# SATURNA BROKERAGE SERVICES, INC X-17A-5 (2025-09-02) — Broker-dealer annual report - Company: SATURNA BROKERAGE SERVICES, INC - Form: X-17A-5 - Filed: 2025-09-02 - Period: 2025-06-30 - Accession: 0000799187-25-000002 - CIK: 799187 - File #: 8-36558 - Type: Broker-dealer - Material weakness: No - Auditor: Baker Tilly US, LLP - Auditor location: Chicago, IL - Contact: Kalen Hanna - Phone: 3607349900 - Signed by: Kalen Hanna (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/799187/000079918725000002/saturna2025_3.pdf --- {0}------------------------------------------------ Report of Independent Registered Public Accounting Firm and Financial Statements with Supplementary Schedules for **Saturna Brokerage Services, Inc.** (A wholly owned subsidiary of Saturna Capital Corporation) June 30, 2025 and 2024 {1}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** | Contents | Page(s) | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 3-4 | | FINANCIAL STATEMENTS | | | Statements of Financial Condition | 5 | | Statements of Operations | 6 | | Statements of Shareholder's Equity | 7 | | Statements of Cash Flows | 8 | | Notes to Financial Statements | 9-15 | | SUPPLEMENTARY INFORMATION
Computation of net capital per rule 15c3-1 under the
Securities Exchange Act of 1934 (Schedule I) | 16 | | EXEMPTION REPORT | | | Review report on management's statements regarding compliance
with certain exemption provisions under Rule 15c3-3 of the
Securities Exchange Act of 1934 | 17 | | Management's statement regarding compliance with certain
exemption provisions under Rule 15c3-3 of the Securities
Exchange Act of 1934 | 18 | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** The Shareholder and the Board of Directors of Saturna Brokerage Services, Inc. #### *Opinion on the Financial Statements* We have audited the accompanying statements of financial condition of Saturna Brokerage Services, Inc. (the Company), as of June 30, 2025 and 2024, the related statements of operations, changes in shareholder's equity, and cash flows for the years 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 June 30, 2025 and 2024, and the results of its operations and its cash flows for the years 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 audits. 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 audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud , and performing procedures to respond to those risks. Such procedures included examining , on a test basis , evidence regarding the amounts and disclosures in the financial statements. Our audits 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 audits provide a reasonable basis for our opinion. {3}------------------------------------------------ #### *Opinion on the Supplementary Information* The supplementary information in Schedule I has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The information in Schedule I is the responsibility of the Company's management. Our audit procedures include determining whether the information in Schedule I 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 Schedule I. In forming our opinion on the information in Schedule I, we evaluated whether the information in Schedule I, including its form and content is presented in conformity with 17 **C.F.R.** §240.17a-5. In our opinion, the information in is fairly stated in all material respects in relation to the financial statements as a whole. *§~ I* Jf; u5,; u:r Bellingham, Washington August29, 2025 We have served as the Company's auditor since 2013. {4}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** # **Statements of Financial Condition** | | ASSETS | | | | | | |--------------------------------------|--------|----------|-----------|--|------|-----------| | | | June 30, | | | | | | | | 2025 | | | 2024 | | | | | | | | | | | Cash and cash equivalents | | \$ | 4,490,607 | | \$ | 4,196,849 | | Investment securities, at fair value | | | 1,861,860 | | | 1,743,518 | | Receivable from affiliated companies | | | 2,120,990 | | | 2,059,695 | | Deposit with clearing organization | | | 250,000 | | | 250,000 | | Prepaid expenses | | | 98,020 | | | 47,923 | | Deferred tax asset | | | 56,400 | | | 53,590 | | | | | | | | | | TOTAL ASSETS | | \$ | 8,877,877 | | \$ | 8,351,575 | | | | | | | | | #### **LIABILITIES AND SHAREHOLDER'S EQUITY** | LIABILITIES | | | |----------------------------------------------|-----------------|-----------------| | Mutual fund distribution fees payable | \$
1,861,528 | \$
1,868,791 | | Payable to affiliated companies | 210,730 | 165,995 | | Deferred tax liability | 41,996 | 27,639 | | Accounts payable and accrued expenses | 62,511 | 63,469 | | Total liabilities | 2,176,765 | 2,125,894 | | Commitments and contingencies (Note 7) | | | | SHAREHOLDER'S EQUITY | | | | Common stock, \$10 par value, 300,000 shares | | | | authorized; issued and outstanding 245,000 | | | | and 215,000 atJune30, 2025 and 2024 | 2,450,000 | 2,150,000 | | Additional paid-in capital | 21,669,716 | 18,969,716 | | Accumulated deficit | (17,418,604) | (14,894,035) | | Total shareholder's equity | 6,701,112 | 6,225,681 | | TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | \$
