# THE WINNING EDGE FINANCIAL GROUP, INC. X-17A-5 (2024-04-03) — Broker-dealer annual report - Company: THE WINNING EDGE FINANCIAL GROUP, INC. - Form: X-17A-5 - Filed: 2024-04-03 - Period: 2023-12-31 - Accession: 0000916681-24-000001 - CIK: 916681 - File #: 8-46743 - Type: Broker-dealer - Material weakness: No - Auditor: Michael T Remus CPA - Auditor location: Hamilton Square, NJ - Contact: Ben Zangara - Phone: 12016377296 - Email: benzangara@winningedgefinancial.com - Website: winningedgefinancial.com - Signed by: Ben Zangara (President) Original filing: https://www.sec.gov/Archives/edgar/data/916681/000091668124000001/wefgauditreport2023final.pdf --- {0}------------------------------------------------ | | UNITED STATES | | 0MB APPROVAL | | | | |----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------------------------------|--|--|--| | | | 0MB Number: 3235-0123
Expires: Nov. 30, 2026 | | | | | | | Washington, D.C. 20549 | | | | | | | | | SEC FILE NUMBER | | | | | | ANNUAL REPORTS
FORM X-17 A-5 | | | 8-46743 | | | | | | PART Ill | | | | | | | | | | | | | | | | 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 01/01/2023 | AND ENDING 12/31/2023 | | | | | | | | MM/DD/VY | | MM/DD/VY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME oF FIRM: The Winning Edge Financial Group, Inc. | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
l:!J Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer
□ Major security-based swap participant | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 23 Calstan Place | | | | | | | | | (No. and Street) | | | | | | | Clifton | NJ | | 07013 | | | | | (City) | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Ben Zangara | 973-773-6600 | | benzangara@winningedgefinancial.com | | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | Michael T Remus CPA | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | PO Box 2555 | Hamilton Square | NJ | 08690 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 02/23/2010 | 3598 | | | | | | | Ir• of Regl~rnt~, with PCAOBJI• appll@ble) | | | (PCAOB Reglstrnfo, N"mbe,, If applkable) I | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | CFR 240.17a-S(e)(l)(ii), 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 | | | | | | **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.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Ben Zangara | swear (or affirm) that, to the best of my knowledge and belief, the | |-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of The Winning Edge Financial Group, Inc. | as of | | 12/31 | 2~
is true and correct. I further swear (or affirm) that neither the company nor any | | as that of a customer. | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | Signature:
ALEXIS K NAVARRO
Title:
Notary Public • State of New Jersey
My Commission Expires Nov 16, 2025
President | #### **This filing\*\* contains {check all applicable boxes):** - **ii** (a) Statement offinancial condition. - D (b) Notes to consolidated statement of financial condition. - **ii** (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). - **ii** (d) Statement of cash flows. - **ii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - **ii** (g) Notes to consolidated financial statements. - **ii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D U) 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 to 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. - **ii** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (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. - **ii** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 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. - **ii** (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. - **ii** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (t) Independent public accountant's report based on an examination of the statement offinancial condition. - **ii** (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. - □ (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. - **ii** (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. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e 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. {2}------------------------------------------------ ## **The Winning Edge Financial Group, Inc. (SEC I.D. No. 8-46743)** *Financial Statements and Supplemental Schedules* **As of and for the Year Ended December 31, 2023** **and** **Report of Independent Registered Public Accounting Firm** {3}------------------------------------------------ # **MICHAEL T. REMUS** *Certified Public Accountant* P.O. Box 2555 Hamilton Square, NJ 08690 > **Tel:** 609-540-1751 **Fax:** 609-570-5526 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To: The Stockholder **The Winning Edge Financial Group, Inc.