# TAGLICH BROTHERS, INC. X-17A-5/A (2026-04-16) — Broker-dealer annual report - Company: TAGLICH BROTHERS, INC. - Form: X-17A-5/A - Filed: 2026-04-16 - Period: 2025-12-31 - Accession: 0000879064-26-000011 - CIK: 879064 - File #: 8-44118 - Type: Broker-dealer - Material weakness: No - Auditor: Nawrocki Smith - Auditor location: Hauppauge, NY - Contact: Michael N. Taglich - Phone: 6317571500 - Email: ohr@taglichbrothers.com - Website: taglichbrothers.com - Signed by: Michael N. Taglich (President) Original filing: https://www.sec.gov/Archives/edgar/data/879064/000087906426000011/2025taglichpublic.pdf --- {0}------------------------------------------------ | ANNUAL REPORTS | |----------------| | FORM X-17A-5 | | PART III | | OMB APPROVAL | |---------------------------| | OMB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | 12
hours per response: | | SEC FILE NUMBER | | |-----------------|--| | 8-44118 | | | MAIN STREET
37 | | | | | |---------------------------------------------------------------------------|------------------------------------------------------------|---------|--------------------------------------------|--| | | (No. and Street) | | | | | COLD SPRING HARBOR | NY | | 11724 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | MICHAEL TAGLICH | 631-757-1500 | | OHR@TAGLICHBROTHERS.COM | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | NAWROCKI SMITH | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 100 MOTOR PARKWAY, SUITE 580 | HAPPAUGUE | NY | 11788 | | | (Address) | (City) | (State) | (Zip Code) | | | 03/04/2009 | | 3370 | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | {1}------------------------------------------------ | Michael Taglich | swear (or affirm) that, to the best of my knowledge and belief, the | | |---------------------------------------------------------------------------|---------------------------------------------------------------------|-------| | financial report pertaining to the firm of Taglich Brothers, Inc.
1000 | | as of | - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # Taglich Brothers, Inc. ## Financial Statements ## and Supplemental Information For The Year Ended December 31, 2025 This report is deemed confidential in accordance with Rule 17a5-(e)(3) under the Securities Exchange Act of 1934 {3}------------------------------------------------ #### TAGLICH BROTHERS, INC. DECEMBER 31, 2025 ## TABLE OF CONTENTS | Page | |--------| | | | | | 1 | | 2 | | 3 | | 4 | | 5 - 19 | | | | 21 | | 21 | | | | 22 | | 23 | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholders of Taglich Brothers, Inc.: #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Taglich Brothers, Inc. (the "Company") as of December 31, 2025, the related statements of income, changes in stockholders' equity, and cash flows for the year ended December 31, 2025, 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 Taglich Brothers, 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 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 U.S. 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 Supplemental Information** The supplemental information contained in schedules I, II and III have been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to 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. We have served as Taglich Brothers, Inc.'s auditor since 2022. Hauppauge, New York April 9, 2026 {5}------------------------------------------------ #### TAGLICH BROTHERS, INC. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### ASSETS | TAGLICH BROTHERS, INC.
