# TAYLOR SECURITIES, INC. X-17A-5 (2022-11-30) — Broker-dealer annual report - Company: TAYLOR SECURITIES, INC. - Form: X-17A-5 - Filed: 2022-11-30 - Period: 2022-09-30 - Accession: 0000801966-22-000001 - CIK: 801966 - File #: 8-36712 - Type: Broker-dealer - Material weakness: No - Auditor: Cherry Bekaert - Auditor location: Brentwood, TN - Contact: George Moody - Phone: 6153721356 - Email: gmoody@taylorws.com - Website: taylorws.com - Signed by: George Moody (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/801966/000080196622000001/docts.pdf --- {0}------------------------------------------------ ## FINANCIAL STATEMENTS, FORMX-17A-5, PART III SUPPLEMENTARY INFORMATION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM SEPTEMBER 30, 2022 {1}------------------------------------------------ #### FINANCIAL STATEMENTS, FORM X-17A-5, PART Ill SUPPLEMENTARY INFORMATION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM SEPTEMBER 30, 2022 #### CONTENTS | | PAGE | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | Form X-17A-S, Pait III
| 3-4 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

| 5 | | FINANCIAL STATEMENTS | | |


Statement of Financial Condition

| 6 | | Statement of Operations | 7 | | Statement of Changes in Stockholders' Equity | 8 | | Statement of Cash Flows | 9 | | Notes to Financial Statements | l 0-14 | | SUPPLEMENTARY INFORMATION | | | Computation of Net Capital | 16 | | Computation for Determination of Reserve Requirements Pursuant to Rule I 5c3-3 | 17 | | Information Relating to the Possession or Control Requirements Under Rule I 5c3-3. | 18 | | Reconciliation, Including Appropriate Explanation, of the Computation of Net Capital
Under Rule l 5c3-I and the Computation for Determination of the Reserve Requirements
UnderExhibitAofRule 15c3-3 | 19 | | Reconciliation, Between the Audited and Unaudited Statements of Financial Condition with
Respect to Methods of Consolation | 20 | | Material Inadequacies Found to Exist or Found to Have Existed Since the Date of Previous




Audit



| 21 | | Report of Independent Registered Public Accounting Finn | 22 | | Exen1ption Repo11 | 23 | | Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon





Procedures


| 24 | | Schedule of Assessment and Payments [ Transitional Assessment Reconciliation (Form SIPC-7)] | 25-26 | {2}------------------------------------------------ # **UNITED STATES SECURITIES ANO EXCHANGE COMMISSION** **Washington, O.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART** Ill | | SEC FIILE NUM BER | |--|-------------------| **FACING PAGE** | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|---------|---------|--------------------------------------------|--| | | AND ENDING 9/30/2022
FILING FOR THE PERIOD BEGINNING 1 Q/01 /2021 | | | | | | | MM/DD/YY | | | MMI/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME oF FIRM: Taylor Securities, Inc. | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer | | | □ Major security-based swap participant | | | ADDRIESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 100 Winners ,circle North Suite 400 | | | | | | | | (No. and Street) | | | | | | Brentwood | TN | | | 37027 | | | (City) | | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | George Moody | 615-372-1356 | | | gmoody@taylorws.com | | | (Name), | (Area Code - Telephone Number) | | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Cherry Bekaert LLP | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 222 Second Avenue South Suite 1240 | Nashville | | TN | 37201 | | | (Address) | {City) | | (State) | (Zip Code) | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | | 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-5(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. {3}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Martha s Mason swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Taylor Securities, Inc. as of 9/30 , 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 ma be, has any proprietary interest in any account classified solely as that of a customer. *ldi8cJ~* ![](_page_3_Picture_4.jpeg) | Signature:ltl~~~ | | | |------------------|--|--| | | | | | | | | #### **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement offinancial 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 240.1Sc3-1 or 17 CFR 240. 18a-1, as applicable. - ~ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - ~ (j) Computation fo r 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 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - ~ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (o) Recornciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - I!! (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **l!!!I** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lBa-7, as applicable. - □ (t) Independent public accountant's report based on an examination of the statement of financial condition. - I!!!! (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. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a•S or 17 CFR 240.18a-7, as applicable. - I!! (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 240.1Sc3-le or 17 CFR 240 .. 17a-12, as applicable. - I!!!! (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). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - ""'To request confidential treatment of certain portions af this filing, see 17 CFR 240.17a-5(e)(3} or 17 CFR 240.1Ba-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Board of Directors Taylor Securities, Inc Brentwood, Tennessee #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Taylor Securities, Inc. (the "Company") as of September 30, 2022 the related statements of operations, changes in stockholders' equity, and cash flows for the year then ended, and the related notes and schedules (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 September 30, 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 responsilbility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm register,ed 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 aind significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplementary information included in the Computation of Net Capital Rule 15c3-1 of Securities and Exchange Commission has been subjected to audit procedures performed in conjunction with the audit of tihe 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 tihe 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. Section 240.1 ?a-5. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. ~ *g~ LUJ* We have served as Taylor Securities, Inc's auditor since 2018. Nashville, Tennessee November 22, 2022 {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION ## SEPTEMBER 30, 2022 ## ASSETS #### CURRENT ASSETS | Cash and cash equivalents | \$575,169 | |------------------------------|-----------| | Deposit with clearing broker | 25,143 | | Commissions receivable | 238,109 | | TOTAL ASSETS | \$818,9)1 | #### LIABILITIES AND STOCKHOLDERS' EQUITY | CURRENT LIABILITIES | | |----------------------------------------------------------|---------------| | Accounts payable and accrued expenses | \$349,20
1 | | STOCKHOLDERS' EQUCTY | | | Common stock, \$1 stated value; 2,000 shares authorized, | | | 1,250 shares issued and outstanding | 1,250 | | Additional paid-in capital | 28, I 00 | | Retained earnings | 459,870 | | TOTAL STOCKHOLDERS' EQUITY | 489,220 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$.83_8.421. | The accompanying notes are a n integral pa1t of the financial statements. {6}------------------------------------------------ ## STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2022 | S
REYE | | |------------------------------------|-------------| | Commissions | \$ 370,752 | | Registered investment advisor fees | 1,335,144 | | TOTAL REVENUES | 1,705,896 | | OPERA TING EXPEN E | 1,580,536 | | OP RA1TNG INCOME | 125
,360 | | OTHER INCOME | 698 | | TNCOM
BEFORE STATE INCOME TAXES | 126,058 | | STATE INCOME TAX
XP. NS | -0- | | NET INCOM | \$ 126 058 | The accompanying notes are an integral part of the fmancial statement . {7}------------------------------------------------ ## **ST** A TEMENT OF CHANGES IN STOCKHOLDERS' EQUITY ### FOR THE YEAR ENDED SEPTEMBER 30, 2022 | | COMMON
STOCK | ADDITIONAL
PAID-IN
CAPITAL | RETAINED
EARNINGS | TOTAL
STOCKHOLDERS'
EQUITY | |-------------------------------|-----------------|----------------------------------|----------------------|----------------------------------| | BALANCE-SEPTEMBER 30, 2021 | 1,250
\$ | 28,100 | 333,812
\$ | 363,162
\$ | | NET INCOME | -0- | -0- | 126,058 | 126,058 | | BALANCE-
SEPTEMBER 30 2022 | 1,250
\$ | 28,100
\$ | 459,810
\$ | 489,220
\$ | The accompanying notes are an integral part of the financial statements. {8}------------------------------------------------ ## STATEMENT OF CASH l~LOWS ## FOR THE YEAR ENDED SEPTEMBER 30, 2022 | CASH FLOWS FROM OPERA TING A TMTIES | | |--------------------------------------------------------|------------------| | Cash received from securiti.es companies and investors | \$
1,747,869 | | Cash paid to suppliers and employees | (1 ,631
,429) | | Other income received | 698 | | NET CA HINCREA E
IN OPERATING A TIVITIE | 117,138 | | NET INCREASE IN CASH AND CA H EQ IV AL -NT | 117 138 | | CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR | 458,031 | | CASH AND CA H EQUIVALENT -END OF YEAR | 575 169 | #### RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES | Net Income | \$ 126,058 | |------------------------------------------------------------------------------------------|------------| | used m
Adjustm nts to
reconcile net income to
net cash
