# COORDINATED CAPITAL SECURITIES, INC. X-17A-5 (2022-05-31) — Broker-dealer annual report
- Company: COORDINATED CAPITAL SECURITIES, INC.
- Form: X-17A-5
- Filed: 2022-05-31
- Period: 2022-03-31
- Accession: 0000737844-22-000002
- CIK: 737844
- File #: 8-31173
- Type: Broker-dealer
- Material weakness: No
- Auditor: Baker Tilly US LLP
- Auditor location: Milwaukee, WI
- Contact: Tracy Williams
- Phone: 6082214545
- Email: tracy@ccsmadison.com
- Website: ccsmadison.com
- Signed by: Mari J Buechner (President)
Original filing: https://www.sec.gov/Archives/edgar/data/737844/000073784422000002/coorcapaudit.pdf
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Madison, Wisconsin
FINANCIAL STATEMENTS
Including Report of Independent Registered Public Accounting Firm As of and for the Year Ended March 31, 2022
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#### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
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## **ANNUAL REPORTS FORM X-17 A-5 PART** Ill
**FACING PAGE**
SEC FILE NUMBER
#### **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **04/01/2021** MM/DD/VY AND ENDING **03/31/2022** MM/DD/VY **A. REGISTRANT IDENTIFICATION**
# NAME oF FIRM: Coordinated Capital Securities, Inc
TYPE OF REGISTRANT (check all applicable boxes):
~Broker-dealer D Security-based swap dealer D 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.)
## 704 River Place
| (No. and Street) | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------|----------------------------------------------|--|--|--|--|
| Madison | WI | | 53716 | | | | |
| (City) | (State) | | (Zip Code) | | | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | |
| Tracy Williams | 608-221-4545 | | tracy@ccsmadison.com | | | | |
| (Name) | (Area Code -Telephone Number) | | (Email Address) | | | | |
| | B. ACCOUNTANT IDENTIFICATION | | | | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Baker Tilly US, LLP
(Name - if individual, state last, first, and middle name) | | | | | | | |
| | 777 E Wisconsin Ave, 32nd Floor Milwaukee | WI | 53202 | | | | |
| (Address) | (City) | (State) | (Zip Code) | | | | |
| 10/22/2003 | | 23 | | | | | |
| rte of Registcatioo with PCAOB)[if applicable) | | | (PCAOB Registcatioo N"mbec, if applicable JI | | | | |
| FOR OFFICIAL USE ONLY | | | | | | | |
| | | | | | | | |
\* 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.**
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#### **OATH OR AFFIRMATION**
I, Mari J Buechner swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Coordinated Capital Securities, Inc. as of March 31 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.
Signature:
Title: President
Notary Public
#### **This filing\*\* contains (check all applicable boxes):**
- **liil** (a) Statement of financial condition.
- □ (b) Notes to consolidated statement of financial condition.
- **liil** (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).**
- **liil** (d) Statement of cash flows.
- Iii] (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.
- Iii] (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- □ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- Iii] (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- Iii] (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-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.
- Iii] (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- Iii] (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- Iii] (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-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.*
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.)
#### TABLE OF CONTENTS
| Report of Independent Registered Public Accounting Firm | | | |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--|
| | Financial Statements | | |
| | Statement of Financial Condition | 2 | |
| | Statement of Income | 3 | |
| | Statement of Stockholder's Equity | 4 | |
| | Statement of Cash Flows | 5 | |
| | Notes to Financial Statements | 6 - 10 | |
| | Supplemental Information | | |
| | Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and
Exchange Commission Capital Rule | 11 | |
| | Schedule II - Computation for Determination of Reserve Requirements Under Rule
15c3-3 (Exemption) and Information for Possession or Control Requirements Under
Rule 15c3-3 (Exemption) of the Securities and Exchange Commission | 12 | |
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## **Report of Independent Registered Public Accounting Firm**
To the Board of Directors of Coordinated Capital Securities, Inc.
