# BLACK OAK SECURITIES, INC. X-17A-5 (2023-09-26) — Broker-dealer annual report - Company: BLACK OAK SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-09-26 - Period: 2023-06-30 - Accession: 0000892705-23-000001 - CIK: 892705 - File #: 8-45219 - Type: Broker-dealer - Material weakness: No - Auditor: Kerber Eck & Braeckel LLP - Auditor location: Springfield, IL - Contact: Dwan Gross - Phone: 217-498-7876 - Signed by: Dwan Gross (President) Original filing: https://www.sec.gov/Archives/edgar/data/892705/000089270523000001/AnnualAuditedReport.pdf --- {0}------------------------------------------------ ## UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, o.c. 20549 # ANNUAL REPORTS FORM X-17 A-5 PART Ill OMB APPROVAL OMB Number: 3235-0123 Expires: act. 31, 2023 Estimated average burden hours per response: 12 SECFILE NUMBER | Information
Required
Pursuant | FACING
PAGE
to
Rules
17a-5,
17a-12,
and 18a-7
under | the
Securities
Exchange | Act
of 1934 | | |-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------|---------------------------|--| | | 07/01/2022 | 06/30/2023 | | | | FILING
FOR
THE
PERIOD | BEGINNING
AND
MM/DD/YY | ENDING | MM/DD/YY | | | | A.
REGISTRANT
IDENTIFICATION | | | | | Black
NAME
OF
FIRM: | Oak
Securities,
Inc. | | | | | TYPE
OF
REGISTRANT
(check
€
EI
Broker-dealer
€
Check here if respondent | a!l applicable
boxes):
€
Security-based
swap
dealer
Major
is also an OTC derivatives
dealer | security-based
swap | participant | | | ADDRESS
OF PRINCIPAL
PLACE | a p.o.
OF
BUSINESS:
(Do
not
use
box | no.) | | | | 707
Carroll
Street | -
Suite
C | | | | | | (No. and Street) | | | | | Pawnee | IL | | 62558 | | | (City) | (State) | | (Zip Code) | | | PERSON
TO
CONT
ACT
WITH | REGARD
TO THIS
FILING | | | | | Dwan
Gross | 217-498-7876 | | | | | (Name) | (Area Code - Telephone
Number) | | | | | | B. ACCOUNTANT
IDENTIFICATION | | | | | | | | | | | INDEPENDENT
PUBLIC
ACCOUNTANT
Kerber
Eck
&
Braeckel | whose
reports
are
contained
LLP | in this
filing* | | | | | (Name-if
individual,
state
last, first,
and middle | name) | | | | 3200
Robbins
Road | Suite
2(
Springfield | IL | 62704 | | | (Address) | (City) | (State) | (Zip Code) | | | 10/22/2003 | | 718 | | | | (Date of Registration
with
PCAOB)(if | applicable) | (PCAOB Registration | Number,
if applicable) | | " 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.l7a-5(e%l%ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ ## OATH OR AFFIRMATION | 1, DWanGrOSS | , swear
(or
affirm)
that,
to
the
best | of my
knowledge
and
belief,
the | |--------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------| | financial
report
pertaining
to
the
firm
of | BlaCkOak SeCL'r"'ej 'n' | , as
of | 6/30 , 2 o;a, 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. ![](_page_1_Picture_3.jpeg) Notary Public - - - - - - - - - - - - - - - - - - - - - - - - - - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR240.l7a-5(e)(3) or 17 CFR240.l8a-7(d)(2), as applicable. {2}------------------------------------------------ ## BLACK OAK SECURITIES, INC. ## FINANCIAL ST ATEMENTS AND INDEPENDENT AUDITORS' REPORT June 30, 2023 {3}------------------------------------------------ ## CONTENTS Page | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCO{JNTING
FIRM | 3 | |----------------------------------------------------------------------------|----| | FINANCIAL
ST ATEMENTS | | | STATEMENT
OF
FINANCIAL
CONDITION | 5 | | ST ATEMENT
OF
OPERATIONS | 6 | | ST ATEMENT
OF
CHANGES
IN
STOCKHOLDER'S
EQUITY | 7 | | ST ATEMENT
OF
CASH
FLOWS | 8 | | NOTES
TO
FIISTANCIAL
STATEMENTS | 9 | | SUPPLEMENTARY
INFORMATION | | | SCHEDULE
1-
NET
CAPIT
AL
COMPUT
