# U.S. STERLING SECURITIES, INC. X-17A-5/A (2025-02-26) — Broker-dealer annual report - Company: U.S. STERLING SECURITIES, INC. - Form: X-17A-5/A - Filed: 2025-02-26 - Period: 2024-12-31 - Accession: 0000920807-25-000002 - CIK: 920807 - File #: 8-47052 - Type: Broker-dealer - Material weakness: No - Auditor: DePietto CPA PC - Auditor location: Lake Success, NY - Contact: George Goldman - Phone: 631-360-2829 - Email: administration@ussterlingsec.com - Website: ussterlingsec.com - Signed by: HERBERT A.ORR (President/CEO) Original filing: https://www.sec.gov/Archives/edgar/data/920807/000092080725000002/ussiannauauditc2024.pdf --- {0}------------------------------------------------ ## **UNITEDSTATES SECURmES 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 burd~n | | | | | | | hours per response: 12 | | | | | | SEC FILE NUMBER 8-47052 **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 1/01/2024 MM/DD/VY AND ENDING **12/31/2024** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: us STERLING SECURITIES INC.' TYPE OF REGISTRANT (check all applicable boxes): l:!l Broker-dealer □ Security-based swap dealer D Check here if respondent Is also an OTC derivatives dealer □ Major securi~-based·swap participant • ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1393 VETERANS MEMORIAL HIGHWAY Suite 412N (No. and Street) HAUPPAUGE NY 1'1788 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING George Goldman . 631-360-2829 administration@ussterlingsec.com ·, (Name) (Area Code - Telephone Number) ., (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Depietto CPAs PC ''- (Name - if individual, state last, first, and middle name) )•1981 Marcus Avenue C100 Lake Success NY • 11042 (Address) (City) ' (State) (Zip Code) M~rch 10,.~010 4027 (Date of Registration with PCAOB)(if aoolicable) (PCAOB Registration Number, if aopllcable) **FOR OFFICIAL USE ONLY** • 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. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | | swear (or affirm) that, to the best of my knowledge and belief, the
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This fllln,.• contains (check all appllcable boxes): | | | | | | | | | | | | | | !!I (a) Statement of financial condition. | | | | | | | □ (b) Notes to consolidated statement of financial condition. | | | | | | | iii (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). | | | | | | | iiil (d) Statement of cash flows. | | | | | | | !!I (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | | | | | □ (f) Statement of changes in liabilities subordinated to claims of creditors. | | | | | | | I!! (g) Notes to consolidated financial statements. | | | | | | | I!! {h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-1, as applicable. | | | | | | | □ (I) Computation of tangible net worth under 17'CFR 240.lSa-2. | | | | | | | □ U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | | | | | □ (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.lSa-4, as applicable. | | | | | | | □ {I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | | | | | □ (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. | | | | | | | !!I (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. | | | | | | | □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | | | | | | | !!I (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. | | | | | | | | | | | | | | □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. | | | | | | | I!! (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. | | | | | | | I!! (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 240.17a-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. | | | | | | | !!I {w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | | | | | CFR 240.lSa-7, as applicable. | | | | | | | iiil (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-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 240.17a-12(k).
