# SUN'S BROTHERS SECURITIES INC. X-17A-5 (2026-02-02) — Broker-dealer annual report - Company: SUN'S BROTHERS SECURITIES INC. - Form: X-17A-5 - Filed: 2026-02-02 - Period: 2025-09-30 - Accession: 0001196889-26-000003 - CIK: 1196889 - File #: 8-65595 - Type: Broker-dealer - Material weakness: No - Auditor: OHAB AND COMPANY, PA - Auditor location: MAITLAND, FL - Contact: MINWON B YANG - Phone: 8083863551 - Email: sbs@hawaii.rr.com - Website: rr.com - Signed by: MINWON B YANG (PRESIDENT) Original filing: https://www.sec.gov/Archives/edgar/data/1196889/000119688926000003/X-17A-5.pdf --- {0}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden # ANNUAL REPORTS FORM X-17A-5 PART III | hours per response:
12 | |---------------------------| | SEC FILE NUMBER | | 8-65595 | FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 filing for the period beginning 10/01/2024 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: SUN'S BROTHERS SECURITIES, INC. TYPE OF REGISTRANT (check all applicable boxes): © Broker-dealer □ Check here if respondent is also an OTC derivatives dealer AND ENDING 09/30/25 ADDRESS OF PRINCIPAL PLACE OF BUSINESS』(Do not use a P.O. box no.) # 6770 HAWAII KAI DRIVE #209 | | (No. and Street) | | | |---------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------| | HONOLULU, HI 96825 | | | | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | MINWON YANG | SBS@HAWAII.RR.COM | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | OHAB AND COMPANY, PA | | | | | | (Name - if individual, state last, first, and middle name) | | | | 100 E SYBELIA AVENUE, SUITE 130 MAITLAND | | FL | 32751 | | (Address) | (City) | (State) | (Zip Code) | | JULY 28, 2004 | | 1839 | | | (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 be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on an incepens public CER 240 17-5 (cV1Vii) if see linchla 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}------------------------------------------------ #### QATH OR AFFIRMATION I, MINWON YANG swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of SUN'S BROTHERS SECURITIES INC. as of al30 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. #### NOTARY CERTIFICATE ON NEXT PAGE Signatur Title PRESIDENT Notary Public This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [i) Computation of tangible net worth under 17 CFR 240.18a-2. - (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. - (I) 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) Reconcliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the creserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - = (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 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 report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - CEP 240 17-5 617 SEP 240 an examination of certain statements in the compliance report 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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - [ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a 5(d)(2), as applicable {2}------------------------------------------------ STATE OF HAWAII CITY AND COUNTY OF HONOLULU # Acknowledgment Certificate for an Organization 1 ss On this | 2 - day of \_ S = 1 - - 1 - 1 - 1 - 1 - 1 - before me personally syom (or a fimed), did son the le = 1 - 1 - 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / 1 / to be the free act of the entity. NOTARY Stephen Adler, Notary Rublic PUBLIC My commission expires: 05/T8-2027 A 45 Comm No ATE OF HAN Document description: Annuel feep orts For x-1719-5 P-- FITT Date of document: 01/12/2016 Number of pages: 762 Date of notarization: 01/12/2022 2211218 HENADE Stephen Adler, Notary Public NOTARY PUBLIC ----- State of Hawaii, First Circuit Court Commission No. 03-267 ![](_page_2_Picture_5.jpeg) {3}------------------------------------------------ SUN'S BROTHERS SECURITIES, INC. FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO RULE 17a-5 SEPTEMBER 30, 2025 CONFIDENTIAL {4}------------------------------------------------ #### CONTENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FINANCIAL STATEMENTS STATEMENT OF FINANCIAL CONDITION STATEMENT OF OPERATIONS STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SCHEDULE I - SCHEDULE OF COMPUTATION OF NET CAPITAL UNDER SEC RULE 15c3-1 SCHEDULE II & III - EXEMPTIONS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - EXEMPTION REPORT {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland. FL 32751 Certified Public Accountants Email: pam a ohabeo.com Telephone 407-740-7311 Fax 407-740-6441 # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of Sun's Brothers Securities, Inc. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Sun's Brothers Securities, Inc. as of September 30, 2025, the related statements of operations, changes in shareholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Sun's Brothers Securities, Inc. as of September 30, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America, #### Basis for Opinion These financial statements are the responsibility of Sun's Brothers Securities, Inc. management. Our responsibility is to express an opinion on Sun's Brothers Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Sun's Brothers Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion, #### Auditor's Report on Supplemental Information The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements under Rule 15c3-3 of the Securities Exchange Commission and Schedule III, Information Relating to the Possession or Control Requirements under Rule 15c3-3 of the Securities Exchange Commission have been subjected to audit procedures performed in conjunction with the audit of Sun's Brothers Securities, Inc.'s financial statements. The supplemental information is the responsibility of Sun's Brothers Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements under Rule 15c3-3 of the Securities Exchange Commission and Schedule III, Information Relating to the Possession or Control Requirements under Rule 15c3-3 of the Securities Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole, that and company, and We have served as Sun's Brothers Securities, Inc.'s auditor since 2022. Maitland, Florida January 11, 2026 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION SEPTEMBER 30, 2025 #### ASSETS | Cash in bank | \$
