# JK SECURITIES, INC. X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: JK SECURITIES, INC. - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001146266-20-000001 - 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/1146266/000114626620000001/JKSECAUDITEDFINANCIALS2019.pdf --- {0}------------------------------------------------ | | UNITEDSTATES
SECURITIES ANDEXCHANGE COMMISSION
Washington, D.C. 20549 | | OMB APPROVAL
3235-0123
OMB Number:
August 31, 2020
Expires:
Estimated average burden | |--------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------|-----------------------------------------------------------------------------------------------------| | | ANNUAL AUDITED REPORT | | hours per response 12.00 | | | FORM X-17A-5 | | | | | PART III | | SEC FILE NUMBER | | | | | 8-53652 | | | FACING PAGE | | | | | Information Required of Brokers and Dealers Pursuant to Section 17 of the | | | | | Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | | | REPORT FOR THE PERIOD BEGINNING | 01/01/19 | AND ENDING | 12/31/19 | | | MM/DD/Y Y | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: JK Securities, Inc. | | | OFFICIAL USE ONLY | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | 1280 Singer Dr | | | | | Singer Island | (No. and Street) | | 33404 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | Jonathan Kenney | | | 708/955-0794
(Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Berkower, LLC | | | | | | (Name - if individual, state last, first, middle name) | | | | 517 Route One | lselin | NJ | 08830 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | Certified Public Accountant | | | | | Public Accountant | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | FOR OFFICIAL USE ONLY | | | \*Claims for exemption from the requirement that the anmal report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2) SEC 1410 (11-05) 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 currently valid O {1}------------------------------------------------ #### OATH OR AFFIRMATION | Jonathan Kenney | , swear (or affirm) that, to the best of | | |------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--| | JK Securities, Inc. | my knowledge and belief the accompanying financial statement and supporting schedales perfaining to the firm of | | | of December 31 | 20 19 are true and correct. I further swear (or affirm) that | | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | classified solely as that of a customer, except as follows: | | | | MARY J MARTIKEZ | | | | Notary Public - State of Florida
Commission # GG 235448
wy Comm. Expires Jul 9, 2022
Sonded through National Notary Assn. | Signature | | | | 1186 | | | Notary Public | | | | This report ** contains (check all applicable boxes):
(a) Facing Page. | | | | (b) Statement of Financial Condition. | | | | of Comprehensive Income (as defined in §210.1-02 of Regulation S-X). | (c) Statement of Income (Loss) or, if there is other comprehensive in the period(s) presented, a Statement | | | (d) Statement of Changes in Financial Condition. | | | | | (c) Statement of Chunges in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital. | | | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15e3-3. | | | | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | | () A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c5-1 and the | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | consolidation. | (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | (I) An Oath or Affirmation. | | | | (m) A copy of the SIPC Supplemental Report. | | | | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous suddi | | \*\* For conditions of confidential treatment of certain portions of this filling, see section 240.17a-5(c)(3). {2}------------------------------------------------ #### **FINANCIAL STATEMENTS** #### **DECEMBER 31, 2019** {3}------------------------------------------------ #### **CONTENTS** #### **Page** | Report of independent registered public accounting firm | | |---------------------------------------------------------|-----------| | Statement of Financial Condition | 2 | | Statement of Income | 3 | | Statement of Cash Flows | 4 | | Statement of Changes in Shareholder's
Equity | 5 | | Notes to the Financial Statements | 6 –
11 | #### **SUPPLEMENTARY INFORMATION** | Computation of net capital under rule 15C3-1 of the Securities and
Exchange Commission | 12 | |-------------------------------------------------------------------------------------------|----| | Computation for determination of reserve requirement | 13 | | JK Securities, Inc.'s Exemption report | 14 | | Report of independent registered public accounting firm | 15 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Sale Shareholder of JK Securities, Inc. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of JK Securities, Inc. (the "Company") as of December 31, 2019, the related statements of income, changes in shareholder's equity, and cash flows for the year ended December 31, 2019, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present taily, in all material respects, the financial position of the Company as of December 31, 2019, and the results of Its operations and Its cash flows for the year ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm rogistered 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 and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whother due to error of fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining. on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Supplementary Information The supplementary information (Computation of Net Capital Under Rule 15:3-1 of the Securities and Exchange Commission and Computation of the Reserve Requirements (Exemption) and Information Relating to Possession or Control Under Rule 15c3-3) (the "Supplementary Information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Supplementary Information is the responsibility of the Company's management. Our audit procedures included determining whether the Supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Supplementary Internation. In forming our opinion on the Supplementary Information, we evaluated whether the Supplementary Including its form and content, is presented in confornity with 17 C.F.R.S. 240.17a-5. In our opinion, the Supplementary information is faily stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2017. Derknerer LL Berkower LLC Isolin, New Jersey February 27, 2020 Miami . Los Angeles . Cayman Islands {5}------------------------------------------------ #### **STATEMENTMENT OF FINANCIAL CONDITION** ### **DECEMBER 31, 2019** #### **ASSETS** | Cash | \$19,270 | |------------------------------------|--------------| | Securities owned | \$83,399 | | Other assets | \$4,159 | | Receivable from
