# JTA SECURITIES MANAGEMENT, INC. X-17A-5 (2021-10-28) — Broker-dealer annual report - Company: JTA SECURITIES MANAGEMENT, INC. - Form: X-17A-5 - Filed: 2021-10-28 - Period: 2018-12-31 - Accession: 0001288802-21-000010 - CIK: 1288802 - File #: 8-66462 - Type: Broker-dealer - Material weakness: No - Auditor: Moss Adams, LLP - Auditor location: Dallas, TX - Contact: Michael Schaps - Phone: 281-367-2454 - Signed by: Brad Brooks (President) Original filing: https://www.sec.gov/Archives/edgar/data/1288802/000128880221000010/2018titansecuritiesaudit_.pdf --- {0}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT, INC. dba TITAN SECURITIES,INC.** ### **REPORT PURSUANT TO RULE 17a-5(d)** **FOR THE YEAR ENDED DECEMBER 31, 2018** {1}------------------------------------------------ | | | | OMB APPROVAL | | | |--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------|--|--| | | UNITED
STATES
SECURITIES
AND
EXCHANGE
COMMISSION
Washington,
D.C.
20549 | | | | | | | ANNUAL
AUDITED
REPORT
FORM
X-17A-5 | | hours per response
12.00 | | | | | PART
III | | SEC RLE NUMBER | | | | | FACING PAGE | | 8-66462 | | | | Information
Securities | Required
of
Brokers
and
Dealers
Pursuant
Exchange
Act
of
1934
and Rule
17a-5 | to Section
17
Thereunder | of
the | | | | REPORT
FOR THE
PERIOD BEGINNING | 1/1/18
MM/DD/YY | AND ENDING | 12/31/18 | | | | | A. REGISTRANT
IDENTIFICATION | | | | | | NAME
OF BROKER-DEALER: | | | | | | | JTa
Securities
Management
, Inc.
dba | Titan
Securities,
Inc. | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL | | | | | | | PLACE OF BUSINESS:(Do
16775 | not use P.O. Box No.) | | FIRMID.NO. | | | | Addison
Rd.
Suite
202 | (No.andSheet) | | | | | | Addison | Texas | | | | | | (City) | (Slate) | | 75001
(Zip Code) | | | | NAME
AND TELEPHONE
NUMBER
OF PERSON | TO CONTACT
IN REGARD | TO THIS REPORT | | | | | | | | (Area Code-Telephone No.) | | | | | B.
ACCOUNTANT
IDENTIFICATION | | | | | | INDEPENDENT
PUBLIC
ACCOUNTANT
whose | opinion
is
contained
in
this
Report* | | | | | | Moss
Adams,
LLP | | | | | | | | (Name-if individual,stalelast,first,middle name) | | | | | | 8750
N.
Central
Expressway,
Suite
300
(Address) | Dallas
(City) | TX | 75231 | | | | CHECK
ONE:
Xl
Certified
Public
Accountant
Public
Accountant
Accountant not
resident in United | States or any of its
possessions. | (Slate) | (Zip Code) | | | | | FOE OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | *'Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by* **a** *statement of facts and circumstances* **refed***on as the basis for the exemption. See section 240.17a-5(e)(2).* **SEC 1410 (06-02)** **Potential persons who are to respond to the collection ofinformation** contained in **this** form **are** not **required** to **respond unless the form displays a currently valid OMB control number.** {2}------------------------------------------------ ### : OATHOR AFFIRMATION » I \* ; : \* > :• ; : i •*\* > I. Brad Brooks swear (or admit) that,toIhe best of my knowledge and bejteflhe awynpanyjrg foanda) statements and^porting schedules pertaining to theIbmof > .as of December31.2016.are hue and oared I further swear (or affirm) that neitherIhe company nor any partner, proprietor,principal officer or director has any proprietary InterestIn any accountclassified solely as that ofacustomer,except as follows: *Vk* 5 ELISABETH SLEYO Notary Public,State of Texas Comm.Expires 08-31-2020 Notary ID 128611019 **This report**\* 4 **contains (check allapplicable boxes):** (a) Facing Page. (b) Statement ofFinancialCondition. W Statement of Income(Loss). |d) Statement of CashFlows. (ej StajeaieMof Changes toStockholders'Equly or partners!orSoleProprietor'sCapiUI. (Q Statement of Changes to UabNies Stibordtoitod to Ctobns ofCradfcts. **(g) Compulation of Nat Capital** (h) Computatlon for Determination of Reserve RequkemenisPursuanltoRule1663-3. 0 InformationRelating to toePossession or contra!Requirements UnderRule 15c&3. - (L) A Racondfeflon,toctodlng appropriate explanation, of Ihe Compulaflon of Nat Capital Under Rule 15c3-1 aad tho Compulsion for Determinationof theReserveRequirementsUnderExMbftAofRule **15C3\*3.** - (k) ARecondWonbetewcnlieaudited tttourwudkadStetemMtedFinencielOondMmwHhrespect tometoodstf consolation, - f) AnOathor Affirmation. - (m) Acopy of foeStPC SupplementalReport. - (n) Areport describing any material inadequacies found(o exist orfound tohave existed since the date of the previous onlt. - (o) Reportof Independent RegisteredRubioAcoounlng Rrm on Managamenfs ExemptionReport **"For concfltlQns of conidonltel treatment o(certain portionsof thb Wng.see Section240.17a-5(e)(3).** {3}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT, INC. dba TITAN SECURITIES,INC.** ### **CONTENTS** **PAGE** | REPORT
OF INDEPENDENT | REGISTERED
