# COORDINATED CAPITAL SECURITIES, INC. X-17A-5 (2023-05-31) — Broker-dealer annual report - Company: COORDINATED CAPITAL SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-05-31 - Period: 2023-03-31 - Accession: 0000737844-23-000002 - CIK: 737844 - File #: 8-31173 - Type: Broker-dealer - Material weakness: Yes - 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/737844/000073784423000002/ccsfinan.pdf --- {0}------------------------------------------------ AWholly-OwnedSubsidiary ofCoordinated Capital Holdings, Inc.) Madison, Wisconsin FINANCIAL STATEMENTS Including Report ofIndependent Registered PublicAccounting Firm AsofandfortheYearEnded March 31, 2023 {1}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) #### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | ー | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | Financial Statements | | | Statement of financial condition | 2 | | Statement of operations | 3 | | Statement of stockholder's equity | 4 | | Statement of cash flows | 5 | | Notes to financial statements | 6 - 11 | | Supplemental Information | | | Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and
Exchange Commission Capital Rule | 12 | | 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 | 13 | {2}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31. 2023 Estimated average burden hours per response: 12 sec file number 8-31173 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING 03/31/23 filing for the period beginning 04/1/22 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Coordinated Capital Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): ■ Broker-dealer □ 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 | W | | 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 | W | 53202 | | | | (Address) | (City) | (State) | (Zip Code) | | | | 10/22/2003 | | 23 | | | | \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {3}------------------------------------------------ #### OATH OR AFFIRMATION | 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 as of 3/31 , 2023 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. Title: President Notary Public ### This filing \*\* contains (check all applicable boxes): - = (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - = (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - = (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - | (i) Computation of tangible net worth under 17 CFR 240.18a-2. - (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. - = (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - \_ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (t) Independent public accountant's report based on an examination of tinancial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (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. - as applicable. - □ (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### Report of Independent Registered Public Accounting Firm To the Stockholder and 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, 2023, the related statements of operations, 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, 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 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 15c3-1 of the Securities and Exchange Commission Capital Rule and Schedule II - Computation of Determination of Reserve Requirements Under Rule 1503-3 (Exemption) and Information for Possession or Control Requirements Under Rule 15c3-3 (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 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 30, 2023 Baker Tilly US, LLP, trading as Baker Tilly, is a member of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP {5}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) #### STATEMENTOFFINANCIAL CONDITION AsofMarch31, 2023 #### ASSETS | Cashandcashequivalents \$
Commissions
receivable
Receivable
relatedparty
Depositwithclearingbrokerdealer | 455,656
226,097
77,066
30,070 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------| | TOTAL
ASSETS \$ | 788,889 | | | | | LIABILITIES
Commissions
payable \$
Accruedexpenses
Totalliabilities | 23,902
29,151
53,053 | | SEQUITY
STOCKHOLDER'
Commonstock, \$1parvalue; 56,000sharesauthorized;
6,000sharesissuedandoutstanding
Additionalpaid-incapital
Retainedearnings
