# CONCORDE INVESTMENT SERVICES, LLC X-17A-5 (2023-03-29) — Broker-dealer annual report - Company: CONCORDE INVESTMENT SERVICES, LLC - Form: X-17A-5 - Filed: 2023-03-29 - Period: 2022-12-31 - Accession: 0001471980-23-000002 - CIK: 1471980 - File #: 8-68388 - Type: Broker-dealer - Material weakness: No - Auditor: Carnaghi & Schwark PLLC - Auditor location: Roseville, MI - Contact: Kathleen Hofer - Phone: 12488246710 - Email: khofer@concordeis.com - Website: concordeis.com - Signed by: Kathleen Hofer (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1471980/000147198023000002/2022auditreportconcorde.pdf --- {0}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | ## ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | |-------------------------------------------------| | OMB Number: 3235-0123
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12 | | | | SEC FILE NUMBER | 8-8388 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 | 01/01/2022 | AND ENDING | 12/31/2022 | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------------|-----------------------|--|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: | | Concorde Investment Services, LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes):
LI Security-based swap dealer __ Major security-based swap participant
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.) | | | | | | | 19500 Victor Parkway, Suite 550 | | | | | | | | (No. and Street) | | | | | | Livonia | MI | | 48152 | | | | (City) | | (State) | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | Kon
10 | | | | | Kathleen Hofer | 248-824-6708 | | khofer@concordeis.com | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Carnaghi & Schwark PLLC | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|------------|--| | 30435 Groesbeck Highway Roseville | | Ma | 48066 | | | (Address) | (City) | (State) | (Zip Code) | | | 05/19/2009 | | 3471 | | | | (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. | | | | | CFR 240.17a-5(E){L)(I), If applicable: Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION 1. kathleen Hofer swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Concorde Investment Services, LLC as of 12/31 2 022 \_ \_ 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. AI KAS PATEL NOTARY PUBLIC - MICHIGAN MACOMB COUNTY COMMISSION EXPIRES 01/28/2028 ING NOAKLAND COUNTY Notary Pablic - Signature: Title: CFO This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ 12) Notes to consolidated statement of financial condition. - = {c} Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [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. - | (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital on tangible 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. - [ (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-5, 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. - O (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 existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3), as applicable. {2}------------------------------------------------ FINANCIAL STATEMENTS AND SUPPORTING SCHEDULES PURSUANT TO RULE 17A-5 OF THE SECURITIES AND EXCHANGE COMMISSION FOR THE YEAR ENDED DECEMBER 31, 2022 {3}------------------------------------------------ Financial Statements and Supplementary Information December 31, 2022 # TABLE OF CONTENTS PAGE NO. Report of Independent Registered Public Accounting Firm ................................... 3 FINANCIAL STATEMENTS Balance Sheet .......................................................................................................... 4 Statement of Operations .......................................................................................... 5 Statement of ............................................................................... 6 Statement of Cash Flows ........................................................................................ 7 | Notes to Financial Statements | 8
11 | |-------------------------------|---------| #### SUPPLEMENTARY INFORMATION | Computation of Net Capital Under Rule 15c3-1 of the
Securities and Exchange Commission 13 | 14 | |-----------------------------------------------------------------------------------------------------|----| | Computation for Determination of Reserve Requirements
for Broker-Dealer Under Rule 15c3-3 | 15 | | Supplemental Report of the Status of Membership in the
SIPC Pursuant to SEC Rule 17a-5(e)(4) 16 | 17 | | Form SIPC-7 General Assessment Reconciliation 18 | 19 | | Supplemental Exemption Report Pursuant to SEC Rule 17a-5 | 20 | | Broker-Dealer Exemption Report | 21 | ![](_page_3_Picture_7.jpeg) {4}------------------------------------------------ ( 58 6 ) 7 7 9- 8 0 1 0 FA X ( 5 8 6) 3 17 - 6 13 5 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Member of Concorde Investment Services, LLC Livonia, Michigan #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Concorde Investment Services, LLC as of December 31, 2022 and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the financial statements present fairly, in all material respects, the financial position of Concorde Investment Services, LLC as of December 31, 2022 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 Concorde Investment Services, LLC responsibility is to express an opinion on Concorde Investment Services, LLC 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 Concorde Investment Services, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Supplementary Information The supplementary information contained on pages 13 to 15 has been subjected to audit procedures performed in conjunction with the audit of Concorde Investment Services, LLC information is the responsibility of Concorde Investment Services, LLC cedures 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 supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Concorde Investment Services, LLC 2010. Roseville, Michigan March 28, 2023 {5}------------------------------------------------ ## = #### BALANCE SHEET DECEMBER 31, 2022 #### ASSETS | Cash | | | |---------------------------------------------|--------------|----------------------------------------------------------------| | Accounts receivable: | | | | Brokers, dealers and clearing organizations | | | | Deposit - clearing organizations | | 1,863,691