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2025 | | |---------------------------------------------------------------------------------|-----------------| | ASSETS | | | Cash | \$
166,135 | | Deposit with clearing broker | 100,000 | | Due from clearing broker, net | 89,536 | | Securities, at fair value | 628,344 | | Customer receivables, less allowance for credit losses of \$142,848 | 2,105,641 | | Prepaid expenses and other assets | 23,323 | | Property and equipment, net of accumulated depreciation | 32,578 | | Operating lease right-of-use asset | 111,760 | | Due from stockholders | 282,260 | | Due from employee | 29,542 | | TOTAL ASSETS | \$
3,569,119 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | CURRENT LIABILITIES: | | | Accounts payable and accrued expenses | \$
2,563,588 | | Client advances - financial research | 7,500 | | Operating lease liability - current portion | 50,729 | | TOTAL CURRENT LIABILITIES | 2,621,817 | | OPERATING LEASE LIABILITY - NET OF CURRENT PORTION | 65,258 | | | | #### LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | | |----------------------------------------------------------|-----------------| | | | | | | | | | | | | | TOTAL CURRENT LIABILITIES | 2,621,817 | | OPERATING LEASE LIABILITY - NET OF CURRENT PORTION | 65,258 | | TOTAL LIABILITIES | 2,687,075 | | STOCKHOLDERS' EQUITY: | | | Common stock, no par value, \$1 stated value, 200 shares | | | authorized, 130 shares issued and 95 shares outstanding | 130 | | Additional paid-in capital | 844,277 | | Retained earnings | 137,317 | | Treasury stock, 35 shares held at cost | (99,680) | | TOTAL STOCKHOLDERS' EQUITY | 882,044 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$
3,569,119 | {6}------------------------------------------------ #### TAGLICH BROTHERS, INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2025 ### REVENUES: | | STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2025 | | |--------------------------------------------------|-----------------------------------------------------------------|-----------| | REVENUES: | | | | Private placement and investment banking income | \$ | 2,360,661 | | Asset management fees | | 604,338 | | Unrealized losses on principal transactions | | (269,639) | | Commissions | | 134,667 | | Financial research and internet website listings | | 116,165 | | Miscellaneous income | | 224 | | Interest and dividend income | | 135,234 | | TOTAL REVENUE | | 3,081,650 | | EXPENSES: | | | | Compensation and benefits | | 1,810,203 | | Professional fees | | 1,044,764 | | Office and other | | 613,215 | | Clearance fees, commissions, and floor brokerage | | 135,992 | | Regulatory fees | | 83,907 | | Administrative management fees - related party | | 61,576 | | Rent | | 55,927 | | Bad debt expense | | 44,097 | | Travel, entertainment, and promotion | | 42,831 | | Interest expense | | 38,676 | | Technology | | 38,088 | | Dues and subscriptions | | 14,753 | | Depreciation expense | | 11,958 | | Research expense | | 1,903 | | TOTAL EXPENSES | | 3,997,890 | | INCOME BEFORE PROVISION FOR FRANCHISE TAXES | | (916,240) | | PROVISION FOR FRANCHISE TAXES | | (13,943) | | NET LOSS | \$ | (902,297) | {7}------------------------------------------------ #### TAGLICH BROTHERS, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2025 | | | | FOR THE YEAR ENDED DECEMBER 31, 2025 | | | |--------------------------|-----------------|-----------------|--------------------------------------|----------------------|-------------------| | | Total | Common
Stock | Additional
Paid-in
Capital | Retained
Earnings | Treasury
Stock | | Balance, January 1, 2025 | \$
1,784,341 | \$
130 | \$
844,277 | \$
1,039,614 | \$
(99,680) | | | | | | | | | Net loss | (902,297) | - | - | (902,297) | - | {8}------------------------------------------------ #### TAGLICH BROTHERS, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025 #### CASH FLOWS FROM OPERATING ACTIVITIES: | TAGLICH BROTHERS, INC.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2025 | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-----------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | Net loss | \$ | (902,296) | | Adjustments to reconcile net income to net cash | | | | provided by operating activities: | | | | Bad debt expense | | 44,097 | | Depreciation expense
Unrealized/ Realized losses on principal transactions | | 11,958
269,639 | | Noncash private placement and investing banking income | | (810,341) | | Noncash private placement and investing banking costs and expenses | | 810,341 | | Amortization of operating lease right-of-use asset | | 46,031 | | Adjustment for uncollectible interest income | | 1,230 | | (Increase) decrease in operating assets: | | | | Due from clearing broker | | (55,804) | | Securities, at fair value | | 393,052 | | Customer receivables | | (512,315) | | Prepaid expenses and other current assets
Decrease (Increase) in operating liabilities: | | 13,604 | | Accounts payable and accrued expenses | | 707,925 | | Client advances - financial research | | (1,500) | | Operating lease liability | | (46,228) | | NET CASH USED FOR OPERATING ACTIVITIES | | (30,607) | | | | | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | Collection of note receivable | | 241,242 | | Shareholder loan
Employee loan | | (282,260)
(29,542) | | | | | | NET CASH USED FOR INVESTING ACTIVITIES | | (70,560) | | NET DECREASE IN CASH AND RESTRICTED CASH | | (101,167) | | CASH AND RESTRICTED CASH AT BEGINNING OF YEAR | | 367,302 | | | | | | CASH AND RESTRICTED CASH AT END OF YEAR | \$ | 266,135 | | SUPPLEMENTAL CASH FLOWS DISCLOSURES: | | | | Cash paid during the year for: | | | | Interest
Income taxes paid | \$ | 38,676 | | Income tax refunds received | \$
\$ | 4,645
18,588 | | | | | | RECONCILIATION OF CASH AND RESTRICTED CASH:
The following table provides a reconciliation of cash reported within the Statement of Financial
