# U.S. INVESTORS, INC. X-17A-5 (2022-03-29) — Broker-dealer annual report
- Company: U.S. INVESTORS, INC.
- Form: X-17A-5
- Filed: 2022-03-29
- Period: 2021-12-31
- Accession: 0001069951-22-000002
- CIK: 1069951
- File #: 8-51260
- Type: Broker-dealer
- Material weakness: No
- Auditor: RW Group LLC
- Auditor location: Kenneth Square, PA
- Contact: Dixie Butler
- Phone: 5408851011
- Email: 108@usadvisors.biz
- Website: usadvisors.biz
- Signed by: Dixie Butler (President)
Original filing: https://www.sec.gov/Archives/edgar/data/1069951/000106995122000002/auditshort2.pdf
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#### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
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8-51260
# **ANNUAL REPORTS FORM X-17A-5 PART** Ill
**FACING PAGE**
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | |
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| FILING FOR TH E PE RIOD BEGINNING O 1/01/2021 | | | | AND EN DING 12/31/2021 |
| | MM/DD/YY | | | MM/DD/YY |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAM E o FFI RM : U.S. Investors, Inc. | | | | |
| TYPE OF REG ISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dea ler | D Security-based swap deale r | | | D M ajor security-based swap participant |
| ADDR ESS OF PRINCIPAL PLACE OF BUSINESS : (Do not use a P.O. box no.) | | | | |
| 4601 N. Fairfax Dr., Suite 122 | | | | |
| | (No. and Street) | | | |
| Arlington | VA | | | 22203 |
| (City) | (State) | | | (Zip Code) |
| PERSON TO CONTACT W ITH REGARD TO THIS FILI NG | | | | |
| Dixie Butler | 540-885-1011 | | | 108@usadvisors.biz |
| (N ame) | (Area Code -Telephone Number) | | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| INDEPENDENT PUBLI C ACCOUNTANT w hose reports are co ntained in t his fi ling* | | | | |
| RW Group LLC | | | | |
| | (Name - if individua l, state last, first, and middle name) | | | |
| 400 Old Forge Lane | Kenneth Square | | PA | 19348 |
| (Address) | (City) | | (State) | (Zip Code) |
| 4/23/2010 | | 5020 | | |
| | | | | {PCAOB Reg;,t,at;oa N"mbec, ;1 appl.cable) I |
| | FOR OFFICIAL USE ONLY | | | |
| * Claims fo r exemption from the requirement that the annual reports be covered by the reports of an independent public
account ant 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.**
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#### OATH OR AFFIRMATION
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financial report PJ:rtaining to the firm of U.S. Investors, Inc. |
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partner, office;,l;ector, or equivale~rr'son, a ~ffl~~./n~~;;~s any proprietary interest in any account classified solely |
| | as that of a customer.
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| | This filing** contains (c eek all applicable boxes): |
| | ~ (a) Statement of financial condition . |
| | ~ (b) Notes to consolidated statement of financial condition. |
| D | (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 | (d) Statement of cash flows. |
| D | (e) Statement of changes in stockholders' or pa rtners' or sole proprietor's equ ity. |
| D | (f) Statement of changes in liabilities subord inated to claims of cred itors. |
| D | (g) Notes to consolidated financial statements. |
| D | (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. |
| D | (i) Computation of tangible net worth under 17 CFR 240.18a-2. |
| D | {j} Computation for determination of customer reserve requ irements pursuant to Exh ibit A to 17 CFR 240.15c3-3. |
| D | (k) Computation for determination of security-based swap reserve requ irements pursuant to Exhibit B t o 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. |
| D | (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. |
| D | (o) Reconciliations, including appropriate explanations, of the FOCUS Report w ith computation of net capital or tangible net |
| | worth under 17 CFR 240.15c3-1, 17 CFR 240.lSa-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 appl icable, if material differences exist, or a statement t hat no material differences |
| | exist. |
| D | {p} Summary of financial data for subsidiaries not conso lidated in the statement of financia l cond ition. |
| | ~ (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 appl icable. |
| | □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. |
| | |
| l!!!i | (t) Independent public accountant's report based on an examination of the statement of financial condition. |
| D | (u) Independent public accountant's report based on an examination of the financial report or financia l statements under 17 |
| | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. |
| D | (v) Independent public accountant's report based on an examination of certa in stateme nts in t he compliance report under 17 |
| | CFR 240.17a-5 or 17 CFR 240.18a-7, as appl icable. |
| D | (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 |
| | CFR 240.lSa-7, as applicable. |
| | □ (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 |
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a statement that no material inadequacies exist, under 17 CFR 240.17a-12{k). |
| D | (z) Other: -
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#### U.S. INVESTORS, INC.
### STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2021
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## U.S. INVESTORS, INC. STATEMENT OF FINANCIAL CO DITION AND I DEPENDE T AUDITORS' REPORT DECEMBER 31, 2021
#### CO TENTS
| | PAGE |
|----------------------------------|------|
| INDEPENDENT AUDITORS' REPORT | 1 |
| FINANCIAL STATEMENTS | |
| Statement of Financial Condition | 2 |
| Notes to Financial Statements | 3-4 |
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#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIR M**
To the Board of Directors of U.S. Investors, Inc.
