# TAYLOR GREY, INC. X-17A-5 (2025-04-16) — Broker-dealer annual report - Company: TAYLOR GREY, INC. - Form: X-17A-5 - Filed: 2025-04-16 - Period: 2024-12-31 - Accession: 0001809178-25-000001 - CIK: 1809178 - File #: 8-70517 - Type: Broker-dealer - Material weakness: No - Auditor: Cropper Accountancy Corp - Auditor location: Walnut Creek, CA - Contact: Elizabeth Collins - Phone: 415-246-9169 - Email: hh@alchemyrecap.com - Website: alchemyrecap.com - Signed by: Henry Huang (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1809178/000180917825000001/tgaudit2024.pdf --- {0}------------------------------------------------ ## FINANCIAL STATEMENTS DECEMBER 31, 2024 {1}------------------------------------------------ | UNITED STATES | | | | | | |------------------------------------|--|--|--|--|--| | SECURITIES AND EXCHANGE COMMISSION | | | | | | | Washington, D.C. 20549 | | | | | | 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING | ___
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MM/DD/YY | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------|------------|------------------------------------------------|--|--|--| | | MM/DD/YY | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | NAME OF FIRM: Taylor Grey, Inc. | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
!S2I' Broker-dealer
□ Security-based swap dealer
□ Major security-based swap participant
D Check here if respondent is also an OTC derivatives dealer | | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | | 3158 Scholarship | | | | | | | | | | (No. and Street) | | | | | | | | California
Newport Beach | | | | 92612 | | | | | (City) | (State) | | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | (626) 241-0075
hh@alchemyrecap.com
Henry Huang | | | | | | | | | (Name) | (Area Code -Telephone Number) | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | Cropper Accountancy Corporation | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | 2700 Ygnacio Valley Blvd, Suite 270 | Walnut Creek | | California | 94598 | | | | | (Address) | (City) | | (State) | (Zip Code) | | | | | March 4, 2009 | | | 3381 | | | | | | | | | | I
(PCAOB R,g;strat;oo N,mbec, ;f appUcable) | | | | | 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 statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(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.** {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 -------~e\_c=e=m~b~e=r\_3=1\_,\_,. **2024** , 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. ~ Title: **Chief Executive Officer** Notfr0,;blic ## **This filing\*\* contains (check all applicable boxes):** - fll (a) Statement of financial condition . - D (b) Notes to consolidated statement of financial condition . - !QT (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). - IY1 (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. - IY1 (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. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - IY1 (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - !YI' (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 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ~ (o) Reconciliations, including appropriate explanat ions, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-1, 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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ls;1 (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. - D (t) Independent public accountant's report based on an examination of the statement of financial condition . - IY1 (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. - !YI' (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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}------------------------------------------------ 'LOOSE CERTIFICATE ATTACHED" State of Nevada County of **Cl~rtl** Sworn to (or affirmed) and subscribed before me on this **llo-th** day of **\_\_\_,.A~ei-,;r"'""t...\_l** \_\_\_ \_\_, 20'-':> **by \_\_ H \_\_** ~ **\_\_\_\_\_ q \_\_ Hu\_01\_n\_j------** ![](_page_3_Picture_7.jpeg) "This certificate is attached to a **Amual Repor-ts 'form )(-r1 A-5 f'ar+ 1lL** (Title or type of document), dated signed by **N** , ~ "'/ **Pt** , 20 ~,,. , of \_\_L(number ) pages, also (Name[s] of other signer[s] if any." {4}------------------------------------------------ ## **TABLE OF CONTENTS** | Report of Independent Registered Public Accounting Firm | 1 | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|--|--| | Statement of Financial Condition | 2 | | | | Statement of Operations | 3 | | | | Statement of Changes in Stockholder's Equity | 4 | | | | Statement of Cash Flows | 5 | | | | Notes to the Financial Statements | 6-9 | | | | Supporting Schedules | | | | | Schedule I: | 11 | | | | Computation of Net Capital Under Rule 15c3-1
of the Securities and Exchange Commission | | | | | Reconciliation with Company's Net Capital Computation | | | | | Schedule II: | 12 | | | | Computation for Determination of the Reserve Requirements
