# TRADEPRO SECURITIES,INC. X-17A-5 (2023-03-31) — Broker-dealer annual report - Company: TRADEPRO SECURITIES,INC. - Form: X-17A-5 - Filed: 2023-03-31 - Period: 2022-12-31 - Accession: 0001103226-23-000003 - CIK: 1103226 - File #: 8-52282 - Type: Broker-dealer - Material weakness: No - Auditor: Jesser, Ravid, Jason, Basso & Farber, LLP - Auditor location: Chicago, IL - Contact: Stephen Cass - Phone: 720-937-7552 - Signed by: Stephen Cass (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1103226/000110322623000003/TradeProAudited20221.pdf --- {0}------------------------------------------------ **TRADEPRO SECURITIES, INC.** **Annual Financial Statements Year Ended December 31, 2022** **Confidential Treatment Requested** {1}------------------------------------------------ | FOR OFFICIAL USE ONLY | | | | | | |--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | of Regl�ratioa with PCAOB )(if appiica blel | | {PCAOB Re�,tratioo N,mbec, if applicable) | | | | | | 851 | | | | | | | | 60606
(Zip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | stephen@tradeprc | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | (Zip Code] | | | | | | | 30044 | | | | | (No. and Street) | | | | | | | 340 CONGRESS PKWY. | | | | | | | | | | | | | | D Check here if respondent is also an OTC derivatives dealer | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | | | | | | | | | | | | | | MM/DD/YY | | MM/DD/YY | | | | | 01/01/2022 | | 12/31/2022 | | | | | | | | | | | | FACING PAGE | | | | | | | PART Ill | | | | | | | FORM X-17A-5 | | 8-52282 | | | | | | | SEC FILE NUMBER | | | | | Washington, D.C. 20549 | | Estimated average burden
hours per response: 12 | | | | | UNITED STATES | | 0MB Number: 3235-0123
Expires: Oct. 31, 2023 | | | | | | ANNUAL REPORTS
□ Security-based swap dealer
GA
(State)
305-446-4800
(Area Code -Telephone Number)
150 N. Wacker St. #3100
Chicago
(City) | SECURITIES AND EXCHANGE COMMISSION
Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
AND ENDING
A. REGISTRANT IDENTIFICATION
TRADE PRO SECURITIES INC.
□ Major security-based swap participant
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
(Email Address)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Jesser, Ravid, Jason, Basso & Farber, LLP
(Name - if individual, state last, first, and middle name)
IL
(State) | | | | 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, **Stephen Cass** swear (or affirm} that, to the best of my knowledge and belief, the financial report pertaining to the firm of **TradePro Securities, Inc.** as of \_ 1 \_ 2 \_ / \_ 3 \_ 1 \_\_\_\_\_\_\_\_\_\_ \_, 2� is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_3.jpeg) # **This filing\*\* contains (check all applicable boxes):** - � **(a)** Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - � (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - � (d) Statement of cash flows. - � (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - I!!! (g) Notes to roi+solidated financial statements. - I!!! (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. - � (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. - I!!! (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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. - 'ii (q) Oath or affirmation in accorda nee with 17 CFR 240.17a-5, 17 CFR 240. l 7a-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. - Iii (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. - � (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. - D (v} Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - � (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-1e 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: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ Signature: Title: **PresidenUCFO** *\*\*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.* {3}------------------------------------------------ # **TradePro Securities,** Inc. **Annual Financial Statements Index Year Ended December 31, 2022** | | Page | |--------------------------------------------------------------------------------------------------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm on Financial Statements | 1-2 | | Financial Statements: | | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Changes in Stockholders' Equity | 5 | | Statement of Cash Flows | 6 | | Notes to the Financial Statements | 7-11 | | Supplemental Financial Information: | | | Schedule I -
Computation of Net Capital under Rule 15c3-1 of the
Securities and Exchange Commission | 12 | | Schedule II -
Computation for Determination of Reserve Requirements under
Rule 15c3-3 of the Securities and Exchange Commission | 13 | | Schedule Ill -
Information relating to Possession or Control Requirements under
Rule 15c3-3 of the Securities and Exchange Commission
# | 14 | | Information regarding Exemption from Rule 15c3-3: | | | Report of Independent Registered Public Accounting Firm
on Exemption Report | 15 | | Exemption Report under Rule 17a-5(d)(4) of the Securities and