Condition that sum to the same amounts shown in the Statement of Cash Flows | | | | | | | | Cash | \$ | 166,135 | | Deposit with clearing broker | | 100,000 | | | \$ | 266,135 | {9}------------------------------------------------ #### 1 - ORGANIZATION AND NATURE OF BUSINESS Taglich Brothers, Inc. (the "Company") is registered as a broker-dealer with the U.S. Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. The Company is also registered with the SEC under the Investment Advisors Act of 1940. The Company's principal business activities are performing financial research and analysis, acting as a broker-dealer of securities, and engaging in investment banking services. The Company is located in Cold Spring Harbor, New York. ### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of Presentation The Company prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used to (1) value allowance for credit losses for website research, (2) value level three securities and (3) calculate stock compensation. #### Customer Receivables The Company accounts for its financial instruments under the guidance of ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)," along with related clarifications and improvements. This pronouncement requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company carries its customer receivables at cost, less an allowance for credit losses. On a periodic basis, the Company evaluates its customer receivables and establishes an allowance for credit losses, based on a history of past write-offs and collections and current credit conditions. See Note 5. {10}------------------------------------------------ #### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Revenue Recognition | DECEMBER 31, 2025 | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | | | Revenue Recognition | | | The Company accounts for revenue under the provisions of ASC Topic 606, "Revenue
from Contracts with Customers" ("ASC 606"). Under ASC 606, recognition of revenue
occurs when a customer obtains control of promised services or goods in an amount that
reflects the consideration to which the entity expects to receive in exchange for those
goods or services. In addition, the standard requires disclosure of the nature, amount,
timing, and uncertainty of revenue and cash flows arising from customer contracts. | | | The following table presents our total revenues separated for revenues from contracts with
customers and other sources of revenues: | | | Revenues from contracts with customers: | | | Private placement and investment banking income | \$
2,360,661 | | Asset management fees | 604,338 | | Commissions | 134,667 | | Financial research and internet website listings | 116,165 | | Total revenue from contracts with customers | 3,215,831 | | Other sources of revenue: | | | Unrealized gains on principal transactions | (269,639) | | Other income | 224 | | Interest and dividend income | 135,234 | | Total other sources of revenue | (134,181) | | | \$
3,081,650 | In general, the Company applies the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when a performance obligation is satisfied. {11}------------------------------------------------ #### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Revenue Recognition (Continued) The following provides detailed information on the recognition of our revenues from contracts with customers: Private placement and investment banking income: The Company provides underwriting and placement agent services in both the equity and debt markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing private debt. Private placement and investment banking income is recognized as revenue upon completion of the underlying transaction based on the terms of the agreement. The Company may receive securities or warrants of the Company for which services were performed. The Company recognizes revenue based on the estimated fair value of the securities or warrants received. Any expenses reimbursed by our clients are recognized as investment banking income. During 2025, the Company recognized \$810,341 of noncash compensation where warrants were received or will be received. Costs associated with these transactions are recognized when incurred. Asset management fees: The Company earns asset management fees in connection with investment advisory services provided to various funds and accounts. Management fees are determined at the beginning of the quarter based on the value of the account. The Company is currently recording one-third of the fee in each month of the quarter. Financial advisory income: Fees from financial advisory assignments are recognized as revenue when the services related to the underlying transactions are completed under the terms of the agreement. If the agreement requires monthly advisory services to be performed, the Company recognizes revenue on a monthly basis as the fees are received. Commissions: The Company earns commission revenue by executing, settling and clearing transactions for clients through its clearing broker. Trade execution and clearing services, when provided together; represent a single performance obligation, as the services are not separately identifiable in the context of the contract. Commission revenues are recognized at a point in time on the trade-date and are generally received on the settlement date. Financial research and internet website listings: The Company enters into agreements with entities to provide research reports on its website so investors can make informed investment decisions. According to these agreements, the Company is obligated to post an initial research report and provide quarterly updates thereafter for each entity. Each entity remits an initial deposit and a monthly payment according to its related agreement. These payments are initially classified as client advances – financial research, and are recognized as revenue as the research report is released for each entity. Principal transactions: Transactions in proprietary securities and related revenue and expenses are recorded on a trade date basis. Realized and unrealized changes in fair value are recognized in principal transactions in the period in which the change occurs. {12}------------------------------------------------ ### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Information