# EFG CAPITAL INTERNATIONAL CORP. X-17A-5 (2026-03-03) — Broker-dealer annual report - Company: EFG CAPITAL INTERNATIONAL CORP. - Form: X-17A-5 - Filed: 2026-03-03 - Period: 2025-12-31 - Accession: 0001005813-26-000005 - CIK: 1005813 - File #: 8-48969 - Type: Broker-dealer - Material weakness: Yes - Auditor: PricewaterhouseCoopers LLP - Auditor location: Miami, FL - Contact: Kyle Leverett - Phone: 305-482-8017 - Website: pwc.com - Signed by: Kyle Leverett (Head of Finance) Original filing: https://www.sec.gov/Archives/edgar/data/1005813/000100581326000005/BSS.pdf --- {0}------------------------------------------------ dfdfdf {1}------------------------------------------------ #### OATH OR AFFIRMATION | Kyle Leverett | | | | |---------------|--|--|--| | | | | | swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of EFG Capital International Corp as of 3/2 2 026 , is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_1_Picture_4.jpeg) BERTHA CLEMENTE-DOUGLAS MY COMMISSION # HH 532300 EXPIRES: September 27, 2028 | ture: | | |-------|--| | | | | . | | | | |-----------------|--|--|--| | | | | | | Haad of Finance | | | | Signa Title. Notary Public #### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [c] Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - [ (d) Statement of cash flows. - [e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ {g) Notes to consolidated financial statements. - [ ] (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [1) Computation of tangible net worth under 17 CFR 240.18a-2. - [] (j) 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 240.18a-4, as applicable. - [1] 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. - [0] Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.18-3-1, 17 CFR 240.18a-2, 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. - [q] Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [t) Independent public accountant's report based on an examination of the statement of financial condition. - [ (u) Independent public accountant's report based on an examination of the 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. - [ [w] Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ [x] Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - [ (y) Report describing any material inadequacies 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: \*\* To request confidential treatment of certain portlons of this filing, see 17 CFR 240.17a-5(e)[2], os applicable. {2}------------------------------------------------ {3}------------------------------------------------ | Independent Auditors' Report | | |------------------------------------------------|--| | Consolidated Statement of Financial Condition | | | Notes to the Consolidated Financial Statements | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholder of EFG Capital International Corp. ## Opinion on the Financial Statement - Statement of Financial Condition We have audited the accompanying consolidated statement of financial condition of EFG Capital International Corp. and its subsidiary (the "Company") as of December 31, 2025, including the related notes (collectively referred to as the "(consolidated financial statement"). In our opinion, the consolidated financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. ## Basis for Opinion The consolidated financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated 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 the Company 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 of this consolidated financial statement 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statement. We believe that our audit provides a reasonable basis for our opinion. ( / nicentorhouse Congres LLP Miami, FL March 2, 2026 We have served as the Company's auditor since at least 2001. We have not determined the specific year we began serving as auditor of the Company. PricewaterhouseCoopers LLP, 545 NW 26th Street, Suite 800, Miami, Florida 33127 T: (305) 438 1800, www.pwc.com/us Classification: EFG Confidential {5}------------------------------------------------ # Consolidated Statement of Financial Condition 31 December 2025 | ASSOLS | | |---------------------------------------------------------------------------------|-------------| | Cash and cash equivalents | 37,409,043 | | Cash segregated under federal and other regulations | 3,657,910 | | Due from broker | 62,094 | | Due from customers | 10,554,902 | | Accounts receivable | 6,576,671 | | Due from employees | 714,747 | | Furniture, equipment, leasehold improvements and software, net | 5,870,031 | | Deferred tax asset, net | 4,124,173 | | Other assets | 1,373,255 | | Operating lease-right-of-use asset | 15,053,586 | | Total assets | 85,396,412 | | Liabilities | | | Accounts payable | 1,290,289 | | Due to broker | 10,542,921 | | Due to customers | 61,694 | | Accrued expenses and other liabilities | 11,125,772 | | Subordinated loans from related party | 8,000,000 | | Operating lease liability | 19,221,173 | | Total liabilities | 50,241,849 | | Stockholder's Equity | | | Common stock (\$.01 par value, 1,000 shares authorized, issued and outstanding) | 10 | | Additional paid-in capital | 40,756,635 | | Accumulated deficit | (5,602,082) | | Total Stockholder's Equity | 35,154,563 | | Total liabilities and Stockholder's equity | 85,396,412 | The accompanying notes are an integral part of these consolidated financial statements. {6}------------------------------------------------ {7}------------------------------------------------ #### 1. Organization and Nature of Business EFG Capital International Corp. ("EFG" or the "Company") is a wholly-owned subsidiary of EFG Capital Holdings Corp. (the "Parent"), which is owned by EFG International AG ("EFG International"), which