# INTERNATIONAL RESEARCH SECURITIES, INC. X-17A-5 (2026-03-04) — Broker-dealer annual report - Company: INTERNATIONAL RESEARCH SECURITIES, INC. - Form: X-17A-5 - Filed: 2026-03-04 - Period: 2025-12-31 - Accession: 0000814558-26-000001 - CIK: 814558 - File #: 8-37954 - Type: Broker-dealer - Material weakness: No - Auditor: McBee & Co. P.C. - Auditor location: Dallas, TX - Contact: Michael Holland - Phone: 469-409-7891 - Email: mholland@intlrs.com - Website: intlrs.com - Signed by: Michael Holland (President) Original filing: https://www.sec.gov/Archives/edgar/data/814558/000081455826000001/irs2025audit.pdf --- {0}------------------------------------------------ **OMB APPROVAL UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER** 8-37954 **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** 01/01/2025 **AND ENDING** 12/31/2025 MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION NAME OF** International Research Securities, Inc. **FIRM: TYPE OF REGISTRANT (check all applicable boxes): H Broker-dealer Security-based swap dealer Major security-based swap participant** Check here if respondent is also an OTC derivatives dealer **ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)** 2550 Pacific Ave. Suite 800 (No. and Street) Dallas TX 75226 (City) (State) (Zip Code) **PERSON TO CONTACT WITH REGARD TO THIS FILING** Michael Holland 469-4097891 mholland@intlrs.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\*** McBee & Co. P.C. (Name -if individual, state last,first, and middle name) 718 Paulus Dallas TX 75214 (Address) (City) (State) (Zip Code) 09/22/2009 3631 (Date of Registration with PCAQB)(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 OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION |
;
Michael Holland | ,
best of my knowledge and belief,
that,
to
swear (or affirm)
the | the | |-----------------------------------------------------------|------------------------------------------------------------------------------------------------------------|-------| | to
financial report
pertaining
the
firm
of | International Research Securities,
Inc. | as of | | December
31
i 2025 | ,
and correct.
is true
I
further
swear (or affirm)
that
neither
the
company nor | any | partner,officer, director, or equivalent person,as the case may be,has any proprietary interest in any account classified solely as that of a customer. Signature: Title: President This filing\*\* contains (check all applicable boxes): - **B** (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - **B** (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). - **B** (d) Statement of cash flows. - **B** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - **B** (g) Notes to consolidated financial statements. - **B** (h) Computation of net capital under 17 CFR 240.15c3-lor 17 CFR 240.18a-l,as applicable. - (i) Computation of tangible net worth under 17 CFR 240.18a-2. - **B** (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4,as applicable. - (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - **B** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4,as applicable. - **B** (o) Reconciliations,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-l,or 17 CFR 240.18a-2,as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4,as applicable,if material differences exist,or a statement that no material differences exist. - (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **B** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5,17 CFR 240.17a-12,or 17 CFR 240.18a-7,as applicable. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **B** (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. - **B** (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5,17 CFR 240.18a-7,or 17 CFR 240.17a-12,as applicable. - (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **B** (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-leor 17 CFR 240.17a 12, as applicable. - (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit,or a statement that no material inadequacies exist,under 17 CFR 240.17a-12(k). - (z) Other: - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {2}------------------------------------------------ **Financial Statements With Supplemental Information Year Ended December 31, 2025** {3}------------------------------------------------ ### CONTENTS | REPORT
OF
INDEPENDENT | 1 | | |------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | FINANCIAL
STATEMENTS | | | | Statement
of
financial | 2 | | | condition
of
operations
Statement | | 3 | | stockholder's
equity
Statement
of
changes
in | | 4 | | Statement
of
cash
flows | | 5 | | Notes
to
statements
financial | | 6-11 | | Supplemental
Information | | | | Schedule
I: | of
15c3-l
Computation
Net
Capital
Under
Rule
of
the
Securities
and
Exchange
Commission | 12-13 | | Schedule
II: | Reconciliation
of
the
Computation
of
Net
Capital
15c3-l
the
Securities
Exchange
Under
Rule
of
and
