# WEITZEL FINANCIAL SERVICES, INC. X-17A-5 (2023-02-28) — Broker-dealer annual report - Company: WEITZEL FINANCIAL SERVICES, INC. - Form: X-17A-5 - Filed: 2023-02-28 - Period: 2022-12-31 - Accession: 0000868283-23-000001 - CIK: 868283 - File #: 8-43093 - Type: Broker-dealer - Material weakness: No - Auditor: Ryan & Juraska LLP - Auditor location: Chicago, IL - Contact: Timothy Weitzel - Phone: 563-583-6020 - Signed by: Timothy J. Weitzel (Owner / President) Original filing: https://www.sec.gov/Archives/edgar/data/868283/000086828323000001/WFSpublic2022filing.pdf --- {0}------------------------------------------------ Weitzel Financial Services, Inc. Dubuque, Iowa Financial Statement and Report of Independent Registered Public Accounting Firm Pursuant to Rule 17a-5 Public December 31, 2022 {1}------------------------------------------------ | UNITED STATES | |-------------------------------------| | SEC URITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | nMBAPPROVA | | |--------------------------|---| | OMB Number: 1235·0123 | | | Expires: Oct. 31, 2023 | | | Esllm~ted average burden | | | hours per response: | " | # ANNUAL REPORTS FORM X·17A·5 PART III SEC FILE NUMBER FACING PAGE 8·43093 Information Required Pursuant to Rules 17.11 -5, 173-12, and 183-7 under the Securities Exchange Act of 1934 FlU NG FOR THE PERIOD BEGIN NING \_\_ 0::.1::./..::0,..1.:,./2.:.2::.,..\_ AND EN DING \_\_ 1::.2::./..::3-;:: 1::./2;:::2,--\_ MM/DD/YV MM/DD/YY A, REGISTRANT IDENTIFICATION NAME OF FIRM: \_W\_e\_it\_ze\_I\_F\_i\_n\_a\_n\_c\_ia\_I\_S\_e\_r\_v\_ic\_e\_s,-, \_In\_c\_, \_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer D Security-based swap dealer o Major secu rity-based swap participant o Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 2200 John F Kennedy Rd Suite 103 (No. and Street) Dubuque IA (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 52002 (ZJp Code) Timothy J, Weitzel 563·583·6020 tweitzel@weitzelfinanciaLcom (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this fil ing· Ryan & Juraska LLP (Name - if individual, state last, first, and middle name) 141 West Jackson Blvd, Ste 2250 Chicago IL 60604 (Address) (City) (State) (Zip Code) 03/24/2009 3407 (Date of Rellistratlon with PCAOe)(if applicable) (PCAOS Registration Number, if applicable) FOR OFFICIAL USE ONLY • Claims for eKemptlon from the reqUirement that the annual reports be covered by the reports of an independent public accountant mU5t be supported by a statement of facts and circumstances relied on as the basis of the eKemption. See 17 CFR 240.17a·S(e)(1)(il), if applicable. Persons who are to respond to the collection of information contained In this f orm are not required to respond unless the form displays a currently valid OMe control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION | I, | nmOlhy J, Welue! | | |----|------------------|--| | | | | financial report pertaining ~2~/~3~1,----=-\_\_\_\_\_\_\_\_ ~. 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 cust01'".,.';;";::-\_\_ \_ ![](_page_2_Picture_4.jpeg) Owner I Presider .. # This filing" contains (check all applicable boxes): - iii (a) Statement of financial condition. - iii (b) Notes to consolidated statement of financial condition. - o (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). - o (d) Statement of cash flows. - o (e) Statement of changes in stockholders' or partners' or sole proprietor's eqUity. - o (f) Statement of changes in liabilities subordinated to claims of creditors. - o (g) Notes to consolidated financial statements. - o (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a·1, as applicable. - o (i) Computation of tangible net worth under 17 CFR 240.18a·2. - o (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - o (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit S to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - o (I) Computation for Determination of PAS Requirements under Exhibit A to § 240.15c3-3. - o 1m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - o (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - o (0) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capit al or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - o (p) Sum mary of financial data for subsidiaries not consolidated in the statement of financial condition. - iii (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. - o (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - o (s) E)(emption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - iii (t) Independent public accountant's report based on an examination of the statement of financial condition. - o (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. - o (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. - o (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.1ga-7, as applicable. - o (x) Supplemental reports on applying agreed·upon procedures, in accordance with 17 (FR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - o (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). o (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - UTa *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.