# MEEDER DISTRIBUTION SERVICES, INC. X-17A-5 (2026-03-02) — Broker-dealer annual report
- Company: MEEDER DISTRIBUTION SERVICES, INC.
- Form: X-17A-5
- Filed: 2026-03-02
- Period: 2022-12-31
- Accession: 0000926174-26-000008
- CIK: 926174
- File #: 8-47374
- Type: Broker-dealer
- Material weakness: No
- Auditor: HHH CPA Group LLC
- Auditor location: Columbus, OH
- Contact: Douglas R Cooper
- Phone: 6147602104
- Signed by: Douglas R Cooper (President/Treasurer)
Original filing: https://www.sec.gov/Archives/edgar/data/926174/000092617426000008/2022.pdf
---
{0}------------------------------------------------
**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
8--47374
## **ANNUAL REPORTS FORM X-17A-5 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 PERtOp BEGINNING Q1/Q1 /2Q22
AND ENDING 12/31/2022 | | | | |
| | MM/DD/YY | | MM/DD/YY | |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAME oF FIRM: Meeder Distribution Services, Inc. | | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
[!] Broker-dealer
0 Check here if respondent i.; also an OTC derivatives dealer | □ Security-based swap dealer | D Major security-based swap participant | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| 6125 Memorial Drive | | | | |
| | (No. and Street) | | | |
| Dublin | Ohio | | 43017 | |
| (Oty) | (State) | | IZip Code! | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | |
| Douglas Cooper | 614-760-2104
(Area Code - Telephone Number) | (Emall Address) | dcooper@meed | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
HHH CPA Group, LLC. | | | | |
| | (Name-if individual. state last, first, and middle name) | | | |
| 1250 Old Henderson Re Columbus | | Ohio | 43220 | |
| (Address) | (City) | (State) | (Zip Code) | |
| 12/21/2010 | | 5344 | | |
| (Date of ReRlstratlon with PCAOB)(lf appltcable) | FOR OFFICIAL USE ONL V | (PCAOB Reeistratlon Number. If applicable) | | |
| | | | | |
| • Claims for e~emption from the requirement that the annual reports oo covered by the reports of an independent public | | | | |
accountant must be supported by a statement of fact, and circumstances rel led on as the basis of the exemption. \$ee 17 CFR 240.17a-S!e)(l)(ii), it applicable.
Penonswho are to respond to the collection of irrformatioo contained lnthlsform are not r@qulred to respond unlessthi,form dllplays a curr~11ttv valld 0MB control number.
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#### **OATH OR AFFIRMATION**
I, Douglas Cooper , swear /or affirm} that, to the best of my knowledge and belief, the flncincial report pertaining to the firm of Meeoer Dis1ribution S..Nices. Inc. as of
**2/24** 2~, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.
| Notary Pu bile | 0:,lil"lt:l t.Jic,~· PL.I~, n,j:, f'l(ll~/ii.lj ir, ln.~"(1(1 "11";11 UIJO | |
|----------------|----------------------------------------------------------------------------|--|
| Signature:
7~i ('"'Y"'} | Os.50 At,, EST | |
|----------------------------|----------------------------------|--|
| Title: | | |
| President!Treasurer | | |
| | | |
#### iOI ClfiU:fle 800iot\11Cleo O;:tl\ffllJl'l,~i,,,n ~fl~~~
#### **This fillng0 contains (check all applicable boxe5):**
- Ii!! (a) Statement of financial condition.
- Iii (b) Notes to consolidated statement of financial condition.
- **lii!iil'** {c) Statement of income (loss) or, if there Is other comprehensi11e income in the period(s) presented, a statement of comprehensive Income (as defined rn § 210.1-02 of Regulation S·X).
- I!!! jd) Statement of cash flows.
- I!! {el Statement of change5 in stockholders' or partners' or sole proprietor's equity.
- I!! (fl Statement **of** changes In liabilities subordinated to claims of creditors.
- Ii!! (g) Notes to consolidated financial statements.
- Iii (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.18a-1, as applicable.
- Ii!! ( i) Computation of tangible net worth under 17 CFR 240. lBa-2.
- **!ii** (j) Computation tor determination of customer re£erve requirements pursuant to E~hlbit **A** to 17 C:FR 240.1Sc3-3.