Commission | 14 | | Schedule
III: | Computation
for
Determination
of
Reserve
Requirements
and
Information
Relating
to
the
Possession
or
Control
Requirements
Under
Rule
15c3-3
of
the
Securities
and
Exchange
Commission | 15 | | | | | | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
MANAGEMENT'S
ON
EXEMPTION
REPORT | | 16 | | ANNUAL
EXEMPTION
BROKER-DEALER
REPORT | | 17 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) A Professional Corporation Certified Public Accountants #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** ## **To the Board of Directors and Stockholder of International Research Securities,Inc.** #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of International Research Securities,Inc. as of December 31, 2025,the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion,the financial statements present fairly, in all material respects, the financial position of International Research Securities, Inc. as of December 31, 2025, 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 International Research Securities,Inc/s management. Our responsibility is to express an opinion on International Research Securities, Inc/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 International Research Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplemental information contained in Schedule I, Computation of Net Capital Under Rule 15c3-lof the Securities and Exchange Commission ("Schedule I"), Schedule II, Reconciliation of the Computation of Net Capital Under Rule 15c3-lof the Securities and Exchange Commission ("Schedule II") and Schedule III, Computation for Determination of Reserve Requirements and Information Relating to the Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission ("Schedule III") has been subjected to audit procedures performed in conjunction with the audit of International Research Securities, Inc.'s financial statements. The supplemental information is the responsibility of International Research Securities, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information contained in Schedules I,II and III is fairly stated, in all material respects, in relation to the financial statements as a whole. **McBee & Co., PC** We have served as International Research Securities, Inc.'s auditor since 2016. Dallas, Texas March 3, 2026 Dallas Office 718 Paulus Avenue • Dallas, Texas 75214 • 214.823.3500 www.mcbeeco.com {5}------------------------------------------------ ## **INTERNATIONAL RESEARCH SECURITIES, INC. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2025** ## **ASSETS** | Cash
cash
and
equivalents
Commissions
receivable
owned
at
Securities
lair
value
Other
assets | \$
583,979
58,635
2,115,645
13,272 | |----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------| | TOTAL
ASSETS | 2,771,531
\$ | | STOCKHOLDER'S
AND
LIABILITIES
EQUITY | | | Liabilities | | | Accounts
payable | 25,785
\$ | | payable
Commissions | 6,772 | | Acccrued
on
SBA
interest
payable
loan | 22,877 | | SBA
Loan | 1,636,300 | | Total
Liabilities | 1,691,734 | | Stockholder's
Equity | | | Stock,
100,000
\$1.00
shares
of
Common
authorized | | | value,
par
11,000
shares
issued
and
outstanding | 11,000 | | paid-in-capital
Additional | 491,682 | | Retained
earnings | 577,115 | | Stockholder's
Total
Equity | 1.079.797 | | LIABILITIES
AND
STOCKHOLDER'S
TOTAL
EQUITY | 2,771,531
\$ | {6}------------------------------------------------ ## **INTERNATIONAL RESEARCH SECURITIES, INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2025** | Revenues | | |----------------------------------------------------------------------------|---------------| | Mutual
fund
commission
income | \$
517,994 | | Insurance
commission
income | 183,334 | | 529
Plan
income | 1,043 | | Dividend
income | 210,751 | | Miscellanoues
income | 10 | | Total
Revenues | 913,132 | | Expenses | | | Compensation | 341,325 | | Regulatory
fees
expenses
and | 9,326 | | Occupancy | 33,581 | | Professional
fees | 48,470 | | Interest
expense | 61,193 | | Other
operating
expenses | 57,148 | | Expenses
Total | 551,043 | | Income
before
other
income
and
provision
for
taxes | 362,089 | | Realized
unrealized
gains
on
securities
owned
and
net | 171,765 | | Income
before
provision
for
taxes | 533,854 | | Provision
state
income
taxes
for | | | Net
Income | \$
533,854 | {7}------------------------------------------------ ## **INTERNATIONAL RESEARCH SECURITIES, INC. STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2025** | | Common
Stock | Additional
Paid-in-Capital | Retained
Earnings | Total | |-------------------------------------|-----------------|-------------------------------|----------------------|---------------| | Balance,
31,
December
2024 | 11,000
\$ | 491,682
\$ | 368,261
\$ | 870,943
\$ | | Stockholder
distributions | | | (325,000) | (325,000) | | Net
Income | | | 533,854 | 533,854 | | Balance,
31,
2025
December | \$
11,000 | 491,682
\$ | 577,115