#### **Opinion on the Financial Statement**
We have audited the accompanying statement of financia l condition of U.S. Investors, Inc. as of December 31, 2021, and the related notes (collectively referred to as the financial statement). In our opinion, t he statement of financial condition presents fa irly, in all material respects, the financial position of U.S. Investors, Inc. as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
This financial statement is the responsibil ity of U.S. Investors, lnc.'s management. Ou r responsibi lity is to express an opinion on U.S. Investors, lnc.'s financia l statement based on ou r audit. We are a public accounting firm registered with th~ Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to U.S. Investors, Inc. in accordance with the U.S. federa l securities law and the applicable rules and regu lations of the Securities and Exchange Comm ission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the aud it to obtain reasonable assurance about whether the financial statement is free of materia l misstat ement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over fina ncial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence support ing the amounts and disclosures in the statement of financial posit ion, assessing the accou nting principles used and signifi cant estimates made by management, as well as eva luating the overall statement of fi nancial posit ion presentation . We believe that our audit provides a reasonable basis for our opinion.
We have served as U.S. Investors, lnc.' s auditor since 2015. Kennett Square, Pennsylvania March 22, 2022
400 Old Forge Lane Su ite 401 Kennett Square, PA 19348-1 914 Phone: 610-713-8208 Fax : 610-807-0370 www.rwgroupllc.com
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### U.S. I VESTORS, I C. STATEME T OF FINA CIAL CONDITION AS OF DECEMBER 31 , 2021
| ASSETS | |
|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
| Cash and cash equivalents
Accounts Receivable
Deposits | 28,516
\$
5,700
72 |
| Total Assets | 34,288
\$ |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| LIABILITIES
Accounts payable and other accrued liabilities
Accrued Audit Expense | 5,800
\$
8 760 |
| Total Liabilities | \$
14,560 |
| STOCKHOLDERS ' EQUITY
Common Stock (no par value, 1500 authorized
100 shares issued and outstanding)
Retained Earnings | \$
20,000
(273) |
| Total Stockholders' Equity | 19,727
\$ |
| Total Liabilities and Stockholders'Equity | 34,287
\$ |
See accompanying Notes to Financial Statements
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### **U.S. INVESTORS, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021**
# **NOTE 1 - ORGANIZATION**
U.S. Investors, Inc. (Company) is a securities broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Jndustry Regulatory Authority (FIN RA).
### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and confonn to general practices within the brokerage industry.
**Revenue Recognition** - Securities transactions and related commissions are recorded on a trade date basis.
**Use of Estimates** - The preparation of financial statements in confonnity with general accepted accounting principles requires management to make estimates and assumptions. This will affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates.
**Cash and Cash Equivalents** - Cash and cash equivalents consisted of cash on deposit with established federally insured financial institutions. For purposes of the statement of cash flows, the Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents.
### **NOTE 3 - INCOME TAXES**
The Company has elected to file income tax returns as a subchapter S Corporation as defined in the Internal Revenue Code. Generally, an S Corporation is not subject to income taxes but rather, items of income, loss, deduction and credit pass through to stockholders in determining their individual income tax liability.
The Company complies with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes which require an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis 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.
ASC 740 provides guidance for how unce1iain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to detennine whether the tax positions are "morelikely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the morelikely-than-not threshold would be recorded as tax benefit or expense in the current year. In general, the prior three year's tax returns filed with various taxing agencies are open to examination.
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### **U.S. INVESTORS, INC. NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2021**
### **NOTE 4 - NET CAPITAL REQUIREMENTS**
As a broker-dealer, the Company is subject to the net capital rule adopted and administered by the Financial Industry Regulatory Authority and the Securities and Exchange Commission. This ru le is designed to require a broker-dealer to maintain a minimum amount of net capital, as defined, and a minimum ratio of aggregate indebtedness, as defined, to net capital. Under this rule, the ratio of aggregate indebtedness to net capital cannot exceed 15 to 1. The Company's aggregate indebtedness to net capital as of December 31, 2021, was .74 to 1 and the Company had net capital of \$19,656 which was \$14,656 in excess of its required net capital of \$5,000.
#### **NOTE 5 - OTHER REGULA TORY REQUIREMENTS**
The firm limits its business activities to the purchase, sale and redemption of shares of registered investment companies. Securities of customers were not accepted for safekeeping. The company does not routinely accept customer's funds and any funds sent to the company, which consisted solely of checks payable to registered investment companies, were promptly remitted. The company is therefore exempt from the customer reserve requirements of SEC rule 15c3-3 under section (k)(l).
#### **NOTE 6-RELATED PARTY TRANSACTIONS**
The Company shares office space with Butler Financial, Inc. (BF!) and other businesses also owned by Dixie Butler who is also the sole owner of the Company. BFI provides almost all of the office expenses and services for the Company, including rent, telephone, equipment and supplies. The Company does not reimburse BFI because management believes its proportional share of the expenses is not material.
The Company has an agreement with its sole registered representative, who is also the sole shareholder of BFI, whereby the Company receives an annual fee from the representative . The amount is determined annually. For the year ended December 31 , 2021 the fee received was \$ I 7,000 and is included in other income.
At December 31 , 2021 there were no amounts due to or from the Company and its related parties.
#### **NOTE** 7 - **SUBSEQUENT EVENTS**
Management has evaluated subsequent events through March 22, 2022, the date on which the financial statements were available to be issued. No events have occurred since the balance sheet date that would have material impact on the financial statements.
#### **NOTE 8-STATEMENT RELATING TO REQUIREMENT OF RULE 17a-5(d)(4)**
There were no differences existing between the computations of net capital under rule l Sc3-1 in this report and such computations in the respondent's most recent unaudited filing.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.