# JK SECURITIES, INC. X-17A-5 (2019-03-01) — Broker-dealer annual report - Company: JK SECURITIES, INC. - Form: X-17A-5 - Filed: 2019-03-01 - Period: 2018-12-31 - Accession: 0001146266-19-000001 - CIK: 1146266 - File #: 8-53652 - Material weakness: No - Auditor: berkower, LLC - Auditor location: iselin, NJ - Contact: jonathan kenney - Phone: 708-955-0794 - Signed by: jonathan kenney (president) Original filing: https://www.sec.gov/Archives/edgar/data/1146266/000114626619000001/secaudit12312018.pdf --- {0}------------------------------------------------ **JTEDSTAT NDEXCHA GECOMMl 10** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours rres nse ...... 12.00 > SEC ALE NUMBER s-53652 **FACING PAGE** Information Required of Brokers and DeaJers Pursuant to Section 17 of the **ecorities** E **change Act of 1934 and R** le 17a-5 **Thereunder** | FOR Tl E PERIOD BE lN ING ___
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1280 Singer Dr. | | ARM I.D. NO. | | | | | o_ nd Street) | | | | | Singer Island | FL | | 33404 | | | ( I( | (Scat ) | | ode)
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Jona1han Kenney | TO
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7081955-0794 | | | | | | (An:.1. Code -T elephone
umber) | | | B.ACCO | ANT IDENTIFJCATIO | | | | | IND PE D ·NT PUBLI
Berkower
, LLC | C OU TANT who e opini n i contain | din Lhis Report• | | | | | rne - rfindmdual. | na.u: la.-rt, fir 1, m,ddlt: ,.,,,,,,) | | | | 517 Route One | lselin | NJ | 08830 | | | (Address) | ( lty) | (Swe) | ode)
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Public Accountant | | | | | | B
Public
ccouot.ant | | | | | | | | | | | | Accountant not resident in United | tales or any of its poss | sfon . | | | | | FOR OFFICIAL
USE ONLY | | | | | | | | | | | | | | | | • */aims/or exemption from the requirement 1h01 the annual report be covered by the opinion of an independent p11blic accountant must be supported by a statement of fact and ciramis lances relied on as the basis/or the exemption See Section 240 /7a-5(e}(2)* > Potential persons who are to respond to the collection of Information contained In this form are not required to respond unless the form displays a currenUy valid O11B control number . SEC 1410 (11-05) {1}------------------------------------------------ #### **0 T H OR AFFIRM TIO** | I Jonathan Kenney | | | , swear (or affirm) that, to the best of | | |--------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------|------------------------------------------|--| | my knowledge and belief the ace
JK Securities, Inc. | mpanying financial | tatement and supporting schedules pertaining to Lhe finn of | as | | | December 31
of | | , are true and correct.
l further swear (or affirm) that | | | | | | neither the company nor any partner, proprietor, prin ipaJ officer or director has any proprietary inLerc t in any account | | | clas ilied sol ly that of a usl mer, except as foJlows: | MJJl:f J MARTINEZ | | |--------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------| | Norary Publfc • State of Florid• | | | Commlulon GG 235+48 | | | | | | | Tille | | | | | | | | | | | 1 his report O
contains (check all applicable boxes): | | | B (a) Facing Page. | | | 0 (b)
tatemenL of Financial Condition. | | | 0 (c
, tatement of Income (Loss) | r. if there is other comprehensive income in tb.e peri d(s) pre ented a 1.atement | | e Income as defined in §210.1-02 of ReguJalion -
of Comprehensi | ). | | (d)
'tatement of Chang
in Financial Condition.