\$ | \$1,079,797 | {8}------------------------------------------------ ## INTERNATIONAL RESEARCH SECURITIES, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025 ## CASH FLOWS FROM OPERATING ACTIVITIES | Net
income | \$
533,854 | |----------------------------------------------------------------------------------|---------------| | to
to
net
cash
Adjustments
reconcile
net
income
provided | | | (used)
by
operating
activities: | | | on
and
net
securities
owned
Realized
unrealized
gain | (171,765) | | Changes
assets
and
in
liabilities | | | Increase
receivable
commissions
in | (16,489) | | Increase
other
assets
in | (1,554) | | Increase
accounts
payable
in | 2,169 | | Increase
commissions
payable
in | 2,001 | | Decrease
accrued
on
SBA
loan
interest
payable
in | (32,394) | | Net
(used)
cash
by
provided
operating
activities | 315,822 | | FROM
CASH
FLOWS
INVESTING
ACTIVITIES | | | of
Proceeds
from
sale
investments | 240,269 | | re-invested
owned
Dividends
securities
in | (193,679) | | Net
(used)
cash
by
provided
investing
activities | 46,590 | | FROM
FINANCING
CASH
FLOWS
ACTIVITIES | | | Stockholder
distributions | (325,000) | | Net
cash
used
in
financing
activities | (325,000) | | Net
cash
cash
increase
and
equivalents
in | 37,412 | | Cash
of
cash
year
and
equivalents
at
beginning | 546,567 | | Cash
at
of
and
cash
end
year
equivalents | \$
583,979 | | DISCLOSURES:
SUPPLEMENTAL
CASH
FLOW | | | Interest
payments | \$
93,588 | {9}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2025** # **NOTE 1 -Summary of Significant Accounting Policies** #### **Nature of Operations and Basis of Presentation:** International Research Securities, Inc. (the "Company") is a broker-dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("F1NRA") and is a member of the Securities Investor Protection Corporation ("SIPC"). The Company is considered "Non-Covered Firm" exempt from 17 C.F.R. § 240.15c3~3 and is filing an Exemption Report relying on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. The Company limits its business activities exclusively to municipal securities broker, including 529 plans, mutual fund retailer on application way only basis and broker selling variable life insurance or annuities. The Company does not hold customer funds or securities. The Company's customers are located throughout the United States. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles and to general practices within the securities industry. #### **Cash and Cash Equivalents:** Cash and cash equivalents consists of deposits with banks, money market funds, and all highly liquid investments, with maturities of less than ninety days, which are not segregated and deposited for regulatory purposes. #### **Current Expected Credit Losses (CECL):** The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis in accordance with FASB ASC 326-20, *Financial Instruments - Credit Losses.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the statement of financial condition that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported in Credit Loss expense. Commissions receivable are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for credit losses on these receivables. Management records an allowance for credit losses based on a collectability review of specific accounts. Any receivables deemed uncollectible are written off against the allowance. {10}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** # **NOTE 1 -Summary of Significant Accounting Policies (Continued)** #### **Leases:** The Company accounts for its leases in accordance with FASB ASC 842, *Leases.* The Company is a lessee in a short-term non-cancellable operating lease for office space. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a lease liability and a right of use (ROU) asset at the commencement date of the lease. The Company has elected, for all underlying classes of assets, not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost associated with its short-term leases on a straight-line basis over the lease term. #### **Revenue Recognition:** The Company earns revenue for selling unaffiliated mutual funds, variable annuity products, and 529 plans. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage to, amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company's control including market volatility and client behavior (such as how long client holds their investment or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur. #### **Income Taxes:** The Company files as an "S" corporation for Federal income tax purposes. The Company's net income is taxed at the shareholder level rather than at the corporate level for Federal income tax purposes, and thus, no provision for Federal income taxes has been made in the accompanying financial statements. The Company is liable for income taxes in the State of Texas, subject to certain exemptions. Any potential interest and penalty associated with a tax