# CAPITAL INVESTMENT BROKERAGE, INC. X-17A-5 (2026-07-01) — Broker-dealer annual report - Company: CAPITAL INVESTMENT BROKERAGE, INC. - Form: X-17A-5 - Filed: 2026-07-01 - Period: 2025-12-31 - Accession: 0001010383-26-000005 - CIK: 1010383 - File #: 8-49118 - Type: Broker-dealer - Material weakness: No - Auditor: Batchelor, Tillery & Roberts, LLP - Auditor location: Raleigh, NC - Contact: Sue Ellen Harrington - Phone: 9195399049 - Email: rkbryant@capital-invest.com - Website: capital-invest.com - Signed by: Richard K. Bryant (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1010383/000101038326000005/CIBAuditedFin122025-OCR2.pdf --- {0}------------------------------------------------ Financial Statements and Supplementary Information Years Ended December 31, 2025 and 2024 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** > **ANNUAL REPORTS FORM X-17A-5 PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-49118 **FACING PAGE** **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING 0110112025 | ---------- | AND ENDING 1213112025 | ----------- | | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|-------------|-------------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Capital Investment Brokerage, Inc. | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | □ Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: {Do not use a P.O. box no.) | | | | | | 100 East Six Forks Road, Suite 200 | | | | | | | (No. and Street) | | | | | Raleigh | NC | | 27609 | | | (City) | | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Richard K. Bryant | 9198312370 | | | rkbryant@capital-invest.com | | (Name) | (Area Code -Telephone Number)
(Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Batchelor Tillery & Roberts, LLP | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 3605 Glenwood Avenue, Suite 350 | Raleigh | | NC | 27612 | | (Address) | (City) | | (State) | (Zip Code) | | 2009 | | 3675 | | | | rte of Registrat;oo with PCAOB)(;f applicableJ | | | | I
(PCAOB Registrntioo N,mbec, if applicabl,J | | | 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}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Richard K. Bryant | | swear {or affirm) that, to the best of my knowledge and belief, the | | |-------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of Capital Investment Brokerage, Inc. | | | as of | | __________ __, 2~
_1_2_/_3_1 | | 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. | -~~--, | £ | ~ | | | EVE MITCHINER
NOTARY PUBLIC
'"'AKE COUNTY, N.C.
3 15 2027
vv,
My Commission Expires •
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V | ---- | Notary Public ## This filing\*\* contains (check all applicable boxes): - **l!ii!I** (a) Statement of financial condition. - **l!ii!I** (b) Notes to consolidated statement of financial condition. - **l!ii!I** (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. - **l!ii!I** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - ~ (g) Notes to consolidated financial statements. - ii!! (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) 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. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - **l!ii!I** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ii!! (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ~ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **l!ii!I** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - **l!ii!I** (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ii!l (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ~ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 24O.17a-5{e){3) or 17 CFR 240.18a-7{d){2}, as applicable. {3}------------------------------------------------ # BATCHELOR, TILLERY & ROBERTS, **LLP** CERTIFIED PUBLIC ACCOUNTANTS **POST** OFFICE **BOX 18068 RALEIGH, NORTH CAROLINA 27619** RONALD **A.** BATCHELOR WM. JAMES BLACK, JR. SCOTT E. CABANISS MICHELLE **W.** LEMANSKI JARED L. PILAND DAVID C. CORN, **JR.** **3605** GLENWOOD **AVENUE,** SUITE 350 **RALEIGH, NORTH CAROLINA 27612** TELEPHONE **(919) 787-8212 FACSIMILE (919) 783-6724** ## **Report of Independent Registered Public Accounting Firm** The Stockholders Capital Investment Brokerage, Inc.: ## **Opinion on the Financial Statements** We have audited the accompanying balance sheets of Capital Investment Brokerage, Inc. (the "Company") as of December 31, 2025 and 2024, and the related statements of income and retained earnings, and cash flows for the years then ended, and the related notes and supplemental schedules ( collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 3 1, 2025 and 2024, 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 the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. 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 audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits 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 audits 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 audits provide a reasonable basis for our opinion. {4}------------------------------------------------ ## **Auditors' Report on Supplemental Information** The supplemental information in schedules 1-4 has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. The supplemental information is the responsibility of the Company'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 supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 1996. Raleigh, North Carolina February 24, 2026 {5}------------------------------------------------ #### CAPITAL INVESTI'vffiNT BROKERAGE, INC. #### Balance Sheets #### December **31 ,** 2025 and 2024 | | 2025 | 2024 | |--------------------------------------|-----------------|-----------------| | Assets | | | | Current assets: | | | | Cash and cash equivalents | 832,976
