# HANDELSBANKEN MARKETS SECURITIES, INC. X-17A-5 (2026-02-26) — Broker-dealer annual report - Company: HANDELSBANKEN MARKETS SECURITIES, INC. - Form: X-17A-5 - Filed: 2026-02-26 - Period: 2025-12-31 - Accession: 0000945039-26-000001 - CIK: 945039 - File #: 8-48279 - Type: Broker-dealer - Material weakness: No - Auditor: Regen,Benz & Mackenzie, C.P.A's P.C. - Auditor location: New York, NY - Contact: Doreen Vega - Phone: 212-751-4422 - Email: dvega@dfppartners.com - Website: dfppartners.com - Signed by: Doreen Vega (FINOP/Co-CFO) Original filing: https://www.sec.gov/Archives/edgar/data/945039/000094503926000001/hmsi2025publ.pdf --- {0}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2025 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** 8-48279 SEC FILE NUM BER 0 M B APPROVAL **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** 01/01/2025 12/31/2025 FILING FOR THE PERIOD BEGINNING AND ENDING ---------- ----------- MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** Handelsbanken Markets Securities, Inc. NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): ■ □ Broker-dealer □ Security-based sw ap dealer □ Check here if respondent is also an OTC derivatives dealer □ Major security-based sw ap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | 900 Third Avenue - 17th Floor | | | |----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|-----------------------|-------------------------------------------| | | (No. and Street) | | | | New York | NY | | 10022 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Doreen Vega | 212-751-4422 | dvega@dfppartners.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Regen, Benz & Mackenzie, C.P.A's P.C. | | | | | (Name - if individual, state last, first, and middle name) | | | | 57 West 38th Street, 3rd Floor | New York | NY | 10018 | | (Address) | (City) | (State) | (Zip Code) | | 09/15/2004 | | 1152 | | | te of Reg;,;,ca,;oa w•h PCAOB)[;f appl;cableJ
T | | | (PCAOB RegfatraHoa Numbe,, ;f appbcable)I | | | 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.** {2}------------------------------------------------ ### O A T H O R A F FI R M A TI O N | I, _
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_ | |------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------| | Titl
e: | | | \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ FINOP/CO-CFO ### T his fili n g \* \* co nt ai ns (c h ec k all a p plic a bl e bo x es): - ☐ (a) St at e m e nt of fi n a nci al c o n diti o n. - ☐ (b) N ot es t o c o ns oli d at e d st at e m e nt of fi n a nci al c o n diti o n. - ☐ (c) St at e m e nt of i nc o m e (l oss) or, if t h er e is ot h er c o m pr e h e nsi v e i nc o m e i n t h e p eri o d(s) pr es e nt e d, a st at e m e nt of c o m pr e h e nsi v e i nc o m e ( as d efi n e d i n § 2 1 0. 1 -0 2 of R e g ul ati o n S -X) . - ☐ ( d) St at e m e nt of c as h fl o ws. - ☐ ( e) St at e m e nt of c h a n g es i n st oc k h ol d ers' or p art n ers' or s ol e pr o pri et or's e q uit y. - ☐ (f) St at e m e nt of c h a n g es i n li a biliti es s u b or di n at e d t o cl ai ms of cr e dit ors. - ☐ ( g) N ot es t o c o ns oli d at e d fi n a nci al st at e m e nts. - ☐ (h) C o m p ut ati o n of n et c a pit al u n d er 1 7 C F R 2 4 0. 1 5c 3 -1 or 1 7 C F R 2 4 0. 1 8 a 1, as a p plic a bl e. - ☐ (i) C o m p ut ati o n of t a n gi bl e n et w ort h u n d er 1 7 C F R 2 4 0. 1 8 a -2. - ☐ (j) C o m p ut ati o n f or d et er mi n ati o n of c ust o m er r es er v e r e q uir e m e nts p urs u a nt t o Ex hi bit A t o 1 7 C F R 2 4 0. 1 5c 3 -3. - ☐ ( k) C o m p ut ati o n f or d et er mi n ati o n of s ec urit y-b as e d s w a p r es er v e r e q uir e m e nts p urs u a nt t o Ex hi bit B t o 1 7 C F R 2 4 0. 1 5c 3 -3 or Ex hi bit A t o 1 7 C F R 2 4 0. 1 8 a -4, as a p plic a bl e. - ☐ (l) C o m p ut ati o n f or D et er mi n ati o n of P A B R e q uir e m e nts u n d er Ex hi bit A t o § 2 4 0. 1 5c 3 3. - ☐ (m) I nf or m ati o n r el ati n g t o p oss essi o n or c o ntr ol r e q uir e m e nts f or c ust o m ers u n d er 1 7 C F R 2 4 0. 1 5c 3 -3. - ☐ (n) I nf or m ati o n r el ati n g t o p oss essi o n or c o ntr ol r e q uir e m e nts f or s ec urit y -b as e d s w a p c ust o m ers u n d er 1 7 C F R 2 4 0. 1 5c 3 -3( p)( 2) or 1 7 C F R 2 4 0. 1 8 a -4, as a p plic a bl e. - ☐ (o) R ec o ncili ati o ns, i ncl u di n g a p pr o pri at e ex pl a n ati o ns, of t h e F O C U S R e p ort wit h c o m p ut ati o n of n et c a pit al or t a n gi bl e n et w ort h u n d er 1 7 C F R 2 4 0. 1 5c 3 -1, 1 7 C F R 2 4 0. 1 8 a -1, or 1 7 C F R 2 4 0. 1 8 a -2, as a p plic a bl e, a n d t h e r es er v e r e q uir e m e nts u n d er 1 7 C F R 2 4 0. 1 5c 3 -3 or 1 7 C F R 2 4 0. 