# CENTENNIAL SECURITIES COMPANY, INC. X-17A-5 (2026-03-18) — Broker-dealer annual report - Company: CENTENNIAL SECURITIES COMPANY, INC. - Form: X-17A-5 - Filed: 2026-03-18 - Period: 2025-12-31 - Accession: 0000277900-26-000003 - CIK: 277900 - File #: 8-23406 - Type: Broker-dealer - Material weakness: Yes - Auditor: Lumsden McCormick CPA - Auditor location: Buffalo, NY - Contact: Jordan Powers - Phone: 616-988-5111 - Email: jordan@centennialsec.com - Website: centennialsec.com - Signed by: Jordan Powers (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/277900/000027790026000003/centennialfinancials.pdf --- {0}------------------------------------------------ ## **CENTENNIAL SECURITIES COMPANY, INC.** #### **FINANCIAL STATEMENTS** #### **YEAR ENDED DECEMBER 31, 2025** {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART** Ill | SEC FILE NUMBER | | |-----------------|--| | | | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **O 1 /Q 1 /2025** AND ENDING 12131 f 2025 MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Centennial Securities Company, Inc. TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer D Security-based swap dealer □ Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 3075 Charlevoix Dr. SE | | (No. and Street) | | | | |--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|---------------------------------------------|--| | Grand Rapids | Ml | | 49546 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Jordan T. Powers | 616-942-7680 | | jordan@centennialsec.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | Lumsden & McCormick, LLP
Cyclorama Bldg. 369 Franklin St. | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
Buffalo | NY | 14202 | | | (Address) | (City) | (State) | (Zip Code) | | | r••
of Registof
Independent Registered Public Accounting Firm | 1 | | Financial Statements: | | | Statement of Financial Condition | 3 | | Statement of Income | 5 | | Statement of Changes in Stockholders' Equity | 6 | | Statement of Cash Flows | 7 | | Notes to Financial Statements | 8 | | Supplementary
Information: | | | Schedule I –
Computation of Net Capital Under Rule 15c3-1 of the
Securities and Exchange Commission | 19 | | Schedule II –
Computation for
Determination of Reserve Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | 20 | | Schedule III –
Information for Possession or Control Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | 20 | | Report of Independent Registered Public Accounting Firm
on Applying Agreed-Upon Procedures | 21 | | Form SIPC-7 | 23 | | Schedule of Assessments and Payments per Form SIPC-7 | 25 | | Report of Independent Registered Public Accounting Firm –
Exemption
Report Exchange Act Rule 15c3-3 | 26 | | Exemption Report Exchange Act Rule 15c3-3 | 27 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) CERTIFIED PUBLIC ACCOUNTANTS p: 716.856.3300 I f: 716.856.2524 I www.LumsdenCPA.com ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** The Board of Directors Centennial Securities Company, Inc. #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Centennial Securities Company, Inc. (the Company) as of December 31, 2025, and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended that are filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934, and the related notes to the financial statements and supplemental information (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial condition of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. {5}------------------------------------------------ ocedures to assess the risks of material misstatement of the Our audit included performing pr ming procedures that respond to those financial statements, whether due to error or fraud, and perfor dence regarding the amounts and risks. Such procedures included examining, on a test basis, evi d evaluating the accounting principles disclosures in the financial statements. Our audit also include used and significant estimates made by management, as well as evaluating the overall financial or our opinion. asonable basis f ve that our audit provides a re statement presentation. We belie ## **Supplementary Information** table of contents has been The accompanying supplementary information as presented in the audit of the Company's erformed in conjunction with the subjected to audit procedures p onsibility of the Company's financial statements. The supplementary information is the resp he supplementary information included determining whether t management. Our audit procedures ting and other records, as reconciles to the financial statements or the underlying accoun and accuracy of the information ures to test the completeness applicable, and performing proced ion on the supplementary formation. In forming our opin presented in the supplementary in , including its form and r the supplementary information information, we evaluated whethe rities Exchange Act of 1934. In content, is presented in conformity with Rule 17a-5 of the Secu all material respects, in relation to formation is fairly stated, in our opinion, the supplementary in the financial statements as a whole. *nr~?J;* We have served as the Company's auditor since 2019. February 26, 2026 {6}------------------------------------------------ # **DECEMBER 31, 2025 CENTENNIAL SECURITIES COMPANY, INC. STATEMENT OF FINANCIAL CONDITION** #### **ASSETS** | CURRENT: | | |-------------------------------------|-----------------| | Cash | \$
