# STARSHAK WINZENBURG & CO X-17A-5 (2026-03-12) — Broker-dealer annual report - Company: STARSHAK WINZENBURG & CO - Form: X-17A-5 - Filed: 2026-03-12 - Period: 2025-12-31 - Accession: 0000861088-26-000005 - CIK: 861088 - File #: 8-42370 - Type: Broker-dealer - Material weakness: No - Auditor: Pasquesi Sheppard, LLC - Auditor location: Lake Forest, IL - Contact: Thomas Starshak - Phone: 3123157047 - Signed by: Joseph Starshak (President) Original filing: https://www.sec.gov/Archives/edgar/data/861088/000086108826000005/Starshak2025Exemption.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # STARSHAK WINZENBURG & CO. FINANCIAL STATEMENTS DECEMBER 31, 2025 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT {1}------------------------------------------------ ![](_page_1_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF STARSHAK WINZENBURG & CO. ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of STARSHAK WINZENBURG & CO. (an Illinois S corporation) 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 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 STARSHAK WINZENBURG & CO. 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 STARSHAK WINZENBURG & CO.'s management. Our responsibility is to express an opinion on STARSHAK WINZENBURG & CO.'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 STARSHAK WINZENBURG & CO. 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 include 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. {2}------------------------------------------------ ### Auditor's Report on Supplemental Information The supplementary information in Schedules I and II has been subjected to audit procedures performed in conjunction with the audit of STARSHAK WINZENBURG & CO.'s financial statements. The supplemental information is the responsibility of STARSHAK WINZENBURG & CO.'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 is fairly stated, in all material respects, in relation to the financial statements as a whole. Pasquesi Sheppard LLC Pasquesi We have served as STARSHAK WINZENBURG & CO.'s auditor since 2006. Lake Forest, Illinois February 11, 2026 {3}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2025 | ASSETS | | | |----------------------------------------------|--------------|---------------| | CURRENT ASSETS: | | | | Cash and cash equivalents | | \$
479,483 | | Accounts receivable | | 40 | | Due from shareholder | | 9,343 | | Prepaid expenses | | 28,540 | | Total current assets | | \$
517,406 | | FIXED ASSETS: | | | | Office equipment | \$
36,284 | | | Less — Accumulated depreciation | (36,284) | - | | OTHER ASSETS: | | | | Operating lease ROU asset | | 214,853 | | FINRA and security deposits | | 6,724 | | Total assets | | \$
738,983 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | CURRENT LIABILITIES: | | | | Accounts payable | | \$
1,300 | | Credit card payable | | 1,144 | | Current portion of operating lease liability | | 39,813 | | Total current liabilities | | \$
42,257 | | LONG-TERM LIABILITIES: | | | | Long-term operating lease liability | | \$
202,425 | | STOCKHOLDER'S EQUITY: | | | | Common stock -- | | | | 5,000 shares authorized with no par value; | | | | 1,000 shares issued and outstanding | \$
50,500 | | | Additional paid-in capital | 4,649,917 | | | Retained deficit | (4,206,116) | 494,301 | | Total liabilities and stockholder's equity | | \$
738,983 | {4}------------------------------------------------ ### STATEMENT OF OPERATIONS ### FOR THE YEAR ENDED DECEMBER 31, 2025 | REVENUE: | | | |---------------------------------------------|---------------|-----------------| | Management and investment advisory income | | \$
335,040 | | OPERATING EXPENSES: | | | | Employee compensation and benefits | \$
228,424 | | | Payroll taxes and expenses | 12,373 | | | Insurance | 4,670 | | | Occupancy | 80,229 | | | Computer and office supplies | 5,515 | | | Communication and data processing | 4,752 | | | Postage and delivery | 199 | | | Dues and subscriptions | 70,513 | | | Professional fees | 28,090 | | | Regulatory fees, taxes and license expenses | 11,953 | | | Travel expenses | 4,120 | | | Advertising | 68 | | | Meals and entertainment | 10,819 | | | Donations | 2,640 | 464,365 | | Net loss | | \$
(129,325) | {5}------------------------------------------------ #### STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY #### FOR THE YEAR ENDED DECEMBER 31, 2025 | | Common
Stock | Additional
Paid-in
Capital | Retained
Deficit | Total
Stockholder's
Equity | |-------------------------------|-----------------|----------------------------------|---------------------|----------------------------------| | Balances at January 1, 2025 | \$
50,500 | \$
4,499,917 | \$
(4,076,791) | \$
