# UOB KAY HIAN (U.S.) INC. X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: UOB KAY HIAN (U.S.) INC. - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001235887-24-000002 - CIK: 1235887 - File #: 8-65981 - Type: Broker-dealer - Material weakness: No - Auditor: MARCUM LLP - Auditor location: East Hanover, NJ - Contact: Athena Kwai - Phone: 973 313 2400 - Email: athena.kwai@uobkayhian.com - Website: uobkayhian.com - Signed by: Athena Kwai (President) Original filing: https://www.sec.gov/Archives/edgar/data/1235887/000123588724000002/uobkh2023annualaudit.pdf --- {0}------------------------------------------------ ## UOB KAY HIAN (U.S.) INC. ANNUAL AUDITED REPORT FORM X-17A-5 # PART III SEC FILE NO. 8-65981 YEAR ENDED DECEMBER 31, 2023 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30. 2026 Estimated average burden hours per response: 12 sec file number 8-65981 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 01/01/23 MM/DD/YY MM/DD/YY 12/31/23 A. REGISTRANT IDENTIFICATION # NAME OF FIRM: UOB KAY HIAN (U.S.) INC. TYPE OF REGISTRANT (check all applicable boxes): ම Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## 3207 Dovetail Mews | | (No. and Street) | | | |---------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|----------------------------| | Mississauga | Ontario | | LSL 5K4 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Athena Kwai | 973-313-2400 | | athena.kwai@uobkayhian.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | MARCUM LLP | | | | | | (Name - if individual, state last, first, and middle name) | | | | 100 Eagle Rock Avenue Suite 200 | East Hanover | NJ | 07936 | | (Address) | (City) | (State) | (Zip Code) | | 10/16/2003 | | 688 | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Athena Kwai | swear (or affirm) that, to the best of my knowledge and belief, the | | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|--|--|--| | tinancial report pertaining to the firm of UOB KAY HIAN (U.S.) INC
, as of
12/31
2 023 is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | | as that of a customer. | | | | | | | | | | | | | Signature; | | | | | | | | | | | | Title: | | | | | | President | | | | | | | | | | | Notary Public | SAMANTHA M DELANEY | | | | | | NOTARY PUBLIC | | | | | This filing** contains (check all applicable boxes): | STATE OF NEW JERSEY | | | | | (a) Statement of financial condition. | ID # 50078809 | | | | | [ (b) Notes to consolidated statement of financial con
(c) Statement of income (loss) or, if there is other completed in the performs performed, 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. | | | | | | (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | | | | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | | | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | | | | | [1] Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | | | | (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | | | | | (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | | | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. | | | | | | 0) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net | | | | | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | | | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences
exist. | | | | | | പ (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 240.18a-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. | | | | | | [] {v] Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | | | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | @ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | | | | CFR 240.18a-7, as applicable. | | | | | | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, | | | | | | as applicable. | | | | | | (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or | | | | | | a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).