* {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) RYAN &JURASKA ILP Certified Public Accountants 141 West Jackson Boulevard Chicago, illinois 60604 Tel: 312.922.0062 Fax : 312.922.0672 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Weitzel Financial Services, Inc. #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Weitzel Financial Services, Inc. (the Company) as of December 31 , 2022, and the related notes (collectively referred to as the financial statement). In our opinion , the financial statement presents fairly, in all material respects, the financial position of Weitzel Financial Services, Inc. as of December 31 , 2022, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statement is the responsibility of Weitzel Financial Services, Inc.'s management. Our responsibility is to express an opinion on the Company's financial statement 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 Weitzel Financial Services, 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 have served as the Company's auditor since 2022. 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 statement is 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 statement, 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. Chicago, Illinois February 24, 2023 {4}------------------------------------------------ # Weitzel Financial Services, Inc. Statement of Financial Condition December 31 , 2022 | Assets | | |---------------------------------------------------------|---------------------| | Cash and Cash Equivalents | \$
270,449 | | Commissions Receivable | 51.417 | | RIA Receivable | 536,971 | | FINRA Holding Account | 840 | | Prepaid Expenses | 10,078 | | Furniture, Equipment, and Leasehold Improvements, net | 128,124 | | Intangible Assets, net | 24,000 | | Right of Use Asset | 55,924 | | Total Assets | \$
1,077
,803 | | | | | Liabilities and Stockholders' Equity
liabilities | | | Commissions Payable | 50,379 | | Deferred Rental Income | 3,242 | | Accrued Payroll & Benefits | 11,489 | | Operating Lease Liability | 57,436 | | | | | Total Liabilities | 122,546 | | Stockholders' Equity | | | Common Stock, No Par Value, 1,000,000 Shares Authorized | | | 2,000 Shares Issued and Outstanding | 20,000 | | Additional Paid-In Capital | 46,192 | | Retained Earnings | 889,065 | | Total Stockholders' Equity | 955,257 | | Total Liabilities and Stockholders' Equity | \$
1,077,803 | {5}------------------------------------------------ ## NOTE 1. Summary of Significant Accounting Policies ## Organization and Nature of Operations Weitzel Financial Services, Inc. (the Company) is a registered broker/dealer and a member of the Financial Industry Regulatory Authority, Inc ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company is registered with the Securities and Exchange Commission ("SEC"). The Company was originally formed as an Iowa domiciled corporation in October of 1969 for general business purposes under the name of Builders Development Corporation. Weitzel Financial Services, Inc. was established in August 1990. The Company has operated as a registered broker/dealer and independent insurance agency since January 1991 and has been offering investment advisory services since September 2017. The Company conducts business activities involving mutual funds, variable life insurance and annuities, and municipal fund securities (529 plans only), along with providing investment advisory services in financial planning and portfolio management. The Company operates under the provision of a non-covered firm. Therefore, in reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q & A 8 of the related FAQ issued by SEC staff, the firm will not claim an exemption from SEA Rule 15c3-3. Essentially, the Company carries no margin accounts, promptly transmits all customer funds, and delivers all customer securities and, accordingly, does not otherwise hold funds or securities for, or owe money or securities to customers. The Company instructs customers to invest directly with the fund into which the customer is investing. ## Basis of Presentation The financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of the financial statement 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 statement. Actual results could differ from those estimates. #### Cash and Cash Equivalents The Company maintains its operating cash in checking and money market accounts insured by the Federal Deposit Insurance Corporation. All highly liquid securities purchased with an original maturity of three months or less are considered to be cash equivalents. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. {6}------------------------------------------------ ## NOTE 1. Summary of Significant Accounting Policies (Continued) ## Commissions Receivable Commissions receivable are uncollected obligations due from mutual fund and insurance companies under normal trade terms. Commissions receivable is recorded at an amount computed by multiplying the stated commission rate, set by the mutual fund or insurance company, by the total amount invested by the client or the value of the insurance policy. Interest is not accrued on commissions receivable. Management believes that, based on industry practice and collection history, the commissions receivable balance at December 31, 2022, is collectable in full and accordingly, no allowance for doubtful accounts has been recorded. ## Furniture, Equipment. and Leasehold Improvements Furniture, equipment, and leasehold improvements are recorded net of accumulated depreciation and summarized by major classifications as follows: | | | Useful Life | |-------------------------------------|--------------|-------------| | Leasehold Improvements | 16.959