2,394,591 | | Investments | 1,490,174 | | Receivables: | | | Commissions and clearing | 267,912 | | Employee | 100,000 | | Prepaid expenses | 134,740 | | TOTAL CURRENT ASSETS | 4,387,417 | | PROPERTY AND EQUIPMENT: | | | Leasehold improvements | 100,556 | | Furniture | 550,804 | | | 651,360 | | Less accumulated depreciation | (608,818) | | NET PROPERTY AND EQUIPMENT | 42,542 | | OTHER ASSETS: | | | Right-of-use assets - office leases | 160,807 | | Deposit with clearing organization | 50,000 | | TOTAL OTHER ASSETS | 210,807 | | | \$
4,640,766 | {7}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 CENTENNIAL SECURITIES COMPANY, INC.** ### **LIABILITIES AND STOCKHOLDERS' EQUITY** | CURRENT LIABILITIES: | | |------------------------------------------------------|-----------------| | Accounts payable | \$
461,435 | | Commissions payable | 449,483 | | Accrued taxes | 68,081 | | Deferred revenue - current | 218,750 | | Lease liability - current | 158,252 | | Other accrued expenses | 12,624 | | TOTAL CURRENT LIABILITIES | 1,368,625 | | NON-CURRENT LIABILITIES | | | Deferred revenue, net of current | 319,129 | | Lease liability, net of current | 2,555 | | Deferred income tax | 59,800 | | TOTAL NON-CURRENT LIABILITIES | 381,484 | | TOTAL LIABILITIES | 1,750,109 | | STOCKHOLDERS' EQUITY: | | | Common stock - \$0.10 par, 50,000 shares authorized; | | | 3,532 issued and outstanding | 353 | | Additional paid-in capital | 299,660 | | Retained earnings | 2,590,644 | | TOTAL STOCKHOLDERS' EQUITY | 2,890,657 | | | \$
4,640,766 | {8}------------------------------------------------ ## **STATEMENT OF INCOME CENTENNIAL SECURITIES COMPANY, INC. YEAR ENDED DECEMBER 31, 2025** | | Amount | |--------------------------------------------------|-----------------| | REVENUE: | | | RIA income | \$
9,677,983 | | Commissions | 908,749 | | Distribution fees (12b-1 fees) from mutual funds | 1,157,996 | | Net dealer inventory and investment gains | 586,663 | | Money market service fees | 358,531 | | Interest and dividends | 148,018 | | Realized and unrealized gain on investments | 126,813 | | Other | 333,259 | | TOTAL REVENUE | 13,298,012 | | COST OF REVENUE: | | | Advisor commissions | 7,664,938 | | NET REVENUE | 5,633,074 | | EXPENSES: | | | Administrative salaries and benefits | 2,529,796 | | Occupancy | 239,260 | | Advertising and promotion | 295,355 | | Communications | 224,378 | | Computer | 189,087 | | Clearing fees | 601,082 | | Legal and professional fees | 133,741 | | Regulatory fees | 98,582 | | Depreciation | 13,200 | | Underwriting fees | 9,250 | | Insurance | 33,374 | | Other | 108,405 | | TOTAL EXPENSE | 4,475,510 | | Income before tax | 1,157,564 | | INCOME TAX EXPENSE | 323,742 | | NET INCOME | \$
833,822 | {9}------------------------------------------------ ## **STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY CENTENNIAL SECURITIES COMPANY, INC. YEAR ENDED DECEMBER 31, 2025** | | | Additional | | | |----------------------------|-----------|---------------|--------------|-----------------| | | Common | Paid-In | Retained | | | | Stock | Capital | Earnings | Total | | BALANCE, | | | | | | at January 1, 2025 | \$
426 | \$
282,230 | \$ 2,677,373 | \$
2,960,029 | | ADD: | | | | | | Net income for the year | - | - | 833,822 | 833,822 | | Issuance of common stock | | | | | | (15 shares) | 1 | 17,430 | - | 17,431 | | DEDUCT: | | | | | | Redemption of common stock | | | | | | (743 shares) | (74) | - | (920,551) | (920,625) | | BALANCE, | | | | | | at December 31, 2025 | \$
353 | \$
299,660 | \$ 2,590,644 | \$ 2,890,657 | {10}------------------------------------------------ #### **STATEMENT OF CASH FLOWS CENTENNIAL SECURITIES COMPANY, INC. YEAR ENDED DECEMBER 31, 2025** | CASH FLOWS FROM OPERATING ACTIVITIES: | | |-------------------------------------------------------------|-----------------| | Net income | \$