- 0 (k) Computation for determination of security-based swap reserve rei:iuirements pursuant to Exhibit 8 to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- D (I) Computation for Determination of PAB Requirements under Exhfblt A to§ 24-0.l5c3-3.
- □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3·3.
- 0 (n) Information relating to possession or control requirements for secutlty•based swap customers under 17 CFR 240.1Sc3·3(p)(2) or 17 CFR 240.18a-4, as applicable.
- iil (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.lSa-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 difference~ exist, or a statement that no mater/al differences e)(iSt.
- D (p) summarv of fi nantial data for subsidiaries not consolidated in the statement of financial condition.
- D (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a•12, or 17 CFR 240.18a·?, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240.17a•S or 17 CFR 240.18a-7, as appllcable,
- D (s) E12 -
3 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| INDEPENDENT AUDITORS' REPORT
4 -
5 |
| STATEMENTS OF FINANCIAL CONDITION
December 31, 2022 6 |
| STATEMENTS OF OPERATIONS
Years ended December 31, 2022 and 2021
7 |
| STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
Years ended December 31, 2022 and 2021
8 |
| STATEMENTS OF CASH FLOWS
Years ended December 31, 2022 and 2021
9 |
| 10-
NOTES TO FINANCIAL STATEMENTS
16 |
| 17 -
19
SUPPLEMENTARY INFORMATION |
| . 20
SEC RULE 15C3-3 EXEMPTION REPORT
|
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 21 |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON APPLYING AGREED-UPON PROCEDURES RELATED TO AN ENTITY'S
22 -
CLAIM FOR EXCLUSION FROM MEMBERSHIP IN SIPC
23 |
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,,·id: JliH.1r1olo111eo, Cl',\ Brian Sd1nl'ickr. CP,\
Janws 1'<.•lers, C'l'A
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of Meeder Distribution Services, Inc. Dublin, Ohio
#### **Opinion on the Financial Statements**
We have audited the accompanying statements of financial condition of Meeder Distribution Services, Inc. as of December 31, 2022 and 2021, and the related statements of operations, changes in stockholder's equity, and cash flows for the years then ended, and the related notes [and schedules] !collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of Meeder Distribution Services, Inc. as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years 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 Meeder Distribution Services, Inc. 's management. Our responsibility is to express an opinion on Meeder Distribution Services, 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 Meeder Distribution Services, 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.
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#### **Supplemental Information**
The schedule of Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission, Reconciliation with Company's Computation of Net Capital as Included in Part IIA of Form X-17A-5, and Computation of Reserve Requirement under Rule 15c3-l of the Securities and Exchange Commission has been subjected to audit procedures performed **in** conjunction with the audit of Meeder Distribution Services, Inc. 's financial statements. The supplemental information is the responsibility of Meeder Distribution Services, lnc.'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. l 7a-5. In our opinion, the Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission, Reconciliation with Company's Computation of Net Capital as Included in Part IIA of Form X-17 A-5, and Computation of Reserve Requirement under Rule 15c3-1 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole.
*!i1t11 c./;9 G,,.,.,~,* LL(....
HHH CPA Group, LLC
We have served as Meeder Distribution Services, Inc.'s auditor since 2012. Columbus, Ohio February 24, 2023
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#### **STATEMENTS OF FINANCIAL CONDITION**
#### **DECEMBER 31, 2022 AND 2021**
| ASSETS | 2022 | 2021 |
|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------|
| Cash
Accounts receivable
Accounts receivable -
related party
Prepaid expense | \$
808,279
265
20,100 | \$
701,285
292
45,000
19,933 |
| Total current assets | 828,644 | 766,510 |
| | \$
828,644 | \$
766,510 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | | |
| Accounts payable
Accounts payable -
related party
Commissions payable
Accrued liabilities | \$
115
511,563
142,910
12,000 | \$
138,464
320,384
128,287
11,000 |
| Total current liabilities | 666,588 | 598,135 |
| Long-term liabilities | | |
| Total liabilities | 666,588 | 598,135 |
| Stockholder's equity: | | |
| Common stock; no par value, 1,000 shares authorized,
issued and outstanding
Paid in capital
Retained earnings
Total stockholder's equity | 10,000
740,000
(587,944)
162,056 | 10,000
740,000
(581,625)
168,375 |
| | \$
828,644 | \$
766,510 |
| | | |