Exchange Commission | 16 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **150 N. Wacker Drive, Suite 3100 Chicago, IL 60606** **OFFICE: (312} 782•4710 FAX: (312) 782•4711** # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENTS To the Board of Directors and Stockholders of TradePro Securities, Inc. Lawrenceville, GA # **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of TradePro Securities, Inc. as of December 31, 2022, the related statements of operations, changes in stockholders' equity, and cash flows for the year 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 TradePro Securities, Inc. as of December 31, 2022, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** These financial statements are the responsibility of TradePro Securities, lnc.'s management. Our responsibility is to express an opinion on TradePro Securities, lnc.'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 TradePro Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial 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 audit 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 audit provides a reasonable basis for our opinion. ### **Auditors' Report on Supplemental Information** The supplemental information contained in Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission, Schedule II - Computation for Determination of Reserve Requirements Under Rule 15c3-1 of the Securities and Exchange Commission, and Schedule Ill - Information Relating to Possession and Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission (collectively referred to as the "supplemental schedules") have been subjected to audit procedures performed in conjunction with the audit of TradePro Securities, lnc.'s financial statements. The supplemental information is the responsibility of TradePro Securities, lnc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the {5}------------------------------------------------ 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. §240.17a-5. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as TradePro Securities, lnc.'s auditor since 2022. Chicago, IL March 30, 2023 {6}------------------------------------------------ # **TradePro Securities, Inc. Statement of Financial Condition December 31, 2022** | Cash and cash equivalents
614,209
\$
Due from clearing broker
1,091,660
Deposits with clearing brokers
243,524
Prepaid expenses
35,000
Deferred tax asset
397,000
Total Assets
2,381,393
\$
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses
1,064,917
\$
Total Liabilities
1,064,917
Stockholders' equity:
Common stock, no par value, 190 million shares
authorized; 20,474,379 shares issued and outstandi
646,000
Additional paid-in capital
5,783,171
Accumulated deficit
(5,112,695)
Total Stockholders' equity
1,316,476
Total Liabilities and Stockholders' Equity
2,381,393 | Assets | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | \$ | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # **TradePro Securities, Inc. Statement of Operations Year Ended December 31, 2022** | Revenue: | | |------------------------------|-----------------| | Riskless principal trading | \$
3,923,735 | | Commissions | 4,716,274 | | Fees - Services | 119,667 | | Fees -
Underwriting | 246,221 | | Interest Income | 17 | | Other | | | Total Revenue | 9,005,914 | | Expenses: | | | Commission expense | 212,481 | | Salaries and benefits | 488,961 | | Clearing and floor brokerage | 4,442,705 | | Exchange fees | 1,636,176 | | Professional fees | 116,238 | | Occupancy | 36,000 | | Data service | 105,939 | | Outside Services | 1,244,133 | | Regulatory | 54,722 | | Communication and technology | 14,065 | | Office expense | 13,248 | | Interest Expense | 320 | | Other | 4,889 | | Total Expenses | 8,369,877 | | Deferred tax benefit | 397,000 | | Net Profit | \$
1,033,037 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ### **Trade Pro Securities, Inc. Statement of Changes in Stockholders' Equity Year Ended December 31, 2022** | | | | | | Additional | | | |--------------------------------------------------|-----------------------|----------------------|-----------|-------------------|-------------|---------------|--------------| | | Common | | Preferred | | Paid in | kcumulated | | | | Shares | .Amount | Shares | .Amount | Capital | Deficit | Total | | Stockholders' Equity, January 1, 2022 | | 3,347,500 \$ 345,000 | | 30,100 \$ 301,000 | \$5,788,812 | \$(6,145,732) | \$ 289,080 | | Converted from Preferred Shares to Common Shares | 17,126,879 | 301,000 | (30,100) | (301,000) | (5,641) | | (5,641) | | Net Profit | | | | | | 1,033,037 | 1,033,037 | | | | | | | | | | | Stockholders' Equity, December 31, 2022 | 20,474,379 \$ 646,000 | | | \$ | \$5,783,171 | \$(5,112,695) | \$ 1,316,476 | The accompanying notes are an integral part oflhese financial statements. {9}------------------------------------------------ # **TradePro Securities, Inc. Statement of Cash Flows Year Ended Decerrber 31, 2022** | Cash Flows from Operating Activities: | | |----------------------------------------------------------------------------------|-----------------| | Net Profit | \$
1,033,037 | | Adjustments to reconcile net profit to net cash provided by operating activities | | | Changes in operating assets and liabilities: | | | Increase in Deposits with Clearing Brokers | (68,524) | | Increase in Due from Clearing Broker | (847,046) | | Increase in Prepaid expenses | (35,000) | | Increase in Deferred tax asset | (397,000) | | Increase in Accounts payable and accrued expenses | 805,832 | | Net cash provided by operating activities | 491,299 | | Cash Flows from Financing Activities: | | | Reorganization of preferred to common shares | (5,641) | | Net cash used in financing activities | (5,641) | | Net Increase in Cash and Cash Equivalents | 485,658 | | Cash and Cash Equivalents, Beginning of Year | 128,551 | | Cash and Cash Equivalents, End of Year | \$