___________________________________ | | | | | | | □ (z) Other:
_ | | | | | 0 To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e)(3) or 17 CFR 240.1Ba-7(d)(2), as applicable. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Shareholders of U.S. Sterling Securities Inc. ## **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of U.S. Sterling Securities Inc. as of December 31, 2024, the related statements of operations, changes in stockholders' 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 U.S. Sterling Securities Inc. as of December 31, 2024, 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 U.S. Sterling Securities lnc.'s management. Our responsibility is to express an opinion on U.S. Sterling Securities lnc.'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 U.S. Sterling 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. ## **Auditor's Report on Supplemental Information** The Schedule I, Computation of Net Capital Under SEA Rule 15c3-1 and Schedule II, Reconciliation of Computation of Net Capital Pursuant to SEA Rule 17a-5(d)(2)(iii) have been subjected to audit procedures performed in conjunction with the audit of U.S. Sterling Securities lnc.'s financial statements. The supplemental information is the responsibility of U.S. Sterling Securities Inc. 's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I, Computation of Net Capital Under SEA Rule 15c3- 1 and Schedule 11, Reconciliation of Computation of Net Capital Pursuant to SEA Rule 17a-5(d)(2)(iii) is fairly stated, in all material respects, in relation to the financial statements as a whole. DePietto CPA PC Lake Success, **New** York February 25, 2025 We have served as U.S. Sterling Securities lnc.'s auditor since 2004. A Professional Corporation www.depiettocpas.com {3}------------------------------------------------ FINANCIAL STATEMENTS AND REPORT OF REGISTEREDPUBLIC ACCOUNTING **FIRM** YEAR ENDED DECEMBER 31. 2024 {4}------------------------------------------------ #### U.S. STERLING SECURITIES INC. FINANCIAL STATEMENTS ## **DECEMBER** 31, 2024 ## **TABLE** OF CONTENTS | | Page | | | |-----------------------------------------------------------------------------------------|-------|--|--| | Facing page and Oath/Afflnnatlon | | | | | Report of Independent Registered Pub0c Accounting Finn | | | | | Financial Statements: | | | | | Statement of Financial Condition | 6 | | | | Statements of Operations | 7 | | | | Statements of Changes in Stockholders' Equity | 8 | | | | Statements of Cash Flows | 9 | | | | Notes to Financial Statements | 10-15 | | | | Supplementary lnfonnation: | 16 | | | | Computation of Net Capital Pursuant to 15c3-1 | 17 | | | | Reconclllatlon of Computation of Net Capital | 18 | | | | Report of the Independent Registered Public Accounting Finn
For the Exemption Report | 19 | | | | Finn Exemption Report | 20 | | | | Independent Accountant's Agreed-Upon Procedures Report | 21 | | | {5}------------------------------------------------ ## **STATEMENT** OF **FINANCIAL** CONDmON # **YEAR ENDED DECEMBER** 31, 2024 ## ASSETS ## Current Assets: | Cash | \$ 125,888 | |---------------------------------------|------------| | Receivable from clearing organization | 8,362 | | Deposits with clearing organization | 52,556 | | Security Deposits | 18,355 | | | \$ 205161 | # **LIABILITIES and** STOCKHOLDERS' EQUITY | Current Liabilities: | | |-----------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------| | Accounts Payable and Accrued Expenses | \$
73,925 | | Total Liabilities | 73,925 | | Stockholders' Equity: | | | Common Stock, \$1.00 par value, 100 shares authorized
1 O shares issued and outstanding
Additional paid In capital
Retained Earnings | 10
1,039,635
( 908,409) | | Total Stockholders' Equity | 131.236 | | | \$ 205.161 | "See Accompanying Notes and Independent Auditor's Report" ### Page& {6}------------------------------------------------ ## STATEMENT OF OPERATIONS # YEAR ENDED DECEMBER 31, 2024 #### Revenue: | Trading Income
Interest Income
Other Income
Total Revenue | \$ 161,131
1,500
599
163,230 | |-------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------| | Expenses | | | Professional Fees
Commissions Paid
Administrative Fees
Clearing Charges
Occupancy
Regulatory Fees
Insurance
Other Expenses | \$ 25,000
57,222
92,508
37,192
22,110
22,410
7,889
75,930 | | Total expenses | 340.261 | | Net Income (Loss) from operations | \$(177.031) | "See Accompanying Notes and Independent Auditor's Report'' Page7 {7}------------------------------------------------ #### STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY #### YEAR ENDED DECEMBER 31, 2024 | | Common
Stock | Additional
Paid in Cagltal | Retained
Earning§ | Equity | |-----------------------------|-----------------|-------------------------------|--------------------------|-----------------------| | Balance - January 1, 2024 | \$ | 10
\$ 866,074 | \$ (731,378) | \$134,706 | | Additional Paid in Capital | | 173,561 | | 173,561 | | Net Income (Losa) | | | | (177,031) \$(177.031) | | Balance - December 31, 2024 | \$ | 10
\$ 1,019,635 | \$ ( 908.409 ) \$131.236 | | "See Accompanying Notes and Independent Auditor's Report'' {8}------------------------------------------------ ## STATEMENT OF CASH FLOWS # YEAR ENDED DECEMBER 31, 2024 | Cash Flows from Operating Activities: | | |-----------------------------------------------------------------------------------------------------------------------|---------------------------| | Net Income (Loss)
Adjustments to reconcile net income to
net cash flows provided by operating activities: | \$(177,031) | | Receivable from clearing organization
Deposits with clearing organization
Accounts payable and accrued expenses | (8,306)
(898)
9.378 | | Net change in operating activities | \$(176,857) | | Cash from Investing Activities | 0.00 | | Cash from Financing activities:
Capital Contribution | \$173.561 | | Net cash provided by financing activities: | \$173,561 | | Net increase(decrease) In cash