** #### **Opinion on the Financial Statements** I have audited the accompanying statement of financial condition of The Winning Edge Financial Group, Inc. as of December 31, 2023, and the related statements of income, changes in stockholder equity and cash flows for the year then ended, that are filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 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 The Winning Edge Financial Group, Inc. as of December 31, 2023 and its results of 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 Winning Edge Financial Group, Inc.s management. My responsibility is to express an opinion on The Winning Edge Financial Group, 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 I am required to be independent with respect to The Winning Edge Financial Group, 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 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. My 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. I believe that my audit provides a reasonable basis for my opinion. {4}------------------------------------------------ #### **Supplemental Information** The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Identification of Reserve Requirements and Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption)* has been subjected to audit procedures performed in conjunction with the audit of The Winning Edge Financial Group, Inc.'s financial statements. The supplemental information is the responsibility of The Winning Edge Financial Group, 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 information. In forming my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Identification of Reserve Requirements and Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption)* is fairly stated, in all material respects, in relation to the financial statements as a whole. *Michael T. Remus* I have served as The Winning Edge Financial Group, Inc. auditor since 2010. Michael T. Remus, CPA Hamilton Square, New Jersey March 7, 2024 {5}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION December 31, 2023 #### **ASSETS** | Current Assets | | |--------------------------------|---------------| | Cash and cash equivalents | \$
248,262 | | Commissions receivable | 17,715 | | Miscellaneous receivables | 5,295 | | Prepaid expenses | 1,055 | | Total Current Assets | 272,327 | | Property and Equipment | | | Computer equipment | 29,915 | | Automobile | 33,329 | | Other | 6,339 | | Less: Accumulated depreciation | (25,823) | | | 43,760 | | Other Assets | | | Investments, at fair value | 261,720 | | Total Assets | \$
577,807 | #### **LIABILITIES AND STOCKHOLDER EQUITY** | Current Liabilities | | |---------------------------------------------------------------------------------|---------------| | Accrued expenses | \$
2,714 | | Payroll taxes payable | 12,911 | | Income taxes payable - current | 9,205 | | Total Current Liabilities | 24,830 | | Income taxes payable - deferred | 74,655 | | Note payable | 24,406 | | Total Liabilities | 123,891 | | Commitments and Contingencies (Note 7) | | | Stockholder Equity | | | Common stock, \$1 par value, 1,000 shares
authorized, issued and outstanding | 1,000 | | Paid-in Capital | 22,500 | | Retained earnings | 430,416 | | Total Stockholder Equity | 453,916 | | Total Liabilities and Stockholder Equity | \$
577,807 | {6}------------------------------------------------ STATEMENT OF INCOME Year Ended December 31, 2023 #### **Revenues** | Commissions | \$
128,686 | |--------------------------------------------|---------------| | Tax Preparation fees | 46,855 | | Unrealized loss | (14,355) | | Dividend & interest income | 4,146 | | Total revenues | 165,332 | | Expenses | | | Employee Compensation & benefits | 84,378 | | Professional fees | 11,920 | | Regulatory fees | 2,722 | | General & administrative | 6,166 | | Advertising | 493 | | Insurance | 4,276 | | Auto expense | 5,455 | | Travel & entertainment | 10,783 | | Payroll tax | 4,496 | | Technology & communication expense | 7,561 | | Interest expense | 808 | | Depreciation | 10,058 | | Total expenses | 149,116 | | Income From Operations & Before Income Tax | 16,216 | | Income tax expense - current | 9,205 | | Income tax (benefit) - deferred | 1,264 | | Net Income | \$
5,747 | {7}------------------------------------------------ #### **THE WINNING EDGE FINANCIAL GROUP, INC.** STATEMENT OF CHANGES IN STOCKHOLDER EQUITY Year Ended December 31, 2023 | | Common Stock | | Additional | | | | | Total | | | |--------------------------------------------|--------------|--------|------------|---------|-------------|----|------------------|-------|------------------|--| | | Number of | | | | Paid-In | | Retained | | Stockholder | | | | Shares | Amount | | Capital | | | Earnings | | Equity | | | Balance at December 31, 2022
Net Income | 1,000
- | \$ | 1,000
- | \$ | 22,500
- | \$ | 424,669
5,747 | \$ | 448,169
5,747 | | | Balance at December 31, 2023 | 1,000 | \$ | 1,000 | \$ | 22,500 | \$ | 430,416 | \$ | 453,916 | | {8}------------------------------------------------ STATEMENT OF CASH FLOWS Year Ended December 31, 2023 #### **CASH FLOWS FROM OPERATING ACTIVITIES** | Net Income | \$
