# JB DRAX HONORE' INC. X-17A-5/A (2026-04-06) — Broker-dealer annual report - Company: JB DRAX HONORE' INC. - Form: X-17A-5/A - Filed: 2026-04-06 - Period: 2025-12-31 - Accession: 0001458859-26-000002 - CIK: 1458859 - File #: 8-68205 - Type: Broker-dealer - Material weakness: No - Auditor: Cintrin Cooperman & Company L.P. - Auditor location: New York, NY - Contact: Frederic Obsbaum - Phone: 212-897-1694 - Signed by: Frederic Obsbaum (Principal Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1458859/000145885926000002/jbdrax25s3.pdf --- {0}------------------------------------------------ # **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill | 0MB APPROVAL
0MB Number: 3235-0123 | | |---------------------------------------|--| | Expires: Nov. 30, 2026 | | | Estimated average burden | | | hours per response: 12 | | 8- 70950 #### **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 | | _0_1_f0_1_f_2_5 _
MM/DD/YY | _ AND ENDING | 12/31/25
MM/DD/YY | | |---------------------------------|---------------------|-------------------------------|--------------|----------------------|--| | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: | JB Drax Honore' Inc | | | | | TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer □ Security-based swap dealer □ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 49 West 23rd Street - 10th Floor | | (No. and Street) | | | |---------------------------------------------------------------------------|------------------------------------------------------------|-------------------------------------------|----------------| | New York | NY | | 10010 | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Fredric Obsbaum | | | (212) 897-1694 | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Citrin Cooperman & Company, L.P. | | | | | | (Name - if individual, state last, first, and middle name) | | | | 50 Rockefeller Plaza | New York | NY | 10020 | | (Address) | (City) | (State) | (Zip Code) | | 11/02/2005 | | 2468 | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, ifapplicable) | | #### **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 st atement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(l)(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 0MB control number.** {1}------------------------------------------------ # JB DRAX HONORÉ INC. STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITOR'S REPORT Year Ended December 31, 2025 {2}------------------------------------------------ # **OATH OR AFFIRMATION** I, Fredric Obsbaum , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to JB Drax Honore' Inc as of 12/31/25 , 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. Principal Financial Officer **Title** {3}------------------------------------------------ # **dŚŝƐĨŝůŝŶŐΎΎĐŽŶƚĂŝŶƐ;ĐŚĞĐŬĂůůĂƉƉůŝĐĂďůĞďŽdžĞƐͿ͗** - D ^ƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶ͘ [El - E EŽƚĞƐƚŽƵŶĐŽŶƐŽůŝĚĂƚĞĚŽƌĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶ͕ĂƐĂƉƉůŝĐĂďůĞ͘ [El - F ^ƚĂƚĞŵĞŶƚŽĨŝŶĐŽŵĞ;ůŽƐƐͿŽƌ͕ŝĨƚŚĞƌĞŝƐŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞŝŶƚŚĞƉĞƌŝŽĚ;ƐͿƉƌĞƐĞŶƚĞĚ͕ĂƐƚĂƚĞŵĞŶƚŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;ĂƐĚĞĨŝŶĞĚŝŶΑϮϭϬ͘ϭͲϬϮŽĨZĞŐƵůĂƚŝŽŶ^ͲyͿ͘ □ - G ^ƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐ͘ □ - H ^ƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶƐƚŽĐŬŚŽůĚĞƌƐ͛ŽƌƉĂƌƚŶĞƌƐ͛ŽƌŵĞŵďĞƌƐ͛ŽƌƐŽůĞƉƌŽƉƌŝĞƚŽƌ͛ƐĞƋƵŝƚLJ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - I ^ƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶůŝĂďŝůŝƚŝĞƐƐƵďŽƌĚŝŶĂƚĞĚƚŽĐůĂŝŵƐŽĨĐƌĞĚŝƚŽƌƐ͘ □ - J EŽƚĞƐƚŽƵŶĐŽŶƐŽůŝĚĂƚĞĚŽƌĐŽŶƐŽůŝĚĂƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - K ŽŵƉƵƚĂƚŝŽŶŽĨŶĞƚĐĂƉŝƚĂůƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϱĐϯͲϭŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϭ͕ĂƐ ĂƉƉůŝĐĂďůĞ͘ □ - L ŽŵƉƵƚĂƚŝŽŶŽĨƚĂŶŐŝďůĞŶĞƚǁŽƌƚŚƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϴĂͲϮ͘ □ - M ŽŵƉƵƚĂƚŝŽŶĨŽƌĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨĐƵƐƚŽŵĞƌƌĞƐĞƌǀĞƌĞƋƵŝƌĞŵĞŶƚƐƉƵƌƐƵĂŶƚƚŽdžŚŝďŝƚƚŽϭϳ&ZϮϰϬ͘ϭϱĐϯͲϯ͘ □ - N ŽŵƉƵƚĂƚŝŽŶĨŽƌĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƐĞĐƵƌŝƚLJͲďĂƐĞĚƐǁĂƉƌĞƐĞƌǀĞƌĞƋƵŝƌĞŵĞŶƚƐƉƵƌƐƵĂŶƚƚŽdžŚŝďŝƚƚŽϭϳ&Z ϮϰϬ͘ϭϱĐϯͲϯŽƌdžŚŝďŝƚƚŽϭϳ&ZϮϰϬ͘ϭϴĂͲϰ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - O ŽŵƉƵƚĂƚŝŽŶĨŽƌĞƚĞƌŵŝŶĂƚŝŽŶŽĨWZĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌdžŚŝďŝƚƚŽΑϮϰϬ͘ϭϱĐϯͲϯ͘ □ - P /ŶĨŽƌŵĂƚŝŽŶƌĞůĂƚŝŶŐƚŽƉŽƐƐĞƐƐŝŽŶŽƌĐŽŶƚƌŽůƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌĐƵƐƚŽŵĞƌƐƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϱĐϯͲϯ͘ □ - Q /ŶĨŽƌŵĂƚŝŽŶƌĞůĂƚŝŶŐƚŽƉŽƐƐĞƐƐŝŽŶŽƌĐŽŶƚƌŽůƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƐĞĐƵƌŝƚLJͲďĂƐĞĚƐǁĂƉĐƵƐƚŽŵĞƌƐƵŶĚĞƌϭϳ&Z ϮϰϬ͘ϭϱĐϯͲϯ;ƉͿ;ϮͿŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϰ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - R ZĞĐŽŶĐŝůŝĂƚŝŽŶƐ͕ŝŶĐůƵĚŝŶŐĂƉƉƌŽƉƌŝĂƚĞĞdžƉůĂŶĂƚŝŽŶƐ͕ŽĨƚŚĞ&Kh^ZĞƉŽƌƚǁŝƚŚĐŽŵƉƵƚĂƚŝŽŶŽĨŶĞƚĐĂƉŝƚĂůŽƌƚĂŶŐŝďůĞ ŶĞƚǁŽƌƚŚƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϱĐϯͲϭ͕ϭϳ&ZϮϰϬ͘ϭϴĂͲϭ͕Žƌϭϳ&ZϮϰϬ͘ϭϴĂͲϮ͕ĂƐĂƉƉůŝĐĂďůĞ͕ĂŶĚƚŚĞƌĞƐĞƌǀĞƌĞƋƵŝƌĞŵĞŶƚƐ ƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϱĐϯͲϯŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϰ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŝĨŵĂƚĞƌŝĂůĚŝĨĨĞƌĞŶĐĞƐĞdžŝƐƚ͕ŽƌĂƐƚĂƚĞŵĞŶƚƚŚĂƚŶŽŵĂƚĞƌŝĂů ĚŝĨĨĞƌĞŶĐĞƐĞdžŝƐƚ͘ □ - S ^ƵŵŵĂƌLJŽĨĨŝŶĂŶĐŝĂůĚĂƚĂĨŽƌƐƵďƐŝĚŝĂƌŝĞƐŶŽƚĐŽŶƐŽůŝĚĂƚĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶ͘ □ - T KĂƚŚŽƌĂĨĨŝƌŵĂƚŝŽŶŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚϭϳ&ZϮϰϬ͘ϭϳĂͲϱ͕ϭϳ&ZϮϰϬ͘ϭϳĂͲϭϮ͕Žƌϭϳ&ZϮϰϬ͘ϭϴĂͲϳ͕ĂƐĂƉƉůŝĐĂďůĞ͘ [El - U ŽŵƉůŝĂŶĐĞƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚϭϳ&ZϮϰϬ͘ϭϳĂͲϱŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϳ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - V džĞŵƉƚŝŽŶƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚϭϳ&ZϮϰϬ͘ϭϳĂͲϱŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϳ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - W /ŶĚĞƉĞŶĚĞŶƚƉƵďůŝĐĂĐĐŽƵŶƚĂŶƚ͛ƐƌĞƉŽƌƚďĂƐĞĚŽŶĂŶĞdžĂŵŝŶĂƚŝŽŶŽĨƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶ͘ [El - X /ŶĚĞƉĞŶĚĞŶƚƉƵďůŝĐĂĐĐŽƵŶƚĂŶƚ͛ƐƌĞƉŽƌƚďĂƐĞĚŽŶĂŶĞdžĂŵŝŶĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƵŶĚĞƌ ϭϳ&ZϮϰϬ͘ϭϳĂͲϱ͕ϭϳ&ZϮϰϬ͘ϭϴĂͲϳ͕Žƌϭϳ&ZϮϰϬ͘ϭϳĂͲϭϮ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - Y /ŶĚĞƉĞŶĚĞŶƚƉƵďůŝĐĂĐĐŽƵŶƚĂŶƚ͛ƐƌĞƉŽƌƚďĂƐĞĚŽŶĂŶĞdžĂŵŝŶĂƚŝŽŶŽĨĐĞƌƚĂŝŶƐƚĂƚĞŵĞŶƚƐŝŶƚŚĞĐŽŵƉůŝĂŶĐĞƌĞƉŽƌƚƵŶĚĞƌ ϭϳ&ZϮϰϬ͘ϭϳĂͲϱŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲϳ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - Z /ŶĚĞƉĞŶĚĞŶƚƉƵďůŝĐĂĐĐŽƵŶƚĂŶƚ͛ƐƌĞƉŽƌƚďĂƐĞĚŽŶĂƌĞǀŝĞǁŽĨƚŚĞĞdžĞŵƉƚŝŽŶƌĞƉŽƌƚƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϳĂͲϱŽƌϭϳ &ZϮϰϬ͘ϭϴĂͲϳ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - [ ^ƵƉƉůĞŵĞŶƚĂůƌĞƉŽƌƚƐŽŶĂƉƉůLJŝŶŐĂŐƌĞĞĚͲƵƉŽŶƉƌŽĐĞĚƵƌĞƐ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚϭϳ&ZϮϰϬ͘ϭϱĐϯͲϭĞŽƌϭϳ&Z ϮϰϬ͘ϭϳĂͲϭϮ͕ĂƐĂƉƉůŝĐĂďůĞ͘ □ - \ ZĞƉŽƌƚĚĞƐĐƌŝďŝŶŐĂŶLJŵĂƚĞƌŝĂůŝŶĂĚĞƋƵĂĐŝĞƐĨŽƵŶĚƚŽĞdžŝƐƚŽƌĨŽƵŶĚƚŽŚĂǀĞĞdžŝƐƚĞĚƐŝŶĐĞƚŚĞĚĂƚĞŽĨƚŚĞƉƌĞǀŝŽƵƐ ĂƵĚŝƚ͕ŽƌĂƐƚĂƚĞŵĞŶƚƚŚĂƚŶŽŵĂƚĞƌŝĂůŝŶĂĚĞƋƵĂĐŝĞƐĞdžŝƐƚ͕ƵŶĚĞƌϭϳ&ZϮϰϬ͘ϭϳĂͲϭϮ;ŬͿ͘ □ - ] KƚŚĞƌ͗ □ *ΎΎdŽƌĞƋƵĞƐƚĐŽŶĨŝĚĞŶƚŝĂůƚƌĞĂƚŵĞŶƚŽĨĐĞƌƚĂŝŶƉŽƌƚŝŽŶƐŽĨƚŚŝƐĨŝůŝŶŐ͕ƐĞĞϭϳ&ZϮϰϬ͘ϭϳĂͲϱ;ĞͿ;ϯͿŽƌϭϳ&ZϮϰϬ͘ϭϴĂͲ* *ϳ;ĚͿ;ϮͿ͕ĂƐĂƉƉůŝĐĂďůĞ.