# GLOBALINK SECURITIES, INC. X-17A-5 (2024-03-26) — Broker-dealer annual report
- Company: GLOBALINK SECURITIES, INC.
- Form: X-17A-5
- Filed: 2024-03-26
- Period: 2023-12-31
- Accession: 0000883463-24-000005
- CIK: 883463
- File #: 8-44509
- Type: Broker-dealer
- Material weakness: No
- Auditor: Brian W. Anson
- Auditor location: Tarzana, CA
- Contact: Junhua Liao
- Phone: 6269645966
- Email: michael.liao@globalinkusa.com
- Website: globalinkusa.com
- Signed by: Michael Junhua Liao (President and CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/883463/000088346324000005/glsannualreport2023-1.pdf
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
> **ANNUAL REPORTS FORM X-17A-5 PART Ill**
0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12
SEC FILE NUMBER 8-44509
**FACING PAGE**
**Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934**
FILING FOR THE PERIOD BEGINNING **O 1/01/2023** MM/DD/VY AND ENDING **12/31/2023** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Globalink Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): C!l Broker-dealer □ Security-based swap dealer □ Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 3452 East Foothill Boulevard, Suite 1040 (No. and Street) Pasadena California 91107 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Michael Junhua Liao 626-964-5966 michael.liao@globalinkusa.com (Name) {Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Brian W. Anson, CPA (Name - if individual, state last, first, and middle name) 18455 Burbank Blvd. #404 Tarzana CA (Address) (City) (State) 09/15/2005 2370 **FOR OFFICIAL USE ONLY** 91356 (Zip Code) \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public
accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable.
**Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.**
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Globalink Securities, Inc.
Report Pursuant to Rule 17a-5 (d)
Financial Statements
For the Year Ended December 31, 2023
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#### **Table of Contents**
**Page**
| | SEC Form X-17A-5 Part III and Oath of Affirmation | 1-2 |
|-------------------------|----------------------------------------------------------------------------------|-------|
| | Report of Independent Registered Public Accounting Firm | 3 |
| | Statement of Financial Condition | 4 |
| Statement of Operations | | 5 |
| | Statement of Changes in Shareholders' Equity | 6 |
| Statement of Cash Flows | | 7 |
| | Notes to Financial Statements | 8-12 |
| Schedule I | Computation of Net Capital Requirements
Pursuant to Rule 15c3-1 | 13-14 |
| Schedule II | Computation for Determination of Reserve
Requirements Pursuant to Rule 15c3-3 | |
| Schedule III | Information relating to Possession or Control
Requirements under Rule 15c3-3 | 16 |
| Exemption Report Review | Report of Independent Registered Public Accounting Firm | 17 |
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#### **OATH OR AFFIRMATION**
I, Michael Junhua Liao swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Globalink Securities, Inc. as of **12/31** 2~ is true and correct. I further swear (or affirm) that neither the company nor any
partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.
#### **This filing\*\* contains (check all applicable boxes):**
- **liiii** (a) Statement of financial condition.
- D (b) Notes to consolidated statement of financial condition.
- **liiii** (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).
- **[iii** (d) Statement of cash flows.
- **liiii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes in liabilities subordinated to claims of creditors.
- **liiii** (g) Notes to consolidated financial statements.
- **[iii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (k) Computation for determination of security-based swap reserve requirements pursuant t o Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- **liiii** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- Iii (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- **liiii** (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.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- **liiii** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (t) Independent public accountant's report based on an examination of the statement of financial condition.
- **liiii** (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.
- D (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.
- **liiii** (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable.
- D (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). D (z) Other: \_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
-
- \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.
Signat
Title: President/CEO
**e e e dlbt • e e** ~ MICHAEL CHU Notary Public · California **z** Los Angeles County ii; Commls1lon # 2334712 y Comm . Expires Oct 2, 2024
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#### **CALIFORNIA ACKNOWLEDGMENT CIVIL CODE** § **1189**
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#### **BRIAN W. ANSON**
18455 Burbank Blvd., Suite 404, Tarzana, CA 91356 • Tel. **(818)** 636-5660 • Fax (818) 881-2605
#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Shareholders' and Board of Directors of GlobaLink Securities, Inc.
