# PREFERRED CLIENT GROUP, INC. X-17A-5 (2025-12-10) — Broker-dealer annual report - Company: PREFERRED CLIENT GROUP, INC. - Form: X-17A-5 - Filed: 2025-12-10 - Period: 2025-09-30 - Accession: 0001092818-25-000002 - CIK: 1092818 - File #: 8-52005 - Type: Broker-dealer - Material weakness: No - Auditor: Phillip V. George, PLLC - Auditor location: Celeste, TX - Contact: James D. Gaberino - Phone: 214-520-0832 - Email: pcg@jdgab.net - Website: jdgab.net - Signed by: James D. Gaberino (President and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1092818/000109281825000002/x17a.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** > **ANNUAL REPORTS FORM X-17A-5 PART** Ill > > **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING 10/01 /24 | AND ENDING 09/30/25 | | |-------------------------------------------|---------------------|--| | | | | MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** # NAME oF FIRM: Preferred Client Group, Inc. TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer D Security-based swap dealer D Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 3707 Dartmouth | | {No. and Street) | | | |------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------| | Dallas | TX | | 75205 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | James D. Gaberino | 214-520-0832 | | pcg@jdgab.net | | {Name) | (Area Code -Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Phillip V. George, PLLC | (Name - if individual, state last, first, and middle name) | | | | 5179 CR 1026 | Celeste | TX | 75423 | | (Address) | {City) | (State) | (Zip Code) | | 02/24/09 | | #3366 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | 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.** | 0MB APPROVAL | | |--------------------------|--| | 0MB Number: 3235-0123 | | | Expires: Nov. 30, 2026 | | | Estimated average burden | | | hours per response: 12 | | | SEC FILE NUMBER | |-----------------| | 8-52005 | | | {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, James D. Gaberino | swear (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------|---------------------------------------------------------------------| | financial report pertaining to the firm of Preferred Client Group, Inc. | as of | **9/30** 2 202s , 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. | ASHIA MICHEL BANKS
Notary Public
STATE OF TEXAS
My Comm. Exl', 05-18-27
Notary ID # 13436606-9 | | |------------------------|------------------------------------------------------------------------------------------------------------|--| | | | | #### **This filing\*\* contains (check all applicable boxes):** - **l!i** (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - **l!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).** - **l!i** (d) Statement of cash flows. - **l!i** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - **l!i** (g) Notes to consolidated financial statements. - **l!i** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (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. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - **l!i** (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. - **l!i** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 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. - **l!i** (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.l 7a-5 or 17 CFR 240.18a-7, as applicable. - **l!i** (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. - Iii (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. - **l!i** (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. - D (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 240.17a-5(e){3) or 17 CFR 240.18a-7{d)(2), as applicable. {2}------------------------------------------------ | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | |---------------------------------------------------------|-----------|--| | | | | | FINANCIAL STATEMENTS | | | | Statement of financial condition | 2 | | | Statement of income | 3 | | | Statement of changes in stockholder's equity | 4 | | | Statement of cash flows | 5 | | | Notes to financial statements | 6 -
12 | | | Supplemental information pursuant to Rule l 7a-5 | 13 | | | | | | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 14 | | | Exemption report | 15 | | ## **CONTENTS** {3}------------------------------------------------ # **PHILLIP V. GEORGE, PLLC** CERTIFIED PUBLIC ACCOUNTANT #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Board of Directors Preferred Client Group, Inc. #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Preferred Client Group, Inc. as of September 30, 2025, the related statements of income, changes in stockholder's eq uity, and cash flows for the year then ended, and the related notes (collectively referred to as the " financial statements"). In our opinion, the financial statements present fa irly, in all material respects, the financial position of Preferred Client Group, Inc. as of September 30, 2025, and the resu lts of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Preferred Cl ien t Group, Inc. 