(z) Other: | | | | | | | | | | | | ** To request confidential treatment of chis filing, see 17 CFR 240.17o-5(e)(3) or 17 CFR 240.180-7(d)(2), as | | | | | | applicable. | | | | | {3}------------------------------------------------ ## TABLE OF CONTENTS | | Page | |--------------------------------------------------------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statements | | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Changes in Stockholder's Equity | 5 | | Statement of Cash Flows | 6 | | Statement of Changes in Liabilities Subordinated to Claims
of General Creditors | 7 | | Notes to Financial Statements | 8 | | Supplemental Information | | | Schedule I - Computation of Net Capital Under Rule 15c3-1 of the
Securities and Exchange Commission | 13 | | Information regarding compliance with Rule 15c3-3 | | | Report of Independent Registered Public Accounting Firm | 14 | | Statement of Exemption from SEC Rule 15c3-3 | ાં ર | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder of UOB Kay Hian (U.S.) Inc. ## Opinion on the Financial Statements We have audited the accompanying statement of financial condition of UOB Kay Hian (U.S.) Inc. (the "Company") as of December 31, 2023, the related statement of operations, changes in stockholder's equity, changes in liabilities subordinated to claims of general creditors 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 the Company as of December 31, 2023, 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 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 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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. {5}------------------------------------------------ ## Supplemental Information The Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission in Schedule I (the "supplemental information") has been subjected to audit procedures performed in conjunction with the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental 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 supplemental 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 supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as UOB Kay Hian (U.S.) Inc.'s auditor since 2009. Morrient LL East Hanover, New Jersey February 28, 2024 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2023 # ASSETS | Cash and cash equivalents | e | 996,516 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|----------------------------------------| | Accounts receivable | | 2,000 | | Receivable from affiliate | | 43,773 | | Property and equipment - at cost, less accumulated depreciation | | 7,084 | | Other assets | | 28,345 | | | | \$ 1,077,718 | | LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable and accrued expenses
Payable to affiliate
Liabilities subordinated to claims of general creditors | S | 71,123
43,513
150,000
264,636 | | | | | ## Stockholder's equity | Common stock, \$1.00 par value; 550,000 shares authorized, | | |------------------------------------------------------------|--------------| | issued and outstanding | 550,000 | | Retained earnings | 263,082 | | | 813,082 | | | \$ 1,077,718 | {7}------------------------------------------------ ## STATEMENT OF OPERATIONS ## YEAR ENDED DECEMBER 31, 2023 | Revenue | | |------------------------------------|----------------| | Commissions | S
742,630 | | Research services | 669,778 | | Interest income | 84 | | | 1,412,492 | | | | | Expenses | | | Employee compensation and benefits | 760,984 | | Clearance charges | 329,823 | | Professional fees | 121,045 | | Occupancy | 27,907 | | Communications | 167,441 | | Regulatory fees | 8,443 | | Research fees | 63,644 | | Travel and entertainment | 15,406 | | Depreciation and amortization | 6,329 | | Interest expense | 3,042 | | Other operating expenses | 16,333 | | | 1,520,397 | | Loss before income taxes | (107,905) | | Income taxes | 390 | | Net loss | S