75,012
11,577
102,572
222,549
111,805 | | Parent company | | | | Related party | | | | Other | | | | Prepaid expenses | | | | Right of use assets | | | | TOTAL ASSETS | \$ 8.185.819 | | #### LIABILITIES AND MEMBER'S EQUITY | Accounts payable | 163,091 | |-------------------------------|----------------------------------------------------------------| | Accrued commissions | 2,099,475 | | Other accrued expenses | 37,243
506,314
42,871
305,826
111,805
3,266,625 | | Amount due to parent company | | | Amount due to related parties | | | Deferred fees | | | Lease obligations | | | Total Liabilities | | #### MEMBER'S EQUITY | Member's equit | ું તે | |---------------------------------|-------| | LIARILITIES AND MEMBER'S FOUITY | | See accompanying notes. {6}------------------------------------------------ #### STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2022 | Revenue: | | |--------------------------------------------------|-----------------| | Commissions
Alternative investments \$ | 44,431,954 | | Commissions
Variable annuities | 3,132,138 | | Commissions
Mutual funds | 675,735 | | Commissions
Clearing firm | 558,378 | | Commissions
Variable universal life insurance | 97,025 | | Commissions
529 plans | 68,993 | | Due diligence fees | 9,572,422 | | Clearing firm revenue | 160,728 | | Other revenue | 393,963 | | Interest & miscellaneous | 30,189 | | Total revenue | 59,121,525 | | Commissions and clearing charges: | | | Commissions paid | 46,104,021 | | Clearing charges | 73,289 | | | | | Total commissions and clearing charges | 46,177,310 | | Gross profit from operations | 12,944,215 | | | | | Sales, general and administrative expenses | 6,636,519 | | Income before provision for income taxes | 6,307,696 | | Provision for taxes: | | | Federal income tax | 1,233,015 | | State taxes | 38,000 | | Total provision for taxes | 1,271,015 | | NET INCOME | \$
5,036,681 | See accompanying notes. {7}------------------------------------------------ ![](_page_7_Picture_0.jpeg) #### EQUITY YEAR ENDED DECEMBER 31, 2022 | | Equity | |------------------------------|-----------------| | Balance at January 1, 2022 | \$
9,845,062 | | Net income | 5,036,681 | | Additional capital paid in | | | Distributions to member ( | 9,962,549) | | Balance at December 31, 2022 | \$
4,919,194 | See accompanying notes. {8}------------------------------------------------ #### STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 | Net income | \$ | 5,036,681 | |------------------------------------------------|----|------------| | Adjustment to reconcile net income to net | | | | cash provided by operating activities: | | | | Changes in: | | | | Receivables | | 3,534,903 | | Prepaid expenses | | 1,423,809 | | Accounts payable and accrued expenses | ( | 4,041,061) | | Deferred fees | | 74,471 | | Total adjustments | | 992,122 | | Net cash provided by operating activities | | 6,028,803 | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | Distribution to member | ( | 9,962,549) | | Net cash provided by financing activities | ( | 9,962,549) | | NET INCREASE IN CASH | ( | 3,933,746) | | Cash and cash equivalents
Beginning of year | | 9,732,359 | | Cash and cash equivalents
End of year | \$ | 5,798,613 | See accompanying notes. {9}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### NOTE 1 ORGANIZATION Concorde Investment Services, LLC is a securities broker-dealer organized as a limited liability company. The Company received its articles of organization from the State of Michigan in July 2009 and registered with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in August 2010. The Company is a wholly owned subsidiary of Concorde Holdings, Inc (Parent Company). #### NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Revenue Recognition Revenue is recorded when: (i) a contract with a client has been identified, (ii) the performance obligation(s) in the contract have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation. The expenses that are directly related to such transactions are recorded as incurred and presented within operating expenses. Revenue associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within other income. The Company provides transaction related services to its customers. Securities transactions and the related commission revenue and expenses are recorded on a trade date basis. Disaggregated revenue is presented in the accompanying statement of operations. Accounts receivable and contract balances from contracts with customers were as follows. Accounts receivable approximated \$1,864,000 and \$5,448,000 as of December 31, 2022 and 2021, respectively. Contract assets were not material as of December 31, 2022 and 2021. Contract liabilities approximated \$2,099,000 and \$5,285,000 as of December 31, 2022 and 2021, respectively. #### Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. #### Financial Instruments with Off-Balance Sheet Risks and financing of various securities transactions. These activities may expose the Company to off-balance sheet risk in the event the other party to the transaction is unable