\$ | \$
710,521 | | Receivable from clearing agent | 55,907 | 66,674 | | Other receivables | 67,636 | 37,370 | | Prepaid expenses | 4,115 | 3,619 | | Total current assets | 960,634 | 818,184 | | Property and equipment, net | | | | Goodwill | 260,435 | 260,435 | | Deposits | 16,500 | 16,500 | | | \$
1,237,569 | \$
1,095,119 | | Liabilities and Stockholders' Equity | | | | Current liabilities: | | | | Commissions payable | 66,451
\$ | 56,897
\$ | | Accounts and other payables | 2,909 | 1,822 | | Accrued retirement | 1,416 | 1,508 | | Total current liabilities | 70,776 | 60,227 | | Stockholders' equity: | | | | Common stock, no par value | 371,000 | 371,000 | | Additional paid-in capital | 50,000 | 50,000 | | Retained earnings | 745,793 | 613,892 | | Total stockholders' equity | 1,166,793 | 1,034,892 | | | 1,237,569
\$ | 1,095,119
\$ | {6}------------------------------------------------ #### Statements of Income and Retained Earnings #### Years Ended December 31, 2025 and 2024 | | 2025 | 2024 | | |--------------------------------------------------------|---------------|---------------|--| | | | | | | Revenues: | | | | | Commissions on exchange listed securities | 22,279
\$ | \$
27,776 | | | executed on exchanges | 205,535 | 177,684 | | | Other security commissions | 107,078 | 108,895 | | | Sales of investment company shares | | | | | Fees for account supervision, investment advisory, and | 703,899 | 601,024 | | | administrative services | | | | | Other revenues | 1,102,141 | 1,095,941 | | | | 2,140,932 | 2,011,320 | | | Operating expenses: | | | | | Salaries and related expenses | 310,057 | 281,531 | | | Management fees | 82,000 | 75,000 | | | Commissions | 1,387,370 | 1,176,306 | | | Registration and fees | 121,179 | 109,872 | | | Publications | 19,429 | 8,774 | | | Legal and professional | 40,736 | 37,153 | | | Insurance | 9,876 | 17,176 | | | Taxes and licenses | 904 | 1,521 | | | Retirement | 8,110 | 7,915 | | | Miscellaneous | 46,125 | 111,741 | | | | 2,025,786 | 1,826,989 | | | Operating income | 115,146 | 184,331 | | | Other income (expense): | | | | | Interest income | 16,755 | 15,626 | | | Interest expense | | (226) | | | | 16,755 | 15,400 | | | Net income | 131,901 | 199,731 | | | Retained earnings, beginning of year | 613,892 | 414,161 | | | Retained earnings, end of year | \$
745,793 | \$
613,892 | | {7}------------------------------------------------ ## Statements of Cash Flows ## Years Ended December 31, 2025 and 2024 | | | 2025 | | 2024 | | |--------------------------------------------------|----|----------|----|---------|--| | Cash flows from operating activities: | | | | | | | Net income | \$ | 131,901 | \$ | 199,731 | | | Adjustments to reconcile net income to net cash | | | | | | | provided (used) by operating activities: | | | | | | | Changes in operating assets and liabilities: | | | | | | | Receivable from clearing agent | | 10,767 | | (5,144) | | | Other receivables | | (30,266) | | 10,109 | | | Prepaid expenses | | (496) | | 582 | | | Commissions payable | | 9,554 | | (5,501) | | | Accounts and other payables | | 1,087 | | (4) | | | Accrued retirement | | (92) | | 467 | | | Net cash provided (used) by operating activities | | 122,455 | | 200,240 | | | Net increase in cash and cash equivalents | | 122,455 | | 200,240 | | | Cash and cash equivalents, beginning of year | | 710,521 | | 510,281 | | | Cash and cash equivalents, end of year | \$ | 832,976 | \$ | 710,521 | | | Interest paid | \$ | | \$ | 226 | | {8}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 and 2024 # (1) Organization and Significant Accounting Policies Capital Investment Brokerage, Inc. (the "Company") was incorporated as a North Carolina corporation on October 15, 1996 to provide investment services to investors as a fully disclosed introducing broker-dealer. The Company operates in North Carolina and is licensed to operate in approximately forty-four other states. It operates in states other than North Carolina primarily through independent representatives. The Company is a broker-dealer in securities registered with the Securities and Exchange Commission (SEC) and is a member of various exchanges and the Financial Industries Regulatory Authority, Inc. (FINRA). The Company's securities are cleared through a clearing broker-dealer. The Company does not maintain customers' security accounts, nor does it perform custodial functions related to customer securities. ## Revenue Recognition Revenue is recognized at the point-of-sale when promised services or product is transferred to customers in an amount that is reflective of what the Company expects to receive in exchange for those services. Revenue can