.~ | | | taternent of Changes in
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~ | ole Pr prie~ rs' Capital. | | §
in Liabilities
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(1) | ubordinated to
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(g) | | | (h)
amputation for Determination of Re erve Requirements Pursuant to Rul | 15c -3. | | (i
Information Relating to the Pose | sion or Control Requirements Und r Rule 15c3-3. | | 0 G) A Rcconcilialion | including appropriate explanation of the amputation of Net
apita.l
nder Rule 1 Sc3-l and the | | Computation for Determination of the R | erve Requireme nts
ndcr Exhibit A of Rule L5c3-3. | | 0 (k) A Reconci
liation between the audited and unaudited
consolidation. | tatements of Financial
ondilion with respect to methods of | | (I)
n Oath or
ffirmati n. | | | §
(m) A copy of th
SIPC
upplemcnta l Report. | | | | (n) A report describing any material inadequacies found to exist or found to have existed since th date of the previous audit. | | | | •• *For conditions of confid1m1ial treatment of certain portions of this filing, see ec1ion 2-10. I 7a-5 (e)(J).* {2}------------------------------------------------ # lK SECURITIES. INC. FINANCIAL STATEMENTS DECEMBER 31. 2018 {3}------------------------------------------------ #### JKS\_ECURITJ~NC # CONTENTS | Report of independent
registered
public accounting
firm | | |------------------------------------------------------------------|------| | Statement
of Financial Condition | 2 | | Statement
of Income | 3 | | Statement
of Cash Flows | 4 | | Statement
of Cbanges in Shareholder's
Equity | 5 | | Notes to the Financial Statements | 6-11 | | Computation
of net capital under rule 15C3-1 of the Securities
and | | |--------------------------------------------------------------------------|----| | Exchange Commission | 12 | | Report of independent
registered
public accounting
firm | 13 | | JK Securities,
lnc.
's Exemption report | 14 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) lselin, NJ 08830 **t!** (732) 781-2712 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Sole Shareholder of JK Securities, Inc. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of JK Securities, Inc. (the acompany") as of December 31, 2018 and the related notes (collectively referred to as the ''financial statement9). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2018 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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 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 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 the Company's auditor since 2017. Berkower LLC lselin, New Jersey February 27, 2019 **Mhuni** • **Los Ang** les • **ym.an lsbnd** {5}------------------------------------------------ #### **DECEMBER.ll, .2.fil\_8\_** # **ASSETS** | Cash | \$14,741 | |-----------------------------------------------------------------|-------------| | Securities owned at market value | 370,563 | | Property and equipment | \$378 | | net of accumulated depreciation and amortization
of \$13,915 | | | Other assets | \$9,059 | | TOT AL ASSETS | \$394,741 | | | | | LIABILITIES AND SHAREHOLDEltS
_EQUITY | | | ES | | | Payable to broker | \$65,228 | | Accounts payable, accrued expenses and other liabilities | \$717 | | | | | TOTAL LIABILITIES | \$65,945 | | SHAREH LDER'S EQUITY | | | Common stock, \$2 par value: 1,000 shares authorized | | | 500 shares issued and outstanding | \$1,000 | | Additional paid-in-capital | \$479,164 | | Due from stockholder | (\$284,220) | | Retained earnings | \$132,852 | | | \$328,796 | | TOTAL LLABILITIES AND SHAREHOLDER'S EQUITY | \$394,741 | | | | The accompanying notes are an integral part of these financial statements {6}------------------------------------------------ #### **JK SECJJRI IESJ.N\_C.** #### **ST ATEMENJ\_\_Q\_E\_\_JNCO\_\_ME** #### **YE R ENDED DECEMBER 3.1J018** # REE UE | Trading gains and losses, net | \$434,086 | |------------------------------------|-----------| | Unrealized gain on securities | \$4,941 | | Interest [ncome | \$9,010 | | | | | TOTAL REVENUE | \$448,037 | | EXPENSES | | | Employee compensation | \$205,009 | | Clearing and execution costs | \$60,482 | | Rent, occupancy and communications | \$16,687 | | Subscriptions | \$37,888 | | Professional fees | \$18,679 | | Insurance | \$11,977 | | Other operating expenses | \$48,565 | | TOTAL EXPENSES | \$399,287 | | NET INCOME | \$48,750 | | | | The accompanying notes are an integral part of these financial statements Page 3 {7}------------------------------------------------ ### **J..KSEC.UJ:UIJES,JNC. STATEMENT OF CAfilLELOWS Q\_E.\_C\_EMB HR..3.1...2018** | NET INCOME | \$48,750 | |----------------------------------------------------------------------|------------------------| | Adjustments to reconcile net income to net cash used | | | in operating activities:
Depreciation | \$9,017 | | Change in assets and liabilities: | | | Decrease in receivable from broker | \$15,926 | | Increase in securities owned
r ncrease in other assets | (\$119,739)
(4,960) | | Increase in payable to broker | \$60,728 | | Increase in accounts payable, accrued expenses and other liabilities | (\$15,101) | | Net cash used in operating activ
ities | (\$5,379) | | | | | Net decrease in cash | (\$5,379) | | Cash at beginning of year | \$20,120 | | Cash at end of year | \$14,741 | The accompanying notes are an integral part of these financial statements {8}------------------------------------------------ #### **IKSECURIIlE\_\_SJ NL STATEMENT OF CHANGES IN SJIAREH LD R'S EQUITY YEA.llEND.E.Q.DECE\_MBER 31. 20.18** ### **ADDITIONAL COMMON PAID-IN RETAINED DUE FROM S OCLCAf.lIAL EARNINGS STOCKHOLDER TOTAL** | Balance, January 1, 2018 | \$1,000 | \$479,164 | \$84,102 | (\$284,220) | \$280,046 | |----------------------------------------------|---------|-----------|-----------|-------------|-----------| | Net income | 0 | 0 | \$48,750 | 0 | 0 | | Balance, December 31, 2018 \$1,000 \$479,164 | | | \$132,852 | (\$284,220) | \$328,796 | The accompanying notes are an integral part of these financial statements PAGES {9}------------------------------------------------ ### **J K SEQJJUTI ESJ NC, NOTES TO\_flNANCIAllTATEMENTS D\_\_E\_C\_E.MB ER..3 UQ.18** # **1. ~f on\_and na.t.ure of operations** JK Securities, Inc.(the "Company''), is an Illinois subchapter S corporation established on September 7, 2001. The Company is registered as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, lnc.("FlNRA"). The company's primary operation is propr1etary trading of municipal bond securities. The Company operates under the provisions of paragraph (k) (2) (ii) of rule 15c3-3 of the Securities Exchange Act of 1934 and, accordingly, is exempt from the remaining provisions of that rule. Essentially, the requirements of paragraph (k) (2) (ii) provide that the company clear all transactions on behalf of customers on a fully disclosed basis with clearing broker-dealers, and promptly transmit all customer funds and securities to the clearing broker-dealers. The clearing broker-dealers carry all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by clearing broker-dealers. ## **2. Summary of sign\_ificant accounting pruicie** # U **e estimates** The preparation of financial statements in conformity with generally accepted accounting principles 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 ofrevenue and expenses during the reporting period. Actual results could differ from those estimates. #### **\_C\_a..s.h\_arulJ ~ash equiwlents** Cash equivalents consist of highly liquid, short-term investments with maturities of 90 days or Jess. #### **Reven~ecognition and securities owned** Securities transactions are recorded on the trade date as if they had settled. Securities owned, consisting of municipal bond securities, are valued at the last quoted bid price. See note 4 for fair value information. {10}------------------------------------------------ On 01/01/18 the Company adopted ASU No. 2014·09, "Revenue from contracts with customers (Topic 606)". The Company's adoption of the new standard had no effect on Company earnings. #### **lnco~** The Company with the consent of its shareholder has elected under the internal revenue code to be an S corporation. In lieu of corporation income taxes, the stockholders of an S corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for federal and state income taxes has been included in the financial statements. As of December 31, 2018, no audits were in process by a taxing jurisdiction that, if completed during the next 12 months, would be expected to result in material on recognized tax benefits. The Company is no longer subject to U.S. federal and state income tax examination for the years before 2015. The Company did not have any gross unrecognized tax benefits or accrued interest and penalties relating to unrecognized tax benefits at December 31, 2018. In addition, there was no activity related to the Company's unrecognized tax benefits during the year ended December 31, 2018. #### **P...roperty and eq\_gjpment** Property and equipment is stated at cost Depreciation and amortization is computed using an accelerated method over the estimated useful lives of the related assets, which ranges from 3 to 7 years. The difference between depreciation for financial statement purposes and tax accounting purposes is not material. #### **IIJll).a~nLof fun~e d as~** The Company investigates potential impairments of its long-lived assets on an exception basis when evidence exists that events or changes in circumstances may have made recovery of an asset's carrying value unlikely. An impairment loss is recognized when the sum of the expected undiscounted future net cash flows is less than the carrying amount of the asset No such losses have been identified. {11}------------------------------------------------ #### **3. P-ro e cy\_\_and e{l]J.\_iJrn}..ent** | Property and equipment