is headquartered in Switzerland and listed on the Swiss Stock Exchange. The Company's principal office is located in Miami, Florida. The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company provides its customers with investment and brokerage related financial services. The Company buys and sells securities for customers, primarily from Latin America, acting in an agency capacity and charging a commission, or in a principal capacity earning mark ups and mark downs on a riskless principal trading basis. The Company also introduces its customers to affiliates, who provide customers with various financial services, and is compensated under fee sharing arrangements. #### Significant accounting policies 2. #### (a) Basis of preparation The consolidated financial statements include the accounts of EFG and its wholly-owned subsidiary, EFG Asesores Financieros Peru SRL (a Peruvian limited liability partnership). All material intercompany balances and transactions have been eliminated in consolidation. #### (b) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. #### (c) Cash and Cash Equivalents The Company has defined cash and cash equivalents as highly liquid instruments with original maturities of less than three months. The Company's cash equivalents are mainly comprised of money market accounts. #### (d) Cash Segregated Under Federal and Other Regulations The Company maintains cash segregated in a special reserve bank account for the exclusive benefit of its customers as well as in a special reserve bank account for the exclusive benefit of Brokers and Dealers; both pursuant to SEC Rule 15c3-3. #### (e) Fails to Receive/Deliver Pursuant to SEC Rule 15c3-3, the Company records fails to receive/deliver for transactions where clearance and settlement does not occur pursuant to the agreed upon date that are to be settled by EFG Bank AG ("EFG Bank"). The Company records the fails to deliver (included in due from broker and due to customers as of December 31, 2025) and fails to receive (included in due from customers and due to brokers at December 31, 2025) on its consolidated financial statements until the time that the transactions settle. #### (f) Loans and Advances to Employees Loans and advances to employees are stated at the outstanding balance of funds due for repayment of cash advances. The carrying amount may be reduced by an allowance that reflects management's best estimate of the amounts that will not be collected. As management believes that the amounts are fully collectible and are therefore stated at net realizable value, management has not recorded an allowance for doubtful accounts. #### (g) Leases The Company determines if an arrangement is a lease at inception. The Company's lease for office space is classified as an operating lease. Operating leases are included in the right-of-use ("ROU") assets and lease liabilities in the Company's consolidated statement of financial condition, ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising for the lease. A lease liability and corresponding ROU asset are recognized based on the present value of the minimum lease payments and do not include other variable contractual obligations, such as operating expenses, real estate taxes and employee parking, These costs are accounted for as period costs and expensed as incurred. When calculating the measurement of ROU assets and liabilities, the Company uses its incremental borrowing rate based on information available as of the {8}------------------------------------------------ lease commencement date and is updated based on information available at the remeasurement date for lease amendments. The subsequent measurement of the lease will result in the recognition of a single lease expense amount that is recorded on a straight-line basis over the lease term. The Company may enter into sublease arrangements as an intermediate lessor. Any incentives provided to sublessees are recognized as a reduction of rental income on a straight-line basis over the sublease term. ### (h) Furniture, Equipment, Leasehold Improvements and Software, net Furniture, equipment and leasehold improvements are recorded at the cost of acquisition less accumulated depreciation. Leasehold improvements include direct construction costs and other costs related to the development of the property that have been capitalized and have been placed in service as of December 31, 2025. Routine maintenance and repairs are expensed when incurred. Depreciation is recorded on a straight-line basis using estimated useful lives of three to seven years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement and/or incentive, or the term of the lease. Software is recorded at cost less accumulated amortization. Software licenses purchased are capitalized if the terms include the right to use in excess of twelve months. Amortization is recorded on a straight-line basis using estimated useful lives of three to five years. ## (i) Stock-based Compensation The Company participates in the equity incentive plan that awards compensation in the form of equity of EFG International's common stock to certain employees. Beginning in 2019, the Company entered into its own equity incentive plan with EFG International that also awards Restricted Stock Units of EFG International's common stock. Beginning in 2022, the Company entered into an equity incentive plan with EFG International that awards restricted shares of EFG International's common stock. The Company accounts for the stock-based compensation under the US GAAP provisions, which establishes that compensation expense is recognized for awards granted at the awards' fair value as of grant date over the requisite service period of the award, which is generally