Rounding | (3,296)
1 | | Cash at beginning of year | 129,183 | | Cash at end of year | \$125,888 | | | | Supplemental disclosure of cash flow information | Cash paid for: | | |----------------|---| | Interest | 0 | | Taxes | 0 | {9}------------------------------------------------ ## "See Accompanying Notes and Independent Auditor's Report Page 10 ## U.S. STERLING SECURITIES, INC. Notes to Financial Statements December 31, 2024 ## NOTE 1: Nature of Business Organization U.S. Sterling Securities Inc., (The Company) a wholly owned subsidiary of US Sterling Capital Corp. (The Parent) was incorporated In the State of New York on March 10, 1992 when It commenced domestic USA market operations. The company la a registered broker-dealer with current membership in the Financial Industry Regulatory Authority (FINRA) and is duly registered as a brokerdealer with participating NASAA State administrators in 43 States. The company is designated a registered Munlclpal Broker by the Municipal Securities Rulemaklng Board **(MSRB)** and Is a current member of the (Securities Investor Protection Corporation (SIPC). All the Company's executable trades are cleared through its clearing broker. The company has pennitted authority to conduct lnveabnent Banking Services. The company may conduct Institutional placements, corporate consulting, mergers and acquisition activities. The company has from time to time entered or maintained, selling agreements for non-executing securities transaction with federal or state registered or licensed Institutions, or other pennltted entities. The company Is classified by its Designated Regulatory Authority **(ORA)** FINRA, as an Institutional nonclearing introducing broker-dealer. NOTE 2: Summary of Significant Accounting Policies Basis of Presentation The financial statements have been **prepared** in confonnlty with accounting principles generally accepted In the United States. Use of Estimates The preparation of financial statements in confonnity with accounting principles generally accepted In the United States requires management of the Company to make estimate and assumptions that affect the reported amounts of aaaets and lablllties 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. Cash and Cash Equivalents All unrestricted highly liquid invesbnents with initial or remaining maturities of less than 90 days at the time of purchase are considered cash and cash equivalents. The Company's cash Is held by major financial Institutions. At times, such amount may exceed the Federal **Deposit** Insurance Corporation ( 11FDIC") limit On December 31, 2024, the Company's cash did not exceed the limit. On December 31, 2024, the Company did not have any cash equivalents. Receivables from Clearing Broker Receivables from the company's clearing broker on the statement of financial condition consist of commissions earned by the Company that are held with the clearing broker as follows: Starting Balance as/of 1.1,2024 Receivable from clearing broker 12.31.24 \$ 56 \$8,362 {10}------------------------------------------------ #### U.S. STERLING SECURITIES, **INC.** Notes to Financial Statements **December** 31, 2024 ## NOTE 2: Summary of Significant Accounting Policies (cont) Receivables from brokers, dealers and clearing organizations primarily consist of cash **deposits** placed with clearing organizations, which includes cash deposited as initial margin, as well as receivables related to sales of securities which have traded but not yet settled including amounts receivable for securities failed to deliver. We evaluate "receivables from brokers, dealers and clearing organizations" to estimate an allowance for credit losses. However, these receivables generally have minimal credit risk due to the low probability of clearing organization default and the short-tenn nature of receivables related to securities settlements and therefore, the allowance for credit losses on such receivables is not significant Any allowance for credit losses for these receivables Is estimated using assumptions based on historical experience, current facts and other factors. We update these estimates through periodic evaluations against actual trends experienced. #### Revenue and Expense Recognition Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC 606" .) The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers In an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a flva.tep model to Identify the contract(&) with (a) customer, (b) identify the performance obligations in the contract, (c) detennine the transaction price, (d) allocate the transaction price to the performance obligations In the contract, (e) recognize revenue when (or as) the entity satisfies a performance obligation. Significant Judgements - The recognition and measurement of revenue **Is based** on the assessment of individual contract terms. Significant judgement is required to determine whether the performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple perfonnance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied to uncertain future events. The Company earns commission revenue from effecting trades in U.S. equity that are listed on an exchange, or debt securities as may be offered federal or state Institutions which are large qualified corporate issuers. Commissions and related clearing expenses are recorded on a settlement date basis. In addition, the company conducts limited Investment Banking **(18)** and earns placement and consulting fees in market operations to Institutions seeking corporate finance, business consulting services and mergers and acquisition services; revenue is recognized on these transactions upon funding. #### Income Taxes The company is included in the consolidate Income Tax return of i1s affiliated parent US Sterling Capital Corp in the US Federal Jurisdiction and various