#### **Opinion on the Financial Statements**
I have audited the accompanying statement of financial condition of GlobaLink Securities, Inc. as of December 31, 2023, the related statements of operations, changes in shareholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position of GlobaLink Securities, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
These financial statements are the responsibility of GlobaLink Securities, Inc. 's management. My responsibility is to express an opinion on GlobaLink Securities, Inc . 's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and am required to be independent with respect to GlobaLink Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I 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 . My audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and perfo1ming procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overa ll presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.
#### **Auditor's Report on Supplemental Information**
The infmmation contained in Schedule I, II, and III ("Supplemental Information") has been subjected to audit procedures perfonned in conjunction with the audit of Global ink Securities, fnc . 's financ ial statements. The Supplemental Information is the responsibility of the GlobaLink Securities, Inc.'s management. My 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 lnformation. In forming my opinion on the Supplemental Information, r evaluated whether the Supplemental Information, including its form and content is presented in conformity with 17 C.F.R. § 240. l 7a-5 . In my opinion, Schedules I, JI, and III are fairly stated, in all material respects, in relation to the financial statements taken as a whole.
*/41i*
Brian W. Anson Certified Public Accountant I have served as GlobaLink Securities, Inc. 's auditor since 2021. Tarzana, California March 19, 2024
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#### **Globalink Securities, Inc. Statement of Financial Condition December 31, 2023**
#### **Assets**
| Cash | \$ | 1,930,484 |
|------------------------------------------------------|----|--------------|
| Clearing brokers cash deposits | | 351,163 |
| Securities | | 319,767 |
| Accounts receivable | | 27,019 |
| Settlement receivable | | 500,603 |
| Commission receivable | | 382,588 |
| Property and equipment net of \$249,707 depreciation | | 28,096 |
| Lease Asset | | 46,481 |
| CRD deposit | | 5,526 |
| Other assets -
non allowable | | 28,824 |
| Due from related party | | 1,972,547 |
| Investment in affiliates | | 73,061 |
| Security deposit | | 11,038 |
| Total Assets | | \$ 5,677,197 |
#### **Liabilities and Shareholders' Equity**
#### **Liabilities**
| Cash overdraft | \$
2,879 |
|--------------------------------------------------|-------------|
| Commissions payable | 734,358 |
| Litigation payable | 15,000 |
| Settlement payable | 705,680 |
| Accounts payable | 26,046 |
| Lease payable | 46,481 |
| Other payables | 570 |
| Total Liabilities | 1,531,014 |
| Shareholders' Equity | |
| Common stock -
(\$10 par value, 10,000 shares | |
| authorized, issued and outstanding) | 100,000 |
| Paid-in Capital | 2,861,277 |
| Total Shareholders' Equity | 4,146,183 |
|--------------------------------------------|--------------|
| Total Liabilities and Shareholders' Equity | \$ 5,677,197 |
1,184,906
Retained Earnings
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#### **Globalink Securities, Inc. Statement of Operations For the Year Ended December 31, 2023**
| Revenues | |
|-----------------------------|-----------------|
| Agency Commissions | \$
1,423,832 |
| Mutual Funds | 1,225,215 |
| Variable Product Commission | 3,530,005 |
| Interest | 497,882 |
| Unrealized Gains | 34,781 |
| Other | 78,317 |
| Total Revenues | \$6,790,032 |
| Cost of Sales | |
| Clearing house expense | 160,108 |
| Commission Expenses | 4,993,139 |
| | |
| Total Cost of Sales | \$ 5,153,247 |
| Gross Profit | 1,636,785
\$ |
| Operating Expenses | |
| Advertising | 62,788 |
| Auto Expenses | 9,804 |
| Depreciation | 17,497 |
| Regulatory Expense | 47,433 |
| Insurance | 54,810 |
| Internet | 9,901 |
| Office Expense | 73,117 |
| Postage and Delivery | 1,965 |
| | |
| Professional Services | 117,527 |
| Rent | 136,009 |
| Settlement expense (net) | 214,352 |
| Salaries | 793,951 |
| Payroll taxes | 57,753 |
| Telephone | 7,434 |
| Travel and Entertainment | 46,292 |
| Total Operating Expenses | \$ 1,650,633 |
| Loss Before Tax Provision | \$
(13,848) |
