# BLACK OAK SECURITIES, INC. X-17A-5 (2024-09-30) — Broker-dealer annual report - Company: BLACK OAK SECURITIES, INC. - Form: X-17A-5 - Filed: 2024-09-30 - Period: 2024-06-30 - Accession: 0000892705-24-000001 - CIK: 892705 - File #: 8-45219 - Type: Broker-dealer - Material weakness: No - Auditor: Kerber Eck & Braeckel LLP - Auditor location: Springfield, IL - Contact: Dwan Gross - Phone: 2174987876 - Signed by: Dwan Gross (President) Original filing: https://www.sec.gov/Archives/edgar/data/892705/000089270524000001/AnnualAuditedReport.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, o.c. 20549 OMB APPROV AL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17 A-5 PART Ill SEC FILE NUMBER | | Pursuant
to Rules 17a-5,
17a-12,
and 18a-7
under | the Securities
Exchange | Act of 1934 | |----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|----------------------------|-----------------------------| | FILING
FOR THE PERIOD | 07/01/23
BEGINNING
AND | 06/30/24
ENDING | | | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT
IDENTIFICATION | | | | Black
NAME
OF FIRM: | Oak
Securities,
Inc. | | | | OF REGISTRANT
(check
TYPE
[]
Broker-dealer
€
€
Check
here
if respondent | all applicable
boxes):
€
Security-based
dealer
Major
swap
is also an OTC derivatives
dealer | security-based
swap | participant | | ADDRESS
OF PRINCIPAL | use a p.o.
PLACE OF BUSINESS:
(Do
not
box | no.) | | | 707
Carroll
St
-
Ste | 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 | | dwan.n.gross@blac'Coo-\- | | (Name) | (Area
Code - Telephone
Number) | (Email
Address) | Q'1
5,(,,
q
(-('ri | | | B. ACCOUNT
ANT
IDENTIFICATION | | | | | | | | | INDEPENDENT
PUBLIC
ACCOUNTANT | whose
reports
are contained | in this
filing* | | | Kerber
Eck
&
Braeckel | LLP | | | | 3200
Robbins
Rd
- | (Name-if
individual,
state
last, first,
and middle
Ste
200A
Springfield | name)
IL | 62704 | | | | | | | (Address)
10/22/2003 | (City) | (State)
718 | (Zip Code) | | | | | | | (Date of Registration with PCAOB%ifapplicable) | | (PCAOB
Registration | Number,
if applicable) | 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)(1)(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 | B'ack oaksecur"'es-'nc
, as
of | | 6/30
,
2 0'4, | 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_2.jpeg) # This filing\*\* contains (check all a - )j (a) Statement of financial condition. - € (b) Notes to consolidated statement of financial condition. - @ (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). - (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.l5c3-1 or 17 CFR 240.l8a-1, as applicable. - (i) Computation of tangible net worth under 17 CFR 240.l8a-2. - (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.l5c3-3. - (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.l5c3-3 or Exhibit A to 17 CFR 240.l8a-4, as applicable. - € (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.l5c3-3. - € (m) Information relating to possession or control requirements for customers under 17 CFR 240.l5c3-3. - € (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.l5c3-3(p%2) or 17 CFR240.l8a-4, as applicable. - [j (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.l5c3-1, 17 CFR 240.l8a-1, or 17 CFR 240.l8a-2, as applicable, and the reserve requirements under 17 CFR 240.l5c3-3 or 17 CFR 240.l8a-4, as applicable, if material differences exist, or a statement that no material differences exist. - (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.l7a-5, 17 CFR 240.l7a-12, or 17 CFR 240.l8a-7, as applicable. - (r) Compliance report in accordance with 17 CFR 240.l7a-5 or 17 CFR 240.l8a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.l7a-5 or 17 CFR 240.l8a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.l7a-5, 17 CFR 240.l8a-7, or 17 CFR 240.l7a-12, as applicable. - € (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.l7a-5 or 17 CFR 240.l8a-7, as applicable. - [j (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l7a-5 or 17 CFR 240.l8a-7, as applicable. - € (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.l5c3-le or 17 CFR 240.l7a-12, as applicable. - € (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.l7a-12(k). - € (z) Other: - '\*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, 2024 {3}------------------------------------------------ ### CONTENTS Page | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCO{JNTING
FIRM | 3 | |----------------------------------------------------------------------------|----| | FINANCIAL
ST ATEMENTS | | | ST ATEMENT
OF FINANCIAL
CONDITION | 5 | | ST ATEMENT
OF OPERATIONS | 6 | | ST ATEMENT
OF
CHANGES
IN
STOCKHOLDER'S
EQUITY | 7 | | STATEMENT
OF
CASH
FLOWS | 8 | | NOTES
TO
FINANCIAL
STATEMENTS | 9 | | SUPPLEMENT
ARY
INFORMATION | | | SCHEDULE
I - NET
CAJ'IT
AL
COMPUT