PUBLIC ACCOUNTING
FIRM | 1 | |---------------------------|----------------------------------------------------------------------------------------------------------------------|------------| | STATEMENT
OF FINANCIAL | CONDITION | 2 | | STATEMENT | OF OPERATIONS | 3 | | STATEMENT
OF | CHANGES
IN
STOCKHOLDERS'
EQUITY | 4 | | STATEMENT
OF CASH | FLOWS | 5 | | NOTES TO THE
FINANCIAL | STATEMENTS | 6- 11 | | SUPPLEMENTARY | INFORMATION | | | Schedule
I: | Computation
of Net
Capital
Under
Rule
15c3-1
of the
Securities
and
Exchange
Commission | 13
- 14 | | REVIEW
REPORT | OF INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM | | | ON
MANAGEMENTS | EXEMPTION
REPORT | 16
- 18 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered PublicAccounting Firm** **To the Board of Directors JTa Securities Management. Inc. dba Titan Securities.Inc.** ### *Opinion on the Financial Statements* **Wdhave audited the accompanying statement of financial condition of JTa Securities Management, Inc. dba Titan Securities, Inc. (the Company) as of December 31, 2018, the related statements of operations, changes in stockholders' 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 the Company as of December 31, 2018, 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.** ### *Basisfor Opinion* **These financial statements are the responsibility of the Company's management. Ourresponsibility 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 apolicable 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 to 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.** ### *Opinion on the Supplementary Information* **The supplementary information in Schedule I has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements.The information in Schedule I is the responsibility of the Company's management. Our audit procedures include determining whether the information in Schedule I 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 Schedule I. In forming our opinion on the information in Schedule I, we evaluated whether the information in Schedule I, including its form and content is presented in conformity with 17 C.F.R. § 240.17a-5. In our opinion, the information in Schedule I is fairly stated in all material respects in relation to the financial statements as a whole.** **Dallas, Texas March 14, 2019** **We have served as the Company's auditor since 2016.** {5}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Statement of Financial Condition December 31.2018** ### **ASSETS** | Cash
and cash
equivalents
Receivable
tom
broker-dealer
Otherreceivables
Securities
owned,
at fair
value
Property
and
equipment,
net of
accumulated | \$ 128,745
75,205
179,286
8,638 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------| | depreciation
of \$20,201 | 29,105 | | Other
assets | 22.250 | | | S 443.229 | | LIABILITIES
STOCKHOLDERS'
AND
EQUITY | | | Liabilities | | | Accounts payable | \$
104,163 . | | Commission
payable
Payable toParent-income
taxes | 121,912
15.888 | | Total
liabilities | 241.963 | | Stockholders'
equity | | | Common
stock, 10,000,000
shares
\$.01
authorized,
par value,
5,000
shares
issued
and
outstanding | 50 | | Additional
paid-in
capital | 333,010 | | Accumulated
deficit | (131.794) | | Total
stockholders' equity | 201.266 | | | j
443.229 | **The accompanying notes ate an integral part of these financial statements.** {6}------------------------------------------------ JTaSECURITIES MANAGEMENT.INC. dba TITAN SECURITIES.INC. Statement of Operations Forthe YearEnded December 31.2018 | Revenues | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------| | Alternative
investments
Distribution
fees
Commission
income
Advisory fees
Trading
income
Gain
(loss)
on investments
Other revenue | \$ 3.987,685
952,258
249,783
144,166
30,001
(1,427)
94,106 | | Total
Revenues | 5.456.572 | | Expenses | | | Compensation
and benefits
Communications
Occupancy
and
equipment
costs
Regulatory
fees
and
expenses
Other
expenses | 837,341
54,723
111,599
40,471
576,604 | | Commission
and
clearance
paid other
brokers | 3.849.930 | | Total Expenses | 5.470.668 | | Income
(loss)
before
income
taxes | (14.096) | | Taxes-other
Provision
for income
taxes (benefit) | 1,422
9,486 | | Net
income
(loss) | t
(25.0041 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31.2018** | Balances
at | Shares | Common
Stock | Additional
Paid-in
Capital | Accumulated
Deficit | Total | |----------------------------------------|--------|-----------------|----------------------------------|------------------------|---------------| | December
31, 2017 | 5,000 | \$
50 | \$
333,010 | \$
(106,790) | \$
226,270 | | Net
income
(loss) | | | | (25.004) | (25.004) | | Balances
at
December
31, 2018 | 5.000 | | 1
333.010 |