clearing broker | \$179,828 | | | ------------ | | TOTAL ASSETS | \$286,656 | #### **LIABILITIES AND SHAREHOLDER'S EQUITY** \_\_\_\_\_\_\_\_\_\_ #### LIABILITIES | Payable to clearing broker | \$4,500 | |----------------------------------------------------------|-------------------------| | Accounts payable, accrued expenses and other liabilities | \$7,085
--------- | | TOTAL LIABILITIES | \$11,585
_________ | | SHAREHOLDER'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 | (\$342,220) | | Retained earnings | \$137,127 | | | ----------
\$275,071 | | TOTAL LIABILITIES AND SHAREHOLDER'S
EQUITY | __________
\$286,656 | | | _________ | The accompanying notes are an integral part of these financial statements PAGE 2 {6}------------------------------------------------ #### **STATEMENT OF INCOME** #### **YEAR ENDED DECEMBER 31, 2019** #### REVENUE | Trading gains and losses, net | \$277,186 | |---------------------------------------|------------------------------------------| | Unrealized gain on securities | \$1,032 | | Interest income | \$9,565 | | TOTAL REVENUE | ----------
\$287,783
__________ | | EXPENSES | | | Employee compensation | \$86,912 | | Clearing and execution costs | \$54,170 | | Rent,
occupancy and communications | \$18,834 | | Subscriptions | \$35,718 | | Professional fees | \$17,993 | | Insurance | \$24,407 | | Other operating expenses | \$45,473 | | TOTAL EXPENSES | ------------
\$283,507
___________ | | NET INCOME | \$4,276
__________ | The accompanying notes are an integral part of these financial statements {7}------------------------------------------------ #### **JK SECURITIES, INC. STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2019** | Cash flows from operating activities | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------| | NET INCOME | \$4,276 | | Adjustments to reconcile
net income to net cash provided
by
operating activities:
Depreciation | \$378 | | Change in assets and liabilities:
Increase
in receivable from clearing broker
Decrease
in securities owned
Increase in other assets
Decrease
in payable to broker
Decrease
in accounts payable, accrued expenses and other liabilities | (\$179,828)
\$287,164
\$4,900
(\$60,728)
\$6,367 | | Total Net Increase in Cash Flows from Operating activities | \$62,529 | | Cash flows from financing activities
Additional loan to shareholder
Decrease in Cash Flows from Financing Activities | (\$58,000)
(\$58,000) | | Net cash increase | \$4,529 | | Cash at beginning of year | \$14,741
________ | | Cash at end of year | \$19,270
________ | The accompanying notes are an integral part of these financial statements {8}------------------------------------------------ #### **JK SECURITIES, INC. STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY YEAR ENDED DECEMBER 31, 2019** #### **ADDITIONAL COMMON PAID-IN RETAINED DUE FROM STOCK CAPITAL EARNINGS STOCKHOLDER TOTAL** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ | Balance, January
1, 2019 | | \$1,000 \$479,164 | \$132,851 | (\$284,220) | \$328,795 | |-------------------------------|---------|-------------------|-----------|--------------------------------------------------------------------------------|-----------| | Net income | 0 | 0 | \$4,276 | (\$58,000)
________________________________________________________________ | (53,724) | | Balance, December
31, 2019 | \$1,000 | \$479,164 | \$137,127 | (\$342,220) \$275,071 | | The accompanying notes are an integral part of these financial statements {9}------------------------------------------------ # **1. Organization and nature 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, Inc.("FINRA"). The company's primary operation is proprietary 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-dealer, and promptly transmits all customer funds and securities to the clearing broker-dealer. The clearing broker-dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by the clearing broker-dealer. # **2. Summary of significant accounting policies** # **Use of 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 of revenue and expenses during the reporting period. Actual results could differ from those estimates. # **Cash and cash equivalents** Cash equivalents consist of highly liquid, short-term investments with maturities of 90 days or less. At times during the year, cash balances may exceed insured limits. # **Revenue recognition and securities owned** # **Revenue recognition** In accordance with ASC 606 "Revenue from Contracts with customers", revenue from contracts with customers is recognized when, or as the Company satisfies its performance obligations by transferring the promised service to the customer. The Company buys and sells securities on behalf of its Customers. {10}------------------------------------------------ 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 agreed upon and the risks and rewards of ownership have been transferred to/from the customer. Proprietary security transactions in Municipal securities are recorded on the trade date as if they had settled. Profit and loss arising from all security transactions entered into for the account and risk of the Company are recorded on a trade date basis. ## **SECURITIES OWNED** Securities owned, consisting of municipal bond securities, are valued at the last quoted bid price. See note 4 for fair value information. ## **Income taxes** 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, 2019, 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, 2019. In addition, there was no activity related to the Company's unrecognized tax benefits during the year ended December 31, 2019. # **Property and equipment** 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. {11}------------------------------------------------ # **Impairment of long-lived assets** 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. # **3. Property and equipment** Depreciation expense for the year ending 12/31/2019 was \$378. As of 12/31/2019, property and equipment with a cost of \$14,293 is fully depreciated. # **4. Fair value of financial instruments** 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 1 – 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 2 – 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. {12}------------------------------------------------ Level 3 – 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. 