to fulfill its contractual obligation. {10}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### Federal Income Taxes NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Company files a consolidated income tax return with its Parent Company and subsidiaries. The provision for Federal income taxes for the year ended December 31, 2022 is based on a separate return filing. The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740, Income Taxes. The primary objective of ASC 740 is to prescribe measurement and disclosure requirements for income tax provisions when uncertainty exists as to whether the management believes that there are no material uncertainties in which tax positions taken would not be sustained upon examination. With few exceptions, the Company is no longer subject to U.S. Federal income tax examinations for years before 2019 or state income tax examinations for years before 2018. #### Subsequent Events The Company has evaluated events and transactions for potential recognition or disclosure through March 28, 2023 which is the same date the financial statements were available to be issued. #### NOTE 3 TRANSACTIONS WITH PARENT COMPANY The Parent Company provides furniture and fixtures, personnel, general administrative and of these expenses is based on an itemized schedule of amounts paid. For the year ended December 31, 2022 charges for the services provided by Concorde Holdings, Inc. approximated \$18,000, and are included in sales, general and administrative expenses in the accompanying statement of operations. #### NOTE 4 NET CAPITAL REQUIREMENTS (Rule 15c3-1). Based on the provisions of this rule, the Company must maintain net capital equivalent to the greater of \$50,000 or 1/15th of aggregate indebtedness, as defined. At December 31, 2022, the Com totaled \$4,226,067 which was \$4,015,746 in excess of its required net capital of \$210,321. The ratio of aggregate indebtedness to net capital (which may not exceed 15 to 1) was .75 to 1. {11}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### NOTE 5 RIGHT OF USE ASSETS / LEASE OBLIGATIONS In 2019, the Company adopted ASU 2016-02 (ASC 842), Leases. The Company leases its primary office space. In accordance with ASC 842 the Company recognized a right of use (ROU) asset and the corresponding lease liability at the commencement of the lease. ROU assets and liabilities are the use of the underlying asset(s) during the lease term(s). The Company employs its incremental borrowing rate as the discount rate to determine the present value of future lease payments as the implicit rate in the lease arrangement is not readily determinable. The incremental borrowing rate is based on the rate of interest the Company would incur on a collateralized basis to borrow an amount equivalent to the lease payments under similar terms and in a similar economic environment. The rate is presently being employed for these calculations is 6.0%. Future minimum lease payments for the Company subsequent the December 31, 2022 are as follows: | Year Ended December 31 | Amount | |---------------------------------------------------|-------------------------| | 2023
2024 | \$
102,048
25,672 | | Less imputed interest | 127,720
(
15,915) | | Total ROU assets and
related lease obligations | \$
111,805 | The lease agreement includes escalation clauses for lessor taxes and other operating expenses which will increase future years minimum rental payments. For the year ended December 31, 2022, the total expense pursuant to the above leases amounted to \$100,000. Furniture and equipment is provided by the Parent Company, the charge for which is included in the administrative payments made to Concorde Holdings, Inc (see Note 3). #### NOTE 6 CONTINGENCIES At December 31, 2022, the Company was involved in various pending arbitration proceedings with the Financial Industry Regulatory Authority (FINRA) regarding claims by individuals for investment decisions made on their behalf by former registered representatives of the Company. The disposition of these matters, in the op financial position. {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS NOTE 6 CONTINGENCIES (Continued) During 2022, the Company entered into settlement agreements with individuals regarding various investment claims against the Company and its former registered representatives. The settlements approximated \$1,028,000 and are included in sales, general and administrative expenses in the statement of operations. #### NOTE 7 COVID -19 PANDEMIC IMPACTS AND RESPONSE The COVID-19 pandemic has had and will continue to have an financial condition and operations. The full extent of the impact of COVID-19 is still uncertain. The Company implemented various initiatives in order to reduce the impact of the pandemic on the business, financial condition and results of operations will depend on future developments all of which are uncertain and cannot be predicted. {13}------------------------------------------------ SUPPLEMENTARY INFORMATION {14}------------------------------------------------ #### COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION | Total ownership equity | \$4,919,194 | | |-------------------------------------------------------------------------------------------------------|-------------|--| | Deduct ownership equity not allowable for net capital | | | | Total ownership equity qualified for net capital | 4,919,194 | | | Add: | | | | a. Liabilities subordinated to claims of general creditors
allowable in computation of net capital | | | | b. Other deductions or allowable credits | | | | Total capital and allowable subordinated liabilities | 4,919,194 | | | Deduction and/or charges: | | | | a.
