# DANSKE MARKETS INC. X-17A-5 (2026-02-26) — Broker-dealer annual report - Company: DANSKE MARKETS INC. - Form: X-17A-5 - Filed: 2026-02-26 - Period: 2025-12-31 - Accession: 0001142175-26-000002 - CIK: 1142175 - File #: 8-53341 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman & Company, LLP - Auditor location: Florham Park, NJ - Contact: Ira Brofsky - Phone: 212 293 0503 - Email: ibr@danskemarkets.com - Website: danskemarkets.com - Signed by: Anders Iversen (President and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1142175/000114217526000002/public.pdf --- {0}------------------------------------------------ PUBLIC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | |--------------------------| | OMB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | hours per response: 12 | | | | SEC FILE NUMBER | | |-----------------|--| | 8-53341 | | FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 12/31/25 01/01/25 FILING FOR THE PERIOD BEGINNING AND ENDING MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION Danske Markets Inc. NAME OF FIRM: TYPE OF REGISTRANT (check all applicable boxes): [ Security-based swap dealer Broker-dealer [ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 575 Fifth Avenue, 33rd Floor (No. and Street) NY 10017 New York (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING 212 293 0503 Ira Brofsky ibr@danskemarkets.com (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Citrin Cooperman & Company, LLP (Name - if individual, state last, first, and middle name) 180 Park Avenue, Suite 200 Florham Park 07932 NJ (Address) (City) (State) (Zip Code) 11/02/2005 2468 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) FOR OFFICIAL USE ONLY \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-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. {1}------------------------------------------------ #### OATH OR AFFIRMATION | Anders Iversen | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------|---------------------------------------------------------------------| | financial report pertaining to the firm of Danske Markets Inc. | as of | December 31 , 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. Signature: Anders of versen Title: President and CEO #### 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. - [ [i] 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 capible 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. - | | | 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. - □ (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 240.17a-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). - | (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {2}------------------------------------------------ Statement of Financial Condition # DANSKE MARKETS INC. (A Wholly-Owned Subsidiary of Danske Bank A/S, Denmark) December 31, 2025 {3}------------------------------------------------ # DANSKE MARKETS INC. (A Wholly-Owned Subsidiary of Danske Bank A/S, Denmark) # TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|--| | Statement of Financial Condition | | | Notes to Financial Statement | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Citrin Cooperman & Company, LLP Certified Public Accountants 180 Park Avenue, Suite 200 Florham Park, NJ 07932 T 973.218.0500 F 973.218.7160 citrincooperman.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder and Board of Directors Danske Markets Inc. #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Danske Markets Inc. as of December 31, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Danske Markets Inc. as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Danske Markets Inc.'s management. Our responsibility is to express an opinion on Danske Markets Inc.'s financial statement 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 Danske Markets 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 statement is 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 statement, 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as Danske Markets Inc.'s waditor since 2013. Florham Park, New Jersey February 24, 2026 {5}------------------------------------------------ # DANSKE MARKETS INC. (A Wholly-Owned Subsidiary of Danske Bank A/S, Denmark) Statement of Financial Condition December 31, 2025 (expressed in U.S. dollars) ## ASSETS ប្រជាជនជាតិ ជាប់ ប្រាសាទ ប្រ | Cash and cash equivalents | ಕೆ | 390,943 | |------------------------------|----|------------| | Securities, at fair value | | 33,113,491 | | Right of use assets | | 2,445,301 | | Due from parent | | 3,286,858 | | Prepaid taxes | | 109,208 | | Deferred tax assets | | 