* {4}------------------------------------------------ # JB DRAX HONORÉ INC. YEAR ENDED DECEMBER 31, 2025 # CONTENTS | | Page | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial statements: | | | Statement of financial condition | 2 | | Notes to financial statement | 3-7 | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) **Citrin Cooperman & Company, LLP** Certified Public Accountants 50 Rockefeller Plaza New York, NY 10020 **T** 212.697.1000 **F** 212.202.5107 citrincooperman.com # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholder JB Drax Honoré Inc. # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of JB Drax Honoré Inc. as of December 31, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of JB Drax Honoré Inc. as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of JB Drax Honoré Inc.'s management. Our responsibility is to express an opinion on JB Drax Honoré Inc.'s financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to JB Drax Honoré 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. a reasonable basis for our **CITRIN COOPERMAN®** We have served as JB Drax Honoré Inc.'s auditor since 2017. New York, New York March 30, 2026 "Citrin Cooperman" is the brand under which Gtrin Cooperman & Company, I.LP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients' **business needs. The two firms operate as separate legal entities in an alternative practice structure. 'I'he entities of Citrin Cooperman & Company, LLP and Citrin Cooperman** Advisors LLC arc independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited **(MGNL). All the firms associated with MNA are independently owned and managed entities. 'Their membership in, or association with, MNA should not be construed as** constituting or implying any partnership between them. {6}------------------------------------------------ # JB Drax Honoré Inc. Statement of Financial Condition December 31, 2025 #### Assets | Cash | \$
10,665,812 | |------------------------------------------|------------------| | Due from affiliates | 5,649,669 | | Receivables - commissions | 1,034,313 | | Fixed assets, net | 300,202 | | Operating lease right of use assets, net | 316,310 | | Prepaid expense and other assets | 2,693,101 | | Income tax receivable | 747,306 | | Total Assets | \$
21,406,713 | # Liabilities and Stockholder's Equity | Liabilities | | |----------------------------------------------------------|------------------| | Accounts payable and accrued expenses | \$
4,043,198 | | Operating lease liabilities | 311,347 | | Deferred tax liability | 349,706 | | Income tax payable | 769,192 | | Other liabilities | 67,742 | | Total Liabilities | 5,541,185 | | Stockholder's Equity | | | Common stock (\$0.01 par value, 1,000 shares authorized, | 1 | | 100 shares issued and outstanding) | | | Additional paid-in capital | 1,000,000 | | Retained earnings | 14,865,527 | | Total Stockholder's Equity | 15,865,528 | | | | | Total Liabilities and Stockholder's Equity | \$
21,406,713 | See accompanying notes to financial statement {7}------------------------------------------------ # Note 1 – Organization and Ownership JB Drax Honoré Inc. (the "Company") is a wholly owned subsidiary of JB Drax Honoré UK (the "Parent"). The company is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA), and a registered member of the National Futures Association (NFA) and registered with the Commodity Futures Trading Commission (CFTC) as an Introducing Broker. The principal operations of the Company are located in New York City. The Company's principal business is to provide execution services to U.S. customers in various U.S. and foreign financial securities and options. # Note 2–Summary of Significant Accounting Policies #### a. Management Estimates This financial statement was prepared in conformity with current accounting principles generally accepted in the United States of America ("U.S. GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statement. Actual results could differ from those estimates. # b. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes, applying the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which the related temporary differences are anticipated to reverse. The Company evaluates its deferred tax assets each reporting period and establishes a valuation allowance when it is not more likely than not that some or all of the deferred tax assets will be realized. The Company recognizes the effects of tax positions only when it is more likely than not that such positions will be sustained upon examination by taxing authorities. The amount recognized is the largest benefit that is more than 50 percent likely of being realized upon settlement. As of December 31, 2025, the Company had no uncertain tax positions. #### c. Fixed Assets Fixed assets are recorded at cost and depreciated over their estimated useful lives, using straight-line ("SL") methods as indicated in the following tabulation. | | Years | Method | |-----------------------------------|---------------|--------| | Furniture, fixtures and equipment | 5-7 | SL | | Leasehold improvements | life of lease | SL | Repairs and maintenance charges that do not increase the useful lives of the assets are charged to the statement of operations as incurred. #### d. Leases The Company has operating lease agreements for office space under terms ranging up to 3 years with one lease having a single option to renew for a period of 5 years. The Company determines if an arrangement is a lease at the inception of the contract. At the lease commencement date, each lease is evaluated to determine whether it will be classified as an operating or finance lease. For leases with a lease term of 12 months or {8}------------------------------------------------ less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term and are not recognized on the statement of financial condition. Lease terms include the non-cancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods, termination options and purchase options. The Company uses the incremental borrowing rate when the rate implicit in the lease is not readily determinable at the commencement date in calculating the present value of lease payments. Certain leases contain fixed and determinable escalation clauses for which the Company recognizes rental expense under these leases on the straight-line basis over the lease terms. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. #### Rent The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. At the time of the lease, the Company is frequently not charged rent for a specified period of time while the facility is being prepared for opening. This rent-free period is referred to as a rent holiday. #### e. Receivables Receivables consists of commissions earned, stated net of an allowance for doubtful accounts, if any. As of December 31, 2025, the commissions receivable balance was \$ 1,034,313 (2024 - \$ 1,494,074). # f. Segment Reporting In accordance with ASU 2023-07 Segment Reporting (Topic 280) , the Company is required to disclose significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount for other segment items including a description of the composition. Additionally, ASU 2023-07 requires the Company to disclose the title and position of the CODM along with an explanation of how the CODM uses reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 also requires the Company to clarify if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources (see note 10). # Note 3 – Foreign Currency The Company's functional and reporting currency is the U.S. Dollar. # Note 4 – Fixed Assets At December, 31 2025, fixed assets consisted of: | Furniture, fixtures and equipment | \$