614,209 | | Supplemental Cash Flow Information | | | Cash paid for income taxes | \$ | | Cash paid for interest
Non-Cash Financing Activities: | \$
320 | | Conversion of preferred to common shares | (301,000) | | Conversion to common shares from preferred | \$
301,000 | | | \$ | | | | The accompanying notes are an integral part of these financial statements. {10}------------------------------------------------ ### **1. Nature of Operations** TradePro Securities, Inc. (the "Company"), a Florida Corporation, was organized on June 10,1999 as Southern Trust Securities, Inc. and filed a name change in 2022. The Company is registered as a broker-dealer with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority ('FINRA") and the Securities Investor Protection Corp. ("SIPC"). The Company is an introducing broker-dealer clearing customer trades on a fully disclosed basis through the clearing firms (the "Clearing Brokers'). Under this basis, the Company forwards all customers' transactions to another broker-dealer who carries the customers' accounts. The Company's operations also consist of providing investment banking services. ### **2. Summary of Significant Accounting Policies** # Basis of Presentation The accounting policies and reporting practices of the Company conform to the predominant practices in the broker-dealer industry and are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). ### Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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. ### Cash and Cash Equivalents The Company considers short-term interest-bearing investments with initial maturities of three months or less held at a bank to be Cash Equivalents. Such instruments held in a brokerage account are considered a receivable and are included in Due from Clearing Broker on the Statement of Financial Condition. ### Government and Other Regulation The Company's business is subject to significant regulation by various governmental agencies and selfregulatory organizations. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the applicable requirements of those organizations. ### Securities Transactions and Revenue Recognition Revenues for executing customer securities transactions, including commissions for agency trading, and gains from riskless principal trading and all associated expenses are recorded as earned and incurred, on a trade date basis. 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 of the securities have been transferred to/from the customer. Associated expenses include commissions paid to registered representatives and fees paid the Clearing Broker for certain clearance and settlement services. Commissions paid to registered representatives vary according to the contracted payout percentage and clearing costs generally fluctuate based on revenues generated on trades and on the volume of transactions. Revenues for Investment banking services are recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. {11}------------------------------------------------ # 2. Summary of Significant Accounting Policies (continued) ### Income Taxes The Company is treated as a corporation for tax purposes. The provision for income taxes includes federal income and various state income and franchise taxes currently payable, and those deferred because of temporary differences betvveen the financial statement and tax bases of assets and liabilities. Deferred income taxes result primarily from deductions and income recorded on the financial statements but not yet allowable or reportable for income tax purposes. The Company uses the asset and liability method to account for deferred income taxes. The asset and liability method requires the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences betvveen tax bases and financial reporting bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is not reasonably assured that some portion or all of the deferred tax assets will be realized. As of December 31, 2022, management has provided a valuation allowance of \$0 for the deferred tax asset. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances, and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded in expenses. The U.S. Federal jurisdiction and the State of Florida are the major tax jurisdictions where the Company files income tax returns. The Company is subject to U.S. Federal or state examinations by tax authorities for the current year and three preceding years as of December 31, 2022. ### **3. Clearing Arrangements** The Company has three clearing agreements with the Clearing Brokers to provide execution and clearing services on behalf of its customers on a fully disclosed basis. One arrangement has been in place for several years and is used for existing business. The third arrangement was entered into during the current year to effect certain new electronic oriented transactional business the Company commenced during 2022. All customer records and accounts are maintained by the clearing brokers. The Company maintains deposits with the Clearing Brokers in the amount of \$243,524 which is included in the "Deposits with Clearing Broker" line of the Statement of Financial Condition. A termination fee may apply if the Company were to terminate its relationships with either of the Clearing Brokers. The Company does not carry the accounts for customers or perform custodial functions related to customers' securities. The