(108,295) | {8}------------------------------------------------ ## STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY #### YEAR ENDED DECEMBER 31, 2023 | | | | | | | | Total | |----------------------------|--------------|--|--------------|----------|-----------------------|---------------|-----------| | | Common Stock | | | Retained | | Stockholder's | | | | Shares | | Amount | Earnings | | Equity | | | Balance, January 1, 2023 | | | 550,000 | | \$ 371,377 \$ 921,377 | | | | Net loss | | | | | 108,295) | | (108,295) | | Balance, December 31, 2023 | 550,000 | | \$ 550,000 - | | \$ 263,082 | ಕೆ | 813,082 | {9}------------------------------------------------ ## STATEMENT OF CASH FLOWS ## YEAR ENDED DECEMBER 31, 2023 | Cash flows from operating activities | | | |-------------------------------------------------|------|-----------| | Net loss | ಲ್ಲಿ | (108,295) | | Adjustments to reconcile net income to net cash | | | | used in operating activities | | | | Depreciation and amortization | | 6,329 | | Changes in assets and liabilities | | | | Accounts receivable | | 51,756 | | Receivable from affiliate | | (5,872) | | Other assets | | (781) | | Accounts payable and accrued expenses | | (38,790) | | Payable to affiliate | | 33,547 | | Net cash used in operating activities | | (62,106) | | | | | | Cash flows from investing activities | | | | Purchase of property and equipment | | (1,662) | | Net cash used in investing activities | | (1,662) | | | | | | Net increase in cash and cash equivalents | | (63,768) | | Cash and cash equivalents, beginning of year | | 1,060,284 | | Cash and cash equivalents, end of year | S | 996,516 | | | | | | Supplemental cash flow disclosures | | | | Interest paid | ಕಿ | 3.042 | | Income taxes paid | S | 390 | {10}------------------------------------------------ ## STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS | Balance, January 1, 2023 | A | 150.000 | |----------------------------------|---|---------| | Proceeds from subordinated notes | | | | Repayment of subordinated notes | | | | Balance, December 31, 2023 | S | 150.000 | {11}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS #### 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Description of Business UOB Kay Hian (U.S.) Inc. (the "Company") is a broker-dealer organized as a Corporation under the laws of the State of New Jersey. The Company became registered on November 4, 2003 with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. The Company acts exclusively on behalf of institutional customers in the buying and selling of Asian securities through a related company, UOB Kay Hian Private Limited, located in Singapore. The Company engages in the distribution of research to institutional clients. The parent of both companies is UOB-Kay Hian Holdings Limited (the "Parent"), located in Singapore. The Company's principal office is located in Ontario Canada and has a branch office in Maplewood, New Jersey. #### Use of Estimates Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates. #### Cash and Equivalents Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less and all money market accounts. #### Concentrations of Credit Risk for Cash The Company's cash balances in banks are insured by the Federal Deposit Insurance Corporation subject to certain limitations. #### Accounts Receivable Accounts receivable are stated at the amounts management expects to collect. An allowance for doubtful accounts is recorded based on a combination of historical experience, aging analysis and information on specific accounts. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Management has determined that no allowance is required at December 31, 2023. As of December 31, 2023, 100% of the accounts receivable balance was from one customer. #### Depreciation and Amortization Depreciation is computed on a straight-line basis over the estimated useful lives of the respective assets for a term of three years. Leasehold improvements are amortized on a straight-line basis over the life of the related lease, which approximates three years. {12}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ## Revenue Recognition Securities transactions and the related revenues and expenses are recorded on a trade date basis. Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. ## Brokerage commissions: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commissions and related clearing expenses are recorded on the trade date. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have heen transferred to/from the customer. ## Research services: The Company engages in the distribution of research to institutional clients. Research services meets the requirements of a contract. Although there is no formal contract, the customer and Company agree via word of mouth and through performance of the obligations (step 1). The contract contains only one revenue obligation, which is the agreed upon research to be performed (step 2). The revenue price for research services is variable and the amount of consideration is highly susceptible to factors outside of the Company's influence. There is uncertainty about the amount of consideration and when it will be resolved. Historically, there are research services contracts that are consistent period over period and are readily estimable while other research services contracts are not estimable. These contracts have a large number and broad range of possible consideration amounts (step 3). Contracts that are readily estimable are recognizable over the period of time in which the services were performed. These research contracts are generally performed in short periods of time (i.e. by month or quarterly - the Company does not historically have any contract periods over a year). For contracts that are not estimable, the revenue is recognizable at a specific point in time when the price becomes available (step 4 and 5). {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) #### Lease Accounting The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company is a lessee in a noncancellable operating lease for office space. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. The discount rate is the implicit rate. If the implicit rate is not readily determinable, the Company uses its incremental borrowing rate. The implicit rate of our lease is not readily determinable and accordingly, the Company used its incremental borrowing rate based on the information available at the commencement date for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The right-of-use ("ROU") asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease cost for lease payments is recognized on a straight-line basis over the lease term. The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes the lease cost associated with its short-term leases on a straight-line basis over the lease term. #### Income Taxes Deferred income taxes are recognized for temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Temporary differences result primarily from the Company's net operating loss carryforwards. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Uncertain tax positions are recorded in accordance with (ASC) 740, Accounting for Income Taxes, on the basis of a two-step process, whereby (1) the Company determines whether it is more likely than not the tax positions would be sustained on the basis of the technical merits of the position taken and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the company would recognize the largest amount of tax benefit that is more than 50% likely to be realized upon the ultimate settlement with the related tax authority. At December 31, 2023 the Company had no uncertain tax positions. #### Allowance of Current Expected Credit Losses As prescribed under ASC 326, management establishes an allowance of current expected credit losses against customer contract assets and receivables, and other receivables including security deposits to reflect the net amount the Company expects to collect. The methodology used by the Company to determine allowance for current expected credit losses for customer contract assets and receivables is typically based on aging analysis where loss rates are applied to the carrying value based on historical experience, the current economic environment and specific information about the ability of the counterparty to pay. There was no allowance for current expected credit losses recorded as of December 31, 2023. {14}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## 2 - PROPERTY AND EQUIPMENT Property and equipment consist of the following: | Furniture and fixtures | S | 23,307 | |--------------------------------------------------|----|---------| | Computer equipment | | 59,315 | | Office equipment | | 48,559 | | Leasehold improvements | | 45,560 | | | | 176,741 | | Less - Accumulated depreciation and amortization | | 169,657 | | | ಕಿ | 7.084 | ## 3 - INCOME TAXES The Company has federal net operating loss carryforwards of approximately \$256,700 and New Jersey net operating loss carryforwards of approximately \$73,800 as of December 31, 2023. The Federal net operating loss carry forward has an indefinite carry period and the New Jersey net operating loss carry forward expires in 2042 thru 2043. A valuation allowance has been established equal to 100% of the deferred tax asset totaling \$58,700 at December 31, 2023. ## 4 - RELATED PARTY TRANSACTIONS UOB Kay Hian Private Limited provides clearing services for the Company in