# KINETICS FUNDS DISTRIBUTOR LLC X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: KINETICS FUNDS DISTRIBUTOR LLC - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0000092407-26-000002 - CIK: 92407 - File #: 8-13923 - Type: Broker-dealer - Material weakness: No - Auditor: Alperin, Nebbia & Associates, CPA, PA - Auditor location: Fairfield, NJ - Contact: Jonathan Kohen - Phone: 646-291-2297 - Email: jkohen@horizonkinetics.com - Website: horizonkinetics.com - Signed by: Christopher Bell (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/92407/000009240726000002/kfd2025financialstmtpublic.pdf --- {0}------------------------------------------------ # **KINETICS FUNDS DISTRIBUTOR, LLC (S.E.C. NO. 8-13932)** ## **Statement of Financial Condition December 31, 2025 and Independent Auditor's Report** This report is filed as a PUBLIC document in accordance with rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ## **ANNUAL REPORTS FORM X-17A-5 PART Ill** OMBAPPROVAL 0MB Number: 3235--0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-13932 **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 _0_11_01_12_5 _ | _____ AND ENDING _1_2/_31_/2_5 _____ _ | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-----------------|------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: Kinetics Funds Distributor, LLC | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
D Major security-based swap participant
O
0 Broker-dealer
Security-based swap dealer
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.) | | | | | | | | 470 Park Avenue South, 3rd Floor | | | | | | | | (No. and Street) | | | | | | | | New York | NY | | 10016 | | | | | (City) | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Jonathan Kohen | jkohen@horizonkinetics.com
646-291-2297 | | | | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Alperin, Nebbia & Associates, CPA, PA | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | 375 Passaic Avenue | Fairfield | NJ | 07004 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 02/24/2009 | | 3397 | | | | | | (PCAOB Rellistration Number, if applicable)
(Date of Registration with PCAOB)(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 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Christopher Bell | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------| | financial report pertaining to the firm of Kinetics Funds Distributor, LLC | as of | | 12/31
2 025 | is true and correct. I further swear (or affirm) that neither the company nor any | | partner, officer, director, ore | n, as the case may be, has any proprietary interest in any account classified solely | | as that of a customer. | | | RUSSELL GRIMALDI | | | Notary Public • State of New York
NO. 02GR0039477
Qualified in Mew York County
My Commission Expires Jul 16, 2029 | Title:
CEO | **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - ~ (b) Notes to consolidated statement of financial condition. - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0 (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (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. - D 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D **(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. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - 0 (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. - D (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. - 0 (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 (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. - D (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e 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: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - 0 To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5{e}(3) or 17 CFR 240.1Ba-7{d}{2}, as applicable. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 375 Passaic Avenue Suite 200 Fairfield, NJ 07004 97 3-808-880 l Fax 973-808-8804 #### **Report of Independent Registered Public Accounting Firm** To the Member of Kinetics Funds Distributor LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Kinetics Funds Distributor LLC (the "Company") as of December 31, 2025, the related notes and schedules (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025, 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 this 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 also included assessing 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 of the financial statement provides a reasonable basis for our opinion. We have served as the Company's auditor since 2003. Alperin, Nebbia & Associates, CPA, PA Fairfield, New Jersey February 25, 2026 {4}------------------------------------------------ ### **Kinetics Fund Distributor LLC Statement of Financial Condition December 31, 2025** | Assets | | | |-------------------------------------------------|----|-----------| | Cash and cash equivalents | | 792,123 | | Investments in securities, at fair market value | | 1,031,129 | | Fees receivable | | 3,165,677 | | Prepaid expenses | | 23,726 | | Other receivable | | 4,590 | | Due from affiliate | | 52,072 | | Total assets | \$ | 5,069,317 | | Liabilities and Member's Equity | | | | Liabilities | | | | Accrued expenses | \$ | 19,500 | | Due to affiliate | | 1,302 | | Total liabilities | | 20,802 | | Commitments and contingencies | | | | Member's equity | | 5,048,515 | | Total liabilities and member's equity | \$ | 5,069,317 | {5}------------------------------------------------ #### **KINETICS FUNDS DISTRIBUTOR LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025** ### **Note A – Organization and Significant Accounting Policies** #### Nature of Business Kinetics Funds Distributor LLC, (the "Company") is a registered broker-dealer under the Securities Exchange Act of 1934. The Company acts as a broker (agent) in the distribution of shares of the Kinetics Portfolio Trust series of funds and does not receive or hold funds of subscribers or securities of issuers. The Company also acts as a private placement agent for the Kinetics Portfolio Trust and receives an annual fee for such services. #### Investments Marketable securities are considered available for sale and consist of NASDAQ common stock and various mutual funds, which are carried at fair market value. #### Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingencies in the financial statements. Actual results could differ from the estimates included in the financial statements. #### Cash and Cash Equivalents Cash and cash equivalents include investments with three months or less to maturity at the date of purchase. #### Income Taxes In May 2011, the Company became a wholly-owned subsidiary of Horizon Kinetics LLC. Any change as the result of an examination by the IRS or the State of New York after 2011 would not have an impact at the entity level. As defined by Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 740, Income Taxes, no provision or liability for materially uncertain tax positions was deemed necessary by management. Therefore, no provision or liability for uncertain tax positions has been included in these financial statements. {6}------------------------------------------------ #### **KINETICS FUNDS DISTRIBUTOR LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025** ## **Note A – Organization and Significant Accounting Policies (Continued)** #### Fair Value Measurements The Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurement and Disclosure defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the fair value hierarchy under ASC Topic 820-10-35 are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly; Level 3 – Prices or valuations that require inputs that are significant to the fair value measurement and unobservable A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At December 31, 2025, the Company has classified all of its securities owned at fair market value at Level 1 for ASC Topic 820 Fair Value Measurement purposes. #### Subsequent Events Subsequent events were evaluated through February 25, 2026 which is the date of the financial statements were available to be issued. #### **Note B – Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), that requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2025 the Company had net capital of \$1,546,159, which was \$1,521,159 in excess of its required net capital of \$25,000. The Company's net capital ratio was .013 to 1. #### **Note C – Commitments** In the course of business, the Company may maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation. Cash balances at risk as of December 31, 2025 were \$492,195. {7}------------------------------------------------ ## **KINETICS FUNDS DISTRIBUTOR LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025** ## **Note D - Related Party Transactions** The Company's sole source of income is a monthly fee for acting as the broker (agent) in the distribution of shares of the Kinetics Portfolio Trust series of funds (the "distribution agent fees"), which is paid by Kinetics Asset Management, Inc. The monthly distribution agent fees consist of: (1) \$1,000 per month (\$12,000 per annum) per fund series, plus (2) 0.01% of the average daily net assets of each fund series computed daily and paid monthly. For the year ended December 31, 2025, the distribution agent fees were \$359,422. Through December 31, 2025 the Company sublet office space from Horizon Kinetics LLC, an affiliated entity, for \$2,000 per month. The Company rents this space under a month-tomonth sublease agreement. Rent expense for the year ended December 31, 2025 was \$24,000. Affiliated loans (due to/from) are non-interest bearing account balances. #### **Note E – Investments** At December 31, 2025, the Company owned 9,000 shares of NASDAQ common stock with a fair market value of \$874,170 and cost of \$39,000. The total unrealized gain with respect to these securities at December 31, 2025 was \$835,170. The Company also owned shares of various mutual funds/ETFs with a fair market value of \$156,959 and a cost of \$35,079. The total unrealized gain with respect to these securities at December 31, 2025 was \$121,880. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.