Company introduces all of its customers' transactions, which are not reflected in these financial statements, to its Clearing Brokers, who maintain the customer accounts and clears such transactions. These activities may expose the Company to off balance sheet risk in the event customers do not fulfill their obligations with the Clearing Brokers, as the Company has agreed to indemnify the Clearing Brokers for any resulting losses. The Company continually assesses risk associated with each customer who is on margin credit and records an estimated loss when collection from the customer is unlikely. During the year ended December 31, 2022, losses from such arrangements were not significant. {12}------------------------------------------------ # **4. Related Party Transactions** ### Lease Agreements During the year ended December 31, 2022, the Company's registered office is the home address of an officer. The Company remits payment of \$2,500 per month directly to the landlord for this leased space. During the year ended December 31, 2022, the Company also paid \$6,000 under an informal arrangement. Such leases are month to month. During the year ended December 31, 2022, occupancy expenses totaled \$36,000. The Company has no long-term leases, and as such, was not required to recognize a right-of-use asset and a corresponding lease liability under FASB ASC 842, Leases. # **5. Regulatory Requirements** The Company is subject to the provisions of Rule 15c3-1 of the Securities and Exchange Commission (SEC Rule 15c3-1) which requires the Company to maintain minimum net capital of the greater of \$5,000, or \$70,994 based on Al [a ratio of aggregated indebtedness to net capital not exceeding 15 to 1.] On December 31, 2022, the Company's net capital balance as defined by the Rule 15c3-1 was \$686,195, which exceeded the net capital requirement by \$615,201. On December 31, 2022, the Company's aggregated indebtedness to net capital ratio as defined by SEC Rule 15c3-1 was 1.5519 to 1. The Company is exempt from the provisions of Rule 15c3-3 of the Securities and Exchange Commission (SEC Rule 15c3-3) under paragraph (k)(2)(ii) and therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers". # 6. Income **Taxes** During the year ended December 31, 2022, the Company realized a net profit. In assessing the realizability of any existing deferred tax asset, management considers whether it is more likely than not that some portion of the deferred tax asset will not be materialized. The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management has determined that a valuation allowance of \$0 against the deferred tax asset is appropriate in light of the Company's operating profit. On December 31, 2021, the Company had approximately \$2,780,985 in Federal and State net operating loss carry forwards ("NOLs") available to offset future taxable income. The December 31,2022 balance is approximately \$2,144,948, after utilizing the current year's taxable income of approximately \$636,037. As of December 31, 2022, the deferred tax asset was \$397,000. The NOLs will expire over an indefinite period. Management has determined that a reserve under ASC 740-10 is not required to be recognized as there are no significant uncertain tax positions. {13}------------------------------------------------ # **7. Concentration of Credit Risk** The Company maintains cash and savings accounts at one financial institution. Cash balances are insured by the Federal Deposit Insurance Corporation up to \$250,000 per insured financial institution. At times during the year, balances were above the insured limit, however, no losses have been incurred on the accounts. ### **8. Off Balance Sheet Risk** Pursuant to clearance agreements, the Company introduces all its securities transactions to one of the three clearing brokers on a fully disclosed basis. All the customers' money balances and long and short security positions are carried on the books of the clearing broker. In accordance with the clearance agreement, the Company has agreed to indemnify the clearing broker for losses, if any, which the clearing broker may sustain from carrying securities transactions introduced by the Company. In accordance with industry practice and regulatory requirements, the Company, and the clearing broker monitor collateral on the customers' accounts. In addition, the receivable from the clearing broker is pursuant to the clearance agreement. The maximum potential number of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to offbalance sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss. ### **9. Commitments and Contingencies** The Company may be subject to claims and lawsuits that arise primarily in the ordinary course of business. As of December 31, 2022, the Company was not involved in any such claims or lawsuits. ### **10. Principal Transaction Revenues** During 2022, the Company's principal transaction revenues consisted of riskless principal trading totaling \$3,923,735. ### **11. Subsequent Events** The Company has evaluated subsequent events through March 30, 2023, the date the financial statements were available to be issued. There have been no subsequent events that have occurred after December 31, 2022 requiring amounts to be recognized or disclosed in the accompanying financial statements as of December 31, 2022. {14}------------------------------------------------ # **12. Contingent