| State | \$
800 |
| Net Loss | \$ (14,648) |
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#### **Globalink Securities, Inc. Statement of Changes in Shareholders' Equity For the Year Ended December 31, 2023**
| | Common | | | Retained | |
|----------------------------|-----------------|-----------------|--------------------|------------------------|-------------|
| | Stock
Shares | Common
Stock | Paid-In
Capital | Earnings
(Deficit) | Total |
| Balance, December 31, 2022 | 10,000 | \$100,000 | \$2,861,277 | \$ 1,199,554 | \$4,160,831 |
| Net Loss | | | | (14,648) | (14,648) |
| Balance, December 31, 2023 | 101000 | \$1001000 | | \$21861)77 \$111841906 | \$ 4)46)83 |
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#### **Globalink Securities, Inc. Statement of Cash Flows For the Year Ended December 31, 2023**
Cash Flow from Operating Activities
| Net Loss | \$
(14,648) |
|-------------------------------------------------------|----------------------|
| Depreciation expense
Unrealized Gain on Securities | 17,497
(\$34,781) |
| Changes in operating assets and liabilities: | |
| Accounts receivable | (9,614) |
| Settlement receivables | (500,603) |
| Commissions receivable | 283,988 |
| Other assets | 69,243 |
| Cash overdraft | 2,879 |
| Accounts payable | 4,291 |
| Litigation payable | (10,000) |
| Settlement payables | 705,680 |
| Commission payable | (114,229) |
| Net cash provided by operating activities | 399,703 |
| Cash Flow from Investing Activities | |
| Office Equipment | (10,3
56) |
| Net cash used in investing activities | (10,356) |
| Cash Flow from Financing Activities | |
| Due from related parties | 138,736 |
| Net cash provided by financing activities | 138,736 |
| Net Increase in Cash | 528,083 |
| Cash: Beginning of the Year | 1,402,401 |
| Cash: End of the Year | \$1,930,484 |
| Cash paid for taxes | \$
0 |
| Cash paid for interest. | \$
Q |
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# **Note 1- Organization and Nature of Business**
Globalink Securities, Inc. (the Company), formerly Palm Springs Retirement Investments Corporation (PSRIC), was incorporated in the State of California on January 3, 1992 and is registered as a broker-dealer in securities under the Securities Exchange Act of 1934. The Company, in connection with its activities as a broker-dealer, holds no funds or securities for customers.
## **Note 2 -- Significant Accounting Policies**
**Basis of Presentation** - The Company conducts business on a fully disclosed basis. The Company does not hold customer funds and/or securities. The Company currently conducts several types of business as a securities broker-dealer, including:
- Broker or dealer retailing corporate equity securities over the counter
- Broker or dealer selling corporate debt securities
- Mutual fund retailer
- U.S. government securities broker
- Broker or dealer selling variable life insurance or annuities
- Solicitor of time deposits in a financial institution
- Put and call broker or dealer or option writer
- Private placements of securities
**Use of Estimates** -The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
**Revenue Recognition-The** company is a full-service introducing broker dealer. Revenues are generated in the following ways:
- 1) Clients and brokers place trades (usually stocks, options, bonds, and mutual funds) online or from the company's back-office system which will go through to its clearing firm Wedbush Securities and Interactive Brokers. Wedbush Securities and Interactive Brokers pays the Company commissions on a monthly basis.
- 2) Brokers assist or help clients submit/purchase financial products (mutual funds, VAs, and VUL' s) directly from issuing companies. The Company receives commissions from the issuing companies.
- 3) The Company receives monthly or quarterly income from 12B-1 fees, management fee rebates, and interest rebates through mutual fund and management companies.
- 4) The Company receives affiliation/compliance fees from registered persons on a monthly basis.
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#### **Note 2 -- Significant Accounting Policies ( continued)**
**Related Party** - The Company was owed \$1 ,972,547 at December 31, 2023 from related parties. The Company owns 100% of investment advisory firm Globalink Wealth Management, LLC. A California based registered investment advisor. The Company owns 40% of Globalink Securities, Inc. These companies are being shown on the Balance Sheet under the equity method.