consolidated states. Income taxes are accounted for under Accounting Standards Codification ( 11ASC") 740, Income Taxes, ("ASC 740"). Deferred assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabllltles are measured using {11}------------------------------------------------ #### U.S. STERLING SECURITIES, INC. Notes to Financial Statements December 31, 2024 #### NOTE 2: Summary of Significant Accounting Policies (cont) enacted rates expected to apply to taxable income In the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and llabilitles of a change In tax rates Is recognized Income In the period that Includes the enactment date. To the extent that it is more likely than not that deferred tax assets will not be recognized; a valuation allowance would be established to offset their benefit In accordance with ASC 740, the Company is required to disclose unrecognized tax benefits resulting from uncertain tax positions. ASC 740 defines the threshold for recognizing the benefits of tax return positions in the financial statements as 11more-llkely-than-not11 to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that Is more than 50 percent likely to be realized. The Company was not required to recognize any amounts from uncertain tax positions. Generally, federal, state and local authorities may examine the Company's tax returns for three years from the date of filing; consequently, the years 2021 through 2024 are subject to examination by tax authorities. Fair Value of Financial Instruments The Company estimates that the fair value of financial Instruments recognized on the statement of financial condition approximates their canying value, as such financial instruments are short tenn in nature. Other assets and llablllties with short and lntennedlate-terrn maturities and defined settlement amounts, including receivables, payables, and accrued expenses are reported at their contractual amounts, which approximate fair value. #### Allowance for Credit Losses Effective January 1, 2023 the Company adopted ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326") impacts the impartment model for certain financial assets measured as amortized cost by requiring a current expected credit loss ("CECL ") methodology to estimate expected credit losses over the over the entire financial life of the financial asset, recorded at Inception or purchase. Under the accounting update, the Company has the ablllty to detennine there are no expected credit losses In certain circumstances. On January 1, 2023 the company adopted the ASU using the modified retrospective approach. There was no adjustment to retained earning or Net Capital upon adoption. The allowance for credit losses is based upon on the Company's expectation of financial instruments carried at amortized cost utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in detennining the allowances for credit losses. The Company's expectations are that the credit risk associated with receivables is not significant until they are 90 days past due on the contractual arrangement and expectation of collection In accordance with industry standards. Management does not believe that an allowance is required as of December 31, 2024. {12}------------------------------------------------ U.S. STERLING SECURITIES, INC. Notes to Financial Statements December31,2024 Page 13 ## NOTE 2: Summary of Significant Accounting Policies (cont.) The company's receivables from broker-dealers and clearing organization includes amounts from unsettled trades, as it applies to Institutional purchases and sales Inclusive of receivables for securities failed to deliver, accrued Interest receivables and cash deposits. The Company's trades and contracts are cleared through its clearing organization and settled dally. Commissions earned, are offset by nonrecurring and recurring expenses as due amounts, reconciled dally between the clearing organization and the Company. Because of dally settlement and settlement under unifonn practice, the amount of unsettled credit exposures Is lfmlted to the a mount owed the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. #### NOTE 3: Financial Instruments The Company's financial instruments are measured and reported on a fair value basis. The ASC defines fair value and establishes a framework for measuring fair value, as well as a fair value hierarchy based on inputs used to measure fair value. This hierarchy requires the Company to use observable market data when available, and to minimize the use of unobservable Inputs when detenninlng fair value. #### Fair Value Hierarchy Financial assets and liabilities are classified based on inputs used to establish fair value as follows: Level 1: Valuation inputs are unadjusted quoted market prices for Identical assets or liabilities in active markets; Level 2: Valuation Inputs are quoted prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities In active markets and other valuation techniques utilizing observable inputs directly or indirectly related to the asset or liability being measured. Level 3: Valuation techniques utilize Inputs that are unobservable and significant to the fair value measurement On December 31, 2024, the Company did not own any financial assets or liabilities other than cash and cash equivalents and other assets and liabilities with no inventory Issues of short and intermediate tenn maturities and/or defined settlement amounts in the normal course of trade. The carrying amounts of cash and other assets and llabllltles with stipulated eamed defined settlement amounts are reported at their contractual amounts, which approximates fair value acceptable as an industry standard. #### NOTE 4: Deposit with Clearing Firm The Company maintains cash deposited with its clearing broker pursuant to a fully disclosed clearing agreement ("Clearing Agreement'') entered into on December 10, 1998 with additional amendments added through