operating activities: | | | Decrease io operating assets: | | | Deposit with clearing broker | (4) | | Commissions receivable | 41 ,976 | | Decrease in operating liabilities: | | | Accounts payable and accrued expenses | (50,892) | | TOT AL ADJU TMENT | (8,919) | | NET CA H PROVIDED BY OPERA TING ACTIVITIE | 117,138 | The accompanying notes are an integral part of the financial statements. {9}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### SEPTEMBER 30, 2022 ## NOTE I -NATURE OF OPERATlONS Taylor Securities, Inc. (the "Company") is engaged in the secunt1es business, primarily handling mutual fund, stock and bond trade transactions and providing investment advisory services. #### NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of presentation The financial statements a re presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### Cash and cash equivalents The Company considers all highly liquid investments with original maturities of less than three months to be cash equivalents. #### Commissions Receivable The Company considers comm1ss1ons receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required at September 30, 2022. #### Income taxes The Company has elected to be taxed as an "S" corporation under the Internal Revenue Code. Accordingly, all federal taxable income and losses pass through to the individual stockholders for inclusion in their personal income tax returns, and the Company is only liable for state income taxes. Temporary differences between the financial statement and income tax (cash method) bases of the Company's assets and liabilities are not significant. Accordingly, defe1Ted state income taxes have not been recognized. Management performs an evaluation of all income tax positions taken or expected to be taken in the course of preparing the Company's income tax returns to determine whether the income tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. Management has performed its evaluation of all income tax positions taken on a ll open income tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard. Accordingly, there are no provisions for income taxes, penalties, or interest receivable or payable relating to uncertain income tax positions in the accompanying financial statements. {10}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (CONTINUED) #### SEPTEMBER 30, 2022 #### NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) #### Income Taxes (Continued) The Company files income tax returns in the U.S. federal jurisdiction and the State of Tennessee. The Company's U.S. federal income tax returns for years prior to 2019 are no longer open to examination. The State of Tennessee has a statute of limitations of three years from the end of the year in which the return is filed. #### Revenue Recognition Commission income and related expenses from customers' securities transactions are recorded on a trade date basis. The Company provides investment advisory services on a daily basis. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided that period. | Revenue from contract with customers | | |---------------------------------------------|---------------| | Commissions | \$ 370,752 | | Registered lnvestn;ient Advisor Fees | 1,335,
144 | | Total revenue from contracts with customers | Jl?05,896 | Effective October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five -step model il:o (a) identify the contract(s)with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the unce,tainty associated with the variable consideration is resolved. {11}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS (CONTINUED) ## SEPTEMBER 30.2022 ## NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Securities transactions Revenue and related clearing expenses from securities transactions are recorded on the trade date. All of the Company's trading activities are executed through and cleared by Raymond James and Associates, Inc. ("Raymond James") or written subscription agreements between investment companies and investors, with the Company acting as introducing broker dealer. #### Registered investment advisor fees Registered investment advisor fees are recognized as earned on a pro rata basis over the term of the contract. #### Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with GAAP 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. #### Events occurring after reporting date The Company has evaluated events and transactions that occurred between September 30, 2022 and November 22, 2022 the date the financial statements were available to be issued, for possible recognition or disclosure in the financial statements. ## NOTE 3-CONCENTRATION OF RISK The Company maintains cash balances at financial institutions whose accounts are insured by the Federal Deposit Insurance Corporation ("FDIC") up to statutory limits. The Company's cash balances may at times exceed statutory limits. The Company has not experienced any losses in such accounts and management considers this to be a nonnal business risk. The Company also has an account with a broker-dealer that is the custodian of the Company's securities and a portion of its cash and is covered by the Securities Investor Protection Corporation ("SIPC"). SIPC protects each