8,877,877 | \$
8,351,575 | | | | | {5}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** # **Statements of Operations** | | Years ended June 30, | | | | |--------------------------------------|----------------------|-------------|----|-------------| | | | 2025 | | 2024 | | REVENUES | | | | | | Mutual fund distribution fees | \$ | 8,904,375 | \$ | 7,929,052 | | Investment income | | 205,436 | | 98,262 | | Other income | | 32,144 | | 34,384 | | Brokerage commission fees | | 21,327 | | 62,311 | | Total | | 9,163,282 | | 8,124,009 | | EXPENSES | | | | | | Mutual fund distribution fees | | 8,904,375 | | 7,929,052 | | Compensation expense | | 1,814,618 | | 1,436,284 | | Marketing and advertising | | 690,055 | | 583,208 | | General and administrative | | 517,934 | | 402,664 | | Professional services | | 251,268 | | 253,890 | | Brokerage clearing and trading | | 239,487 | | 488,425 | | State and city taxes | | 43,692 | | 40,047 | | Occupancy expenses | | 23,545 | | 25,580 | | Market data and information services | | 1,704 | | 2,629 | | Total | | 12,486,678 | | 11,161,779 | | LOSS BEFORE INCOME TAXES | | (3,323,396) | | (3,037,770) | | Current income tax benefit | | 810,374 | | 726,446 | | Deferred income tax (expense) | | (11,547) | | (4,086) | | NET LOSS | \$ | (2,524,569) | \$ | (2,315,410) | {6}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** # **Statements of Shareholder's Equity** | | | Common Stock | | | | |------------------------|-------------|--------------|------------------|-----------------|-----------------| | | Shares | | Additional Paid- | Accumulated | Shareholder's | | | outstanding | Amount | in Capital | Deficit | Equity | | | | | | | | | BALANCE, June 30, 2023 | 175,000 | \$ 1,750,000 | \$
15,369,716 | \$ (12,578,625) | \$
4,541,091 | | | | | | | | | Common stock issuance | 40,000 | 400,000 | 3,600,000 | | 4,000,000 | | Net loss | | | | (2,315,410) | (2,315,410) | | | | | | | | | BALANC~June30,2024 | 215,000 | \$ 2,150,000 | \$
18,969,716 | \$ (14,894,035) | \$
6,225,681 | | | | | | | | | Common stock issuance | 30,000 | 300,000 | 2,700,000 | | 3,000,000 | | Net loss | | | | (2,524,569) | (2,524,569) | | | | | | | | | BALANCE, June 30, 2025 | 245,000 | \$ 2,450,000 | \$
21,669,716 | \$ (17,418,604) | \$
6,701,112 | | | | | | | | {7}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** # **Statements of Cash Flows** | | Years ended June 30, | | | |------------------------------------------------------------------------------|----------------------|-------------------|--| | | 2025 | 2024 | | | CASH FLOWS USED IN OPERATING ACTIVITIES
Net loss | \$ (2,524,569) | \$ (2,315,410) | | | Adjustment to reconcile net loss to net cash
used in operating activities | | | | | Fair value adjustments on marketable securities | (60,087) | (47,090) | | | Provision for deferred taxes | 11,547 | 4,086 | | | Reinvestment of dividend income | (58,255) | (51,172) | | | Changes in operating assets and liabilities | | | | | Receivable from affiliated companies | (61,295) | (539,737) | | | Prepaid expenses | (50,097) | (17,839) | | | Other assets | | (150,000) | | | Payable to affiliated companies | 44,735 | 25,766 | | | Mutual fund distribution fees payable
Accounts payable | (7,263)
(958) | 373,832
47,864 | | | | | | | | Net cash flows used in operating activities | (2,706,242) | (2,669,700) | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | Issuance of common stock | 3,000,000 | 4,000,000 | | | Net cash flows from financing activities | 3,000,000 | 4,000,000 | | | NET CHANGE IN CASH AND CASH EQUIVALENTS | 293,758 | 1,330,300 | | | CASH AND CASH EQUIVALENTS, beginning of year | 4,196,849 | 2,866,549 | | | CASH AND CASH EQUIVALENTS, end of year | \$ 4,490,607 | \$
4,196,849 | | {8}------------------------------------------------ # **Notes to Financial Statements** #### **Note 1 - Organization** Saturna Brokerage Services, Inc. (the "Company" or "Saturna Brokerage"), was organized under the laws of the state of Washington on September 2, 1986, as a broker-dealer. The Company is a wholly owned subsidiary of Saturna Capital Corporation ("Saturna Capital"). #### **Note 2 - Summary of Significant Accounting Policies** **Basis of presentation** - The financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain prior-period amounts have been reclassified to conform to the current-period presentation. These reclassifications did not have a material impact on the financial statements. **Use of estimates** - The preparation of the financial statements requires management to make estimates and assumptions that affect the amount of assets and liabilities reported on the statements