TotalStockholder'sEquity | 6,000
244,476
485,360
735,836 | | SEQUITY \$
AND
TOTAL
LIABILITIES
STOCKHOLDER' | 788,889 | {6}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) #### STATEMENTOFOPERATIONS FortheYearEndedMarch31, 2023 | REVENUES
Revenues \$
Totalrevenues | 9,612,121
9,612,121 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------| | OPERATING
EXPENSES
andrelatedbenefits
Commissions, othercompensation
feesandincentivebonuses
relatedparty
Management
Clearingandexecutioncosts
Otheroperatingexpenses
Totaloperatingexpenses | 7,592,996
1,580,000
234,094
325,638
9,732,728 | | NETLOSS
BEFORE
INCOME
TAXES ( | 120,607) | | Incometaxbenefit | 32,855 | | NETLOSS \$
( | 87,752) | {7}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) ### STATEMENTOFSTOCKHOLDER'SEQUITY FortheYearEndedMarch31, 2023 | | Common
Stock | | Additional
in
Paid-
Capital | | Retained
Earnings | | Total
Stockholder's
Equity | | |----------------------------|-----------------|----------|--------------------------------------|------------|----------------------|------------|----------------------------------|----------| | BALANCES, April1, 2022 \$ | | 6,000 \$ | | 244,476 \$ | | 573,112 \$ | | 823,588 | | Netloss
-
-
( | | | | | | 87,752) | | (87,752) | | BALANCES, March31, 2023 \$ | | 6,000 \$ | | 244,476 \$ | | 485,360 \$ | | 735,836 | {8}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) ## STATEMENTOFCASHFLOWS FortheYearEndedMarch31, 2023 | CASH
FROM
FLOWS
OPERATING
ACTIVITIES | | |--------------------------------------------------------------------------|----------| | Netloss \$
( | 87,752) | | toreconcilenetlosstonetcashflowsusedinoperatingactivities
Adjustments | | | Changesinoperatingassetsandliabilities | | | receivable
Commissions | 84,437 | | Depositwithclearingbrokerdealer
( | 661) | | Receivable
relatedparty
( | 54,221) | | payable
(
Commissions | 79,247) | | Accruedexpenses | 13,937 | | Netcashflowsusedinoperatingactivities
( | 123,506) | | inCash
NetChange
andCashEquivalents
( | 123,506) | | CASHANDCASHEQUIVALENTS - BeginningofYear | 579,162 | | EQUIVALENTS - ENDOFYEAR \$
CASH
AND
CASH | 455,656 | {9}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) NotestoFinancialStatements AsofandfortheyearendedMarch31, 2023 ### NOTE 1 - Summary ofSignificant Accounting Policies ### Nature ofOperations CoordinatedCapital 1982forthepurposeofconductingbusinessinfinancialservices. TheCompanyoffersmutualfunds, variableinsuranceproducts, collegesavingsplansandalternativeinvestmentswithinvestment companiesandsponsorsthroughouttheUnitedStates. TheCompanyalsoofferssecuritiesonafully disclosedbasisthroughitsclearingbrokerdealer. TheCompanyisafederally-registeredinvestment advisorandalsoprovidesdiscountbrokerageservicesthroughitsdivision, ColtraneSecurities. The Companyisawholly-ownedsubsidiaryofCoordinatedCapitalHoldings, Inc. (the "Parent"). #### CashandCashEquivalents TheCompanyconsidersallhighlyliquiddebtinstrumentspurchasedwithamaturityofthreemonthsor lesstobecashequivalents. Attimes, theseaccountsmayexceedfederallyinsuredlimits. AsofMarch 31, 2023theseaccountsdidnotexceedthefederallyinsuredlimits. #### Commissions Receivable TheCompanyhasevaluatedthepresentationrequirements relatedtoASC326-20, Financial Instruments CreditLosseswhichrequirestheCompany toestimateexpectedcreditlossesoverthelifeofits financialassets. Managementconsiders receivablestobefullycollectible; duetothenatureof receivablesbeingcollectedinashortperiodoftime. TheCompanyhasdeterminedthatanallowancefor creditlossesisnotrequired. ### Revenue Recognition #### Performance Obligations Revenuefromcontractswithcustomersisrecognizedwhen, oras, theCompanysatisfiesitsperformance obligationsbytransferringpromisedgoodsorservicestocustomers. Agoodorserviceistransferredtoa customerwhen, oras, thecustomerobtainscontrolofthatgoodorservice. Aperformance obligationmay besatisfiedovertimeoratapointintime. Revenuefromaperformance obligationsatisfiedatapointin timeisrecognizedatthepointintimethattheCompanydeterminesthecustomerobtainscontroloverthe promisedgoodserviceandcompensation forthatgoodorserviceisreceived. Theamountofrevenue recognizedreflectstheconsiderationtowhichtheCompanyexpectstobeentitledinexchangeforthose promisedgoodsorservices. #### Investment advisory fees Theperformance