August 28, 2007, which is meant to assure the Company's performance, Including but not limited to the indemnification obligations specified in the Clearing Agreement On December 31, 2024, the Company had \$52,556 **deposited** with Hilltop Securities. The **deposit does** not represent an ownership interest in Hilltop {13}------------------------------------------------ #### U.S. STERLING SECURITIES, INC. Notes to Financial Statements December 31, 2024 ## NOTE 5: Concentration of Risk The Company maintains Its cash with major financial institutions, which at times may exceed the FDIC limit The Company has not experienced any losses in such accounts. The Company is also exposed to credit risk as It relates to Its securities business. The responsibility for processing customer activity rests with its clearing broker. The Company's clearing agreement provides that credit losses relating to unsecured debits or unsecured short positions of the Company's customers are charged back to the Company. The clearing broker records customer transactions on a settlement date basis. The clearing broker is therefore exposed to the risk of loss on these transactions In the event of the customer's inability to meet the tenns of Its contracts, In which case It may have to purchase or sell the underlying financial instruments at prevailing market prices in order to satisfy Its customer-related obligations. Any loss incurred by the clearing broker Is charged back to the Company ## NOTE 6: Regulatory Requirements The Company Is subject to the Securities and Exchange Commission Unifonn Net Capital Rule (Rule 15c3-1) which requires broker dealers to maintain minimum net capital. The ratio of aggregate indebtedness to net capital shall not exceed 15 to 1 for ongoing concerns. The Rule requires that the Company maintain "net capital" equal to the greater of \$50,000 or 6 2/3% of "aggregate indebtedness11 , as those tenns are defined in the Rule. On December 31, 2024, the Company had a net capital of \$112,881 which was \$62,881 in excess of Its required net capital of \$50,000. The Company's net capital ratio was 65.49%. Advances to affiliates, dividend payments and other withdrawals are subject to certain notification and other requirements of Rule 15c3-1 and other regulatory bodies. The Company Is exempt from the provision of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to Paragraph (k)(2)(11). As an introducing broker, the Company clears customer transactions on a fully disclosed basis and promptly transmits all customer funds and securities to the clearing broker. The clearing broker carries all the accounts of such customers and maintains and preserves such **books and records.** #### NOTE 7: Related Party Transaction The Company maintains an expense sharing agreement with U.S. Sterling Capital Corp., a related party, which provides professional and administrative staff, facilities and services necessary or appropriate for the conduct of the Company's business operations. As of January 1, 2024 company has continuously applied ASC Section 470-50-40 Debt Modifications and Extingulshments, therein comports as an extinguishment transaction, between the related entity US Sterling Capital Corp. and the company as a capital transaction wherein debt forgiveness periodically is resolved as forgiven by related entity; applied periodically whenever daily Net Capital computation is materially reduced as a result of accrued expense sharing charges. As of January 1, 2024 the company has continuously applied ASC Section 505-10-25 Equity Adjusbnents as a credit, resulting from transactions in the entity's own capital stock; resolved as related party debt forgiveness, which Is accounted as capital contributions to the company in 2024 totaling \$173,561. {14}------------------------------------------------ #### U.S. STERLING SECURITIES, **INC.** Notes to Financial Statements December31,2024 #### NOTE 8: Leases On January 1, 2024, the Company adopted ASU 2016-02 "Leases" ("Topic 842"). Under Topic 842, leases are required to recognize a right of use asset and related liability on the balance sheet for rights and obligations arising from leases with durations greater than 12 months. Adoption of Topic 842 did not have any impact on the Company's financial statements as the company does not have any agreemen1s that meet the definition of a lease. #### NOTE 9: Commibnents, Contingencies and Guarantees The company is required by federal law to be a member of the Securities Investors Protection Corporation ("SIPC"). The SIPC fund provides protection up to \$500 thousand per client for securities and cash held in client accounts, including a limitation of \$250 thousand on claims for cash balances. Account protection applies when a SIPC member falls financially and Is unable to meet 11s obligations to clien1s. This coverage does not protect against market fluctuations. As of December 31, 2024, the Company had no commitments or contingencies that required disclosure. #### NOTE 10: Subsequent Events In preparing the accompanying financial statements, the Company has reviewed events that have occurred after December 31, 2024 through the date of these financial statements on February 25, 2024. During this period, the Company did not have any material subsequent events that are required to be disclosed in the financial statements. {15}------------------------------------------------ # **SUPPLEMENTARY INFORMATION** {16}------------------------------------------------ ## U.S. STERLING SECURITIES, INC. COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 15c3-1 December 31, 2024 ## Computation of Net Cspltal: | 1. | Total Ownership Equity | \$ 131,236 | |----------|-------------------------------------------------------------------|------------------| | 2. | Deductions and/or charges
Non-allowable assets: | | | | Security deposit
Total non-allowable assets | 18,355
18,355 | | 3.
