# STATETRUST INVESTMENTS INC. X-17A-5 (2026-03-05) — Broker-dealer annual report - Company: STATETRUST INVESTMENTS INC. - Form: X-17A-5 - Filed: 2026-03-05 - Period: 2025-12-31 - Accession: 0001126620-26-000006 - CIK: 1126620 - File #: 8-52954 - Type: Broker-dealer - Material weakness: Yes - Auditor: Assurance Dimensions - Auditor location: Coral Springs, FL - Contact: JEFF CIMBAL - Phone: 3059218100 - Email: icimbal@statetrust.com - Website: statetrust.com - Signed by: Jeffrey Cimbal (President) Original filing: https://www.sec.gov/Archives/edgar/data/1126620/000112662026000006/Public.pdf.pdf --- {0}------------------------------------------------ # StateTrust Investments, Inc. Statement of Financial Condition December 31, 2025 {1}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB APPROVAL | | |---------------------------|--| | OMB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | 12
hours per response: | | | | | SEC FILE NUMBER # ANNUAL REPORTS FORM X-17A-5 PART III | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------|--------------------------------------------| | FILING FOR THE PERIOD BEGINNING 1/1/25 | | AND ENDING 12/31/25 | MM/DD/YY | | | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: State Trust Investments, Inc. | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer Security-based swap dealer
Check here if respondent is also an OTC derivatives dealer | | | | Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 1750 Clint Moore Road | | | | | | | (No. and Street) | | | | | Boca Raton | | | | 3348 | | (City) | (State) | | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Jeffrey Cimbal | 305-921-8100 | | | icimbal@statetrust.com | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Assurance Dimensions | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 3111 N Uninversity Dr Suite 621 Coral Springs | | | ﯩ | 33065 | | (Address) | (City) | | (State) | (Zip Code) | | 4/13/2010 | | 5036 | | | | | | | | (PCAOB Registration Number, if applicable) | covered by the reports of an independent p that the annual reports be accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(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 OMB control number. {2}------------------------------------------------ ### OATH OR AFFIRMATION | Jeffrey Cimbal | swear (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------| | tinancial report pertaining to the firm of StateTrust Investments, Inc. | as or | | 12/01 | 2 025 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. The for customer. (Caroo President ![](_page_2_Picture_3.jpeg) Signature: Title: Notary Public ### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [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. - [] 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 on Exhibit A to 17 CFR 240.18a-4, as applicable. - [ ( ) 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 capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, 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. - [ (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. - [ (u) Independent public accountant's report based on an examination of the 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. - O (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (x) Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.176-12, as applicable. - [ (y) Report describing any material inadequacies 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), as applicable. {3}------------------------------------------------ # Contents | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|------| | Consolidated Financial Statements | | | Consolidated Statement of Financial Condition | | | Notes to the Consolidated Financial Statements | 3-14 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder of StateTrust Investments, Inc. ### Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated statement of StateTrust Investments, Inc. as of December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all materal position of State Trust Investments, Inc. as of December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion These consolidated financial statements are the responsibility of StateTrust Investment. Our responsibility is to express an opinion on StateTrust Inc.'s consolidated 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 StateTrust Investments, 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 consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material of the consolidated 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 consolidated financial statements. Our audit also included evaluating principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. surance We have served as State Trust Investments, Inc.'s auditor since 2020. Assurance Dimensions, LLC Coral Springs, Florida March 2, 2026 > ASSURANCE DIMENSIONS, LLC also d/b/a McNAMARA and ASSOCIATES, LLC TAMPA BAY: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053 JACKSONVILLE: 7800 Belfort Parkway, Suite 290 | Jacksonville, FL 32256 | Office: 888.410.2323 | Fax: 813.443.5053 ORLANDO: 1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 SOUTH FLORIDA: 3111 N. University Drive, Suite 621 | Coral Springs, FL 33065 | Office: 754.800.3400 | Fax: 813.443.5053 www.assurancedimensions.com "Asurate Dimension" is the bronne in the including in the least of the mail of the mater at " MLC" in Alexines (at Publication). A