# TAYLOR GREY, INC. X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: TAYLOR GREY, INC. - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0001809178-24-000001 - CIK: 1809178 - File #: 8-70517 - Type: Broker-dealer - Material weakness: No - Auditor: Cropper Accountancy - Auditor location: Walnut Creek, CA - Contact: Elizabeth Collins - Phone: 4152469169 - Website: cropperaccountancy.com - Signed by: Henry Huang (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1809178/000180917824000001/taylor2023gray1.pdf --- {0}------------------------------------------------ FINANCIAL STATEMENTS DECEMBER 31, 2023 {1}------------------------------------------------ | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | | 0MB APPROVAL
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8-70517 | | | | | PART Ill | | | | | | | | | | | | lnformatio Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | FACING PAGE | | | | | FILING FOR T E PERIOD BEGINNING | ___ | __
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_ | | | | MM/DD/VY | | | MM/DD/VY | | | | A. REGISTRANT IDENTIFICATION | | | | | : Taylor Grey, Inc. | | | | | | | NAME OF FIR | | | | | | | TYPE OF REGI TRANT (check all applicable boxes): | | | | | | | IY'f Broker-de ler | □ Secu rity-based swap dealer | | D Major security-based swap participant | | | | □ Check he e if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF | RINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | | | | | | | | (No. and Street) | | | | | | | | | | | | (City) | | California
(State) | | | 92612
(Zip Code) | | | NT ACT WITH REGARD TO THIS FILING | | | | | | | | | | | | | (Name) | | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | | | | | | | | | | | | | | Walnut Cre k | | C lifornia | 94
8 | | | | (City) | | (State) | (Zip Code) | | | | | | 3381 | | | (Date of Registrati n with PCAOB)(if applicable) | | | | | (PCAOB Registration Number, if applicable) | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | CFR 240.17a-S(e (l)(ii), if applicable. **Persons who are t respond to the collection of information contained in this form are not required to respond unless the form displays a current! valid 0MB control number.** {2}------------------------------------------------ #### OATH OR AFFIRMATION | I, Henry Huang | | | | swear (or affirm) that, to the best of my knowledge and belief, the | |--------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------------------------|---------------|-------------------------------------------------------------------------------------------------------------------------------------| | | | financial report pertaining to the firm of Taylor Grey, Inc. | | as of | | | | | | December 31, 2023 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. | | | | | | State Of | nasa a | | | | | | | | | Signature: | | | | | | | | | | | | Title:
Chief Executive Officer | | | | | | TERE ASSESSMENT CONSECTED CONSULTERS CONSULTERS FOR | | | | | | NIA JENNINGS | | Notary Public | | | | Notary Public State of Nevada | | | | | | County of Clark | | | This filing ** contains (check all applicable boxes): | | ATTACTACAGTAA | APPT. NO. 21-0124-01 | | | (a) Statement of financial condition. | | | My App. Expires Sept. 15, 2025
A POSTES FREE FESSE FENSE FOR CONTENTION OF CELECTRICAL CONTENTION | | | | [ (b) Notes to consolidated statement of financial condition. | | | | | | | | 2 (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). | | | | 1 (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. | | | | | | 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. | | | | | | [1] 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 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net | | | | | | worth under 17 CFR 240.18c3-1, 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | exist. | | | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | | | | _ (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 240.18a-7, as applicable. | | | | | | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | | | | [u] Independent public accountant's report based on an examination of the financial 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 exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ ## **TABLE OF CONTENTS** | Report of In pendent Registered Public Accounting Firm | 1 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----| | Statement of inancial Condition | 2 | | Statement of
perations | 3 | | Statement of hanges in Stockholder's Equity | 4 | | Statement of ash Flows | 5 | | Notes to the inancial Statements | 6-9 | | Supporting Sc 1edules | 10 | | Schedule : | 11 | | Comp tation of Net Capital Under Rule 15c3-1
of the ecurities and Exchange Commission
Recon iliation with Company's Net Capital Computation | | | Schedule I :
Comp ration for Determination of the Reserve Requirements
and In rmation Relating to Possession or Control