473,626 | | Contributions | - | 150,000 | - | 150,000 | | Net loss | - | - | (129,325) | (129,325) | | Balances at December 31, 2025 | \$
50,500 | \$
4,649,917 | \$
(4,206,116) | \$
494,301 | {6}------------------------------------------------ ### STATEMENT OF CASH FLOWS ### FOR THE YEAR ENDED DECEMBER 31, 2025 | CASH FLOWS FROM OPERATING ACTIVITIES: | | |----------------------------------------------------|-----------------| | Net loss | \$
(129,325) | | Adjustments to reconcile net loss to net cash | | | used for operating activities — | | | Impact from changes in cash and cash equivalents — | | | Accounts receivable | 15,000 | | Prepaid expenses | (12,961) | | Due from shareholder | (9,343) | | Accounts payable | (1,096) | | Accrued expenses | 731 | | FINRA and security deposits | (1,177) | | Lease amortization adjustment | 24,100 | | Net cash used for operating activities | \$
(114,071) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | Contributions to additional paid-in capital | \$
150,000 | | | | | NET INCREASE IN CASH | \$
35,929 | | CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 443,554 | | | | | CASH AND CASH EQUIVALENTS AT END OF YEAR | \$
479,483 | {7}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** #### **(1) DESCRIPTION OF COMPANY AND SIGNIFICANT ACCOUNTING POLICIES:** #### **Description of Company —** Starshak Winzenburg & Co. (the Company) is a private investment banking company that provides financial advisory services. Assignments include corporate finance engagements in which companies seek to raise debt and equity capital, restructure current obligations, acquire or divest assets, or request assistance with other financial issues. The Company also assists governmental and not-for-profit organizations in securities transactions and restructuring obligations. The Company is a member of the Financial Industry Regulatory Authority (FINRA), the Municipal Securities Rulemaking Board (MSRB), and the Securities Investor Protection Corporation (SIPC) and is a registered broker/dealer with the Securities and Exchange Commission (SEC). #### **Cash and Cash Equivalents —** For purposes of the statement of cash flows, the Company considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. #### **Financial Instruments —** Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade receivables. The Company maintains cash accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses and management believes it is not exposed to any significant credit risk on cash. The Company derived 98% of its management and advisory income from two clients for the year ended December 31, 2025. #### **Accounts Receivable —** Management closely monitors outstanding accounts receivable and charges off to expense any past due balances that are determined uncollectible. The Company deems accounts past due based on their contractual terms. An allowance for credit losses may be recorded based on management's estimate of the receivables that will be collected based on historical experience. At December 31, 2025, management determined that no allowance for credit losses was necessary. #### **Fixed Assets —** Fixed assets are stated at cost. Depreciation is calculated over the estimated useful lives of the assets using the straight-line method. The estimated useful life of office equipment not fully depreciated is three to seven years, depending on the asset. {8}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** #### **Income Taxes —** The Company has elected to be treated as an S Corporation under the Internal Revenue Code. Accordingly, there is no provision for federal or state income taxes since such taxes are the liability of the individual shareholder. The State of Illinois imposes a 1.5% replacement tax on the taxable earnings of S Corporations. At December 31, 2025, the Company has an Illinois net operating loss carry forward for tax purposes as follows: | | Amount | Expires | | |------|-------------|---------|--| | 2014 | 366,000 | 2026 | | | 2015 | 340,000 | 2027 | | | 2016 | 275,000 | 2028 | | | 2017 | 235,000 | 2029 | | | 2018 | 288,000 | 2030 | | | 2019 | 192,000 | 2031 | | | 2020 | 398,000 | 2032 | | | 2021 | 397,000 | 2041 | | | 2022 | 410,000 | 2042 | | | 2023 | 134,000 | 2043 | | | 2024 | 125,000 | 2044 | | | 2025 | 87,000 | 2045 | | | | \$3,247,000 | | | The net operating loss carry-forward represents a deferred tax asset of approximately \$49,000. Due to the uncertainty of future realization of this asset, a 100% valuation allowance was recorded against it at December 31, 2025. U.S. generally accepted accounting principles (GAAP) imposes a threshold for determining when uncertain tax positions should be disclosed or recorded. The threshold now imposed for financial statement reporting generally is higher than the threshold imposed for claiming deductions on income tax returns. Management has determined that all of the Company's tax positions have a greater than 50% chance of being sustained if a taxing authority were to examine the positions. As such, management has not disclosed or recorded any uncertain tax positions in the financial statements. The Company's federal income tax returns prior to 2022 are closed. State jurisdictions have statutes of limitations that generally range from three to five years. {9}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** #### **Use of Estimates —** The preparation of financial statements, in conformity with U.S. 