contingency, should one arise, would be included as a component of income tax expense in the period in which the assessment arises. The Company's federal and state income tax returns are subject to examination over various statutes of limitations, generally ranging from three to five years. #### **Use of Estimates:** The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. {11}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** # **NOTE 1 -Summary of Significant Accounting Policies (Continued)** ### **Segment Reporting:** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of 529 plans, mutual funds, and variable annuity commissions. The Company has identified its President as the chief operating decisions maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital, which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or to pay distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Segment financial information is identical to that presented in the accompanying financial statements. #### **Fair Value of Financial Instruments:** Securities owned are held for investment purposes and are recorded at fair value in accordance with FASB ASC 820, *Fair Value Measurements and Disclosures*, as described in Note 7. The increase or decrease in fair value is credited or charged to operations. The Company's other financial asset and liability amounts reported in the statement of financial condition are shortterm in nature and approximate fair value. # **NOTE 2 -Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, should not exceed 15 to 1 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn, or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 31, 2025, the Company had net capital of \$688,021 and net capital requirements of \$112,783. The Company's ratio of aggregate indebtedness to net capital was 2.5 to 1. # **NOTE 3 -Exemption from Rule 15c3~3** The Company is considered "Non-Covered Firm" exempt from 17 C.F.R. § 240.15c3~3 and is filing an Exemption Report relying on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. The Company limits its business activities exclusively to municipal securities broker, including 529 plans, mutual fund retailer on application way basis only and broker selling variable life insurance or annuities. # **NOTE 4 -Contingencies** There are currently no asserted claims or legal proceedings against the Company; however, the nature of the Company's business subjects it to various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such future action against the Company could have adverse impact on the financial condition, results of operations, or cash flows of the Company. The Company had no commitments or contingencies that were required to be accrued or disclosed. {12}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** # **NOTE 5 -Concentration of Credit Risk** The Company is engaged in brokerage activities in which counterparties primarily include mutual funds, 529 plans, and variable annuity companies throughout the United States. In the event the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. The Company's financial instruments that are subject to concentrations of credit risk primarily consist of cash, cash equivalents, and securities at fair market value. The Company places its cash with three high credit quality institutions. At times, such cash may be in excess of the FDIC insurance limits or SIPC protection. The Company believes that it is not exposed to any significant risk related to cash. # **NOTE 6 - Related Party Transactions** The sole stockholder of the Company, a registered securities representative, generates most of the Company's revenues and related compensation expense. The Company is economically dependent upon the sole stockholder due to the concentration of services he provides. The Company and various entities are under common control, and the existence of that control creates operating results and financial position significantly different than if the companies were autonomous. # **NOTE 7 -Securities Owned** FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. - Level 2 inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly. - Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Following is the description of the valuation methodologies used for the Company's assets measured at fair value. There have been no changes in the methodologies used at December 31, 2025. Mutual Funds-Mutual funds are generally priced at the ending net asset value ("NAV") provided by the service agent of the mutual funds. Level 1: | Mutual
funds | \$2,115,645 | |--------------------------------------------|-------------| | Securities
owned
at
fair