\$ | 39 years | | Equipment | 20,220 | 3-10 years | | Vehicles | 209,456 | 5 years | | | 246,635 | | | Less: accumulated depreciation | (118.511) | | | Furniture, Equipment, and Leasehold | | | | Improvements, net | \$ 128,124 | | For assets sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts. ## Right of Use Asset Right of use asset is stated at the net present value of future minimum lease payments discounted at the Company's estimated incremental borrowing rate of 1.67%. Right of use asset is amortized over the lease term by the difference between the straight-line lease expense and the lease liability accretion. {7}------------------------------------------------ ## NOTE 1. Summary of Significant Accounting Policies (Continued) ## Intangible Assets Intangible assets represent the excess of the purchase price over the value assigned to the net assets, including identifiable intangible assets, of a business acquired. Intangible assets are valued in accordance with ASC 350-30, General Intangibles Other than Goodwiff. Intangible assets are evaluated annually for impairment. Intangible assets are recorded net of amortization and summarized as follows: | | | Useful Ufe | |--------------------------------|--------------|------------| | Client List | \$ 47,000 | 15 years | | | 47,000 | | | Less: accumulated amortization | (23.000) | | | Intangible Assets, net | \$
24,000 | | ## Current Expected Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends several aspects of the measurement of credit losses on financial instruments, including replacing the existing incurrent credit loss model and other models with the Current Expected Credit Losses (CECL) model and amending certain aspects of accounting for purchased financial assets with deterioration in credit quality since origination. The new standard is effective for fiscal years beginning after December 15, 2019. Expected credit losses, on receivables will be measured based on historical experience, current conditions and forecasts that affect the collectability of the reported amount. The Company has completed it analysis as of December 31,2022 related to the above noted financial assets within the scope of Accounting Standards Codification (ASC) 326 and identified no material current expected credit loss to be recorded. ## Income Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board Accounting Standard Codification ("FASB ASC") Topic 606, Revenue from Contracts with Customers. That guidance was amended to require public business entities to 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 the goods or services. {8}------------------------------------------------ ## NOTE 1. Summary of Significant Accounting Policies (Continued) #### Recently Issued Accounting Pronouncements The Financial Account Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates CASUs··). For the year ending December 31 , 2022, there were no ASUs issued by the FASB that were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statement for the year then ended. ## Subsequent Events The Company has evaluated events subsequent to the statement of financial condition date for items requiring recording or disclosure in the financial statement. The evaluation was performed through February 24, 2023, which is the date the financial statement was available to be issued Based upon this review, the Company's management paid a distribution of \$350,000 on January 6, 2023, and no other material events were noted. ## NOTE 2. Simple IRA The Company offers its employees a Simple IRA plan. Employees must earn at least \$5,000 per year during anyone preceding year and be expected to earn at least \$5,000 in the current year to be eligible to participate in the plan. Employer and employee contributions are vested immediately. The Company will contribute 100 percent of the first 3 percent of compensation that employees contribute to the plan. {9}------------------------------------------------ ## NOTE 3. Concentration of Credit Risk The Company enters into various transaction in which cQunterparties primarily include banks and other financial institutions. In the event cQunterparties do not fulfill their obligations the Company may be exposed to risk. The risk of default depends on the credit worthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each cQunterparty. At December 31 , 2022, a significant credit concentration consisted of 55.1 % of the net equity of the Company with one of the Company's financial institutions. The amount is included RIA receivables on the Statement of Financial Condition. Also at December 31, 2022, a significant credit concentration consisted of the cash