# MOORS & CABOT, INC. X-17A-5 (2026-06-25) — Broker-dealer annual report - Company: MOORS & CABOT, INC. - Form: X-17A-5 - Filed: 2026-06-25 - Period: 2025-06-30 - Accession: 0000276617-26-000003 - CIK: 276617 - File #: 8-23060 - Type: Broker-dealer - Material weakness: No - Auditor: LMHS, P.C. - Auditor location: Norwell, MA - Contact: Michael Hildreth - Phone: 6173140226 - Email: mhildreth@moorscabot.com - Website: moorscabot.com - Signed by: Michael HIldreth (President and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/276617/000027661726000003/mcpublic2025-1.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** nMA APPROVAL 0MB Number. 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under** the **Securities Exchange Act of 1934** | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------|--------------------------------------|--------------------------------------------|--| | FILING FOR THE PERIOD BEGINNING _7_/_1 /_2_4 | _____ | | ___
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AND ENDING _6_/3_0_/_2_5 | | | | | MM/DD/YY | | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FtRM: Moors & Cabot, Inc. | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
D Major security-based swap participant
D Security-based swap dealer
~ Broker-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.) | | | | | | | 1 Federal Street, 19th Floor | | | | | | | | (No. and Street) | | | | | | Boston | | MA | | 02110 | | | (City) | | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Michael C. Hildreth | 617-314-0226 | | | mhildreth@moorscabot.com | | | {Name) | (Area Code - Tglgphone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
LMHS, P.C. | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 80 Washington Street, Bldg S Norwell | | | MA | 02061 | | | (Address) | (City) | | (State) | (Zip Code) | | | 2/24/09 | | | 3373 | | | | Tte of Re~stration w;th PCAOB)Pf applkableJ | | | | (PCAOB ,.,;stration Numbe<, ;f applkable)I | | | | 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.** {1}------------------------------------------------ #### OATH **OR AFFIRMATION** | 1, Michael c. Hildreth | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------|---------------------------------------------------------------------| | financial report pertaining to the firm of Moors & Cabot, Inc. | as of | | financial report pertaining to the firm of Moors & Cabot, Inc. | as of | |----------------------------------------------------------------|---------------------------------------------------------------------------------------------| | _________ __, 2~
_J_u_n_e_3_0 | is true and correct. I further swear (or affirm) that neither the company nor any | | partner, officer, director, or equ· | ent er on, as the case may e, has any proprietary interest in any account classified solely | | as that of a customer. | | | | --2
Sign~ | | Notary
sms
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OMMONWEALTH OF M | Title: | Title: President & Chief Executive Officer **This filing\*\* contains (check all applicable boxes):** - ii (a) Statement of financial condition. - □ (b) Notes to consolidated statement offinancial 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. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. My Commissio ires 12/18/2026 - 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. - □ (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. - 0 ( o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 17 CFR 240.18.i-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. - Ii!! (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-S, 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-S 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: \_\_\_\_\_\_\_ \_ \_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_ \_ \_ \_ - - "'•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. {2}------------------------------------------------ ### MOORS & CABOT, INC. (Sec. I. D. No. 8-23060) Statement of Financial Condition and Report of Independent Regi tered Public Accounting Firm for the Year Ended June 30, 2025, and Report oflndependent Registered Accounting Firm - (Review) on Broker-Dealer Claim of Exemption From 17 C.F.R. § 15c3-3K (2) (ii) Filed in accordance with Rule 17a-5 (c) (3) As a P BLIC DOCUMENT {3}------------------------------------------------ ## FI T YEAR ENDED JUNE 30, 2025 | REPORT OF I D PE
DE T REGISTERED PUBLI
ACCOU TING FIRM | | |----------------------------------------------------------------------------------------------------------------------------------------------------|------| | Fl
A CJAL TATEME T: | | | Statement of Financial Condition | 2 | | otes to Financial
taternents | 3-10 | | REPORT OF INDEPE DE T REGI TE RED PUBLIC AC OUNTI G
FIRM - (REVIEW O
BROKER-DEALER CLAIM OF EXEMPTIO
FROM ( 17 C.F.R. § I 5c3-3k (2) (ii) | I I | | MOORS & CABOT, I C., EX MPTIO