220,332 | | Fail to deliver | | 147.995 | | Receivables and other assets | | 373,735 | | Prepaid expenses | | 50,757 | | Total assets | | 40.138.620 | ### LIABILITIES AND STOCKHOLDER'S EQUITY | DABILITYS | | | |-----------------------------------------------------------|---|------------| | Lease liabilities | S | 2,715,951 | | Accrued expenses | | 1,055,810 | | Due to customers | | 147,995 | | Other liabilities | | 15,062 | | Total liabilities | | 3,934,818 | | COMMITMENTS AND CONTINGENCIES (NOTES 4,5 AND 7) | | | | STOCKHOLDER'S EQUITY | | | | Common stock - \$0.01 par value; 1,000 shares authorized, | | | | 10 shares issued and outstanding | | | | Additional paid-in capital | | 18,000,000 | | Retained earnings | | 18,203,802 | | Total stockholder's equity | | 36,203,802 | | Total liabilities and stockholder's equity | | 40,138,620 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### 1. GENERAL BUSINESS Danske Markets Inc. (the "Company"), a wholly-owned subsidiary of Danske Bank A/S, a Denmark entity (the "Parent"), was incorporated in Delaware on February 12, 2001. The Company is registered as a brokerdealer in securities under the Securities Exchange Act of 1934 (the "Act") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA") as a broker-dealer. The Company's primary business activities include acting as agent or riskless principal broker in the purchase and sale of foreign equities and debt securities between U.S. institutional investors and its Parent under Securities and Exchange Commission Rule 15a-6. The Company acts as agent for its Parent in interest rate derivative and foreign exchange transactions with U.S. and non-U.S. customers of its Parent. The Company also participates in securities underwritings and provides merger and acquisition advisory services. The Company does not carry customer accounts and is accordingly exempt from the Act's Rule 15c3-3 (the Customer Protection Rule) pursuant to Provision k(2)(i) of the rule. The Company maintains its office in New York. The books and records are maintained in U.S. dollars. The Company has entered into Service Level Agreements ("SLAs") with its Parent under which the Parent provides various business support services to the Company. Such support services include information technology and back-office services which encompasses settlement of transactions, legal, accounting, audit and human resources (see Note 4). ### 2. SIGNIFICANT ACCOUNTING POLICIES #### Securities Transactions The Company records securities transactions executed for its customers on a settlement-date basis. Transactions denominated in a foreign currency are translated into United States dollars at the prevailing rates of exchange on the date of transaction. ### Fixed Assets Fixed assets are stated at cost. Depreciation are provided using the straight-line method over the estimated economic lives of assets as follows: | | Estimated Life (Years) | |-----------------------------------|------------------------------------| | Computer software and hardware | 3 | | Telecommunications equipment | 3 | | Furniture, fixtures and equipment | 3 | | Leasehold improvements | Shorter of expected useful life or | | | term of lease | {7}------------------------------------------------ # JKLMNOMPMQROSRQQTUOSMONVTWMQMXLYQTOSMOUXZ[ # M\]^\_`Sab`c defghijklmfnkopkqfrsqrpltfuqkslqkvjhrsqshlrprslwqefjuhnsrshlrhxyslkltskoztthplqslw{qkl|ku|r }~}wps|kltfdefkihplqufthwlsf|srrpftqqhfrqsikqfkl|iklkwfiflqp|wiflqsqe ufrjftqqhqefosfomhpqthifhxfktepltfuqkslqkvjhrsqshldefkihplqqekqsrpoqsikqfomrprqkslf|xhukl sl|sns|pkopltfuqkslqkvjhrsqshlhuxhukoopltfuqkslqkvjhrsqshlrslqefkwwufwkqfthpo||sxxfuxuhiqefkihplq ufthwlsf| fxfuuf|slthifqkvfrkuf~~~~~ ¡ rqkqpqhumqkvukqfrkjjostkofqhqef|sxxfufltfrfqfflqefqkvkl|xslkltskoufjhuqslwkrfrhxkrrfqrkl| osksosqsfr¢sxkjjostkofdefufkoskqshlhx|fxfuuf|qkvkrrfqr¢sxklm¢srkrrfrrf|kl|knkopkqshlkoohkltf frqkosref|xhuqefjhuqshlhxqefkrrfqrxhuestesqsrihufosfomqekllhqqekqqef|fxfuuf|qkvkrrfqsoolhq fufkosf| # Qac£a\¤Qac£X¥¦§¨a©`\ªc defghijklmthlrs|furkooesweomHos«ps|slnfrqiflqrsqehuswslkoikqpusqsfrhxqeuffihlqerhuofrrqhf tkref«psnkoflqr # Uc`^¬Xcª§\_aª`c defjufjkukqshlhxkxslkltskorqkqfiflqslthlxhuisqmsqektthplqslwjusltsjofrwflfukoomkttfjqf|slqef lsqf|{qkqfrhxzifustkuf«psufriklkwfiflqqhikffrqsikqfrkl|krrpijqshlrqekqkxxftqqefufjhuqf| kihplqrhxkrrfqrkl|osksosqsfrkl||srtohrpufhxthlqslwflqkrrfqrkl|osksosqsfrkqqef|kqfhxqefxslkltsko rqkqfiflqztqpkoufrpoqrthpo||sxxfuxuhiqehrffrqsikqfr # Pa§©cª^Z`©§¨`®¯°`]`§¨`a\¤°`]`§¨a±©`¯Va²a±©`¬®^\_Yª^[Q¦cª^\_`®c zrklkwflqkl|³huusrofrrjusltsjkouhfu¢qefghijklmxktsosqkqfrsqrtprqhifu´~~ kµ¶·|fosnfumnrjkmiflq¸³¹µ¶·uftfsnfnrjkmiflq¸krsrhlom{ftpusqsfrxksof|qh|fosnfuufjufrflq uftfsnkofrxhurftpusqsfrrho|mtprqhifurqekqeknflhqffl|fosnfuf|¢qefrfqqofiflq|kqfekrjkrrf|¢kl| qeftkrehf|qhtprqhifurekrlhqffluftfsnf|{ftpusqsfrxksof|qhuftfsnfufjufrflqjkmkofrxhurftpusqsfr jputekrf|mtprqhifurlhqmfquftfsnf|¢qefrfqqofiflq|kqfekrjkrrf|¢kl|qeftprqhifureknflhqjks|xhu rpterftpusqsfr # Pa§®ºa©¦`»`ac¦®`\_`\ª yz{¼z{g½¾¿¢ÀÁÂÃÄÁÅÆÇÈÇÁÉÆÃÇÊÇËÌ¢frqkosrefrkxukifhuxhuifkrpuslwxksunkopfdekqxukifhu juhns|frkxksunkopfesfukutemqekqjushusqsfrqefsljpqrqhnkopkqshlqftels«pfrprf|qhifkrpufxksunkopf defesfukutemwsnfrqefeswefrqjushusqmqhplk|prqf|«phqf|justfrslktqsnfikufqrxhus|flqstkokrrfqrhu osksosqsfr·ÍfnfoÎifkrpufiflqr¸kl|qefohfrqjushusqmqhplhrfunkofsljpqr·ÍfnfoÏifkrpufiflqr¸ gkqfwhuskqshlsqeslqefnkopkqshlesfukutemsrkrf|pjhlqefohfrqofnfohxsljpqqekqsrrswlsxstklqqhqef xksunkopfifkrpufiflqµkopkqshlqftels«pfrprf|lff|qhikvsisfqefprfhxhrfunkofsljpqrkl| islsisfqefprfhxplhrfunkofsljpqrl|fuqesrrqkl|ku|¢xksunkopfsr|fxslf|krqeffvsqjustf¢huqef kihplqqekqhpo|fuftfsnf|qhrfooklkrrfqhujks|qhquklrxfukosksosqmslklhu|fuomquklrktqshlfqffl ikufqjkuqstsjklqrkrhxqefifkrpufiflq|kqf {8}------------------------------------------------ ## 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and, inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. #### Financial Instruments - Credit Losses FASB ASC 326, Financial Instruments - Credit Losses, requires a credit loss methodology, Current Expected Credit Losses ("CEC"), which dictates the recognition of credit losses, while also providing transparency about credit risk. The CECL methodology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for securities and other receivables at the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. For financial assets measured at amortized cost (e.g., cash and cash equivalents and receivables from customers), the Company has concluded that there are de minimis expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected losses. #### Lease Accounting The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a lease liability and a right of use asset at the commencement date of the lease liability is initially and subsequently recognized based on the present value of its future lease payments. The implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate at the commencement date for all leases. The Company recognizes assets and liabilities for operating and finance leases with terms of more than 12 months. An arrangement is deemed a finance lease if it effectively represents an installment purchase by the Company subject to the criteria outlined in FASB ASC 842. At December 31, 2025, the Company had no finance leases. ### Recently Issued and Effective Accounting Pronouncement In December 2023, FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09")." ASU 2023-09 requires additional annual disclosures including further disaggregation of information in the rate reconciliation, additional information {9}------------------------------------------------ ### 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) for reconciling items meeting a quantitative threshold, further disaggregation of income taxes paid and other required disclosures. The Company adopted ASU 2023-09 for the annual period beginning on January 1, 2025. See Note 3 for further information. ### 3. INCOME TAXES The Company's effective tax rate of 23.29% differs from the statutory rate of 21% due primarily to state and local taxes. The following table provides this reconciliation for the year ended December 31, 2025: | | Amount | Tax Rate | | |---------------------------------------------|------------|----------|--| | Tax at U.S. Federal statutory rate | \$ 888.942 | 21.00% | | | U.S. State and local taxes | 85.340 | 2.02% | | | Non deductible and non taxable items | 11,754 | 0.27% | | | Total income tax expense/effective tax rate | \$ 986.036 | 23.29% | | State and local taxes primarily relate to New York State and New York City, which together comprised greater than 50% of the state and local tax effect in the rate reconciliation for the year ended December 31, 2025. For the year ended December 31, 2025, income from continuing operations before income taxes consisted of domestic pre-tax income of \$4,233,056 and no foreign pre-tax income. The Company did not incur any foreign income taxes for the year ended December 31, 2025. The Company files a federal tax return on a standalone basis and combined New York State and New York City tax returns with its affiliates. The Company has calculated its financial statement taxes on a standalone basis pursuant to a tax sharing