4,532 | |--------------------------------------|---------------| | Receivable from clearing broker | 7,400 | | Receivable mutual fund-12B-1 fees | 1,465 | | Office equipment: net of accumulated | | | depreciation of \$19,843, | 996 | | Deposit with clearing Broker-Dealer | 106,733 | | Tax Receivable | 112 | | Total Assets | \$
121,238 | #### LIABILITIES AND SHAREHOLDER'S EQUITY | Liabilities | | |--------------------------------------------|---------------| | Accounts payable and accrued expenses | \$
32,786 | | Commissions payable - reps | 2,598 | | Line of Credit | 12,149 | | Total Liabilities | 47,533 | | | | | Shareholder's equity: | | | Common stock, \$1.00 par value; 1,000 | | | Shares authorized, issued and outstanding | 1,000 | | Additional paid-in capital | 133,707 | | Retained earnings (Deficit) | (61,002) | | Total Shareholder's Equity | 73,705 | | | | | Total Liabilities and Shareholder's Equity | \$
121,238 | | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ #### STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2025 | Revenue: | | |--------------------------------|---------------| | Commissions-clearing | \$
114,927 | | Commissions-mutual fund trails | 16,694 | | Other revenue-interest | 2,730 | | | 134,351 | | | | | Expense: | | | Payroll expenses | 38,000 | | Payroll taxes | 3,864 | | Depreciation | 388 | | Interest expense | 1,636 | | Clearing & execution charges | 29,863 | | Commission expense - reps | 4,642 | | Hawaii General Excise Tax | 5,939 | | Legal & professional | 11,806 | | Employee benefits | 11,197 | | Meals & entertainment | 8,969 | | Accounting | 8,562 | | Telephone | 5,096 | | Due and subscriptions | 4,449 | | Other operating expenses | 3,372 | | Total Expenses | 137,783 | | Income before taxes | (3,432) | | Taxes-Federal & State | (208) | | Net Income | (3,640) | | | \$ | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ | | Share | Amount | Additional
Paid-in
capital | Retained
Earnings/
(Accumulated
Deficit) | Accumulated
Other
Comprehensive
Income(loss) | | Total | |-------------------------------------------------------------------|-------|-------------|----------------------------------|---------------------------------------------------|-------------------------------------------------------|---|---------------------| | Balance,
beginning of
year | 1,000 | \$
1,000 | \$
158,307 | \$
(57,362) | \$ | | \$
101,945 | | Capital
Contribution | | | 9,500 | | | | 9,500 | | Capital
Distribution
Net Income | | | (34,100) | (3,640) | | | (34,100)
(3,640) | | Change in fair
value of
securities
Available for
sale | | | | | | | | | Balance, end of
year | 1,000 | \$
1,000 | \$
133,707 | \$
(61,002) | \$ | 0 | \$
73,705 | #### STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY FOR THE YEAR ENDED SEPTEMBER 30, 2025 The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ #### STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2025 | Cash Flows from operating activities: | | | | |----------------------------------------------------------------------------|----------------|--|--| | Net Income (loss) | \$
(3,640) | | | | Adjustments to reconcile net loss to net cash | | | | | provided by operations: | | | | | Increase in wages Payable | 13,804 | | | | Depreciation | 388 | | | | Decreased in receivable from clearing broker | 5,475 | | | | Decrease in commissions receivable | 30 | | | | Increase in deposit with clearing account | (2,730) | | | | Increase in accounts Payable | 1,948 | | | | Increase in commission payable | 62 | | | | Decrease in rent payable | (11,900) | | | | Increase taxes payable | 2,058 | | | | Net Cash Provided by Operating Activities | 5,495 | | | | Cash Flows from Investing Activities | | | | | Purchase of fixed assets-computer | (840) | | | | Net Cash Provided by Investing Activities | (840) | | | | Cash flows from financing activities: | | | | | Capital Contribution | 9,500 | | | | Capital Withdrawal | (34,100) | | | | Decrease in line of credit | (2,423) | | | | Net Cash Provided by financing activities | (27,023) | | | | Net change in Cash | \$
(22,368) | | | | Cash at Beginning of Year | \$
26,900 | | | | Cash at End of Period | \$
4,532 | | | | Supplemental Information | | | | | Interest Paid | \$1,636 | | | | Taxes Paid | \$2,427 | | | | The accompanying notes are an integral part of these financial statements. | | | | {10}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS For the Year Ended September 30, 2025 ## Note A – Summary of Significant Accounting Policies: ## Nature of Operations: Sun's Brothers Securities, Inc. (the "Company") is a Hawaii corporation formed on September 4, 2002. The Company is registered with the U.S. Securities and Exchange Commission as a securities broker-dealer pursuant to Section 15(b) of the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company facilitates purchase and sale of securities as well as the sale of mutual funds and insurance products. ## Basis of Accounting: The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America (GAAP). ### Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses during the year. Actual results could differ from those estimates. ## Cash and Cash Equivalents: The Company