ATION | 13 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) kerber, Eck & Braeckel LLP 3200 Robbins Road Suite 200A Springfield, IL 62704 ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholder Black Oak Securities, Inc. ## Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Black Oak Securities, Inc. (an Illinois corporation) as of June 30, 2023, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements, present fairly, in al( material respects, the financial position of Black Oak Securities, Inc. as of June 30, 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 of Opinion These financial statements are the responsibility of Black Oak Securities, Inc.'s management, Our responsibility is to express an opinion on Black Oak Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Black Oak Securities, Inc. in accordance with the u.s. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. kebcpa.com {5}------------------------------------------------ #### Auditors' Report on Supplementary Information Schedule 1 - Net Capital Computation has been subjected to audit procedures performed in conjunction with the audit of Black Oak Securities, Inc.'s financial statements. The supplementary information is the responsibility of Black Oak Securities, Inc.'s management. Our audit procedures included determining whether the supplementary 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 supplementary information. In forming our opinion on the supplemental information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with 17 C.F.R. fi240.l7a-5. In our opinion, Schedule 1 - Net Capital Computation is fairly stated, in all material respects, in relation to the financial statements as a whole. +%4,t4,t,,1,! ,4L7 We have served as Black Oak Securities, Inc.'s auditors since 2009. Springfield, Illinois September 22, 2023 {6}------------------------------------------------ #### ST ATEMENT OF FINANCIAL CONDITION #### June 30, 2023 #### ASSETS | Total
assets | \$
341,557 | |---------------------------------|---------------| | Illinois
tax
receivable | 7,331 | | Prepaid
expenses | 1,699 | | Commissions
receivable | 26,434 | | Cash
and cash
equivalents | \$
306,093 | #### LIABILITIES AND STOCKHOLDER'S EQUITY | Commissions
payable | 17,795 | |----------------------------------------------------------------------------|---------------| | Total
liabilities | 17,795 | | Common
stock,
\$1
par
value,
1,000
shares
authorized, | | | 610
shares
issued
and outstanding | 610 | | Additional
paid-in
capital | 5,390 | | Retained
earnings | 317,762 | | Total
stockholder's
equity | 323,762 | | Total
liabilities
and stockholder's
equity | \$
341,557 | {7}------------------------------------------------ #### ST ATEMENT OF OPERATIONS For the year ended June 30, 2023 | Revenue | | |-----------------------------------|----------------| | Securities
coinmissions | \$
364,797 | | Investment
income | 12 | | Total
revenues | 364,809 | | Expenses | | | Administration
fees | 117,900 | | Commissions | 237,533 | | Other
operating
expenses | 10,417 | | Total
expenses | 365,850 | | Loss
before
income
taxes | (1,041) | | Income
tax
expense | 10,169 | | Net
loss | \$
(11,210) | {8}------------------------------------------------ #### ST ATEMENT OF CHANGES IN STOCKHOLDER'S EQtJITY #### For the year ended June 30, 2023 | | Common
Stock | | Additional
Paid-In
Capital | | Retained
Earnings | | Total
Stockholder's | | |-----------------------------------|-----------------|-----|----------------------------------|-------|----------------------|----------|------------------------|----------| | Balance
at July
1, 2022 | | 610 | \$ | 5,390 | \$ | 328,972 | \$ | 334,972 | | Net
loss | | | | | | (11,210) | | (11,210) | | Balance
at June
30,
2023 | | 610 | \$ | 5,390 | \$ | 317,762 | \$ | 323,762 | {9}------------------------------------------------ ## ST ATEMENT OF CASH FLOWS ## For the year ended June 30, 2023 | Cash
flows
from
operating
activities | | | |----------------------------------------------------------------------------|----|----------| | Net
loss | \$ | (11,210) | | Adjustments
to reconcile
net
loss
to net
cash
used
in | | | | operating
activities | | | | Decrease
in
commissions
receivable | | 12,890 | | Increase
in prepaid
expenses | | (584) | | Decrease
in
commissions
payable | | (18,005) | | | | | | Net
cash
used
in
operating
activities | | (16,909) | | Net
decrease
in
cash
and
cash
equivalents | | (16,909) | | Cash
and
cash
equivalents
at beginning
of year | | 323,002 | | Cash
and
cash
equivalents
at end
of