Multim (LC ) a lienes in and research on an services to its clients, and AD Advisors provide tax and business consulting services to their clients. AD Advisors, and its subsidiary entities are not licensed CPA firms. {5}------------------------------------------------ # StateTrust Investments, Inc. Consolidated Statement of Financial Condition As of December 31, 2025 | Assets | | | |-------------------------------------------------------------------------|----|-------------| | Current assets | | | | Cash & cash equivalents (Note 1) | \$ | 845,270 | | Securities owned, at fair value (Note 3) | | 7,799 | | Receivable from clearing broker | | 509,269 | | Due from affiliates (Note 1) | | 936,982 | | Prepaid and other current assets | | 109,343 | | Total current assets | | 2,408,663 | | | | | | Equipment, net (Note 4) | | 10,000 | | Property and land (Note 4) | | 10,304,263 | | Deposit at clearing broker | | 100,000 | | Other assets | | 573 | | Total assets | \$ | 12,823,499 | | Liabilities & stockholder's equity | | | | Current liabilities | | | | Accounts payable and accrued liabilities | \$ | 166,086 | | Mortgage note payable, net of discount, current portion (Note 5) | | 125,139 | | Total current liabilities | | 291,225 | | Mortgage note payable, net of discount (Note 5) | | 8,445,846 | | Total liabilities | | 8,737,071 | | Stockholder's equity | | | | State Trust Investments, Inc. common stock \$0.001 par value: 2,000,000 | | | | shares authorized, 1,033,053 shares issued and outstanding | | 1,036 | | Additional paid-in capital | | 753,739 | | Retained earnings | | 7,029,051 | | | | 7,783,826 | | Less treasury stock 804,416 shares at cost | | (4,642,067) | | Equity of StateTrust Investments, Inc. | | 3,141,759 | | Non-controlling interest | | 944,669 | | Total stockholder's equity | | 4,086,428 | | Total liabilities & stockholder's equity | S | 12,823,499 | See accompanying notes {6}------------------------------------------------ ### NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Description of Business and Organization StateTrust Investments, Inc. ("STI"), incorporated under the laws of the State of Delaware on April 14, 2000, is a broker of various types of equity, debt, and mutual fund securities and option contracts. STI primarily acts in an agency capacity, buying and selling securities for its customers, both foreign and domestic, and charging a commission. Approximately 85% of STI's unaffiliated customers are located in Latin America. STI earns commission income, fees, and margin interest participation from transactions with clients. 51% of the Company's revenue originated from related parties in 2025. STI also trades securities for its own account. StateTrust Investments, Inc. is a wholly owned subsidiary of StateTrust Group LLC (the "Parent"). Boca 1750, LLC ("Boca 1750"), is a wholly owned subsidiary of the Parent. Boca 1750 is a company affiliated via common ownership with StateTrust Investments, Inc., was organized in 2018 and is the lessor of real property occupied by StateTrust Investments, Inc. ## Basis of Consolidation The consolidated financial statements include the accounts of StateTrust Investments, Inc. and Boca 1750, LLC, collectively referred to as the "Company". Boca 1750 is a variable interest entity in which StateTrust Investments, Inc. has the power to direct its significant activities, has guaranteed the mortgage note payable for the property, which represents the maximum exposure to loss, and is the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Consolidation of the variable interest entity's assets amounted to approximately \$9.5 million comprised principally of cash and real estate property and liabilities of approximately \$8.6 million comprised principally of a mortgage note payable and a related party note payable to STI of which approximately \$900,000 eliminates in consolidation. The equity interests of Boca 1750 are reflected as non-controlling interest in the accompanying consolidated financial statements. # Government and Other Regulation The Company's business is subject to significant regulation by various governmental agencies and self-regulatory 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 these organizations. {7}------------------------------------------------ ### - - - !" #\$%& '()\*(+,'()\*-./01(23+4) 56789:;<=>?9=@AB7C@DAFGABA=H7@I:7=I@6:<>MBGCA=EI67 ?9GC@79JKG@A=7@@M:A=@GC7BDA:AI@9J OPQRMRRRLSIT7?7:K7CUVMPRPQMI67?9:;<=>67DBOURWMXWRA=?<@6KC7@ICA?I7Bb@?D7m@A=H7@I:7=I@A=@7?GCAIA7@n9GDBC7?7AH7I9@7DD<=A=H7@I:7=I9C;<>I9IC<=@J7C< DAA=IC<=@A=I67;CA=?A;LS??9G=IA=ECGD7@7@II9BA@IA=EGA@6K7In77=pVq A=;GI@I6B7H7D9;7BK<@7B9=:p9K@7CHm@9n= <@@G:;IA9=@B7H7D9;7BK<@7B9=I67K7@IA=J9C:m@ A=H7@I:7=I@L 5676A7CA@@G::m@9n= <@@G:;IA9=@A=B7I7C:A=A=EI67JA=EI67;C9HA@A9=@9JI67@7b@;9CIJ9DA977Bt {8}------------------------------------------------ ### NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ## Valuation of Investments in Securities at Fair Value - Definition and Hierarchy (continued) ### Sovereign Government Bonds The fair value of sovereign government bonds is generally based on quoted prices in active markets. When quoted prices are not available, fair value is determined based on a valuation model that uses inputs that include interest rate yield curves, cross currency basis index spreads, and country credit spreads similar to the bond in terms of issuer, maturity, and seniority. These