consists of the following: | | |------------------------------------------------------|--| | Property and equipment | | | Less: Accumulated depreciation | | | Total | | #### **4. fair value of finandalJnstrurnents** The Company follows GAAP with respect to fair value measurements, which among other things, requires enhanced disclosure about financial instruments that are measured and reported at fair value. Fair value of a financial instrument is the amount at which the Company believes the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. In accordance with GAAP, investments measured and reported at fair value are classified and disclosed based on observability of inputs used in the determination of the fair values in one of the following categories: Level I - Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments included in Level I include listed equities and listed derivatives. As required by GAAP. the Company does not adjust the quoted price for these investments, *even* in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Investments that are generally included in this category include fixed income securities. Level 111 - Pricing inputs *are* unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs used in the determination of fair value require significant management judgment or estimation. General and limited partner interest, certain loans and bonds and collateralized loan obligations are examples of investments included in this category. PAGES {12}------------------------------------------------ In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy . In such cases and investments level within the fair value hierarchy is based on the lowest level ofinput that is significant to the fair value measurement. The Company's assessment of the significance of a particular input used to determine the fair value measurement in its entirety requires judgment and includes factors specific to the investment. A summary of the fair value of assets measured at fair value on a recurring basis follows: | CARRYING SIGNIFICANT OTHER | | |-----------------------------|--| | AMOU T AT OBSERVABLE INPUTS | | | 2 31 1
LEVEL II | | | | | State and Municipal Government obligations \$370,563 \$370,563 The Company's primary revenue is derived from the trading of the state and municipal government obligations. See note 2 revenue recognition and securities owned. Market approach was used as a valuation technique. State and municipal government obligations are generally valued using broker quotes or pricing services based on similar instruments in active markets and are included in Level lI of the evaluation hierarchy. The amount of total gain for the period included in the earnings attributable to the change in unrealized gain relating to assets still held at the reporting date. Total unrealized gain included in earnings as of December 31, 2018 was \$4,941. The Company clears its transactions through other broker-dealers. The Company is required to maintain an inventory reserve account with two of the Company's brokers with a balance at all times equal to or greater than the margin requirement on the underlying securities. Municipal bonds have 15% margin requirement and corporate bonds have 20% margin requirement. The interest accrues at a yearly interest rate of 4 1/4% if the margin loan is above the inventory *reserve.* {13}------------------------------------------------ The amount payable to clearing brokers is collateralized by securities owned by the Company. Pursuant to the clearing agreement with the Company's brokers, the Company's long inventory which is limited to municipal bonds and corporate bonds, wiJl not exceed 1 milJion US doIJars. Amounts payable to the broker at December 31, 2018, consist of the following: | | | Pa
ble | |----------------------------------------------|-----|-----------| | Clearance cost payable | | \$4,500 | | Payable to broker | (1) | 60 728 | | | | \$65,228 | | | | | | (1) Securities collateralized are \$370,563. | | | ## **6. Financial instruments\_\_\_witb off-balance-sheet risk. contingencle.s. a.ruL:un~rtai11.ti.es** Securities transactions are introduced to and cleared through a clearing broker. Under the terms of its clearing agreement, the Company is required to guarantee the performance in meeting contracted obligations. rn conjunction with the clearing broker, the Company seeks to control the risks of activities and is required to maintain collateral in compliance with various regulatory and internal guidelines. Compliance with the various guidelines is monitored daily and, pursuant to such guidelines, the Company may be required to deposit additional collateral or reduce positions when necessary. The Company is engaged in various trading and brokerage activities whose counterparties primarily include broker-dealers, banks, and other financial institutions. ln the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the credit worthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty with which it conducts business. Market risk arises due to fluctuations in interest rates and market prices that may result in changes in the values of trading instruments . The Company manages its exposure to market risk resulting from trading activities through its risk management function. Risk reports are produced and reviewed daily by management to mitigate market risk. {14}------------------------------------------------ The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to nonperformance by its customers. The Company seeks to minimize the risk of loss procedures designed to monitor the credit worthiness of its customers and the transactions are executed properly by the clearing broker. # **Due from stockh\_old.e..r** As of December 31, 2018, \$284,220 was due from the president of the Company, who is also a stockholder and is payable on