# HAROLD H. OSHIMA X-17A-5 (2024-03-18) — Broker-dealer annual report - Company: HAROLD H. OSHIMA - Form: X-17A-5 - Filed: 2024-03-18 - Period: 2023-12-31 - Accession: 0000700368-24-000002 - CIK: 700368 - File #: 8-27123 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company - Auditor location: Maitland, FL - Contact: Harold H. Oshima - Phone: 6175231527 - Email: pam@ohabco.com - Website: harvard.edu - Signed by: HAROLD H OSHIMA (Principal) Original filing: https://www.sec.gov/Archives/edgar/data/700368/000070036824000002/Oshima2023Full.pdf --- {0}------------------------------------------------ | | | 0MB APPROVAL | |--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | 0MB Number: 3235-0123
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12 | | ANNUAL REPORTS | | SEC FILE NUMBER | | FORM X-17A-5 | | 8-27123 | | PART Ill | | | | | | | | | | | | | | | | MM/DD/VY | | MM/DD/VY | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | □ Security-based swap dealer | | | | | | | | | | | | 21 Merchants Row, Floor 5 | | | | (No. and Street) | | | | MA | | 02109 | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | oshima@post.~Cly'1Q"~.2Ju | | | (Area Code - Telephone Number) | | (Email Address) | | | | | | | | | | | | | | | | | | | | 32751 | | | | | | | | (Zip Code) | | | | (PCAOB Registration Number, if applicable) | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | UNITED STATES
FACING PAGE
FILING FOR THE PERIOD BEGINNING O 1/01/2023
NAME oF FIRM: Oshima & Associates
□ Check here if respondent is also an OTC derivatives dealer
6175231527
Ohab and Company, PA
Maitland
(City)
(Date of Registration with PCAOB)(if applicable) | SECURITIES AND EXCHANGE COMMISSION
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
AND ENDING 12/31/2023
□ Major security-based swap participant
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
FL
(State)
1839
• Claims for exemption from the requirement that the annual reports be covered by the 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-S(e)(l)(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 0MB control number. {1}------------------------------------------------ ## **OATH OR AFFIRMATION** I, {A\_ s~ear (or a irm) th~t, o the best of my knowledge and belief, the finanfi~I report pertc:Jining to the firm of -+-~-\_,-,. as of JVlO[CV\ I fi>-+11 , 2~ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. 9/M,MlY.f~a Notary Public # **This filing\*\* contains (check all applicable boxes):** - **!ii!** (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - I!!! (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. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - ~ (g) Notes to consolidated financial statements. - I!!! (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.lBa-2. - I!!! U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - I!!! (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - I!!! (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - I!!! (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 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. - I!!! (s) Exemption report in accordance with 17 CFR 240.17a-S 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 report or 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-le or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or 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 certain portions of this filing, see 17 CFR 240.17a-S(e)(3) or 17 CFR 240.18a-7(d){2), as applicable. {2}------------------------------------------------ FINANCIAL STATEMENT DECEMBER 31, 2023 {3}------------------------------------------------ # **OSHIMA** & **ASSOCIATES (A PROPRIETORSHIP) FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023** # **TABLE OF CONTENTS** | Report of Independent Registered Public Accounting Firm | 1 | |------------------------------------------------------------------------------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Statement of Operations | 3 | | Statement of Changes in Owner's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6-9 | | Supplemental Information | | | Schedule I -
Computation and Reconciliation of Net Capital under Rule 15c3-1
of the Securities and Exchange Commission | 10 | | Computation of Aggregate Indebtedness Under Rule 17a-5
Schedule II -
of the Securities and Exchange Commission | 11 | | Schedule Ill -
Information Relating to Exemptive Provision Requirements
under SEC Rule 15c3-3 | 12 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) I 00 E. Sybelia Ave. Suite 130 Maitland, FL 3275 1 *Certified Public Accountants* Email: pam@ohabco.com Telephone 407-740-7311 Fax 407-740-6441 # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Owner of Oshima & Associates #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Oshima & Associates as of December 31, 2023, the related statements of operations, changes in owner'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 financial statements present fairly, in all material respects, the financial position of Oshima & Associates as of December 31, 2023, 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 Oshima & Associates' management. Our responsibility is to express an opinion on Oshima & Associates' 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 Oshima & Associates in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The Schedules I, II and Ill have been subjected to audit procedures performed in conjunction with the audit of Oshima & Associates' financial statements. The supplemental information is the responsibility of Oshima & Associates' 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. §240.1 ?a-5. In our opinion, the Schedules I, II and Ill are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Oshima & Associates' auditor since 2009. Maitland, Florida March 13, 2024 {5}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** #### **ASSETS** #### **Assets:** | Cash and cash equivalents | \$