of financial condition, the disclosure of contingent assets and liabilities and the amounts of revenues and expenses reported during the period. Actual results could differ from those estimates. **Cash and cash equivalents** - Cash and cash equivalents include demand deposits and liquid investments with original maturities of three months or less. In the financial periods under review, Saturn a Brokerage maintained accounts with two financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000 per depositor. Any amounts in the account in excess of the federal insurance limit are regularly transferred into accounts at affiliated banks, allowing those funds to be covered under the FDIC insurance umbrella. **Financial instruments** - The fair values of cash, investments, accounts receivable and accounts payable approximate their carrying values due to their short-term nature. **Investments in equity securities-** The Company carries equity securities at fair value; changes in fair value are recorded within investment income (loss) within the statements of operations. **Receivables** - Most of the Company's receivables relate to distribution services provided to affiliated mutual funds and amounts due from its parent company related to an expense-sharing arrangement. Amounts due from affiliated funds are trade receivables subject to evaluation under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 326, Financial Instruments - Credit Losses, that have been evaluated for collectability. These receivables are regularly settled, thus exposing the Company to unsettled credit exposures for only a short period of time. The Company has not recorded {9}------------------------------------------------ an allowance for credit losses due to the short-term nature of these receivables from affiliated mutual funds and no history of losses on these receivables. The receivable from affiliated mutual funds as of June 30, 2025, has been subsequently collected. **Leases-** The Company leases its main office from the shareholder on a month-to-month basis and elected to not recognize a related right-of-use asset and liability. The short-term lease exception applies to leases with an initial term of 12 months or less that contain no option to purchase the underlying asset that the lessee is reasonably certain to exercise. Short-term lease expense is reported under occupancy expenses in the statements of operations. **Revenue recognition** - In accordance with ASC Topic 606, Revenue from Contracts with Customers, the Company recognizes revenue upon fulfillment of a performance obligation. The Company derives most of its revenue from providing distribution services to clients. Services promised in client agreements are considered performance obligations, and revenue is recognized as performance obligations are satisfied. The authoritative accounting guidance requires an entity to employ a five-step model in applying the revenue standard to include: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations and (5) recognize revenue as each performance obligation is satisfied. The Company distributes mutual funds managed by Saturna Capital, for which it receives distribution fees from the affiliated funds. The funds adopted a distribution plan in accordance with Rule 12b-1 under the 1940 Act applicable to the Investor Shares of each fund. The plan provides that the funds will pay a fee to Saturna Brokerage at an annual rate of up to 0.25% of the average daily net assets applicable to Investor Shares of each fund. The fee is paid to the Company as reimbursement for expenses incurred for distribution-related activity. The Company believes the performance obligation for providing distribution services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Retail brokerage fees are recorded based on the clearing and settlement activities reported by the Company's clearing broker. When a customer enters into a buy or sell transaction, the Company charges a commission on the trade date, with settlement generally taking place the second business day following the trade date. The Company believes that the performance obligation is satisfied on the trade date, when the underlying financial instrument is identified, the price is agreed upon, and the risks and rewards of ownership have been transferred to or from the customer. The economic conditions that affect the firm's operations are related to overall trends in the economy and can be significantly influenced by changes in interest rates and overall market conditions. **Advertising costs** - The Company expenses advertising and marketing costs when incurred. {10}------------------------------------------------ **Income taxes** - Saturna Brokerage is part of a consolidated federal income tax return filed by its parent company, Saturna Capital Corporation. For financial statement purposes, income tax expense (benefit) is calculated as if the Company filed a separate return. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by tax authorities. The tax benefit is measured based on the largest benefit that has a greater-than-SO% likelihood of being realized upon ultimate settlement. Management has analyzed Saturna Brokerage's positions taken on federal income tax returns for all open tax years and has concluded that no adjustments are required in the Company's financial statements. **Accounting standards adopted during the period** - The FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280}: Improvements to Reportable Segment Disclosures, in November 2023. The new standard requires enhanced disclosures for reportable business segments, following the principles outlined in ASC Topic 280. Business segments are components of an entity for which discrete financial information is available and where such information is regularly evaluated by the company's chief operating decision maker (CODM). Saturna Brokerage adopted the new standard for its fiscal year ended June 30, 2025. The standard requires the Company to identify the CODM's title and position, and to describe how the CODM employs profit or loss information to evaluate the segment's significant expenses and performance and allocate resources accordingly. Adoption obligates the Company to apply the new standard retrospectively to the earliest comparative period presented in the financial statements. Because the new accounting standard requires only new note disclosures, its adoption did not have an impact on the company's financial statements. Saturna Brokerage has a single reportable segment: mutual fund distribution. The Company's foundational role is serving as the principal underwriter and distributor of the Amana Mutual Funds Trust and Saturna Investment Trust, its two primary customers. The overwhelming majority of the Company's revenues and expenses are attributable to its distribution of mutual funds within those trusts. Such distribution is conducted throughout the United States and serves to make those funds available on a broad range of platforms for the investor public. The chief operating decision maker is Jane Carten, President and Director. The CODM reviews the financial performance of the mutual fund distribution segment monthly and executes resource allocation decisions throughout the fiscal year. The chief operating decision maker assesses segment performance based on income before income taxes and allocates resources, including employees and capital, to the segment as budgets are established for each fiscal year. Segment assets and liabilities are evaluated by the CODM primarily for the purpose of ensuring the Company's compliance with SEC net capital requirements. {11}------------------------------------------------ Segment financial information for the fiscal years ended June 30, 2025 and 2024, is presented in the table below. | | | Years ended June 30, | | | | | |---------------------------|------|----------------------|----|-------------|--|--| | | 2025 | | | 2024 | | | | Total revenues | | 9,163,282 | \$ | 8,124,009 | | | | Significant expenses | | | | | | | | Platform fees | | 8,904,375 | | 7,929,052 | | | | Employee compensation | | 1,814,618 | | 1,436,284 | | | | Marketing and advertising | | 690,055 | | 583,208 | | | | Other | | 1,077,630 | | 1,213,235 | | | | Total | | 12,486,678 | | 11,161,779 | | | | Loss before income taxes | | (3,323,396) | | (3,037,770) | | | | Income tax benefit | | (798,827) | | (722,360) | | | | Net loss | \$ | (2,524,569) | \$ | (2,315,410) | | | #### **Note 3 - Net Capital Requirements** Saturna Brokerage is subject to the U.S. Securities and Exchange Commission's Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital to ensure that the ratio of aggregate indebtedness to net capital, both as defined, does not exceed 15 to 1. As of June 30, 2025 and 2024, Saturna Brokerage's net capital of \$4.23 million and \$3.88 million was \$4.08 million and \$3.74 million in excess of its minimum net capital required, respectively. The ratio of the Company's aggregate indebtedness to net capital was 0.5149 to 1 and 0.5479 to 1 as of June 30, 2025 and 2024, respectively. #### **Note 4 - Investments** As of June 30, 2025 and 2024, the Company held investments with a fair value of \$1.86 million and \$1.74 million, and a cost basis of \$1.68 million and \$1.62 million, respectively. Equity investments with readily determinable fair values are classified as securities at fair value; changes in their fair value are recognized in current-period earnings. {12}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** | June 30, 2025 | Cost | Unrealized gains | Unrealized
losses | | Fair value | | |--------------------------|-----------------|------------------|----------------------|----------------------|------------|------------| | Securities at fair value | | | | | | | | Mutual funds, domestic | 1,683,152 | 259,472 | | (80,764) | | 1,861,860 | | Total | \$