the awards' vesting period. ## (j) Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification 606 (the "Standard"), The Standard requires the use of significant judgment to determine whether performance obligations are satisfied at a point in time or over time; how to determine and allocate the transaction prices; when to recognize revenue as each performance obligation is satisfied; and whether constraints or variable consideration should be applied due to uncertain future events. The Company provides services to clients that require the completion of performance obligations in order to recognize revenue. Revenue is recognized when (or as) a service is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to, and the customer obtains control of that service. ## (k) Translation of Foreign Currencies Assets and liabilities denominated in foreign currencies are translated at year-end rates of exchange, whereas the income statement accounts are translated at average rates of exchange for the year. Gains or losses resulting from foreign currency transactions amounted to -\$9,897 and are included in other income in the accompanying consolidated statement of operations. ## (1) Concentration of Credit Risk The Company and its subsidiary are engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. ## (m) Income Taxes The Company is included in the consolidated federal income tax return filed by the Parent. Federal income taxes are calculated as if the Company filed on a separate return basis, and the amount of current tax or benefit calculated is either remitted to or received from the Parent. The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. {9}------------------------------------------------ {10}------------------------------------------------ #### 3. Cash Segregated Under Federal Regulations As of December 31, 2025, \$3,135,350 of cash was segregated in a special reserve bank account for the exclusive benefit of customers as well as \$522,560 of cash segregated in a special reserve bank account for the exclusive benefit of Brokers and Dealers both under SEC Rule 15c3-3. #### 4. Furniture, Equipment, Leasehold Improvements and Software, net Furniture, equipment, leasehold improvements and software net, consist of the following at December 31, 2025 | | Useful Lives
(in years) | 31 December 2025 | | |---------------------------------------------------|----------------------------|------------------|--| | Furniture | 5 | 2,680,250 | | | Equipment and Software | 3-5 | 7,207,802 | | | Leasehold improvements | 3-7 | 9,489,683 | | | Artwork | | 206,434 | | | Total gross | | 19,584,169 | | | - Less: Accumulated depreciation and amortization | | (13,714,138) | | | Total net | | 5,870,031 | | #### 5. Related Party Transactions The following table sets forth the Company's related party assets and liabilities as of December 31, 2025. 31 December 2025 | Assets | | |----------------------------------------|-----------| | Cash and equivalents | 1,327,163 | | Accounts receivable | 2,965,385 | | Due from employees | 714,747 | | Total assets | 8,007,295 | | Liabilities | | | Accounts payable | 118 660 | | Accrued expenses and other liabilities | 574,489 | | Subordinated loans from related party | 8,000,000 | | Total liabilities | 8,693,149 | As of December 31, 2025, the Company held cash at EFG Bank AG, EFG Bank & Trust (Bahamas) Ltd, and EFG Bank Cayman Branch in the amounts of \$596,703, \$723,659, and \$6,801, respectively, as a result of revenue generating and intercompany transactions during the year then ended. These balances are included in cash and cash equivalents in the accompanying consolidated statement of financial condition. As of December 31, 2025, the Company had various balances due from related party entities including EFG Capital Holdings for \$936,653 and EFG Asset Management {11}------------------------------------------------ (Americas) for \$4,868,294 as well as \$160,438 from other related entities as a result of various intercompany transactions, during the year then ended. These balances are included in accounts receivable in the accompanying consolidated statement of financial condition. The Company uses employee forgivable loans as a tool for recruitment. The forgivable loans have stated maturity dates and interest rates with forgivable components of both principal and interest based on meeting various targets. Occasionally, the Company will be required to provide withholding to the IRS on non-cash compensation, which it will later collect from employees. At December 31, 2025, due from employees amounted to \$714,747. As of December 31, 2025, the Company had a balance due to related party entities including EFG International of \$109,607 as well as \$9,053 to other related party entities as a result of intercompany transactions occurring during the year then ended. This balance is included in accounts payable in the accompanying consolidated statement of financial condition. The Company originally entered into a subordinated loan agreement with EFG International in September 2005. In #### 6. Clearing Agreement Clearing and depository operations for the Company's securities transactions are provided by Pershing, a third party clearing organization, and EFG Bank, an affiliate. Pursuant to the Company's agreement with Pershing, the Company is required to maintain a \$250,000 escrow deposit. The deposit is held in cash and included within cash and cash equivalents in the consolidated statement of financial condition. #### Sub-Clearing Agreements The Company has entered into sub-clearing agreements with foreign financial institutions. The Company executes transactions for customers of the broker-dealers in exchange for a percentage commission or mark-up