## **Revenue from Contracts with Customers**
Per ASC 606, the Company identifies each contract with the customer; identifies the performance obligations in the contract; determines the transaction price; allocates the transaction price to the performance obligations in the contract; and recognizes revenue when (or as) the entity satisfies a performance obligation.
**Income Taxes** - The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. Currently, the Company considers deferred taxes refundable or payable immaterial.
The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State organization tax returns are more likely than not to be sustained upon examination. The Company is subject to examinations by U.S. Federal and State tax authorities from 2020 to the present, generally for three years after they are filed.
**Depreciation** -The Company capitalizes all purchases over \$1,000. Depreciation is calculated on the straight-line method over 5 years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Property and equipment are carried at cost.
Property and equipment consist of the following at December 31, 2023:
| Automobile | \$
12,000 |
|--------------------------------|--------------|
| Office equipment | 135,731 |
| Furniture and fixtures | 130,072 |
| Less: accumulated depreciation | (249,707) |
| | |
| Property and equipment, net | \$ 28,096 |
Depreciation expense for the year ended December 31 , 2023 was \$17,497.
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#### **Note 3-Fair Value**
F ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by F ASB ASC 820, are used to measure fair value.
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access.
- Level 2 inputs are inputs ( other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly.
- Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data.)
The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 .
| Fair Value Measurements on a Recurring Basis | | | | | | |
|----------------------------------------------|----|---------|----|--------|---------|---|
| As of December 31, 2023 | | | | | | |
| Assets | | Levell | | Level2 | Level 3 | |
| Bonds and Securities | \$ | 319,767 | \$ | Q_ | \$ | Q |
| Total | \$ | 319.767 | \$ | 0 | \$ | 0 |
## **Note 4 - Receivable From and Payable to Broker-Dealers and Clearing Organizations**
Amounts receivable from and payable to broker-dealers and clearing organizations at December 31 , 2023, consist of the following :
| | Receivable | Payable |
|-----------------------------------------|------------|-----------|
| Fees and commissions receivable/payable | \$382,588 | \$734,358 |
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#### **Note 5 - Operating Leases**
The Company has an operating lease in Pasadena, California for 3 9 months beginning February 2021. Minimum future rental commitments are:
| Year Ending | Amount | |
|-------------------|-----------|--|
| December 31, 2024 | \$ 46,481 | |
Rent expense for year ended December 31, 2023 was \$136,009. The Company recognizes and records its operating lease in accordance with F ASB ASC 842, *Lease Accounting Standard.* Under that guidance the Company records the future operating leases at its net present value of \$17,169 on the balance sheet December 31, 2023, reflected by both an asset, called a Right of Use Asset, and a liability called a Right of Use Liability.
The company is still in the process of negotiating an extension of its current lease which has not been finalized yet.
## **Note 6 - Concentration of Credit Risk**
The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty.
## **Note** 7 - **Legal Expense**
The Company maintains a \$15,000 litigation payable account for an employment lawsuit filed against the Company The case has been settled for \$15,000 but is awaiting court approval. There is no reason to believe this will not happen. In 2023 FINRA conducted an investigation of the Company charging of commissions for its foreign investor clients regarding fixed-income trading activities. The investigation was completed in February 2024. In February 2024 FINRA recommended the following restitution, interest, and a fine totaling \$700,000. Approximately \$500,000 of this amount will be reimbursed by its brokers. The Company's counsel plans to fight the penalty and restitution and feels the amount may be less than the recorded amounts.
## **Note 8-Retirement Plan**
The Company has sponsored a simple IRA retirement plan with the Company matching provisions covering all of its employees. The Company contributed \$23,477 to a simple IRA account for qualified employees in 2023. The Company's contribution is included in Salaries on the Statement of Operations.
#### **Note 9 - Net Capital Requirements**
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC rule 5c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Net capital and aggregate indebtedness change day by day, but on December 31, 2023, the Company had net capital of \$1 ,323,034 which was \$1,224,065 in excess of its required net capital requirement of\$ 98,969. The Company's aggregate indebtedness of \$1,484,533 to net capital is 1.12 to 1.