833,822 | | Adjustments to reconcile net income to net cash provided by | | | operating activities: | | | Depreciation | 13,200 | | Net realized and unrealized gain on investments | (126,813) | | Changes in operating assets and liabilities: | | | Purchases of investments | (355,344) | | Proceeds from sales of investments | 115,276 | | Receivables | 145,517 | | Prepaid expenses | (25,875) | | Commissions and accounts payable | 86,809 | | Deferred revenue | (227,741) | | Accrued taxes | 10,081 | | Deferred taxes | 31,800 | | Other accrued liabilities | (46,448) | | Net cash provided by operating activities | 454,284 | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | Purchases of property and equipment | (28,146) | | Net cash used in investing activities | (28,146) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | Issuance of common stock | 17,431 | | Redemption of common stock | (920,625) | | Net cash used in financing activities | (903,194) | | NET CHANGE IN CASH * | (477,056) | | CASH * - beginning of year | 2,921,647 | | CASH * - end of year | \$
2,444,591 | | Supplemental disclosure of cash flow information: | | | Cash paid during the year for: | | | Interest | \$
2,086 | | Income taxes: | | | Federal | \$
193,777 | | Michigan | 47,600 | | Illinois | 40,484 | | | \$
281,861 | \* Including deposits with clearing organization. {11}------------------------------------------------ # **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # **Method of Accounting** The accompanying financial statements have been prepared on the accrual basis of accounting. # **Cash** Cash include cash and deposits with maturities fewer than 90 days. ## **Investments** Investments are comprised of marketable debt and equity securities which are stated at fair value. ## **Receivables** Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts, if needed, through a provision for estimated credit losses and an adjustment to an allowance based on its assessment of the current status of individual accounts and reasonable forecasts. Accounts still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance and a credit to accounts receivable. No allowance for estimated credit losses was considered necessary as of December 31, 2025. # **Revenue from Contracts with Customers** The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are 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 on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. {12}------------------------------------------------ ## **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** #### *Investment Advisory Fees (RIA Income)* The Company provides investment advisory services for various investment products on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customers' assets under management. Fees are received monthly and quarterly and are recognized as revenue to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of assets under management at various points in time as well as the length of time the customers retain the product, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the investments and the customers' activities are known, which are usually monthly or quarterly. #### *Commissions* The Company employs a clearing broker to buy and sell securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument is identified, the pricing is agreed upon, and the risks and rewards of ownership have been transferred to/from the customer. ## *Distribution Fees (12b-1 Fees) from Mutual Funds* The Company enters into arrangements with managed accounts and pooled vehicles (funds) to distribute shares to customers. The Company believes its performance obligation is the sale of securities to customers and as such is fulfilled at the trade date. Any fixed amounts are recognized on the trade date, and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the customer remains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the customer activities are known, which are usually monthly or quarterly. #### *Note 1 continued on next page* {13}------------------------------------------------ # **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** #### *Principal Transactions (Net Dealer Inventory and Investment Gains)* For instruments in the form of corporate bonds, government bonds (treasuries), municipal bonds and certificates of deposit, the Company may find a seller for a client wishing to sell or buy such instruments and will execute the transaction through inventory accounts. The Company believes its performance obligation is the purchase or sale of securities to customers, and the transaction is fulfilled on the trade date. #### **Liabilities Subordinated to Claims of General Creditors** The Company does not have any liabilities subordinated to claims of general creditors. #### **Property, Equipment and Depreciation** Property and equipment are recorded at cost. Major improvements and renewals are capitalized while maintenance and repairs generally are expensed. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Management annually reviews these assets to determine whether carrying values have been impaired. The following useful lives are used to depreciate property and equipment: | Leasehold improvements | 5-8 years | |-------------------------|-----------| | Furniture and equipment | 5 years | ## **Advertising** The Company expenses advertising costs as incurred. #### **Income Taxes** Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. *Note 1 continued on next page.* {14}------------------------------------------------ # **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** ### **Estimates** The process of preparing financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues and expenditures. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. #### **Subsequent Events** In preparing these financial statements the Company has evaluated events and transactions for potential recognition or disclosure through February 26, 2026, the date the financial statements were available to be issued. #### **New Accounting Standards** In 2025, the Company adopted Accounting Standards Update (ASU) 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, for public business entities and after December 15, 2025, for all other entities with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The adoption did not have a material impact on the Company's financial position or results of operation, but resulted in enhanced income tax disclosures. ## **NOTE 2 - NATURE OF ORGANIZATION** Centennial Securities Company, Inc. (the Company) is a securities broker-dealer and is registered with the Securities and Exchange Commission and the states of Michigan, Ohio, Indiana, Illinois, Florida, and various other states. The Company is a licensed member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). *Note 2 continued on next page.* {15}------------------------------------------------ ## **NOTE 2 - NATURE OF ORGANIZATION (CONTINUED)** The Company has entered into a membership agreement with FINRA under which it is exempt from the provisions of the Securities and Exchange Commission's Rule 15c3-3 pursuant to paragraph (k)(2)(ii). As such, the Company must clear all transactions with and for customers on a fully disclosed basis with a clearing broker or dealer and promptly transmit all customer funds and securities to the clearing broker or dealer. The Company must refrain from holding customer funds or safe-keeping customer securities. The Company introduces transactions and conducts business on a fully disclosed basis. Because the Company does not carry securities accounts for customers or perform custodial functions relating to customer securities, it operates under certain exempted regulatory provisions. Commissions and clearing organization receivables were substantially collected subsequent to year-end and are likewise considered subject to minimal risk. The Company's customers reside principally in western Michigan and northern Illinois. The chief operating decision maker is the Board of Directors who assesses performance for the business (and lone segment) and decides how to allocate resources based on net income as reported in the format consistent with the statement of income included in these financial statements. The measure of segment assets is as reported on the statement of financial condition in these financial statements. ## **NOTE 3 - CASH** Substantially all cash is on deposit with two financial institutions. At various times the Company's cash balances exceeds the Federally Insured limits. At December 31, 2025, the Company's institutional balances totaled \$2,461,903 of which \$1,961,903 was uninsured by the Federal Deposit Insurance Corporation (FDIC). #### **NOTE 4 - INVESTMENTS** Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: *Note 4 continued on next page.* {16}------------------------------------------------ #### **NOTE 4 - INVESTMENTS (CONTINUED)** - Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. - Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. - Level 3: Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following table sets forth by level, within the fair value hierarchy, the Company's investments at fair value as of December 31, 2025: | | Assets at fair value as of December 31, 2025 | | | | | | | |-----------------------------------------------------------|----------------------------------------------|------------------------------|-------------------------|-------------------|--|--|--| | Description of Investments | Total | Level 1 | Level 2 | Level 3 | | | | | Equity securities
Corporate bonds
Other investments | \$
811,569
589,958
88,647 | \$
811,569
-
88,647 | \$
-
589,958
- | \$
-
-
- | | | | | | \$1,490,174 | \$
900,216 | \$
589,958 | \$