customer's accounts up to \$500,000, limited to \$250,000 on claims for cash. Accounts held by the broker-dealer are also covered through Lloyd's of London. Under this program, cash is covered up to \$1,900,000 and fully paid securities are not subject to any dollar amount limitation. The SIPC and additional protection do not insure against market risk. {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (CONTINUED) #### SEPTEMBER 30, 2022 #### NOTE 3- CONCENTRA TION OF RISK (CONTINUED) There are multiple business risks associated with operating the Company. It trades with a limited number of counter-parties which include institutional money managers, national broker-dealers, regional broker-dealers and inter-dealer brokers. The value of some trades may be very large compared to the Company's capital. A counter-party's failure to pay for or deliver securities may result in significant losses to the Company as a result of changes in market value between the original transaction and the subsequent re-sale or re-purchase of the securities involved. The loss or reduction of trading volume with a counter-patty may have a material adverse effect on the Company's business, financial condition, results of operations and/ or cash flows. #### NOTE 4 -DEPOSIT WITH CLEARING BROKER In connection with its correspondent c learing agreement with Raymond James, the Company has agreed to maintain a \$25,000 deposit account with Raymond James. The deposit is held in a Raymond James money market fund and is returnable to the Company following termination of the correspondent clearing agreement within thirty days of the closing or the transfer of all of the Company's customers' accounts. Therefore, the deposit has been classified as a current asset, but is non-allowable, for the purpose of net capital computation per current Securities and Exchange Commission ("SEC") rules and regulations. #### NOTE 5 -RELATED PARTY TRANSACTIONS Accounts payable to stockholders for commissions and registered investment advisory fees totaled \$69,132 on September 30, 2022. Total salaries, bonuses and commissions included in the operating expenses that were paid to stockholders and other related parties amounted to \$658,997 in 2022. The stockholders of the Company are also stockholders of an affiliate that provides office space, management and administrative services to the Company. In addition to the amounts paid to stockholders and other related pa11ies noted in the preceding paragraph, fees paid by the Company to the affiliate for services rendered amounted to \$808,404 in 2022. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS(CONT INUED) #### SEPTEMBER 30, 2022 #### NOTE 6 - CAPITAL REQUIREMENTS The Company is subject to the SEC Uniform Net Capital Rule (Rule I 5c3-I), which requires the Maintenance of minimum net capital of \$50,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. The rule of the "applicable" Exchange also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At September 30, 2022, the Company had net capital, as defined, of \$221,673, which was \$171,673 in excess of its required net capital of \$50,000. The Company's net capital ratio was 1.57 to I. #### NOTE 7 - CONTINGENCY During the year ended September 30, 2021 , an SEC examination found a deficiency relating to the Company's receipt of I 2b- I fees and the purchase of certain share classes on behalf of some clients. The Company initially recorded a liability of \$301,368 for the remediation to certain clients of 126-1 fees we received. Total fees that were repaid to customers during the year amounted to \$35,707 and the liability recorded was \$265,661 at September 30, 2022. The Company has not had any further communication with the SEC since the conclusion of their initial examination. {14}------------------------------------------------ SUPPLEMENTARY INFORMATION {15}------------------------------------------------ ### TAYLOILSEC,URITIES INC. #### COMPUTATfON OF NET CAPITAL #### SEPTEMEBER 30, 2022 | TOTAL STOCKHOLDERS' EQUITY | \$
489,220 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------| | LESS NONALLOWABLE ASSETS AND HAIRCUTS
Raymond James restricted account
RIA fee commissions due
Prepaid taxes
money market funds maintained with clearing broker at 2%
Haircuts - | 25,143
238,093
440
3 871 | | TOTAL NONALLOWABLE ASSETS AND HAIRC
UTS | 267,547 | | NET CAPITAL (AGREES TO COMPANY'S SEPTEMBER 30, 2022
UNAUDITED FOCUS REPORT-PART !IA) | | | N T CAPITAL REQUIRED | | | EXCESS CAPITAL | 7
\$ | | AGGREGATE INDEBTEDNESS
Accounts payable and accrued expenses | 349,201
\$ | | TOTAL AGGREGATE INDEBTEDNESS | 20 | | NET CAPITAL LESS THE GREATER OF 10% OF TOTAL AGGREGATE