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 period. Actual results could differ from those estimates. #### **Segment Reporting —** The Company conducts business as a broker/dealer in financial advisory services. The Company has identified its President as the chief operating decision 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 (see Note 4), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. 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. See the Statement of Operations for segment revenues and significant expenses for the year ended December 31, 2025. ### **(2) REVENUE RECOGNITION FROM CONTRACTS WITH CUSTOMERS:** The Company receives compensation from clients through one or more of the following: hourly fees, success fees, retainers and periodic fees. The Company's engagement agreement with each client specifies the manner of compensation and when the compensation has been earned. The Company earned no revenue through hourly fees or retainers during 2025. In a success fee arrangement, the Company is entitled to compensation when specified milestones have been met, such as the closing of a transaction. Revenue is recognized when earned. The Company recognized \$30,000 in success fee revenue in 2025. Under periodic fee arrangements, the client pays the Company a regular fee for services. Typical periods are annual, quarterly or monthly, and compensation can be earned either in advance or in arrears. Revenue is recognized when earned pursuant to the contract. The Company recognized \$305,000 under periodic fee arrangements in 2025. The Company recognized \$40 in expense reimbursement from clients in 2025. #### **(3) LEASE COMMITMENT:** At lease inception, the Company determines whether an arrangement is or contains a lease. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities, and noncurrent operating lease liabilities in the financial statements. ROU assets represent the Company's right to use leased assets over the term of the lease. Lease liabilities represent the Company's contractual obligation to make lease payments over the lease term. {10}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2025** For operating leases, ROU assets and lease liabilities are recognized at the commencement date. The lease liability is measured at the present value of the lease payments over the lease term. The Company uses the rate implicit in the lease if it is determinable. When the rate implicit in the lease is not determinable, the Company uses its incremental borrowing rate at the commencement date of the lease to determine the present value of the lease payments. Operating ROU assets are calculated as the present value of the remaining lease payments plus unamortized initial direct costs plus any prepayments less any unamortized lease incentives received. Lease terms may include renewal or extension options to the extent they are reasonably certain to be exercised. The assessment of whether renewal or extension options are reasonably certain to be exercised is made at lease commencement. Factors considered in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of any leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option were not exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to recognize an ROU asset and obligation for leases with an initial term of twelve months or less. Certain leases contain variable costs based on the lessor's property tax and common area maintenance associated with the leased property. The Company has elected not to separate lease and non-lease components, and will instead report these costs as variable lease expense included in occupancy expense. The Company leases its office under a non-cancelable operating lease which expires October 31, 2030. Under the terms of the lease, the Company received rent abatement for the first six months. After the rent abatement period, rent was set at \$4,758 per month with annual increase of approximately 2.5%. The Company is also responsible for a pro rata share of real estate taxes and operating expenses. Cash paid under this lease, and the previous lease, during the year was \$52,333. The components of lease expense for the year were as follows: | Operating | \$