on Remaining Performance Obligations The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. These performance obligations generally relate to the service fee income and are expected to be resolved within three months or less as of December 31, 2025. Remaining performance obligations are services that the Company has committed to perform in the future in connection with its contracts with clients. The Company's remaining performance obligations are generally related to its financial advisory agreements and asset management agreements. Revenues associated with remaining performance obligations relating to financial advisory agreements cannot be determined until the outcome of the transaction. For the Company's asset management agreements, where fees are calculated based on the net asset value of the fund or separately managed account, future revenues associated with remaining performance obligations cannot be determined as such fees are subject to fluctuations in the market value of investments held by the fund or separately managed account. #### Contract Balances The timing of the revenue recognition may differ from the timing of payment by the customers. The Company records a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue (client advances) until the performance obligations are satisfied. Net receivables related to revenues from contracts with customers amounted to \$2,105,641 at December 31, 2025. Client advances amounted to \$7,500 at December 31, 2025. The Company recognized revenue of \$9,000 in the year ended December 31, 2025 that was included in client advances at December 31, 2024. #### Contract Costs The Company does not incur any contract costs with the exception of those included in the contract and incurred by its registered representatives. #### Disaggregation of Revenue The Company does not disaggregate revenue other than by product line, as it does not believe any further disaggregation provides meaningful information about its financial performance or position. {13}------------------------------------------------ #### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Leases The Company accounts for leases under the provisions of ASC Topic 842, "Leases" ("ASC 842"). The standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and classify as either operating or finance leases. The provisions of ASC 842 had a significant effect on the Company's statement of financial condition resulting in increased assets and liabilities. In accordance with ASC 842, at the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less under practical expedient in paragraph ASC 842-20-25-2. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within the Company's operating leases are generally not determinable and, therefore, the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of the Company's incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate for each lease using its estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain the Company will exercise that option. An option to terminate is considered unless it is reasonably certain the Company will not exercise the option. #### Valuation of Securities The Company's securities are stated at fair value in accordance with FASB ASC 820, "Fair Value Measurements and Disclosures." See Note 6 for discussion of fair value measurements. {14}------------------------------------------------ #### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Expenditures that enhance the useful lives of the assets are capitalized and depreciated. Maintenance and repairs are expensed as incurred. When properties are retired or otherwise disposed of, related costs and related accumulated depreciation are removed from the accounts. Useful lives are as follows: | Furniture and fixtures | 7 years | |------------------------|---------------| | Equipment | 5 years | | Leasehold improvements | Life of lease | #### Income Taxes The Company, with the consent of its stockholders, has elected to be an S corporation for federal and New York State purposes. As an S corporation, the Company is not subject to federal or New York State income taxes but is liable for state franchise taxes. Accordingly, no provision for federal and New York income taxes has been reflected in the accompanying financial statements. Instead, the taxable income or loss is allocated to the stockholders. The Company accounts for uncertainties in income taxes under the provisions of FASB ASC 740. The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. The ASC prescribes a recognition threshold and measurement attitude for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At December 31, 2025, the Company had no material unrecognized tax benefits. The Company files federal and New York State income tax returns subject to varying statutes of limitations. The Company is no longer subject to federal and New York examinations by tax authorities for the years before 2022. {15}------------------------------------------------ #### 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Subsequent Events In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through April 9,2026. Subsequent to December 31, 2025, the company became aware of the following: The Company determined to cease its broker-dealer operations. Management plans to transfer all remaining customer accounts to another broker-dealer on April 27, 2026. Following confirmation that the account transfers have been completed, the Company intends to file a Form BDW with the Financial Industry Regulatory Authority and an ADV-W with the U.S. Securities and Exchange Commission on April 28, 2026, formally withdrawing its registrations as a broker-dealer and investment adviser. Management expects these actions to effectively terminate the Company's regulated operations. Receivable from clearing organization \$ 89,562 \$ - Fees and commissions payable - 26 \$ 89,562 \$ 26 Receivable Payable #### 3 - DUE FROM CLEARING BROKER The amount due from clearing broker of \$89,536 at December 31, 2025 consists of the following: | | | Receivable | Payable | | | |---------------------------------------|---|------------|---------|----|--| | Receivable from clearing organization | S | 89.562 | S | | | | Fees and commissions payable | | | | 26 | | | | S | 89,562 | | 26 | | The Company clears its proprietary and customer transactions through another brokerdealer on a fully-disclosed basis. The Company's due from clearing broker include amount receivable from unsettled trades, including amounts receivable for securities failed to deliver and accrued interest receivables. A portion of the Company's trades are cleared through a clearing organization and settled daily between the clearing organization and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed the Company for a very short period of time. {16}------------------------------------------------ #### 4 - OFF-BALANCE SHEET RISK Pursuant to clearance agreements, the Company introduces all of its securities transactions to clearing brokers on a fully-disclosed basis. All of the customer's money balances and long and short security positions are carried on the books of the clearing brokers. In accordance with the clearance agreements, the Company has agreed to indemnify the clearing brokers for losses, if any, which the clearing brokers may sustain from carrying securities transactions introduced by the Company. In accordance with industry practice and regulatory requirements, the Company and the clearing brokers monitor collateral on the customers' accounts. In addition, the receivables from the clearing brokers are pursuant to these clearance agreements. #### 5 - CUSTOMER RECEIVABLES AND PAYABLES Customer receivables and payables arise in connection with the Company's investment banking and website research business activities. As of December 31, 2025, customer receivables related to the investment banking business consisted of unissued warrants valued at \$1,943,761. The warrants were valued using the Black Scholes Model as of the date of the closing of each related private placement and were revalued as of December 31, 2025. See Note 9 for further information. As of December 31, 2025, customer receivables related to the website research and the financial advisory business were \$142,848. The Company estimated an allowance for credit losses to be \$142,848 at December 31, 2025. Included in accounts payable and accrued expenses is \$1,943,761 of accrued stock compensation that is payable to the Company's representatives as of December 31, 2025. {17}------------------------------------------------ #### 6 - FAIR VALUE MEASUREMENTS FASB ASC 820 establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described below: - Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. - Level 2 Inputs to the valuation methodology include: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in inactive markets; - Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation or other means; - If the assets or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. - Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2025. #### Common Stock Common stock that is listed on a securities exchange or that are traded on a listed market are fair valued at their last sale price on the measurement date on the largest securities exchange or listed market on which such securities are traded. {18}------------------------------------------------ #### 6 - FAIR VALUE MEASUREMENTS (CONTINUED) | The fair value of common stock that is not listed on an exchange and that is not traded on
a listed market, and for which no external pricing services or broker-dealer quotations is
available, is estimated in good faith by the Company. The Company has one investment in
a private operating company whose shares do not trade on established exchanges. At
December 31, 2025, the investment in the one common stock of \$75,909 was measured at
fair value based upon an independent valuation performed of the Investee. | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------|------------------------|-------------------------------------| | The methods described above may produce a fair value calculation that may not be
indicative of net realizable value or reflect future fair values. | | | | Furthermore, while the | | Company believes its valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair value
of certain financial instruments could result in a different fair value measurement at the
reporting date. | | | | | | The following table sets forth by level, within the fair value hierarchy, all securities that
are measured at fair value on a recurring basis as of December 31, 2025. | | | | | | | Level 1 | Level 2 | Level 3 | Total | | Common stock:
Service
Industrial
Technology | \$
310,210
108,982
132,417 | \$
-
-
- | \$
-
-
75,909 | \$
310,210
108,982
208,326 | #### Level 3 Information There were no purchases or sales of level 3 securities during the year ended December 31, 2025. In the year ended December 31, 2025, there were no transfers to or from level 3. The Company valued its investment in the level 3 common stock based upon an independent appraisal of the investee. The estimated fair market value of the common stock was \$0.22 per share. {19}------------------------------------------------ ## 7 - CONCENTRATIONS OF CREDIT RISK #### Cash The Company maintains its cash balance at one financial institution, which is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At various times during the year, such balance may exceed insured amounts. The exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institution. The Company has not incurred any losses on this account. #### Customer Receivables and Total Revenue At December 31, 2025, one customer accounted for approximately 79% of net customer receivables. For the year ended December 31, 2025, two customers accounted for approximately 59% of the Company's total revenue of which one customer accounted for approximately 45%. #### 8 - PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following at December 31, 2025: | the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000.