obligationisdefinedasprovidingadvisoryservicestoclients. Advisoryfeesare generallycomputedasapercentageofassetsundermanagement andarerecognizedasrevenueover time. Feesforprovidinginvestmentadvisoryservicesarecomputedandbilledinaccordancewiththe provisionoftheapplicableinvestmentmanagement agreements, whichistypicallyquarterlyatthe beginningofthequarterbasedonthepreviousquarter-endmarketvalueofassetsundermanagement. {10}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) NotestoFinancialStatements AsofandfortheyearendedMarch31, 2023 ### NOTE 1 - Summary ofSignificant Accounting Policies (cont.) #### Commission Revenue clientspurchasesecurities. Thecommissionearnedvariesonthetypeofsecurity, theamountofthe recognizedoneitheratradedate. Inaddition, theCompanyearnscommission onsecuritiessoldthroughtheirClearingFirminbrokerage accounts. Thecommissionearnedvariesonthetypeofsecuritysold. Revenueisrecognizedwhenthe commissionisreceivedfromtheClearingFirm. ### MutualFundandVariable Insurance 12b-1fees MutualfundandVariableInsurancecompanies earn12b-1feestocompensatetheCompanyforits marketinganddistributionefforts. Thesefeesareasset-basedfeesthataredeterminedbytheamountof theclientassetsinvested. RevenueisrecognizedovertimeastheyarereceivedbytheCompany. The performance obligationisdefinedasprovidingon-goingservicetotheseclientaccounts. #### CCSIncome TheCompanyearnscommissionsand12b-1feesfrommutualfundcompanies, insurancecompanies andonsecuritiessoldthroughtheirClearingFirminbrokerageaccountsforaccountswherethe Companyisrecordedasthefinancialprofessional. Revenueisrecognizedwhencommissionsand12b-1 feesarereceivedfromthemutualfund, insurancecompaniesandtheClearingFirm. Inaddition, theCompanyalsoreceivesincomefrommiscellaneous feespaidtotheCompany fromtheir financialprofessionals. Theperformance obligationisdefinedasprovidingongoingservicestothe financialprofessionals andtheclientaccounts. Revenueisrecognizedwhenpaymentsfromthefinancial professionals arereceived. | Disaggregated | Revenue | | |------------------|------------------------------|-----------| | | InvestmentAdvisoryFees
\$ | 4,397,614 | | | CommissionRevenue | 1,764,628 | | | 12b-1Fees | 2,364,165 | | | CCSIncome | 1,085,714 | | | | 9,612,121 | | ContractBalances | | | | | CommissionRevenue
\$ | 210,851 | | | 12b-1Fees | 15,246 | | | | 226,097 | {11}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) NotestoFinancialStatements AsofandfortheyearendedMarch31, 2023 ### NOTE 1 - Summary ofSignificant Accounting Policies (cont.) #### Income Taxes TheCompanyaccountsforincometaxesundertheassetandliabilitymethod. Undertheassetand liabilitymethoddeferredtaxesaredeterminedbasedonthedifferencesbetweenthefinancialstatement andthetaxbasisofassetsandliabilitiesusingenactedtaxrates. Deferredtaxassetsarereducedbya valuationallowance, whenintheopinionofmanagement, itismorelikelythannotthatsomeportionorall ofthedeferredtaxassetswillnotberealized. TheCompanyisincludedintheconsolidated returnoftheParent. TheCompanypaystheincometaxfor whichtheyareliable. Incometaxesareseparatelystatedonthestatementofincome. TheCompanyrecognizesandmeasuresitsunrecognized taxbenefitsinaccordancewithFASBASC 740, Income Taxes. UnderthatguidancetheCompanyassessesthelikelihood, basedontheirtechnical merit, thattaxpositionswillbesustaineduponexaminationbasedonthefacts, circumstancesand informationavailableattheendofeachperiod. Themeasurementofunrecognized taxbenefitsis adjustedwhennewinformationisavailable, orwhenaneventoccursthatrequiresachange. Therewere nosuchpositionsasofMarch31, 2023. TheCompanyaccruesinterestandpenaltiesrelatedto unrecognized taxpositions. AsofMarch31, 2023, theCompanyhadnoaccruedinterestandpenalties relatedtounrecognized taxpositions. #### Exemptive Provision Withrespecttoallsecuritiestransactions, theCompanyoperatesundertheprovisionsofparagraph k)(2)(ii) ofRule15c3-3oftheSecuritiesandExchangeCommission. Essentially, therequirementsof paragraph (k)(2)(ii) providethattheCompanyclearalltransactionsonbehalfofcustomersona fully-disclosedbasiswithaclearingbrokerdealerandpromptlytransmitallcustomerfundsandsecurities totheclearingbrokerdealer. Theclearingbrokerdealercarriesalloftheaccountsofthecustomersand maintainsandpreservesallrelatedbooksandrecordsasarecustomarily keptbyaclearingbroker dealer. Asaresultoftheprovisionsdisclosedintheprecedingparagraph, theCompanyisexemptfromthe remainingprovisionsofRule15c3-3. TheCompanyisalsorelyingonFootnote74oftheSECReleaseNo. 