also be recognized at the point it is received if no reasonable estimate can be determined. Revenue is reported on a gross basis. The commissions and fees are paid to the advisors for initiating the transaction. See Note 7 for further discussion of revenues. ## Basis of Presentation The Company's policy is to prepare its financial statements in accordance with accounting principles generally accepted in the United States of America. ## Cash and Cash Equivalents For purposes of the financial statements, cash and cash equivalents include cash, deposits in interest-bearing accounts, and other financial instruments with original maturities of less than three months. ## Receivable from Clearing Agent and Other Receivables The Company clears certain transactions though a clearing agent on a fully disclosed basis. Commissions and fees owed to the Company from the clearing agent have been recorded as a receivable from clearing agent. In addition, the Company has accrued certain other commissions and fees that were earned prior to year end. The Company writes off doubtful receivables in amounts equal to the estimated collection losses that will be incurred. No allowance for doubtful accounts is required for 2025 and 2024. #### Property and Equipment Property and equipment is recorded at cost and depreciated over its estimated useful lives of five to seven years using accelerated and straight-line methods. #### Income Taxes The Company has elected S corporation status under the Internal Revenue Code whereby its income is taxed to the individual stockholders; therefore, there is no provision for income taxes for the Company. Management does not believe the financial statements include any significant uncertain tax positions. {9}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 and 2024 ## (1) Organization and Significant Accounting Policies, Continued ## Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. ## Goodwill Goodwill represents the aggregate excess of the cost of assets acquired over their fair value at the date of acquisition. Each year the Company completes a goodwill impairment test. Under the impairment test, if a reporting unit's carrying amount exceeds its estimated fair value, goodwill impairment is recognized to the extent that the reporting unit's carrying amount of goodwill exceeds the implied fair value of the goodwill. Fair value of the Company was estimated using discounted cash flows and market multiples. No impairment occurred in 2025 or 2024. ## (2) Fair Value of Financial Instruments Financial instruments held by the Company include accounts receivable and accounts and commissions payable. The Company believes that the carrying amount of these financial instruments approximates their fair value. ## (3) Net Capital Requirements The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital. The Company has elected to use the basic method, permitted by the Rule, which requires that the Company maintain minimum net capital of \$50,000, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2025 and 2024, the Company's net capital was \$867,734 and \$743,333, respectively, which was \$817,734 in excess of its required net capital in 2025 and \$693,333 in excess of its required net capital in 2024. The Company's ratio of aggregate indebtedness to net capital was 0.08 to 1 and 0.08 to 1 as of December 31, 2025 and 2024, respectively. The Company qualifies under the exemption provisions of Rule 15c3-3, paragraphs (k) (1) and (k) (2) (ii), as the Company does not carry security accounts for customers or perform custodial functions relating to the customers' securities. Under the exemption, the Company is not required to maintain a reserve for the benefit of customers. ## (4) Concentrations of Credit Risk The Company maintains cash balances at several financial institutions and accounts at each institution are insured by the Federal Deposit Insurance Corporation up to \$250,000. As of December 31, 2025 and 2024, the Company's uninsured cash balances totaled \$227,051 and \$108,160, respectively. {10}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 and 2024 ## (5) Property and Equipment Property and equipment is summarized by major classifications as follows: | | 2025 | | 2024 | | |-------------------------------|------|--------|------|--------| | Office equipment | \$ | 65,116 | \$ | 65,116 | | Less accumulated depreciation | | 65,116 | | 65,116 | | | \$ | | \$ | | #### ( 6) Common Stock The authorized, issued and outstanding common stock as of December 31, 2025 and 2024 of the Company consisted of the following: | | Shares Issued and Outstanding | | | |--------------------------------------------------------------------|-------------------------------|--------|--| | | 2025 | 2024 | | | Common stock -
class A, voting, 51,500 shares
authorized | 30,141 | 30,141 | | | Common stock -
class B, non-voting, 48,500 shares