deposited in one bank. Bash deposits exceeded federally insured limits by \$20,449. The Company has not experienced any such losses in these accounts. Management does not consider any credit risk associated with these assets to be significant. Concentration of credit risk exists when changes in economic, industrial , or geographic factors similarly affect groups of counterparts. The Company operates in the Northeastern Iowa, Southwestern Wisconsin, and Northwestern Illinois areas. This demographic makes the Company dependent upon the respective regions' economic conditions. ## **NOTE 4. Income Taxes** Effective November 1, 2013, the Company elected to be taxed as an S Corporation, whereby income is reported in the stockholders' income tax returns. As a result, no federal income tax provision is made by the Company. The Company is required to file income tax returns in both federal and state tax jurisdictions. The Company's tax returns are subject to examination by taxing authorities in the jurisdictions in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. For federal purposes, the statute of limitations is three years. Accordingly, the Company is no longer subject to examination of federal returns filed more than three years prior to the date of the financial statement. The statute of limitations for state purposes is generally three years but may exceed this limitation depending upon the jurisdiction involved. Returns that were filed within the applicable statute remain subject to examination. As of December 31,2022, the IRS and state authorities have not proposed any adjustment to the Company's tax position. ## NOTE 5. Net Capital Requirements The Company is subject to the Securities and Exchange Commission's Uniform Net Capital rule (Rule 15c3-1 ), which requires the maintenance of a minimum net capital of \$5,000 at December 31 , 2022 , and the ratio of aggregate indebtedness to net capital, both of which are defined , should not exceed 15 to 1. At December 31 , 2022, the Company had net capital of \$738,015 which was \$733,015 in excess of its required net capital of \$5,000 and its aggregate indebtedness was \$66,622. The Company's ratio of aggregated indebtedness to net capital was .09 to 1 at December 31,2022. {10}------------------------------------------------ ## NOTE 6. Lease The Company has obligations as a lessee for office space and office equipment with initial noncancelable terms in excess of one year. The Company classified these leases in accordance with FASB ASC 842 as operating leases\_ These leases generally contain renewal options\_ Since the Company is not reasonably certain to exercise these renewal options, the optional periods are not included in determining the lease term, and associated payments under these renewal options are excluded from lease payments. The Company's leases do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contracts include fixed payments. The Company's office space leases require it to make variable payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease liability and are recognize as variable costs when incurred. Operating leases are included in ROU asset and operating lease liability, on the Statement of Financial Condition. This asset and liability are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company's incremental borrowing rates. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the Statement of Financial Condition. The Company leases its office space under an operating agreement that expires July 2023. Other information related to leases at December 31, 2022: | Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liability: | | |--------------------------------------------------------------------------------------------------------------|----------------| | Operating cash flow from operating lease | \$
98,106 | | ROU asset obtained in exchange for lease obligations: | | | Operating Lease | \$ 372
.637 | | Current year reductions to ROU asset resulting from reductions to lease obligation: | | | Operating Lease | \$ (96.557) | | Weighted average remaining lease term: | | Operating lease - 0.5 years Weighted average discount rate: Operating lease - 1.67% {11}------------------------------------------------ ## NOTE 6. Lease (continued) Amounts disclosed for ROU asset obtained in exchange for lease obligation and reductions to ROU asset resulting from reductions to lease obligations include amounts added to or reduced from the carrying amount of ROU asset resulting from new leases, lease modifications or reassessments. Maturities or lease liabilities for office space under a noncancelable operating lease as of December 31,2022 is as follows: | Year Ended | | | |------------------------------------|--------------|--| | December 31, | Total | | | 2023 | 57.676
\$ | | | Total un discounted lease payments | 57,676
\$ | | | Less: Imputed interest | (240) | | | Total lease liabilities | \$
57,436 | | ## NOTE 7. Contingencies The Company has no commitments or guarantees against the assets of the Company. In addition, they have no contingencies regarding litigation or arbitration. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.