# VALUABLE CAPITAL SECURITIES, LLC X-17A-5 (2023-08-29) — Broker-dealer annual report - Company: VALUABLE CAPITAL SECURITIES, LLC - Form: X-17A-5 - Filed: 2023-08-29 - Period: 2023-06-30 - Accession: 0001841658-23-000012 - CIK: 1841658 - File #: 8-70658 - Type: Broker-dealer - Material weakness: No - Auditor: Moss Adams LLP - Auditor location: Dallas, TX - Contact: Colin Lam - Phone: 949-326-5717 - Email: clam@valuableus.com - Website: valuableus.com - Signed by: Colin Lam (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1841658/000184165823000012/vcs2023_public.pdf --- {0}------------------------------------------------ # **Valuable Capital Securities, LLC** **Statement of Financial Condition Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934** **June 30, 2023 With Report of Independent Registered Public Accounting Firm** ![](_page_0_Picture_3.jpeg) {1}------------------------------------------------ OMB APPROVAL UNITED STATES OMB Number: 3235-0123 SECURITIES AND EXCHANGE COMMISSION Expires: Oct. 31, 2023 Washington, D.C. 20549 Estimated average burden hours per response: 12 ANNUAL REPORTS sec file number FORM X-17A-5 8-70658 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 07/01/2022 06/30/2023 FILING FOR THE PERIOD BEGINNING AND ENDING MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Valuable Capital Securities, LLC TYPE OF REGISTRANT (check all applicable boxes): \_ Security-based swap dealer Broker-dealer \_ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 100 Spectrum Center Drive, Suite 750 (No. and Street) Irvine CA 92618 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Colin Lam 949-326-5717 clam@valuableus.com (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Moss Adams LLP (Name - if individual, state last, first, and middle name) 14555 Dallas Parkway, Suite 300 Dallas TX 75254 (Address) (City) (State) (Zip Code) 10/16/2003 659 (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. 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Colin Lam | _ swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of Valuable Capital Securities, LLC | | as of | | August 28 | 2 023 , 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. Please See Attached For California Compliant Jurat. Je (CA Gov't Code 8202) 28 Aug 2023 Signature: Chief Financial Officer Title: Notary Public #### This filing\*\* contains (check all applicable boxes): - = (a) Statement of financial condition. - = (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive 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. - [ (I) 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 apropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 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. - □ (ρ) 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. - (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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies 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}------------------------------------------------ # California Jurat # (Calif. Gov't Code 8202) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ) ) State of California County of Orange | Subscribed and sworn to (or affirmed) before me on this 28-14 day | | | | |-------------------------------------------------------------------|-------------------------------|--|--| | of Aug. | ,2023 , by Colin Kishun Lam - | | | | | | | | proved to me on the basis of satisfactory evidence to be the person(g) who appeared before me. ![](_page_3_Picture_7.jpeg) Signature of Notary Public | 012022 | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | Optional Section | | | Note: California state law does not require this section to be completed either in full or in part. However, any
information below may prevent the accidental or fraudulent misuse of this certificate with a document for
which the certificate was not originally intended for. | | | This Certificate Is Attached To A Document (Titled/For The Purpose Of) 七のマア アメノ17A - 5 | | | The Attached Document Has A Date Of
Additional Information: "Oath or Affirmation | | | | | | CaliforniaNotarized | | (Seal) {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Board of Directors of Valuable Capital Securities, LLC #### *Opinion on the Financial Statement* We have audited the accompanying statement of financial condition of Valuable Capital Securities, LLC (the "Company") as of June 30, 2023, that is filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934, and the related notes (the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of June 30, 2023, in conformity