# TAYLOR SECURITIES, INC. X-17A-5 (2023-11-30) — Broker-dealer annual report - Company: TAYLOR SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-11-30 - Period: 2023-09-30 - Accession: 0000801966-23-000001 - CIK: 801966 - File #: 8-36712 - Type: Broker-dealer - Material weakness: No - Auditor: Cherry Bekaert, LLP - Auditor location: Nashville, TN - Contact: George Moody - Phone: 6153721356 - Email: gmoody@taylorws.com - Website: taylorws.com - Signed by: Martha Mason (President) Original filing: https://www.sec.gov/Archives/edgar/data/801966/000080196623000001/2audit2023.pdf --- {0}------------------------------------------------ ## FINANCfAL STATEMENTS, rORMX-l?A-5, PART Iff SUPPLEMENTARY INFORMATION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM SEPTEMBER 30. 2023 {1}------------------------------------------------ ## FINANCIAL STATEMENTS, FORMX-17A-5, PART Ill SUPPLEMENTARY INFORMATION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM SEPTEMBER 30,2023 #### CONTENTS PAGE | Form X-17 A-5, Part 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 . | 10-14 | | SUPPLEMENTARY INFORMATION | | | Computation of Net Capital. . | 16 | | Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3 | 17 | | Information Relating to the Possession or Control Requirements Under Rule 15c3-3 | 18 | | Reconciliation, Including Appropriate Explanation, ofthe Computation of Net
Capital Under Rule l5c3-l and the Computation for Determination ofthe Reserve
Requirements Under Exhibit A ofRule l5c3-3 . | 19 | | Reconciliation, Between the Audited and Unaudited Statements of Financial Condition
With Respect to Methods ofConsolidation . | 20 | | Material Inadequacies Found to Exist or Found to Have Existed Since the Date of
Previous Audit.
. | 21 | | Report of Independent Registered Public Accounting Firm . | 22 | | Exemption Report
| 23 | | Report of Independent Registered Public Accounting Finn on Applying Agreed-Upon Procedures | 24 | | Schedule of Assessment and Payments [Transitional Assessment Reconciliation (Fonn SIPC-7)] | 25-27 | {2}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > **ANNUAL REPORTS FORM X-17A-5 PART Ill** OMS APPROVAL OMS Number: 3235-0123 Expires. o,t, 31, 2023 Esttmated average burden hours per respons.e: ll SEC FILE NUMBER FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 10/1/2022 MM/00/YY AND ENDING 9/30/2023 MM/DD/YY A. REGISTRANT IDENTIFICATION NAME oF FIRM: Taylor Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer 0 Security-based swap dealer 0 Check here if respondent is also an OTC derivatives dealer 0 Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 1 00 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• | | | | Cher~y Bekaert, LLP | {Name - If individual, state last, first, and middle name) | | | | (Address) | 222 Second Avenue South Suite 1240 Nashville
(City) | TN
(State) | 37201
{Zip Code) | | (Date of Registration with PCAOB)(i( applicable) | | | (PCAOB Registration Number, if applicable) | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ll), 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 | | 1. Martha S. Mason | |--|--------------------| | | | 1, 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 may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_3_Picture_4.jpeg) Signature~ *s* Title: #### This filing\*\* contains (check all app!icab t:"V)f~e-\*""' ,~0.., - 1!1 (a) Statement of financial condition. 'Ss,on E~ - 1!1' (b) Notes to consolidated statement of financial condition. - rJ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of \\\\II Ill II II /Jill - / comprehensive income (as defined in § 210.1-02 of Regulation S-X). - rJ1 (d) Statement of cash flows. - ~ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0 (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. - 1!1' (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - 0 (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. - 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - fi (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - 0 (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. - U (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - 0 (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-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - 0 (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. f'!!' (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 the statement of financial condition. - lV (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. - 0 (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 240.15c3-1e or 17 CFR 240.17a-12, J as applicable. - *f5t* (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audlt, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). 