authorized | 26,257 | 26,257 | | | Total shares | 56,398 | 56,398 | | #### (7) Revenues #### Performance Obligations The following provides detailed information on the recognition of the Company's revenue from contracts with customers: #### Commission Revenue Commission revenue represents sales commissions generated by advisors for their clients' purchases of securities. The category includes commissions generated by the sale of securities on the exchanges and the sale of investment company shares. Front-end sales commissions and related clearing costs associated with trades introduced by the clearing broker-dealer are recognized on a trade date basis. Trailing commission revenue varies by investment product and is based on a percentage of the current market value of clients' investments in eligible assets and recognized over the period during which services are performed. Due to the fact that trailing commission revenue is based on the market value of investments, this variable consideration is constrained until the market value is determinable. {11}------------------------------------------------ #### Notes to Financial Statements #### December 31, 2025 and 2024 #### (7) Revenues, Continued #### Insurance Products Commissions are also recognized on the sale of insurance products. Commissions paid by the insurance carrier are based on a percentage of the premium the insurance carrier charges the policyholder. Annual trailing commissions are paid at the time the policyholder renews the contract. Variable and fixed annuities also pay a commission at the time of sale. Annuity trail revenues are based on asset value and recognized over time. Due to the fact that trailing commission revenue is based on the market value of investments this variable consideration is constrained until the market value is determinable. #### Asset-Based Revenue Asset-based revenue is generated from fee sharing arrangements with clearing broker-dealer's cash sweep programs. Cash sweep fees are generated based on advisors' clients' cash sweep accounts. The uninvested cash balances are swept into third-party money market funds for which the clearing broker-dealer receives fees. The Company receives a portion of those fees based upon the related contractual arrangement with the clearing agent. The programs include money market and margin sweep accounts. Asset-based revenue is recognized overtime. #### Revenue from Registered and Unregistered Offerings Revenue from registered or unregistered offerings represents sales concessions generated by the advisor for their clients' purchase of alternative offerings. The concessions are determined based on a percentage of the invested amount. The revenue is recognized at the point-of-sale. #### Fees Earned Fees earned include such revenue items as 12b-1 fees, solicitor fees, registered investment advisor (RIA) oversight fees, and sponsorship fees. Trailing 12b-l commission revenue is generally based on a percentage of the current market value of client eligible assets and is recognized in the period that the ongoing support is performed. Trail revenue is recognized over time. The Company receives fees from product sponsors, primarily mutual fund, annuity, and alternative companies for marketing support and sales education. The fee is generally computed as a fixed fee (point-of-sale) or a percentage of sales (over time). Solicitor fees are also generated by our affiliated RIA, Capital Investment Advisors, and revenue is recognized over time. #### Other Revenue The Company receives compensation for miscellaneous rebates such as postage and handling, IRA fees and inactive account fee rebates. Revenue is earned at the point-of-sale. {12}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 and 2024 ## (7) Revenues, Continued ## Disaggregation of Revenues The following table depicts the disaggregation of the various types of revenue generated by the Company: | | 2025 | 2024 | |---------------------|-----------------|-----------------| | Comrnission revenue | \$
334,892 | \$
314,355 | | Insurance products | 354,294 | 290,020 | | Asset-based revenue | 315,614 | 340,531 | | Fees earned | 1,096,643 | 1,023,554 | | Other revenue | 39,489 | 42,860 | | | \$
2,140,932 | \$
2,011,320 | The following table sets forth revenue disaggregated by the recognition pattern: | | 2025 | | | |---------------|-----------------|----|-----------| | Point-in-time | \$
544,673 | \$ | 471,565 | | Over time | 1,596,259 | | 1,539,755 | | | \$
2,140,932 | \$ | 2,011,320 | #### Receivables from Contracts with Customers The following presents the total of account receivable from contracts with customers: | | 2025 | 2024 | | | |--------------------------------------------|---------------|------|---------|--| | Receivables from contracts with customers: | | | | | | Beginning | \$
