# TRAILMARK INC. X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: TRAILMARK INC. - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0001123374-24-000003 - CIK: 1123374 - File #: 8-52864 - Type: Broker-dealer - Material weakness: No - Auditor: AGL CPA Group LLC - Auditor location: Duluth, GA - Contact: Bruce Williamson - Phone: 4049005501 - Email: bwilliamson@trailmark.com - Website: trailmark.com - Signed by: Bruce Williamson (CFO, CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1123374/000112337424000003/Trailmark2023FSPublic.pdf --- {0}------------------------------------------------ # TRAILMARK INC. ## FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION For the Year Ended December 31, 2023 {1}------------------------------------------------ | PUBLIC | | | | | | |-----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|------------|----------------------------------------------------|--|--| | | UNITED STATES | | OMB APPROVAL
OMB Number: 3235-0123 | | | | | SECURITIES AND EXCHANGE COMMISSION | | | | | | | Washington, D.C. 20549 | | Estimated average burden
hours per response: 12 | | | | | ANNUAL REPORTS | | SEC FILE NUMBER | | | | | FORM X-17A-5 | | 8-52864 | | | | | PART III | | | | | | | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | | | | | | 12/31/23 | | | | filing for the period beginning 01/01/23 | MM/DD/YY | AND ENDING | MM/DD/YY | | | | | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: Trailmark Inc. | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | ച Broker-dealer | | | | | | | [ Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 3355 Lenox RD NE STE 805 | | | | | | | | (No. and Street) | | | | | | Atlanta | GA | | 30326 | | | | (City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Bruce Williamson | 404-900-5501 | | bwilliamson@trailmark.com | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | | | | | | | | | | | | AGL CPA Group, LLC | | | | | | | | (Name - if individual, state last, first, and middle name)
Duluth | GA | 30097 | | | | 1870 Buford Hwy STE 100 | (City) | (State) | (Zip Code) | | | | | | 3488 | | | | | | | | | | | | (Address)
05/19/2009
(Date of Registration with PCAOB)(if applicable) | FOR OFFICIAL USE ONLY | | (PCAOB Registration Number, if applicable) | | | CFR 240.17a-5(e)(1)(ii), if applicable. CFR Z40.17 a-5(E)(L)((i), 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 OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION | swear (or affirm) that, to the best of my knowledge and belief, the
Bruce Williamson | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | as of as a same , as of
financial report pertaining to the firm of Trailmark Inc.
12/31 | | 2 023 __ 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. | | Signature: | | | | Title: | | CFO | | | | Nøtary Public | | | | This filing ** contains (check all applicable boxes): | | (a) Statement of financial condition. | | J (b) Notes to consolidated statement of financial condition. | | (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of | | comprehensive income (as defined in § 210.1-02 of Regulation S-X). | | [ (d) Statement of cash flows. | | [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | [f) Statement of changes in liabilities subordinated to claims of creditors. | | [g) Notes to consolidated financial statements. | | [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | [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. | | □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
□ (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-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | - exist. □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - = (q) Oathnor affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - = (q) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (t) Liemption report in coountant's report based on an examination of the statement of financial condition. - □ (1) 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. - CH 240.178-3, 17 CH 240.20 // 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. - CFR 240.17a-5 Ur I / Cr K 240.10a 7, 85 uppt based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - CFR 240.18a-7, as applicable. □ (x) Supplicable. as applicable. - as applicable. □ (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). - O (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {3}------------------------------------------------ # TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|---| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | - | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members Trailmark, Inc. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Trailmark, Inc. as of December 31, 2023, the related statements of , and cash flows for the year then ended, and the related notes and schedules erial respects, the financial position of Trailmark, Inc. as of December 31, 2023, 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 Trailmark, Inc. on Trailmark, Inc. Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Trailmark, 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. The computation of net capital under Rule 15c3-1 of the Securities and Exchange Commission, the computation for determination of reserve requirements under Rule 15c3-3 of the Securities and Exchange Commission, and the information relating to the possession or control requirements under Rule 15c3-3 of the Securities and Exchange Commission (collectively, has been subjected to audit procedures performed in conjunction with the audit of Trailmark, Inc. financial statements. The supplemental information is the responsibility of Trailmark, Inc. 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. §240.17a-5. In our opinion, the Schedules are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Trailmark, Inc. 2023. Duluth, Georgia March 28, 2024 {5}------------------------------------------------ # TRAILMARK, INC. # Statement of Financial Condition December 31, 2023 # ASSETS # CURRENT ASSETS | Cash | \$
672,679 | |-------------------------------|-----------------| | Accounts receivable | 323,314 | | Prepaid expenses and deposits | 61,997 | | Property and equipment, net | 4,608 | | Other assets | 11,509 | | Total assets | \$
1,074,107 | # LIABILITIES AND STOCKHOLDERS' EQUITY ## CURRENT LIABILITIES | Accounts payable and accrued expenses | \$