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 of input 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: | | FAIR | | |--------------------------------------------|----------|----------| | | VALUE | | | Description | 12/31/19 | LEVEL 2 | | State and Municipal Government obligations | \$83,399 | \$83,399 | 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 2 of the evaluation hierarchy. # **5. Receivable from and payable to broker** The Company clears its transactions through a clearing broker-dealer. The Company is required to maintain an inventory reserve account with the Company's Clearing broker 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. The receivable from the Clearing broker at 12/31/2019 was \$179,828. {13}------------------------------------------------ The amount payable to clearing broker is collateralized by securities owned by the Company. Pursuant to the clearing agreement with the Company's broker, the Company's long inventory which is limited to municipal bonds and corporate bonds, will not exceed 1 million US dollars. Clearance costs payable to the clearing broker at December 31, 2019 was \$4,500. # **6. Financial instruments with off-balance-sheet risk, contingencies and uncertainties** 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. In 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. In 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. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to nonperformance by the counterparty. The Company seeks to minimize the risk of loss procedures designed to monitor the credit worthiness of the counterparty and the transactions are executed properly by the clearing broker. {14}------------------------------------------------ ## **7. Related party transactions** ## **Due from stockholder** As of December 31, 2019, \$342,220 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. Such amount was classified in Shareholder Equity. ## **Related Party Transactions** The Company reimburses the shareholder for office space and utilities. The amount charged to the operations for the year ended December 31, 2019 was \$12,000 and \$2,643 respectively. # **8. Net capital requirements** The Company is a broker-dealer subject to the SEC's uniform Net 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 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2019, the Company had a net capital of \$268,416 which was \$168,416 in excess of its required net capital of 100,000. The Company's net capital ratio was 0.04 to 1 at December 31, 2019. # **9. Indemnifications** In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown as this would 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. Subsequent events** The Company has evaluated subsequent events from the balance sheet date through February 27, 2020, the date at which the financial statements were issued and determined there are no items to disclose. {15}------------------------------------------------ ## **JK Securities, Inc**. Supplementary information Pursuant to Rule 17A-5 of the Securities and Exchange Act of 1934 As of December 31, 2019 {16}------------------------------------------------ ### **JK Securities, Inc**. **Schedule 1 Computation of net capital under rule 15C3-1 Year ended December 31, 2019** | Total shareholder's equity | \$275,071 | |-----------------------------------------------------------------------------------|--------------| | Deductions and/or charges: | | | Non-allowable assets: | | | Furniture, equipment and leasehold improvements | \$0 | | Other assets | \$2,732 | | Net capital before
haircuts on proprietary positions | \$272,339 | | Haircuts on securities: | | | State and municipal government obligations | \$3,923 | | Net capital | \$268,416 | | Net capital requirement | \$100,000 | | Excess net capital | \$168,416 | | Aggregate indebtedness | | | Accounts Payable, accrued expenses and other liabilities | \$11,585 | | Total aggregate indebtedness | \$11,585 | | Ratio of aggregate indebtedness to net capital | 0.04
TO 1 | | Computation of basic net capital requirement | | | Minimum net capital required (6 2/3%
of aggregate indebtedness) | 772 | | Minimum dollar net capital required | \$100,000 | | Net capital requirement( greater of the two) | \$100,000 | | Excess net capital | \$168,416 | | Net capital less greater of 10% of total aggregate indebtedness
or | | | 120% of minimum dollar net capital requirement | \$148.416 | | Reconciliation with Company's computation (included in Part II of Form X-17A-5 as | | | of December 31, 2019: | | | Net capital as reported in Company's Part II (unaudited) Focus Report | \$268,416 | | Decrease in members Equity -due from stockholder | (\$342,220) | | Decrease in nonallowable assets -due from stockholder | \$342,220 | | Net Capital, as included in this report | \$268,416 | See report of independent registered Public Accounting Firm PAGE 12 {17}------------------------------------------------ ### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS AND INFORMATION RELATING TO POSSESSION AND CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION #### YEAR ENDED DECEMBER 31, 2019 ================================================================= #### **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS** The Company operates under the exemptive provisions of paragraph (k)(2)(ii) of SEC Rule 15c3-3. ### **INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS** The Company has complied with the exemptive requirements of Rule 15c3-3 and did not maintain possession or control of any customer funds or securities as of December 31, 2019. > See report of independent registered Public Accounting Firm PAGE 13 {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. §240.172-5, "Reports to be made the securities and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 F.C.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k): (2) (ii). - (2) The Company met the identified exemption provisions in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year without exception JK Securities, Inc. I, Jonathan Kenney, swear that, to my best knowledge and belief, this Exemption Report is true and accurate. By: President PAGE 14 {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) 517 Route One, Suite 4103 Iselin, 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.R § 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. § 240.15c3-3: (2)(i), (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, Inc.'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, Inc.'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)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Kerkouser Berkower LLC Iselin, New Jersey February 27, 2020 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.