during the year, such balance may exceed insured amounts. The exposure to the Company
is solely dependent upon daily bank balances and the strength of the financial institution.
The Company has not incurred any losses on this account. | | At various times | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|--| | | | | | | At December 31, 2025, one customer accounted for approximately 79% of net customer | | | | | For the year ended December 31, 2025, two customers accounted for approximately 59%
of the Company's total revenue of which one customer accounted for approximately 45%. | | | | | | | | | | Equipment | \$
57,731 | | | | Furniture and fixtures | 49,768 | | | | Leasehold improvements | 36,956 | | | | | 144,455 | | | | Less: accumulated depreciation | 111,877 | | | | | \$
32,578 | | | | | | | | | | | | | Depreciation expense totaled \$11,958 for the year ended December 31, 2025. ### 9 - RELATED PARTY TRANSACTIONS #### Administrative Management Fees The Company operates under an expense sharing agreement and pays a monthly administrative management fee to an affiliated corporation. Administrative management fees of \$61,576 were incurred during the year ended December 31, 2025. {20}------------------------------------------------ ### 9 - RELATED PARTY TRANSACTIONS (CONTINUED) #### Commissions and Underwriting Income The Company received commissions and underwriting income of \$2,360,661 during the year ended December 31, 2025 related to certain investment banking transactions in which the officers or certain employees of the Company are either stockholders or directors of the companies for which funds were raised. The commissions and underwriting income are classified as part of private placement. #### Customer Receivables #### Notes Receivable and Accrued Interest | directors of the companies for which funds were raised.
underwriting income are classified as part of private placement. | | | The commissions and | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------------------|------------------------------------------------|--| | Customer Receivables | | | | | | At December 31, 2025, the Company was owed \$2,105,641 from companies in which the
officers or certain employees of the Company are either stockholders or directors of the
companies for which funds were raised. | | | | | | Notes Receivable and Accrued Interest | | | | | | placement services performed prior to 2025 for an entity (the "Entity") in which officers or
certain employees of the Company were either stockholders and/or directors. The Notes
had interest rates of 6% and 7% respectively.
consisted of the following at January 01, 2025. | Notes
Receivable | Accrued
Interest | Notes receivable and accrued interest
Total | | | 6% Convertible Subordinated Note
7% Convertible Subordinated Note | \$
213,242
28,000 | \$
1,066
164 | \$
214,308
28,164 | | | | \$
241,242 | \$
1,230 | \$
242,472 | | | The principal amounts of \$241,242 were paid in full in January 2025. The Company
agreed to waive the accrued interest of \$1,230. | | | | | #### Loan receivable - Stockholders In addition, during the year the company paid various expenses on behalf of the stockholders. These costs were classified as a loan receivable from stockholders. The Loan receivable had an outstanding balance of \$282,260 as of December 31, 2025. {21}------------------------------------------------ #### 9 - RELATED PARTY TRANSACTIONS (CONTINUED) #### Loan receivable - Employee During the year the company paid various expenses on behalf of an employee. These costs were classified as a loan receivable from employee. The Loan receivable had an outstanding balance of \$29,542 as of December 31, 2025. #### 10 - OPERATING LEASE | On February 15, 2020, the Company's affiliate entered into a lease for its office space
expiring on February 28, 2023 with an option to renew. On December 9, 2022, the lease
was extended for five additional years commencing on March 1, 2023 and terminating
February 28, 2028 pursuant to the terms of the original lease. The lease provides for
scheduled increases in base rent.
Monthly rent over the term of the lease averages
approximately \$4,661. | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--| | As the lease provides for scheduled increases in base rent, rent expense is charged to
operations using the straight-line method over the term of the lease. This results in rent
expense being charged to operations at inception of the lease in excess of required lease
payments. This excess is reflected as a decrease in the operating lease ROU asset in the
accompanying statement of financial condition.