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#### **STATEMENTS OF OPERATIONS**
#### **FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021**
| | 2022 | 2021 |
|----------------------------------------|-----------------|-----------------|
| Revenues: | | |
| Affiliated entities fees | \$
3,705,313 | \$
4,968,358 |
| 12b-1 fees | 82,234 | 91,487 |
| Commissions | 6,111 | 6,462 |
| lnterest | 12,543 | 393 |
| Total revenues | 3,806,201 | 5,066,700 |
| Expenses: | | |
| Salaries | 2,494,065 | 2,907,604 |
| General, Administrative and Regulatory | 165,103 | 1,075,554 |
| Commissions | 949,313 | 783,887 |
| Registration fees | 32,199 | 38,713 |
| Professional fees | 12,000 | 11,100 |
| Marketing reimbursement | | |
| Interest | | |
| Other | 159,840 | 231,657 |
| Total expenses | 3,812,520 | 5,048,515 |
| Net income (loss) | \$
(6,319) | \$
18,185 |
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#### **STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY**
#### **FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021**
| | 2022 | 2021 |
|--------------------------------|---------------|---------------|
| Common Stock: | | |
| Balance at beginning of period | \$
10,000 | \$
10,000 |
| Issued (Repurchased) stock | | |
| Balance at end of period | 10,000 | 10,000 |
| Paid In Capital: | | |
| Balance at beginning of period | 740,000 | 740,000 |
| Contributed capital | | |
| Balance at end of period | 740,000 | 740,000 |
| Retained Earnings: | | |
| Balance at beginning of period | (581,625) | (599,810) |
| Net income (loss) | (6,319) | 18,185 |
| Distributions | | |
| Balance at end of period | (587,944) | (581,625) |
| Total stockholder's equity | \$
162,056 | \$
168,375 |
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#### **STATEMENTS OF CASH FLOWS**
#### **FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021**
| | 2022 | 2021 |
|--------------------------------------------------------|---------------|---------------|
| Cash flows from operating activities: | | |
| Net income (loss) | \$
(6,319) | \$
18,185 |
| Adjustments to reconcile net income (loss) to net cash | | |
| provided by operating activities: | | |
| (Increase) decrease in: | | |
| Accounts receivable | 27 | 1,292 |
| related party
Accounts receivable - | 24,900 | (24,000) |
| Prepaid expense | 19,933 | 97 |
| Increase (decrease) in: | | |
| Accounts payable | (138,349) | (104,036) |
| related party
Accounts payable - | 191,179 | 163,996 |
| Commissions payable | 14,623 | (305,351) |
| Accrued liabilities | 1,000 | 1,000 |
| Total adjustments | 113,313 | (267,002) |
| Net cash flows from operating activities | 106,994 | (248,817) |
| Cash flows from investing activities | | |
| Cash flows from financing activities: | | |
| Net increase (decrease) in cash | 106,994 | (248,817) |
| Cash at beginning of period | 701,285 | 950,102 |
| Cash at end of period | \$
808,279 | \$
701,285 |
| Supplemental disclosures: | | |
| Interest paid | \$ | \$ |
| Income taxes paid | \$ | \$ |
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## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
## Note 1 - Summary of Significant Accounting Policies
#### A. Organization
Meeder Distribution Services, Inc. (the Company) has been operating as a brokerdealer registered with the Securities and Exchange Commission (SEC) and the State of Ohio Securities Division; it is a member of the Financial Industry Regulatory Authority, Inc. (FINRA).
The Company operates pursuant to Exchange Act Rule 15c3-3(k)( 1). Customer accounts held directly at a product issuer for which the Company is listed as the broker-dealer of record. The Company does not hold customer funds or safeguard customer securities.
On April 29, 2020, the Company changed its name from Adviser Dealer Services, Inc. This was done to conform to SEC Regulation Best Interest, specifically the capacity disclosure requirement.
As of December 31, 2022, the Company is licensed in 47 states, excluding Florida, Maryland, and Texas.
#### **B.** Management's Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. Cash
The Company maintains cash balances at one bank and in several money market accounts. The cash balance in the bank was under the federally insured limit of \$250,000 as of December 31, 2022. For purposes of the statement of cash flows, the Company considers all cash in checking accounts and money market accounts to be cash equivalents.
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## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
## Note 1 - Summary of Significant Accounting Policies - Continued
#### D. Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and commissions receivable. The Company places its cash with high credit quality financial institutions, which at times may be in excess of FDIC insurance limits. The Company's receivables represent commissions from completed securities trades.