Requir ments for Brokers and Dealers Pursuant to Rule 1 Sc3-3 | 12 | | Review Report of the Independent Public Accounting Firm | 13 | | SEA Rule 1 Sc3 3 Exemption Report | 14 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 2700 Ygnacio Valley Road, Ste 270 Walnut Creek, CA 94598 (925) 932-3860 tel (925) 476-9930 efax www.cropperaccountancy.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board f Directors and Shareholders of Taylor Gre , Inc. ## **Opinion on t e Financial Statements** We have audit d the accompanying statement of financial condition of Taylor Grey, Inc. as of December 31, 2023, the relat d statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and th rdattJd notes and schedules ( collectiwly rcft:rrcd Lo as the " financial statements"). In our opinion, the fir ancial statements present fairly, in all material respects, the financial position of Taylor Grey, Inc. as of Dec mber 31, 2023, and the results of its operations and its cash flows for the year then ended in conformity wi accounting principles generally accepted in the United States of America. ## **Basis for Opi ion** These financ ia statements are the responsibility of Taylor Grey, lnc.'s management. Our responsibility is to express an opi ion on Taylor Grey, Inc. 's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Roard (United States) (PCAOR) and are required to be i dependent with respect to Taylor Grey, Inc . in accordance with the U.S. federal securities laws and the applica le rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted ur audit in accordance with the standards of the PCAOR. Those standards require that we plan and perform th audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, hether due to error or fraud . Our audit included performing procedures to assess the risks of material missta ement 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 nd significant estimates made by management, as well as evaluating the overall presentation of the financial tatements. We believe that our audit provides a reasonable basis for our opinion. ## **Auditor's Rep rt on Supplemental Information** The supplemen I information, Schedule I - Computation ofNet Capital Under Rule lScJ-1 of the Securities and Exchange ommission, Schedule II - Computation for Determination of the Reserve Requirements and Information Rel ting to Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3- 3, has been su ·ected to audit procedures perfmmed in conjunction with the audit of Taylor Grey, Inc.'s financial statem nts. The supplemental information is the responsibility of Taylor Grey, Inc.'s management. Our audit proce ures included determining whether the supplemental information reconciles to the financial statements or th • underlying accounting and other records, as applicable, and performing procedures to test the completenes and accuracy of the infonnation presented in the supplemental information. In forming our opinion on the pplemental information , we evaluated whether the supplemental information, including its ~ form and conte, t, is presented in conformity with 17 C.F.R. §240. I 7a-5 . In our opinion, the supplemental irly stated, in all ~ n relation to the financial statements as a whole. CROPPER AC UNT ANCY CORPORATION We have served s Taylor Grey, Inc.'s auditor since 2021 . Walnut Creek, C lifornia March 28, 2024 {5}------------------------------------------------ #### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** #### **ASSETS** | Cash | \$
7,904 | |------------------|-------------| | Prepaid expenses | 800 | | To
Assets | \$
8,704 | #### **LIABILITIES AND STOCKHOLDER'S EQUITY** | | \$ | |---------------------------------------------------------------|-------------| | Stoc
alder's equity | | | om.moo stock, no par value per share; | | | authorized 10,000 shares; issued and outstanding 1,000 shares | 1,000 | | dditional paid in capital | 77,902 | | \ccumulated deficit | ~70,198) | | Tota Stockholder's Equity | 8,704 | | Tota Liabilities and Stockholder's Equity | \$
8,704 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ #### **STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2023** | RE ENUE | | |------------------------------------|--------| | Investment banking fees | \$ | | | | | | | | rofessional fees | 16,000 | | egulatory fees | 2,162 | | ther operating expenses | 2,613 | | | 20,775 | | | | | INC ME BEFORE INCOME TAX PROVISION | | | ncome tax provision | 1,622 | \$ (22,397) The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ### **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2023** | | | Additional | | | |-----------------------------------------------|-------------|--------------|----------------|--------------| | | Common | Paid in | Accumulated | | | | Stock | Capital | Deficit | Total | | Stockholder's Equity a
January 1, 2023 | \$