arrangement. At December 31, 2025, the amount due from Parent relating to New York State and New York City tax was approximately \$30,000. {10}------------------------------------------------ ## 3. INCOME TAXES (CONTINUED) At December 31, 2025, the Company had no federal, state and local net operating loss carryforwards. The Company's deferred tax asset of approximately \$220,000 at December 31, 2025, is related to deferred compensation and rent. At December 31, 2025, the Company had no valuation allowance since management believes that realization of the Company's deferred tax assets is more likely than not based on 2025 earnings history and projected taxable income in 2026. | S
158.391 | |---------------| | 621,575 | | 779.966 | | | | (559,634) | | (559,634) | | ಳು
220,332 | | | The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes, which requires recognition of tax benefits or expenses on the temporary differences between the financial reporting and the tax basis of assets and liabilities. If appropriate, deferred tax assets are adjusted by a valuation allowance, which reflects expectations of the extent to which such assets are more likely than not expected to be realized. In accordance with FASB ASC 740, the Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. A tax position that fails to meet the more likely than not recognition threshold will result in either a reduction of current and deferred tax assets, and/or recording of current or deferred tax liabilities. The Company recognizes accrued interest and penalties, if applicable, related to income taxes as a component of income tax expense. As of December 31, 2025, the Company did not have any uncertain tax positions and did not have any interest accrued with respect to uncertain tax positions. As of December 31, 2025, the Company did not have any unrecognized tax benefits and no accrued interest or penalties related to unrecognized tax benefits. The Company made tax payments of \$710,000 for federal, \$117,000 for New York State and \$123,000 for New York City in 2025. The Company's federal, state and city income tax returns are closed to examination through 2021. {11}------------------------------------------------ ### 4. RELATED-PARTY TRANSACTIONS The Company entered into an SLA with its Parent and agreed to act as the U.S. "chaperoning" broker-dealer in accordance with Rule 15a-6(a)(3) under the Act, as defined. The SLA shall continue in effect until terminated by one of the parties with a 90-day notification. Under the SLA, the Company agrees to provide chaperoning services, effect securities transactions, distribute research analysis to U.S. institutional investors and provide general marketing assistance on behalf of its Parent in the U.S. During the year ended December 31, 2025, the Company paid a cash dividend of \$25,000,000 to its Parent. The dividend was recorded as a reduction of retained earnings in the accompanying statement of financial condition. The Parent is obligated to the Company in the amount of \$3,286,858 related to charges that have been incurred with respect to net amounts due for services rendered by the Company. Such amounts are due on demand. #### 5. DEFERRED COMPENSATION The Company participates in the Parent's deferred bonus plan whereby certain key employees are entitled to compensation payable in cash and shares of the Parent. Such compensation can be deferred up to three years and is subject to certain adjustments, as defined in the agreement. At December 31, 2025, the accrued bonus amounted to approximately \$692,083, of which approximately \$9,750 will be payable in 2026, \$7,500 will be payable in 2027, \$6,000 will be payable in 2028 and \$3,000 will be payable in 2029. The payment terms (deferral period and cash/share payout) of the 2025 bonus of \$665,833 have not been set by the Parent. {12}------------------------------------------------ # DANSKE MARKETS INC. (A Wholly-Owned Subsidiary of Danske Bank A/S, Denmark) Notes to Financial Statement December 31, 2025 (expressed in U.S. dollars) #### LEASES 6. The Company leases office space under an operating lease expiring in February 2032. In accordance with the terms of the lease agreement, the Company has received a ten-month rent abatement as well as options to terminate the lease on the fourth anniversary of the Rent Commencement Date and the seventh anniversary of the Rent Commencement Date. Because the Company is not reasonably certain to exercise these termination options, the associated payments under these options are not included in lease payments used to determine lease liability. Lease expense is recognized on a straight-line basis over the lease term. At December 31, 2025, the Company had a right of use asset of \$2,445,301 and a lease liability of \$2,715,951 on the accompanying statement of financial condition. Future minimum lease payments under the operating lease recorded on the statement of financial condition at December 31, 2025, are as follows: | Year ending December 31 | Amount | | | |----------------------------------|--------------|--|--| | 2026 | S