34-70073forotherbusiness activitieslimitedtoeffectingsecuritiestransactions viasubscriptionwaybasiswherethefundsare payabletotheissueroritsagentandnottheCompany. TheCompanydidnotdirectlyorindirectly receive, hold, orotherwiseowefundsorsecuritiesforortocustomersanddidnotcarryaccountsoforfor customersthroughouttheperiodofApril1, 2022throughMarch31, 2023. #### Guarantees andIndemnifications Inthenormalcourseofitsbusiness, theCompanyindemnifies andguarantees certainserviceproviders, suchasclearingandcustodyagentsagainstspecifiedpotentiallossesinconnectionwiththeiractingas anagentof, orprovidingservicesto, theCompanyoritsaffiliates. TheCompanyalsoindemnifies some clientsagainstpotentiallossesincurredintheeventspecifiedthird-partyserviceproviders, includingsub {12}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) NotestoFinancialStatements AsofandfortheyearendedMarch31, 2023 ### NOTE 1 - Summary ofSignificant Accounting Policies (cont.) custodiansandthird-partybrokers, improperlyexecutedtransactions. Themaximumpotentialamountof futurepaymentsthattheCompanycouldberequiredtomakeundertheseindemnifications cannotbe estimated. However, theCompanybelievesthatitisunlikelyitwillhavetomakematerialpaymentsunder thesearrangementsandhasnotrecordedanycontingent liabilityinthefinancialstatements forthese indemnifications. TheCompanyisdependentonitsclearingbrokerdealer, WellsFargoClearingServicesLLCforthe everydayprocessingofcustomertransactionsasrequiredundertheprovisionsofparagraph (k)(2)(ii) of Rule15c3-3. WellsFargoClearingServicesLLCrequiresthattheCompanymaintainaminimumdepositof \$25,000. #### Estimates Thepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmericarequiresmanagement tomakeestimatesandassumptions thataffectthe reportedamountsofassetsandliabilitiesanddisclosureofcontingent assetsandliabilitiesatthedateof thefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportingperiod. Actualresultscoulddifferfromthoseestimates. ### NOTE 2 - NetCapital Requirements TheCompanyissubjecttotheSecuritiesandExchangeCommission uniformnetcapitalrule (Rule 15c3-1), whichrequiresthemaintenance ofaminimumamountofnetcapitalandthattheratioof aggregateindebtedness tonetcapital, bothasdefined, shallnotexceed15to1. Rule15c3-1also providesthatequitycapitalmaynotbewithdrawnorcashdividendspaidiftheresultingnetcapitalratio wouldexceed10to1. AsofMarch31, 2023, theCompanyhadnetcapitalof \$642,418whichwas \$592,418inexcessofitsnet capitalrequirementof \$50,000. TheCompany'snetcapitalratioasofMarch31, 2023was .08to1. ### NOTE 3 - OffBalance Sheet Risk AsdiscussedinNote1, theCompanyofferssecuritiesthatareintroducedonafullydisclosedbasiswith itsclearingbrokerdealer. Forthesetransactions, theclearingbrokerdealerisresponsibleforthe execution, collectionandpaymentoffundsand, receiptanddeliveryofsecuritiesrelativetocustomer transactions. Off-balancesheetriskexistswithrespecttothesetransactionsduetothepossibility that thecustomersmaybeunabletofulfilltheircontractualcommitments, whereintheclearingbrokerdealer maychargeanylossesitincurstotheCompany. TheCompanyseekstominimizethisriskthrough proceduresdesignedtomonitorthecreditworthinessofitscustomers. {13}------------------------------------------------ AWholly-OwnedSubsidiaryofCoordinatedCapitalHoldings, Inc.) NotestoFinancialStatements AsofandfortheyearendedMarch31, 2023 ### NOTE 4 - Related Party Transactions TheCompanyiswholly-ownedbytheParent. Throughcommonownership/management, theCompany isalsoaffiliatedwithCoordinatedCapitalConsultantsofWisconsin, Inc. DuringtheyearendedMarch31, 2023, theCompanypaidmanagementfeesof \$1,080,000totheParent. Includedinthesefeeswerereimbursements forofficespace, administrative assistance, andother miscellaneous operatingexpenses. Thisexpenseisincludedinmanagement feesonthestatementof income. TheCompanyhasrecordedareceivableof \$54,326duefromtheParent, Coordinated CapitalHoldings, Inc. TheCompanyhasalsorecordedareceivableof \$22,740duefromanassociatedpersonforlegal feesreimbursement. ### NOTE 5 Income Taxes TheCompanyisincludedinaconsolidated federalincometaxreturnandvariousconsolidated or combinedstatereturns. Theconsolidatedcurrentanddeferredfederalandstateincometaxexpenseof thegroupisallocatedamongthemembersinasystematicandconsistentmannerbasedoneach Incometaxbenefitincludesthefollowingcomponents: | | YearEnded