1 8 a -4, as a p plic a bl e, if m at eri al diff er e nc es exist, or a st at e m e nt t h at n o m at eri al diff er e nc es exist. - ☐ (p) S u m m ar y of fi n a nci al d at a f or s u bsi di ari es n ot c o ns oli d at e d i n t h e st at e m e nt of fi n a nci al c o n diti o n. - ☐ (q) O at h or affir m ati o n i n acc or d a nc e wit h 1 7 C F R 2 4 0. 1 7 a-5, 1 7 C F R 2 4 0. 1 7 a -1 2, or 1 7 C F R 2 4 0. 1 8 a -7, as a p plic a bl e . - ☐ (r) C o m pli a nc e r e p ort i n acc or d a nc e wit h 1 7 C F R 2 4 0. 1 7 a -5 or 1 7 C F R 2 4 0. 1 8 a -7, as a p plic a bl e. - ☐ (s) Ex e m pti o n r e p ort i n acc or d a nc e wit h 1 7 C F R 2 4 0. 1 7 a 5 or 1 7 C F R 2 4 0. 1 8 a -7, as a p plic a bl e. - ☐ (t) I n d e p e n d e nt p u blic acc o u nt a nt's r e p ort b as e d o n a n ex a mi n ati o n of t h e st at e m e nt of fi n a nci al c o n diti o n. - ☐ (u) I n d e p e n d e nt p u blic acc o u nt a nt's r e p ort b as e d o n a n ex a mi n ati o n of t h e fi n a nci al r e p ort or fi n a nci al st at e m e nts u n d er 1 7 C F R 2 4 0. 1 7 a -5, 1 7 C F R 2 4 0. 1 8 a -7, or 1 7 C F R 2 4 0. 1 7 a -1 2, as a p plic a bl e. - ☐ (v) I n d e p e n d e nt p u blic acc o u nt a nt's r e p ort b as e d o n a n ex a mi n ati o n of c ert ai n st at e m e nts i n t h e c o m pli a nc e r e p ort u n d er 1 7 C F R 2 4 0. 1 7 a -5 or 1 7 C F R 2 4 0. 1 8 a -7, as a p plic a bl e. - ☐ (w) I n d e p e n d e nt p u blic acc o u nt a nt's r e p ort b as e d o n a r evi e w of t h e ex e m pti o n r e p ort u n d er 1 7 C F R 2 4 0. 1 7 a 5 or 1 7 C F R 2 4 0. 1 8 a -7, as a p plic a bl e. - ☐ (x) S u p pl e m e nt al r e p orts o n a p pl yi n g a gr e e d-u p o n pr o ce d ur es, i n acc or d a nc e wit h 1 7 C F R 2 4 0. 1 5c 3 -1 e or 1 7 C F R 2 4 0. 1 7 a -1 2, as a p plic a bl e. - ☐ ( y) R e p ort d escri bi n g a n y m at eri al i n a d e q u aci es f o u n d t o exist or f o u n d t o h a v e exist e d si nc e t h e d at e of t h e pr evi o us a u dit, or a st at e m e nt t h at n o m at eri al i n a d e q u aci es exist, u n d er 1 7 C F R 2 4 0. 1 7 a -1 2( k). - ☐ (z) Ot h er: \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ \_ - \* \* T o r e q u est c o nfi d e nti al tr e at m e nt of c ert ai n p orti o ns of t his fili n g, s e e 1 7 C F R 2 4 0. 1 7 a -5( e)( 3) or 1 7 C F R 2 4 0. 1 8 a -7( d)( 2), as a p plic a bl e. {3}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ### **CONTENTS** | | PAGE | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | | | | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition | 3-9 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REGEN, BENZ & MACKENZIE, C.P.A.'S, P.C. CERTIFIED PUBLIC ACCOUNTANTS #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of Handelsbanken Markets Securities, Inc. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Handelsbanken Markets Securities, Inc. ( a wholly owned subsidiary of Svenska Handelsbanken AB), ( a Delaware corporation) as of December 31, 2025, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the financial statement present fairly, in all material respects, the financial position of Handelsbanken Markets Securities, Inc. as of December 3 1, 2025, 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 statement is the responsibility of Handelsbanken Markets Securities, lnc.'s management. Our responsibility is to express an opinion on Handelsbanken Markets Securities, Inc.'s financial statement 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 Handelsbanken Markets 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 statement is 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 statement, 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. Regen, Benz & MacKenzie, CP A's PC We have served as Handelsbanken Markets Securities, Inc.'s Auditor since 2022. New York, New York February 24, 2026 {5}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ### **STATEMENT OF FINANCIAL CONDITION** #### **December 31, 2025** | ASSETS | | |---------------------------------------|-----------------| | Cash and cash equivalents | \$
6,744,617 | | Other assets | 432,177 | | | \$
7,176,794 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities | | | Due to parent | \$
132,676 | | Due to affiliates | 99,557 | | Accounts payable and accrued expenses | 135,814 | | Total liabilities | 368,047 | | | | | Stockholder's Equity | | | Common stock, \$.01 par value, 1,000 shares | | |---------------------------------------------|-----------------| | authorized, issued, and outstanding | 10 | | Additional paid-in capital | 12,712,990 | | Accumulated deficit | (5,904,253) | | Total stockholder's equity | 6,808,747 | | | 7,176,794