considers all short-term investments with an original maturity of three months or less, and that are not required to be segregated under federal or other regulations, to be cash and cash equivalents. # Office Equipment: Office equipment is recorded at cost. Depreciation is computed using the accelerated method over the estimated useful lives of the assets. Estimated useful lives used by the Company are as follows. | Office furniture and fixtures | 7 years | |-------------------------------|---------| | Office equipment and machines | 5 years | | Computer and peripherals | 5 years | {11}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS For the Year Ended September 30, 2025 ## Note A – Summary of Significant Accounting Policies (continued): ## Revenue from Contracts with Customers: The Company buys and sells securities on behalf of its retail customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that its performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, pricing is agreed upon and the risks and rewards of ownership have been transferred to or from the customer. The Company also earns 12B-1 fees paid by mutual funds over the period of time that the customers continue to hold investments in the mutual funds. The services performed for such fees are considered to be performed over time, and the revenue, therefore, is recognized at the time of payments. ### Income taxes: Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due and deferred taxes due to temporary differences and loss carryforwards. The year ending September 30,2025 the Company had a taxable income of \$4,100 for both Federal and State income tax purposes. Pursuant to applicable tax rules, 80% of the taxable income, or \$3,280, was offset by the net operating loss carryforward. As a result, the Company's current tax expense was \$172 for federal purposes and \$36 for state purposes. As of September 30, 2025, the Company had an operating loss carryforward of \$33,997 available to offset future taxable income. The Company's tax filings are subject to audit by various taxing authorities. The Company's Federal Income Tax Returns for the years ended September 30, 2022 through September 30, 2024 remain open to examination by the Internal Revenue Service; State Income Tax Returns for the same periods remain open to examination by the State of Hawaii. ### Date of Management's review: Management has evaluated events occurring subsequent to the balance sheet date for items requiring recording or disclosure in the financial statements. This evaluation was performed through the date on which the financial statements were available to be issued. Based upon this review, the Company has determined that there were no events which took place that would have a material impact on its financial statements. {12}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS For the Year Ended September 30, 2025 ## Note B - Net Capital Requirements: The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC rule 15c3-1), which requires the maintenance of minimum net capital, and imposes requirements that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At September 30, 2025, the Company had net capital of \$72,597 which was \$67,597 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.66 to 1 on September 30, 2025 # Note C – Receivable From and Deposit With Clearing Broker-Dealer: The Company clears customer transactions through another broker-dealer ("clearing broker") on a fully disclosed basis pursuant to a clearing agreement. In accordance with this agreement, the Company is required to maintain a deposit in cash. The deposit is refundable if, and when, the Company ceases doing business with the clearing broker. Receivable from clearing broker at September 30, 2025 consists of commissions receivable, net of clearing fees and expenses. Management has evaluated the receivable and considered this amount to be fully collectible, therefore, no allowance for credit loss is required. # Note D - Fair Value of Financial Instruments Accounting principles generally accepted in the United States of America (GAAP) defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by GAAP are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. {13}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS For the Year Ended September 30, 2025 ## Note D - Fair Value of Financial Instruments (continued) • Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. At the end of the period the Company doesn't have any financial instruments other than cash. # Note E – Broker-Dealer - Single Reportable Segment The Company is engaged in a single line of business as a security broker - dealer, consisting primarily of agency transactions. The Company has identified its President as the chief operating decision maker ("CODM"). The CODM uses net income to evaluate the results of business, predominately in the forecasting process, to manage the Company. In addition, the CODM uses excess net capital (see Note B), 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 and using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. ## Note F – Concentrations The majority of the Company's commission revenue for the year ended September 30, 2025, was generated from transactions executed on behalf of a small number of customers. Transactions executed on behalf of six customers - First Net Insurance Company, Jane Dukyoung Lee, Net Care Life and Health, Insup Lee, Judith A. Moylan, and Paragon Insurance Management- accounted for a significant portion of revenue. Total commission revenue for the year was \$114,926, of which \$90,579 (79%) was generated from these six customers. # Note G – Line of Credit The Company has an unsecured line of credit agreement with Central Pacific