The following tables present the components of lease expense and supplemental balance
sheet information relating to the operating lease as of and for the year ended December 31, | | | | | | | | Statement of Operations Information | | | | Operating lease cost | \$
55,927 | | | Statement of Financial Condition Information | | | | Operating lease right-of-use asset | \$
111,760 | | | Operating lease liability | \$
115,987 | | | Remaining lease term (in years) | 2.17 | | | Weighted average discount rate | 7.00% | | | | | | | | | | | | | | {22}------------------------------------------------ #### 10 - OPERATING LEASE (CONTINUED) | TAGLICH BROTHERS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2025
OPERATING LEASE (CONTINUED)
Supplemental cash flow information related to the lease was as follows, for the year ended | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | | | | | | | | | December 31, 2025: | | | Cash paid for amounts included | | | in the measurement of operating lease liabilities
\$
56,124 | | | Future minimum payments under the operating lease are as follows as of December 31, | | | | TAGLICH BROTHERS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2025 | | | |------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|---------------------------------|-----------------------| | OPERATING LEASE (CONTINUED) | | | | | Supplemental cash flow information related to the lease was as follows, for the year ended
December 31, 2025: | | | | | Cash paid for amounts included | | | | | | | | | | Future minimum payments under the operating lease are as follows as of December 31,
2025: | | | | | | | | | | Year Ending December 31,
2026 | \$
Principal
50,729 | \$
Imputed Interest
6,518 | \$
Total
57,247 | | 2027 | 55,579 | 2,813 | 58,392 | | 2028 | 9,679 | 85 | 9,764 | ### 11 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital of \$100,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2025, the Company has net capital of \$195,797, which was \$24,109 in excess of its minimum required net capital of \$171,688 and a total aggregate indebtedness of \$2,575,315. The Company's net capital ratio was 13.15 to 1. #### 12 - PROFIT SHARING PLAN The Company has a profit sharing plan covering all of its employees who have completed six months of service. The plan allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code. The Company does not match employee contributions. {23}------------------------------------------------ #### 13 - CONTINGENCIES The Company may be involved from time to time in litigation arising from the normal course of business. In management's opinion, as of the date of this report, the Company is not engaged in legal proceedings, which individually or in the aggregate are expected to have a materially adverse effect on the Company's results of operations or financial condition. #### Gunter Settlement On November 12, 2025, the Company entered into a Settlement Agreement with Woodrow W. Gunter II, individually and on behalf of his IRA, SEP-IRA, and as executor of the Estate of Evelyn Knight Gunter, to resolve all claims and counterclaims related to FINRA Arbitration No. 24-01917. Under the terms of the agreement, the Company and its affiliate agreed to make settlement payments totaling \$350,000 in three installments through March 30, 2026. The agreement includes mutual releases of all claims related to the action and the parties' relationship through the date of the agreement, with no admission of liability by any party. The settlement also required resolution of a charging lien asserted by Gunter's former counsel, which was satisfied in connection with the first installment payment. At December 31, 2025 the Company had a balance owed of \$150,000 related to this matter. Each party is responsible for its own legal fees and costs, and the terms of the settlement are subject to confidentiality provisions, except as required by law or regulatory inquiry. The Company considers the matter fully resolved and does not anticipate any further material impact related to this action. As of March 30, 2026, the liability related to this settlement has been fully paid. #### Finra Regulatory Penalty During the year ended December 31, 2025, the Company was subject to a regulatory action by the Financial Industry Regulatory Authority (FINRA). As part of a FINRA Acceptance, Waiver, and Consent ("AWC"), the Company agreed to pay a penalty of \$60,000 in connection with this matter. The penalty has been accrued as of December 31, 2025 and is included in the financial statements under regulatory fees. Management does not expect this regulatory action to have a material adverse effect on the Company's ongoing operations. As of March 30, 2026, the liability related to this settlement has been fully paid. {24}------------------------------------------------ #### 14 - SEGMENTS The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its president, who reviews financial information presented. The Company's principal business activities are performing financial research and analysis, acting as a broker-dealer of securities, and engaging in investment banking services. The CODM assesses performance and allocates resources based on the Company's Statement of Income as the Company's various services requires the CODM to manage and evaluate results of the business on a combined basis. As a single reportable segment entity, the Company's segment performance measure is net income. See Note 2 for a description of the Company's disaggregated revenues by service provided. Significant segment expenses are presented in the Company's statement of income. See Note 7 for a description of the Company's customer receivables and total revenues concentrations. See the Company's financial statements for other financial information regarding the Company's operating segment. All of the Company's revenues are earned in the United States of America. All of the Company's assets are located in the United States of America. {25}------------------------------------------------ #### SUPPLEMENTAL INFORMATION {26}------------------------------------------------ #### TAGLICH BROTHERS, INC. SUPPLEMENTARY INFORMATION SCHEDULE I - COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 FOR THE YEAR ENDED DECEMBER 31, 2025 | TAGLICH BROTHERS, INC.