1,000 | \$
62,750 | \$
(47,801) | \$
15,949 | | Additional paid in
pital | | 15,152 | | 15,152 | | Net loss | | | (22,397) | ~22,397) | | December 31 , 2023
Stockholder's Equity at | \$
1,000 | \$
77,902 | \$
(70,198) | \$
8,704 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ### **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023** | | CASHFLOWSF ROM OPERATING ACTIVITIES | | |--------------------------|----------------------------------------------------------------------------|----------------| | Net loss | | \$
(22,397) | | | Adjustm nts to reconcile net loss | | | | tone cash from operating activities: | | | | (In rease) decrease in: | | | | Prepaid expenses | 466 | | | | | | | Inc ease (decrease) in:
Accounts payable | | | | | ~513) | | | Net cash used in operating activities | (22,444) | | CASH FLOWS | ROM FINANCING ACTIVITIES | | | | Addition, 1 paid in capital | 15,152 | | | Net cash provided by financing activities | 15,152 | | | | | | | Net decrease in cash | (7,292) | | Cash, beginning f period | | 15,196 | | | | | | Cash, end of peri d | | \$
7,904 | | | | | | SUPPLEMENT | CASH DISCLOSURES | | | Taxes pai | | \$
====== | | Interest p ·d | | \$
====== | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The accompanying notes are an integral part of these financial statements. | | | | | | | | 5 | | | | | | {9}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023** #### **1.** Taylor State of securities 2020 an engages ey, Inc. (the "Company") is a registered broker dealer incorporated under the laws of the alifornia maintaining its principal office in Los Angeles, California. The Company is a roker dealer registered with the Securities and Exchange Commission ("SEC") in October is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company private placement of securities on a fee basis. #### **2. Significa t Accounting Policies** #### *ccounting* The fin cial statements have been prepared on the accrual basis in accordance with accounting principles enerally accepted in the United States of America ("GA.AP"). ## *Use of E timates* The prep ation of financial statements in accordance with accounting principles generally accepted in the Unite States of America requires management to make estimates and assumptions that affect the reported nounts of assets and liabilities at the date of the financial statements and the reported amounts of revenu s and expenses during the reporting period. Actual results could differ from those estimates and may h ve an impact on future periods. ## *Fair Val11 of Financial Instr11ments* Unless otl erwise indicated, the fair values of all reported assets and liabilities that represent financial instrumen approximate the carrying values of such amounts. The Company has no financial instrumen required to be reported at fair value on a recurring basis. #### *Cash and Cash Equivalents* The Com any considers all demand deposits held in banks and certain highly liquid investments with original m turities of three months or less, other than those held for sale in the ordinary course of business, t be cash equivalents. No cash equivalents were held as of December 31, 2023. #### *Accounts eceivable* Accounts r ceivable represents amounts that have been earned and billed to clients in accordance with the terms f the Company's engagement letters with respective clients that have not yet been collected. The Comp ny accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, *Financial Instruments* - *Credit LosJ s.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financia ,s assets and certain off-balance sheet exposures as of the reporting date based on relevant informatio about past events, current conditions, and reasonable and supportable forecasts. {10}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023** #### **2. Signific t Accounting Policies** *(continued)* #### *Account Receivable (continued)* The Co pany records the estimate of expected credit losses as an allowance for credit losses. For financial ssets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that is deducted from the asset's amortized cost basis. Changes in the allow nee for credit losses are reported as credit loss expense on the Statement of Operations. Per managem nt's analysis, no allowance for credit losses was considered necessary as of December 31, 2023. #### *Income axes* The Com any has elected to be treated as an S corporation under the Internal Revenue Code. In lieu of corporate income taxes, the Company's income or loss is generally passed through to the stockholder's federal an state individual income tax returns. However, the Company is liable for California Franchise Tax on S corporations at a 1.5% rate. At December 31, 2023, California Franchise Tax of \$800 was prepaid a d included as such on the Statement of Financial Condition. The Com any is