with accounting principles generally accepted in the United States of America. #### *Basis for Opinion* This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. Dallas, Texas August 25, 2023 We have served as the Company's auditor since 2023. {5}------------------------------------------------ # Valuable Capital Securities, LLC Statement of Financial Condition June 30, 2023 # **ASSETS** | Cash and cash equivalents | \$
694,792 | |-----------------------------------------------------------|-----------------| | Receivable from broker-dealers and clearing organizations | 32,983 | | Deposit with clearing organization | 100,000 | | Other receivables | 3,029 | | Prepaid expenses and other assets | 62,330 | | Right-of-use asset | 636,281 | | Furniture and fixtures (net) | 70,145 | | Leasehold improvements (net) | 15,536 | | TOTAL ASSETS | \$
1,615,096 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accounts payable and accrued expenses | \$
151,302 | | Operating lease liability | 639,253 | | TOTAL LIABILITIES | 790,555 | | MEMBER'S EQUITY | | | TOTAL MEMBER'S EQUITY | 824,541 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
1,615,096 | See accompanying notes to statement of ĮŶĂŶĐŝĂůĐŽŶĚŝƟŽŶ {6}------------------------------------------------ #### **1. KƌŐĂŶŝnjĂƟŽŶĂŶĚƵƐŝŶĞƐƐ** sĂůƵĂďůĞĂƉŝƚĂů^ĞĐƵƌŝƟĞƐ, LLC (the "Company") is a limited liability company formed under the laws of the state of Delaware. On December 22, 2021, the Company was approved as a broker-dealer and as ƐƵĐŚŝƐƌĞŐŝƐƚĞƌĞĚǁŝƚŚƚŚĞ^ĞĐƵƌŝƟĞƐĂŶĚdžĐŚĂŶŐĞŽŵŵŝƐƐŝŽŶ;Η^ΗͿĂŶĚŝƐĂŵĞmber of the Financial /ŶĚƵƐƚƌLJZĞŐƵůĂƚŽƌLJƵƚŚŽƌŝƚLJ;Η&/EZΗͿĂŶĚƚŚĞ^ĞĐƵƌŝƟĞƐ/ŶǀĞƐƚŽƌWƌŽƚĞĐƟŽŶŽƌƉŽƌĂƟŽŶ;Η^/WΗͿ͘ dŚĞŽŵƉĂŶLJƉƌŝŵĂƌŝůLJƉƌŽǀŝĚĞƐƌĞƚĂŝůďƌŽŬĞƌĂŐĞŽĨĐŽƌƉŽƌĂƚĞĚĞďƚĂŶĚĞƋƵŝƚLJƐĞĐƵƌŝƟĞƐŽŶĂŶĂŐĞŶĐLJ basis and is focused on bringing the U.S. market to a segment of overseas retail investors alongside its ĚŽŵĞƐƟĐĐůŝĞŶƚƐ͘ The Company is a wholly owned subsidiary of Tickrs h^,ŽůĚŝŶŐƐ͕/ŶĐ͘;ƚŚĞΗWĂƌĞŶƚΗͿ͘ #### **Ϯ͘^ƵŵŵĂƌLJŽĨ^ŝŐŶŝĮĐĂŶƚĐĐŽƵŶƟŶŐWŽůŝĐŝĞƐ** #### *ĂƐŝƐŽĨWƌĞƐĞŶƚĂƟŽŶ* These ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚs ǁĞƌĞƉƌĞƉĂƌĞĚŝŶĐŽŶĨŽƌŵŝƚLJǁŝƚŚĂĐĐŽƵŶƟŶŐƉƌŝŶĐŝƉůĞƐŐĞŶĞƌĂůůLJĂĐĐĞƉƚĞĚŝŶ ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐŽĨŵĞƌŝĐĂ;Ηh͘^͘'WΗͿǁŚŝĐŚƌĞƋƵŝƌĞƐŵĂŶĂŐĞŵĞŶƚƚŽŵĂŬĞĞƐƟŵĂƚĞƐĂŶĚ ĂƐƐƵŵƉƟŽŶƐƚŚĂƚĂīĞĐƚƚŚĞƌĞƉŽƌƚĞĚĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂŶĚĚŝƐĐůŽƐƵƌĞŽĨĐŽŶƟŶŐĞŶƚĂƐƐĞƚƐ ĂŶĚůŝĂďŝůŝƟĞƐĂƚƚŚĞĚĂƚĞŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚ͘ĐƚƵĂůƌĞƐƵůƚƐĐŽƵůĚĚŝīĞƌĨƌŽŵƚŚĞƐĞĞƐƟŵĂƚĞƐ͘ # *Cash and Cash Equivalents* dŚĞŽŵƉĂŶLJŚĂƐĚĞĮŶĞĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƐŚŝŐŚůLJůŝƋƵŝĚŝŶǀĞƐƚŵĞŶƚƐ͕ǁŝƚŚŽƌŝŐŝŶĂůŵĂƚƵƌŝƟĞƐŽĨƚŚƌĞĞ months or less that are not segregated and on deposit for federal or regulatory purposes. Cash and cash equivalents include deposits with banks. #### *Clearing Deposit and Receivable from Broker-dealers and Clearing KƌŐĂŶŝnjĂƟŽŶƐ* WƵƌƐƵĂŶƚƚŽŝƚƐĐůĞĂƌŝŶŐĂŐƌĞĞŵĞŶƚs with RQD Clearing, LLC ("RQD") and Velocity Clearing, LLC ("Velocity"), ƚŚĞŽŵƉĂŶLJŝŶƚƌŽĚƵĐĞƐĂůůŽĨŝƚƐƐĞĐƵƌŝƟĞƐƚƌĂŶƐĂĐƟŽŶƐƚŽƚŚĞĐůĞĂƌŝŶŐŽƌŐĂŶŝnjĂƟŽŶƐ on a fully disclosed basis. ƵƐƚŽŵĞƌŵŽŶĞLJďĂůĂŶĐĞƐĂŶĚƐĞĐƵƌŝƟĞƐĂƌĞĐĂƌƌŝĞĚŽŶƚŚĞŬƐŽĨ the clearing ŽƌŐĂŶŝnjĂƟŽŶƐ. In accordance with the clearing agreements, the Company has agreed to indemnify the clearing ŽƌŐĂŶŝnjĂƟŽŶƐ for any ůŽƐƐĞƐǁŚŝĐŚƚŚĞĐůĞĂƌŝŶŐĮƌŵs ŵĂLJƐƵƐƚĂŝŶĨƌŽŵĐĂƌƌLJŝŶŐƐĞĐƵƌŝƟĞƐ ƚƌĂŶƐĂĐƟŽŶƐŝŶƚƌŽĚƵĐĞĚďLJƚŚĞŽŵƉĂŶLJ. Receivable from broker-ĚĞĂůĞƌƐĂŶĚĐůĞĂƌŝŶŐĮƌŵƐŝŶĐůƵĚĞƐ amounts in the Company's test accounts, fees and rebates earned. #### *Leases* The Company recognizes and measures its leases in accordance with ƚŚĞ&ŝŶĂŶĐŝĂůĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ ŽĂƌĚ;͞&^͟ͿĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐŽĚŝĮĐĂƟŽŶ;͞^͟ͿϴϰϮ͕>ĞĂƐĞƐ. The Company is a lessee in a ŶŽŶĐĂŶĐĞůůĂďůĞŽƉĞƌĂƟŶŐůĞĂƐĞĨŽƌŽĸĐĞƐƉĂĐĞǁŝƚŚƚĞƌŵƐŝŶĞdžĐĞƐƐŽĨŽŶĞLJĞĂƌ beginning March 1, 2023. The Company recognizes a lease liability and a right of use (ROU) asset at the commencement date ŽĨƚŚĞůĞĂƐĞ͘dŚĞůĞĂƐĞůŝĂďŝůŝƚLJŝƐŝŶŝƟĂůůLJĂŶĚƐƵďƐĞƋƵĞŶƚůLJƌĞĐŽŐŶŝnjĞĚďĂƐĞĚŽŶƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨŝƚƐ future lease payments. Variable payments are included in future lease payments. The discount rate of our lease is not readily determinable and accordingly, the Company uses ϴйfor the lease. The ROU {7}------------------------------------------------ asset is subsequently measured throughout the lease term at the amount of the remeasured lease ůŝĂďŝůŝƚLJ;ŝ͘Ğ͕͘ƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞƌĞŵĂŝŶŝŶŐůĞĂƐĞƉĂLJŵĞŶƚƐͿ͕ƉůƵƐƵŶĂŵŽƌƟnjĞĚŝŶŝƟĂůĚŝƌĞĐƚĐŽƐƚƐ͕ƉůƵƐ (minus) any prepaid (accrued) lease payments, less tŚĞƵŶĂŵŽƌƟnjĞĚďĂůĂŶĐĞŽĨůĞĂƐĞŝŶĐĞŶƟǀĞƐ received, and any impairment recognized. Lease cost for lease payments is recognized on a straight-line basis over the lease term. WƌŝŽƌƚŽƚŚĞĐƵƌƌĞŶƚůĞĂƐĞ͕ƚŚĞŽŵƉĂŶLJǁĂƐĂůĞƐƐĞĞŝŶĂƐŚŽƌƚ-term lease that terminated on the day preceding the date the new lease commenced. # **3. Right-of-use Assets ĂŶĚKƉĞƌĂƟŶŐ>ĞĂƐĞ>ŝĂďŝůŝƚLJ** In accordance with ASC ϴϰϮ͕ĂŶŽƉĞƌĂƟŶŐƌŝŐŚƚŽĨƵƐĞĂƐƐĞƚĂŶĚŽƉĞƌĂƟŶŐůĞĂƐĞůŝĂďŝůŝƚLJǁĞƌĞƌĞĐŽƌĚĞĚat the ĐŽŵŵĞŶĐĞŵĞŶƚŽĨƚŚĞŽĸĐĞƐƉĂĐĞůĞĂƐĞŽŶDĂƌĐŚϭ͕ϮϬϮϯ based on the present value of the future lease payments using a weighted-average discount ratĞŽĨϴй. dŚĞŝŶŝƟĂůƚĞƌŵŽĨ the lease is for 3 years and ĞdžƉŝƌĞƐŽŶ&ĞďƌƵĂƌLJϮϴ͕ϮϬϮϲ͘ &ƵƚƵƌĞŵĂƚƵƌŝƟĞƐŽĨƚŚĞŽƉĞƌĂƟŶŐůĞĂƐĞůŝĂďŝůŝƚLJare as follows: | Year | | |-------------------------------------------|---------------| | 2023 (6 months) | \$
127,803 | | 2024 | 262,815 | | 2025 | 272,122 | | 2026 (2 months) | 45,616 | | Total remaining undiscounted cash payment | 708,356 | | Less: Present value discount | (69,103) | | Operating lease liability | \$
639,253 | #### **4. Furniture and Equipment, Net** FuƌŶŝƚƵƌĞĂŶĚĞƋƵŝƉŵĞŶƚĂƌĞƐƚĂƚĞĚĂƚĐŽƐƚĂƚƚŚĞĚĂƚĞŽĨƉƵƌĐŚĂƐĞ͘ĞƉƌĞĐŝĂƟŽŶŝƐĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞ straight-line method over the ĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝǀĞƐŽĨƚŚĞĂƐƐĞƚƐ͘The useful lives of all furniture and equipment are set to 5 years. | | June 30, 2023 | |--------------------------------|---------------| | Furniture and equipment | \$
167,511 | | Less: accumulated depreciation | (97,366) | | Furniture and equipment, net | \$
70,145 | {8}------------------------------------------------ #### **5. Leasehold Improvements, Net** Leasehold improvements are stated at cost at the date of purchase ŽƌŝŶƐƚĂůůĂƟŽŶ͘ŵŽƌƟnjĂƟŽŶŝƐ calculated using the straight-line method over the term of the lease, which commenced on March 1, 2023 and ĞdžƉŝƌĞƐon &ĞďƌƵĂƌLJϮϴ͕ϮϬϮϲ͘ | | June 30, 2023 | |--------------------------------|---------------| | Leasehold improvements | \$
17,478 | | Less: accumulated amortization | (1,942) | | Leasehold improvements, net | \$