0 (z) Other=------------------------------------ - uro request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S{e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **Report of Independent Registered Public Accounting Firm** To the Board of Directors Taylor Securities, Inc Brennwood, 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, 2023, 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, 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 ("SEC") and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ### **Auditor's Report on Supplementary Information** The supplementary information included in the Computation of Net Capital Rule 15c3-1 of SEC has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplementary information is the responsibility of the Company's management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplementary information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with 17 C.F.R Section 240.17a-5. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Tay1or Securities, Inc's auditor since 2018. Nashville, Tennessee November 27, 2023 {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION ## SEPTEMBER 30,2023 ## ASSETS ### CURRENT ASSETS | Cash and cash equivalents | \$547,280 | |------------------------------|-----------| | Deposit with clearing broker | 25,168 | | Commissions receivable | 265,292 | | TOTAL ASSETS | \$831.1i0 | ### LIABILITIES AND STOCKHOLDERS' EQUITY | CURRENT LIABILITIES | | |----------------------------------------------------------|-----------| | Accounts payable and accrued expenses | \$407,177 | | STOCKHOlDERS' EQUITY | | | Common stock, \$1 stated value; 2,000 shares authorized, | | | 1,250 shares issued and outstanding | 1,250 | | Additional paid-in capital | 263,100 | | Retained earnings | 166,213 | | TOTAL STOCKHOLDERS' EQUITY | 430.563 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$811~40 | The accompanying notes are an integral part ofthe financial statements. {6}------------------------------------------------ ### STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30. 2023 | REVENUES | | |------------------------------------|-------------| | Commissions | \$ 507,553 | | Registered investment advisor fees | 1.439.009 | | TOTAL REVENUES | 1,946,562 | | OPERA TfNG EXPENSES | 2,241,983 | | OPERATING INCOME | -295,421 | | OTHER INCOME | I 764 | | LOSS BEFOR.J:: STATE INCOME TAXES | -293,657 | | STATE INCOME TAX EXPENSE | -0- | | NET LOSS | \$ -22J~657 | The accompanying notes are an integral part of the financial statements. {7}------------------------------------------------ ### STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY ### FOR THE YEAR ENDED SEPTEMBER 30, 2023 | | COMMON
STOCK | ADDITIONAL
PAID-IN
CAPHAL | RETAINED
EARNINGS | TOTAL
STOCKHOLDERS'
EQUITY | |----------------------------|-----------------|---------------------------------|----------------------|----------------------------------| | BALANCE-SEPTEMBER 30, 2022 | \$
l ,250 | \$
28,100 | \$
459,870 | \$489,220 | | CONTRIBUTION FROM MEMBERS | \$
0 | \$ 235,000 | \$
0 | \$235,000 | | NET INCOME | \$
0 | \$
0 | \$ -293.657 | \$ -293,657 | | BALANCE-SEPTEMBER 30, 2023 | \$
1,25Q | \$
263,1 QQ | \$
166 ~11 | 430,563
\$ | The accompanying notes are an integral part of the financial statements. {8}------------------------------------------------ ### STATEMENT OF CASH FLOWS ### FOR THE YEAR ENDED SEPTEMBER 30, 2023 | CASH FLOWS FROM OPERA TTNG ACTIVITIES | | |-------------------------------------------------------|-----------------| | Cash received from securities companies and investors | \$
1,919,355 | | Cash received from stockholders | 235,000 | | Cash paid to suppliers and employees | (2, 184,008) | | Other income received | 1,764 | | NET CASH DECREASE IN OPERATING ACTIVITIES | (27.889) | | NET DECR!EASE IN CASH AND CASH EQUIVALENTS | (27,889) | | CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR | 169
575, | | CASH AND CASH EQUIVALENTS-END OF YEAR | \$
547,280 | | | | ## RECONCIUA T ION OF NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES | Net Loss | \$ (293,657) | |-----------------------------------------------------------------------------------------|--------------| | Adj
ustments to reconcile net income to net cash
used in