accordance with a clearing agreement. During the year ended December 31, 2023, the Company paid \$252,273 in clearance charges and is within clearance charges on the statement of operations. UOB Kay Hian Private Limited also provides research services. During the year ended December 31, 2023, the Company paid \$63,644 in research fees to UOB Kay Hian Private Limited. Receivable from affiliate represents commissions earned in December 2023 totaling \$43,773. Payable to affiliate totaling \$43,513 as of December 31, 2023 consists primarily of research fees owed to UOB Kay Hian Private Limited. ## 5 - LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS The Company entered into a subordinated loan agreement for \$150,000 effective June 14, 2012 with its parent UOB-Kay Hian Holdings Limited. This renews every year unless on or before the thirteen months preceding the Scheduled Maturity Date, the broker notifies the broker-dealer that the maturity date is not extended. The loan has an interest rate of 2%, which is paid annually. The loan was automatically extended per the agreement and will mature on June 30, 2024. The subordinated borrowing is covered by an agreement approved by the Financial Industry Regulatory Authority, Inc. and is thus available in computing net capital under the Securities and Exchange Commission's net capital rule. To the extent that such borrowings are required for the Company's continued compliance with minimum net capital requirements, it may not be eligible for repayment. {15}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### 6 - LEASE COMMITMENTS The Company leases office space in New Jersey at an annual rental of \$26,400. The current lease is expiring on March 31, 2024 and has been renewed for another six months through September 30, 2024 requiring monthly payments of \$2,350. Rent expense, including real estate taxes and related costs, was approximately \$23,868 for the year ended December 31, 2023 and is included within occupancy expense on the statement of operations. #### 7 - RETIREMENT PLAN The Company has a 401(k) plan, which covers substantially all of its full-time employees. The plan provides for employee contributions and matching contributions by the Company subject to certain limitations. Company contributions to the plan for the year ended December 31, 2023 total \$6,032 and are within employee compensation and benefits on the statement of operations. ## 8 - REGULATORY REQUIREMENTS As a registered broker-dealer, the Company is subject to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, which requires that the Company's aggregate indebtedness shall not exceed fifteen times net capital, as defined, under such provision. At December 31, 2023, the Company had net capital of \$879,894 which exceeded requirements by \$629,894. The ratio of aggregate indebtedness to net capital was 0.1303 to 1. The Company operates its securities transactions under the provisions of (K)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission as a fully disclosed broker-dealer and accordingly, customer accounts are carried on the books of the clearing broker, and is therefore exempt from the rule. The company is also exempt from SEC Rule 15c3-3 because the Company's other business activities contemplated by Footnote 74 of SEC Release No. 34-0073 adopting amendments to 17C.F.R. §240.17a-5 are limited to providing research reports to third parties, and 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. ## 9 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company utilizes the services of clearing brokers for the settlement of customer transactions. All customers' money balances and security positions (long and short) are carried on the books of the clearing brokers. These activities may expose the Company to off-balance sheet credit risk in the event that the clearing broker or the customer is unable to fulfill their obligations. {16}------------------------------------------------ #### SUPPLEMENTAL INFORMATION Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2023 {17}------------------------------------------------ #### SCHEDULE I ## COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION #### DECEMBER 31, 2023 | Computation of net capital | | | |--------------------------------------------------------------------------------------|-------|-------------| | Total stockholder's equity | ಕ್ಕಿ | 813,082 | | Additions | | | | Liabilities subordinated to claims of