(131.794) | \$ 201.266 | **The accompanying notes are an integral partof these financial statements.** {8}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Statement of Cash Flows For the Year Ended December 31.2018** | Cash
flows
from
operating activities
Net income
(loss)
Adjustments to
reconcile netincome (loss)
to net cash | \$
(25,004) | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------| | provided (used)
by
operating activities:
Depreciation | 1,344 | | (Gain)
loss
on investments
Change
in
operating assets
and liabilities: | 1,427 | | Decrease
in
receivable
broker-dealer
from
Increase
in
other
receivables
Decrease
in
other assets | 13,560
(138,944) | | Increase
in
accounts payable
Increase in accrued
expenses | 3,878
90,545
85,253 | | Increase
in
payable to Parent
Net
cash
provided
(used)
by
operating
activities | 15.888
47.947 | | Cash
flows
from
investing
activities | | | Purchase
of
marketable
securities
Net cash
provided (used)
by investing
activities | (10.065)
f10.0651 | | Cash
flows
from
financing
activities
Net cash
provided
(used)
by
financing
activities
Net
increase
in
cash
and
cash
equivalents
Cash
and
cash equivalents
at beginning
of
year | -0-
37,882
90.863 | | Cash
and
cash
equivalents
at end
of
year | \$
128.745 | ### **Supplemental schedule of cash flow information** | Cash
paid
during
year for:
the | | | | | |--------------------------------------------|--|--|---|-----| | Interest | | | S | £ | | Income taxes | | | s | -0- | **The accompanying notes are an integral part of these financial statements.** **Page 5** {9}------------------------------------------------ ### JTa SECURITIES MANAGEMENT.INC. dba TITAN SECURITIES.INC. Notes to Financial Statements December 31.2018 #### Notel -Summary of Significant Accounting Policies JTa Securities Management, Inc. dba Titan Securities ("Company"), a wholly-owned subsidiary of American Capital Securities,Inc.('Parent"), was incorporated under the laws of the State of California. The Company has one office in Addison, Texas and serves customers throughout the United States. The Company is a broker-dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The company operates under (SEC) Rule 15c3-3(k) (2)(ii) whereby all funds and securities belonging to the Company's customers would be handled by a clearing broker-dealer. In accordance with the provisions of the Rule,the Company executes all of its customers' transaction on a fully-disclosed basis, through an unaffiliated broker-dealer, which carries the accounts and securities of the Company's customers. For purposes of reporting cash flows, cash equivalents are defined as short-term, highly liquid investments, with original maturities to the Company of three months or less, that are not held for sale in the ordinary course of business. Compensated absences have not been accrued because the amount cannot be reasonably estimated. Receivables from broker-dealers and clearing organizations are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for doubtful accounts on these receivables. The Company advances funds to its registered representative as determined necessary by management The advances are generally recouped upon the following commission payable cycle. Management records an allowance for bad debts based on a collectability review of specific accounts. Any receivables deemed uncollectable are written off against the allowance. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due. The provision for federal income taxes differs from the expected amount using statutory rates because certain expenses included in the determination of net income are non-deductible for tax reporting purposes. Property and equipment are carried at cost less accumulated depreciation. Depreciation on office equipment and furniture is computed using an accelerated method over the estimated useful lives of three to seven years. Other receivables consist primarily of commissions receivable related to the sale of private placements and are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for doubtful accounts on these receivables. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. {10}------------------------------------------------ ### JTa SECURITIES MANAGEMENT.INC. dba TITAN SECURITIES.INC. • Notes to Financial Statements December 31.2018 #### Note 1-Summary of Significant Accounting Policies, continued **From time** to **time the Company has cash balances in excess of federally insured limits, and as such, the** amounts of cash in excess of federally insured limits may be at risk of loss in the event of insolvency of the financial institution where the funds are deposited. On January 1, 2018, the Company adopted the provisions of ASC 2014-09, Revenue from Contracts with Customers Topic 606, using the modified approach wherein the