 |
|-----------------------------------------------------------------------------------------------------------|----------------|
| Add: Other Allowable Credits | |
| | 1,922,347 |
| Less: Non-allowable assets | 1,308 |
| Tentative Net Capital | 1,921,039 |
| Less: Haircuts on Securities | 287,660 |
| Less: Undue Concentration on Securities | 252,872 |
| | 540,532 |
| Net Capital | \$ 1,380,507 |
| Computation of Basic Net Capital Requirement | |
| Minimum Net Capital Required - | |
| (6 2/3% Aggregate Indebtedness) | \$ 8,872 |
| Minimum Dollar Net Capital | 5,000 |
| Net Capital Requirement | 8,872 |
| Net Capital | \$ 1,380,507 |
| Excess Net Capital | \$ 1,371,635 |
| Computation of Aggregate Indebtedness | |
| Aggregate Indebtedness | |
| - - Accounts payable and accrued liabilities | \$ 126,518 |
| - Lease obligation in excess of Right of use asset | 6,565 |
| Deferred taxes payable
- | |
| | 133,083 |
| Liabilities Excluded from Aggregate Indebtedness:
Lease obligation to the extent of Right of use asset | 81,187 |
| Total Liabilities | \$ 214,270 |
| Ratio of Aggregate Indebtedness to Net Capital | \$ 0.0964 to 1 |
{17}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. RECONCILIATION OF NET CAPITAL AS OF SEPTEMBER 30, 2022
# Statement pursuant to Rule 17a-5(d)(4)
The Company amended its computation of net capital included in Part IIA of Form X-17A-5 as of September 30, 2022, as follows:
| Net Capital per original FOCUS report | \$ 1,357,323 |
|---------------------------------------------------------|--------------|
| Adjustment for allowable assets | 4.051 |
| Adjustment to right of use assets and lease obligations | (12,065) |
| Adjustment to haircuts | 2,382 |
| Adjustment to undue concentration on securities | 28.816 |
| | |
| Net Capital per Amended Focus | \$ 1,380,507 |
See Accompanying Notes and Accountants' Report
{18}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. OTHER INFORMATION YEAR ENDED SEPTEMBER 30, 2022
# Computation for Determination of the Reserve Requirements:
The Company operates under the exemptive provisions of paragraph (k)(2)(ii) of SEC Rule 15M-3.
## Information Relating to Possession or Control Requirements:
The Company is subject to the exemptive provisions of paragraph (k)(2)(i) of SEC Rule 15c3-3 and did not maintain possession or control of any customer funds or securities as of September 30, 2022.
{19}------------------------------------------------
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES
To the Board of Directors and Shareholder of U.S. Securities International Corp.
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 (SIPC) Series 600 Rules, which are enumerated below and were agreed to by U.S. Securities International Corp. and the SIPC, solely to assist you and SIPC in evaluating U.S. Securities International Corp.'s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended September 30, 2022. U.S. Securities International Corp.'s management is responsible for its Form SIPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation 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 September 30, 2022, with the Total Revenue amount reported in Form SIPC-7 for the year ended September 30, 2022, noting a \$22,255 difference.
- 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting a \$49,725 difference in commissions, floor brokerage and clearance paid to other SIPC members in connections with securities transactions, a \$61,466 difference in deduction of net gain from securities in investment accounts, and a \$15,480 difference in dividends deduction.
- 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; however, there are in accounts mentioned above; and
- 5) Compared the amount of any overpayment, if any, applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting a \$7 difference.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on U.S. Securities International Corp.'s compliance with the applicable instructions of the Form SIPC-7 for the year ended U.S. Securities International Corp. 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.
This report is intended solely for the information and use of U.S. Securities International Corp. and is not intended to be and should not be used by anyone other than these specified parties
WWC,P.C
WWC, P.C. We have served as U.S. Securities International Corp.'s auditor since 2021.
San Mateo, CA November 29, 2022
{20}------------------------------------------------
# U.S. SECURITIES INTERNATIONAL CORP. SCHEDULE OF ASSESSMENT AND PAYMENTS TO THE SECURITIES INVESTOR PROTECTION CORPORATION FOR THE YEAR ENDED SEPTEMBER 30, 2022
| Revenue | | |
|---------------------------------------------------------------------------|------|---------|
| Commissions | ಕಾ | 365,089 |
| Interest and dividend income | | 35.438 |
| Trading profits, net | | 184,574 |
| Other income | | 6,700 |
| Total revenue (FOCUS Line 12/Part IIA Line 9) | | 591,801 |
| Deductions | | |
| Commissions, floor brokerage and clearance paid to other SIPC members | | |
| in connections with securities transactions | | 140,225 |
| Net gain from securities in investment accounts | | 184.574 |
| Other revenue not related either directly or indirectly to the securities | | 35,438 |
| business: Dividends | | |
| Total deductions | | 360,237 |
| SIPC net operating revenues | ಲ್ಲಿ | 231,564 |
| | | |
| SIPC general assessment at .0015 | ಲ್ಲಿ | 347 |
| Less: payments | | 340 |
| Assessment balance due (overpayment) | S | 7 |
{21}------------------------------------------------
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{22}------------------------------------------------
## U.S. SECURITIES INTERNATIONAL CORP. 120 BROADWAY, SUITE 1017 NEW YORK, NY 10271
SEC Rule 15c3-3(k) Exemption Report For the year ended September 30, 2022
U.S. Securities International Corp. (the "Company") is a registered broker-dealer subject to Rule U.S. Securities miernational corp. (and Exchange Commission (17 C.F.R §240.17a-5, "Reports 172-5 promulgated by the securities and dicality of this Exemption Report was prepared as required to be made by certain brokers and deaters Jr. The best of its knowledge and belief, the Company states the following:
- 1. The Company claimed an exemption an exemption from 17 C.F.R. § 240.15c3-3 under the provisions of subsection (k)(2)(ii).
- 2. The Company met the requirements of this exemption throughout the most The Company met the requirements of and the on and September 30, 2022 without exception.
U.S. Securities International Corp.
I, William Coppa, affirm that, to the best of my knowledge and belief, that this Exemption Report is true and correct.
By:
William Coppa
Secretary - Treasurer Title: Dated: November 29, 2022
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.