FOR THE YEAR ENDED DECEMBER 31, 2025 | | | | | | | | | |-------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|----|-----------|--|--|--|--|--| | | | | | | | | | | | | SUPPLEMENTARY INFORMATION
SCHEDULE I - COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 | | | | | | | | | | | | | | | | | | | COMPUTATION OF NET CAPITAL: | | | | | | | | | | Total stockholders' equity | | \$ | 882,044 | | | | | | | Less: Non-allowable assets | | | | | | | | | | Securities owned, at fair value | \$
149,577 | | | | | | | | | Accounts receivable, net of allowance for | | | | | | | | | | credit losses, in excess of commissions payable | - | | | | | | | | | Notes receivable and accrued interest - related party | 311,802 | | | | | | | | | Prepaid expenses | 23,323 | | | | | | | | | Property and equipment | 32,578 | | 517,280 | | | | | | | | | | | | | | | | | Net capital before haircuts on securities positions (tentative net capital) | | | 364,764 | | | | | | | Haircuts on Securities: | | | | | | | | | | Securities positions | 113,954 | | | | | | | | | Undue concentration | 53,651 | | | | | | | | | Money market | 1,362 | | 168,967 | | | | | | | | | | | | | | | | | Net Capital | | \$ | 195,797 | | | | | | | COMPUTATION OF | | | | | | | | | | BASIC NET CAPITAL REQUIRED:
Minimum net capital required (6-2/3% of \$2,515,314) | | | 171,688 | | | | | | | Minimum dollar net capital requirement of reporting broker/dealer | | | 100,000 | | | | | | | Minimum net capital requirements of broker/dealer | | | 171,688 | | | | | | | EXCESS NET CAPITAL | | \$ | 24,109 | | | | | | | | | | | | | | | | | Accounts payable and accrued expenses
Client advances - financial research | 2,563,588
7,500 | | | | | | | | | Operating lease liability in excess of operating lease ROU asset | 4,227 | | | | | | | | | AGGREGATE INDEBTEDNESS | | \$ | 2,575,315 | | | | | | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | | | 13.15 | | | | | | See Report of Independent Registered Public Accounting Firm {27}------------------------------------------------ ### TAGLICH BROTHERS, INC. SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2025 #### Schedule II - Computation for Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission: As the Company does not handle customer cash or securities, the Company does not have any Reserve or Possession and Control Requirements with respect to SEC Rule 15c3-3. #### Schedule III - Information Relating to Possession or Control Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission: As the Company does not handle customer cash or securities, the Company does not have any Reserve or Possession and Control Requirements with respect to SEC Rule 15c3-3. {28}------------------------------------------------ ![](_page_28_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholders of Taglich Brothers, Inc.: We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Taglich Brothers, Inc. (the "Company") identified the following provision of 17 C.F.R. §15c3-3(k) under which Taglich Brothers, Inc. claimed the following exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) and (2) Taglich Brothers, Inc. stated that Taglich Brothers, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to (1) proprietary trading; (2) participating in underwriting as a selling group participant of corporate securities (other than mutual funds); (3) participating in private placement of securities. 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 without exception. The Company's management is responsible for compliance with the exemption provisions and its statements and 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. 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 provisions. 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 provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other 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. Hauppauge, New York April 9, 2026 {29}------------------------------------------------ - - - Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.