general creditors allowable | | | | in computation of net capital | | 150,000 | | Total capital and allowable subordinated liabilities | | 963,082 | | Deductions and/or charges | | | | Non-allowable assets | | 81,202 | | Net capital before haircut on securities positions | | 881,880 | | | | | | Haircuts on securities positions | | | | Canadian obligations | | 1,986 | | Net capital | ક્તિ | 879,894 | | | | | | Computation of aggregate indebtedness | | | | Accounts payable and accrued expenses | સ્ત્ર | 71,123 | | Payable to affiliate | | 43,513 | | Aggregate indebtedness | S | 114,636 | | | | | | Computation of basic net capital requirement | | | | Minimum net capital required (6 2/3% of aggregate indebtedness) | S | 7,642 | | Minimum dollar requirement | | 250,000 | | Net capital requirement (greater of minimum net capital | | | | or dollar requirement) | ക | 250,000 | | | | | | Excess net capital | ക | 629,894 | | Excess net capital at 120% | ಕಾ | 579.894 | | | | | | Ratio: Aggregate indebtedness to net capital | | 0.1303 to 1 | | | | | | Reconciliation with Company's computation (included in Part II of Form X-17A-5 as of | | | | December 31, 2023) | | | | Net capital, as reported in Company's Part II (unaudited) Focus Report | S | 879,894 | | Increase resulting from December 31, 2023 audit adjustments, net | | | | Net capital, as included in this report | S | 879,894 | {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) # 45674879:;<565;<5;845=:>8545<6?@A:BCBB7?;8:;=9:4D ## EFGHIJGFKLHFMNIO FP?7@QRSTURVW?X>XY:VZX [IH\]IOI]^I\_IN`\a\bI`IaGcddG\GI`IaGde^aKMfNIN^aGHI\KKF`g\ah^abJG\GI`IaGFP ijI`gG^FakOF`JilmfMI2nKopomIgFOGe^a\_H^KHq2rstuv\hw^\aqsxJxryaKxqGHI zlF`g\ah{r^NIaG^P^INGHIPFMMF\_^abgOF]^d^FaFP2|lxkxmx}2nKopoqLrfaNIO\_H^KHGHI lF`g\ahKM\^`INGHIPFMMF\_^abIjI`gG^FaPOF`2|lxkxmx}~3x2nKopoqLrq~rq^^rqGHI zIjI`gG^FagOF]^d^Far\aNq~rstuv\hw^\aqsxJxryaKxdG\GINGH\Gstuv\hw^\aqsxJxryaKx `IGGHI^NIaG^P^INIjI`gG^FagOF]^d^FaGHOFfbHFfGGHI`FdGOIKIaGP^dK\MhI\O\_^GHFfGIjKIgG^Fax EHIlF`g\ah^d\MdFP^M^abGH^dJG\GI`IaGFPijI`gG^FakOF`JilmfMI2nKopoIK\fdIGHI lF`g\ahdFGHIOfd^aIdd\KG^]^G^IdKFaGI`gM\GINhkFFGaFGI|3FPJilmIMI\dIFxo3p|o \NFgG^ab\`IaN`IaGdGF2|lxkxmx}~3x2|\pn\OIM^`^GINGFgOF]^N^abOIdI\OKHOIgFOGdGFGH^ON g\OG^Idxya\NN^G^FaeGHIlF`g\ahN^NaFGK\OOh\KKFfaGdFPFOPFOKfdGF`IOd\aNN^NaFGK\OOh u\KKFfaGdq\dNIP^aIN^amfMI2nKoporGHOFfbHFfGGHI`FdGOIKIaGP^dK\MhI\O\_^GHFfG IjKIgG^Fax stuv\hw^\aqsxJxryaKxd`\a\bI`IaG^dOIdgFad^MIPFOKF`gM^\aKI\_^GHGHIgOF]^d^Fad KFaGI`gM\GINhkFFGaFGI|3FPJilmIMI\dIFxo3p||o\NFgG^ab\`IaN`IaGdGF2|lxkxmx }~3x2|\pn\aNOIM\GINJilJG\PPkOIfIaGMhdLINfIdG^Fad\aN^GddG\GI`IaGx tfOOI]^I\_\_\dKFaNfKGIN^a\KKFON\aKI\_^GHGHIdG\aN\ONdFPGHIfM^KlF`g\ahKKFfaG^ab t]IOd^bHGuF\ONqsa^GINJG\GIdr\aNe\KKFON^abMhe^aKMfNIN^af^O^Id\aNFGHIOOIf^OIN gOFKINfOIdGFFG\^aI]^NIaKI\FfGstuv\hw^\aqsxJxryaKxdKF`gM^\aKI\_^GHGHIIjI`gG^Fa gOF]^d^FadxOI]^I\_^ddfdG\aG^\MMhMIdd^adKFgIGH\a\aIj\`^a\G^FaeGHIFIKG^]IFP\_H^KH^d GHIIjgOIdd^FaFP\aFg^a^FaFa`\a\bI`IaGcddG\GI`IaGdxKKFON^abMhe\_INFaFGIjgOIdddfKH \aFg^a^Fax u\dINFaFfOOI]^I\_e\_I\OIaFG\\_\OIFP\ah`\GIO^\M`FN^P^K\G^FadGH\GdHFfMNI`\NIGF `\a\bI`IaGcddG\GI`IaGdOIPIOOINGF\F]IPFOGHI`GFIP\^OMhdG\GINe^a\MM`\GIO^\MOIdgIKGde \dINFaGHIgOF]^d^FaddIGPFOGH^ag\O\bO\gHqLrq~rq^^rFPmfMI2nKopofaNIOGHIJIKfO^G^Id ijKH\abIKGFP2o3\aNGHIlF`g\ahdFGHIOfd^aIdd\KG^]^G^IdKFaGI`gM\GINhkFFGaFGI|3 FPGHIJilmIMI\dIFxo3p||o\NFgG^ab\`IaN`IaGdGF2|lxkxmx}~3x2|\pne\aNOIM\GIN JilJG\PPkOIfIaGMhdLINfIdG^Fadx i\dGw\aF]IOeI\_IOdIh kIOf\Oh~e~~3 23 {19}------------------------------------------------ # JOBKayHia UOB Kay Hian (U.S.) Inc. 111 Dunnell Road, Suite 201 Maplewood, NJ 07040 Tel: 973-313-2400 Fax: 973-313-2403 www.uobkayhian.com ## UOB Kay Hian (U.S.) Inc. Exemption Report UOB Kay Hian (U.S.) 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(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 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3K(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. - (3) The Company is also exempt from SEC Rule 15C3-3 because the Company's other business activities contemplated by Footnote 74 of SEC Release No. 34-0073 adopting amendments to 17C.F.R. §240.17a-5 are limited to providing research reports to third parties, and 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. UOB Kay Hian (U.S.) Inc. I, Athena Kwai, swear that, to my best knowledge and belief, this Exemption Report is true and correct. By: Title: President February 28, 2024 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.