- | | | | ## **NOTE 5 - DEPOSIT WITH CLEARING ORGANIZATION** The Company is required to maintain a collateral account with its clearing organization with a minimum market value of \$50,000. #### **NOTE 6 - RELATED PARTIES** The Company on occasion will advance commissions or cover expenses incurred by its financial advisors. Balances due from financial advisors under this arrangement were \$100,000 at December 31, 2025 and are expected to be repaid through 2026. {17}------------------------------------------------ #### **NOTE 7 - DEFERRED REVENUE** In January 2020, the Company entered into an agreement with a new brokerage firm to provide clearing and other services over an eight-year period, whereby the Company received a \$1,750,000 incentive payment as part of the agreement. Revenue from the incentive payment is recognized quarterly over the term of the agreement as service fees are incurred. The Company recognized revenue of \$273,430 during 2025 and \$492,190 of the incentive payment is included in deferred revenue in the accompanying statement of financial condition as of December 31, 2025. #### **NOTE 8 - LEASES** The Company has operating leases for office space and equipment. At inception of arrangements with vendors, the Company determines whether the contract is or contains a lease based on each party's rights and obligations under the arrangement. For leases longer than one year, a lessee recognizes in the statement of financial condition a right-of-use asset (ROU), representing the right to use the underlying asset for the lease term, and a lease liability, representing the present value of future lease payments. At inception, any new additional operating lease liabilities and corresponding ROU assets are based on the present value of the remaining minimum rental payments. If the lease arrangement also contains non-lease components, the Company elected the practical expedient not to separate any combined lease and non-lease components for all lease contracts. For office leases, the remaining fixed minimum rental payments used in the calculation of the new lease liability include fixed payments and variable payments (if the variable payments are based on an index) over the remaining lease term. The present value of the Company's lease liability was calculated using an incremental borrowing rate of 8%. In determining the incremental borrowing rate, the Company considered estimated borrowing data for similar arrangements as of the transition date. As of December 31, 2025, the Company recognized an operating ROU asset and lease liability of \$160,807. As permitted by Accounting Standards Codification (ASC) 842, leases with expected durations of less than 12 months from inception (i.e. short-term leases) were excluded from the Company's calculation of its lease liability and ROU asset. The following is a summary of the Company's total lease costs, including amounts under short-term leases, for the year ended December 31, 2025: Operating lease cost \$ 211,896 *Note 8 continued on next page.* {18}------------------------------------------------ ### **NOTE 8 - LEASES (CONTINUED)** The following is a summary of cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2025: Operating cash flows used for operating leases \$ 206,069 The following is a summary of the Company's maturity of operating lease liabilities: | 2026 | \$
164,701 | |--------------------------------------|--------------------| | 2027 | 2,600 | | Total lease payment
Less interest | 167,301
(6,494) | | Total lease liability | \$
160,807 | ### **NOTE 9 - INCOME TAXES** The Company is a C Corporation subject to federal income tax liabilities and also certain state income tax liabilities. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Federal, state, and local tax returns generally remain open for examination by the various taxing authorities for a period of three to four years. *Note 9 continued on next page.* {19}------------------------------------------------ #### **NOTE 9 - INCOME TAXES (CONTINUED)** The provision for income taxes in the statement of income for the year ended December 31, 2025 is made up of the following components: | Federal income tax: | | |---------------------|---------------| | Current | \$
209,177 | | Deferred | 23,850 | | State income tax: | | | Current | 82,765 | | Deferred | 7,950 | | TOTAL | \$
323,742 | The following table reconciles the U.S. federal statutory tax rate to the effective tax rate: | U.S. federal statutory tax rate | \$
243,088 | 21.0% | |----------------------------------------------------------------------------------------|---------------|-------| | State and local income taxes
(mainly Michigan), net of federal
income tax effect | 58,618 | 5.1% | | Nontaxable or nondeductible items: | | | | Entertainment | 11,123 | 1.0% | | Other | 10,913 | 0.9% | | | \$
323,742 | 28.0% | The deferred tax liability results primarily from the net difference in the timing of depreciation expense and investment earnings for financial reporting and tax reporting purposes. Income tax positions taken by the Company are recognized and measured under a more-likely-than-not success threshold. Management has evaluated the Company's various tax positions under this criteria for recognition, derecognition, and measurement in these financial statements. *Note 9 continued on next page.* {20}------------------------------------------------ ## **NOTE 9 - INCOME TAXES (CONTINUED)** The Company files income tax returns in U.S. federal and several state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal tax examinations for the years before 2022 and state tax examinations for the years before 2021. The Company accrues interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the year ended December 31, 2025, there was no interest or penalties relating to unrecognized tax benefits. # **NOTE 10 - REGULATORY NET CAPITAL REQUIREMENT** As a registered broker-dealer and member of FINRA, the Company is subject to the SEC Uniform Net Capital Rule 15c3-1 which requires the maintenance of minimum regulatory net capital and requires that the ratio of aggregate indebtedness to regulatory net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2025, the Company had regulatory net capital of \$2,380,614 and a minimum regulatory net capital requirement of \$105,954. The ratio of aggregate indebtedness to net capital was .67 to 1 at December 31, 2025. ## **NOTE 11 - RETIREMENT PLAN** The Company maintains a retirement plan which covers substantially all employees and is qualified under Section 401(k) of the Internal Revenue Code. The plan is a safe harbor 401(k) plan. The Company contributed approximately \$211,275 to the plan for 2025. ## **NOTE 12 - STOCK REPURCHASE AGREEMENT** The stockholders and the Company have the option to purchase any company stock offered for sale by stockholders. In the event of the death, disability, retirement, or termination of a stockholder, the Company may repurchase any company stock not purchased by the remaining stockholders. The purchase price under this provision is the amount agreed to periodically by the stockholders. For 2025, the buyback provision was 160% of net book value. {21}------------------------------------------------ ## **NOTE 13 - COMMITMENTS, GUARANTEES AND CONTINGENCIES** In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly executed transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company has never been called upon to make payments under such guarantees and believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company has never been called upon to make payments under such guarantees and believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. {22}------------------------------------------------ {23}------------------------------------------------ #### **CENTENNIAL SECURITIES COMPANY, INC. AS OF DECEMBER 31, 2025 SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION** | NET CAPITAL:
Total stockholders' equity (controlling interest only) | \$ | 2,890,656 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------| | Deductions and/or charges:
Non-allowable assets:
Commissions receivable, net of trail commissions payable
\$
70,000
Employee receivables
100,000
Property and equipment
42,542
Prepaid expenses
134,740 | | 347,282 | | Net capital before haircuts on securities positions
Haircuts on securities | | 2,543,374
162,760 | | Net capital | \$ | 2,380,614 | | Aggregate indebtedness:
Items included in statement of financial condition:
Accounts payable
Accrued taxes
Commissions payable
Accrued liabilities
Deferred revenue
Deferred income tax
Total aggregate indebtedness | \$
\$ | 461,435
68,081
449,483
12,624
537,879
59,800
1,589,302 | | Computation of basic net capital requirement:
Minimum net capital required
(Aggregate indebtedness x 6 2/3%) | \$ | 105,954 | | Minimum dollar net capital requirement | \$ | - | | Net capital requirement (greater of the two above amounts) | \$ | 105,954 | | Excess net capital | \$ | 2,274,660 | | Percent of aggregate indebtedness to net capital | | 66.76% | #### **Statement Pursuant to Rule 17a-5(d)(4)** There are no material differences between the computation of net capital contained herein and the corresponding computation prepared by the Company and included in the unaudited Part IIA Focus Report Filing as of the same date. {24}------------------------------------------------ #### **CENTENNIAL SECURITIES COMPANY, INC. SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** At December 31, 2025, the Company had no credit items that would result in a reserve requirement. #### **CENTENNIAL SECURITIES COMPANY, INC. SCHEDULE III INFORMATION FOR POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** As of December 31, 2025, the Company is exempt from rule 15c3-3 under (k)(2)(ii) because all customer transactions are cleared through another