# EDGAR Filing Document

**Accession Number:** 0000021879
**File Stem:** 0000021879-23-000001
**Filing Date:** 2023-3
**Character Count:** 29036
**Document Hash:** 28498a85815103531df237563d730b1a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000021879-23-000001.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0000021879-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**EFFECTIVENESS DATE**: 20230301

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** COLONIAL SECURITIES, INC.
- **CENTRAL INDEX KEY:** 0000021879
- **IRS NUMBER:** 132745786
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-17631
- **FILM NUMBER:** 23692580

**BUSINESS ADDRESS:**
- **STREET 1:** 80 BOWERY
- **STREET 2:** ROOM 603
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10013-4689
- **BUSINESS PHONE:** 212-587-3970

**MAIL ADDRESS:**
- **STREET 1:** 80 BOWERY
- **STREET 2:** ROOM 603
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10013-4689

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COLONIAL SECURITIES INC                                 /BD
- **DATE OF NAME CHANGE:** 20020516

### Attached PDF Documents

**Attachment 1:** `Colonial_Short_FINAL_2022.pdf`

COLONIAL SECURITIES, INC.
(SEC File No. 8-17631)

Financial Statements and Supplemental
Schedule for the Year Ended December 31, 2022
and Independent Auditors’ Report

This report is deemed PUBLIC
in accordance with Rule 17a-5(e)(3) under
the Securities Exchange Act of 1934.

# UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

# ANNUAL REPORTS
# FORM X-17A-5
# PART III

| OMB APPROVAL |
| --- |
| OMB Number: 3235-0123 |
| Expires: Oct. 31, 2023 |
| Estimated average burden hours per response: 12 |

| SEC FILE NUMBER |
| --- |
| 8-17631 |

## FACING PAGE

Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

FILING FOR THE PERIOD BEGINNING **01/01/2022** AND ENDING **12/31/2022**

MM/DD/YY  MM/DD/YY

## A. REGISTRANT IDENTIFICATION

NAME OF FIRM: **Colonial Securities, Inc.**

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer
☐ Security-based swap dealer
☐ Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

**80 Bowery Suite 603**
*(No. and Street)*

| New York | NY | 10013 |
| --- | --- | --- |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

| David Wong | (212) 587-3970 | david.wong@colonialsecuritie |
| --- | --- | --- |
| (Name) | (Area Code - Telephone Number) | (Email Address) |

## B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Wei, Wei and Company, LLC
*(Name - if individual, state last, first, and middle name)*

| 133-10 39th Ave | Flushing | NY | 11354 |
| --- | --- | --- | --- |
| (Address) | (City) | (State) | (Zip Code) |

(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 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-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.

# OATH OR AFFIRMATION

I, **David Wong**, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of **Colonial Securities, Inc.**, as of **December 31**, **2022**, 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.

![img-0.jpeg](img-0.jpeg)

Signature: ![img-1.jpeg](img-1.jpeg)

Title: President

## 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 income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X).
☐ (d) Statement of cash flows.
☐ (e) Statement of changes in stockholders’ or partners’ or sole proprietor’s equity.
☐ (f) Statement of changes in liabilities subordinated to claims of creditors.
☐ (g) Notes to consolidated financial statements.
☐ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
☐ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
☐ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
☐ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
☐ (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
☐ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
☐ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
☐ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital 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.
☐ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
☑ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
☐ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☑ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☐ (t) Independent public accountant’s report based on an examination of the statement of financial condition.
☐ (u) Independent public accountant’s report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
☐ (v) Independent public accountant’s report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☑ (w) Independent public accountant’s report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☐ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 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.**

WEI WEI CO., LLP CERTIFIED PUBLIC ACCOUNTANTS

- MAIN OFFICE
133-10 39TH AVENUE
FLUSHING, NY 11354
TEL. (718) 445-6308
FAX. (718) 445-6760

- CALIFORNIA OFFICE
440 E HUNTINGTON DR.
STE 300
ARCADIA, CA 91006
TEL. (626) 282-1630
FAX. (626) 282-9726

- BEIJING OFFICE
11/F NORTH TOWER
BEIJING KERRY CENTRE
1 GUANGHUA ROAD
CHAOYANG DISTRICT
BEIJING, 100020, PRC
TEL. (86 10) 65997923
FAX. (86 10) 65999100

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders
of Colonial Securities, Inc.

## Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Colonial Securities, Inc. as of December 31, 2022, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Colonial Securities, Inc. as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

## Basis for Opinion

This financial statement is the responsibility of Colonial Securities, Inc.’s management. Our responsibility is to express an opinion on Colonial Securities, Inc.’s financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Colonial Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial 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.

Wei Wei Co., LLP

We have served as Colonial Securities, Inc.’s auditor since 1998.