value | \$2.115.645 | {13}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2025** # **NOTE 8 -Market Risks and Uncertainties** Mutual funds are subject to market, or systematic, risk because there is no way to predict or control what will happen in the future or whether a given mutual fund will increase or decrease in value. The Company's mutual fund investments are subject to market or economy decline, causing the investments to lose value regardless of the performance or profitability of the issuing entity. This risk and uncertainty can subject the Company to losses that can affect its net capital requirement. # **NOTE 9 -Liabilities Subordinated to Claims of General Creditors** During the year ended December 31, 2025, there were no subordinated liabilities to the claims of general creditors. Accordingly, a statement of changes in liabilities subordinated to claims of general creditors has not been included in these financial statements. # **NOTE 10 -Recently Issued Accounting Pronouncements** Recently issued accounting standards that have been issued or proposed by the Financial Accounting Standards Board ("FASB") or other standards-setting bodies are not expected to have a material impact on the Company's financial position or results of operations. The Company plans to adopt any new standards in line with prospective timelines. # **NOTE 11 -Long-Term SBA Loan** In April 2022, the Company received a \$1,486,300 low-interest Economic Injury Disaster Loan (E1DL) loan from the Small Business Administration (SBA) that helps businesses overcome the effects of the pandemic by providing working capital to meet operating expenses. The loan was consolidated with the \$150,000 SBA loan received in March 2021 for a total SBA loan of \$1,636,300. The loan is a 30-year loan with a 3.75% interest rate, where monthly payments of \$7,799 started in October 2023. The Company has accrued interest on the loan of \$22,877 at December 31, 2025. The loan is secured by the Company's tangible and intangible property and guaranteed by the stockholder. Maturities of the loan payable are as follows: | Year
Ending | | |----------------|-----------------| | December
3E | Amount | | 2026 | \$
16,549 | | 2027 | 33,418 | | 2028 | 34,693 | | 2029 | 36,016 | | 2030 | 37,390 | | Thereafter | 1,478,234 | | | 1.636.300
\$ | # **NOTE 12 -Office Lease** The Company leases office space under a twelve-month agreement which will expire August 31, 2026. Rental expense for the office lease totals \$33,581 for the year. {14}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2025** # **NOTE 13 -Subsequent Events** Subsequent events have been evaluated for potential recognition and disclosure through March 3, 2026, which represents the date the financial statements were available for issuance and concluded that no additional disclosures are required. {15}------------------------------------------------ **Supplemental Information** **Pursuant to Rule 17a-5** **of the Securities Exchange Act of 1934** **as of** **December 31, 2025** {16}------------------------------------------------ ## **Schedule I** ## **INTERNATIONAL RESEARCH SECURITIES, INC. Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission As of December 31, 2025** ## **COMPUTATION OF NET CAPITAL** | stockholder's
Total
net
capital
equity
qualified
for | \$
1,079,797 | |--------------------------------------------------------------------------------|-----------------| | and/or
charges
Deductions | | | assets:
Non-allowable | | | Commissions
receivable | (51,863) | | assets
Other | (13,272) | | Net
capital
before
haircuts
on
securities
positions | 1,014,662 | | where
Haircuts
on
securities
(computed,
applicable,
pursuant | | | 15c3-l(f))
to
pursuant
Rule | (326,641) | | Net
Capital | \$
688,021 | | INDEBTEDNESS
AGGREGATE | | | condition:
Items
statement
of
financial
included
in | | | Acccounts
payable | \$
25,785 | | payable
Commissions | 6,772 | | Accrued
interest
payable
on
SBA
loan | 22,877 | | SBA
loan | 1,636,300 | | aggregate
Total
indebtedness | \$
1,691,734 | {17}------------------------------------------------ ### **Schedule I (continued)** ## **INTERNATIONAL RESEARCH SECURITIES, INC. Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission As of December 31, 2025** ## **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT** | net
capital
Minimum
required | | |---------------------------------------------------------------------------------------------------------------------------------------------------|----------------| | (6
2/3%
indebtedness)
of
aggregate | \$
112,783 | | Net
Capital
Requirement
of
Minimum
dollar
Reporting
Dealer
Broker
or | \$
5,000 | | Net
Capital
Requirement
Minimum | \$
112,783 | | Net
of
Capital
Excess
Required
Minimum
in | \$
575,238 | | Net
greater
10%
aggregate
Capital
less
of
of
indebtedness
or
120%
of
net
capital
requirement
minimum | \$
518,848 | | OF
NET
RATIO
AGGREGATE
INDEBTEDNESS
TO
CAPITAL | 2.5
to
1 | {18}------------------------------------------------ ### **Schedule II** ## **INTERNATIONAL RESEARCH SECURITIES, INC. Reconciliation of the Computation of Net Capital under Rule 15c3-l of the Securities and Exchange Commission As of December 31, 2025** | | Based