#### **Opinion on the Financial Statements**
We have audited the accompanying statement of financial condition of Coordinated Capital Securities, Inc. (a wholly owned subsidiary of Coordinated Capital Holdings, Inc.) (the Company) as of March 31, 2022, the related statements of income, stockholder's equity and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 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 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. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
#### **Supplemental Information**
The Schedule I - Computation of Net Capital Under Rule 1 Sc3-1 of the Securities and Exchange Commission Capital Rule and Schedule II - Computation of Determination of Reserve Requirements Under Rule 1 Sc3-3 (Exemption) and Information for Possession or Control Requirements Under Rule 1 Sc3-3 (Exemption) of the Securities and Exchange Commission (collectively, the supplemental information), has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. § 240.17a5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2000.
Milwaukee, Wisconsin May 26, 2022
Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Lid., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.)
#### STATEMENT OF FINANCIAL CONDITION As of March 31 , 2022
#### **ASSETS**
| Cash and cash equivalents
Commissions receivable
Receivable - related party
Deposit with clearing broker dealer | \$
579,162
310,535
22,845
29,409 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| TOTAL ASSETS | \$
941 951 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| LIABILITIES
Commissions payable
Accrued expenses
Total liabilities | \$
103,149
15 214
118 363 |
| STOCKHOLDER'S EQUITY
Common stock, \$1 par value; 56,000 shares authorized;
6,000 shares issued and outstanding
Additional paid-in capital
Retained earnings
Total Stockholder's Equity | 6,000
244,476
573 112
823,588 |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$
941,951 |
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.)
#### STATEMENT OF INCOME For the Year Ended March 31, 2022
| REVENUES
Revenues
Total revenues | \$11,586,918
11,586,918 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| OPERATING EXPENSES
Commissions, other compensation and related benefits
Management fees and incentive bonuses - related party
Clearing and execution costs
Other operating expenses | 9,281,927
1,755,000
240,378
289,132 |
| Total operating expenses
INCOME BEFORE INCOME TAXES
Income tax benefit | 11,566,437
20 481
(68,881) |
| NET INCOME AFTER INCOME TAXES | \$
89,362 |
See accompanying notes to financial statements.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.)
#### STATEMENT OF STOCKHOLDER'S EQUITY For the Year Ended March 31, 2022
| | Common
Stock | | Additional
Paid-in
Capital | | Retained
Earnings | | Total
Stockholder's
Equity | |
|--------------------------|-----------------|-------|----------------------------------|---------|----------------------|---------|----------------------------------|---------|
| BALANCES, April 1, 2021 | \$ | 6,000 | \$ | 244,476 | \$ | 483,750 | \$ | 734,226 |
| Net Income | | | | | | 89,362 | | 89,362 |
| BALANCES, March 31, 2022 | \$ | 6 000 | \$ | 244 476 | \$ | 573 112 | \$ | 823 588 |
See accompanying notes to financial statements.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.)
## STATEMENT OF CASH FLOWS
For the Year Ended March 31, 2022
| CASH FLOWS FROM OPERATING ACTIVITIES | |
|-----------------------------------------------------------------------------------------------------------------------------------|---------------|
| Net Income | \$
89,362 |
| Adjustments to reconcile net income to net cash flows used in operating activities
Changes in operating assets and liabilities | |
| Commissions receivable and deposit with clearing broker dealer | 11,609 |
| SEC Fair Fund distributions | 55,218 |
| Receivable - related party | (22,845) |
| Commissions payable | (72,986) |
| Accrued expenses | (121,851} |
| Net cash flows used in operating activities | (61,493) |
| Net Change in Cash and Cash Equivalents | (61,493) |
| CASH AND CASH EQUIVALENTS - Beginning of Year | 640,655 |
| CASH AND CASH EQUIVALENTS - END OF YEAR | \$
579 162 |
| SUPPLEMENTAL CASH FLOW ACTIVITY | |
| Income taxes paid to parent | \$
4 301 |
See accompanying notes to financial statements.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2022
#### **NOTE 1 - Summary of Significant Accounting Policies**
#### Nature of Operations
Coordinated Capital Securities, Inc. (the "Company") is a Wisconsin corporation formed on December 8, 1982 for the purpose of conducting business in financial services. The Company offers mutual funds, variable insurance products, college savings plans and alternative investments with investment companies and sponsors throughout the United States. The Company also offers securities on a fully disclosed basis through its clearing broker dealer. The Company is a federally-registered investment advisor and also provides discount brokerage services through its division, Coltrane Securities. The Company is a wholly-owned subsidiary of Coordinated Capital Holdings, Inc. (the "Parent").