REPORT | 12 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### *Report of Independent Regi tered Public Accounting Firm* To The Board of Directors and Stockholder Moors & abot, Inc. Boston. Massachusetts #### *Opinion* 011 *the Financial Statements* We have audited the accompanying statement of financial condition of Moors & abot, Inc. as of June 30, 2025, and the related notes (collectively referred to as the financial stat ments ·). In our opinion, the financial statements present fairly, in all material respects, the financial position of Moors & abot. Inc. a of June 30, 2025, and the results of its operations and its ca h flows for the year then ended in confonnity with accounting principles generally accepted in the United tales of America. #### *Basis/or Opinion* These financial tatements are the responsibility of the entity's management. Our responsibility is to express an opinion on the entity's financial statements based on our audit. We are a public accounting fim1 registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to Moors & Cabot, lnc. in accordance with the .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 . Moors & abot Inc. is not required to ha e, nor were we engaged to perform, an audit of its internal control over financial reporting. A part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpo e of expressing an opinion on the effectiveness of the en ti ty's internal control over financial reporting. ccordingly we express no such opin ion. 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. uch procedures included examining on a test basis, evidence regarding the amounts and disclo ures in the financia l 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. ## *LMHS.,* **P.C.** LMH P.C. We have served as Moors & Cabot, lnc.'s auditor since 2006. orwell, Massachusetts eptember 24. 2025 ![](_page_4_Picture_13.jpeg) 80 Washington Street, Building S, Norwell, MA 02061 Phone (781) 878-9111, Fax (781) 878-3666 www.lmhspc.com **mgi worldwide\_** • ![](_page_4_Picture_15.jpeg) {5}------------------------------------------------ ## MOO TATEMENTO #### ASSETS | Ca h | \$
2,527,745 | |----------------------------------------------|-----------------| | Cash, RBC Clearing Services | 1 205
,746 | | Securities Owned -
At Market Value | 1,742 106 | | Receivable : | | | Broker and Dealers | 2 878 097 | | quipment, Net of Accumulated
Property and | | | Depreciation of \$309,086 | 321 194 | | Deferred Income Tax Credit | 1,759 068 | | RBC Clearing Deposit | 50,000 | | Right of Use As et -
Office Lea e | 14,018 073 | | Prepaid E ·pen e and Other Ass ts | | | | | #### LIABILJTlE AND STOCKHOLDER"S EOUTTY | CURRE T LIABILITIES: | | |------------------------------------------------------------------|-----------------| | Accrued Cammi
ion | \$
1,962 194 | | Current Obi igation under Right of Use Asset -
Office Leases | I ,670 053 | | Account Payable and Accrued
xpen e | 1,652,184 | | | 5 284,431 | | LONG TERM LIABTLITI E : | | | Long Term Obligation under Right of Use Asset
-
Office Lea | 12 348 020 | | ubordinated to Claims of General Creditors
Liabilities | 2.000.000 | | | 14 348,020 | | STOCKHOLD R'
EQUITY: | | | Common Stock: | | | Class A (Voting) No Par Value, 12,500
hare Authorized, | | | Issued and Outstanding; Class B
on-Voting)
o Par Value, | | | 25,000 Shares Authorized, 15,250
hares Issued and Outstanding | 400 200 | | Additional Paid-In Capital | 20,769,684 | | | | | Accumulated Deficit | (15,042.291) | | Total
tock.holder s Equity | 6,127.593 | | | \$ 25,760.044 | See Note t Financ ial tatements {6}------------------------------------------------ ## MENT #### A. OUNTING POLICIES: - t. Organization Moor & Cabot, Inc. (the Company) was incorporated under the Laws of the Commonwealth of Massachusetts and commenced operations on August I, 1978. - 2. Operations The Company is engaged a a broker and dealer in securities and other financial products for a diverse group of investors. The Company introduces the e tran actions for clearance and execution ervices primarily to RSC Correspondent ervices, a division of RBC Capital Markets, LLC, a ew York Stock Exchange member firm on a fully disclo ed basis. The Company s business and results of operation are. to a large extent. dependent on investment trends of the United tate economy. The agreement between the ornpany and RSC Corre pondent ervice provide that the Company is obligated to assume any expo ure related to nonperformance by it customers. The ompany monitors it cu tomer activity by reviewing information it receives from RSC Correspondent Services on a daily ba i . requiring customers to depo it additional collateral or reduce positions as appropriate, and reserving for doubtful accounts when necessary. - 3. Basis of Accounting The financial statements are prepared using the accrual basis of accounting in accordance with accounting principle generally accepted in the United tates of America (GAAP). - 4. Cash and Cash Equivalent The company has defined cash equivalents as highly liquid investments with original maturities of less than three months that are not held for sale in the ordinary course of business. - 5. ecurities Tran action The Company accounts for securities tran actions and the related commi ion income and expen eon a trade date basis. - 6. Revenue Recognition- In May of2014 the Financial Accounting tandards Board ("FA B") is ued Accounting tandards Update ("A U") 2014-09, Revenue From Contracts with Customers ("A U 20 14-09"), which i