#### E. Fair Value Measurements
Financial Accounting Standards Board Statement No. 157, Fair Value Measurements (FASB Statement No. 157), establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).
The three levels of the fair value hierarchy under FASB Statement No. 157 are described below:
- Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.
- Level 2 Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
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## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
## Note 1 - Summary of Significant Accounting Policies - Continued
#### E. Fair Value Measurements (continued}
The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2022.
Money Market Funds: Valued at the net asset value ('NAV") of shares held by the Company at year end.
| Assets {2022) | Level 1 | Level 2 | Level 3 | Total |
|---------------|-----------|---------|---------|-----------|
| Money Market | \$795,019 | \$ | \$ | \$795,019 |
| | | | | |
| Total assets | \$795.019 | \$ | \$ | \$795,019 |
| | | | | |
| Assets {2021} | Level 1 | Level 2 | Level 3 | Total |
| Money Market | \$693,764 | \$ | \$ | \$693,764 |
| | | | | |
#### F. Securities Transactions and Revenue Recognition
Securities transactions, commissions and related expenses are reported on a trade date basis. The change in the resulting difference between cost and market is included in net trading profits in the statement of income. The Company's activities are transacted on either a cash or margin basis. Margin transactions are subject to various regulatory and internal margin requirements and are collateralized by cash and securities in the Company's accounts. Commission expense is also recorded on a trade-date basis as security transactions occur.
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#### **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
#### Note 1 - Summary of Significant Accounting Policies - Continued
#### G. Receivables
Accounts receivable are stated at the amount billed. Management individually reviews all receivable balances and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. In the opinion of management, all receivables are considered collectible and no allowance was necessary at December 31, 2021.
Accounts receivable - related party are stated at the amount billed. Registered representative affiliation fees, commission charge backs and other costs that are the responsibility of registered representatives or entities with common control are offset against amounts owed to these representatives or entities. If the balance of the debits owed to the Company exceeds the amount owed to the registered representatives or the entities, the net balance owed to the Company is recorded as a receivable.
#### H. Government and Other Regulations
The Company's business is subject to significant regulations by various governmental agencies and self-regulatory organizations. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the requirements of these organizations. As a registered broker-dealer, the Company is subject to the SEC's Net Capital Rule 15c3-l which requires that the Company maintains a minimum net capital, as defined [ see Note 3].
#### Note 2 - Reserve Requirements
The Company is not obligated to report under SEC Rule 15c3-3 since it does not maintain customer accounts or hold securities. Therefore, the Company does not have a reserve requirement nor does it have any information relating to the possession or control requirement under Rule 15c3-3.
## Note 3 - Net Capital Requirements {Schedules I and Ill
Under SEC Rule 15c3-l, the Company is required to maintain net capital of not less than the greater of 6.67% of total liabilities, exclusive of subordinated debt, for the year ended December 31, 2022, \$44,439 or \$5,000. At December 31, 2022 the Company's net capital as defined by SEC Rule 15c3-1 was \$101, 71 7 in excess of the minimum net capital required.
In addition to the minimum net capital provision, SEC Rule 15c3-l requires that the Company maintain a ratio of aggregate indebtness, as defined, to capital, of not more than 15 to 1. At December 31, 2022 the ratio was 4.5608 to 1.
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## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
#### Note 4 - Related Parties
The Company is the Distributor and principal agent for the sale and distribution of the Meeder Funds. Pursuant to this agreement, the Company is entitled to reimbursement under the Meeder Funds Shareholder Distribution Plan for costs actually incurred by the Company, which is included in the related party receivable in the accompanying balance sheet. These services accounted for \$82,234 in revenues during the year.
The Company is affiliated through common ownership with Meeder Asset Management, Inc. **(MAM),** which provides marketing services and other overhead costs. At December 31, 2022, the Company owed MAM \$511,563 for the above mentioned services, which is included in the related party payable in the accompanying balance sheet. The Company is also paid a fee by MAM for various administrative services relating to licensing of representatives. These services accounted for \$3,705,313 in revenues during the year.
The Company from time to time invests cash balances in the Meeder Funds Money Market Fund (the Fund). The Fund is managed by MAM, and certain officers of the Company, Meeder Investment Management, Inc., and **MAM** are also officers and/or trustees of the Fund. At December 31, 2022, cash and cash equivalents included \$795,019 invested in the Fund.