operating activities: | | | Increase in operating assets: | | | Deposit with clearing broker | (25) | | Deposit to Paid in Capital | 235,000 | | Commissions receivable | (27,
183) | | Increase in operating liabilities: | | | Accounts payable and accrued expenses | 57,976 | | TOTAL ADJUSTMENTS | 265.768 | | NET CASH PROVIDED BY OPERATING ACTIVITIES | \$ | The accompanying notes are an integral part of the financial statements. {9}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### SEPTEMBER 30. 2023 ### NOTE I -NATURE OF OPERATIONS 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 are 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 ofless than three months to be cash equivalents. ### Commissions Receivable The Company considers commiSSIOns receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required at September 30, 2023. ### 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, deferred 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 ofbeing sustained under examination by the applicable taxing authorities. Management !has performed its evaluation of all income tax positions taken on all 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. 2023 #### NOTE2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICJES(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 2020 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 | 507,553
\$ | | Registered Investment Advisor Fees | 1,439,009 | | Total revenue from contracts with customers | \$
1 946,562 | Effective October I, 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 to (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 uncertainty associated with the variable consideration is resolved. {11}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS (CONTINUED) ## SEPTEMBER 30, 2023 ## 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 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, 2023 and November 27, 2023 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 financ ial 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 normal business risk. The Company also has an account with a broker-dtaler 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, 2023 ## NOTE 3-CONCENTRATION OF RISK (CONTINUED) There are multiple business risks associated with operating the Company. It trades with a limited· number of counterparties 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 counterparty 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 clearing agreement with Raymond James, the Compa11y 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 \$76,618 on September 30, 2023 and is included in accounts payable and accrued expenses in the accompanying Statement of Financial Condition. Total salaries, bonuses and commissions included in the operating expenses that were paid to stockholders and other related parties amounted to \$775,722 in 2023. 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 parties noted in the preceding paragraph, fees paid by the Company to the affiliate for services rendered amounted to \$89:8,816 in 2023. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTSCCONTINUEO) #### SEPTEMBER 30. 2023 ## NOTE 6- CAPITAL REQUIREMENTS The Company is subject to the SEC Uniform Net Capital Rule (Rule l5c3-l). 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 ifthe resulting net capital ratio would exceed 10 to I. On September 30, 2023, the Company had net capital, as defined, of \$138,416, which was \$88,416 in excess of its required net capital of \$50,000. The Company's net capital ratio was 2.94 to I. #### NOTE7-CONT~GENCY During the year ended September 30, 2021, an SEC examination found a deficiency relating to the Company's receipt of 12b-1 fees and the purchase of certain share classes on behalf of some clients. The Company initially recorded a liability of\$301,368 during the year ended September 30,2021 for the remediation to certain clients of 12b-l fees we received, and the amount of liability at September 30, 2022 was \$265,661. However, during the year ended September 30, 2023, it was determined that the total liability for repayment should be \$716,041, including the amount already reimbursed to clients. As a result of recording this additional expense, the members made a capital contribution of \$235,000 during the year. The total remaining amount to be repaid as of September 30, 2023 is \$311,655. The Company has not had any further communication with the SEC since the conclusion of their initial examination. {14}------------------------------------------------ SUPPLEMENTARY INFORMATION {15}------------------------------------------------ #### COMPUTATION OF NET CAPITAL #### SEPTEME.BER 30. 2023 | TOTAL STOCKHOLDERS' EQUITY | \$