\$ | {6}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **1. Nature of business and summary of significant accounting policies** #### *Nature of Business* Handelsbanken Markets Securities, Inc. (the "Company"), a wholly-owned subsidiary of Svenska Handelsbanken AB (the "Parent"), was incorporated in the State of Delaware on January 9, 1995. The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company engages primarily in equity brokerage services. The Company acts as a chaperoning broker-dealer pursuant to Rule 15a-6 for institutional customers and other broker-dealers in the purchase and sale of foreign securities. The Company executed and cleared all of these foreign trades through the Parent and affiliates which are settled on a delivery versus payment basis. Effective August 1, 2019, the Parent and Company entered into a cost plus agreement where the Company is compensated 110% of its operating expenses in lieu of commissions. Such revenue is described as management brokerage service in the accompanying statement of operations. The Company does not carry securities accounts for customers or perform custodial functions relating to the customers' securities. #### *Cash and Cash Equivalents* The Company considers its holdings in bank money market accounts to be cash equivalents. #### *Basis of Presentation* The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### *Revenue Recognition* Revenue from Contracts with Customers ("ASC Topic 606") requires that an entity recognize revenue to depict the transfer of promised goods or service 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 five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when the entity satisfies a performance obligation. {7}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **1. Nature of business and summary of significant accounting policies (continued)** #### *Management Brokerage Service* Revenue is earned through the reimbursement of all operating expenses of the Company plus a mark-up of 10% under the service agreement with the Parent. Revenue is recognized and the performance obligation is satisfied when the underlying expenses have been incurred. #### *Research Income* The Company compiles and distributes financial equity research reports to investment advisory institutions and financial business entities. Revenues are earned from direct billing related to the distribution of these reports. The Company believes that the date of distribution is the appropriate point to recognize revenue related to direct research, because that is when their performance obligation is satisfied, the pricing is agreed upon, and the benefit of information contained within the reports is available to the customer. #### *Advisory Fee Income* The Company provides advisory services by facilitating corporate debt deals sourced by the New York branch. Revenue is generally recognized at the point in time that performance obligations under the contract are satisfied (the closing date of the transaction). Further, under some customer contracts, the Company provides advisory services on a daily basis. The Company believes the performance obligation for providing these advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a contractually agreed upon rate. Fees are received in accordance with the timeframe defined in each individual contract and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. #### *Fees Receivable* Fees receivable are carried at the amounts billed to customers, net of an allowance for credit losses, if any. At December 31, 2025, the Company had Fee receivables of approximately \$401,800 presented within Other assets on the Statement of Financial Condition. {8}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **1. Nature of business and summary of significant accounting policies (continued)** ### *Allowance for Credit Losses* In accordance with ASC Topic 326, Financial Instruments - Credit Losses, certain financial assets measured at amortized cost by requiring a current expected credit loss (CECL) methodology to estimate expected credit losses over the entire life of the financial assets as of the reporting date. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including fees receivable utilizing the CECL framework. The Company's expectation is that the credit risk associated with fees receivable is that any client with which it conducts business with is unable to fulfill its contractual obligations. Management monitors the credit risk of clients and currently there is not a foreseeable expectation of an event or change which could result in the fees receivable being unpaid based on individual facts and circumstances. 