#### Note 5 - Income Taxes
Meeder Investment Management, Inc. files a consolidated income tax return which includes the Company and other related entities. Meeder Investment Management, Inc. has elected to be treated as an S corporation under the provision of Section 1362{a) of the internal Revenue Code (IRC), and the Company qualifies as a QSUB as defined by the IRC, which allows for the Company's income to be taxed directly to Meeder Investment Management, Inc. As a result, no provision for federal income taxes has been recognized.
The Company recognizes and discloses uncertain tax positions in accordance with accounting principles generally accepted in the United States of America (US GMP). As of and during the year ended December 31, 2022, the Company did not have a liability for unrecognized tax benefits. The Company is no longer subject to examination by federal and state taxing authorities prior to 201 7.
### Note 6 - Concentrations
The Company has revenue and receivables from various sources. During the year ended December 31, 2022, 2% and 99% of revenues and receivables, respectively, are attributable to Meeder Funds.
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## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
#### Note 7 - Subsequent Events
Management has reviewed all events subsequent to December 31, 2022, up to the date of audit report (February 23, 2023) and has not encountered any subsequent events that effect the current financial statements or that require additional disclosure.
#### Note 8 - Recent Accounting Pronouncement
The Company adopts all applicable, new accounting pronouncements as of the specified effective dates.
In February 2016, the Financial Accounting Standards Board ("FASB") issuedASU No. 2016-02, Leases, as a new Accounting Standards Codification Topic 842 ("ASC Topic 842"), which will supersede nearly all existing revenue recognition guidance under GAAP. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories:
- Financing leases, similar to capital leases, will require the recognition of an asset and liability, measured at the present value of the lease payments.
- o Interest on the liability will be recognized separately from amortization of the asset.
- o Principal repayments will be classified as financing outflows and payments of interest as operating outflows on the statement of cash flows.
{16}------------------------------------------------
## **NOTES TO FINANCIAL STATEMENTS**
## **DECEMBER 31, 2022 AND 2021**
#### Note 8 - Recent Accounting Pronouncement (continued)
- Operating leases will also require the recognition of an asset and liability measured at the present value of the lease payments.
- oA single lease cost, consisting of interest on the obligation and amortization of the asset, calculated such that the amortization of the asset will increase as the interest amount decreases resulting in a straight-line recognition of lease expense.
- o All cash outflows will be classified as operating on the statement of cash flows.
The standard is effective for us for annual periods beginning January 1, 2019. We adopted ASC Topic 842 as of January 1, 2019. An assessment to determine the impacts of the new accounting standard has been performed. Based on our assessment, the adoption of ASC Topic 842 did not have a material impact on our financial statements.
Other accounting standards that have been issued or proposed by the FASB or other standardssetting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption.
{17}------------------------------------------------
# **SUPPLEMENTARY INFORMATION**
{18}------------------------------------------------
#### **SUPPLEMENTARY SCHEDULES**
## **AS OF DECEMBER 31, 2022**
#### **Schedule I**
## **Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission**
| Total stockholder's equity | \$
162,056 |
|-------------------------------------------------------------------------------------------------------------|-----------------------|
| Non-allowable assets: Prepaid expenses | (-] |
| Net capital before haircuts on securities positions | 162,056 |
| Haircuts on security positions | 15,900 |
| Total net capital | \$
146.156 |
| Minimum net capital requirement -
greater of \$5,000 or
6 2/3% of aggregate indebtedness of \$666,588 | 44,439 |
| Excess net capital | \$
101.717 |
| Ratio of aggregate indebtedness to net capital | 4.5608 to 1 |
| Schedule of aggregate indebtedness
Accounts payable and accrued liabilities
Commissions payable | \$ 523,678
142.910 |
| Total aggregate indebtedness | \$ 666,588 |
{19}------------------------------------------------
#### **SUPPLEMENTARY SCHEDULES**
#### **AS OF DECEMBER 31, 2022**
## **Schedule II**
## **Reconciliation with Company's Computation of Net Capital as Included in Part IIA of Form X-17A-5**
| Net capital, as reported in Company's Part !IA (unaudited)
FOCUS report | \$ 146,156 |
|----------------------------------------------------------------------------|------------|
| Audit adjustments | (-) |
| Net capital per audited financial statements | \$ 146.156 |
**No** material differences were found during the audit that affected the net capital calculation.
## **Schedule** III
## **Computation of Reserve Requirement under Rule 15c3-l of the Securities and Exchange Commission**
In accordance with the exemptive provisions of SEC Rule 15c3-3, specifically exemption k(l), the Company is exempt from the computation of a reserve requirement and the information relating to the possession or control requirements.