's management. Our responsibility is to express an opinion on Preferred Client Group, Inc. 's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Preferred Client Group, Inc. in accordance with the U.S. federal securities laws and the applica ble rules and regu lations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatem ent, whether due to error or fraud . Our audit included performin g procedures to assess the risks of material misstatement of the financial statements, whether due to error or fra ud, and performing procedures that respond to those ri sks. Such procedures included examining, on a test bas is, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well <1s eva luating the overall presentation of the financial statements. We believe that our <1udit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplemental information contained in Schedule I has been subjected to audit proced ures performed in conjunction with the audit of Preferred Client Group lnc.'s financial statements . The supplemental information is the responsibility of Preferred Client Group, Inc. ' s management. Our audit procedures included determining whether the supplemental informat ion reconciles to the fi nancial statements or the underl ying accounting and other record s, as applicable, and performing procedtll"es to test the completeness and accuracy of the information presented in the supplemental information. In lorrning our opinion on the supplemental information, we evaluated whether the supplemental inform ation. including its form and content, is presented in conform ity with 17 C.F.R. §240. I 7a-5. In our opinion, the supp lemental information contained in Schedu le I is fairly stated, in all material respects. in relation to the financial statements as a ~ VJ\,~, pui PHILLIP V. GEORGE, PLLC We have served as Preferred Client Group, Inc. 's auditor since 2002. Celeste, Texas November 17, 2025 ![](_page_3_Picture_14.jpeg) {4}------------------------------------------------ ## **PREFERRED CLIENT GROUP, INC. Statement of Financial Condition September 30, 2025** ## **ASSETS** | Cash | \$
30,073 | |-------------------------------------------------------|--------------| | Commissions receivable | 43,967 | | Accrued interest receivable | 584 | | Prepaid expenses | 1,241 | | Clearing deposit -
cash | 48,018 | | Clearing deposit -
debt securities | 70,023 | | TOT AL ASSETS | \$ 193,906 | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities | | | Accrued expenses | \$
53,283 | | Accrued compensation and related costs | 22,328 | | Total liabilities | 75,611 | | Stockholder's Equity | | | Common stock, \$.10 par value, 200 shares authorized, | | | issued and outstanding | 20 | | Additional paid-in capital | 111,567 | | Retained earnings | 6,708 | | TOT AL STOCKHOLDER'S EQUITY | 118,295 | | TOTAL LIABJLITIES AND STOCKHOLDER'S EQUITY | \$ 193,906 | {5}------------------------------------------------ ## **PREFERRED CLIENT GROUP, INC. Statement of Income Year Ended September 30, 2025** ### **Revenue** | Securities commissions | \$
578,669 | |-----------------------------------------|---------------| | Mutual fund commissions | 25,536 | | Interest | 29,093 | | TOT AL REVENUE | 633,298 | | Expenses | | | Compensation and related costs | 357,639 | | Clearing charges | 37,297 | | Occupancy and equipment costs | 120,730 | | Professional fees and contract services | 45,497 | | Communications | 13,011 | | Regulatory fees | 4,227 | | Auto and entertainment | 54,640 | | Other expenses | 1,982 | | TOT AL EXPENSES | 635,023 | | Net loss before other loss | (1,725) | | Other Loss | | | Realized loss on debt securities | (17) | | Unrealized loss on debt securities | (861) | | Total other loss | (878) | | NET LOSS | \$
(2,603) | {6}------------------------------------------------ ## **PREFERRED CLIENT GROUP, INC. Statement of Changes in Stockholder's Equity Year Ended September 30, 2025** | | Common
Common
Shares
Stock | | Additional
Paid-in
Capital | Retained
Earnings | | Total | | | |-----------------------------------|-------------------------------------|----|----------------------------------|----------------------|----|---------|----|---------| | Balances at | | | | | | | | | | September 30, 2024 | 200 | \$ | 20 | \$ 111
,567 | \$ | 9,311 | \$ | 120,898 | | Net loss | | | | | | (2,603) | | (2,603) | | Balances at
September 30, 2025 | 200 | \$ | 20 | \$ 111
,567 | \$ | 6,708 | \$ | 118,295 | {7}------------------------------------------------ ## **PREFERRED CLIENT GROUP, INC. Statement of Cash Flows Year Ended September 30, 2025** | Cash flows from operating activities: | | |----------------------------------------------------|---------------| | Net loss | \$
(2,603) | | Adjustments to reconcile net loss to net cash | | | used in operating activities: | | | Unrealized loss on debt securities | 861 | | Realized loss on debt securities | 17 | | (Increase) decrease in operating assets: | | | Commissions receivable | 2,224 | | Accrued interest receivable | 291 | | Prepaid expenses | (1 ,140) | | Clearing deposit -