demand. Interest does not accrue and there is no maturity date. #### **OperatlngJease** The Company leases office space on a month to month basis from the president of the Company. Rental and utility expense charged to the operations for the year ended December 31, 2018 was \$13,190 and \$1,955 respectively. #### **8. N t a\_pital requirements** The Company is a broker-dealer subject to the SEC's uniform et Capital Rule(SEC rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 1SC3-1 also provides that eqwty capital may not be withdrawn or cash dividends paid if the resulting net capital ratio wouJd exceed 10 to 1. At December 31, 2018, the Company had a net capital of \$306,945 which was \$206,945 in excess of its required net capital of 100,000. The Company's net capital ratio was 0.02 to 1 at December 31, 2018. #### **9. Indemnification s** fn the normal course of business, the Company enters into contracts that contain a variety ofrepresentations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown as this wouJd involve future claims that may be made against the Company that have not yet occurred. The Company expects the risk of loss to be remote. # **10. Subse~nteY..en..ts** The Company has evaluated subsequent events from the balance sheet date through February 27, 2018, the date at which the financial statements were issued and determined there are no items to disclose. {15}------------------------------------------------ Supplementary information Pursuant to Rule 17 A-5 of the Securities and Exchange Act of 1934 As of December 31, 2018 {16}------------------------------------------------ ### JK\_S curities, Inc. S\_medyle\_l Co..mputation\_nLnet capital un der rule 15C3-1 Ye~nded Dece mber 31, 2018 | Total shareholder's
equity | \$328
,796 | |--------------------------------------------------------------------------|---------------| | Deductions and/or
charges: | | | Non-allowable assets:
Furniture, equipment and leasehold improvements | \$378 | | | 2 732 | | Other assets
Net capital before haircu son proprietary
positions | \$ 25&8_6 | | Haircuts on securities: | | | State and municipal government
obligations | \$18,.lll | | Net capital | \$306,945 | | Net capital requirement | \$100,000 | | Excess net capital | \$206,945 | | Aggregate indebtedness | | | Accounts Payable, accrued expenses and other liabilities | \$5,217 | | Total aggregate indebtedness | \$~ | | Ratio of aggregate indebtedness
to net capital | 0.02 TO 1 | | Computation of basic net capital requirement | | | Minimum net capital required (6 2/3% of aggregate indebtedness) | 348 | | Minimum dollar net capital required | \$100,000 | | Net capital requirement(
greater of the two) | \$1.0J1000 | | Excess net capital | \$206.945 | | Net capital less greater of 10% of total aggregate indebtedness
or | | | 120% of minimum dollar net capital requirement | \$186.94S | | | | NOTE: There are no material differences between the above computation of net capital and the corresponding computation as submitted by the Company with the unaudited Form X-17a-5 as of December 31, 2018 *A* computation of reserve requirement is not applicable to JK Securities, Inc. as the Company qualifies for exemption under Rule 1Sc3-3(k)(2)(ii). Information relating to possession or control requirements is not applicable to )K Securities, Inc. as the Company qualifies for exemption under Rule 15c3-3(k)(2)(ii). See report of independent registered Public Accounting Firm {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) 517 Route One, Suite 4103 lselin, NJ 08830 ~ (732) 781-2712 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Sole Shareholder of JK Securities , Inc. We have reviewed management's statements, included In the accompanying JK Securities, Inc. Exemption Report prepared as required by C.F.A § 240.17a-5(d)(1) and (4) in which **(1)** JK Securities, Inc. identified the following provisions of 17 C.F.R. § 15c3-3 (k) under which JK Securities, Inc. claimed an exemption from 17 C.F.R. § 240.1 Sc3-3: (2)(11), (the "Exemption Provisions") and (2) JK Securities, Inc. stated that JK Securities, Inc. met the identified Exemption Provisions throughout the most recent fiscal year without exception. JK Securities, lnc.'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 JK Securities, lnc.'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 paragraphs (k}(2J(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Berkower LLC lselin, New Jersey February 27, 2019 **:fiami** • Lo ngclcs • **ayman** I land {18}------------------------------------------------ #### JK Securities, Inc. 1280 Singer Dr Singer Island, FL 33404 #### JK SECURITIES, INC'S EXEMPTION REPORT JK Securities, Inc. is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.l 7a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-S(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 F.C.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.1Sc3-3 (k): (2) (ii). - (2) The Company met the identified exemption provisions in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year without exception JK Securities, Inc. I, Jonathan Kenney, swear that, to my best knowledge and belief, this Exemption Report is true and accurate. By: ,,(\_::. Pr~t Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.