and Information Relating to Possession or Control
Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 | | | | | Review Report of the Independent Public Accounting Firm | 13 | | | | SEA Rule 15c3-3 Exemption Report | 14 | | | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES To the Stockholder of Taylor Grey, Inc. We have performed the procedures included in Rule l 7a-5(e)(4) under the Secmities Exchange Act of 1934 and in the Secmities 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, 2024. Management of Taylor Grey, Inc. (the Company) is responsible for its Fonn 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 purp.ose 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, 2024. 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-17 A-5 Part III for the year ended December 31 , 2024 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2024, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the atithmetical 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 AlCP A 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, 2024. 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. {6}------------------------------------------------ This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. CROPPER ACCOUNT ANCY CORPORATION Walnut Creek, California April 14, 2025 {7}------------------------------------------------ ### SECURITIES INVESTOR PROTECTION CORPORATION ## **AMENDED GENERAL ASSESSMENT FORM** For the fiscal year ended 12/31/2024 | | Determination of "SIPC NET Operating Revenues" and General Asses~
MEMBER NAME | | | SEC No. | nt for: | | |---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|------------|-------------|---------|--------| | | TAYLOR GREY INC | | | 8-70517 | | l | | | For the fiscal period beginning | 1/1/2024 | and ending | 12/31 /2024 | | | | 1 | Total Revenue (FOCUS Report- Statement of Income (Loss)- Code 4030) | | | | | \$0.00 | | 2 | Additions: | | | | | | | | a Total revenues from the securities business of subsidiaries (except foreign | | | | | | | | subsidiaries) and predecessors not included above. | | | | \$0.00 | | | | b Net loss from principal transactions in securities in trading accounts. | | | | \$0.00 | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | \$0.00 | | | | d Interest and dividend expense deducted in determining item 1 . | | | | \$0.00 | | | | e Net loss from management of or participation in the underwriting or | | | | | | | | distribution of securities. | | | | \$0.00 | | | | f Expenses other than advertising, printing, registration fees and legal fees | | | | | | | | deducted in determining net profit management of or participation in | | | | \$0.00 | | | | underwriting or distribution of securities. | | | | \$0.00 | | | | g Net loss from securities in investment accounts. | | | | | \$0.00 | | | h Add lines 2a through 2g. This is your total additions. | | | | | | | 3 | Add lines 1 and 2h | | | | | \$0.00 | | 4 | Deductions: | | | | | | | | a 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. | | | | \$0.00 | | | | b Revenues from commodity transactions. | | | | \$ 0.00 | | | | c Commissions, floor brokerage and clearance paid to other SIPC members | | | | | | | | in connection with securities transactions. | | | | \$0.00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | \$0.00 | | | | e Net gain from securities in investment accounts. | | | | \$0.00 | | | | f 100% 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. | | | | \$0.00 | | | | g 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). | | | | \$0.00 | | | | h Other revenue not related either directly or indirectly to the securities business. | | | | \$ 0.00 | | | | Deductions in excess of \$100,000 require documentation | | | | | | | 5 | a Total interest and dividend expense (FOCUS Report -
Statement
of Income (Loss)- Code 4075 plus line 2d above) but | | | | | | | | not in excess of total interest and dividend income | | \$0.00 | | | | | | b 40% of margin interest earned on customers securities accounts | | | | | | | | (40% of FOCUS Report- Statement of Income (Loss)- | | | | | | | | Code 3960) | | \$ 0.00 | | | | | | c Enter the greater of line Sa or Sb | | | | \$0.00 | | | | | | | | | | | 6 | Add lines 4a through 4h and Sc. This is your total deductions. | | | | | \$0.00 | | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | | | \$0.00 | {8}------------------------------------------------ SIPC-7A 37 REV0722 ### **AMENDED GENERAL ASSESSMENT FORM** For the fiscal year ended 12/31/2024 | 8 | Multiply line 7 by .0015. This is your General Assessment. | | | | \$0.00 | | |----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|--|-------------|----------------------------|--------| | 9 | Current overpayment/credit balance, if any | | | | \$0.00 | | | 10 | | General assessment from last filed 2024 SIPC-7 or 7A | | | \$ 0.00 | | | 11 | \$0.00
a Overpayment(s) applied on all 2024 SIPC-6 and 6A(s)
-------
\$0.00
b Overpayment(s) applied on all 2024 SIPC-7 and 7A(s)
----
\$0.00
c Any other overpayments applied