INDEBTEONESS OR 120% OF NET CAPITAL REQUIRED | 16 6 3 | | PERCENTAGE OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | 157.53 | {16}------------------------------------------------ ## COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANTTO RULE l5c3-3 ## SEPTEMBER 30, 2022 The Company is exempt from the requirements of Rule 15c3-3 under Section K (2)(ii) ofthe Rule. {17}------------------------------------------------ ## INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE I Sc3-3 ## SEPTEMBER 30, 2022 The Company is exempt from the requirements of Rule 15c3-3 under Section K (2)(ii) of the Rule. {18}------------------------------------------------ ## RECONCJLIATION, INCLUDING APPROPRIATE EXPLANATION, OF THE COMPUTATION OF NET CAPITAL UNDER RULE I 5c3-I AND THE COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS UNDER EXHIBIT A OF RULE l 5c3-3 ## SEPTEMBER 30, 2022 The net capital computed on Page 16 and the Company's computation of net capital on its September 30, 2022 Focus Report- Part IIA agree. As a result, no reconciliation is necessary. The Company is exempt from the requirements of Rule I Sc3-3 under Section K (2)(ii) of the Rule. {19}------------------------------------------------ ## RECONCILIATION BETWEEN THE AUDITED AND UNAUDITED STATEMENTS OF FINANCIAL CONDITlON WITH RESPECT TO METHODS OF CONSOLIDATION ## SEPTEMBER 30, 2022 Not applicable. {20}------------------------------------------------ ## MATERIAL TNADEOUAClES FOUND TO EXIST OR FOUND TO HA VE EXISTED SINCE THE DATE OF THE PREVIOUS AUDIT ## SEPTEMBER 30, 2022 None. {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Board of Directors Taylor Securities, Inc. Brentwood, Tennessee We have reviewed management's statements, included in the accompanying Exemption Report, in which **(1)** Taylor Securities , Inc. (the "Company") identified the following provision of 17 C.F .R. Section 15c3-3(k) under which !'he Company claimed an exemption from 17 C. F .R. Section 240.15c3-3: (k)(2)(ii) (exemption provision) and (2) the Company stated the Company met the identified exemption p,rovision throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provision aind 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 tlhe Company's compliance with the exemption provision. 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 provision set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Nashville, Tennessee November 22, 2022 {22}------------------------------------------------ September 30, 2022 Mr. Tim Baxter FINRA- District 5 1100 Poydras Street Energy Centre.Suite 850 New Orleans.LA. 70163-0802 Re: SEC Rule 15c3-3 Exemption Report Dear Mr. Baxter; Pursuant to new requirements with respect to SEC Rule 17a-5, Taylor Securities, Inc. claims exemption from Rule 15c3-3 under paragraph (k}(2}(ii) of the Rule ("Introduces Accounts and Does Not Hold Customer Funds or Securities") as of and for the year ended September 30, 2022. Taylor Securities, , Inc. met the above-mentioned exemption provisions throughout the year ended September 30, 2022 without exception. Martha S. Mason President {23}------------------------------------------------ ![](_page_23_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm On Applying Agreed-Upon Procedures** To the Board of Directors Taylor Securities, Inc. Brentwood. Tennessee We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchang,e Act of 1934 and in the Securities Investor Protection Corporation ("SIPC") Series 600 Rules, which are enumerated below on t1he accompanying General Assessment Reconciliation ("Form SIPC-7") for the year ended September 30, 2022. Management of Taylor Securities, Inc. (the "Company") is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended September 30, 2022. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requeste,d or for any other purpose. The procedures we performed and our associated findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part Ill for the year ended September 30, 2022 with the Total Revenue amount reported in Form SIPC-7 for the year ended September 30, 2022 noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papeirs, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustmernts, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not, conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended September 30, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. {24}------------------------------------------------ We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. Nashville, Tennessee November 22, 2022 {25}------------------------------------------------ | SIPC-7 | | |--------|--| | | | ## SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 **SIPC-7** # (36 -REV 12/ 18) General **Assessment** Reconciliation (36 -REV 12118) ## For lhe lisca l year ended **9/30/2022** \_\_ \_\_\_ \_ (R,ead r.a relu ll y the i11s tructions in your Work ing Copy be fore com plet ing lhis Form) #### **TO BE FILED BY ALL SIPC MEMBERS WITH FISCA L YEAR ENDINGS** 1. Name of Member, ad dress, Designa ted Examining Authority, 193 4 Act regist ration no. and monlh in which li sca l yea r ends lor purposes of the audit requirement of SEC Rule 17a -5: | | I
Taylor Securities, Inc.