no longer subject to state income ta..x examination by authorities for years before 2019. #### **3. Revenue om Contracts with Customers** Revenue from contracts with customers is recognized when, or as, the Company satisfies performa ce obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performa ce obligation satisfied over time is recognized by measuring progress in satisfying the performa ce obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in • e when it is determined the customer obtains control over the promised good or service. The amou 1t of revenue recognized reflects the consideration the Company expects to be entitled to in exchan e for those promised goods or services (i.e., the "transaction price"). In determining the transactio price, the Company considers multiple factors, including the effects of variable considerat on. Variable consideration is included in the transaction price only to the extent it is probable t at a significant reversal in the amount of cumulative revenue recogni%ed will not occur and when the uncertainties with respect to the amounts are resolved. In determining when to include va iable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of past experiences, the time period of when uncertainties expect to be resolve and the amoun t of consideration that is susceptible to factors outside of the Company's influence, uch as market volatility or the judgment and actions of third parties. {11}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023** #### **3. Revenu from Contracts with Customers** *(continued)* #### *Investm nt Banking Fees* Investm nt banking revenue consists of retainer fees and success fees. Fees can be both fixed and variable nd can be recognized over time and at a point in time. Retainer fees are fixed fees recogniz d over time using a time elapsed measure of progress as the Company's clients simultan ously receive and consume the benefits of those services as they are provided. Depending on the t rms of the contract, success fees may be either fixed or variable fees. \Xlhether they are fixed or ariable, success fees are recognized at a point in time when the transaction is complete or upon co pletion of specific milestones. #### *Contrac* Income s recognized upon completion of the related performance obligation and when an uncondi onal right to payment exists. The timing of revenue recognition may differ from the timing of custo er payments. A receivable is recognized when a performance obligation is met prior to receiving payment by the customer. Receivables related to revenue from contracts with customers totaled \$ as of January 1, 2023 and December 31, 2023. Alternati ely, fees received or billed prior to the completion of the performance obligation are recorded as deferred revenue on the statement of financial condition until such time when the performa ce obligation is met. Deferred revenue would primarily relate to retainer fees in investme t banking engagements. Deferred revenue was \$0 as of January 1, 2023 and December 31, 2023. #### *Contract osts* Direct i remental costs to obtain or fulfill a contract are evaluated under the criteria for capitaliza ·on on a contract-by-contract basis. There were no capitalized contract costs as of Decembe • 31, 2023. All broke fee related expenses are expensed as incurred and recognized within their respective expense tegory on the Statement of Operations. For the year ended December 31, 2023, there were no s ch expenses incurred. #### **4. Net Capi al Requirements** The Cor any is subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires the ·ratio of a gregate indebtedness to net capital both as defined shall not exceed 15 to 1. As of Decembe 31, 2023, the Company had net capital of \$7,904 which was \$2,904 in excess of its required c pital. {12}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023** #### **5. Manage ent Plan** During t e year ended December 31, 2023, the Company incurred \$22,397 of losses, creating an accumula ed deficit of \$70,198 at December 31, 2023. Ownership contributed \$15,152 during the year ended D cember 31 , 2023. Ownership is committed to funding the Company until revenue generating activity s passes expenses. #### **6. Subsequ nt Events** The Con pany has evaluated all subsequent events through the date the financial statements were available or issuance and has determined there were no additional, material subsequent events to disclose. {13}------------------------------------------------ # SUPPORTING SCHEDULES ## URSUANT TO RULE 17a-5 OF THE SECURITIES EXCHANGE {14}------------------------------------------------ ### SCHEDULE I ## COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023 ## NET CAPITAL | Total stockholder's equity | | ತಿ | 8,704 | |--------------------------------------------------------|-----|----|-------| | Less: Non-allowable assets | | | | | Prepaid expenses | 800 | | | | Total non-allowable assets | | | 800 | | Net capital | | | 7.904 | | Net minimum capital requirement of 6 2/3% of aggregate | | | | | indebtedness of \$0 or \$5,000, whichever is greater | | | 5,000 | | Excess net capital | | S | 2,904 | ## RECONCILIATION WITH COMPANY'S NET CAPITAL COMPUTATION (INCLUDED IN PART II OF FORM X-17A-5 AS OF DECEMBER 31, 2023) | Net capital | | | | 7.904 | |-------------|---------------------------------------|-------------------------------------------------|---|-------| | | Increase in member's equity | | | 284 | | | Increase in non-allowable assets | | | (284) | | | | Part II of Form X-17A-5 as of December 31, 2023 | S | 7.904 | | | Net capital, as reported in Company's | | | | {15}------------------------------------------------ ## **SCHEDULE II** ## **COMPUT TION FOR DETERMINATION OF THE RESERVE REQUIREMENTS D INFORMATION RELATING TO POSSESSION OR CONTROL REQUIR MENTS FOR BROKERS AND DEALERS PURSUANT TO RULE 15c3-3** #### **FOR THE YEAR ENDED DECEMBER 31, 2023** The Company er gages in the private placement of securities. The Company does not accept customer funds or securities and w· not have possession of any customer funds or securities in connection with these activities. Therefore, in reli nee on Footnote 7 4 to SEC Release 34-70073 and as discussed in Q & A 8 of the related FAQ issued by SEC st ff, the firm will not claim an exemption from SEA Rule 15c3-3 as it does not effect transactions for anyone defin as a customer under Rule 15c3-3, and there are no items to report under the requirements of this Rule. {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) 2700 Ygnacio Vallev Road, Ste 270 Walnut Creek, CA 94598 (925) 932-3860 tel (925) 476-9930 efax www.cropperaccountancy.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Taylor Grey, Inc. We have reviewed managements, included in the accompanying Exemption Report, in which (1) Taylor Grey, Inc. (the Company) did not claim an exemption under paragraph (k) of §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits its business activities exclusively to: (1) private placement of securities, and the Company (1) did not directly 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. Taylor Grey, Inc.'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 Taylor Grey, Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. CROPPER ACCOUNTANCY CORPORATION Walnut Creek, California March 28, 2024 {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) #### **SEA Rule 15c3-3 Exemption Report** Taylor Grey, nc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities an Exchange Commission (1 7 C.F.R. §240.17 a-5, "Reports to be made by certain brokers and dealers"). Thi Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowle e and belief, the Company states the following: - 1. The ompany does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and - 2. The ompany is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. §240.17 a-5 because the Company limits its business activities exclu "vely to: (1) private placement of securities, and the Company (1) did not directly or indirectly receiv , hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not cany P AB accounts (as defined in Rule 15c3-3) throughout the most recen fiscal year without exception. Taylor Grey, I c. I affirm tl1at, t my best knowledge and belief, tl1is Exemption Report is true and correct. Henry Huang Managing Prin "pal March 26, 2024 {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) 2700 Ygnacio Valley Road, Ste 270 Walnut Creek, CA 94598 (925) 932-3860 tel (925) 476-9930 efax www.cropperaccountancy.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES Board of Directors of Taylor Grey, Inc. 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 (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2023. Management of Taylor Grey, Inc. (the 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, 2023. 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 performed 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 associated 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, 2023 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2023, 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 to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. 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 a 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, 2023. 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. {19}------------------------------------------------ This report is intended solely for the information and use of the Company and SIPC and is not intended to be and sho Id not be used by anyone other than these specified parties. ~ CROPPER *A* Walnut Creek California March 28, 20 3 CORPORATION Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.