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#### **Note 10 - Provision for Income Taxes**
The Company files its Federal and state tax returns on the cash basis. The tax provision at December 31, 2023 consists of the following:
| Federal | \$
0 |
|----------------------------|-----------|
| California | 800 |
| Total Income Tax Provision | \$
800 |
## **Note 11- Deposit- Clearing Organization**
The Company has an agreement with its clearing brokers which states a minimum deposit.
## **Note 12 - Off Balance Sheet Risk**
As discussed in Note 1, the customers' securities transactions are introduced on a fully disclosed basis with its clearing broker. The clearing broker carries all of the accounts of the customers of the Company and is responsible for execution, collection and payment of funds, and receipt and delivery of securities relative to customer transactions. Off-balance sheet risk exists with respect to the transactions due to the possibility that customers may charge any losses they incur to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers and to ensure that customer transactions are executed properly by the clearing broker. •
## **Note 13 -Exemption from the SEC Rule 15c3-3**
The Company is an introducing broker-dealer that clears all transactions with and for customers on a fully disclosed basis with an independent securities clearing company and promptly transmits all customer funds and securities to the clearing company, which carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto pursuant to the requirements of the SEC Rule 17a-3 and 17a-4, as are customarily made and kept by a clearing broker or dealer.
## **Note 14 - Subsequent Events**
Management has reviewed the results of operations for the period of time from its year end December 31 , 2023 through March 19, 2024, the date the financial statements were available to be issued and has determined except for the adjustments in note 7 that no other adjustments are necessary to the amounts reported in the accompanying financial statements nor have any subsequent events occurred, the nature of which would require disclosure.
{15}------------------------------------------------
#### **Globalink Securities, Inc. Schedule** I -- **Computation of Net Capital Requirements Pursuant To Rule 15c3-1 December 31, 2023**
| Computation of Net Capital | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
| Total ownership equity from statement of
financial condition | \$4,146,183 |
| Nonallowable assets -
page 14 | (2,794,798) |
| Security Position Haircuts | (28,351) |
| Net Capital | \$ 1,323.034 |
| Computation of Net Capital Requirements | |
| Minimum net aggregate indebtedness
6-2/3 % of net aggregate indebtedness | \$
98,969 |
| Minimum dollar net capital required | \$
5,000 |
| Net Capital required (greater of above amounts) | \$
98,969 |
| Excess Capital | \$
1,224,065 |
| Excess net capital at 1000% (net capital less 10% of
aggregate indebtedness) | \$ 1,169,933 |
| Computation of Aggregate Indebtedness
Total liabilities | \$ 1,484,533 |
| Percentage of aggregate indebtedness to net capital | 1.12 to 1 |
| The following is a reconciliation of the above net capital
computation with the Company's corresponding
unaudited computation pursuant to Rule 179-S(d) (4): | |
| Net capital unaudited
Accrual of settlement payable
Adjustment -
Net capital audited | \$2,006,004
(682,970)
\$1,323,034 |
+
{16}------------------------------------------------
## **Globalink Securities, Inc. Non-Allowable Assets December 31, 2023**
Nonallowable Assets
| | \$ |
|------------------------------------|------------|
| Property and equipment (less dep.) | \$ 28,096 |
| Rent deposit | ,038
11 |
| (I) Petty Cash | 1,376 |
| NASD CRD Deposit | 5,526 |
| Accounts Receivable | 27,019 |
| Settlement Receivables | 500,603 |
| Subscription Receivable | 63,216 |
| Commission Receivable | 38,944 |
| Globalink: Insurance Services | 9,556 |
| Globalink: Wealth Management | 63,505 |
| Key Person Insurance cash value | 28,887 |
| Prepaid Assets | 127,032 |
| Loans to Employees | 1,890,000 |
| | |
| Total non-allowable assets | \$2,794,798 |
|----------------------------|-------------|
|----------------------------|-------------|
{17}------------------------------------------------
#### **Globalink Securities, Inc. Schedule** II - **Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3 As of December 31, 2023**
The Company is exempt from the Reserve Requirement of computation according to the provision of Rule 15c3-3(k)(2)(ii)
The Company has no reserve deposit obligations under SEC Rule 15c3-3 because it is a "non-covered" firm pursuant to footnote 74 to SEC Release 34-70073 and therefore is not subject to the Rule.