100 Winners Circle N | 7
Note: II any of the i11lorrr1atior1 shown on tl1e
mail ing label requires correction, please e mail
any corrections to form@sipc.org and so | | |-------|------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | Suite 400 | indicate on the form filed. | | | | Brentwood
, TN 3,7027 | Name and te lephone number ol person to
contact respecting this form. | | | | L | _J
George Moody 615-372-1356 | | | | | | | | 2. A. | General Assessment (item 2e from page 2) | \$2049.00 | | | | B. Less payment made with SIPC -6 filed (exclude interest)
4/29/2022 | ( 1062.00 | | | | Date Pa ,d | | | | | C. Le ss prior ove rpayment applied | | | | | 0 . Assessment balance due or (overpayme nt) | 987.00 | | | E. | Inte rest comput ed on late payment (see instruction E) lor _____ days at 20% per annum | | | | F. | Tota l assess ment ba la nce and int erest due (or overpayment carried forwa rd) | | | | | q
D
G. PAYMENT:
✓ the box
I
Check mailed to P.O. Box
Funds Wired
ACH
Total (must be same as F above) | __________
_ | | | | \$(
H. Overpayment carried fo rward | ________
_ | | | | 3. Sub sidiaries (S) and pr edecessors (P) included in this form (give name and 1934 Act registrat ion number). | | | | The SIPC member subm itting tt1is lorm and the
person by whorn it is executed represent thereby
tha t all info rmation contained h,erein is true , correct
and comp lete. | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------| | | (T ille) | **This** form **and the assessment payment is due 60 days after the end** of **the fiscal year. Retain the Working Copy of !his form for a period of not less than 6 years , the latest 2 years in an easily accessible place.** | | a: Dates
: | | | | | |------------------------|-------------------|-------------------------------|-----------|---------------|--------------| | 1.1.,1
3:
1.1.,1 | | Postmarked | Rece ived | Reviewed | | | >
1.1.,1 | Calculations | | | Documentation | Forward Copy | | a:
Q. | c.) Excep tions : | | | | | | | | en Disposition of exceptions: | | | | {26}------------------------------------------------ ## **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** | Amou nls for the fiscal period | | | |--------------------------------|--|------------------------| | beginning _10_1\_111_,r,_2 _1 | | ___
_ | | and en ding | | _-,_,.,._,.,_,, ____ _ | | Item No . | 2a. Total revenue (FOCUS Line 12/Pan I IA Line 9. Cocle 4030 ) | | Elim inate cents
\$1,706,594 | |-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------------------------------| | 21i . Additions : | ( I) Total revenues from the securities business of subsidiaries (except loreign subsidiaries ) and
predecessors no! included above. | | | | | (2) Nel loss lrom princ ipal transa cIIons in securilies in trading accounts. | | | | | (3) Nel loss !rom princ ipa l lransac lions in com modities in lrading accounls. | | | | | (4) In teres t and dividend expense deducled in determining item 2a . | | | | | (5) Net loss from management ol or partici pation in the underwriting or distribu ti on ol securities. | | | | | (6 ) Expenses ol her than advertising . printing , registration fees and legal iees deducted in determining net
pro it from managemenl of or participation in unde rw riting or distribution of securities. | | | | | (7) Nel loss from securilies in inveslment accounts . | | | | | To ial add itions | | 0 | | 2c . Deductions: | ( 1) Reven ues from the dislribulion of shares of a registered open end inves tment company or unit
,nvesiment trust. from the sale of variable annuities. lrom the business of insurance, from investment
advisory services rendered lo reg istered investment com panies or insurance company separate
accounls, and from transactions in securily fu ures products. | 338,915 | | | | (2) Revenues from commodity transact ions. | | | | | (3) Commissions. lloor brokerage and clearance paid to olher SIPC members in conneclion with
securities tra nsact ions . | | 1678 | | | (4) Rei mbursements for poslage in connection with proxy solicitalion. | | | | | (5) Net gain irom secu rities in inves trnen l accounts. | | | | | (6) 100% ol commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bi lls, ba nkers acceptances or commercial paper tha t malure nine mon th s or less
from issuance da te. | | | | | (7) Direcl expenses ol printi ng advertising and legal lee s incuired in connection with other revenue
related lo the securities business (revenue defined by Section 6(9)(L) of lhe Act) . | | | | | (8) Other revenue not related either directly or indirectly lo lhe securities business .