Bank that allows the Company to borrow up to \$20,000. Borrowings under the line accrue interest at an annual rate ranging from 9.75% to 10.50%. As of September 30, 2025, the outstanding balance on the line of credit was \$12,149. The line of credit does not have a stated maturity date. {14}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS For the Year Ended September 30, 2025 # Note H – Commitments and Contingencies There are no commitments or contingencies as of September 30, 2025. The company does not lease office space. # Note I – Company Conditions The Company had a net loss of \$3,640 for the year ended September 30, 2025, after processing payroll of \$38,000 to the stockholder-officer. The Company received capital contributions from its stockholder to support working capital needs. The stockholder has represented that he intends to continue making capital contributions, as necessary, to ensure the ongoing operation of the Company. The stockholder also has the financial ability to provide such support. Management expects the Company to continue as going concern and the accompanying financial statements have been prepared on a going-concern basis without adjustments for realization in the event the Company ceases to continue as a going concern. ## Note J – Credit Losses The Company follows ASC Topic 326, Financial Instruments – Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial assets. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the consumer). {15}------------------------------------------------ ## **SCHEDULE I - SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2025** # **COMPUTATION OF NET CAPITAL** | Total ownership equity (from statement of financial condition) | \$
73,705 | |-------------------------------------------------------------------|--------------| | Add: | | | Allowable credits | - | | Total capital and allowable credits | 73,705 | | Deduct: | | | Non-allowable assets | 1,108 | | Net capital before haircuts on securities positions | 72,597 | | Haircuts on securities | - | | Net Capital | \$
72,597 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENTS | | | Minimum net capital required: (6-2/3%) of aggregate indebtedness: | | | Aggregate indebtedness | \$
47,532 | | 6-2/3% of above | 3,169 | | Minimum dollar net capital requirement of broker-dealer | 5,000 | | Net capital requirement (greater of above amounts) | 5,000 | | Excess net capital | \$
67,597 | There are no material differences between the computations above and the computations included in the Company's corresponding unaudited Form X-17A-5 Part IIA filing. {16}------------------------------------------------ # **Schedules II & III September 30, 2025** # **Schedule II** # **Computation for Determination of Reserve Requirements under Rule 15c3-3 of the Securities Exchange Commission** The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to paragraph (k)(2)(ii) of the rule and is considered a "Non-Covered Firm" by relying on Footnote 74 to SEC Release 34-70073. # **Schedule III** # **Information Relating to the Possession or Control Requirements under Rule 15c3-3 of the Securities Exchange Commission** The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to paragraph (k)(2)(ii) of the rule and is considered a "Non-Covered Firm" by relying on Footnote 74 to SEC Release 34-70073. {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL 32751 Certified Public Accountants Email: pam'a ohabco.com Telephone 407-740-7311 Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of Sun's Brothers Securities. Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Sun's Brothers Securities, Inc. identified the following provision(s) of 17 C.F.R. §15c3-3(k) under which Sun's Brothers Securities, Inc. claimed the following exemption(s) from 17 C.F.R. §240.15c3-3: (k(2)(ii) [exemption provision(s)] and (2) Sun's Brothers Securities, Inc. stated that Sun's Brothers Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Sun's Brothers Securities, Inc.'s management is responsible for compliance with the exemption provisions and its statements. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to direct business mutual fund retailer. In addition, the Company did not directly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscription way basis where the funds are payable to the issuer or its agent and not to the Company, did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception, Sun's Brothers Securities, Inc.'s management is responsible for compliance with the provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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 Sun's Brothers 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 paragraph(s) (k(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions, Ohab and Company, PA Maitland, Florida January 11, 2026 {18}------------------------------------------------ #### EXEMPTION REPORT Sun's Brothers Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(0)(1) and (4). To the best of its knowledge and belief, the Company states the following: - · The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provision of 17 C.F.R. §240.15c3-3 (k)(2): (k)(2)(ii). - · The Company met the identified exemption provision throughout the most recent fiscal year without exception. - · The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to: Direct Business Mutual Fund retailer, and the Company (1) did not directly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. #### Sun's Brothers Securities, Inc. I, Min Won Yang, swear (or affim) that, to my best knowledge and belief, this Exemption Report is true and correct. Name and Title:\_ Min Won Yang, President -12-Date: NOTARY CERTIFICATE ON NEXT PAGE Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.