cash | (40,043) | | Increase (decrease) in operating liabilities: | | | Accrued expenses | 49,426 | | Accrued compensation and related costs | ,185)
(51 | | Net cash used in operating activities | (42,152) | | Cash flows from investing activities: | | | Proceeds from maturity of debt securities | 125,000 | | Purchase of debt securities | (90,000) | | Net cash provided by investing activities | 35,000 | | Net change in cash | (7,152) | | Cash at beginning of year | 37,225 | | Cash at end of year | \$
30,073 | | Supplemental Disclosures of Cash Flow Information: | | | Cash paid during the year for: | | | Interest | \$ | | Income taxes -
state | \$ | {8}------------------------------------------------ #### **Note 1 - Nature of Business and Summary of Significant Accounting Policies** Nature of Business: Preferred Client Group, Inc. (the Company) was organized in June 1999 as a Texas corporation. The Company is a broker/dealer in securities registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). The Company operates under the exemptive provisions of Rule 15c3-3(k)(2)(ii) of the Securities Exchange Act of 1934, and accordingly, is exempt from the remaining provisions of that Rule. The Company does not hold customer funds or securities. The Company's operations consist primarily of providing securities brokerage services to individuals located in the state of Texas. Significant Accounting Policies: #### Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the 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. #### Segment Reporting The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of securities brokerage services. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital, 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 distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Segment financial information is identical to that presented in the accompanying financial statements. {9}------------------------------------------------ ### **Note 1 - Nature of Business and Summary of Significant Accounting Policies (continued)** #### Fair Value of Financial Instruments Debt securities held in a clearing deposit account are for investment purposes, and are recorded at fair value in accordance with F ASB ASC 820, *Fair Value Measurements and Disclosures.* The increase or decrease in fair value is credited or charged to operations. The Company's other financial asset and liability amounts reported in the statement of financial condition are short-term in nature and approximate fair value. #### Revenue Recognition #### *Securities Commissions* The Company buys and sells secunt1es on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company may charge a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. Securities commissions also includes other revenue related to customer accounts which is recorded on the trade date. #### *Mutual Fund Commissions* The Company enters into arrangements with pooled investment vehicles (funds) to distribute shares to investors. The Company may receive distribution fees paid by the funds up front, over time, upon the investor's exit from the fund (that is, a contingent deferred sales charge), or as a combination thereof. The Company believes that its performance obligation is the sale of securities to investors and as such this is fulfilled on the trade date. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe it can overcome this constraint until the market value of the funds and the investor activities are known, which are either monthly or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. {10}------------------------------------------------ ### **Note 1 - Nature of Business and Summary of Significant Accounting Policies (continued)** *(* **concluded)** #### Income Taxes The Company has elected to be taxed under the provisions of Subchapter S of the Internal Revenue Code, resulting in all the federal tax liabilities or benefits relating to the operations of the Company passing through to the individual shareholder. The Company is also a member of a combined group subject to state income taxes. #### **Note 2 - Transactions with Clearing Broker/Dealer** The Company has an agreement with a national clearing broker/dealer to provide clearing, execution and other related services. The agreement requires the Company to maintain a minimum of \$100,000 as a deposit in an account with the clearing broker/dealer. #### **Note 3 - Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule l 5c3-1 ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At September 30, 2025, the Company had net capital of \$112,709 which was \$107,668 in excess of its net capital requirement of \$5,041. The Company's net capital ratio was 0.67 to 1. #### **Note 4 - Fair Value/ Debt Securities** F ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by F ASB ASC 820, are used to measure fair value. {11}------------------------------------------------ ### **Note 4 - Fair Value/ Debt Securities (continued)** The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - *Level 1.