(See Instruction C): | | | | | interest | | 111 | | | (Deduclions in excess ol \$ I 00,000 requ ire documentalion) | | | | | (9) (i) Total i nteresl and divide nd expense (FOCUS Line 22/PART !IA Line 13,
Code 4075 plus line 2b(4) above) bu t not in excess
or to tal interes l and dividend income. | __________
\$ _
_ | | | | (i i) 40% ol margin interest earned on custome rs securiti es
accounts (40% of FOCUS line 5. Code 3960) | __________
\$
_ | | | | Enler the greater of line (i) or (ii) | | | | | To al deducti ons | | 340,704 | | | 2d. SIPC Net Operating Reve nue s | | \$
1,365,890 | | | 2e. General Assessment @ .0015 | | \$ 2049.00 | | | | | (to page 1, tine 2. A.) | {27}------------------------------------------------ ## SIPC-7 Instructions This form is to be liled by al l members ol the Securities Investor Prolec tion Corporation whose fiscal years end in 201 1 and annuall y therealter. The form logelher wit h th e paymen t is due no latEH lhan 60 days afler the end of lhe fiscal year, or alter membership termination. Amounts reported he rein rnusl be rea dily reconcilable with the member's records and the Securi ties and Exchange Commission Rule 1 ?a-5 report filed. Questions perlaining lo this form should be directed to SIPC via e-mail at lorrn@sipc.o rg or by te lepnoning 202-371-8300. A. For the purposes of this form, the term ''SIPC Net Operating Revenues" shall mean gross revenues from the securities business as defined in or pursuant to the applicable sections of the Securities Investor Protection Ac t of 1970 ("Act") and Article 6 of SIPC's bylaws (see page 4), less item 2c(9) on page 2. B. Gross revenues of subsidiaries, except foreign subsidiaries, are required to be included in SIPC Net Operating Revenues on a consolidated basis except lor a subsidiary filing separately as explained hereinafter. If a subsidiary was required to file a Ru le 17a-5 annual audited statement of income separately and is also a SIPC member, th en such subsidiary must itself file S IPC-7, pay the assessment, and should not be consolidated in your SIPC-7. SIPC Net Operating Revenues of a pred ecessor member which are not included in item 2a, were not reported separately and the SIPC assessments were not paid thereon by such predecessor, shall be included in item 2b(1). - C. Your General Assessment should be compu ted as fol lows: - (1) I ine 2a For the applicable period enter total revenue based upon amounts reported in your Ru le 17a-5 Annual Audited Statement of Income prepared in conformity with generally accepted accounting pri nciples appl icable to securities brokers and dealers. or if exempted from that rule, use X-17A-5 (FOCUS Report) Line 12, Code 4030. - (2) **Adjustments** The purpose of the adjustments on page 2 is to determine SIPC Net Operating Revenues. - ( a) A dditioa s Lines 2b ( **1)** through 2b( 7) assure that assessable income and gain items of SIPC Net Operating Revenues are totaled, unreduced by any losses (e.g., if a net loss was incurred fo r the period lrom all trans ac ti ons in trading account securities, that net loss does not reduce other assessable revenues). Thus, line 2b(4) would include all short dividend and interest payments in cluding those incurred in reverse conversion accounts, rebates on stock loan positions and repo intere st which have been netted in determining line 2(a). - (b} Deductions Line 2c (1) through line 2c(9) are either provided for in the statue, as in deduction 2c(1), or are allowed to arrive at an assessment base consisting of net operating revenues from the securities business. For example, line 2c(9) allows for a deduction of either the total of interest and dividend expense (not to exceed interes t and dividend income), as reported on FOCUS line 22/PART IIA line 13 (Code 4075), plus line 2b(4) or 40% of interest earned on customers' securities accounts (40% of FOCUS Line 5 Code 3960). Be certain to ,complete both li ne (i} and (i i), entering the greater of the two in the far right column. Dividends paid to shareholders are not considered ' Expense" and thus are not to be included in the deduclion. Likewise, interest and dividends paid to partners pursuant to the partnership agreements would also not be deducted. It the amount reported on line 2c (8) aggregates