5,747 | |------------------------------------------------|---------------| | Adjustments to Reconcile Net Income to Net | | | Cash Provided By Operating Activities: | | | | | | Depreciation | 10,058 | | Unrealized Loss on investment | 14,355 | | (Increase) Decrease in Operating Assets: | | | Commissions Receivable | (759) | | Miscelleneous Receivable | (90) | | Prepaid expenses | 1,000 | | | | | Increase (Decrease) in Operating Liabilities: | | | Accrued expenses | (1,531) | | Payroll tax payable | (1,880) | | Taxes payable - current | (69) | | Taxes payable - deferred | (450) | | | | | Net cash Provided by operating activities | 26,381 | | Cash Flows From Financing Activities | | | Loan principle payments | (6,369) | | | | | Net increase in cash | 20,012 | | Cash and cash equivalents at Beginning of Year | 228,250 | | Cash and cash equivalents at End of Year | \$
248,262 | | | | | Supplemental Disclosures | | | Cash paid for income taxes | \$
10,918 | | Cash paid for interest | \$
808 | | | | {9}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2023 #### 1 **Organization and Nature of Business** The Winning Edge Financial Group, Inc. (The Company) is a New Jersey corporation conducting business as securities broker dealer. The Company holds no customer funds or securities and does not participate in the underwriting of securities. The Company is registered with the SEC and is a member of the Financial Industry Regulatory Authority - ("FINRA") . ### **2 Significant Accounting Policies** #### *(a) Basis of Presentation* The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed. #### *(b) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. ## *( c) Statement of Cash Flows* For purposes of the statement of cash flows the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, that are not held for sale in the ordinary course of business. The company has adopted the indirect method of presenting the statement of cash flows in accordance with current authoritative pronouncements. ### *(d) Accounts Receivable* The Company establishes an allowance for uncollectible trade accounts receivable based on managements evaluation of the collectibility of outstanding accounts receivable. Management has evaluated accounts receivable at December 31, 2023 and believes they are all collectible. Accounts receivable are not collateralized. #### *(e) Depreciation* Depreciation is provided on a straight-line basis using estimated useful lives of five years. Property and equipment are recorded at cost. Maintenance, repairs and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of property and equipment are included in income. {10}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2023 #### (f*) Revenue Recognition* The Company earns commissions from executing customer transactions in mutual fund securities and variable annuities. The Company recognizes revenue from commissions and fees in accordance with ASC Topic 606 as services are rendered and the contracts identified performance obligations have been satisfied. There were no unsatisfied performance obligations at December 31, 2023. #### *(g) Income Taxes* Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to unrealized gain on investments. The deferred tax liability represents the future tax return consequences that will be realized when the asset is settled. No recognition for uncertain tax provisions have been included because the Company believes there are none. Certain transactions of the Company may be subject to accounting methods for federal and state income tax purposes which differ significantly from the accounting methods used in preparing the financial statements. Accordingly, the net income or loss of the Company and the resulting balances in the shareholder's capital account reported for federal and state income tax purposes may differ from the balances reported for those same items in these financial statements. The Company recognizes and measures its unrecognized tax benefits in accordance with ASC Topic 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of the financial reporting period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. Management has determined that there are no uncertain tax positions which require adjustment or disclosure on the financial statements at December 31, 2023 and there are no open tax years prior to 2019. In addition, no income related penalties have been recorded for the year ended December 31, 2023. ### *(h) Advertising and Marketing* Advertising and marketing costs are expensed as incurred. #### *(i) General and Administrative Expenses* General and administrative costs are expensed as incurred. {11}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2023 #### *(j) Subsequent Events* The Company has evaluated subsequent events occurring after the statement of financial condition date through the date of March 7, 2024 which is the date the financial statements were available to be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements. ### (k*) Fair Value Hierarchy* FASB 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 FASB 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.