ATION | 13 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) kerber, Eck & Braeckel LLP 3200 Robbins Road Suite 200A Springfield, IL 62704 P 217.789.0960 F 217.789.2822 ### 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, 2024, 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 all material respects, the financial position of Black Oak Securities, Inc. as of June 30, 2024 and the results of its operations and its cash flows for the year ended June 30, 2024, 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 ofthe 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 peformed 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-""aand cash
equivalents | \$
340,979 | |---------------------------------|---------------| | Commissions
receivable | 54,063 | | Prepaid
expenses | 1,854 | | Total
assets | \$
396,896 | | | | ### LIABILITIES AND STOCKHOLDER'S EQUITY | Commissions
payable | 24,347 | |-------------------------------------------------------------------------|---------| | Income
tax
payable | 10,765 | | Total
liabilities | 35,112 | | Common
stock,
\$1
par value,
1,000
shares
authorized, | | | 610
shares
issued
and outstanding | 610 | | Additional
paid-in
capital | 5,390 | | Retained
earnings | 355,784 | | Total
stockholder's
equity | 361,784 | | Total
liabilities
and stockholder's
equity | 396,896 | The accompanying notes are an integral part of this statement. {7}------------------------------------------------ ### ST ATEMENT OF OPERATIONS ### For the year ended June 30, 2024 | Revenue | | |-------------------------------------|---------------| | Securities
commissions | \$
432,351 | | Inyestment
income | 4,077 | | Total
revenues | 436,428 | | Expenses | | | Administration
fees | 118,200 | | Cornrnissions | 249,942 | | Other
operating
expenses | 16,594 | | Total
expenses | 384,736 | | Income
before
income
taxes | 51,692 | | Income
tax
expense | 13,670 | | Net
Income | 38,022 | | | | The accompanying notes are an integral part of this statement. {8}------------------------------------------------ ### STATEMENT OF CHANGES IN STOCKHOLDER'S EQ{JITY ### For the year ended June 30, 2024 | | Common
Stock | | Additional
Paid-In
Capital | | Retained
Earnings | | Total
Stockholder's | | |-----------------------------------|-----------------|-----|----------------------------------|-------|----------------------|---------|------------------------|---------| | Balance
at July
1, 2023 | | 610 | \$ | 5,390 | \$ | 317,762 | \$ | 323,762 | | Net
Income | | | | | | 38,022 | | 38,022 | | Balance
at June
30,
2024 | | 610 | \$ | 5,390 | \$ | 355,784 | \$ | 361,784 | The accompanying notes are an integral part of tis statement. {9}------------------------------------------------ ### ST ATEMENT OF CASH FLOWS ### For the year ended June 30, 2024 | Cash
flows
from
operating
activities | | | |----------------------------------------------------------------------------|----|----------| | Net
Income | | 38,022 | | Adjustments
to reconcile
net income
to net
cash provided
by | | | | operating
activities | | | | Increase
in commissions
receivable | | (27,629) | | Decrease
in other
receivables | | 7,331 | | Increase
in prepaid
expenses | | (155) | | Increase
in commissions
payable | | 6,552 | | Increase
in tax
liability | | 10,765 | | Net
cash provided
by operating
activities | | 34,886 | | Net
increase
in cash
and cash
equivalents | | 34,886 | | Cash
and cash
equivalents
at beginning
of year | | 306,093 | | Cash
and cash
equivalents
at end of year | \$ | 340,979 | | | | | The accompanying notes are an integral part of this statement. {10}------------------------------------------------ # NOTES TO FINANCIAL ST ATEMENTS # June 30, 2024 # 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 Operations 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 Commission 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 aru'iuities are point-in-time transactions and revenue is recognized on the trade-date of the transaction. Cornrnissions associated with the ongoing investment in the entities are earned simultaneously with the recognition of the commission revenue. # 4. Income Taxes As of June 30, 2024, 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 rulings. The Company is not aware of any circumstances or events that make it reasonablypossible that unrecognized tax benefits may increase or decrease 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, 2024 ### NOTE A - SUMMARY OF ACCOUISTTING POLICIES - Continued ### 5. Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through September 5, 2024, which is the date the financial statements were available to be issued. 'n'irough September 5, 2024, no subsequent events required recognition or disclosure in the financial statements. # 6. Useof Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to 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. ### 7. RecentAccountingPronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326), as amended by Accounting Standards Update 2019-10, to improve financial reporting by requiring timelier recording of credit losses on loans receivable, trade receivables and other financial instniments by replacing the current guidance for recording credit losses. The new standard focuses on estimation of the notion of incurred losses. The standard was implemented July 1, 2023. The impact of the adoption was not considered material to the financial statements. {12}------------------------------------------------ ### NOTES TO FINANCIAL ST ATEMENTS - CONTINUED ### June 30, 2024 ### NOTE B - INCOME TAXES The components of the income tax provision for the year ended June 30, 2024, are as follows: | Current | | |---------|-------------| | Federal | \$