#### Cash and Cash Equivalents
The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. At times, these accounts may exceed federally insured limits. As a result, the Company is exposed to custodial credit risk.
#### Commissions Receivable
The Company has evaluated the presentation requirements related to ASC 326-20, Financial Instruments - Credit Losses which requires the Company to estimate expected credit losses over the life of its financial assets. Management considers receivables to be fully collectible; due to the nature of receivables being collected in a short period of time. The Company has determined that an allowance for credit losses is not required.
#### Revenue Recognition
#### Performance Obligations
Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring promised goods or services to customers. **A** good or service is transferred to a customer when, or as, the customer obtains control of that good or service. **A** performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good service and compensation for that good or service is received. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services.
#### Investment advisory fees
The performance obligation is defined as providing advisory services to clients. Advisory fees are generally computed as a percentage of assets under management and are recognized as revenue over time. Fees for providing investment advisory services are computed and billed in accordance with the provision of the applicable investment management agreements, which is typically quarterly at the beginning of the quarter based on the previous quarter-end market value of assets under management.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2022
#### **NOTE 1 - Summary of Significant Accounting Policies (cont.)**
#### Commission Revenue
The Company earns commissions from mutual fund and insurance companies when the Company's clients purchase securities. The commission earned varies on the type of security, the amount of the purchase, and the client's existing balance at that custodian. Commission from securities transactions are recognized on either a trade date.
In addition, the Company earns commission on securities sold through their Clearing Firm in brokerage accounts. The commission earned varies on the type of security sold. Revenue is recognized when the commission is received from the Clearing Firm.
#### Mutual Fund and Variable Insurance 12b-1 fees
Mutual fund and Variable Insurance companies earn 12b-1 fees to compensate the Company for its marketing and distribution efforts. These fees are asset-based fees that are determined by the amount of the client assets invested. Revenue is recognized over time as they are received by the Company. The performance obligation is defined as providing on-going service to these client accounts.
| | Disaggregated Revenue | |
|-------------------|--------------------------|------------------|
| | Commission Revenue | \$
2,913,607 |
| | Investment Advisory Fees | 4,723,762 |
| | 12b-1 Fees | 2,815,663 |
| | CCS Income | 1,133,886 |
| | | \$
11,586,918 |
| Contract Balances | | |
| | Commission Revenue | \$
290,340 |
| | 12b-1 Fees | 20,195 |
| | | \$
310,535 |
| | | |
#### Income Taxes
The Company accounts for income taxes under the asset and liability method. Under the asset and liability method deferred taxes are determined based on the differences between the financial statement and the tax basis of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance, when in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2022
#### **NOTE 1 - Summary of Significant Accounting Policies (cont.)**
The Company is included in the consolidated return of the Parent. The Company pays the income tax for which they are liable. Income taxes are separately stated on the statement of income.
The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. There were no such positions as of March 31, 2022. The Company accrues interest and penalties related to unrecognized tax positions. As of March 31, 2022, the Company had no accrued interest and penalties related to unrecognized tax positions.
#### Exemptive Provision
With respect to all securities transactions, the Company operates under the provisions of paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission. Essentially, the requirements of paragraph (k)(2)(ii) provide that the Company clear all transactions on behalf of customers on a fully-disclosed basis with a clearing broker dealer and promptly transmit all customer funds and securities to the clearing broker dealer. The clearing broker dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker dealer.
As a result of the provisions disclosed in the preceding paragraph, the Company is exempt from the remaining provisions of Rule 15c3-3.
#### Guarantees and Indemnifications
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 or its affiliates. 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 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 is dependent on its clearing broker dealer, Wells Fargo Clearing Services **LLC** for the everyday processing of customer transactions as required under the provisions of paragraph (k)(2)(ii) of Rule 15c3-3.
Wells Fargo Clearing Services **LLC** requires that the Company maintain a minimum deposit of \$25,000.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2022
#### **NOTE 1 - Summary of Significant Accounting Policies (cont.)**
#### Estimates
The preparation of financial statements in conformity 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
#### **NOTE 2 - Net Capital Requirements**
The Company is subject to the Securities and Exchange Commission uniform net capital rule (Rule 15c3-1 ), which requires the maintenance of a minimum amount of net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1.