446,376 | | | | 2027 | 468,518 | | | | 2028 | 472,946 | | | | 2029 | 472,946 | | | | 2030 | 472,946 | | | | Thereafter | 551,770 | | | | Total minimum lease payments | 2,885,502 | | | | Less: Present value discount | (169,551) | | | | Present value of lease liability | \$ 2,715,951 | | | The remaining lease term and discount rate at December 31, 2025 is as follows: | Remaining lease term: | 6 years and 2 months | |-----------------------|----------------------| | Discount rate: | 2.01% | {13}------------------------------------------------ # 7. SEGMENT REPORTING The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including acting as agent or riskless principal broker in the purchase and sale of foreign equities and debt securities between U.S. institutional investors and its Parent under Securities and Exchange Commission Rule 15a-6, acting as agent for its Parent in interest rate derivative and foreign exchange transactions with U.S. and non-U.S. customers of its Parent, participating in securities underwritings and providing merger and acquisition advisory services. The Company has identified its President and CEO as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company, Additionally, the CODM uses excess net capital (see Note 10), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The measure of segment assets is reported on the statement of financial condition as total assets. ### 8. FAIR VALUE MEASUREMENTS The Company's assets recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 2. The following table presents information about the Company's assets measured at fair value as of December 31,2025: | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | Significant Other
Observable Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Balance
December 31,
2025 | | |---------------------|----------------------------------------------------------------------------|------------|-----------------------------------------------------|--|----------------------------------------------------|--|---------------------------------|------------| | Assets | | | | | | | | | | US Treasury Bills | ಕಾ | 33,113,491 | ಕೆ | | S | | સ્ત્ર | 33,113,491 | | Total at fair value | S | 33,113,491 | ಿತ | | S | | S | 33,113,491 | {14}------------------------------------------------ #### 9. NET CAPITAL As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule (Rule 15c3-1) of the Securities and Exchange Commission, which requires that the Company maintains minimum net capital. The Company has elected to use the alternative method, which requires that the Company maintain minimum net capital, as defined, equal to the greater of \$250,000 or 2% of customer debit items, as defined. At December 31, 2025, the Company had net capital of \$32,141,587, which exceeded its requirement of \$250,000 by \$31,891,587. ### 10. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK Credit risk is the amount of accounting loss the Company would incur if a counterparty failed to perform its obligation under contractual terms. All of the clearing and depository operations for the Company are performed by the Parent. The Parent and the Company review, as considered necessary, the credit standing of the counterparties with which the Company conducts business. The Company's exposure to credit risk associated with the nonperformance by the counterparties in fulfilling their obligations pursuant to securities transactions can be directly impacted by volatile securities markets, credit markets and regulatory changes. The Company maintains its cash accounts at two commercial banks. Amounts held in a single account may at times exceed the insurance limit established by the Federal Deposit Insurance Corporation. ### 11. SUBSEQUENT EVENTS The Company has evaluated events that have occurred subsequent to December 31, 2025, and through February 24, 2026. There have been no material subsequent events that occurred that would require disclosure in this report or would be required to be recognized in the statement of financial condition as of December 31, 2025. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.