\$0.00
d All payments applied for 2024 SIPC-6 and 6A(s)
\$0.00
e All payments applied for 2024 SIPC-7 and 7A(s)
\$0.00
f Add lines 11a through 11e | | | | | | | 12 | LESSER of line 10 or 11 f. | | | | | \$0.00 | | | 13 a Amount from line 8
b Amount from line 9
c Amount from line 12 | | | | \$0.00
\$0.00
\$0.00 | | | | d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | | | | \$0.00 | | 14 | Interest (see instructions) for
42
days late at 20% per annum | | | | | \$0.00 | | 15 | | IIAmount you owe SIPC. Add lines 13d and 14. | | | | \$0.0~ | | 16 | Overpayment/credit carried forward (if applicable) | | | | | \$0.00 | | | SEC No.
8-70517 | Designated Examining Authority
DEA: FINRA | | FYE
2024 | Month
Dec | | | ~ | MEMBER NAME
MAILING ADDRESS | TAYLOR GREY INC
3158 SCHOLARSHIP
NEWPORT BEACH, CA 92612 | | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy | TAYLOR GREY INC | HENRY HUANG | |-----------------------|------------------------| | (Name of SIPC Member) | (Authorized Signatory) | | 4/14/2025 | hh@alchemyrecap.com | | (Date) | (e-mail address) | Completion of the "Authorized Signatory" line will be deemed a signature. **This form and the assessment payment are due 60 days after the end of the fiscal year.** {9}------------------------------------------------ ![](_page_9_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 Stockholder of Taylor Grey, Inc. ## **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Taylor Grey, Inc. as of December 31 , 2024, the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements''). In our opinion, the financial statements present fairly, in all material respects, the financial position of Taylor Grey, Inc. as of December 31, 2024, 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 Taylor Grey, Inc.'s management. Our responsibility is to express an opinion on Taylor Grey, Inc. 's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Taylor Grey, 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 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. ## **Auditor's Report on Supplemental Information** The supplemental info1mation, Schedule I- Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission, Schedule II - Computation for Dete1mination of the Reserve Requirements and Information Relating to Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3- 3, has been subjected to audit procedures perfo1med in conjunction with the audit of Taylor Grey, Inc.'s financial statements. The supplemental inf01mation is the responsibility of Taylor Grey, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240. l 7a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. ~~~ ACCOUNTANCY CORPORATION CROPPER We have served as Taylor Grey, Inc.'s auditor since 2021. Walnut Creek, California April 14, 2025 {10}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024** ### **ASSETS** | Cash | \$
9,082 | |------------------|--------------| | Prepaid expenses | 1,600 | | Total Assets | \$
10,682 | #### **LIABILITIES AND STOCKHOLDER'S EQUITY** | Liabilities | | |---------------------------------------------------------------|--------------| | Accounts payable | \$
3,638 | | Total Liabilities | 3,638 | | Stockholder's equity | | | Common stock, no par value per share; | | | authorized 10,000 shares; issued and outstanding 1,000 shares | 1,000 | | Additional paid in capital | 100,902 | | Accumulated deficit | ~94,858} | | Total Stockholder's Equity | 7,044 | | Total Liabilities and Stockholder's Equity | \$
10,682 | {11}------------------------------------------------ ## **STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2024** | REVENUE | | |------------------------------------|----------------| | Investment banking fees | \$ | | | | | EXPENSES | | | Professional fees | 17,051 | | Regulatory fees | 3,120 | | Other operating expenses | 2,205 | | Total Operating Expenses | 22,376 | | | | | INCOME BEFORE INCOME TAX PROVISION | | | Income tax provision | 2,284 | | Net Loss | \$
(24,660) | {12}------------------------------------------------ ## **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2024** | | | Additional | | | |-------------------------------------------|-------------|---------------|----------------|-------------| | | Common | Paid in | Accumulated | | | | Stock | Ca;eital | Deficit | Total | | Stockholder's Equity at January 1, 2024 | \$
1,000 | \$
77,902 | \$
(70,198) | \$
8,704 | | Additional paid in capital | | 23,000 | | 23,000 | | Net loss | | | ~24,660) | ~24,66oL | | Stockholder's Equity at December 31, 2024 | \$
1,000 | \$
100,902 | \$
(94,858) | \$