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. - *Level 2.* Inputs other than quoted prices included in level 1 that are observable for the assets or liability either directly or indirectly. - *Level 3.* Inputs are unobservable for the assets or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining the fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. For further discussion of fair value, see "Note 8 Fair Value" {12}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2023 ### **3 Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform New Capital Rule (SEC rule 15c3-1), 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 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 31, 2023, the Company had net capital of \$314,602, which was \$306,343 in excess of its required minimum net capital of \$8,259. The Company's net capital ratio was .3938 to 1. ### **4 Financial Instruments** Investments are presented in the financial statements at market value and is considered a level one input due to the fact that there are quoted prices for identical items in an active, visible and liquid market. The Company uses actual cost paid to determine the cost basis of shares of common stock held. The following is a summary of investments at December 31, 2023: | Common Stock - Level 1 Input | Fair Value | |------------------------------------------|------------| | 4,500 shares NASDAQ Stock, cost \$18,907 | \$261,720 | ## **5 Concentrations** The Company maintains its operating cash in a bank deposit account with one major financial institution in amounts which, at times, may exceed federally insured limits. The Federal Deposit insurance Corporation insures the Company's bank account up to \$250,000. The Company has not experienced any losses on these accounts and believes it is not subject to any significant credit risk. The Company's uninsured cash balance was \$33,150 at December 31, 2023. A significant amount of the Company's revenues are derived from the sale of open-end mutual funds and variable annuities. ## **6 Related Party Transactions** The Company paid a salary to its principal shareholder of \$55,000, made matching contributions of \$11,000 to the 401K plan and paid \$45,156 for various travel & overhead expenses. At December 31, 2023 there was a balance due from the principal shareholder of \$4,305. ## **7 Pension Plan** The Company has a 401 Uni(k) Plan which covers the Company's only employee and sole shareholder. Contributions to the plan included the statement of income for the year ended December 31, 2023 totaled \$11,000. {13}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2023 #### **8 Fair Value** Cash and cash equivalents, receivables, accounts payable and other current liabilities are reflected in the financial statements at carrying value which approximates fair value because of the short-term maturity of these instruments. #### **9 Commitments and Contingencies** Pursuant to Securities and Exchange Commission Rule 15c3-1(e)(2) the Company may not authorize distributions to its shareholders if such distributions cause the Company's net capital to fall below 120% of the Company's minimum net capital requirement. As of December 31, 2023 the Company was not in violation of this requirement. The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities, and had not been named as a defendant in any lawsuit at December 31, 2023 or during the year then ended. #### **10 Income Tax Expense** The components of income tax expense at December 31, 2023 are as follows: | Current | | |--------------------------|--------------| | Federal | \$
7,045 | | State | 2,160 | | Total | 9,774 | | Deferred | | | Federal | 1,264 | | State | 0 | | Total | 1,264 | | Total income tax expense | \$
10,469 | Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The Company's deferred tax asset relates primarily to unrealized gain on investment of \$238,013 at December 31, 2023. #### **11 Anti-Money Laundering Policies and Procedures** The Company is required to implement policies and procedures relating to anti-money laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on customers who open accounts with the Company. At December 31, 2023 the Company had implemented such policies and procedures. ### **12 Exemption from Rule 15c3-3** The Company is exempt from the Securities and Exchange Commission Rule 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers". {14}------------------------------------------------ **Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934** **As of December 31, 2023** {15}------------------------------------------------ #### COMPUTATION OF NET CAPITAL IN ACCORDANCE WITH RULE 15c 3-1 #### Year Ended December 31, 2023 #### Schedule I #### NET CAPITAL | | Common stock | \$ | 1,000 | |------------|------------------------------------------------------------------------------------------------------------|------------|---------| | | Paid-in capital | | 22,500 | | | Retained earnings | | 430,416 | | | Total Credits | | 453,916 | | Debits | | | | | | Accounts receivable | | 16,498 | | | Haircuts - stocks | | 39,258 | | | Undue concentration | | 33,448 | | | Equipment less accumulated | | | | | depreciation | | 43,760 | | | Other receivable | | 5,295 | | | Prepaid expense | | 1,055 | | | | | | | | Total Debits | | 139,314 | | | NET CAPITAL | \$ | 314,602 | | | CAPITAL REQUIREMENTS | | | | | 6 2/3 % of aggregate indebtedness | \$ | 8,259 | | | Minimum net capital requirement | | 5,000 | | | Net capital in excess of requirements | \$ | 306,343 | | | Ratio of Aggregate Indebtedness to | | | | | Net Capital | .3938 to 1 | | | | Reconciliation with Company's Computation (included in
Part II of Form X-17A-5 as of December 31, 2023) | | | | As Amended | | | | | | Reconciliation pursuant to Rule 17a-5(d) (4) of the Audited Computations | | | | | of Net Capital pursuant to Rule 15c 3-1 | | | | | Net Capital, as reported in Company's Part II unaudited Focus Report | | | | | Net Capital, per above | \$ | 314,602 | | Difference | | | 314,602 | | | | \$ | - | There are no material differences between the net capital reflected in the above computation and the net capital reflected in the Company's amended FOCUS Report as of December 31, 2023. {16}------------------------------------------------ #### **The Winning Edge Financial Group, Inc.** ## COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION) and INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS (EXEMPTION) FOR CUSTOMERS UNDER RULE 15c3-3 #### Schedule II #### YEAR ENDED December 31, 2023 The Company is designated by its FINRA membership agreement to operate under the exemptive provisions of paragraph (k)(1) of SEC Rule 15c3-3. The Company is also exempt from the provisions of Rule 15c3-3 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) receiving transactionbased compensation for consulting and professional services for clients and commissions from the sale of insurance products; and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) does not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. {17}------------------------------------------------ ## **MICHAEL T. REMUS** # *Certified Public Accountant* P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526 ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ## To: The Stockholder **The Winning Edge Financial Group, Inc.** I have reviewed management's statements included in the accompanying Exemption Statement, in which (1) The Winning Edge Financial Group, Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which The Winning Edge Financial Group, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: under—(k)(1) and Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, (the "exemption provisions") and (2) The Winning Edge Financial Group, Inc. stated that The Winning Edge Financial Group, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. The Winning Edge Financial Group, 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 The Winning Edge Financial Group, 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 opinion. Based on my review, I am 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)(1) and Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 of Rule 15c3-3 under the Securities Exchange Act of 1934. *Michael T. Remus* Michael T. Remus, CPA Hamilton Square, New Jersey March 7, 2024 {18}------------------------------------------------ #### **The Winning Edge Financial Group, Inc. Exemption Statement pursuant to SEC Rule 17a-5 For the Year Ended December 31, 2023** #### STATEMENT OF EXEMPTION FROM SEC RULE 15c3-3 The Winning Edge Financial Group, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.P.R. 5240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.P.R. 5240.l 7a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 C.P.R. 5240.15c3-3 under the following provisions ofl 7 C.P.R. 5240.15c3-3(k)(l) and Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. § 240.l 7a-5. - (2) The Company met the identified exemption provisions in 17 C.P.R. §240.15c3-3(k)(l) and Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.l 7a-5throughout the most recent fiscal year without exception. The Winning Edge Financial Group, Inc. I, Ben Zangara, swear ( or affirm) that, to my best knowledge and belief, this Exemption Statement is true and correct. By: Ben Zangara, P, Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.