5,855 | | State | ,4910 | | | | ### NOTE C - NET CAJ'ITAL REQUIREMENT As a broker-dealer, the Company is subject to the net capital requirements of the Securities and Exchange Commission. 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, 2024, the Company's net capital and required net capital were \$ 359,930 and \$ 5,000,respectively,anditsratioofaggregateindebtednesstonetcapitalwas0.10:1 or9.76%. ### NOTE D - RELATED-PARTY TRANSACTIONS The Company is related to Administrative Services, Inc. through coinmon 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 \$118,200 for the year ended June 30, 2024. {13}------------------------------------------------ ### SUPPLEMENTARY INFORMATION {14}------------------------------------------------ ### SCHEDULE 1 - NET CAPIT AL COMPUT ATION ### June 30, 2024 | Total
assets | | 396,896 | | | |------------------------------------------------------------------------------------------------------------------------------------------|----|----------|--|--| | Total
liabilities | | 35 ,112 | | | | Ownership
equity | | 36 1,784 | | | | Less:
Non-liquid
assets
Haircut
on securities | | 1,854 | | | | Adjusted
net capital | | 359,930 | | | | Computation
of
aggregate
indebtedness
Other
liabilities | | 35,112 | | | | Aggregate
indebtedness | | 35,112 | | | | Computation
of net
capital
requirement | | | | | | A
- Net
capital
requirement
(6-2/3%
of aggregate
indebtedness) | | 2,341 | | | | B - Minimum
net
capital
requirement | | 5,000 | | | | Net
capital
requirement
(greater
of A
or B) | | 5,000 | | | | Excess
net
capital | \$ | 354,930 | | | | Net
capital
less
greater
of 10%
of
aggregate
indebtedness
or
120%
of minimum
net capital
requirement | \$ | 353,930 | | | | Ratio
of aggregate
indebtedness
to net
capital | | 0.10:1 | | | There are no significant differences between the computation above and the computation filed with the June 30, 2024 Focus IIA. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) Exemption Report and Report oflndependent Registered Public Accounting Firm June 30, 2024 kebcpa.com {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) kerber, Eck & Braeckel LLP 3200 Robbins Road Suite 200A Springfield, IL 62704 P 217.789.0960 F 217.789.2822 ## 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.Et15c3-3(k) under which Black Oak Securities, Inc. claimed an exemption from 17 C.F.R.'sr240.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. + ""'n-ih\*/ it;r Springfield, Illinois September 23, 2024 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 Telephone:217-498-7876 SEC RegistrationNumber: 8-45219 FINRARegistrationNumber: 30889 The Customer Protection Rule outlines three types of exemptions, all limiting the degree of interaction that a broker-dealer may have with customer assets. Although the exemptions may allow a broker-dealer to receive customer monies and securities, they all require the broker-dealer to promptly transmit such monies and securities that it may receive to third parties such as clearing broker-dealers. 1. Black Oak Securities, Inc, is exempt from 15c3-3 because it meets the conditions set forth in paragraph (k) of Rule 15c3-3, The applicable exemption being used is: (k)(l) Exemption - Provided to broker-dealers that limit their activities (both principal and agent)to transactionsin certain redeemablesecuritiesof registeredinvestrnem companies(mutualfunds) or insuranceproducts. Underthis exemption,the brokerdealer may briefly handlecustomerfunds and/or securities,but mustpromptly transmit suchfunds and securitiesreceivedin connectionwith its broker or dealer activities. Additionally, it cannot holdfunds or securitiesfor, or owemoneyor securitiesto, customers. 2. Black Oak Securities, Inc. has met the exemption under 15c3-3(k)(1) throughout the most recent fiscal year without exception. 3. There have been no exceptions, therefore, there are none to identify. I, the undersigned, hereby attest that all statements are current, correct and accurate to the best of my knowledge. Date: -'40,lsq4 Name: Gross Title: President M:/data/client/bos/exemption-report063024 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.