to \$100,000 or greater, supporting documentation must accompany the form that identifies these deductions. Exampfes of support information include; contractual agreements, prospectuses, and limited partnership documentation. - (i) De termine your SIPC Net Operating Revenues, item 2d, by adding lo item 2a, th e toti:11 of item 2b, and deducting the total of item 2c. - (ii) Multiply SIPC Net Operating Revenues by the applicable rate. Enter the resulling amount in item 2e and on line 2A of page 1. - (i ii) Enter on line 2B the assessment due as reflected on the SIPC -6 previously filed . - (iv) Subtrac t line 2B and 2C from line 2A and en te r the difference on line 2D. This is the balance due for the period. - (v) En ter interest computed on late payment (it applicable) on line 2E. - (v i) Enter the total due on line 2F an d the payment of the amo unt due on line 2G. - (vii) Enter overpayment carried forward (if any) on line 2H, 0. Any SIPC member which is also a bank (as defined in th e Securities Exchange Act of 1934) may exclude from SIPC Net Operating Revenues dividends and interest received on securities in its investment accounts to the extent that it can demonstrate to SIPC's satisfacti on that such securities are held, and such dividends and interest are received, solely in connection with its operations as a bank and not in connection with its operations as **a** broker, dealer or member of a national securities exchange. Any member who excludes from SIPC Net Operating Revenues any dividends or intere st pursuant to the precedi ng sentence shall file with this form a supplementary statement setti ng forth the amount so exc luded and proof of its entitlement to such exclusion. E. Interest on Assessments If al l or any part of assessment payable under Section 4 of lhe Ac l has not been postmarked wi thin 15 days alter th e due date thereof, the member shall pay, in addition to the amount of the assessment, interest at the rate of 20% per annum on the unpaid portion of the asses sment for each day it has been overdue. F. Securities and Exchange Commission Rule 17a-5(e) (4) requires those, who are not exempted lrom the audit requirement of the rule and whose gross revenues are in excess of \$500,000 to fi le a supplemental independent public accountants report covering this SIPC-7 no later than 60 days after their fiscal year ends. **Mail this completed form to SIPC together with a check for** the **amount due, made payable** to **SIPC,** using the enclosed return PO BOX envelope, pay via ACIH Debit Autho,rization through SIPC's ACH system at www.sipc.org/for-members/assessments or wire the payment to: On the wire identify the name of the firm and its SEC Registration 8-# and label it as "for assessment." Please fax a copy of the assessment form to (202)-223-1679 or e-mail a copy to form@sipc.org on the same day as the wire. {28}------------------------------------------------ ## **From Section 16(9) of the Act:** The term "gross revenues from the se curities business" means the sum ol (bu t without duplication)-· (A) commissions earn ed in connection with transactions in securities effecte d lor customers as agent (net of commissions paid to other brokers and dealers in connec tion wi th suc!1 transactions) and markups with respect to purchases or sales of securities as principal; (B) charges for execu ting or clearing transac tions in securities for ott1er brokers a11 d dealers ; (C} the net realized gain, ii any, from principal tran sactions in securi ties in trading accounts ; (D) the nel profit, if any, from the management of or participation in the underwriting or distribution ol securities ; (El interest earned on cus lorners· securities accounts; (F} fees lor investment advisory services (except when rendered to one or more registe red investment companies or insurance company separate accounts) or accoun t supervision with respect to securities; (G) lees for the sol icita tion of proxies wi th respect lo, or lenders or exchanges ol, securities ; (H) income from service clrarges or other surcharges with respect to secu.chaoge. !LC | |--------------------------------------------------| | Ct11ca90 8oatd Op11ons F.xclHHl(JC. lm;nrporated | | 4
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