items are typically categorized in Level 2 of the fair value hierarchy. ### Corporate Bonds The fair value of corporate bonds is estimated using recently executed transactions, market price quotations (where observable), bond spreads or credit default swap spreads. The spread data used are for the same maturity as the bond. If the spread data does not reference the issuer, then data that references a comparable issuer is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond, or single name credit default swap spreads and recovery rates based on collateral values as key inputs. Corporate bonds are typically categorized in Level 2 of the fair value hierarchy. ### Revenue Recognition In May 2014, the FASB issued comprehensive new revenue recognition guidance, ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance requires a company to recognize revenue when it transfers promised services to clients in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The guidance also changes the accounting for certain contract costs, including whether they may be offset against revenue in the statement of operations. The guidance requires an entity to follow a five-step model to: - a) Identify the contract(s) with a customer, - b) identify the performance obligations in the contract, - c) determine the transaction price, - d) allocate the transaction price to the performance obligations in the contract, and - e) recognize revenue when (or as) the entity satisfies a performance obligation. {9}------------------------------------------------ ### NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ## Brokerage Commissions STI buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, STI charges a commissions and related clearing expenses are recorded on the trade date (the date that STI 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. # Distribution Fees STI enters into arrangements with managed accounts or other pooled investment vehicles (funds) to distribute shares to investors. The Company may receive distribution fees paid by the fund up front, over time, upon the investor's exit from the fund (that is, a contingent deferred sales charge), or as a combination thereof. STI 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 STI's influence, STI does not believe that it can overcome this constraint until the market value of the fund and the investor activities are known, which are usually monthly or quarterly. Distribution fees recognized in the current year are primarily related to performance obligations that have been satisfied during the year. # Other income STI recognizes revenue for postage and handling on certain of its customers' trades. This revenue is recorded on the trade date (the date that STI 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. {10}------------------------------------------------ #### - - - !" #\$%& # > 1234546372889:9842892;<=475454;<>29?4876475248@5<=A7539;9A739<2<2;B9423 C547;;4 7>544=42367283G4H<=A72IJ6;B47592>;<2357;3K > LG4H<=A72I7;;7;E55423 > 4[A4;348;54893B<66VH\HUY=43G<8I3<4639=7344[A4;348;54893B<6646<:453G4 423954B9@4<@3G4@9272;97B76643R54;<58487392;4A39<2<5AE5;G764KLG4H<=A72IG763G4 7C9B93I3<84345=9243G4547542<4[A4;348;54893B<664692;453792;95;E=6372;46K > LG4H<=A72I984239@9487;;<3G45766436E39B9?92>3G4H\HU @57=4F<5DK ## ]^\*\_+`ab\_\_/c/-)\*, M=C7B72;4<@ @E2868E4@<554A7I=423<@78:72;46728;G75>46@<5645:9;4654284548KLG4;755I92> 7=4=423J6C4634639=734<@ 3G47=4=423C4B94:463G733G47=4=423G762<3 54;<5848727BB3G463579>G3kB924=43G<8KLG44639=7348 E64@EBB9:46<@3G464766436572>4@5<=@9:43<3F423Ik64:427287G7B@I4756Kl79234272;4 72854A7956754;G75>483<4[A426467692;E5548Km424F7B6728C43345=42363G734[3428 3G4E64@EBB9:46<@766436754;7A937B9?48K '(n`a\*o-p\*, # N3734L5E6312:463=4236R12;K7;;7=766436728B97C9B939467283G495546A4;39:437[C7646Kq4@4554837[766436728 {11}------------------------------------------------ ## Income taxes ( continued) liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Boca 1750 is treated as a disregarded entity for federal income tax purposes. Consequently, federal income taxes are not payable by Boca 1750. Members are taxed individually on their share of the Boca 1750's earnings. Boca 1750's net income or loss is allocated among the members in accordance with the operating agreement of Boca 1750. No provision for income taxes for Boca 1750 is included in the accompanying financial statements. The Company assesses its tax positions in accordance with "Accounting for Uncertainties in Income Taxes" as prescribed by the Accounting Standards Codification, which provides guidance for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return for open tax years (generally a period of three years from the later of each return's due date filed) that remain subject to examination by the Company's major tax jurisdictions. The Company assesses its tax positions and determines whether it has any material unrecognized liabilities for uncertain tax positions. The Company records these liabilities to the extent it deems them more likely than not to be incurred. Interest and penalties related to uncertain tax positions, if any, would be classified as a component of income tax expense. The Company believes that it does not have any significant uncertain tax positions requiring recognition or measurement in the accompanying financial statements. ### Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates include allowance for doubtful accounts, deferred tax assets and liabilities, and valuation allowances. # Segment reporting policy On January 1, 2024, the Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires all public entities, including those with a single reportable segment, to disclose additional information about a reportable segment's expenses. {12}------------------------------------------------ ## Segment reporting policy (continued) The Company follows Accounting Standards Update 2023-07 - Segment Re =porting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07") , which expands reportable segment information by requiring companies to disclose, on an annual and interim basis, significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit or loss. ASU 2023-07 also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM makes decisions about allocating resources to segments and evaluating performance. The Company conducts its business activities and reports financial results as a single reportable brokerage services segment. The CODM makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results. The nature of business and accounting policies of the brokerage services segment are the same as described in the description of business and summary of significant accounting policies notes. The CODM is the President. ### NOTE 2. RELATED PARTY TRANSACTIONS ### Management Agreement The Company has entered into a management agreement with an affiliate that is related to the Company by virtue of common ownership. This affiliate pays a management fee in consideration of referral agent expenses, utilities, salaries, telephone, equipment, furniture and fixtures, postage, office supplies, and other general administrative and office expenses paid on behalf of the Company. ### Commission and Referral Fees The Company pays commissions and referral fees to certain affiliated registered representatives and referral brokers who are related by virtue of common ownership. ### Distribution Agreement Pursuant to a distribution agreement dated July 17, 2003, the Company is the exclusive agent for the distribution of shares to certain offshore funds ("Funds"). The Company is related to the Funds as it has common management. These Funds operate as diversified open-end management investment companies. ### Insurance and Annuity Company The Company is related to an insurance company by virtue of common ownership. {13}------------------------------------------------ ### FAIR VALUE MEASUREMENT NOTE 3. | | The following table presents information about the Company's assets and liabilities
measured at fair value as of December 31, 2025:
Quoted Prices in | | | | | | | | |-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|---|-----------------------------------------------------|---|-------------------------------------------------|---|-------| | Assets, at fair value | | Active Markets
for Identical
Assets (Level 1) | | Significant Other
Observable
Inputs (Level 2) | | Significant
Unobservable
Inputs (Level 3) | | Total | | Securities owned: | | | | | | | | | | Sovereign and corporate bonds | 5 | - | S | 7.799 | S | | | 7,799 | | TOTALS | | | | 7,799 | S | | 5 | 7,799 | The Company did not transfer any securities between levels during the year ended December 31, 2025. ### NOTE 4. PROPERTY AND EQUIPMENT, NET | Property and equipment at December 31, 2025, consisted of the following: | | | |--------------------------------------------------------------------------|---|-------------| | Building | 5 | 11,632,318 | | Land | | 1,859,949 | | Leasehold Improvement | | 905,130 | | Office Equipment | | 343,744 | | Computers | | 274,169 | | Furniture & Fixture | | 226,193 | | Computer Software | | 117,972 | | | S | 15,359,475 | | Less : accumulated depreciation and amortization | | (5,045,212) | | | 5 | 10,314,263 | On December 31, 2025, the Company reclassified a land and building property owned by Boca 1750 investment property due to lack of selling of the property. Accordingly, the carrying amount of \$10,304,265 was reclassified from property held for sale to property and equipment. Depreciation and amortization expense amounted to \$509,935 for the year ended December 31, 2025. {14}------------------------------------------------ ### MORTGAGE NOTE PAYABLE NOTE 5. In connection with Boca 1750's acquisition of land and building utilized by the Company for its headquarters, in September 2025, it entered into a refinance Mortgage and Security Agreement (the "Mortgage") with a financial institution in the amount of \$8570,985. The Mortgage calls for monthly interest and principal payments of \$63,372 beginning September 6, 2025, until September 26, 2050, at which time all outstanding principal, plus all accrued and unpaid interest is due. The Mortgage bears interest at 7.36% per annum and is collateralized by certain assets of Boca 1750. The Mortgage is guaranteed by STG, STI, and other related entities. Interest expense for the note payable amounted to \$492,712 for the year ended December 31, 2025, which is included as part of interest expense on the accompanying consolidated statement of operations. Covenants are measured at the consolidated parent level per the agreement and are in compliance as of December 31,2025. ### NOTE 6. INCOME TAXES At December 31, 2025 the Company had total federal net operating loss carryforwards of approximately \$3,581,803 that have no expiration date but are subject to the Internal Revenue Code under the Tax Cuts and Jobs Act (TCJA). Under the TCJA, the NOL deduction for a tax year is equal to the lesser of (1) the aggregate of the NOL carryovers to such year, plus the NOL carry-backs to such year, or (2) 80% of taxable income (determined without regard to the deduction) (Sec. 172(a)). Generally, NOLs can no longer be carried back but are allowed to be carried forward indefinitely (Sec. 172(b)((1)(A)). The special extended carryback provisions are generally repealed, except for certain farming and insurance company losses. The Company accounts for income taxes under Accounting Standards Codification 740, Income Taxes "ASC 740". ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial losses and the tax basis of assets and liabilities for both the expected future tax benefit to be derived from tax losses and tax credit carry forwards. ASC 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Internal Revenue Code Section 382 "IRC 382" places a limitation on the amount of taxable income that can be offset by carry forwards after a change in control (generally greater than a 50% change in ownership). In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the {15}------------------------------------------------ generation of future taxable income during the periods in which those temporary differences will become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The table below summarizes the differences between the Company's effective tax rate and the statutory federal rate as follows for the period ended December 31, 2024: | 2025 | | |---------------------------|--------| | Statutory federal rate | 21.00% | | State tax, net of federal | 4.35% | | Effective tax rate | 25.35% | Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. The components of the net deferred tax asset as of December 31, 2025 are as follows: | NOL | S | 611,977 | |-----------|---|------------| | Other | | (19,280) | | Allowance | | ( 592,697) | | Total | S | 0 | The decrease in valuation allowance in 2025 was \$. For the year ended December 31, 2025, the provision for income taxes is summarized as follows: | Federal/State | \$0.00 | |-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Allowance | | | Total provision for
income taxes | ﺃﻣﺎﻛﻦ ﻣﺄﻫﻮﻟﺔ ﺃﺳﺴﺖ ﻓﻲ 1970 ﻓﻲ ﺇﺳﺒﺎﻧﻴﺎ، ﻭﻳﺘﺤﺪ ﺍﻟﻤﺪﻳﻨﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍ | {16}------------------------------------------------ ### NOTE 7. CAPITAL REQUIREMENTS As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule of the Securities and Exchange Commission, which requires that "Net Capital", as defined, shall be at least the greater of \$100,000 or 6 2/3% of "Aggregate Indebtedness", as defined. However, during 2022 the Company elected to use the "Alternate Net Capital Requirement" which requires a flat \$250,000 minimum dollar net capital. At December 31, 2025, the Company's Net Capital was \$1,247,759 which exceeded requirements by \$997,759. The Company calculates its Net Capital on an unconsolidated basis for STI in line with the Uniform Net Capital Rule of the Securities and Exchange Commission and AICPA guidance 6.27 auditing guide. ### RISK CONCENTRATIONS NOTE 8. ## Clearing and Depository Concentrations The Company has its clearing and depository operations for the Company's securities transactions with Axos Clearing LLC (Axos), whose main office is located in Nebraska. The underlying agreement with Axos renews annually and provides for early termination fees based on average clearing charges. At December 31, 2025, the receivable from broker and deposit at clearing broker are with this brokerage firm. # Other Risk Concentrations 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 off-balance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company must purchase or sell the financial instrument underlying the contract at a loss. The Company's customer securities activities are transacted on either a cash or margin basis. In margin transactions, the Company through its clearing broker extends credit to its customers, subject to various regulatory and internal margin requirements, collateralized by cash and securities in the customers' accounts. In addition to these activities, the Company may execute customer transactions involving the sale of securities not yet purchased, substantially all of which are transacted on a margin basis subject to individual exchange regulations. Such transactions may expose the Company to significant off-balance-sheet risk in the event margin requirements are not sufficient to fully cover losses that customers may incur. In the event the customer fails to satisfy its obligations, the Company may be required to purchase or sell financial instruments at prevailing market prices to fulfill the customer's obligations. The Company seeks to control the risks associated with its customer activities by requiring customers to maintain {17}------------------------------------------------ margin collateral in compliance with various regulatory and internal guidelines. The Company monitors required margin levels daily, and pursuant to such guidelines, requires the customer to deposit additional collateral or to reduce positions when necessary. ### NOTE 9. SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 3, 2026, which is the date the consolidated financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.