4. | Tentative net capital
Less: Haircuts | 112,881
0 | | 5. | Net Capital | \$ 112,881 | | | Computation of Basic Net Capital Requirement | | | 1. | Minimum Net Capital Required -
(6 2/3% Aggregate Indebtedness) | 4,928 | | 2. | Minimum Dollar Net Capital | 50,000 | | 3. | Net Capital Requirement | 50,000 | | 4. | Net Capital | 112,881 | | 5. | Excess Net Capital | \$ 62881 | | 6. | Ratio: Aggregate indebtedness to net capital | ,6549to 1 | | | Computation of Aggregate Indebtedness | | | 7. | Total Liabilities | \$ 73,925 | | 8. | Non-Aggregate Indebtedness Liabilities | | | | | \$ 73925 | "See Accompanying Notes and Independent Auditor's Report" {17}------------------------------------------------ #### U.S. STERLING SECURITIES, INC. RECONCILIATION OF COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 17a-S(d)(3) For the Period Ended December 31, 2024 | | Orig. Filing
X-17A-5
uss1 flNQP | Per Cert.
Financial
Repgrt | Recon.
financ1a1 | in Filing vs. | |------------------------------------------------------------|---------------------------------------|----------------------------------|---------------------|---------------| | NET CAPITAL | | | | | | Equity | \$
131,236 | \$ 131,236 | \$ | 0 | | Deductions and /or charges | | | | | | Non-allowable assets: | | | | | | Other assets | 18.355 | 18.355 | s | 0 | | Total non-allowable assets | 18.355 | 18.355 | s | 0 | | Tentative Net Capital | 112,881 | 112,881 | | | | Haircuts | 0 | 0 | s | 0 | | Net Capital (15c3-1) | \$ 112.881 | \$ 112.881 | \$ | 0 | | AGGREGATE INDEBTEDNESS | | | | | | Items Included In statement of financial condition: | | | | | | Accounts payable | s 73.925 | s 73.925 | s | 0 | | Total Indebtedness | \$ 73.925 | \$ 73925 | \$ | 0 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | | | | Minimum net capital requirement or greater | \$ 5000D | \$ 50000 | s | 0 | | of 50,000 Minimum net capital 15c3-1 | | | | | | Excess net capital | s &2 881 | s 121881 | s | 0 | | Net capital less greater of 10% of minimum total | | | | | | Indebtedness or 120% of minimum net
capital requirement | | | s | | | | \$ 52881 | S 52,881 | | 0 | | Ratio: Aggregate indebtedness to net capital | 65,49% | 65.49% | \$ | 0 | | Non-material difference due to rounding | | | | | There are no material differences between the computation of Net Capital presented **above** and the computation of Net Capital In the company's unaudited for X17-a-5, Part IIA filing as of December 31,2024. "See Accompanying Notes and Independent Auditor's Report" {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Shareholders of U.S. Sterling Securities Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) U.S. Sterling Securities Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which U.S. Sterling Securities Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: (2) (ii) (exemption provision) and (2) U.S. Sterling Securities Inc. stated that U.S. Sterling Securities Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. U.S. Sterling Securities lnc.'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 U.S. Sterling Securities lnc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. DePietto CPA PC Lake Success, New York February 25, 2025 We have served as U.S. Sterling Securities lnc.'s auditor since 2004. {19}------------------------------------------------ #### U.S. Sterling Securities, Inc. 2024 Exemption Report Notice Pursuant to 15c3-3 Mr. Herbert Orr, CEO U.S. Sterling Securities, Inc. U.S. Sterling Securities, Inc., the finn, is a duly registered broker-dealer. To the best of its knowledge and belief, has as met, affinns and attests to the following infonnation, declaration and statements, pursuant to the annual report herein incorporated by reference, as true, accurate and factual, which is the status of the firm at all times during most recent fiscal year ending December 31, 2024: (1) that the finn maintained at all times the exemption provisions in paragraph k2(ii) Specifically the mechanism of the exemptive provision, the functional application of the regulation as applied in the this report to the operation of U.S. Sterling Securities is a non-carrying broker-dealer who is claiming an exemption from Rule 15c3-3 and therefore is required to file (i) an Exemption Report asserting that it is exempt from the provisions of Rule 15c3-3 because it meets one or more of the conditions with respect to its business activities under Rule 15c3-3(k) and (ii). Specifically, the finn has relied upon (the following is the flnns attesting statement that identifies the provisions in paragraph (k) of SEC Rule 15c3 --3, under which the report, finn relied): The finn is an introducing broker or dealer, clears all transactions with and for customers on a fully disclosed basis with its clearing broker and the firm promptly transmits all customer funds and securities to the clearing broker or dealer who carries all of the accounts of the finns customers and maintains and preserves such books and records pertaining thereto pursuant