Total non-allowable assets from Statement of Financial
Condition | 693,127 | | | b.
Other deductions and/or charges | | | | Other additions and/or allowable credits | | | | Net capital before haircuts on securities positions | 4,226,067 | | | Haircuts on securities (computed, where applicable, pursuant to
Rule 15c3-1[f]) | | | | Net capital | 4,226,067 | | | Net capital requirement | 210,321 | | | Excess net capital | \$4,015,746 | | {15}------------------------------------------------ #### COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION #### COMPUTATION OF AGGREGATE INDEBTEDNESS | Total aggregate indebtedness liabilities | \$3,154,820 | |-----------------------------------------------------|-------------| | Percentage of aggregate indebtedness to net capital | 75% | There is no material difference between the computation of net capital as reported in Concorde Investment Services, LLC Part II (Unaudited) FOCUS report dated December 31, 2022 and the above calculations. {16}------------------------------------------------ #### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS FOR BROKER-DEALER UNDER RULE 15c3-3 Concorde Investment Services, LLC is exempt from the Computation for Determination of Reserve Requirements for Broker-Dealers under Rule 15c3-3 of the Securities and Exchange Commission because of exemption provided under Rule 15c3-3(k)(2)(ii), as a broker- broker-dealer, clears all transactions with and for customers on a fully disclosed basis with a clearing broker- {17}------------------------------------------------ ( 5 8 6 ) 7 7 9 - 8 0 1 0 F A X ( 5 8 6 ) 3 1 7 - 6 1 3 5 ## INDEPENDENT ACCOUNTANT S AGREED UPON PROCEDURES REPORT ON SCHEDULE OF ASSESSMENT AND PAYMENTS (FORM SIPC-7) To the Board of Directors and Member of Concorde Investment Services, LLC Livonia, Michigan We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2022. Management of Concorde Investment Services LLC (Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company s compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2022 Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences; - 2. Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2022 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2022. noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers noting no differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments noting no differences; and - 5. Compared the amount of any overpayment applied (if applicable) to the current assessment with the Form SIPC-7 on which it was originally computed noting no differences. {18}------------------------------------------------ We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company s Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of Concorde Investment Services, LLC and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. Roseville, Michigan March 28, 2023 {19}------------------------------------------------ | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | ം Exceptions: ഗ്ര Disposition of exceptions: Exceptions: #### SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 General Assessment Reconciliation ![](_page_19_Picture_3.jpeg) For the fiscal year ended 12/31/2022 (Read carefully the instructions in your Working Copy before completing this Form) #### TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS 1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | | Concorde Investment Services, LLC.
19500 Victor Parkway Ste 550
Livonia, MI 48152 | | | Note: If any of the information shown on the
mailing label requires correction, please e-mail
any corrections to form@sipc.org and so
indicate on the form filed. | |------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | Name and telephone number of person to | | | | | Kathleen Hofer | contact respecting this form. | | | | | | | | | | | | | | | 2. A. General Assessment (item 2e from page 2) | | | \$81.749 | | | B. Less payment made with SIPC-6 filed (exclude interest)
7/27/2022 | | | 42,219 | | | Date Paid | | | | | | C. Less prior overpayment applied | | | | | | D. Assessment balance due or (overpayment) | | | | | | E. Interest computed on late payment (see instruction E) for | | | | | | F. Total assessment balance and interest due (or overpayment carried forward) | | | 39,530 | | | G. PAYMENT: √ the box
Check mailed to P.O. Box
Total (must be same as F above) | ACH
439.539 | | | | | H. Overpayment carried forward | 399 | | | | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number): | | | | | | The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true, correct
and complete. | | | Concorde Investment Services, LLC.