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 determining the allowance for credit losses. The Company has no allowance for credit losses as of and for the year ended December 31, 2025. #### *Fair Value of Financial Instruments* At December 31, 2025, the carrying value of the Company's financial instruments, fees receivable, due to parent, and due to affiliates approximate their fair values due to the nature of their short term maturities. ### *Property and Equipment, net* Property and equipment is stated at cost less accumulated depreciation. Depreciation is recognized based on the straight-line method over the estimated useful lives of the assets. The Company provides for depreciation as follows: | Asset | Estimated Useful Life | Principal Method | |------------------------|-----------------------|------------------| | Furniture and fixtures | 5-7 years | Straight-line | | Computer equipment | 5 years | Straight-line | Property and equipment, net includes computer equipment of \$271,191 and furniture and fixtures of \$148,085 as of December 31, 2025. As of December 31, 2025, the accumulated depreciation was \$419,276, with a net book value of \$0. {9}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **1. Nature of business and summary of significant accounting policies (continued)** #### *Income Taxes* The Company follows an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce the deferred income tax assets to the amount expected to be realized. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in the Company's financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, the Company reassesses these probabilities and records any changes in the financial statement as appropriate. Accrued interest and penalties related to income tax matters are classified as a component of income tax expense. In accordance with GAAP, the Company is required to determine whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized could result in the Company recording a tax liability that would reduce stockholder's equity. This policy also provides guidance on thresholds, measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different entities. Management's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Company files its income tax returns in the U.S. federal and various state and local jurisdictions. Any potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, state and local tax laws. The Company's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. Effective December 31, 2025, the Company adopted ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendments enhance the transparency of income tax disclosures. The adoption of ASU 2023-09 did not have a material impact on the Company's financial position, results of operations, or income tax disclosures. {10}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **1. Nature of business and summary of significant accounting policies (continued)** #### *Use of Estimates* The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statement. Actual results could differ from those estimates. #### **2. Net capital requirement** The Company is a member of FINRA, and is subject to the SEC's Uniform Net Capital Rule 15c3-1. The Company has elected to compute its net capital requirement, pursuant to SEC Rule 15c3-1, which requires minimum net capital of \$250,000. At December 31, 2025, the Company's net capital was \$6,376,570, which was \$6,126,570 in excess of its minimum net capital requirement of \$250,000. #### **3. Income taxes** The Company accounts for income taxes under ASC 740, "Income Taxes," and is subject to U.S. federal income taxes, and New York State and New York City income taxes. The Company adopted ASU 2023-09, Improvements to Income Tax Disclosures, on January 1, 2025. The following table presents a reconciliation of the U.S. federal statutory tax rate to the Company's effective income tax rate for the year ended December 31, 2025. | Year Ended December 31, 2025 | | | | | |--------------------------------------------------------------|----|-----------|---------|--| | | | Amount | Percent | | | US Federal Statutory Tax Rate | \$ | 284,353 | 21.0% | | | State & Local taxes, net federal income tax effect (Minimum) | \$ | 1,387 | 0.1% | | | Net Operating Loss Carryfoward Allowance | \$ | (282,189) | -20.8% | | | Nontaxable or Nondeductible Items | | | | | | Vacation | \$ | (3,886) | -0.3% | | | Meals and Entertainment | \$ | 1,722 | 0.1% | | | Income Tax Expense | \$ | 1,387 | 0.1% | | The Company paid income taxes, net of refunds, to the federal government in the amount of \$0 for the year ended December 31, 2025. Income taxes paid to the state of New York, net of refunds, amounted to \$2,279 for the year ended December 31, 