53,366 | |-----------|--------------| | Variable | 23,067 | | Total | \$
76,433 | Lease expense is included in occupancy expense on the Statement of Operations. | Remaining lease term – operating lease | 4.8 years | |----------------------------------------|-----------| | Discount rate – operating lease | 8.25% | {11}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** Future operating lease maturities for the years ending December 31 are as follows: | 2026 | \$
57,930 | |-----------------------------------|---------------| | 2027 | 59,376 | | 2028 | 60,858 | | 2029 | 62,384 | | 2030 | 53,176 | | Less amount representing interest | (51,486) | | Total lease liabilities | \$
242,238 | ### **(4) NET CAPITAL REQUIREMENTS:** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1 (the FINRA rule 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 (as defined under Rule 15c3-1) of \$449,454 which was \$444,454 in excess of its required net capital of \$5,000. The percentage of aggregate indebtedness to net capital at December 31, 2025 was 9%. These amounts are not materially different from the unaudited amounts submitted in the FOCUS report for the year ended December 31, 2025. #### **(5) RELATED PARTY TRANSACTION:** The Company's shareholder is a trustee of a limited purpose trust (the "Trust"). The Company does business with the Trust, and revenues from the Trust were \$292,500 in 2025. #### **(6) GOING CONCERN:** The Company has incurred recurring losses from operations and has a retained deficit. Management believes that contributions to additional paid-in capital during the twelve months subsequent to the report date will be sufficient for the Company to meet its obligations. #### **(7) SUBSEQUENT EVENTS:** The Company's management has performed an analysis of activities and transactions subsequent to December 31, 2025, to determine the need for any adjustments to and/or disclosures within the audited financial statements for the year then ended. Management has performed their analysis through February 11, 2026, the date which the financial statements were available to be issued. {12}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2025** ### **(8) COMMITMENTS AND CONTINGENCIES:** 1) As described in Note 3, the Company has a lease for its office space, which obligates the Company to pay rent. The Company has an engagement with a client to provide financial advisory services in return for an annual fee. 2) As of the audit opinion date, the Company is not aware of any claims that might be asserted against the Company. {13}------------------------------------------------ #### **SCHEDULE I** #### **COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1** #### **OF THE SECURITIES AND EXCHANGE COMMISSION** ### **AS OF DECEMBER 31, 2025** #### **NET CAPITAL:** Total stockholder's equity from statement of financial condition \$ 494,301 Deduction and/or charges Nonallowable assets from statement of financial condition Petty cash \$ 200 Accounts receivable 40 Due from shareholder 9.343 Prepaid expenses 28,540 FINRA and security deposits 6,724 Total nonallowable assets \$ 44,847 Net capital \$ 449,454 **AGGREGATE INDEBTEDNESS** Total aggregate indebtedness liabilities from statement of financial condition \$ 42,257 Percentage of aggregate indebtedness to net capital 9% **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT:** Minimum net capital requirement (6-2/3% of total aggregate indebtedness) \$ 2,817 Minimum dollar net capital requirement of reporting broker \$ 5,000 Net capital requirement (greater of minimum net capital or minimum dollar net capital) \$ 5,000 Excess net capital (net capital less required net capital) \$ 444,454 Net capital less greater of 10% of aggregate indebtedness or 120% of minimum dollar net capital requirement \$ 443,454 #### **There are no material differences between the preceding computation and the Company's corresponding unaudited Part IIA of Form X-17A-5 as of December 31, 2025.** The accompanying notes are an integral part of this schedule. {14}------------------------------------------------ ### **SCHEDULE II** # **REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** ### **AS OF DECEMBER 31, 2025** The schedules for Computation for Determination of Reserve Requirements and Information for Possession or Control Requirements Under Rule 15c3-3 are inapplicable to Starshak Winzenburg & Co. because the Company is exempt under the exemptive provision section of Rule 15c3-3(k)(2)(i), (Special Account For the Exclusive Benefit of Customers Maintained). The Company complied with the conditions of the exemption during the audit period. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.