guidance is applied only to existing contracts as of the date of initial application and to new contracts entered into thereafter. The new standard outlines a single comprehensive model for entities to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The standard also requires additional disclosure about the nature, amount,timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company's accounting policies did not change materially as a result of applying the principles of Revenue recognition from ASU 2014-09 and are largely consistent with existing guidance and current practices applied by the Company. There was no impact to accumulated deficit as of January 1, 2018 after adopting Topic 606. The Company has five primary lines of business: (i) commissions (ii) distribution fees, (iii) alternative investments,(iv) advisory fees, and (v) miscellaneous fees earned. Revenue from contracts with customers subject to the guidance in ASC 606 from the Company is included within the securities commissions and fees within the Statement of Operations. Commissions and fees revenue is generally recognized at a point in time upon the delivery of contracted services based on a predefined contractual amount or on the trade date for trade execution services based on prevailing market prices and internal and regulatory guidelines. 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 commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fflls the trade order by finding and contracting with a counterparty and confirms the trade with the customer). 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 been transferred to/from the customer. **Distribution fees consist of mutual funds, insurance and annuity products. The Company earns revenue for** selling affiliated and unaffiliated mutual funds, fixed variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance poicy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company's control including market volatility and client behavior {11}------------------------------------------------ ### JTa SECURITIES MANAGEMENT.INC. dba TITAN SECURITIES. INC. Notes to Financial Statements December 31.2018 #### Note 1 -Summary of Significant Accounting Policies, continued (such as how long clients hold their investment, insurance policy or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur. Alternative Investments. Alternative Investment revenues are recorded when all contractual obligations have been performed and the Company is reasonably assured of their collection. The contractual obligations include securing the necessary approvals from the transfer agents and general partners on the respective transactions. Generally, revenues are due at or shortly after the close of the respective transaction, and therefore the Company does not have a significant amount of commissions receivable at the end of a reporting period. Advisory fees. The Company provides investment advisory services for its customers on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. Other Miscellaneous Fees Earned. From time to time the Company performs functions for the convenience of its customers. The Company also receives fees from it's vendors and suppliers to help defray certain costs associated with the Company's operations and ongoing continuing educational programs. For example, in 2018, the Company received \$70,000 which was used to defray some of the costs of the Company's annual sales conference. The performance obligations are satisfied on the date the service is delivered because there are no remaining tasks which are to be performed related to the sendee that is delivered. Securities owned are carried at fair market value and securities not readily marketable are carried at fair value as determined by management of the Company. The resulting difference between cost and market (or fair value) is included in income. #### Note 2 -Net CapitalRequirements Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934,The Company is required to maintain a minimum net capital, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2018, the Company had net capital of approximately \$ 123,633 and net capital requirements of \$50,000. The Company's ratio of aggregate indebtedness to net capital was 1.96 to 1. The Securities and Exchange Commission permits a ratio of no greater that 15 to 1. {12}------------------------------------------------ ### JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES.INC. Notes toFinancial Statements December 31.2018 #### Note 3 -Federal Income Taxes The Company files a consolidated income tax return with the Parent. Income taxes are recorded using the separate company method to comply with Financial Accounting Standards Board fFASB") Accounting Standard Codification ("ASC\*) 740. Any resulting provision or benefit for income taxes is recorded as a receivable or payable to the Parent. The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions. The Company's federal income tax returns generally remain subject to examination by the Internal Revenue Service for three years from the date the return is due, including extensions. The Company's state and local income tax returns are subject to examination by the respective state and local authorities over various statutes of limitations, most ranging from three to five years from the date of filing. The Company applies FASB ASC 740-10 relating to accounting for uncertain tax positions. ASC 740-10 prescribes a recognition threshold and measurement process for accounting for uncertain tax positions and also provides guidance on various related matters such as derecognition, interest, penalties and disclosures required. The Company does not have any uncertain tax positions. #### Note 4 -Operating Leases The following is a schedule by years of future minimum rental payments required under various operating leases that have initial or remaining non-cancelable lease terms in excess of one year. | Year Ending | | |-------------|----------| | 12/31/2019 | 46,161 | | 12/31/2020 | 15.523 | | | \$61.684 | Rental expense for the year ended December 31, 2018 was \$51,817 and is reflected in occupancy and equipment costs. #### Note 5 -Property and Eouioment | The classes
of property
and equipment
are as follows: | | |----------------------------------------------------------------|--------------| | Furniture
and fixtures | \$
35,773 | | Property | 13,533 | | Less:
accumulated
depreciation | (20.201) | | | \$
29.105 | Depreciation expense for the year ended December 31, 2018 was \$1,344 and is reflected in occupancy and equipment costs and other expenses. {13}------------------------------------------------ ### JTa SECURITIES MANAGEMENT.INC. dba TITAN SECURITIES. INC. Notes to Financial Statements December 31.2018 #### Note 6 -Fair Value Measurements The Company uses various methods to determine fair value of its investments including market,income and cost approaches. Based on these approaches,the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability,including assumptions about risk and or risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1- Valuations for assets and liabilities traded on active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgagebacked securities, which are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transaction involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3 - Valuations for assets or liabilities that are derived from other valuation methodologies, including option pricing models,discounted cash flow models and similar techniques,and not based on market exchange, dealer,or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. For the year ended December 31, 2018, the application of valuation techniques applied to similar assets and liabilities has been consistent The fair values of the Company's securities owned as of 12/31/2018 were based on Level 1inputs. #### Note 7 -Related Party Transactions The Company and various entities are under common control and the existence of that common control creates operating results and financial position significantly different than if the companies were autonomous. The Company earned \$675,825 in commission income from the sale of interests in real estate partnerships from related entities and paid \$15,000 in management fees to it's Parent These management foes are included in other expenses. #### Note 8 -Commitments and Contingencies Included in the Company's clearing agreement with its clearing broker-dealer, is an indemnification clause. This clause relates to instances where the Company's customers fai to settle security transactions. In the event this occurs, the Company will indemnify the dealing broker-dealer to the extent of the net loss on the unsettled trade. At December 31, 2018, management of the Company has not been notified by the clearing broker-dealer, nor were they otherwise aware, of any potential losses relating to this indemnification. {14}------------------------------------------------ ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Notes to Financial Statements December 31.2018** ### **Note 8 - Commitlimansts and Contingencies** **The Company, together with others, are defendants in proceedings incidental to its securities business. The claimants seek damages in excess of \$150,000. This case is scheduled for hearing in June and an assessment of potential liability to the Company is not possible at this time. Management intends to present a vigorous defense.** **The financial statements do not include any adjustments that might result from the outcome of these uncertainties.