aimed at creating common revenue recognition guidance for GAAP and the International Financial Reporting tandards ("IFR "). This guidance provides a comprehensive model for entities to use in accounting for revenue arising from contract with customers and supersedes most current revenue guidance issued by the FASB. A U 2014-09 also require both qualitative and quantitative disclosures, including descriptions of performance obligations. The Company follows the revenue recognition tandard A U 2014-09 and all related amendments ("A C 606"). Performance Obligations - Under ASC606, revenue from contract with customers is recognized when, or as. the Company ati fies its performance obligation by transferring good or ervices to customers. A good or ervice is transferred to a customer\ hen, or a , the customer obtains control of that good or service. A performance obligation ma be ati tied over time or at a point in time. Revenue from a performance obligation sati tied at a point in time i recognized at the point in time that the Company determines the customer has obtained control over the promi ed good or service. {7}------------------------------------------------ #### C. EMENT (Continued) #### A. D SUMMARY OF SIGNIFICA T ACCOUNT! G POLICIE : (Continued) The amount of revenue recognized reflects the consideration of which the Company expect to be entitled in exchange for the promised goods or services. The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Broker Dealer Commissions - the Company earns commissions by executing client transactions in tock , bond , variable annuities, mutual fund , commodities and other financial products or s rvices. Commi ion revenue i recognized on trade date when the performance obligation is satisfied. Commi sion revenue is paid to the clearing firm on ettlement date, v hich is generally two bu ine day after trade date for equity securities and bond transactions and one bu iness day for government ecuritie and commodities transactions. The Company records a receivable from the clearing firm on the trade date and receives payment on a weekly basis from the clearing firm. Investment Advisory Fees - The Company earns account management fees from providing support and services based upon the value of the client as et under management ("AUM"). The Company charges these fees, generally ba ed upon a percentage of the AUM, quarterly, in advance and recognizes the revenue with the lap e oftime. Insurance Commissions - The Company' performance obligation with respect to each contract is the ale of the insurance policy. Insurance comm is ion revenue include an initial up-front (fir t year) commi ion a well as annual trailing commi sion payment for each policy renewal. Commission on insurance renewal premiums are considered variable con ideration. ASC 606 requires that, at the time of the initial sale of a policy. the Company must estimate the variable consideration and determine the tran action price as the constrained net present value of future renewal commis ion . Therefore, the transaction price include the first year fixed commis ion and the variable consideration for the trailing commi sions. The Compan recognizes trailing commissions as cash received due to a reduction of the transaction price for po sible future chargebacks and the annual cost of maintaining the cu tomer relationship. Realized and Unrealized Gains on ecuritie - Included are realized and unrealized gain and losses from proprietary trading and net gain and los e from "riskless" principal transactions. These revenues are not ubject to A C 606. {8}------------------------------------------------ ### C. MENT (Continued) #### A. ORGANIZATION A D UMMARY OF IGNIFICANT ACCOUNT! G POLICIES: (Continued) Advisory Fees - The Company engage with an independent financial advisor who conducts their advi ory business through their own registered investment advisor ("RIA") firm. This independent entity engages the Company for clearing. regulatory and access to investment advisory platforms. The advi ory fee revenue generated by this independent financial advisor, is not included in the Company' advi ory fee revenue. The Company does. however charge the e independent RI As for technology. clearing, regulatory support and administrative ervice which are included in the Company' revenue in the statement of earning . Direct Investments consist primarily of commissions paid direct! to the ompany by mutual fund shareholder at th time of ale (front-end commissions) and fees paid to the broker/dealer by the mutual fund over a period of time referred to as l 2b- l fees. Other Revenue - Included within Other Revenue are the incentive payments from RB of\$400,000 and commissions earned from the sale of tax credit products of \$1 ,264,624 as well as miscellaneous income of\$! 585,978. The followi ng table disaggregates the Company's revenue based on the timing of satisfaction of performance obl igations for the year ended June 30 2025: | Performance Obligations Sari fied at a Point in Time | \$16,394, 136 | |------------------------------------------------------|---------------| | Performance Obligation
ati fied Over Time | 25,919,404 | | Revenue