{18}------------------------------------------------
## **Globalink Securities, Inc. Schedule III - Information Relating to Possession or Control Requirements under Rule 15c3-3 As of December 31, 2023**
The Company is exempt from the Rule 15c3-3 as it relates to possession and control requirements under the (k)(2)(ii) exemptive provision.
The Company has no possession or control obligations under SEC Rule 15c3-3(b) because it is a "non-covered" firm pursuant to footnote 74 to SEC Release 34-70073 and therefore is not subject to the Rule.
{19}------------------------------------------------
#### **GlobaLink Securities, Inc. 3452 E. Foothill Blvd., Site 1040 Pasadena, CA 91107**
#### **Exemption Report**
3/19/2024
Brian W. Anson, CPA 18455 Burbank Blvd., Suite 404 Tarzana, CA 91356
Re: SEA Rule 17a-5(d) (4) Exemption Report
Dear Mr. Anson:
Globalink Securities Inc. (the "Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission ( 17 C.F .R. §240. l 7a-5, "Reports to bemade by certain brokers and dealers"). This Exemption Report was prepared as required by 17C.F.R. § 240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states thefollowing:
- (1) The Company claimed exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. §240. l 5c3-3 (k)(2)(ii)
- (2) The Company met the identified exemption provisions in 17 C.F .R. §240. l 5c3-3 throughout the most recent fiscal year without exception.
- < 3 ) 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) broker or dealer retailing corporate securities; (2) broker or dealer retailing corporate debt securities; (3) Underwriting or selling group participation on a best efforts basis; ( 4) Mutual fund retailer on an application basis (5) U. S Government Securities as a broker or dealer; (6) Municipal securities as a broker or dealer; (7) broker or dealer selling variable life insurance or annuities; (8) put and call broker or dealer or option writer; (9) non-exchange member arranging for transactions in listed securities by exchange member; (I 0) private placements of securities; and/or (11) solicitor of time deposits in a financial institution (Certificates of Deposit) and The Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b )(2) of Rule l 5c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are
{20}------------------------------------------------
payable to the issuer orits agent and.not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule l 5c3-3) throughout the most recent fiscal year without exception.
Glob•:~ .ities Inc.:> **By:** • ----
Name: Michael Junhua Liao Title: President/CEO
{21}------------------------------------------------
**BRIAN W. ANSON**
*Certified Public Accountant* 18455 Burbank Blvd., Suite 404, Tarzana, CA 91356 • Tel. (8 18) 636-5660 • Fax (818) 881-2605
## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
Board of Directors GlobaLink Securities, Inc. Pasadena, California
I have reviewed management's statements, included in the accompanying Exemption Rep011 in which (I) GlobaLink Securities, Inc., identified the following provisions of 17 C.F.R. § l 5c3-3(k) under which GlobaLink Securities, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3 : (k)(2)(ii) (the "exemption provisions") and (2) GlobaLink Securities, Inc., stated that GlobaLink Securities, Inc., met the identified exemption provisions throughout the most recent year without exception and (3) GlobaLink Securities, Inc. stated that GlobaLink Securities, Inc.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 and/or (2) effecting securities transactions via subscriptions on a subscription way basis where funds are payable to the issuer or its agent and not the Company and the Company (i) 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) ofRulel5c2-4 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); (ii) did not carry accounts of or for customers; and (iii) did not cany PAB accounts (as defined in Rule 15c3-3) throughout the most recent year ended December 31, 2023 without exception. GlobaLink Securities, Inc. 's management is responsible for compliance with the exemption provisions and its statements.
My 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 GlobaLink Securities, Inc. '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, I do not express such an op1ruon.
Based on my review, I am not aware of any material modifications that should be made to the management's statements referred to above for them to be fairly stated, in all material respects.
e.~
Certified Public Accountant Tarzana, California March 19, 2024
{22}------------------------------------------------
#### **BRIAN W. ANSON**
*Certified Public Accountant*
18455 Burbank Blvd., Suite 404, Tarzana, CA 91356 • Tel. (818) 636-5660 • Fax (818) 881-2605
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES
Board of Directors of GlobaLink Securities, Inc.