Flushing, NY
February 28, 2023

# COLONIAL SECURITIES, INC.

# STATEMENT OF FINANCIAL CONDITION

# DECEMBER 31, 2022

## ASSETS

| Cash (Note 2) | $72,623 |
| --- | --- |
| Deposit with clearing organization | 85,618 |
| Property and equipment, net (Notes 2 and 4) | 2,556 |
| Right-of-use asset (Notes 2 and 3) | 211,869 |
| Other assets | 31,919 |

TOTAL ASSETS $404,585

## LIABILITIES AND STOCKHOLDERS' EQUITY

| LIABILITIES: |  |
| --- | --- |
| Lease liability (Notes 2 and 3) | $204,116 |
| Accounts payable and accrued expenses | 24,938 |

Total liabilities 229,054

## COMMITMENTS AND CONTINGENCIES

| STOCKHOLDERS' EQUITY: |  |
| --- | --- |
| Common stock, no par value, |  |
| Class A, voting; authorized 500 shares; issued and outstanding 252 shares | 58,500 |
| Class B, non-voting; authorized 500 shares; issued and outstanding 120 shares | 26,460 |
| Additional paid-in capital | 98,000 |
| Retained (Deficit) | (7,429) |

Total stockholders' equity 175,531

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $404,585

See accompanying notes to financial statements.

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022

1. ORGANIZATION

Colonial Securities, Inc. (the “Company”) was incorporated in the State of New Jersey on December 11, 1972. The Company is a registered broker-dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The financial statements have been prepaid in accordance with accounting principles generally accepted in the United States of America.

Cash

The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Property, equipment and depreciation and amortization

Property and equipment are stated at cost. The cost of property and equipment is depreciated over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of the remaining term of the related lease or the estimated useful lives of the assets. Depreciation and amortization are computed on the straight-line method for both financial reporting and income tax purposes.

The useful lives of property and equipment for purposes of computing depreciation and amortization are:

Furniture and fixtures
7 years
Office equipment
5 years
Leasehold improvements
The lesser of the remaining life of the lease
or the useful life of the asset

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022

## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

### Income taxes

The Company accounts for income taxes in accordance with the Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized.

The Company follows the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. Interest costs related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as interest expense in the income statement. Penalties would be recognized as a component of general and administrative expenses. The Company does not have any accruals for uncertain tax positions as of December 31, 2022. It is not anticipated that unrecognized tax positions would significantly increase or decrease within 12 months of the reporting date.

Currently, the 2019, 2020 and 2021 tax years are open and subject to examination by the taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities.

### Leases

The Company determines if an arrangement is a lease at inception in accordance with FASB ASC 842. Operating leases are included in lease right-of-use ("ROU") assets and lease liabilities in the statement of financial condition. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized initially at the commencement date based on the present value of future minimum lease payments over the lease term (see Note 3). The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022

## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

### Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

### Fair value

FASB ASC 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 - Inputs, other than the quoted prices included within level 1, that are observable for the asset or liability either directly or indirectly.

Level 3 - Unobservable inputs for the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2022

## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

### Fair value (continued)

As of December 31, 2022, none of the assets and liabilities were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, receivable from clearing organization, other assets and accounts payable and accrued expenses, approximate fair value due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the year ended December 31, 2022.

### Recent accounting pronouncements

The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification (Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP"). The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncement are incorporated into the ASC through the issuance of Accounting Standards Updates ("ASUs").

For the year ending December 31, 2022, various ASUs issued by the FASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year then ended. The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, believes that implementation would not have a material impact on the financial statements taken as a whole.

## 3. RIGHT OF USE ASSET AND LEASE LIABILITY

The Company occupies office space in New York City. The lease expired in November 2022 and was renewed and runs through November 2027 with monthly payments of approximately $4,300. There is no renew option in current lease agreement. The Company recorded rent expense of $57,957 including utilities and real estate taxes. The Company does not have any other lease arrangements.

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2022

## 3. RIGHT OF USE ASSET AND LEASE LIABILITY (continued)

In accordance with FASB (ASU) 2016-02, “Leases (Topic 842)” the Company classified the lease as an operating lease. The Company has reviewed and based the right-of-use asset and lease liability, on the present value of unpaid future minimum lease payments. In accordance with the guidance, the Company has a ROU as of December 31, 2022 of $211,869, and a lease liability of $204,116. The expense for the lease was $51,455 for the year ended December 31, 2022 and operating cash flow paid for the lease liability during the same period was $58,474. The present value of the lease payments utilized an effective interest rate from the rate of a small business 7(A) loan over $250,000 and repaid in less than 7 years on December 1, 2022 of 7.25%.