2025. {11}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) ## NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **3. Income taxes (continued)** No individual jurisdiction other than the federal, New York represented 5% or more of the total income taxes paid. As of December 31, 2025, the Company had U.S. federal net operating loss ("NOL") carryforwards of approximately \$6,527,000 which are available to reduce future taxable income. The federal NOL carryforwards of approximately \$396,000 will expire through 2037. The federal NOL of approximately \$6,131,000 can be carried forward indefinitely but limited to offset 80% of taxable income. The Company's income and expenses for the New York State and New York City income tax returns are included within the filings of the Parent's combined tax return. | 2025 Deferred tax asset, net: | | | | |-------------------------------|----|-------------|--| | NOL | \$ | 1,370,686 | | | Valuation Allowance | \$ | (1,370,686) | | The Company's taxes are subject to examination for the years ended 2022 through 2025. #### **4. Concentrations of credit risk** The Company is engaged in various brokerage activities whose counterparties are primarily institutions. In the normal course of business, the Company is involved in the execution and settlement of various securities transactions whose counterparties are primarily institutions and affiliates. These activities may expose the Company to risk in the event that the counterparty is unable to fulfill its contracted obligations and the Company has to purchase or sell the securities underlying the contract at a loss. The Company has receivables and payables for financial instruments sold to and purchased from brokers and dealers. The Company is exposed to risk of loss from the inability of the brokers and dealers to pay for purchases or to deliver the financial instruments sold, in which case the Company would have to sell or purchase the financial instruments at prevailing market prices. Pursuant to the terms of the agreement between the Company and the clearing broker, the clearing broker has the right to charge the Company for losses that result from a counterparty's failure to fulfill its contractual obligations. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. These balances are insured by the Federal Deposit Insurance Corporation for up to \$250,000 per institution. At December 31, 2025, the Company had cash balances of approximately \$6,495,000 in excess of federally insured limits. The Company is subject to credit risk to the extent any financial institutions with which it conducts business is unable to fulfill contractual obligations on its behalf. {12}------------------------------------------------ (A Wholly-Owned Subsidiary of Svenska Handelsbanken AB) NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### **5. Related party transactions** The Parent and Company have a cost plus agreement where the Company is compensated 110% of its operating expenses. The Company has a payable to its Parent related to this agreement of \$132,676 as of December 31, 2025. Pursuant to a service agreement between the Company and Svenska Handelsbanken New York Branch (the "Branch"), an affiliate, the Branch allocates expenses to the Company based on expenses incurred by the Branch on behalf of the Company related to its daily operations. The Company has an amount due to affiliates of \$99,557 at December 31, 2025, representing both allocated and other expenses paid by the Branch, principally for December 2025. #### **6. Employee benefit plan** #### *Money Purchase Plan* The Company maintains a money purchase plan (the "Plan") which covers all current employees. Annual contributions to the Plan are at the sole discretion of the Company. During the year, the Company contributed 10% of each employee's annual salary, up to a maximum of \$36,000 per employee, to the Plan. #### **7. Segment Reporting** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of equity brokerage services. The Company acts as a chaperoning broker-dealer pursuant to Rule 15a-6 for institutional customers and other brokerdealers in the purchase and sale of foreign securities. The Company also earns Management brokerage services revenue from a cost plus agreement with Parent (See Note 1). The Company has identified its chief executive officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. #### **8. Subsequent events** The Company has evaluated subsequent events through the date of issuance of these financial statements, February 24, 2026. Based on this evaluation, the Company has determined that no additional events have occurred that were to be recognized or disclosed to the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.