7,044 | {13}------------------------------------------------ ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024** ## **CASH FLOWS FROM OPERATING ACTIVITIES** Net loss Adjustments to reconcile net loss to net cash from operating activities: (Increase) decrease in: Prepaid expenses Increase (decrease) in: Accounts payable Net cash used in operating activities **CASH FLOWS FROM FINANCING ACTIVITIES** Additional paid in capital Net cash provided by financing activities Net decrease in cash Cash, beginning of period Cash, end of period **SUPPLEMENTAL CASH DISCLOSURES** Taxes paid Interest paid \$ (24,660) (800) 3,638 (21,822) 23,000 23,000 1,178 7,904 \$ 9,082 \$ \$ {14}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024** #### **1. The Company** Taylor Grey, Inc. (the "Company") is a registered broker dealer incorporated under the laws of the State of California maintaining its principal office in Newport Beach, California. The Company is a securities broker dealer registered with the Securities and Exchange Commission ("SEC") in October 2020 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company engages in private placement of securities on a fee basis. #### **2. Significant Accounting Policies** ## *Basis of Accounting* The financial statements have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America ("GA.AP"). ## *Use of Estimates* The preparation of financial statements in accordance with GA.AP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. ## *Fair Value of Financial Instruments* Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments approximate the carrying values of such amounts. The Company has no financial instruments required to be reported at fair value on a recurring basis. ### *Cash and Cash Equivalents* The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. No cash equivalents were held as of December 31, 2024. #### *Accounts Receivable* Accounts receivable represents amounts that have been earned and billed to clients in accordance with the terms of the Company's engagement letters with respective clients that have not yet been collected. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with F ASB ASC 326-20, *Finan,ial Instmments* - *Credit Losses.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financials assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supp01table forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets 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 allowance for credit losses are reported as credit loss expense on the Statement of Operations. Per management's analysis, no allowance for credit losses was considered necessary as of December 31, 2024. {15}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024** #### **2. Significant Accounting Policies** *(continued}* ### *Income Taxes* The Company has elected to be treated as an S corporation under the Internal Revenue Code. In lieu of corporate income ta..xes, the Company's income or loss is generally passed through to the stockholder's federal and 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 , 2024, California Franchise Tax of \$800 was prepaid and included as such on the Statement of Financial Condition. The Company is no longer subject to state income tax examination by authorities for years before 2020. ### *Single Reportable Segment* The Company is engaged in a single line of business as a securities broker-dealer which is comprised of investment banking services described in Note 3. 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 4), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to maintain profits or pay 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 the profit and loss of the segment are the same as those described in the policies listed above. #### **3. Revenue from Contracts with Customers** Revenue from contracts with customers is recognized when, or as, the Company satisfies performance 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 performance obligation satisfied over time is recognized by measuring progress in satisfying the performance 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 time when it is determined the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the uncertainties with respect to the amounts are resolved. In determining when to include variable 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 resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. {16}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024** ### **3. Revenue &om Contracts with Customers** *(continued)* ### *Investment Banking Fees* Investment banking revenue consists of retainer fees and success fees. Fees can be both fixed and variable and can be recognized over time and at a point in time. Retainer fees are fixed fees recognized over time using a time elapsed measure of progress as the Company's clients simultaneously receive and consume the benefits of those services as they are provided. Depending on the terms of the contract, success fees may be either fixed or variable fees. \Vhether they are fixed or variable, success fees are recognized at a point in time when the transaction is complete or upon completion of specific milestones. ### *Contract Balances* Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer 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 \$0 as of January 1, 2024 and December 31, 2024. Alternatively, 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 