to the requirements of §§ 240.17a-3 and 240.17a-4 of applicable sections of 15c3, as are customarily made and kept by a clearing broker or dealer, of Rule 15c3-3 throughout the most recent fiscal year ending December 31, 2024 without any exception, actual or apparent; there are no exceptions noted for the finn for fiscal year December 31, 2024. The flnn further attests and represents in this exemption report it has met the identified exemption provisions throughout the most recent fiscal year ending December 31, 2024 without exception; therefore, to the best of its knowledge it has not identified any exception during the during frame of this report. Attested: U.S. Sterling Securities, Inc I Herbert A Orr, CCO confirm finn that, to my best knowledge and belief, this Compliance Report is true and correct. Chief Compliance Officer {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES** To the Board of Directors and Shareholders of U.S. Sterling Securities Inc. We have performed the procedures included in Rule 17a-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 , 2024. Management of U.S. Sterling 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, 2024. 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 performed 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 performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we 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 we performed and our associated findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no material differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part Ill for the year ended December 31, 2024 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2024, noting no material differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no material differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no material differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no material differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our 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). We were 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 Form SIPC-7 for the year ended December 31, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. {21}------------------------------------------------ We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. DePietto CPA PC Lake Success, New York February 25, 2025 We have served as U.S. Sterling Securities lnc.'s auditor since 2004 . ![](_page_21_Picture_5.jpeg) {22}------------------------------------------------ # **GENERALA88E88MENT FORM** For the flscal year ended 12/31/2024 | | Oeb»:,nbatb, of "SIPC NET Opaatfllg Revenues" and Genend MB Ba ament for.
MEMBER NAME
US STERLING SECURITIES INC
For lhe fiscal period begbudng
1/1/2024
and ending | SEC No.
8-47052
12/31/2024 | | |---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|---------------| | 1 | Total Revenue (FOCUS Report-Statement of Income (Loss)-Code 4030) | | \$183,229.00 | | 2 | | | | | | Addl1lans:
a Total ravanues 1rom the securities busfness of subsldlalies (except folelgn
subsidiaries) and pradecessms not lnduded abcw9. | | | | | b Net loss from prfncfpal tnulsactions In securillas In trading accounts. | | | | | c Net loss from principal transacllons In commodltles In trading accounts. | | | | | d lnterast and dividend expense deducted In detennlnng Item 1. | | | | | e Net loss flom management of or partldpation In the undelWrltillQ or
dlstribu1fon of sea.trfffes. | | | | | f Expenses other than advaftlslng, printing. reglsntion fees and legal fees
deducted fn detennlnfng net profit management of or partldpatlon fn
underwriting or distribution of securities. | | | | | g Net toss from securities In Investment accounts. | | | | | h Add lines 2a through 2g. This Is your total addlllo.,s. | | \$0.00 | | 3 | Add Ones 1 and 2h | | \$ 183,229.00 | | 4 | Deductions: | | | | | a Revenues flom the distribution of shares of a raglstefed open end Investment
company or unlt lnveslmant trust, fn>m the sale of vmtable BMUltles, from the
busfness of lnsurance. from fnveslntent advisory servicaS rendered to
raglatel8d Investment companies or Insurance company separate accounts
and from 1ran&actlons In security futures products. | | | | | b Revenues from commodity 1nmsactlons. | | | | | c Commissions. floor brokerage and clearance paid to other SIPC member&
in connection wl1h securit!es bansacllons. | \$37,192.00 | | | | d Relmbur8eman1s for pos1age fn rmnedlon with proxy softcftalfu,1S. | | | | | • Net gain from securftiea In bwestmantaccounts. | | | | | f 100% commlssfons and markups earned from bansaclfons In ~) certiflca1as
of deposit and (D) Treasury bUJs, bankers acceptances or commerdal paper
that matul8 nine months or less from Issuance data. | \$161,131.00 | | | | g Direct expenses of printing, advertising, and legal fees lnalrred In connection
with other revenue related to the secwttfes business (nwenue defined by
Section 18(9)(L) of the Ad). | | | | | h Other 18V8nU8 not ralated either dncUy or lndfl8Cfty to the securi11as business.