430,563 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------| | LESS NONALLOW ABLE ASSETS AND HAIRCUTS
Raymond James restricted account
RIA fee commissions due
money market funds maintained with clearing broker at 2%
Haircuts - | 25,168
262,784
4 195 | | TOTAL NONALLOWABLE ASSETS AND HAIRCUTS | 292,147 | | NET CAPITAL (AGREES TO COMPANY'S SEPTEMBER30, 2023
UNAUDITED FOCUS REPORT-PART IIA) | | | NET CAPITAL REQUIRED | | | EXCESS CAPITAL | \$
8_8A.L6 | | AGGREGATE INDEBTEDNESS
Accounts payable and accrued expenses
TOTAL AGGREGATE INDEBTEDNESS | \$
407.177
407.177
\$ | | NET CAPITAL LESS THE GREATER OF 10% OF TOTAL AGGREGATE | | | INDEBTEDNESS OR 120% OF NET CAPITAL REQUIRED
PERCENTAGE OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | \$ 78.4 16
2.942 | {16}------------------------------------------------ ### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANTTO RULE 15c3-3 #### SEPTEMBER 30,2023 The Company is exempt from the requirements of Rule 15c3-3 under Section K (2)(ii) of the Rule. {17}------------------------------------------------ ### INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 ### SEPTEMBER 30. 2023 The Company is exempt from the requirements of Rule 15c3-3 under Section K (2)(ii) of the Rule. {18}------------------------------------------------ ## RECONCILIATION, INCLUDING APPROPRIATE EXPLANATION, OF THE COMPUTATION OF NET CAPITAL UNDER RULE l5c3-l AND THE COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS UNDER EXHIBIT A OF RULE 15c3-3 ### SEPTEMBER 30,2023 The net capital computed on Page 16 and the Company's computation of net capital on its September 30, 2023 Focus Report-Part IIA agree. As a result, no reconciliation is necessary. The Company is exempt from the requirements of Rule 15c3-3 under Section K (2)(ii) of the Rule. {19}------------------------------------------------ ## RECONCILIATION BETWEEN THE AUDITED AND UNAUDITED STATEMENTS OF FINANCIAL CONDITION WITH RESPECT TO METHODS OF CONSOLIDATION ### SEPTEMBER 30. 2023 Not applicable. {20}------------------------------------------------ ## MATERIAL INADEQUACIES FOUND TO EXIST OR FOUND TO HAVE EXISTED SINCE THE DATE OF THE PREVIOUS A UDIT ### SEPTEMBER 30.2023 None. {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Board of Directors Taylor Securities, Inc. BrentNood, 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 the Company claimed an exemption from 17 C.F.R. Section 240.15c3-3: (k)(2)(ii) (exemption provision) and (2) the Company stated that the Company met the identified exemption provision throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provision 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 the 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. 8~LUJ Nashville, Tennessee November 27, 2023 {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) September 30, 2023 Mr. Tim Baxter FINRA- District 5 303 Perimeter Center North Suite 550 Atlanta, GA 30346 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, 2023. Taylor Securities, Inc. met the above-mentioned exemption provi sions throughout the year ended September 30, 2023 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. BrenhNood, Tennessee We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation ("SIPC") Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation ("Form SIPC-7") for the year ended September 30, 2023. 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, 2023. Additionally, SIPC has. agreed to and acknowiledged 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 sufficierncy of the proced:ures described below either for the purpose for which this report has been requested 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, 2023 with the Total Revenue amount reported in Form SIPC-7 for the year ended September 30, 2023, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, 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 adjustments, 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 accorrdance 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, 2023. 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. 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\_ e:t.~~LLfJ November 27, 2023 cbh.com {24}------------------------------------------------ #### GENERALASSESSMENTFORM For the fiscal year ended 9/30/2023 | | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
TAYLOR SECURITIES INC | | SEC No.