broker/dealer on a fully disclosed basis. During the year ended December 31, 2025, the Company did not hold customer funds or securities. Clearing Firm SEC # and Name 8-45411 RBC Capital Markets, LLC {25}------------------------------------------------ ![](_page_25_Picture_0.jpeg) CERTIFIED PUBLIC ACCOUNTANTS p: 716.856.3300 I f: 716.856.2524 I www.LumsdenCPA.com # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES** The Board of Directors Centennial Securities Company, 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 Centennial Securities Company, Inc. (the 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 the associated 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 amount reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2025, with the 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. {26}------------------------------------------------ edures engagement and We were engaged by the Company to perform this agreed-upon proc ds established by the AICPA conducted our engagement in accordance with attestation standar unting Oversight Board and in accordance with the standards of the Public Company Acco examination or a review ngaged to, and did not conduct an (United States). We were not e n opinion or conclusion, engagement, the objective of which would be the expression of a ce with the applicable rm SIPC-7 and for its complian respectively, on the Company's Fo instructions on Form SIPC-7 for the year ended December 31, 2025. Accordingly, we do not nal procedures, other matters express such an opinion or conclusion. Had we performed additio to you. attention that would have been reported might have come to our r other ethical responsibilities We are required to be independent of the Company and to meet ou our agreed-upon procedures in accordance with the relevant ethical requirements related to engagement. he Company and SIPC and is not This report is intended solely for the information and use of t ese specified parties. be, used by anyone other than th intended to be, and should not *nr~?J;* February 26, 2026 {27}------------------------------------------------ #### **GENERALASSESSMENTFORM** For the fiscal year ended 12/31/2025 | | Determination of "SIPC NET Operating Revenues" and General Assessment for: | | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------| | | MEMBER NAME
SECURITIES
COMPANY
INC | SEC No. | | | | CENTENNIAL | 8-23406 | | | | 2:.!~~~---
and ending
For the fiscal _ period beginning _ | 12/31/2025 | | | 1 | Total Revenue (FOCUS Report - Statement of Income (Loss)- Code 4030) | | \$13,298,012.00 | | 2 | Additions: | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | | d Interest and dividend expense deducted in determining item 1. | | | | | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | | | g Net loss from securities in investment accounts. | | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 | | 3 | Add lines 1 and 2h | | \$13,298,012.00 | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 1,667,034.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$ 601,082.00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | e Net gain from securities in investment accounts. | \$713,476.00 | | | | f 100% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | | | 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss)- Code 4075 plus line 2d above) but
\$ 2,086.00
not in excess of total interest and dividend income | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report- Statement of Income (Loss)-
\$ 615.00
Code 3960) | | | | | c Enter the greater of line 5a or 5b | \$2,086.00 | | | 6 | Add lines 4a through 4h and 5c. This is your total deductions. | | \$ 2,983,678.00 | {28}------------------------------------------------ | SIPC-7 | | |--------|------------| | | 37 REV0722 | #### SECURITIES INVESTOR PROTECTION CORPORATION #### **GENERALASSESSMENTFORM** For the fiscal year ended 12/31/2025 | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues.
Multiply line 7 by .0015. This is your General Assessment. | | | | \$ 10,314,334.00 | |-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------|-------------------------------------|------------------| | 8 | | | | | \$15,471.00 | | 9 | | Current overpayment/credit balance, if any | | | \$0.00 | | 10 | | General assessment from last filed 2025 SIPC-6 or 6A | | \$7,376.00 | | | 11 | b Any other overpayments applied
d Add lines 11a through 11c | a Overpayment(s) applied on all 2025 SIPC-6 and 6A(s)
c All payments applied for 2025 SIPC-6 and 6A(s) | \$0.00
\$ 0.00
\$7,376.00 | \$7,376.00 | | | 12 | LESSER of line 10 or 11 d. | | | | \$7,376.00 | | | 13 a Amount from line 8
b Amount from line 9
c Amount from line 12 | | | \$15,471.00
\$0.00
\$7,376.00 | \$8,095.00 | | 14 | d Subtract lines 13b and 13c from 13a. This is your assessment balance due.