104,044 | \$ | 109,009 | | | Ending | 123,543 | | 104,044 | | #### (8) Retirement Plan The Company maintains a defined contribution 401 (k) profit sharing plan in accordance with applicable Internal Revenue Service guidelines. Voluntary employee participation in the plan is limited to U.S. Treasury Department Regulations. The Company contributed \$8,110 and \$7,915 in 2025 and 2024, respectively. #### (9) Related Parties The Company is related to Capital Investment Group, Inc. (CIG) by common ownership. The Company paid Capital Investment Group, Inc. \$82,000 and \$75,000 in 2025 and 2024, respectively, in management fees for the use of its office space and support staff. At December 31, 2025 and 2024, included in other receivables, is \$25,075 and \$0, respectively for expenses paid on CIG's behalf. {13}------------------------------------------------ ## Notes to Financial Statements # December 31, 2025 and 2024 ## (9).Related Parties, Continued The Company collects and pays out fees for Capital Investment Counsel, Inc. (a company related by common ownership) of \$11,760 and \$20,508 in 2025 and 2024, respectively. The Company receives fees from Capital Advisers, LLC (a company related by common ownership) for accounts under management. Total fees received in 2025 and 2024, were \$568,572 and \$482,099 respectively. ## (I 0) Off-Balance Sheet Risk Pursuant to a clearance agreement, all securities transactions are handled through a clearing broker on a fully disclosed basis. All of the customers' money balances and long and short securities positions are carried on the books of the clearing broker. In accordance with the clearance agreement, the Company is obligated for any losses the clearing broker may sustain from carrying securities transactions originated by the Company. The Company may therefore be exposed to off-balance sheet risk in the event the customer is unable to fulfill its contracted obligations. In accordance with industry practice and regulatory requirements, the Company and the clearing broker monitor the collateral available on customers' accounts. ## ( 11) Segment Reporting The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including principal transactions, agency transactions, and investment advisory. The Company has identified its chief executive officer as the chief operating decision maker (CODM), who uses revenue as well as 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 3, 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. The Company's operation 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 organization and significant accounting policies section of these financial statements. The statements of income and retained earnings on page 4 presents the segment revenue and expenses for the years ended December 31, 2025 and 2024. ## (12) Subsequent Events The date to which events occurring after December 31, 2025, the date of the most recent balance sheet, have been evaluated for possible adjustment to the financial statements or disclosure is February 24, 2026 the date the financial statements were available to be issued. {14}------------------------------------------------ #### Supplemental Schedules of Changes in Stockholders' Equity #### Years Ended December 31, 2025 and 2024 | | Common | Additional | Retained | | |----------------------------|---------------|-----------------|---------------|-----------------| | | stock | paid in capital | earnings | Total | | Balance, December 31, 2023 | \$
371,000 | \$
50,000 | \$
414,161 | \$
835,161 | | Net income for 2024 | | | 199,731 | 199,731 | | Balance, December 31, 2024 | 371,000 | 50,000 | 613,892 | 1,034,892 | | Net income for 2025 | | | 131,901 | 131,901 | | Balance, December 31, 2025 | \$
371,000 | \$
50,000 | \$
745,793 | \$
1,166,793 | {15}------------------------------------------------ # Supplemental Schedules of Computation and Reconciliation of Net Capital in Accordance with Rule 15c3-1 of the Securities and Exchange Commission ## December 31, 2025 and 2024 | | 2025 | 2024 | |------------------------------------------------|-----------------|-----------------| | Net capital: | | | | Total stockholders' equity | \$
1,166,793 | 1,034,892
\$ | | Deduct: Non-allowable assets | (290,253) | (287,361) | | Deduct: Securities haircuts | (8,806) | (4,198) | | Net capital | \$
867,734 | 743,333
\$ | | Aggregate indebtedness: | | | | Accounts and other payables | \$
2,909 | \$
1,822 | | Commissions payable | 66,451 | 56,897 | | Accrued retirement | 1,416 | 1,508 | | Total | \$
70,776 | \$
60,227 | | Net capital requirements: | | | | Broker-dealer minimum, as calculated | 50,000
\$ | \$
50,000 | | Net capital in excess of requirements | 817,734 | 693,333 | | Net capital as computed above | 867,734
\$ | \$
743,333 | | Ratio of aggregate indebtedness to net capital | 0.08 to 1 | 0.08to 1 | There are no material differences between the preceding computation and the Company's corresponding unaudited Part II of Form X-17A-5 as of December 31, 2025 and 2024. {16}------------------------------------------------ # Supplemental Schedules of Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission December 31, 2025 and 2024 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, in that the Company's activities are limited to those set forth in the condition for exemption appearing in paragraphs (k) (1) and (k) (2) (ii) of the Rule. {17}------------------------------------------------ # Supplemental Schedules of Computation and Reconciliation of Net Capital in Accordance with Rule 15c3-3 of the Securities and Exchange Commission #### December 31, 2025 and 2024 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, in that the Company's activities are limited to those set forth in the condition for exemption appearing in paragraphs (k) (1) and (k) (2) (ii) of the Rule. {18}------------------------------------------------ # BATCHELOR, TILLERY & ROBERTS, **LLP CERT£FIED PUBLIC ACCOUNTANTS** **POST OFFICE BOX 18068 RALEIGH, NORTH CAROLINA 2'7619** RONALD A, BATCHELOR WM, JAMES BLACK, JR, SCOTT E. CABANISS MICHELLE W. LEMANSKI JARED L. PILAND DAVID C. CORN, JR. **3605 GLENWOOD AVENUE,** SUITE **350 RALEIGH, NORTH CAROLINA 2'7612 TELEPHONE (919) '78'7-8212 FACSIMILE (919) '783•6'724** ## **Report of Independent Registered Public Accounting Firm** The Stockholders Capital Investment Brokerage, Inc.: We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Capital Investment Brokerage, Inc. (the "Company") identified the following provisions of 17 C.F.R. § 15c3-3(k) under which the Company claimed exemption from 17 C.F.R. § 240.15c3-3: paragraph (2)(ii) (exemption provisions), and (2) the Company stated that the Company met the identified exemption provisions throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements. We have also reviewed management's statements, included in the Exemption Statement, in which the Company stated that it is also filing the Exemption Statement because the Company's other business activities met the requirements specified in Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 (Footnote 74) throughout the year ended December 31, 2025, without exception. The Company's management is responsible for compliance with the provisions of Footnote 74 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 the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule l 5c3-3 under the Securities Exchange Act of 1934 and in Footnote 74 of the SEC release No. 34-70073. Raleigh, North Carolina February 24, 2026 {19}------------------------------------------------ # **EXEMPTION STATEMENT** Capital Investment Brokerage, Inc. ("Company") is a registered broker-dealer subject to SEC Rule 17a-5 ("Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by Rule 17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: Capital Investment Brokerage, Inc. claims an exemption from SEC Rule 15c3-3, during the year ended December 31, 2025, pursuant to paragraph k(2)(ii). Capital Investment Brokerage, Inc. met the identified exemption provisions throughout the year ended December 31, 2025 without exception. Capital Investment Brokerage, Inc. is also filing this Exemption Statement because the Company's other business activities contemplated by Footnote 74 of the SEC release No. 34- 70073 adopting amendments to 17 C.F.R. 240. l 7a-5 are limited to effecting transactions directly with mutual funds and insurance companies where the funds are payable to the issuer or its agent and not to the Company, and the Company did not directly or indirectly, hold, or otherwise owe funds or securities for or to customers, ( other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); did not carry accounts for customers; and did not carry P AB accounts ( as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Date {20}------------------------------------------------ # BATCHELOR, TILLERY & ROBERTS, **LLP CERTIFIED** PUBLIC **ACCOUNTANTS POST** OFFICE **BOX 18068 RALEIGH, NORTH CAROLINA 27619** RONALD A, BATCHELOR WM, JAMES BLACK, JR, SCOTT E, CABANISS MICHELLE W, LEMANSKI JARED L, PILAND DAVID C, CORN, JR, **3605 GLENWOOD AVENUE,** SUITE **350 RALEIGH, NORTH CAROLINA 27612 TELEPHONE (919) 787-8212 FACSIMILE (919) 783-6724** ## REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES The Board of Directors Capital Investment Brokerage, Inc.: We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2025. Management of Capital Investment Brokerage, Inc. (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Fonn SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures perfonned may not address all the items of interest to a user of this repo1t and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this repo1t. 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 listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2. Compared the Total Revenue amount reported on the Annual Audited Report Form X-17 A-5 Part III for the year ended December 31, 2025 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2025, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. {21}------------------------------------------------ The Board of Directors Page 2 We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICP A and in accordance with the standards of the Public Company Accounting Oversight Board (United States). · We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. 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. We are required to be independent of the Company and to meet our other ethical responsibilities m accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. ~JJJ°"'J~f fflu, LLP Raleigh, North Carolina February 24, 2026 {22}------------------------------------------------ ### CAPFINANCIAL SECURITIES, LLC #### Schedule of Assessment and Payments #### Year ended December 31, 2025 | Assessment for December 31, 2025 | \$
1,395 | |----------------------------------------------------|----------------| | Less: | | | Payment July 31, 2025
Payment February 23, 2026 | (651)
(744) | | Balance due March 3, 2026 | \$
None | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.