1,683,152 | \$
259,472 | \$ | (80,764) | \$ | 1,861,860 | | June 30, 2024 | Cost | Unrealized gains | | Unrealized
losses | | Fair value | | Securities at fair value | | | | | | | | Mutual funds, domestic | 1,624,897 | 222,509 | | (103,888) | | 1,743,518 | | Total | \$
1,624,897 | \$
222,509 | \$ | (103,888) | \$ | 1,743,518 | Investment income includes dividend and interest income, capital gain distributions, realized gains or losses on the sale of securities and unrealized gains or losses on securities at fair value. Investment income (loss) included in earnings is summarized below. | | Years ended June 30, | | | | | |-----------------------------------------------|----------------------|---------|----|--------|--| | | 2025 | | | 2024 | | | Dividend income | \$ | 118,609 | \$ | 41,464 | | | Change in fair value of marketable securities | | 60,087 | | 47,090 | | | Capital gain distributions | | 13,414 | | 9,708 | | | Interest income | | 13,326 | | | | | Total | \$ | 205,436 | \$ | 98,262 | | As defined in ASC Topic 820, Fair Value Measurement, fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 establishes a fair value hierarchy, described below, that categorizes into three levels the inputs to valuation techniques used to measure fair value. Level 1 inputs are referenced in valuing the Company's investments in affiliated mutual funds. - Level 1- Unadjusted, quoted prices in active markets for identical assets that the reporting entity can access at the measurement date. - Level 2- Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly. - Level 3 Unobservable inputs when observable inputs are not available. {13}------------------------------------------------ #### **Note 5 - Related-Party Transactions** Saturna Brokerage acts as the distributor for the four mutual funds of Amana Mutual Funds Trust under a Rule 12b-1 distribution plan. Under the plan, the Company recorded income of \$8,788,874 and \$7,818,111 from Amana Mutual Funds Trust in the years ended June 30, 2025 and 2024, respectively. A total of \$15,412,463 and \$13,624,233, respectively, was expensed with respect to distributing the Amana funds in the 2025 and 2024 fiscal periods. Of these amounts, \$6,623,590 and \$5,806,122, respectively, was reimbursed by Saturna Capital per the two companies' expense-sharing agreement. Saturna Brokerage Services also acts as the distributor for the nine mutual funds of Saturna Investment Trust. Under a Rule 12b-1 plan, Saturna Brokerage Services collects distribution fees from two of the funds and for which the Company recorded income of \$115,501 and \$110,940 in the years ended June 30, 2025 and 2024, respectively. A total of \$276,120 and \$263,961 was expensed for distributing the nine funds in the respective periods, of which \$160,618 and \$153,021, respectively, was reimbursed by Saturna Capital. Marketing and other expenses related to distributing the funds are recorded on the books of Saturna Capital. Saturna Brokerage is a wholly owned subsidiary of Saturna Capital Corporation. Due to her stock ownership, the President and Chief Executive Officer, Jane Carten, is deemed to be the Company's controlling person. Mrs. Carten is a director of Saturna Capital, Saturna Brokerage, Saturna Trust Company, Saturna Environmental Corporation and Saturna Sdn Bhd (Malaysia) and is also president (and a trustee) of Saturna Investment Trust. Among other customers, the Company provides brokerage execution services to private accounts and mutual funds managed by Saturna Capital. Effective January 1, 2005, Saturna Brokerage executes transactions for these managed accounts for no commission. This negatively impacts the Company, since it pays clearing and other charges for these transactions. Saturna Brokerage shares its principal offices with Saturna Capital, and its employees are employees of Saturna Capital. The companies maintain an expense-sharing agreement for services provided by Saturna Capital personnel on behalf of Saturna Brokerage. Through May 21, 2025, Saturna Brokerage operated a non-branch location within space occupied by Saturna Trust Company in Henderson, Nevada. The Company reimburses Saturna Trust Company for costs incurred on its behalf per the terms of an expensesharing agreement. Expenses charged to Saturna Brokerage by Saturna Capital and Saturna Trust in 2025 and 2024 were \$2,428,886 and \$1,905,559, respectively. These expenses related primarily to employee compensation, marketing, travel and administrative costs. {14}------------------------------------------------ #### **Note 6 - Taxes** Saturna Brokerage recorded a receivable from Saturn a Capital for the benefit of the taxable loss that the Company reported during the period. For the fiscal years ended June 30, 2025 and 2024, the Company recorded a current income tax benefit of \$810,374 and \$726,446, respectively. Saturna Brokerage also recorded a deferred tax expense of \$11,547 and \$4,086 in the respective periods related to accrued expenses and investment fair value adjustments. #### **Note 7 - Commitments and contingencies** In the normal course of conducting its business, the Company may be party to various legal claims, actions and complaints. Management is not aware of any claims, assessments or contingent liabilities that would have a material adverse effect on the Company's business, its financial position, or the results of its operations. #### **Note 8 - Subsequent Events** Subsequent events are events or transactions that occur after the statement of financial condition date but before the financial statements are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of financial condition, including the estimates inherent in the process of preparing the financial statements. The Company's financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after the statement of financial condition date and before the financial statements are available to be issued. Saturna Brokerage Services has evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued. There were no events or transactions that occurred between the statement of financial condition date and the date that the financial statements were available to be issued that materially impacted the amounts or disclosures in the Company's financial statements. {15}------------------------------------------------ **(A WHOLLY OWNED SUBSIDIARY OF SATURNA CAPITAL CORPORATION)** ## **Computation of Net Capital as of June 30, 2025** per Rule 15c3-1 under the Securities Exchange Act of 1934 {Schedule I} | Total shareholder's equity
Less-Shareholder's equity not allowable for net capital | | 6,701,112 | |---------------------------------------------------------------------------------------|----|-------------| | Total shareholder's equity qualified for net capital | | 6,701,112 | | Deductions and/or charges: | | | | Non-al I owab I e assets | | (2,275,410) | | Net capital before haircuts on securities positions | | 4,425,702 | | Haircuts on securities(computed pursuant to Rule15c3-l(f)): | | | | Other securities | | (237,815) | | Net capital | \$ | 4,187,887 | | Aggregate indebtedness | | | | Total aggregate indebtedness | \$ | 2,176,765 | | Total aggregate indebtedness | \$ | 2,176,765 | | Computation of basic net capital requirement | | | | Minimum net capital required | \$ | 145,118 | | Excess net capital | \$ | 4,042,769 | | Ratio: aggregate indebtedness to net capital | | 0.5149 to 1 | Note: There are no material differences between the preceding corresponding part II of Form X-17A-5 as of June 30, 2025. computation and the Company's {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** The Shareholder and Board of Directors of Saturna Brokerage Services, Inc. We have reviewed management's statements, included in the accompanying Saturna Brokerage Services, lnc.'s Exemption Report in which: 1) Saturna Brokerage Services, Inc., states Saturna Brokerage Services, Inc. claims an exemption under paragraph (k) (2)(ii) of 17 C.F.R. §240.15c3-3 (the exemption provisions); and 2) Saturna Brokerage Services, Inc., states Saturna Brokerage Services, Inc. met the identified exemption provisions throughout the most recent fiscal year except as described below: • A total of four checks were received by registered representatives that were not promptly forwarded to the Company's clearing agent due to an operational oversight. The four checks in question were received on April 9, 2025 and transmitted on April 10, 2025, and were in the amounts of \$1 ,294, \$1 ,266, \$1 ,066, and \$1 ,043. Saturna Brokerage Services, lnc.'s management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Saturna Brokerage Services, lnc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k (2)(ii) of 17 C.F .R. §240.15c3-3. g~ / ill;J {).5\_; *ur* Bellingham, Washington August 29, 2025 {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) #### **Saturna Brokerage Services, lnc.'s Exemption Report** Saturna Brokerage Services, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3(k)(2)(ii). - 2. The Company met the identified exemption provisions in 17 C.F.R. §240.1715c3-3(k) throughout the most recent fiscal year except as described below: - A total of four checks were received by registered representatives that were not promptly forwarded to the Company's clearing agent due to an operational oversight. The four checks in question were received on April 9, 2025 and transmitted on April 10, 2025, and were in the amounts of \$1,294, \$1,266, \$1,066, and \$1,043. Saturna Brokerage Services, Inc. We affirm that, to the best of our knowledge and belief, this Exemption Report is true and correct. Date Kalen Hanna, Chief Financial Officer Date Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.