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. - *Level 2.* Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly. - *Level 3.* Unobservable inputs for the asset or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at September 30, 2025. Debt securities: Valued by the Company using the actual bid prices of similar secunt1es. When bid prices are not available for similar securities, the Company uses market observable inputs in determining the valuation for a security based on underlying characteristics of the debt instrument. {12}------------------------------------------------ #### **Note 4 - Fair Value/ Debt Securities (continued) (concluded)** The following table sets forth by level, within the fair value hierarchy, the Company's assets at fair value as of September 30, 2025 | | Level 1 | | Level2 | Level 3 | | | Total | | |-----------------|---------|--|-----------|---------|--|----|--------|--| | Debt Securities | \$ | | \$ 70,023 | \$ | | \$ | 70,023 | | Debt securities consist of one municipal bond, which matures in August 2048 and bears interest at 5%. Cost and fair values of the debt securities at September 30, 2025, are as follows: | Amortized
Cost | | Gross
Unrealized
Gains | Gross
Unrealized
Losses | | Fair
Value | | |-------------------|--------|------------------------------|-------------------------------|-------|---------------|--------| | \$ | 77,615 | | \$ | 7,592 | \$ | 70,023 | There were no transfers between level 1 and level 2 during the year. There were no assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3) during the year ended September 30, 2025. ## **Note 5 - Related Party Transactions/Economic Dependency/Concentration of Revenue and Services** The Company and other entities are under the control of the sole shareholder. The existence of that control creates operating results and financial position different than if the entities were autonomous. The sole shareholder generated approximately 84% of the Company's total revenue and accounted for approximately 25% of the Company's compensation and related costs for the year ended September 30, 2025. The Company is economically dependent upon the sole shareholder's service due to the concentration of revenue generated. The Company and the sole shareholder have entered • into an expense sharing agreement (Agreement) effective January 1, 2017 and most recently amended as of November 1, 2024. The Agreement shall continue until canceled by either party. Under the Agreement, the sole shareholder and other related entities controlled by the sole shareholder (Related Parties) provide the Company with office facilities and certain services. {13}------------------------------------------------ ### **Note 5 - Related Party Transactions/Economic Dependency/Concentration of Revenue and Services (continued) (concluded)** The sole shareholder and Related Parties allocate a pro-rata portion of such facilities and services provided on behalf of the Company. Amounts allocated to the Company under the Agreement are currently \$18,430 per month and totaled \$215,710 for the year, of which \$52,833 is payable at September 30, 2025, and included in accrued expenses in the accompanying statement of financial condition. The amounts allocated were \$120,730 in occupancy and equipment costs, \$29,760 in contract services, \$10,580 in communications, and \$54,640 in auto and entertainment, which is included in other expenses in the accompanying statement of income. The Agreement was not consummated on terms equivalent to arms-length transactions. #### **Note 6 - Off-Balance-Sheet Risk** In the normal course of business, the Company's customer activities involve the execution and settlement of customer securities transactions on a fully disclosed basis with its clearing broker-dealer. The clearing broker-dealer carries accounts of the Company's customers and is responsible for execution, collection and payment of funds, and receipt and delivery of securities relative to customer transactions. These transactions may expose the Company to off-balance-sheet risk in the event the customer or other broker is unable to fulfill their contractual obligations wherein the clearing broker-dealer may charge any losses it incurs to the Company. The worthiness of its customers and that customer transactions are executed properly by the clearing broker-dealer. #### **Note** 7 - **Concentration of Credit Risk** The Company has \$162,008 or approximately 84% of its total assets, in commissions receivable and clearing deposit due from or held by the Company's cl€aring broker/dealer. The Company has \$70,023 or approximately 36% of its total assets, in a debt security issued by Texas municipality, which is held by the clearing broker/dealer as a part of the Company's required clearing deposit. #### **Note 8 - Contingencies** There are currently no asserted claims or legal proceedings against the Company, however, the nature of the Company's business subjects it to various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such action against the Company could have an adverse impact on the financial condition, results of operations, or cash flows of the Company. {14}------------------------------------------------ #### **Note 9 - Subsequent Events** Management has evaluated the Company's events and transactions that occurred subsequent to September 30, 2025, through November 17, 2025, the date which the financial statements were available to be issued. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of September 30, 2025. {15}------------------------------------------------ #### **Schedule** I #### **PREFERRED CLIENT GROUP, INC. Supplemental Information Pursuant to Rule** I **7a-5 September 30, 2025** #### **Computation of Net Capital** | Total stockholder's equity qualified for net capital | \$
118,295 | |------------------------------------------------------|----------------| | Deductions and/or charges
Non-allowable assets: | | | Accrued interest receivable | 584 | | Prepaid expenses | 1,241 | | Total deductions and/or charges | 1,825 | | Net capital before haircuts on securities | 116,470 | | Haircuts on securities | | | Clearing deposit - cash | 960 | | Clearing deposit - debt securities | 2,801 | | Total haircuts on securities | 3,761 | | Net Capital | \$
112,709 | | Aggregate indebtedness | | | Accrued expenses | \$
53,283 | | Accrued compensation and related costs | 22,328 | | Aggregate indebtedness | \$
75,6 1 l | | Computation of basic net capital requirement | | | Minimum net capital required (greater of\$5,000 or | | | 6 2/3% of aggregate indebtedness) | \$
5,041 | | Net capital in excess of minimum requirement | \$
I 07,668 | | Ratio of aggregate indebtedness to net capital | 0.67 to I | #### **Reconciliation of Computation of Net Capital** • There are no material differences between the above computation and the Company's corresponding unaudited Part II of Form **X-17 A-5** as of September 30, 2025. #### **Statement Regarding Changes in Liabilities Subordinated to Claims of General Creditors** No statement is required as no subordinated liabilities existed at any time during the year. #### **Statement Regarding the Reserve Requirements and Possession or Control Requirements** The Company operates pursuant to section (k)(2)(ii) exempti ve provisions of Rule I 5c3-3 of the Securities Exchange Act of 1934. The Company does not hold customer funds or secunt1es. Under these exemptive provisions, the Computation of Determination of the Reserve Requirements and Information Relating to the Possession or Control Requirements are not required. See accompanying report of independent registered public accounting firm. {16}------------------------------------------------ # **PHILLIP V. GEORGE, PLLC** CERTIF IED P UBLIC ACCOUNTANT ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Board of Directors Preferred Client Group, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Preferred Client Group, Inc. identified the fol lowing provision of 1 7 C. F. R. § l 5c3-3(k) under which Preferred Client Group, Inc. claimed the following exemption from 17 C.F.R. §240.15c3-3:(2)(ii) (exemption provision) and (2) Preferred Client Group, Inc . stated that Preferred Client Group, Inc. met the identified exemption provision throughout the most recent fiscal year without exception. Preferred Client Group, Inc. 's management is responsible for compliance with the exemption provision and its statements. Our review was conducted in accordance with the standards or the Public Company Accounting Oversight Board (United States) and , accordingly, included inquiries and other required procedures to obtain evidence about Preferred Client Group, lnc. 's compli ance with the exemption provision. 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 provision set forth in paragraph (k)(2)(ii) of Rule I 5c3-3 under the Securiti es Exchange Tiv.~. Pou PHILLIP V. GEORGE, PLLC Celeste, Texas November 17, 2025 ![](_page_16_Picture_9.jpeg) {17}------------------------------------------------ ## PREFERRED CLIENT GROUP, INC. 3707 Dartmouth Avenue Dallas, TX 75205 #### PREFERRED CLIENT GROUP, INC. EXEMPTION REPORT Preferred Client Group, Inc. (the "Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission (17C.F.R./240.17a-5. "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by l 7.C.F.R./240.l 7a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 C.F.R. / 240.15c-c3 under the following provisions of 17 C.F.R. /240.15c3-3 (k):(2)(ii). - (2) The Company met the identified exemption provisions in 17 C.F.R./240.15c3-3 (k) throughout the most recent fiscal year without exception. #### PREFERRED CLIENT GROUP, INC. I, James D. Gaberino, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. t and Financial Operations Principal Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.