A reconciliation of the lease liability by minimum lease payments and discount amount by year, as of December 31, 2022, are as follows:

| Year Ending December 31, | Lease Payments | Less Discount | Net Lease Liability |
| --- | --- | --- | --- |
| 2023 | $48,360 | $13,670 | $34,690 |
| 2024 | 49,811 | 11,021 | 38,790 |
| 2025 | 51,305 | 8,063 | 43,242 |
| 2026 | 52,844 | 4,770 | 48,074 |
| 2027 | 40,518 | 1,198 | 39,320 |
| Total | $242,838 | $38,722 | $204,116 |

## 4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

| Office equipment | $80,769 |
| --- | --- |
| Furniture and fixtures | 4,630 |
| Leasehold improvements | 27,240 |
| Less: accumulated depreciation | (110,083) |
|  | $2,556 |

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022

## 5. NET CAPITAL REQUIREMENTS

As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. The rule requires the maintenance of minimum net capital of $50,000 and requires the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2022, the Company had net capital of $133,304, which was $83,304 in excess of its required net capital. The Company’s net capital ratio was 0.19 to 1.

## 6. FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISK

The Company introduces all customer transactions in securities traded on U.S. securities markets to a clearing broker firm on a fully-disclosed basis. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to non-performance by customers or counter parties.

The Company’s exposure to credit risk associated with the non-performance of customers and counter parties in fulfilling their contractual obligations pursuant to these securities transactions can be directly impacted by volatile trading markets which may impair the customer’s or counter party’s ability to satisfy their obligations to the Company. In the event of non-performance, the Company may be required to purchase or sell financial instruments at unfavorable market prices resulting in a loss to the Company. The Company does not anticipate non-performance by customers and counter parties in the above situations.

The Company seeks to control the aforementioned risks by requiring customers and counter parties to maintain margin collateral in compliance with various regulatory requirements, the clearing broker’s guidelines and industry standards. The Company monitors required margin levels daily and pursuant to such guidelines, requires the customer or counter party to deposit additional collateral, or to reduce positions, when necessary.

## 7. CREDIT RISK CONCENTRATION

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash with a financial institution. The Company monitors the credit quality of the financial institution and does not anticipate any exposure. The cash balance in each financial institution is insured by the FDIC up to $250,000. At December 31, 2022, the Company did not have cash balances in excess of the FDIC insured limit.

COLONIAL SECURITIES, INC.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2022

## 8. SUBSEQUENT EVENTS

The Company’s management has performed subsequent events procedures through February 28, 2023, which is the date the financial statements were available to be issued. There were no subsequent events requiring adjustment to the financial statements or disclosures.

WEI WEI CO., LLP CERTIFIED PUBLIC ACCOUNTANTS

- MAIN OFFICE
133-10 39TH AVENUE
FLUSHING, NY 11354
TEL. (718) 445-6308
FAX. (718) 445-6760

- CALIFORNIA OFFICE
440 E HUNTINGTON DR.
STE 300
ARCADIA, CA 91006
TEL. (626) 282-1630
FAX. (626) 282-9726

- BEIJING OFFICE
11/F NORTH TOWER
BEIJING KERRY CENTRE
1 GUANGHUA ROAD
CHAOYANG DISTRICT
BEIJING, 100020, PRC
TEL. (86 10) 65997923
FAX. (86 10) 65999100

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder
of Colonial Securities, Inc.

We have reviewed management's statements, included in the accompanying Exemption Form SEC Rule 15c3-3, in which (1) Colonial Securities, Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which Colonial Securities, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3:(k)(2)(ii) (exemption provisions) and (2) Colonial Securities, Inc. stated that Colonial Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Colonial Securities, 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 Colonial Securities, 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 on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934.

Wei Wei Co., LLP

Flushing, New York
February 28, 2023

10

Colonial Securities, Inc.
80 Bowery, Room 603
New York, New York, 10013

Exemption Report
December 31, 2022

Colonial Securities, Inc. clears all customer transactions through another broker-dealer on a fully disclosed basis and therefore claims the exemptive provision (K)(2)(ii) of SEC Rule 15c3-3, which exempts the Corporation from the computation for determination of reserve requirements as provided for in that Rule.

Colonial Securities, Inc. has met the identified exemptive provision (K)(2)(ii) of SEC Rule 15c3-3 throughout the fiscal year ended December 31, 2022 without exception.

![img-0.jpeg](img-0.jpeg)

David Wong
President
February 28, 2022

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0000021879

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** No

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** COLONIAL SECURITIES, INC.

**Business Address:** 80 BOWERY, ROOM 603, NEW YORK, NY, 10013-4689

**Contact Person:** David Wong

**Contact Phone:** 2125873970

### Independent Public Accountant Identification

**Accountant Name:** Wei Wei and Company, LLC

**Accountant Address:** 133-10 39th Ave, Flushing, NY, 11354

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **David Wong**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **COLONIAL SECURITIES, INC.**, as of **12-31-2022**, are true and correct.

**Signature:** David Wong

**Title:** President

**Notarized:** Yes