ot Subject to A C 606 | 8, IO 1,407 | | Total Revenue | \$50,414,947 | - 7. Depreciation Depreciation of office equipment and fixtures is provided using the traight-line method over the e timated u eful lives of 3 to 15 year . o t incurred in connection with improvement to the Company's leased premise have been capitalized and are being amortized over the term of the lease using the straight-line method. - 8. Income taxes The Company is taxed as a C corporation accordingly the Company account for taxes under the liability method where a deferred tax asset or liability, is determined based on the difference between the financial statement and tax basis of the asset and liabilitie as measured by the enacted tax rate and tax rates that are expected to be in effect when these differences reverse. - 9. Uncertainty in Income and Other Taxes The Company adopted the new standard for *Accounting for Uncertainty in income Taxes* (income, ales. use and payroll). which required the Company to report any uncertain tax po ition and to adjust it financial tatement for the impact thereof. As of June 30, 2025, the Company determined that it had no tax position that did not meet the " more likely than not" threshold of being u tained by the applicable ta authority. The ompany files tax and information returns in the United tates Federal and various state juri dictions. These returns are generally ubject to examination by tax authoritie for the la t three year . {9}------------------------------------------------ # TS #### TING POLICI E (Continued) - I 0. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United tates of America requires management to make estimates and assumptions that affect the reported amounts of a sets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the repo1ted amounts of revenue and expense during the reporting period. The estimated fair value of financial instrument is determined by reference to various market data and valuation techniques, as appropriate. These techniques require the Company to develop a umption on such items as discount rates and future ca h flows. Accordingly such fair value estimate may not necessarily be indicative of the amounts the Company would realize upon a current market exchange. Actual re ults could differ from tho e estimate . - 11. Fair Value of Financial Instruments The amounts reported in the tatement of financial condition for cash, receivable from broker and dealers secured demand note receivable, accounts payable and accrued expenses and liabilities subordinated to claims of general creditors approximate fair value because of the short-term nature of these instruments. The amounts reported for securities owned and ecurities sold but not yet purchased are the fair value of those instruments. - 12. Revenue haring Agreement The Company has revenue sharing agreement with one entity Eagle Claw LLC (an RIA owned by t-. o employees of the Company). Operating activities are conducted through the re pective RIA and Moors & Cabot, Inc. is paid a fee in accordance with thi agreement. - 13. Indemnifications In the normal course of its bu iness, the Company indemnifies and guarantees ce1tain ervice provider , uch as clearing and custody agents, trustees and administrators, against pecified potential losses in connection with their acting as an agent of, or providing services to. the Company. The Company al o indemnifie orne client again t potential losse incurred in the event specified third-party service providers. including sub-cu todians and third-party broker improperly execute transactions. The maximum amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it i unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. - 14. Concentration of Credit Risk The Company is engaged in variou trading and brokerage activitie in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfi ll their obligations the Company may be exposed to risk. The ri k of default depend on the creditworthiness of the counterparty or is uer of the instrument. It is the ompany ' policy to review, a nece sary, the credit standing of each counterparty. - 15. On February 26, 20 16 the Financial Accounting tandard Board ("F ASB' ) i ued Accounting tandards Update (A U) 02016-2 Lease (topic 842) to increase tran parency and compatibility among organizations by recognizing lease as et and lea e liabilities on the tatement of financial condition and di clo ing key information about leasing transactions. {10}------------------------------------------------ ## MOO , INC. OTES TO FI TA TEMENT #### A. ORGANIZATION A D SUMMARY OF IG IFICANT ACCOUNT! G POLICIE (Continued) On July I , 2020 the ompany adopted ASU 2016-2 and applied the standards to its lease obligation. The application of this lease obligation standard resulted in no adjustments to the opening balance of retained earnings. #### B. t of trading and inve tment securities at market values as follows: | | Owned | |-----------------|-----------------| | Municipal Bonds | \$
1.730,431 | | Equitie | 11,675 | | | \$