As of March 31, 2022, the Company had net capital of \$779,603 which was \$729,603 in excess of its net capital requirement of \$50,000. The Company's net capital ratio as of March 31, 2022 was .15 to 1.
#### **NOTE 3** - **Off Balance Sheet Risk**
As discussed in Note 1, the Company offers securities that are introduced on a fully disclosed basis with its clearing broker dealer. For these transactions, the clearing broker dealer is responsible for the execution, collection and payment of funds and, receipt and delivery of securities relative to customer transactions. Off-balance sheet risk exists with respect to these transactions due to the possibility that the customers may be unable to fulfill their contractual commitments, wherein the clearing broker dealer may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers.
#### **NOTE 4 - Related Party Transactions**
The Company is wholly-owned by the Parent. Through common ownership/management, the Company is also affiliated with Coordinated Capital Consultants of Wisconsin, Inc.
During the year ended March 31, 2022, the Company paid management fees of \$1,080,000 to the Parent. Included in these fees were reimbursements for office space, administrative assistance, and other miscellaneous operating expenses. This expense is included in management fees on the Statement of Income.
The Company has recorded a receivable of \$22,845 due from the Parent, Coordinated Capital Holdings, Inc. This receivable was due to an overpayment by the Company for income taxes.
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(A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2022
#### **NOTE 5 - Income Taxes**
The Company is included in a consolidated federal income tax return and various consolidated or combined state returns. The consolidated current and deferred federal and state income tax expense of the group is allocated among the members in a systematic and consistent manner based on each member's share of the consolidated tax expense.
Income tax expense includes the following components:
| | Year Ended
March 31 , 2022 | |
|---------------------------|-------------------------------|-------|
| Current: | | |
| Federal: | \$ | 3,961 |
| State: | | 1 618 |
| Total current tax expense | \$ | 5,579 |
Income tax expense
Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. As of March 31, 2022, the Company has no deferred tax assets or liabilities.
The provision for income taxes differs from that computed at the federal statutory corporate tax rate for the year ended March 31, 2022 as follows:
| Income before income tax expense | \$
20,481 |
|-----------------------------------------------------------------------------------|----------------------------|
| Tax expense at statutory rate
State income tax, net of federal effect
Other | 4,301
1,278
(74,460) |
| Total income tax benefit | \$
(68,881} |
| Effective tax rate | (336.32)% |
The Company is in an income tax benefit position due to an immaterial out of period error correction of **\$74,460.**
#### **NOTE 6 - Subsequent Events**
The Company has evaluated subsequent events through May 26, 2022, which is the date that the financial statements were approved and available to be issued. No subsequent events were noted.
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SU PP LEM ENT AL IN FORMATION
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#### SCHEDULE I - COMPUTATION OF NET CAPITAL RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION CAPITAL RULE As of March 31 , 2022
| AGGREGATE INDEBTEDNESS
Commission payable
Accrued expenses | \$
103,149
15 214 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| Total Aggregate Indebtedness | \$
118,363 |
| Minimum required net capital (based on aggregate indebtedness) | \$
7,895 |
| NET CAPITAL
Stockholder's equity
Deductions:
Non-allowable commissions receivable
Receivable - related party
Haircut on deposit with clearing broker dealer | \$
823,588
20,552
22,845
588 |
| Net Capital | 779,603 |
| Net capital requirement (Minimum) | 50 000 |
| Capital in excess of minimum requirement | \$
729,603 |
| Ratio of aggregate indebtedness to net capital | .15 to 1 |
There were no material differences between the above calculation and the Company's calculation of net capital as reflected on the unaudited Form 1 ?a-5, Part I IA.
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#### SCHEDULE II - COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION) AND INFORMATION FOR POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION) OF THE SECURITIES AND EXCHANGE COMMISSION As of March 31 , 2022
#### **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3**
Coordinated Capital Securities, Inc. is exempt from Rule 15c3-3 under the provision of Rule 15c3- 3(k)(2)(ii).
#### **INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3**
Coordinated Capital Securities, Inc. is exempt from Rule 15c3-3 under the provision of Rule 15c3- 3(k)(2)(ii).
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.