** {15}------------------------------------------------ **Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Actof 1934** as of December 31.2018 {16}------------------------------------------------ ### ScheduleI ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission As of December 31.2018** ### COMPUTATIONOF NET CAPITAL Total ownership equity qualified for net capital \$ 201,266 Add: Other deductions or allowable credits -**0**-Total capital and allowable subordinated liabilities 201,266 Deductions and/or charges Less non-allowable assets: Receivable from BD in excess of 30 days Property and equipment, net Other assets Federal income tax receivable \$ (24,982) (29,105) (22,250) -**0**- /76.3371 Net capital before haircuts on securities positions 124,929 Haircuts onsecurities (computed, where applicable, pursuant to Rule 15c3-1(c)(2)) Other securities M.2961 Net capital S 123.633 AGGREGATE INDEBTEDNESS Items included in statement of financial condition: Accounts payable Commission payable Payable to Parent \$ 104,163 121,912 15.888 Total aggregate indebtedness *t* 241.963 {17}------------------------------------------------ ### **Schedule I(continued)** ### **JTa SECURITIES MANAGEMENT. INC. dba TITAN SECURITIES. INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission December 31.2018** ### **COMPUTATIONOF BASIC NET CAPITAL REQUIREMENT** | Minimum
net capitalrequired (6
2/3%oftotal
aggregate indebtedness) | \$
12.137 | |----------------------------------------------------------------------------------------------|--------------| | Minimum
dollar
net capital requirement
of
reporting broker
or dealer | S
50.000 | | Net
capital requirement
(greater
above
of
two
minimum requirement amounts) | S
50.000 | | Net
capital in
excessof required minimum | S
73 633 | | Ratio:
Aggregate indebtedness
to net capital | 1-96 to 1 | ### **RECONCILIATION WITH COMPANY'S COMPUTATION** **The foiowing serves to reconcile differences in the computation of net capital under Rule 15c3-1 from the Company's computation.** | Net
capital
as reported in
the Company's
unaudited
Focus report | \$
208,616 | |-----------------------------------------------------------------------------------|---------------| | Increase in
nonallowable receivable from broker dealer in
excess of 30 days | (24,983) | | Increase
in
accountspayable | (60,000) | | Net
capital
per audited
report | S 123.633 | {18}------------------------------------------------ **Review Report of Independent Registered Public Accounting Firm** **On Management's Exemption Report** **Required By SEC Rule 17a-5** **For the Year Ended December 31, 2018** {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) ## **Report ofIndependent Registered Public Accounting Firm** **To the Board of Directors JTa Securities Management, Inc. dba Titan Securities, Inc.** **We have reviewed management's statements, included in the accompanying JTa Securities Management, Inc. dba Titan Securities, Inc.'s Exemption Report, in which (1) JTa Securities Management, Inc. dba Titan Securities, lnc.(the Company) identified the following provisions of 17 C.F.R. §15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240.15c3-3: k(2)(ii) (the exemption provisions) and (2) the Company stated that the Company met the identified exemption provisions throughout the most recent fiscal year without exception, the Company'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 the Company'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 k(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934.** **Dallas, Texas March 14, 2019** {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) # TITAN SECURITIES **Investments Investment Banking Insurance** ### Titan Securities'Exemption Report Titan Securities (the "Company\*) is a registered broker-dealersubject to Rule17a-5 promulgated by the Securities and Exchange Commission (17 CF.R.§240.17a-5, "Reports to be made by certain brokers and dealers").This Exemption Report was prepared as required by 17CF.R.§240.17a-5(d](l) and (4).To the best of its knowledge and belief, the Company statesthe following: - (1) The Company claimed an exemption from 17 C.F.R.§240.15c3-3 under the following provisions of 17CF.R.§240.15(3-3(k) (2)(ii). - (2) The Company met the identified exemption provisions in 17CF.R.§240.15c3-3(k) throughout the most recent fiscal year without exception. Titan Securities I, Brad Brooks,swear (or affirm) that, to my best knowledge and belief, this exemption report is true and correct. • » Title:President / CEO 2/8/2019 **16775 Addison Rd. Suite 202, Addison,TX 75001 972-980-5920 Telephone 800-520-7103 Toll Free Member FINRA; SEPC** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.