March31, 2023 | |---------------------------|----------------------------| | Current: | | | Federal: \$ | 23,327 | | State: | 9,528 | | Totalcurrenttaxbenefit \$ | 32,855 | Deferredincometaxassetsandliabilitiesreflectthenettaxeffectsoftemporarydifferences between thecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbasis. Asof March31, 2023, theCompanyhasnodeferredtaxassetsorliabilities. Theprovisionforincometaxesdiffersfromthatcomputedatthefederalstatutorycorporatetaxratefor theyearendedMarch31, 2023asfollows: | Incomebeforeincometaxbenefit \$
( | 120,607) | |-----------------------------------------------------------------|-----------------| | Taxexpenseatstatutoryrate
Stateincometax, netoffederaleffect | 25,328
7,527 | | Totalincometaxbenefit \$ | 32,855 | | Effectivetaxrate
( | 27.24)% | {14}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2023 ### NOTE 6 - Subsequent Events The Company has evaluated subsequent events through May 30, 2023, which is the date that the financial statements were approved and available to be issued. No significant or reportable events were noted. {15}------------------------------------------------ SUPPLEMENTALINFORMATION {16}------------------------------------------------ ### SCHEDULEI - COMPUTATION OFNETCAPITALRULE15c3-1OFTHESECURITIESAND EXCHANGECOMMISSION CAPITALRULE AsofMarch31, 2023 #### COMPUTATION OFNETCAPITAL | Totalownershipequity \$ | | 735,836 | |------------------------------------------------------------|--|---------| | Non-allowableassets | | | | Receivable
relatedparty
( | | 77,066) | | Non-allowableagingandtrails
( | | 15,751) | | Totalnon-allowableassets
( | | 92,817) | | Haircutonsecurities
depositwithclearingbroker ( | | 601) | | NetCapital | | 642,418 | | OFBASIC
NETCAPITAL
COMPUTATION
REQUIREMENT | | | | Minimumnetcapitalrequired (6-2.3% oftotalA.I. liabilities) | | 3,537 | | Minimumdollarnetcapitalrequirement | | 50,000 | | Excessnetcapital \$ | | 592,418 | | OFAGGREGATE
COMPUTATION
INDEBTEDNESS | | | | TotalA.I. liabilities | | 53,053 | | Totalaggregateindebtedness \$ | | 53,053 | | Percentageofaggregateindebtedness
tonetcapital | | 8.26 | TherewerenomaterialdifferencesbetweentheabovecalculationandtheCompany'scalculationofnet capitalasreflectedontheunauditedamendedForm17a-5, PartIIA. {17}------------------------------------------------ ### SCHEDULEII - COMPUTATION FORDETERMINATION OFRESERVEREQUIREMENTS UNDER RULE15c3-3 (EXEMPTION) ANDINFORMATION FORPOSSESSION ORCONTROL REQUIREMENTS UNDERRULE15c3-3 (EXEMPTION) OFTHESECURITIESANDEXCHANGE COMMISSION AsofMarch31, 2023 ## COMPUTATION FOR DETERMINATION OFRESERVE REQUIREMENTS UNDER RULE 15c3-3 CoordinatedCapitalSecurities, Inc. isexemptfromRule15c3-3undertheprovisionofRule15c3- 3(k)(2)(ii). CoordinatedCapitalSecurities, Inc. businessactivitiescontemplated byFootnote74oftheSECReleaseNo. 34-70073adopting amendments to17C.F.R. § 240.17a-5arelimitedtoeffectingsecuritiestransactions viaasubscription waybasiswherethefundsarepayabletotheissueroritsagentandnottotheCompany; andthe Company (1) didnotdirectlyorindirectlyreceive, holdorotherwiseowefundsorsecuritiesfororto customers, (2) didnotcarryaccountsoforforcustomers, and (3) didnotcarryPABaccounts (asdefined inRule15c3-3) throughoutthemostrecentfiscalyearwithoutexception. #### INFORMATION RELATING TOTHEPOSSESSION ORCONTROL REQUIREMENTS UNDER RULE 15c3-3 CoordinatedCapitalSecurities, Inc. isexemptfromRule15c3-3undertheprovisionofRule15c3- 3(k)(2)(ii) forclearingtransactionsonafullydisclosedbasiswithaclearingbrokerdealer. businessactivitiescontemplated byFootnote74oftheSECReleaseNo. 34-70073adopting amendments to17C.F.R. § 240.17a-5arelimitedtoeffectingsecuritiestransactions viaasubscription waybasiswherethefundsarepayabletotheissueroritsagentandnottotheCompany; andthe Company (1) didnotdirectlyorindirectlyreceive, holdorotherwiseowefundsorsecuritiesfororto customers, (2) didnotcarryaccountsoforforcustomers, and (3) didnotcarryPABaccounts (asdefined inRule15c3-3) throughoutthemostrecentfiscalyearwithoutexception. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.