year | \$ | 306,093 | {10}------------------------------------------------ #### NOTES TO FINANCIAL ST ATEMENTS #### June 30, 2023 #### NOTE A - SUMMARY OF ACCOUNTING POLICIES A summary of the Company's significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. ## 1. Nature of Operatiom Black Oak Securities, Inc. (Company) began operations September 28, 1992, as a brokerdealer in securities. The Company does not receive directly or indirectly, or hold funds or securities for, or owe funds or securities to, customers and does not carry any accounts of, or for customers. The Company is exempt from provisions of Rule 15c3-3 of the Securities and Exchange Cornrnission on the basis that it carries no margin accounts and does not otherwise hold funds or securities for customers. #### 2. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash on hand, deposits with banks and certificates of deposits to be cash. #### 3. Commissions The Company contracts with mutual fund companies and insurers to offer access to shares and annuities of the entities to individual customers. The contracts with these entities provide for a single performance obligation. Commissions on first-time and recurring sales of shares and annuities are point-in-time transactions and revenue is recognized on the trade-date of the transaction. Commissions associated with the ongoing investment in the entities are earned and recognized on a quarterly basis. Commission expense to agents are recorded simultaneously with the recognition of the commission revenue. #### 4. Income Taxes As of June 30, 2023, the Company has recognized in the financial statements the effects of all tax positions and continually evaluates expiring statutes of limitations, audits, changes in tax law, and new authoritative nilings. The Company is not aware of any circumstances or events thai make it reasrinah1y possih1e that unrecognized tax henefits may increase or r1ecrease within 12 months of the statement of financial condition date. Penalties and interest assessed by taxing authorities are included in the provision for income taxes, if applicable. {11}------------------------------------------------ ## NOTES TO FINANCIAL ST ATEMENTS - CONTINUED June 30, 2023 ## NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued #### 5. SubsequerxtEvents Management has evaluated subsequent events for recognition and disclosure in the financial statements through September 22, 2023, which is the date the financial statements were available to be issued. Through September 22, 2023, no subsequent events required recognition or disclosure in the financial statements. 6. UseofEstimates Thepreparationof financial statements in conformity with accountingp rinciples generally accepted in theUnited States ofArnericarequires managementto make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. #### NOTE B - INCOME TAXES The components of the income tax provision for the year ended June 30, 2023, are as follows: | Current | | |---------|--------------| | Federal | \$
10,619 | | State | | | | | | | | {12}------------------------------------------------ #### NOTES TO FINANCIAL ST ATEMENTS - CONTINUED June 30, 2023 #### NOTE C - NET CAPITAL REQUIREMENT As a broker-dealer, the Company is subject to the net capital requirements of the Securities and Exchange Coinmission. Those requirements prohibit a broker-dealer from engaging in any securities transaction at a time when: - a. Its aggregate indebtedness exceeds 15 times its net capital as those defined in Rule 15 c3-1, or - b. Its net capital is less than the minimum required. At June 30, 2023, the Company's net capital and required net capital were \$ 314,732 and \$ 5,000, respectively, and its ratio of aggregate indebtedness to net capital was O.06:1 or 5.65%. #### NOTE D - RELATED-PARTY TRANSACTIONS The Company is related to Administrative Services, Inc. through common ownership and management. The financial activities of Administrative Services, Inc. are not included in the accompanying financial statements. Administrative Services, Inc. pays all common administrative expenses of the Company. Common administrative expenses are set forth in a signed agreement between Administrative Services, Inc. and the Company. The Company makes payments to Administrative Services, Inc. throughout the year for its share of these expenses. Expenses to Administrative Services, Inc. totaled \$117,900 for the year ended June 30, 2023. {13}------------------------------------------------ #### SUPPLEMENTARY INFORMATION {14}------------------------------------------------ #### SCHEDULE l- NET CAPIT AL COMPUT ATION #### June 30, 2023 | Total