and in some cases, a minimum monthly fee. #### 7. Commitments and Contingencies #### Leases The Company is required to recognize all leases on the balance sheet as ROU assets and corresponding lease September 2024, the subordinated loan maturity was extended to September 30, 2026. The subordinated loan has an outstanding balance of \$8,000,000 and carries an interest rate of 5.62% per annum. As of December 31, 2025, the Company has accrued interest related to the subordinated loan for \$574,489. During the year ended December 31, 2025, the Company incurred \$458,525 in interest expense. The subordinated loan was made under agreements pursuant to rules and regulations of the SEC, approved by FINRA and is subordinated to claims of general creditors. Under the terms of the subordinated loan any repayments prior to its due date are subject to written approval by FINRA. The amount of the subordinated liability is considered part of the Company's regulatory capital. It is the Company's intention to renew the subordinated loan before it becomes due. The Company entered into a second subordinated loan agreement with EFG International in September 2011 which took the form of a revolving line of credit with a limit of \$5 million. In September 2024, the revolving line of credit period was extended to expire on September 30, 2026. As of December 31, 2025, the revolving line of credit has no outstanding balance. #### Guarantees The Company has agreed to indemnify the clearing organization for losses that it may sustain from the customer accounts introduced by the Company. At December 31, 2025, there were no customer balances maintained at its clearing organizations and subject to such indemnification. The Company has experienced no losses or claims historically under the terms of this indemnification and, accordingly, has recorded no liability at December 31, 2025. In accordance with the margin agreement between the clearing organizations and customers, customer balances are collateralized by customer securities and supported by other types of recourse provisions including the right to request customers to deposit additional collateral or reduce securities positions without the consent of the customer. liabilities. The Company has non-cancelable operating leases for its office spaces in Miami and Peru. Additionally, a portion of the Miami office space has been subleased {12}------------------------------------------------ through the remaining term of the original lease. These contracts generally do not include purchase options or residual value guarantees. On December 22, 2023, the Company amended its lease agreement to extend its tenancy on a portion of square footage rented in its main office for an additional three months. As of December 31, 2025, the Company recognized \$15,053,586 as an operating lease ROU asset and \$19,221,173 as an operating lease liability in the accompanying consolidated statement of financial condition. The remaining lease term is 8.4 years. The incremental borrowing rate determined and used for purposes of discounting lease payments is 7.22%. On August 15, 2025, the company entered a sublease on a portion of square footage rented in its main office. The remaining lease term is 8,4 years. Lease income is recognized on a straight-line basis. Lease obligations and sublease payments to be received under the above-mentioned agreements as of December 31, 2025 are as follows: | 1.0358 | |---------------------------------------------------------------------------------| | obligations | | 2,763,480 | | 2,846,493 | | 582,390
2,931,807 | | 3,019,720 | | 14.467.404 | | 26,028,904 | | (6,807,731) | | 19,221,173 | | Sublease
payments
548,952
565,443
599,853
2.604.473
4,901,111 | #### Legal Matters The Company was not involved in any legal proceedings, claims, or litigation that in the opinion of management, will result in a material adverse effect on its financial position for the year ended December 31, 2025 and through the date these consolidated financial statements were available for issuance. {13}------------------------------------------------ #### 8 Segment Reporting The Company operates as a single reportable segment under U.S. GAAP ASC 280 as its business activities are managed as a single operating unit with a common customer base, shared infrastructure, and a unified management team. The company has identified the Principal Financial Officer as the Chief Operating Decision Maker ("CODM") who uses net income shown in #### 9. Stock Based Plans #### Restricted stock units and restricted shares The Company participates in its Parent's equity incentive plan (the "Plan") as well as its own beginning in 2021 (together the "Plans"). The Plans mirror the EFG International plan and is paid to the employees with EFG International shares. EFG International has committed to provide, on an ongoing basis, to both the Parent and the Company, the restricted shares granted from 2022 through 2025 with the Company's employees at the end of each vesting period. The Company exchanges nominal cash and equity consideration for the 2022-2025 Plans for shares granted. The value of the awards are based on the stock price of EFG International (EFGI) at the time of the grant adjusted for an estimate of the present value of future dividends The compensation costs associated with the RSUs and restricted shares are amortized over a three year vesting period. There were 188,437 restricted shares granted for the year ended December 31, 2025 with a fair value of \$2,702,953 and there were 452,570 unvested restricted shares as of December 31, 2025. #### Long-term incentive plan A one-time long-term incentive plan ("LTIP") for EFG International's senior management (Executive Committee, Global