I have perfonned the procedures included in Rule l 7a-5(e)( 4) under the Securities Exchange Act of 1934 and in the Securities investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31 , 2023. The management of GlobaLink Securities, Inc. (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7.
Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31 , 2023. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures perfonned may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures perfonned are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, I make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures I performed, and my associated findings are as follows:
- 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences.
- 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-1 7 A-5 Part III for the year ended December 31, 2023, with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31 , 2023, noting no differences.
- 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences.
- 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedul es and working papers supporting the adjustments, noting no differences; and
- 5) Compared the amount of any overpayment applied to the current assessment with the Form Sf PC-7 on which it was originally computed, noting no differences.
I was engaged by the Company to perform this agreed-upon procedures engagement and conducted my engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). I was not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Fonn SIPC-7 for the year ended December 31 , 2023. Accordingly, I do not express such an opinion or conclusion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you.
I am required to be independent of the Company and to meet my other ethical responsibilities in accordance with the relevant ethical requirements related to my agreed-upon procedures engagement. This report is intended solely for the infonnation and use of the Company and SIPC and is not intended to be and should not be used by anyone other than pecified parties.
*~--11* Bri . Anson
Certified Public Accountant Tarzana, California March 19, 2024
{23}------------------------------------------------
#### SECURITIES INVESTOR PROTECTION CORPORATION
#### **AMENDED GENERALASSESSMENT FORM**
For the fiscal year ended 12/31/2023
| I | ,,,,,,------------------------~-------
Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME | SEC No. | |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------|
| | GLOBALINK SECURITIES INC | 8-44509 | |
| | ---,--------------:-.--
======----~:a:.=:=====
For the fiscal period beginning
1/1/2023
and ending
:a:-
:=-= | 12/31/2023 | |
| 1 | Total Revenue (FOCUS Report- Statement of Income (Loss)- Code 4030) | | \$ 6,790,033.00 |
| 2 | Additions: | | |
| | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | |
| | b Net loss from principal transactions in securities in trading accounts. | | |
| | c Net loss from principal transactions in commodities in trading accounts. | | |
| | d Interest and dividend expense deducted in determining item 1. | | |
| | e Net loss from management of or participation in the underwriting or | | |
| | distribution of securities.
f Expenses other than advertising, printing, registration fees and legal fees | | |
| | deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | |
| | g Net loss from securities in investment accounts. | | |
| | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 |
| 3 | Add lines 1 and 2h | | \$ 6,790,033.00 |
| 4 | Deductions: | | |
| | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the | | |
| | business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 1,802,620.00 | |
| | b Revenues from commodity transactions. | | |
| | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$154,929.00 | |
| | d Reimbursements for postage in connection with proxy solicitations. | | |
| | e Net gain from securities in investment accounts. | \$34,780.00 | |
| | f 100% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | |
| | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | | |
| | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | |
| 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss) - Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | |
| | | | |
| | b 40% of margin interest earned on customers securities accounts | | |
| | (40% of FOCUS Report- Statement of Income (Loss)-
Code 3960)
\$132,116.00 | | |
| | c Enterthegreaterofline5aor5b | \$132,116.00 | |
| | | | \$2,124,445.00 |
| 6 | Add lines 4a through 4h and 5c. This is your total deductions. | | \$ 4,665,588.00 |
{24}------------------------------------------------
SIPC-7A 37 REV0722
#### **AMENDED GENERAL ASSESSMENT FORM**
For the fiscal year ended 12/31/2023
| \$ 0.00 |
|---------------------------|
| |
| |
| |
| \$7,144.00 |
| |
| |
| |
| (\$ 146.00) |
| \$ 0.00 |
| \$ 0.0~ |
| (\$ 146.00) |
| --
=-- -
_,.,,,,,,. |
| |
Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number)
By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SI PC's Privacy Policy
| GLOBALINK SECURITIES INC | JUNHUA LIAO |
|--------------------------|-------------------------------|
| (Name of SIPC Member) | (Authorized Signatory) |
| 3/15/2024 | michael.liao@globalinkusa.com |
| (Date) | (e-mail address) |
| | |
Completion of the "Authorized Signatory" line will be deemed a signature.
**This form and the assessment payment are due 60 days after the end of the fiscal year.**
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.