Deductions In 8R888 ol\$100,000 ,_,,,,,. documenlallon | | | | 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 fntarast eamed on custonNHS securftiea accounts
(40% of FOCUS Report-Statement of Income (Loss)
Code3980) | | | | | c En1Brthe gl98fer of lfne 5a or 5b | \$0.00 | | | 8 | Add l!nes 4a through 4h and 5c. This Is your total deductions. | | \$198,323.00 | {23}------------------------------------------------ | SECURITIES INVESTOR PROTECTION CORPORATION | | | |--------------------------------------------|--|--| |--------------------------------------------|--|--| SIPC-7 37REV0722 SIPC-7 37REV0722 # **GENERALA88E88MENT FORM** For the fiscal year ended 12/31/2024 | 7 | Subtrad llne 8 ft'orn Une 3. This Is your 81PC Nat Operating Revenues.
Muftlply Una 7 by .0015. This Is your General Asaesamenl | | | \$0.00
\$0.00
\$14.00 | |----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|-----------------------------|-----------------------------| | 8 | | | | | | 9
Current overpayment/credit balance, If any | | | | | | ~
Genefal asaaaan.entfn>m lastflled
10
SIPC-6 or8A | | \$0.00 | | | | 11 a Overpayment(&) applied on
b Any other overpayments applled
d Add Ones 11a through 11c | all~
SIPC-6 and 8A(a)
c AD payments applied for 2024 SIPC-8 and 6A(a) | \$0.00
\$0.00
\$0.00 | \$0.00 | | | LESSER oflfne 10 or 11cL
12 | | | | \$0.00 | | 13 a Amount from Una 8
b Amount from One 9
C Amount from One 12
tntentst (see fnstn.ldlona) for
14 | d Subtract llnes 13b and 13c from 13a. This Is your aN88ffl81d balance due.
days late at 20% per annum
O | | \$0.00
\$14.00
\$0.00 | (\$14.00)
\$0.00 | | 15 | IAmountrou owe SIPC.Add Ines 13d and 14. | | | so.ooJ | | 18 | Owtrpayment/credlt carried forward (If appllcable) | | | (\$14.00) | | SECNo.
8-47052
MEMBER NAME
AfAILING ADDRESS | Des/gnalBd &amlnlng Aulhodl.y
DEA:FINRA
US STERLING SECURITIES INC
1393 VETERANS MEMORIAL HWY
UNIT412N
HAUPPAUGE, NY 11788 | FYE
2024 | Monlh
Dec | | Subsidiaries (S) and predecesscn (P) induded In 1he fonn (give name and SEC number) fJI **By checking** this box. you certify that you have the authority of the SIPC member to sign 1hls ~ farm; that aD fnfonnatlon In this fonn Is true and complat&; and 1hat on behaf of the Sf PC **member, you are authorized, and** do hend>y eot18811t, to **the storage and handllng** by SIPC of the data ln acccrdance with SIPC's **Prtvacy Polley** | US STERLING SECURITIES INC | GEORGE GOLDMAN | |----------------------------|----------------------------| | (Name of SIPC Member) | (Aulhorlzed Sfgnatoly) | | 1/28/2026 | ggoldman@usster1ingsec.com | | (Date) | (e-mail address) | | | | Completion of the DAuthorlzed Signatory" line wll be deemed a signature. **1'hls fonn and the a1sa1SIIIMf payment 1118 due 80 days afl.wffle end of"'8 ffscal ,ear.** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.