assets | \$ | 341,557 | | | |------------------------------------------------------------------------------------------------------------------------------------------|----|---------|--|--| | Total
liabilities | | 17,795 | | | | Ownership
equity | | 323,762 | | | | Less:
Non-liquid
assets
Haircut
on securities | | 9,030 | | | | Adjusted
net
capital | \$ | 314,732 | | | | Computation
of aggregate
indebtedness
Other
liabilities | | 17,795 | | | | kggyegate
indebtedness | | }7,795 | | | | Computation
of net
capital
requirement | | | | | | A
- Net
capital
requirement
(6-2/3%
of aggregate
indebtedness) | | 1,187 | | | | B - Minimum
net
capital
requirement | | 5,000 | | | | Net
capital
requirement
(greater
of A
or B) | | 5,000 | | | | Excess
net
capital | \$ | 309,732 | | | | Net
capital
less
greater
of 10%
of
aggregate
indebtedness
or
120%
of minimum
net capital
requirement | \$ | 308,732 | | | | Ratio
of aggregate
indebtedness
to net
capital | | 0.06:1 | | | There are no significant differences between the computation above and the computation filed with the June 30, 2023 Focus IIA. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) Exemption Report and Report oflndependent Registered Public Accounting Firm June 30, 2023 kebcpa.com {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) kerber, Eck & Braeckel LLP 3200 Flobbins Road Suite 200A Springfield, IL 62704 ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholder of Black Oak Securities, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Black Oak Securities, Inc. identified the following provisions of 17 C.F.R.Eg15c3-3(k) under which Black Oak Securities, Inc. claimed an exemption from 17 C.F.R.Er240.l5c3-3: (1) (the "exemption provisions") and (2) Black Oak Securities, Inc. stated that Black Oak Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Black Oak Securities, Inc.'s management is responsible for compliance with the exemption provisions 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 Black Oak 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, 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)(l) of Rule 15c3-3 under the Securities Exchange Act of 1934. +4-giJ]5(yo Springfield, Illinois September 22, 2023 kebcpa.com {17}------------------------------------------------ ## Exemption Report (Notice Pursuant to Rule 15c3-3) Broker or Dealer Name: Black Oak Securities, Inc. Address: 770 Carroll st., Suite C Pawnee, IL 62558 Teleplione: 217-498-7876 SEC Registration Number: 8-45219 FINRA Registration Number: 30889 The Customer Protection Rule outlines three types of exemptions, all limiting the degree of interaction tliat a broker-dealer may have with customer assets. Although tlie exemptions may allow a broker-dealer to receive customer monies and sectuities, they all require tlie broker-dealer to promptly transmit such monies and securities that it may receive to tliird parties sudi as cleaiing broker-dealers. 1. Black Oak Securities, Inc. is exempt from I 5c3-3 because it meets tlie conditions set foith in paragraph (k) of Rule 15c3-3. The applicable exemption being rised is: (lc)(l) Exernptioix - Provided to broker-dealers that limit their activities (both prirxcipa/ and agent) to transactions in certain redeemablesecurities of registered investment companies (mutualfioids) or irisuranceproducts. Under this exemption, the brolcerdealer znaybriefly handle customerfimds arid/or securities, but >nust promptly transmit suchfimds ayzdsecurities received in connection ysiithits brolcer or dealer activities. Additionally, it cart not hold fimds or securities for, or owe money or securities to, customers. 2. Black Oak Securities, Inc. has met tlie exemption under 15c3-3(k)(1) throughorit the most recent fiscal year without exception. 3. Tliere have been no exceptions, therefore, there are none to identify. I, the undersigned, hereby attest tliat all statements are current, correct and accurate to the best of my knowledge. Date: o-'bO- ?-'E Nam aDwan N. Gross Title: President Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.