performance obligation is met. Deferred revenue would primarily relate to retainer fees in investment banking engagements. Deferred revenue was \$0 as of January 1, 2024 and December 31, 2024. #### *Contract Costs* Direct incremental costs to obtain or fulfill a contract are evaluated under the criteria for capitalization on a contract-by-contract basis. There were no capitalized contract costs as of December 31, 2024. ### **4. Net Capital Requirements** The Company 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 aggregate indebtedness to net capital both as defined shall not exceed 15 to 1. As of December 31, 2024, the Company had net capital of \$5,444 which was \$444 in excess of its required capital. #### **5. Commitments and Contingencies** Management is unaware of any commitments or contingencies that would materially affect the Company financials at December 31, 2024 and through the date of this report. {17}------------------------------------------------ ## **NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024** #### **6. Management Plan** During the year ended December 31, 2024, the Company incurred \$24,660 of losses, creating an accumulated deficit of \$94,858 at December 31, 2024. Ownership contributed \$23,000 during the year ended December 31, 2024. Ownership is committed and has the ability to fund the Company until revenue generating activity surpasses expenses. #### **7. Subsequent Events** The Company has evaluated all subsequent events through the date the financial statements were available for issuance. On March 24. 2025, the Company signed a purchase and sale agreement in which the member sells all equity in the Company to a third party. {18}------------------------------------------------ # SUPPORTING SCHEDULES ## PURSUANT TO RULE 17a-5 OF THE SECURITIES EXCHANGE {19}------------------------------------------------ # **SCHEDULE I** ## **COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2024** #### **NET CAPITAL** | Total stockholder's equity | | \$
7,044 | |--------------------------------------------------------------------------------------------------------------------|-------|-------------| | Less: Non-allowable assets | | | | Prepaid expenses | 1,600 | | | Total non-allowable assets | | 1,600 | | Net capital | | \$
5,444 | | Net minimum capital requirement of 6 2/3% of aggregate
indebtedness of \$3,638 or \$5,000, whichever is greater | | 5,000 | | Excess net capital | | \$
444 | ## **RECONCILIATION WITH COMPANY'S NET CAPITAL COMPUTATION (INCLUDED IN PART II OF FORM X-17A-5 AS OF DECEMBER 31, 2024)** There were no material differences between the computation of net capital presented above and the computation of net capital in the Company's audited Form X-17A-5, Part II. {20}------------------------------------------------ ## **SCHEDULE II** # **COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS AND INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS FOR BROKERS AND DEALERS PURSUANT TO RULE 15c3-3** #### **FOR THE YEAR ENDED DECEMBER 31, 2024** The Company engages in the private placement of securities. The Company does not accept customer funds or securities and will not have possession of any customer funds or securities in connection with these activities. Therefore, in reliance on Footnote 74 to SEC Release 34-70073 and, as discussed in Q & A 8 of the related FAQ issued by SEC staff, the Company will not claim an exemption from SEA Rule 15c3-3 as it does not effect transactions for anyone defined as a customer under Rule 15c3-3, and there are no items to report under the requirements of this Rule. {21}------------------------------------------------ ![](_page_21_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 Stockholder of Taylor Grey, Inc. We have reviewed management's statements, 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. l 7a-5 because the Company limits its business activities exclusively to: (1) private placement of securities, 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. Taylor Grey, Inc. 's management is responsible for compliance with the provisions of Footnote 74 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 provisions of Footnote 74. 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 April 14, 2025 {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) ### **SEA Rule 15c3-3 Exemption Report** Taylor Grey, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knmvledge and belief, the Company states the following: - 1. The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §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 or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carty accounts of or for customers; and (3) did not carry P AB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Taylor Grey, Inc. I affirm that, to my best knowledge and belief, this Exemption Report is true and correct. -~ Henry Huang ---- Managing Principal March 28, 2025 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.