Interest (see instructions) for
days late at 20% per annum
0 | | | | \$0.00 | | 15 | ~Amount you owe SIPC. Add lines 13d and 14. | | | \$8,095.001 | | | 16 | Overpayment/credit carried forward (if applicable) | | | | \$0.00 | | I | :sECNo.
18-23406 | Designated Examining Authority
DEA: FINRA | FYE
2025 | Month
Dec | | | MEMBER NAME
!
MAILING ADDRESS | | CENTENNIAL SECURITIES COMPANY INC
3075 CHARLEVOIX DR SE
GRAND RAPIDS, Ml 49546 | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) r.71 By checking this box, you certify that you have the authority of the SIPC member to sign this ~ form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy | Andrew
Klinger | |------------------------| | (Authorized Signatory) | | andy@centennialsec.com | | (e-mail address) | | | Completion of the "Authorized Signatory" line will be deemed a signature. **This form and the assessment payment are due 60 days after the end of the fiscal year.** {29}------------------------------------------------ #### **CENTENNIAL SECURITIES COMPANY, INC. SCHEDULE OF ASSESSMENTS AND PAYMENTS PER FORM SIPC-7 YEAR ENDED DECEMBER 31, 2025** | Assessment Period | Pmt Date | Reference Number | Collection Agency | | |---------------------------------------------------------------------|--------------------------|-----------------------------------|-------------------|----------------------| | January 1, 2025 - June 30, 2025
July 1, 2025 - December 31, 2025 | 07/31/2025
02/04/2026 | B2521292110629
B26035102994211 | SIPC
SIPC | \$
7,380
8,095 | | Total payments to SIPC | | | | \$
15,475 | {30}------------------------------------------------ ![](_page_30_Picture_0.jpeg) ![](_page_30_Picture_1.jpeg) CERTIFIED PUBLIC ACCOUNTANTS p: 716.856.3300 I f: 716.856.2524 I www.LumsdenCPA.com # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** The Board of Directors Centennial Securities Company, Inc. We have reviewed management's statements, included in the accompanying 2025 Exemption Report, in which (1) Centennial Securities Company, Inc. (the Company) identified the following provisions of 17 C.F.R. §240.15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240.15c3-3, provision (k)(2)(ii) and (2) Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. §240.17a-5 (together the "exemption provisions") and (2) the Company stated that it met the identified exemption provisions throughout the most recent year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5, and related SEC Staff Frequently Asked Questions. February 26, 2026 {31}------------------------------------------------ #### **Centennial Securities Company, Inc.** #### **Exemption Report** **Centennial Securities Company Inc.** (the "Firm") is a registered broker-dealer subject to Rule 17 a-5 promulgated by the Securities and Exchange Commission ( 17 C.F .R. §240. l 7a-5, "Reports to be made by ce11ain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.l 7a-5(d)(l) and (4). To the best of its knowledge and belief, the Firm states the following: - (1) The Firm claims an exemption under 17 C.F.R. § 240.l 5c3-3(k)(2)(ii); and - (2) Footnote 74 of the Securities and Exchange Commission's 2013 Release adopting amendments to Rule 17a-5.1 The Firm has met the applicable exemption provisions noted above throughout the most recent fiscal year (i.e., January 1, 2025 - December 31, 2025) without exception. I, Jordan Powers, swear ( or affirm) that, to the best knowledge and belief of the Firm, this Exemption Report is true and accurate. Centennial Securities Co ---*,)-* Jordan T Power CFO & General Counsel February 26, 2026 1*See Broker-Dealer Reports,* Securities Exchange Act Release No. 70073 (July 30, 2013), 78 FR 51909, 51915 n.74 (August 21, 2013) Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.