8-36712 | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|-----------------| | | For the fiscal period beginning _; :: /1.::::. 20=:2=-=2--- | and ending | 9/30/2023 | | | 1 | Total Revenue (FOCUS Report- statement of Income (Loss) - Code 4030) | | | \$ 1,948,326.00 | | 2 | Additions: | | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | | | d Interest and dividend expense deducted in determining item 1. | | | | | | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profrt management of or participation in
underwriting or distribution of securities. | | | | | | g Net loss from securities in investment accounts. | | | | | | h Add lines 2a through 2g. This is your total additions. | | | \$0.00 | | 3 | Add lines 1 and 2h | | | \$ 1,948,326.00 | | 4 | Deductions: | | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | | \$ 294,926.00 | | | | b Revenues from commodity transactions. | | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | | \$3,151 .00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | | e Net gain from securities in investment accounts. | | | | | | f 100% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) ofthe Act). | | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions In excess of \$100,000 require documentation | | \$1 ,329.00 | | | 5 | a Total interest and dividend expense (FOCUS Report- Statement
of Income (Loss)-
Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report
- Statement of Income (Loss) -
Code 3960) | | | | | | c Enter the greater of line Sa or 5b | | \$0.00 | | | 6 | Add lines 4a through 4h and Sc. This is your total deductions. | | | \$ 299,406.00 | | | | | | | {25}------------------------------------------------ SIPC-7 37 REV0722 #### SECURITIES INVESTOR PROTECTION CORPORATION #### GENERAL ASSESSMENT FORM For the fiscal year ended 9/30/2023 | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | \$ 1 ,648,920.00 | | | | | |--------------------|------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------|--------------|-------------|--| | 8 | MuHiply line 7 by .0015. This is your General Assessment. | | | | | | | 9 | Current overpayment/credit balance, if any | | \$0.00 | | | | | 10 | | General assessment from last filed 2023 SIPC-6 or 6A | | \$ 1,368.00 | | | | 11 | b Any other overpayments applied
d Add lines 11a through 11c | a Overpayment(s) applied on all 2023 SIPC-6 and 6A(s)
c All payments applied for 2023 SIPC-6 and 6A(s) | \$0.00
\$0.00
\$ 1,368.00 | \$ 1,368.00 | | | | 12 | LESSER ofline 10 or11d. | | | | | | | | 13 a Amount from line 8
b Amount from line 9 | | \$ 2.4 73.00
\$0.00 | | | | | | c Amount from line 12 | | | \$ 1,368.00 | | | | | | d Subtract lines 13b and 1 3c from 13a. This is your assessment balance due. | | | \$ 1,105.00 | | | 14 | Interest (see instructions) for
0
days late at 20% per annum | | | | | | | 15 | | IAmount you owe SIPC. Add lines 13d and 14. | | | \$1,105.001 | | | 16 | | Overpaymentlcred~ carried forward (if applicable) | | | \$0.00 | | | SEC No.
8-36712 | | Designated Examining Authority
DEA: FINRA | FYE
2023 | Month
Sep | | | | | MEMBER NAME | TAYLOR SECURITIES INC
MAILING ADDRESS 100 WINNERS CIRCLE N STE 400
BRENTWOOD, TN 37027 | | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy | TAYLOR SECURITIES INC | GEORGE WOOD MOODY | | | |-----------------------|------------------------|--|--| | (Name of SIPC Member) | (Authorized Signatory) | | | | 11/2/2023 | gmoody@taylorws.com | | | | (Date) | (e-mail address) | | | | | | | | Completion of the "Authorized Signatory" line will be deemed a signature. This form and the assessment payment are due 60 days after the end of the fiscal year. {26}------------------------------------------------ ![](_page_26_Picture_0.jpeg) #### Thank you for your payments I, as agent for the SJPC Member fiilil and for which I have signatory authority, authorize SJPC electronically to debit the account ending in 0680, in the amount of \$1 ,105.00 on or the next business day after 11/02/2023. I understand that because this is an electronic transaction, these funds may be withdrawn from the account as soon as today. This authorization will remain in full force and effect until I notify SIPC by telephone at (202) 371-8300 AND by email at ACH@SJPC.org before 4:00p.m. ET on today's date to withdraw authorization. ## Reference# 82330656919061 | Payment Dale | SEC Registration No. | | | |-----------------------|-----------------------------|--|--| | 11/02/2023 | 8-36712 | | | | | | | | | Member Name | Email Receipt to | | | | TAYLOR SECURITIES INC | gmoody@taylorws.com | | | | | | | | | Payment Type | Device Type | | | | Direct Payment | Web | | | | | | | | | | | | | | Additional Comments | Rooting Number
*****8637 | | | | | | | | | | | | | | Bank | | | | | PINNACLE BANK | | | | | | | | | | Name on Ac:c:oanl | Payment Metbod | | | | TAYLOR SECURJTIES INC | Business checlcing ***0680 | | | | | | | | | Stato1 | Total Payment Amount | | | | Pending | | | | \$1,105.00 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.