1,678,742 | |-----------------------------------|-----------------| | Accumulated depreciation | (1,378,540) | | Net fixed assets | \$
300,202 | {9}------------------------------------------------ # Note 5 – Operating Lease Right of Use Assets and Lease Liabilities At December 31, 2025, right of use assets consisted of: | 1,743,584 | |---------------| | (1,427,274) | | \$
316,310 | | \$ | The maturities of lease liabilities as of December 31, 2025 are: | | Year
Amount | | |------------------------------------|----------------|---------| | 2026 | \$ | 313,494 | | Total lease payments | \$ | 313,494 | | Less: interest | | (2,147) | | Present value of lease liabilities | \$ | 311,347 | Average lease terms and discount rates were: | Weighted average remaining lease term for operating leases | 10 months | |------------------------------------------------------------|-----------| | Weighted average discount rate for operating leases | 1.62 % | #### Note 6 – Concentration of Customer and Credit Risk The Company maintains its cash balances in one financial institution. At times during the year, the Company maintained balances that exceeded the federally insured limit of \$250,000. The Company believes that there is no significant risk with respect to these deposits. The Company introduces its customer transactions to both related and unrelated execution entities. Pursuant to the terms of the various agreements between the Company and another executing broker, it has the right to charge the Company for losses that result from a counterparty's failure to fulfill its obligations. As the right to charge the Company has no maximum amount and applies to all trades executed by the Company's customers, the Company believes there is no maximum amount assignable to this right. At December 31, 2025, the Company did not record liabilities with regard to the right. The Company has the ability to pursue collection from, or performance of, the counterparty. Additionally, in the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. # Note 7 – Income Taxes Income taxes are accounted for in accordance with ASC 740, which requires that deferred tax assets and liabilities be provided for all temporary differences between the book and tax basis of assets and liabilities. The Company is subject to taxation in the United States and various state and local jurisdictions. The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on January 1, {10}------------------------------------------------ 2025, prospectively. As of December 31, 2025, the Company is subject to examination by the tax authorities for tax years 2022 and later. The principal components of the Company's deferred income tax liability at December 31, 2025, consist of the following: | | Non-current
Tax Asset | Non-current
Tax Liability | |-------------------------------------------|--------------------------|------------------------------| | Assets
ROU Liability | \$ 22,083 | \$ - | | Liabilities
PP&E | - | (111,940) | | Prepaid bonuses and salaries
ROU asset | -
- | (250,063)
