NOTE 3. CASH SEGREGATED IN ACCORDANCE WITH FEDERAL REGULATIONS

Wilson-Davis is required by Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to maintain a cash reserve with respect to customers’ transactions and credit balances, on a settlement date basis. Such a reserve is computed weekly using a formula provided by the rule, and the reserve account must be separate from all other bank accounts of Wilson-Davis. The required reserve as of March 31, 2026 and June 30, 2025 was calculated to be $21,878,696 and $20,890,603, respectively. As of March 31, 2026, Wilson-Davis had $23,129,837 in cash which was $1,251,141 more than the amount required. As of June 30, 2025 Wilson-Davis had $21,175,129 cash on deposit which was $284,526 more than the required amount.

Wilson-Davis is also required by Rule 15c3-3 of the Exchange Act to maintain a cash reserve with respect to broker-dealer transactions and credit balances. Such a reserve is computed weekly using a formula provided by the rule, and the reserve account must be separate from all other bank accounts of Wilson-Davis. The required reserve as of March 31, 2026 and June 30, 2025 was calculated to be $337,764 and $100,000, respectively. As of March 31, 2026 and June 30, 2025, Wilson-Davis had $676,084 and $200,575, respectively, cash on deposit in the reserve account, which was $338,320 and $100,575, respectively, more than the amount required.