Kathlessn Nofer | | | 20 23
Dated the 22 day of March | CFO | (Authorized Signature) | | | | This form and the assessment payment is due 60 days after the end of the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accessible place. | | | (Title) | | l
m | Dates:
Postmarked
Received | Reviewed | | | | EVIEW
U | Calculations_ | Documentation_ | | Forward Copy _________________________________________________________________________________________________________________________________________________________________ | {20}------------------------------------------------ #### DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT Amounts for the fiscal period beginning 01/01/2022 and ending 12/31/2023 ್ಕೆ59,121,525 Eliminate cents | ltem No | | |---------|--| 2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) #### 2b. Additions: (1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and predecessors not included above. - (2) Net loss from principal transactions in securities in trading accounts. - (3) Net loss from principal transactions in commodities in trading accounts. - (4) Interest and dividend expense deducted in determining item 2a. (5) Net loss from management of or participation in the underwriting or distribution of securities. (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net profit from management of or participation in underwriting or distribution of securities. (7) Net loss from securities in investment accounts. Total additions #### 2c. Deductions: (1) Revenues from the distribution of shares of a registered open end investment company or unit investment trust, from the sale of variable annuities, from the business of insurance, from investment advisory services rendered to registered investment companies or insurance company separate accounts, and from transactions in security futures products. (2) Revenues from commodity transactions. - (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with securities transactions. - (4) Reimbursements for postage in connection with proxy solicitation. - (5) Net gain from securities in investment accounts. - (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and (ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less from issuance date. - (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue related to the securities business (revenue defined by Section 16(9)(L) of the Act). - (8) Other revenue not related either directly or indirectly to the securities business. (See Instruction C): (Deductions in excess of \$100,000 require documentation) | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13, | | |----------------------------------------------------------------------------------------------|---------| | Code 4075 plus line 2b(4) above) but not in excess
of total interest and dividend income. | .10.290 | (ii) 40% of margin interest earned on customers securities accounts (40% of FOCUS line 5, Code 3960). | A | | | | |---|--|--|--| Enter the greater of line (i) or (ii) Total deductions 2d. SIPC Net Operating Revenues 2e. General Assessment @ 0015 | 4.622.248 | |------------------------| | ್ಕೆ 54,499,277 | | ڇ81,749 | | (to page 1, line 2 A.) | 4,538,669 73.289 {21}------------------------------------------------ ( 58 6 ) 7 7 9- 8 0 1 0 FA X ( 5 8 6) 3 17 - 6 13 5 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Member of Concorde Investment Services, LLC Livonia, Michigan We have reviewed management's statements, included in the accompanying Exemption Report, in which Concorde Investment Services, LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which Concorde Investment Services, LLC claimed the following exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) (exemption provisions) and Concorde Investment Services, LLC stated that they met the identified exemption provisions throughout the most recent year ended December 31, 2022 without exception. The Co activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 are limited to include effecting securities transactions via subscriptions on a subscription way basis where funds are payable to the issuer or its agent and not to the Company, public non-listed REITS and private placement of securities, including like-kind exchanges pursuant to Section 1031 of the Internal Revenue Code. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers: 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. 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 Concorde Investment Services, LLC iance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraphs (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5, and related SEC Staff Frequently Asked Questions. Roseville, Michigan March 28, 2023 {22}------------------------------------------------ # Concorde Investment Services, LLC Exemption Report Prepared Pursuant to Securities and Exchange Act of 1934 Rule 17a-5, Subsection 240.17a-5(d)(1) and (4) of the U.S. Securities and Exchange Commission December 31, 2022 Concorde Investment Services, LLC Exemption Report The following statements are made to the best knowledge and belief of Kathleen Hofer as chief financial officer of Concorde Investment Services, LLC: Concorde Investment Services, LLC, (the Company) is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. Section 240.17a-5, ). This Exemption Report was prepared as required by 17 C.F.R. Section 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: The Company claimed exemption from 17 C.F.R. Section 240.15c3-3 under the following provisions of 17 C.F.R. Section 240.15c3-3 (k): (2)(ii) throughout the most recent fiscal year ended December 31, 2022, without exception. The Company met the identified exemption provisions in 17 C.F.R. Section 240.15c3-3(k) ness activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. Section 240.17a-5 are limited to include (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, (2) public non-listed REITS and (3) the private placement of securities, including like-kind exchanges pursuant to Section 1031 of the Internal Revenue Code, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. I, Kathleen Hofer, affirm that, to the best of my knowledge and belief, this Exemption Report is \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Signature Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date true and correct. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.