{20}------------------------------------------------
## **SEC Rule 15c3-3 Exemption Report**
Board of Directors Meeder Distribution Services, Inc.
Meeder Distribution Services, Inc. (the Company) is a registered broker-dealer subject to Rule 1 7 a -5 promulgated by the Securities and Exchange Commission ( 1 7 CFR 2 40 .1 7 a-5 - "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 CFR 240.l 7a-5(d)(l) and (4). To the best of its knowledge the Company states the following:
The Company is exempt from Rule 17 CFR l 5c3-3 under provision (kl ( 1 J of Rule 15c3-3 of the Securities Exchange Act of 1934. The Company met the identified exemption provision identified above throughout the most recent fiscal year ended December 31, 2022, without exception.
Meeder Distribution Services, Inc.
I, ~~ swear {or affirm) that, to my best knowledge and
belief, this Exemption Report is true and correct.
Douglas R. Cooper President & Treasurer
February 23, 2023
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Nick llillarlolonwo, Cl';\ Brian Schneider, CP,\
RiL'k Du1m1s. Cl',\ Jamcs l'ctcrs, CPA
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of Meeder Distribution Services, Inc. Dublin, Ohio
We have reviewed management's statements, included in the accompanying SEC Rule 15c3-3 Exemption Report, in which (1) Meeder Distribution Services, Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which Meeder Distribution Services, Inc. claimed an exemption from 17 C.F.R. §240. l 5c3-3: ( 1) (the "exemption provisions") and (2) Meeder Distribution Services, Inc. stated that Meeder Distribution Services, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Meeder Distribution Services, 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 Meeder Distribution Services, 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.
HHH CPA Group, LLC Columbus, Ohio February 24, 2023
21
1250 Old Henderson Road. Columbus. OH 43220 I Phone (614) 451-4644 I Fax (614) 451-3818 I www hhhcpagroup com
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#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES RELATED TO AN ENTITY'S CLAIM FOR EXCLUSION FROM MEMBERSHIP IN SIPC
To the Board of Directors of Meeder Distribution Services, Inc. Dublin, Ohio
**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 and were agreed to by Meeder Distribution Services, Inc. and the SIPC, solely to assist you and the SIPC in evaluating Meeder Distribution Services, Inc. 's compliance with the exclusion requirements from membership in SIPC under section 78ccc(a)(2)(A) of the Securities Investor Protection Act of 1970 for the year ended December 31, 2022, as noted on the accompanying Certification of Exclusion From Membership (Form SIPC-3). Meeder Distribution Services, Inc. 's management is responsible for its Form SIPC-3 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. 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 findings are as follows:
- 1) Compared the Total amount included in the accompanying Schedule of Form SIPC-3 Revenues prepared by Meeder Distribution Services, Inc. for the year ended December 31, 2022 to the total revenues in Meeder Distribution Services, Inc.'s audited financial statements included on Annual Audited Report Form X-17 A-5 Part III for the year ended December 31, 2022, noting no differences;
- 2) Compared the amount in each revenue classification reported in the Schedule of Form SIPC-3 Revenues prepared by Meeder Distribution Services, Inc. for the year ended December 31, 2022 to the internal financial statements and supporting documentation, noting no differences;
- 3) Recalculated the arithmetical accuracy of the Total Revenues amount reflected in the Schedule of Form SIPC-3 Revenues prepared by Meeder Distribution Services, Inc. for the year ended December 31, 2022 and in the related internal financial statements and supporting documentation, noting no differences.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on Meeder
1250 Old Henderson Road. Colurnbus, OH 4 3220 I Pho11e (614) 451-4644 I Fax (614 J 451-381 B I www hhhcpagroup com
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Distribution Services, Inc.'s compliance with the exclusion requirements from membership in SIPC for the year ended December 31, 2022. 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.
This report is intended solely for the information and use of Meeder Distribution Services, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified parties
HHH CPA Group, LLC Columbus, Ohio February 24, 2023
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.