552 | |------------------------------------------|--------------| | Commissions Receivable | 4,573 | | Prepaid expenses | 776 | | Marketable securities available for sale | 4,144 | | | \$
10,045 | | LIABILITIES AND OWNER'S EQUITY | | | Liabilities: | | | Accounts payable and accrued liabilities | \$
745 | | | 745 | | Owner's equity: | | | Accumulated Comprehensive Income | 756 | | Owner's equity | 8,545 | | | 9,301 | | | \$
10,046 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ # **STATEMENT OF OPERATIONS** FOR THE **YEAR ENDED DECEMBER 31, 2023** | Revenues: | | |-------------------------------------------------------------|------------------------| | Commissions
Mutual Fund and 12b-1's
Professional Fees | \$
131A99
48,848 | | Total revenues | 180,347 | | Expenses: | | | Compensation and employee benefit | 49,026 | | Occupancy | 60,000 | | Professional fees | 5,940 | | Telephone and communications | 6,141 | | Other operating expenses | 12,140 | | Total expenses | 133,247 | | Net Income | 47,100 | | Comprehensive Gain | | | Gain (Loss} on Securities | 612 | | Comprehensive Income | \$
47,712 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # STATEMENT OF CHANGES IN OWNER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2023 | | Owner's
Equity | | Accumulated
Comprehensive
Income | | Total
Income | | |-----------------------------|-------------------|----------|----------------------------------------|-----|-----------------|-----------| | Balances, January 1, 2023 | \$ | 10,668 | | 144 | | \$ 10,812 | | Net income | | 47,100 | | | | 47,100 | | Gain on Securities | | | | 612 | | 612 | | Distributions to owner | | (49,223) | | | | (49,223) | | Balances, December 31, 2023 | \$ | 8,545 | \$ | 756 | \$ | 9,301 | The accompanying notes are an integral part of these financial statements {8}------------------------------------------------ # **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023** #### **Cash flows from operating activities:** | Net income | \$
47,100 | |--------------------------------------------|--------------| | Adjustments to reconcile net income to net | | | cash flows from operating activities: | | | (Increase) decrease in: | | | Accounts receivable | 2,124 | | Prepaid expenses | (20) | | Increase (decrease) in: | | | Accounts payable and accrued liabilities | (14) | | Net cash provided by operating activities | 49,190 | | Cash flows from financing activities: | | |------------------------------------------------------|-----------| | Owner distributions | (49,223) | | Net cash used in financing activities | (49,223) | | Net increase (decrease) in cash and cash equivalents | (33) | | Cash and cash equivalents at beginning of period | 585 | | Cash and cash equivalents at end of period | \$
552 | | Supplemental Disclosure | | | Cash paid for interest | 0 | | Cash paid for tax | 0 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023** # **Note 1** - **Summary of Significant Accounting Policies** #### Nature of Business Oshima & Associates (the "Company") is a proprietorship of Harold Oshima, and is registered with the Securities Exchange Commission ("SEC"), a member of the Financial Industry Regulatory Authority ("FINRA"), and a member of the Securities Investor Protection Corporation ("SIPC"). The Company's brokerage activity is transacted on a fully disclosed basis through a clearing broker. As is typical in the industry, the Company engages in activities with various financial institutions and brokers. In the event these counter parties do not fulfill their obligations, the Company may be exposed to risks. # Revenue Recognition Revenue from contracts with customers includes commission income and distribution fees from mutual fund companies. 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; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. The company buys and sells 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 clearing 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 or purchaser is identified, the pricing is agree upon and the risks and rewards of ownership of the securities have been transferred to/from the customer. The Company enters into arrangements with managed accounts or other 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 believes that its performance obligation is the sale of securities to investors and as such this is fulfilled on 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 investor 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 investor activities are known, which are usually monthly or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. Professional fees are charges for tax preparation services and are recognized when all performance obligations are satisfied. #### Cash and Cash Equivalents For purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash balances in excess of FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. At December 31, 2023, the Company had no uninsured cash balances. {10}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023** ## Property and equipment Property and equipment are recorded at cost. Repair and maintenance costs are charged to operations as incurred. When assets are retired or disposed of, the cost and acc:umulated depreciation are removed from the accounts, and any gains or losses are included in operations. Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives of the related assets. Depreciation for the year ended December 31, 2023 is \$0. # Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Income Taxes As a proprietorship, all income of the Company is taxed to Harold Oshima. Therefore, no provision is shown for federal or state income taxes in the financial statements. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary. The Company is generally not subject to U.S. federal, state or local income tax examinations related to the Company's activities for tax years before 2014. #### Marketable Securities Marketable securities are classified as available-for-sale and, accordingly, are reported at fair value with the unrealized gains or losses on these securities included in gain or loss on securities. # **Note 2- Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule15c3-1), which requires the maintenance of minimum net capital at amounts equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness and requires that the ratio of aggregate indebtedness to net capital not to exceed 15 to 1. At December 31, 2023, the Company had excess net capital of \$1,867 and a net capital ratio of 10.85% to 1. #### **Note 3** - **Fair Value Measurements** In determining fair value, the Company uses various valuation approaches. In accordance with GAAP, a fair v~tue hierarchy for inputs is used in measuring fair value that maximizes the observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's assumptions about the {11}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023** inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstance. The fair value hierarchy is categorized into three levels based on inputs as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable, such as quoted prices for similar instruments in active markets, or quoted prices for identical or similar instruments in inactive markets. Level 3-Inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from techniques in which one or more significant value drivers are observable. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. The following table summarizes the basis used to measure the fair value of securities on a recurring basis in the Company's statement of financial condition as of December 31, 2023: | | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Significant Other
Observable Inputs
(Level 2) | Significant
Unobservable
Inputs
(Level 3) | Collateral | Balance as of
December 31
2019 | |--------------------------|-------------------------------------------------------------------------|-----------------------------------------------------|----------------------------------------------------|------------|--------------------------------------| | Securities owned, at FMV | | | | | | | Money Market | | | | | | | Options and Futures | | | | | | | Corporate Bonds | | | | | | | Equity Securities | | | | | | | Mutual Funds | 4,144 | | | | | | | 4,144 | 0 | 0 | 0 | 4,144 | The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: {12}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023** # Securities owned For securities, the fair value approximates quoted prices in active markets for identical assets. # **Note 4** - **Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk** The Company's customer securities activities are transacted on either a cash or margin basis. In margin transactions, the Company's Clearing Broker extends credit to the customer, subject to various regulatory and internal margin requirements, collateralized by cash and securities in the customer's account. As a result of guaranteeing customer margin balances carried by the Clearing Broker, the Company may be exposed to offbalance sheet risk in the event margin requirements are not sufficient to fully cover losses the customer may incur. At December 31, 2023, there were no margin accounts guaranteed by the Company. The Company is also exposed to off-balance sheet risk of loss on transactions during the period from the trade date to the settlement date, which is generally three business days. If the customer fails to satisfy its contractual obligations to the Clearing Broker, the Company may have to purchase or sell financial instruments at prevailing market prices in order to fulfill the customer's obligations. Settlement of these transactions is not expected to have a material effect on the Company's financial position. The Company seeks to control the risks associated with its customer activities by requiring customers to maintain margin collateral in compliance with various regulatory and the Clearing Broker's guidelines. The Company monitors required margin levels daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or to reduce positions, when necessary. The Company maintains cash and other deposits with banks and brokers, and, at times, such deposits exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality financial institutions. # **Note 5** - **Commitments and Contingencies** The Company does not have any commitments or contingencies # **Note 6** - **Related Party Transaction** Office space has been provided under a tenancy-at-will owned by the sole proprietor. Rent charged for the year was \$60,000 plus special assessments and utilities and was paid directly to building owner. # **Note 7** - **Subsequent Events** In accordance with the Subsequent Events Topic of the FASB Accounting Standards