Business Committee and Senior Managers) was the accompanying consolidated statement of operations to evaluate financial performance and allocate resources based on the results of the Company as a whole. Additionally, the CODM uses excess net capital, which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. implemented in 2023. The LTIP is a plan covering a threeyear up to five-year performance period beginning 2023 and rewarding senior management's achievement based on financial and business targets through granting shares of EFG International via restricted shares. The final amount of restricted shares granted under the LTIP is subject to meeting minimum thresholds and depending on the performance achieved. The restricted shares granted are subject to a three-year vesting schedule beginning in May 2026 and are subject to EFG International achieving certain performance targets. The Company's senior managers participating in the award received a target award of 135,001 shares with a fair value at grant date amounting to \$1,259,198. During the year ended December 31, 2025, the Company recognized \$256,764 in amortization costs related to the awards. Total stock-based compensation expense in 2025 amounted to \$3,415,368 after forfeitures and is included in employee compensation and benefits in the accompanying consolidated statement of operations. The RSU and restricted share incentive awards under the above-mentioned plans as of December 31, 2025 are as follows: | | Fair Value at
grant date | Dec.31, 2024
unamortized | Current year
grants | Current year
forfeitures | Current year
amortization | Dec 31, 2025
unamortized | |--------------|-----------------------------|-----------------------------|------------------------|-----------------------------|------------------------------|-----------------------------| | Year granted | | | | | | | | 2022 | 2,885,744 | 398,128 | 11 | - | (398.128) | | | 2023 | 4,886,776 | 2,267,687 | P | le | (1,327,295) | 940 392 | | 2024 | 2.909,750 | 2,013,703 | = | 1 | (909,655) | 1,104,048 | | 2025 | 2,702,953 | | 2,702,953 | | (780,290) | 1,922,663 | | Total | | 4,679,518 | 2,702,953 | - | (3,415,368) | 3,967,103 | {14}------------------------------------------------ #### 10. Financial Instruments with Off-Balance sheet and Credit Risk In the normal course of business, the Company enters into transactions to buy and sell securities with other brokerdealers in order to fill its customers' orders. The Company may be required, in the unlikely event of non-delivery of securities owned by other broker-dealers, to purchase or sell the securities in the open market to correct a failed settlement. These corrective transactions to buy and sell may result in losses that are not reflected in the accompanying consolidated financial statements. Securities transactions with other brokers and customers can result in concentrations of credit risk. Credit risk is the amount of accounting loss the Company would incur if other broker-dealers or the customer failed to perform their obligations under contractual terms. To mitigate this risk, EFG, together with its affiliates, reviews and monitors the financial condition of the broker-dealers with whom it deals, as well as the size of the transactions it performs with such broker-dealers. As further mitigation of settlement risk, EFG mostly buys or sells securities for its customers when it is certain that either the cash or the securities to settle are available in the customer's custody, account. {15}------------------------------------------------ #### 11. Income Taxes At December 31, 2025, the tax effect of temporary differences that give rise to significant portions of the deferred tax asset and tax liabilities were: > Year ended 31 December 2025 | Deferred tax assets | | |------------------------------------|-----------| | Accrued bonus and compensation | 1924,644 | | Accrued interest to Parent | 135,210 | | Net operating losses | 1,205,392 | | Interest expense | 60,934 | | Operating lease liability | 4,871,606 | | Contributions | 41,785 | | Other | 4.736 | | Total deferred tax assets | 8,244,307 | | Deferred tax liabilities | | | Operating lease right-of-use asset | 3,815,331 | | Fixed assets | 304,803 | | Total Deferred tax liability | 4,120,134 | | Net deferred tax asset | 4,124,173 | Included in the deferred tax asset balance is approximately \$1,031,464 attributable to gross state and federal net operating loss carryforwards. The state net operating loss carryforwards begin to expire after 2036. The Company is subject to U.S. federal income tax, as well as state income tax primarily in Florida. The Company is not currently subject to U.S. federal or state and local income tax examinations by tax authorities for years before 2021. In order to determine the realizability of deferred tax assets, the Company considers all available positive and negative evidence, including future reversals or existing temporary differences and projected future taxable income. The Company believes that it is more likely than not that the tax benefit will be realized. The Company follows the ASC 740 accounting guidance for uncertainty in income taxes. Tax positions initially need to be recognized in the financial statements when it is morelikely-than-not the position will be sustained upon examination by the tax authorities. As of December 31, 2025, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. #### 12. Subsequent Events The Company considered subsequent events through March 2. 2026, the date the financial statements were available to be issued, noting no events warranting disclosure or adjustments to the financial statements. 发快发重要求意有关系有关状式关注意识政治方面积未去方法 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.