15,536 | | | | #### **6. Related-WĂƌƚLJdƌĂŶƐĂĐƟŽŶƐ** In March 2023 and April 2023, the Company ĂŶĚŝƚƐĂĸůŝĂƚĞƐsĂůƵĂďůĞĂƉŝƚĂůƌLJƉƚŽ, LLC ("VCC"), Tickrs Advisors, LLC ("TA") and Value Tech, LLC ("VT") entered into sublease agreements whereby VCC, TA and VT each pays rent to the Company for spaces occupied within the Company's ŽĸĐĞ. As of June 30, 2023, \$0 ǁĂƐƌĞĐĞŝǀĂďůĞĨƌŽŵƚŚĞĂĸůŝĂƚĞƐ͘ In February 2023, the Company and VT entered into a master service agreement whereby VT supplies ĚĞǀĞůŽƉŵĞŶƚǁŽƌŬĂƐǁĞůůĂƐƚĞĐŚŶŝĐĂůƐŽŌǁĂƌĞĂƉƉůŝĐĂƟŽŶƐĞƌǀŝĐĞƐƚŽƚŚĞŽŵƉĂŶLJ͘ƐŽĨ:ƵŶĞϯϬ͕ 2023, \$0 was payable by the Company to VT. /ŶDĂƌĐŚϮϬϮϯ͕ƚŚĞŽŵƉĂŶLJĂŶĚŝƚƐWĂƌĞŶƚĂŶĚsĞŶƚĞƌĞĚŝŶƚŽĞdžƉĞŶƐĞƐŚĂƌŝŶŐĂŐƌĞĞŵĞŶƚƐǁŚĞƌĞďLJ ƚŚĞƉĂƌƟĞƐĂŐƌĞĞƚŽƌĞŝŵďƵƌƐĞĞĂĐŚŽƚŚĞƌĨŽƌĞdžƉĞŶƐĞƐŝŶĐƵƌƌĞĚďLJŽŶĞƉĂƌƚLJĂŶĚƉĂŝĚĨŽƌďLJƚŚĞŽƚŚĞƌ party. As of June 30, 2023, \$0 was payable by the CompĂŶLJƚŽƚŚĞWĂƌĞŶƚŽƌsĂŶĚΨϬǁĂƐƌĞĐĞŝǀĂďůĞ ďLJƚŚĞŽŵƉĂŶLJĨƌŽŵƚŚĞWĂƌĞŶƚŽƌs͘ #### **7. Risk Management** dŚĞŽŵƉĂŶLJŵĂŝŶƚĂŝŶƐďĂŶŬĂĐĐŽƵŶƚƐĂƚĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐ͘dŚĞƐĞĂĐĐŽƵŶƚƐĂƌĞŝŶƐƵƌĞĚĞŝƚŚĞƌďLJƚŚĞ &ĞĚĞƌĂůĞƉŽƐŝƚ/ŶƐƵƌĂŶĐĞŽŵŵŝƐƐŝŽŶ;͞&/͟ͿƵƉƚŽΨϮϱϬ͕ϬϬϬ͕ŽƌƚŚĞ^/WƵƉƚŽΨϱϬϬ͕ϬϬϬ͘ƚƟŵĞƐ ĚƵƌŝŶŐƚŚĞLJĞĂƌ͕ĐĂƐŚďĂůĂŶĐĞƐŚĞůĚŝŶĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐǁĞƌĞŝŶĞdžĐĞƐƐŽĨƚŚĞ&/ĂŶĚ^/W͛ƐŝŶƐƵƌĞĚ ůŝŵŝƚƐ͘dŚĞŽŵƉĂŶLJŚĂƐŶŽƚĞdžƉĞƌŝĞŶĐĞĚĂŶLJůŽƐƐĞƐŝŶƐƵĐŚĂĐĐŽƵŶƚƐ͘ The Company serves as an introducing broker with a fully disclosed clearing arrangement with RQD. The ĐƵƐƚŽŵĞƌƐ͛ŽƌƚŚĞĐŽƵŶƚĞƌƉĂƌƟĞƐ͛ŝŶĂďŝůŝƚLJƚŽĨƵůĮlůƚŚĞŝƌĐŽŶƚƌĂĐƚƵĂůŽďůŝŐĂƟŽŶƐŵĂLJĞdžƉŽƐĞƚŚĞ ŽŵƉĂŶLJƚŽĐƌĞĚŝƚƌŝƐŬ͘dŚĞŽŵƉĂŶLJŵĂLJďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůĞƚĞƚƌĂŶƐĂĐƟŽŶƐĂƚƉƌĞǀĂŝůŝŶŐŵĂƌŬĞƚ ƉƌŝĐĞƐƐŚŽƵůĚƐƵĐŚĞǀĞŶƚƐŚĂƉƉĞŶ͘ĚĚŝƟŽŶĂůůLJ͕ƚŚĞŽŵƉĂŶLJŵĂLJďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂŶLJĚĂŵĂŐĞƐŽƌ losses sustĂŝŶĞĚďLJƚŚĞĐůĞĂƌŝŶŐŽƌŐĂŶŝnjĂƟŽŶƐďĞĐĂƵƐĞŽĨƐƵĐŚĞǀĞŶƚƐ͘dŚĞŽŵƉĂŶLJ͛ƐĞdžƉŽƐƵƌĞĐĂŶďĞ directly ŝŵƉĂĐƚĞĚďLJǀŽůĂƟůŝƚLJŽĨƐĞĐƵƌŝƟĞƐŵĂƌŬĞƚƐ͘dŚĞŽŵƉĂŶLJŚĂƐŶŽƚƐƵīĞƌĞĚĂŶLJůŽƐƐƌĞůĂƚĞĚƚŽ {9}------------------------------------------------ ƚŚŝƐĐƌĞĚŝƚƌŝƐŬĂŶĚƐĞĞŬƐƚŽŵĂŶĂŐĞŝƚƐƌŝƐŬƚŚƌŽƵŐŚĂǀĂƌŝĞƚLJŽĨƌĞƉŽƌƟŶŐĂŶĚĐŽŶƚƌŽůƉƌŽĐĞĚƵƌĞƐƚŽ ŵŽŶŝƚŽƌĐƵƐƚŽŵĞƌĂĐƟǀŝƟĞƐ͘ # **8. Capital and Liquidity** dŚĞŽŵƉĂŶLJŝƐĐƵƌƌĞŶƚůLJŽƉĞƌĂƟŶŐĂƚĂůŽƐƐ͘/ƚĚŽĞƐŶŽƚŚĂǀĞƐƵĸĐŝĞŶƚůŝƋƵŝĚŝƚLJƚŽŵĞĞƚŝƚƐĂŶƟĐŝƉĂƚĞĚ ŽďůŝŐĂƟŽŶƐŽǀĞƌƚŚĞŶĞdžƚLJĞĂƌĨƌŽŵƚŚĞĚĂƚĞŽĨŝƐƐƵĂŶĐĞŽĨƚŚese ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚs͘/ŶĐŽŶŶĞĐƟŽŶ ǁŝƚŚƚŚĞŽŵƉĂŶLJΖƐĂƐƐĞƐƐŵĞŶƚŽĨŐŽŝŶŐĐŽŶĐĞƌŶĐŽŶƐŝĚĞƌĂƟŽŶƐ͕ŵĂŶĂŐĞŵĞŶƚŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚƚŚĞ ŽŵƉĂŶLJŚĂƐĂĐĐĞƐƐƚŽĨƵŶĚŝŶŐĨƌŽŵƚŚĞWĂƌĞŶƚ through a revolving line of credit agreement͘dŚĞWĂƌĞŶƚ ŚĂƐĂůƐŽĐŽŶƟŶƵĞĚƚŽĨƵŶĚƚŚĞŽƉĞƌĂƟŽŶƐŽĨƚŚĞŽŵƉĂŶLJ ƚŚƌŽƵŐŚĞƋƵŝƚLJĐŽŶƚƌŝďƵƟŽŶƐ. During the twelve months ended June 30, 2023͕ƚŚĞWĂƌĞŶƚĐŽŶƚƌŝďƵƚĞĚĂƚŽƚĂůŽĨΨ3,700,000 to the Company. ### **9. Regulatory Requirements** dŚĞŽŵƉĂŶLJŝƐƐƵďũĞĐƚƚŽ^hŶŝĨŽƌŵEĞƚĂƉŝƚĂůZƵůĞϭϱĐϯ-ϭƵŶĚĞƌƚŚĞ^ĞĐƵƌŝƟĞƐdžĐŚĂŶŐĞĐƚŽĨ ϭϵϯϰ͕ǁŚŝĐŚƌĞƋƵŝƌĞƐƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨŵŝŶŝŵƵŵŶĞƚĐĂƉŝƚĂů. The Company computes its net capital ƌĞƋƵŝƌĞŵĞŶƚƵŶĚĞƌƚŚĞĂůƚĞƌŶĂƟǀĞŵĞƚŚŽĚƉƌŽǀŝĚĞĚĨŽƌŝŶZƵůĞϭϱĐϯ-1, which requires the Company to ŵĂŝŶƚĂŝŶŵŝŶŝŵƵŵŶĞƚĐĂƉŝƚĂůŽĨŶŽƚůĞƐƐƚŚĂŶϮйŽĨĂŐŐƌĞŐĂƚĞĚĞďŝƚŝƚĞŵƐĂƌŝƐŝŶŐĨƌŽŵĐƵƐƚŽŵĞƌ ƚƌĂŶƐĂĐƟŽŶƐŽƌΨϮϱϬ͕ϬϬϬ͕ǁŚŝĐŚĞǀĞƌŝƐgreater. Rule 15c3-1 also requires that equity capital may not be withdrawn or ĐĂƐŚĚŝǀŝĚĞŶĚƐƉĂŝĚŝĨƌĞƐƵůƟŶŐŶĞƚĐĂƉŝƚĂůŝƐůĞsƐƚŚĂŶϱйŽĨaggregate debit items. EĞƚ capital changes day to day. At June 30, 2023, the Company had net capital of \$ϲϳϯ,501 ǁŚŝĐŚĞdžĐĞĞĚĞĚ the required net capital of \$250,000 by \$ϰ23,501. dŚĞŽŵƉĂŶLJĚŽĞƐŶŽƚŚŽůĚĐƵƐƚŽŵĞƌƐ͛ĐĂƐŚŽƌƐĞĐƵƌŝƟĞƐ͖ƚŚĞƌĞĨŽƌĞ͕ŝƚŚĂƐŶŽŽďůŝŐĂƟŽŶƐƵŶĚĞƌ^ Rule 15c3-ϯƵŶĚĞƌƚŚĞ^ĞĐƵƌŝƟĞƐdžĐŚĂŶŐĞĐƚŽĨϭϵϯϰ͘ ### **ϭϬ͘ŽŵŵŝƚŵĞŶƚƐĂŶĚŽŶƟŶŐĞŶĐŝĞƐ** ƵƌŝŶŐƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨŝƚƐŽƉĞƌĂƟŽŶƐ͕ƚŚĞŽŵƉĂŶLJŵĂLJŝŶĐƵƌĂĚĚŝƟŽŶĂůůŝĂďŝůŝƟĞƐĚƵĞƚŽĞdžŝƐƟŶŐ ĐŽŶĚŝƟŽŶƐ͕ƐŝƚƵĂƟŽŶƐ͕ůĞŐĂůĐůĂŝŵƐ͕ƌĞŐƵůĂƚŽƌLJŵĂƩĞƌƐ͕ŽƌĐŝƌĐƵŵƐƚĂŶĐĞƐŝŶǀŽůǀŝŶŐƵŶĐĞƌƚĂŝŶƚLJĂƐƚŽ ƉŽƐƐŝďůĞůŽƐƐƚŽƚŚĞŽŵƉĂŶLJƚŚĂƚǁŝůůƵůƟŵĂƚĞůy be resolved when one or more future events occur or ĨĂŝůƚŽŽĐĐƵƌ͘dŚĞŽŵƉĂŶLJĚŽĞƐŶŽƚŚĂǀĞĂŶLJĐŽŵŵŝƚŵĞŶƚƐ͕ĐŽŶƟŶŐĞŶĐŝĞƐĂŶĚŐƵĂƌĂŶƚĞĞƐƚŽƌĞƉŽƌƚĂƐ ŽĨƚŚĞĮƐĐĂůLJĞĂƌĞŶĚĞĚ:ƵŶĞϯϬ͕ϮϬϮϯ͘ #### **11. Subsequent Events** The Company has evaluated events subsequent to the balance sheet date for items requiring recording ŽƌĚŝƐĐůŽƐƵƌĞŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚ͘dŚĞĞǀĂůƵĂƟŽŶǁĂƐƉĞƌĨŽƌŵĞĚƚŚƌŽƵŐŚAugust 25, 2023, the ĚĂƚĞƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚǁas available to be issued. During the period, the Company received a total ŽĨΨϳϬϬ͕ϬϬϬĞƋƵŝƚLJĐŽŶƚƌŝďƵƟŽŶƐĨƌŽŵƚŚĞWĂƌĞŶƚ͘dhe Company has determined that there were no other events that occurred that would require disclosure in this report or would be required to be ƌĞĐŽŐŶŝnjĞĚŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚĂƐŽĨJune 30, 2023. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.