Codification No. 855 ("FASS ASC 855"), the Company has evaluated those events and transactions that occurred through the date the financial statements were available to be issued. No material events or transactions have occurred during this period which would render these financial statements to be misleading. # Credit Losses The Company follows ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer). The Company had accounts receivable as of December 31, 2022 and 2023 of \$6,697 and \$4,573 respectively. {13}------------------------------------------------ #### **SCHEDULE** I **OSHIMA** & **ASSOCIATES (A PROPRIETORSHIP) COMPUTATION AND RECONCILIATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023** | Computation of basic net capital requirements: | | | |----------------------------------------------------------------------------------------------------------|----|----------------| | Total Proprietor's equity qualified for net capital | \$ | 9,300 | | Deductions:
Non-allowable assets | | | | Prepaid expenses | | 776 | | Total non-allowable assets | | 776 | | Net capital before haircuts and securities positions | | 8,524 | | Haircuts:
Securities positions | | 1,657 | | Net capital | | 6 867 | | Minimum net capital requirements:
6 2/3% of total aggregate indebtedness (\$759) | | 50 | | Minimum dollar net capital for this broker-dealer
(\$5,000) | | 5,000 | | Net capital requirement (greater of above two requirements)
Net capital in excess of required minimum | \$ | 5,000
1,867 | There are no material differences between the preceding computation and the company's corresponding unaudited Part IIA of Form X-17A-5 as of December 31, 2023. {14}------------------------------------------------ #### SCHEDULE II OSHIMA & ASSOCIATES (A PROPRIETORSHIP) **COMPUTATION OF AGGREGATE INDEBTEDNESS UNDER RULE 17a-5 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023** #### **Total aggregate indebtedness:** | Accounts payable and accrued liabilities | \$
745 | |---------------------------------------------------|-----------| | Aggregate indebtedness | \$
745 | | Ratio of aggregate indebtedness
to net capital | 10.85% | {15}------------------------------------------------ #### **SCHEDULE** Ill **OSHIMA** & **ASSOCIATES (A PROPRIETORSHIP) INFORMATION RELATING TO EXEMPTIVE PROVISION REQUIREMENTS UNDER SEC RULE 15c3-3 AS OF DECEMBER 31, 2023** With respect to the Computation for Determination of Reserve Requirements under Rule 15c3-3, the Company qualifies for exemption under subparagraph (k) (2) (ii) of the Rule. With respect to the Information Relating to Possession and Control Requirements under Rule 15c3-3, the Company qualifies for exemption under subparagraph (k) (2) (ii) of the Rule. {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) I 00 E. Sybelia Ave. Suite I 30 Maitland, FL 3275 1 Certified Public Acco11111ants Email: pam@ohabco.com Telephone 407-740-731 1 Fax 407-740-644 1 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Owner of Oshima & Associates We have reviewed management's statements, included in the accompanying Exemption, in which (1) Oshima & Associates identified the following provision(s) of 17 C.F.R. §15c3-3(k) under which Oshima & Associates claimed the following exemption(s) from 17 C.F .R. §240.15c3-3: (k)(2)(ii) and (2) Oshima & Associates stated that Oshima & Associates met the identified exemption provisions throughout the most recent fiscal year without exception. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to direct application way business with mutual fund companies. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Oshima & Associates' management is responsible for compliance with the provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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 Oshima & Associates' 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(s) (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Maitland, Florida March 13, 2024 {17}------------------------------------------------ ## **Oshima** & **Associates** **Investment Management** 2 1 Merchants Row Suite 5 Boston, Massachusetts 02109 Tel: 6 17.523. 1527 Fax: 617.367.0908 oshima@post.harvard.edu Member: FINRA, SIPC #### Exemption Letter Oshima & Assoc iates (the "Company") is a registered broker-dealer subject to Rule I 7a-5 promulgated by the Securities and Exchange Commission ( 17 C.F.R. §240. I 7a- 5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.1 7a-S(d)(I) and (4). To the best of its knowledge and belief, the Company states the following: - ( 1) The Company claimed an exemption from 17 C.F.R. § 240. 1 Sc}-3 under the following provisions of 17 C.F.R. §240. 1 Sc}-3 (k)(2)(ii). - (2) The Company met the identi fied exemption provisions in 17 C.F.R.§240. 1 Sc}-3 (k) throughout the most recent fiscal year without exception. - (3) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 are limited to direct application way business with mutual fund companies, and the Company (I) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, ( other than money or other consideration received and promptly transmitted in comp I iance with paragraph (a) or (b)(2) of Rule I 5c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and - (4) did not carry PAB accounts (as defined in Rule I Sc}-3) throughout the most recent fiscal year without exception. Oshima & Associates I, Harold H. Oshima, affirm that, to the best of my knowledge and belief, this ::•mption **ReportW -r-ec\_t\_.** \_\_ 30 January, 2024 Title: Principal • Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.