Liabilities** The Company may be involved in a number of legal and regulatory proceedings concerning matters arising from the normal conduct of the Company's business activities. Although there can be no assurances as to the ultimate outcome, the Company has generally denied, or believes it has a meritorious defense, and will deny, liability in all significant litigation threatened against the Company, and it intends to defend vigorously each case. Based upon information currently available and advice of counsel the Company believes that the eventual outcome of such matters will not, individually or in the aggregate, have a material adverse effect on the Company's financial position or results of operation. " .. # CONFIDENTIAL Page11 {15}------------------------------------------------ | Under Rule 15c3-1 of the Securities and Exchange Commission
Computation of Net Capital
December 31, 2022
Schedule I | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------| | Stockholders' Equity | 1,316,476
\$ | | Less: Non-allowable Assets | | | Deferred tax asset | 397,000 | | Prepaid expenses | 35,000 | | Aged receivables | 198,281
630,281 | | | | | Tentative Net capital | 686,195 | | Less: Haircuts | | | Net capital | 686,195 | | Less: Required Net Capital | (70,994) | | Excess Net capital | 615,201
\$ | | Excess Net capital at 120% | 579,704
\$ | | Accounts payable and accrued expenses
Computation of Aggregate Indebtedness: | 1,064,917
\$ | | | 1,064,917
\$ | | Ratio of Aggregated Indebtedness to Net Capital | 1.5519
to 1 | | There are no material differences between the computation of
Net Capital presented above and the Company's unaudited
Form X-17a-5, Part IIA as of December 31, 2022, as filed. | | | See independent registered public accounting firm's report regarding
supplementary information. | | **TradePro Securities,** Inc. # CON Fl DENTIAL {16}------------------------------------------------ # **TradePro Securities, Inc. Schedule II Computation for Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission December 31, 2022** The Company is exempt from the determination of Reserve Requirements pursuant to paragraph (k)(2)(ii) of Rule 15c3-3. See Independent Auditor's Report CON Fl DENTIAL {17}------------------------------------------------ # **TradePro Securities, Inc. Schedule Ill Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission December 31, 2022** The Company is exempt from Possession or Control Requirements pursuant to paragraph (k)(2)(ii) of Rule 15c3-3. See Independent Auditor's Report CON Fl DENTIAL {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) 150 N. Wacker Drive, Suite 3100 Chicago, IL 60606 OFFICE: (312) 782-4710 FAX: (312) 782-4711 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON MANAGEMENT'S CLAIM OF EXEMPTION FROM SEC RULE 15c3-3 To the Board of Directors and Stockholders of TradePro Securities, Inc. Lawrenceville, GA We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) TradePro Securities, Inc. (the Company) identified the following provisions of 17 C.F.R. §15c3-3(k) under which it claimed an exemption from 17 C.F.R. §240.15c3-3: (2)(ii) ("exemption provisions") and (2) the Company stated that it met the identified exemption provisions throughout the most recent fiscal year ended December 31, 2022 without exception. The Company is also filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to the sale of private placements on a best-efforts basis and receiving compensation for referring securities transactions to other broker dealers, and the Company (1) did not directly or indirectly receive, 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 1 Sc2-4 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); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 1 Sc3-3) throughout the most recent fiscal year ended December 31, 2022 without exception. The Company's management is responsible for compliance with the exemption provisions 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 15c3-3 under the Securities Exchange Act of 1934 and the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. *Chicago, IL* March 30, 2023 {19}------------------------------------------------ **C** (!� *dePro Secur ties n* **340 Congress Pkwy. Lawrenceville, GA 30044 305-446-4800** # **TradePro Securities, Inc. Exemption Report** TradePro Securities, Inc. (the "Company") is a registered broker--dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) 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. 15c3-3 under the following provisions of17 C.F.R. § 24O.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 ended December 31, 2022, without exception. (3). The Company is also filing this Exemption Report 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. § 240.17a-5 are limited to: (1) engages in the sale of private placements on a best-efforts basis and (2) receiving compensation for referring securities transactions to other broker dealers, and the Company (1) did not directly or indirectly receive, 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); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined by Rule 15c3-3) throughout the most recent fiscal year ending December 31, 2022, without exception. I, Stephen J. Cass, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. **By:\_4/----\_\_\_\_\_\_ \_** Title: Chief Financial Officer March 30, 2023 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.