Amounts
on
Original
Report
FOCUS | Based
Amounts
on
Amended
Report
FOCUS | Difference
Increase
(Decrease) | |--------------------------------------------------------------------|-------------------------------------------------------|------------------------------------------------------|--------------------------------------| | Net
Capital | | | | | member's
Total
from
statement
of
equity | | | | | financial
condition | 1,081,010
\$ | 1,079,797
\$ | ( 1,213)
\$ | | and/or
charges:
Deduction | | | | | Non-allowable
assets
included
the
following
in | | | | | capitions:
statement
of
financial
condition | | | | | Commissions
receivable | (51,863) | (51,863) | | | Other
assets | (13,272) | (13,272) | | | and/or
charges
Total
deductions | (65,135) | (65,135) | | | applicable,
(computed,
where
Haircuts
securities
on | | | | | 5c3-l(f))
to
pursuant
Rule | (326,641) | (326,641) | | | Net
capital | 689,234
\$ | \$
688,021 | (1,213)
\$ | | net
capital
required
Minimum | 112,701 | 112,783 | 82 | | Excess
net
capital | 576,533
\$ | \$
575,238 | (1,295)
\$ | | Total
aggregate
indebtedness | 1,690,521
\$ | 1,691,734
\$ | 1,213
\$ | | aggregate
to
Ratio
of
indebtedness
net
capital | 2.5
to
1 | 2.5
to
1 | | {19}------------------------------------------------ #### **Schedule III** ### **INTERNATIONAL RESEARCH SECURITIES, INC. Computation for Determination of Reserve Requirements and Information Relating to the Possession or Control Requirements Under Rule 15c3~3 of the Securities and Exchange Commission As of December 31, 2025** #### **EXEMPTIVE PROVISIONS** The Company is considered "Non-Covered Firm" exempt from 17 C.F.R. § 240.15c3~3 and is filing an Exemption Report relying on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. The Company limits its business activities exclusively to municipal securities broker, including 529 plans, mutual fund retailer on application way basis only and broker selling variable life insurance or annuities. As a Non-Covered Firm, the Computation of Determination of Reserve Requirements and Information Relating to the Possession or Control Requirements are not required. {20}------------------------------------------------ #### **Report of Independent Registered Public** **Accounting Firm on Management's** **Exemption Report** {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) A Professional Corporation Certified Public Accountants ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** ## **To the Stockholder of International Research Securities,Inc.** We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) International Research Securities, Inc. ("the Company") did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits its business activities exclusively to municipal securities broker, including 529 plans, mutual fund retailer on application way only basis where the funds are payable to the issuer or its agent and not the company, and broker selling variable life insurance or annuities. In addition,the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year, December 31, 2025, without exception. International Research Securities, Inc/s management is responsible for compliance with the provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 and related SEC Staff Frequently Asked Questions and its statements throughout the most recent fiscal year, December 31, 2025. 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 International Research Securities, Inc/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 Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5, and related SEC Staff Frequently Asked Questions. **McBee & Co., PC** Dallas, Texas March 3, 2026 Dallas Office 718 Paulus Avenue • Dallas, Texas 75214 • 214.823.3500 www.mcbeeco.com {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) #### **BROKER-DEALER ANNUAL EXEMPTION REPORT** **DECEMBER 31, 2025** International Research Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief the Company states the following: - (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and - (2) The Company is filing this Exemption report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the company limits its business activities exclusively to municipal securities broker, including 529 plans, mutual fund retailer on application way only basis where the funds are payable to the issuer or its agent and not the company, and broker selling variable life insurance or annuities, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3- 3), throughout the most recent fiscal year without exception. ## **INTERNATIONAL RESEARCH SECURITIES, INC.** I, Michael Holland, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct By: Michael Holland CEO / - to , 2026 2550 **Pacific** Ave.,Ste 800\* **Dallas,** TX \* 75226 \* *p* 469-409-7891\* Member FINRA, **SI**PC Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.