305,115 | |---------------------------------------|---------------| | Payroll liabilities | 258,848 | | Accrued retirment contribution | 57,591 | | Total liabilities | 621,554 | | | | ## STOCKHOLDERS' EQUITY: | Common stock, \$.01 par value, 10,000 shares authorized, | | |----------------------------------------------------------|-----------------| | 2,600 shares issued and outstanding | 26 | | Paid-in capital in excess of par | 25,974 | | Retained earnings | 426,553 | | Total Stockholders' Equity | 452,553 | | Total Liabilities and Stockholders' Equity | \$
1,074,107 | See accompanying notes to the financial statements {6}------------------------------------------------ # TRAILMARK INC. Notes to Financial Statements December 31, 2023 # NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations Recently adopted accounting standards - Basis of accounting Cash and cash equivalents Revenue from Contracts with Customers Advisory Fees - Leases – {7}------------------------------------------------ # TRAILMARK INC. Notes to Financial Statements December 31, 2023 Income taxes Income Taxes Contingencies Use of estimates - Accounts receivable – Allowance for credit losses {8}------------------------------------------------ # TRAILMARK INC. Notes to Financial Statements December 31, 2023 Property and equipment – Simplifying the Presentation of Debt Issuance Costs Fair Value Measurements and Disclosures, Fair Value Measurements and Disclosures, i Fair Value Measurements and Disclosures, Fair Value Measurements and Disclosures, - - - Fair Value Measurements and Disclosures, {9}------------------------------------------------ # TRAILMARK INC. Notes to Financial Statements December 31, 2023 # NOTE 2 - COMMITMENTS AND CONTINGENCIES Trailmark is the claimant in an arbitration against a former client. Arbitration proceedings were biffurcated into liability and damages phases. Following discovery and a 2022 hearing on liability, the arbitrator ruled for Trailmark across the-board on liability and rejected the former client's counterclaim for breach of contract. The parties are currently engaged in discovery in connection with the damages phase of the arbitration. A hearing on damages to be awarded to Trailmark has been scheduled for late 2024. # NOTE 3-PROPERTY AND EQUIPMENT Property and equipment recorded at cost as of December 31, 2023 consist of the following classifications: | Computers & peripherals | S | 45.165 | |-------------------------------|---|--------| | Furniture | | 45.409 | | Office Equipment | | 9,003 | | | | 99.577 | | Less accumulated Depreciation | | 94.969 | | Property and equipment, net | S | 4,608 | Depreciation expense for the year ended December 31, 2023 was \$966. #### NOTE 4 - LEASES The Company renewed a lease for a period of one-year effective December 1, 2022, for monthly payments in the amount of \$10,838, which expires on November 30, 2023. The Company has elected not to apply the recognition requirements of Topic 842 relating to its short-term office lease and instead has elected to recognize the lease payments as cost on a straight-line basis over the lease cost is \$136,249 for the year #### NOTE 5-PENSION PLAN The Company established a retirement plan during the year ended December 31, 2013 to replace the former Simplified Employee Pension plan (SEP) covering eligible employees. Company contributions to the plan are determined annually and are made at the discretion of the Board of Directors. Employees do not make contributions into the plan. For the year ended December 31, 2023, the Company contributed \$57,591 to the plan and is included in expenses in the statement of operations. ## NOTE 6 - NET CAPITAL REQUIREMENTS As a registered broker-dealer, the Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. The rule states, in part, that a broker or dealer that does not receive, directly or indirectly, or hold funds or securities for, or owe funds or securities to, customers and does not carry accounts of, or for, customers is required to maintain a minimum net capital of 6-2/3% of aggregate indebtedness, or \$5,000, whichever is greatest. As of December 31, 2023, the Company has net capital of \$51,125 which exceeds its minimum of \$41,439 by \$9,686. {10}------------------------------------------------ # TRAILMARK INC. Notes to Financial Statements December 31, 2023 # NOTE 6-NET CAPITAL REQUIREMENTS (Continued) Pursuant to SEC Rule 17a-5, paragraph (d)(4), the net capital computation contained in this annual audit report for the period ending December 31, 2023 does not differ materially from the net capital computation contained in the firm's unaudited FOCUS Report IIA for the period ending December 31, 2023. Consequently, a reconciliation was not required and is therefore not including herein. # NOTE 7-CONCENTRATIONS OF CREDIT RISK The Company maintains cash balances at banks and other financial institutions. Accounts at banks and institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. The Company's cash deposits exceeded the insured amounts by approximately \$595,072 as of December 31, 2023. During the year ended December 31, 2023, approximately 74 % of the revenues were derived from two customers. # NOTE 8-RELATED PARTY TRANSACTIONS The Company entered into an agreement with Trailmark Group Ltd (f/k/a Fortress Placement Services (UK) Ltd) on January 1, 2014 to share in the use of and the expense of certain individuals and resources, as well as the revenue earned by the respective companies using the shared resources. The agreement was amended on April 1, 2023. During the year ended December 31, 2023, the Company recorded approximately \$143,166 in salary reimbursements and \$12,000 in database royalty fees from Trailmark Group Ltd. As of December 31, 2023 the Company owed \$259,448 to Trailmark Group Ltd, which was paid in February 2024. The Company and Trailmark Group Ltd share common ownership. ## NOTE 9-SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date and time the financial statements were issued. In 2024, the Company entered into a new lease with a commencement date of July 2024 and monthly rents starting at \$2,401 for the first year with gradual increases for six consecutive years. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.