(9,786) | | Total | 22,083 | (371,789) | | Deferred Tax Liability, net | | \$ 349,706 | # Note 8 – Related Party Transactions The Company is provided trading, management and accounting services by other members of the group. For the year ended December 31, 2025, the Company was charged \$1,807,687 for these services. This amount is included in "Other expense" in the accompanying statement of operations. The Company receives income for providing trade support for trades booked within other members of the group. In the course of business, the Company acts as an agent for the Parent's clients. In return for these services, the Company receives commission revenues from the Parent in accordance with terms of the allocation methodology established in the Group Transfer Pricing agreement adopted in current year, between the Company and the Parent. The allocation is primarily linked to the level of work performed by the Company. For the year ended December 31, 2025, the Company received \$5,998,205 for these services. This amount is included as "Other revenue" in the accompanying statement of operations. At December 31, 2025, the Company reflected a receivable of \$5,649,669 from its affiliates, JB Drax Honoré (UK) Limited, JB Drax Honoré (Singapore), JB Drax Honoré (DIFC) Limited, JB Drax Honoré (France) SAS, JB Drax Honoré (Madrid) SAS and JB Drax Markets UK Limited in the amount of \$5,350,152, \$27,070, \$176,834, \$59,389, \$33,833 and \$2,391 respectively that is due on demand and which is included in "Due from affiliates" in the accompanying statement of financial condition. The amount due from the UK entity includes a deposit held with a clearing broker paid on behalf of JB Drax Honoré Inc., as well as a number of income items that are allocated based upon trader location instead of location where the trade occurred. Further the Company is charged for administrative employees of JB Drax Honoré (UK) Limited that reside in the UK and provide services to the Company. During the year ended December 31, 2025 the Company paid a dividend of \$10,000,000 to JB Drax Honoré (UK) Limited. The Company does not have any commitments to pay dividends, and all future dividend payments are made entirely at the discretion of the Board. {11}------------------------------------------------ # Note 9 - Commitments and Contingencies In the normal course of business, the Company may be a party to litigation or other regulatory matters. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. # Note 10 – Segment Reporting The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of agency executions for commodity instruments. The Company has identified its Chief Executive Officer as the chief operating decision maker ("CODM") who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 3), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or make distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure profit and loss of the segment are the same as those described in the summary of significant accounting policies. The measurement of segment assets is reported on the statement of financial condition as total assets. The Company's segment revenue and expenses are in line with what is in the Company's statement of operations and includes all significant categories that are provided to the CODM for review. The significant expenses include Salaries and payroll taxes, Occupancy, Insurance, Depreciation and amortization, Error account, Travel and entertainment, Professional fees, IT and other professional fees, Broker fees, Compliance costs, Market data costs, Transfer pricing including management fee, and there are no other expenses not considered to be significant. # Note 11 – Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through the date these financial statements were available to be issued. No other recognized or non-recognized subsequent events that would have required recognition, adjustment or disclosure in the financial statements were identified. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.