).742 106 | #### C. FAIR VALUE MEASUREME T: FASS A C 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I inputs) and the lowest priority to measurements involving ignificant unobservable inputs (Level 3 input ). The three levels of the fair value framework are as follow : - Level I Inputs that reflect unadjusted quoted price in active markets for identical asset or liabilities at the measurement date. - Level 2 Inputs other than quoted price in active markets that are ob ervable for the asset either directly or indirectly, including input in market that are not considered to be active. - Level 3 Inputs that are unobservable A qualified as et or liability's level within the framework i based upon the lowest level of any input that is significant to the fair value measurement. The Company' qualifying assets or liabilitie are recorded at fair value using Level I inputs. The Company holds investments in marketable securities, all of which represent Level I input . F ASB ASC 320-10-25-1 require equity ecurities to be carried at market value. At June 30, 2025, equity securities had a market value of\$ I ,742, I 06 and had a cost basis of \$1 ,726.203. #### D. RELATED PARTY TRA The Company advanced money to employees primarily in the form of signing bonuse , which are amortized over the life of the contractual agreement. If an employee leaves prior to the expiration period, he or she is responsible for repayment of the unamortized po1tion. These amounts are noninterest bearing. At June 30, 2025. the amount outstanding were \$33,400 and is included on the tatement of Financial ondition in Prepaid xpenses and Other Assets. {11}------------------------------------------------ ### MOORS & CABOT, INC. NOTES TO FINANCIAL STATEMENTS (Continued) #### D. RELATED PARTY TRANSACTIONS [Continued} During the year ended June 30, 2025, the Company paid consulting fees of\$2,650,000 to Eighteen Ninety Partners, LLC, which owns 100% of the company. Revenue Sharing Agreements - As discussed in Footnote A, the Company has a revenue sharing agreement with EagleClaw Capital Management, LLC. Fees received from this entity for the year ended June 30, 2025 are as follows: Fee Income EagleClaw, LLC \$ **L,Q I 1,626** #### E. CLEARING DEPOSIT: As of June 2025, the Company has a clearing agreement with the Royal Bank of Canada ("RBC"). In conj unction with this agreement, the Company maintains a \$50,000 clearing deposit. As further discussed in Footnote G the Company has a Subordinated Term Note Payable to RBC. #### F. SUBORDINATED INDEBTEDNESS: Under the terms of the Company's agreement with its subordinated lender, RBC Clearing Services, such loans are subordinated to the claims of general creditors and are available to the Company in computing net capital pursuant to Rule I 5c3- I of the Securities and Exchange Commission (the "Commission"). To the extent that such borrowings are required for the Company's continued compliance with minimum net capital requirements, they may not be repaid . Subordinated indebtedness at June 30, 2025, matures as follows: Subordinated Term Note Payable - RBC i-2mo,ooo The RBC subordinated term note payable had an original amount of\$2,000,000 has an interest rate of 30 Day SOFR (currently 4.3417%) and was received in June 2025. Annual principal payments on this note will begin June, 2026 and end June 2028. As part of the Company's clearing agreement, semiannual incentive payments are received and applied to this note payable. As of June 30, 2025 the Company has yet to receive the first incentive payment. This will be paid June 2026. {12}------------------------------------------------ # (Continued) #### G. NET CAPITAL REOUIREME T : The Company is required to maintain minimum net capital as calculated by the Commission·s Uniform Net Capital Rule I 5c3- I (Alternative Method). At June 30, 2025, the Company had a net capital requirement of \$250 000 and net capital of \$4,624,334 resulting in exces net capital of \$4,374,334. #### H. LEA E OBLIGA TIO The Company recognizes and measures its leases in accordance with FASS A C 842, Leases. The Company is a lessee in a non-cancellable operating lease for office space. The Company determines ifan arrangement is a lea e, or contains a leas . at inception of a contract and when the term of an existing contract are changed. The Company recognize a lea e liability and right of u e (ROU) asset at the commencement date of the lease. The lea e liability is initially and subsequent! recognized based on the present value of it future payments. Variable payment are included in the future lease payments when those variable payments depend on an index or a rate. The di count rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of the Company's lease are not readily determinable and accordingly, the Company used their incremental borrowing rate based on the information available at the commencement date of the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized ba is to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payment ), plus unamortized initial direct co ts, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease cost for lea e payments i recognized on a traight-line basis over the lea e term. The ompany has entered into operating lease agreements for its office space. Minimum rental commitment under long-term operating lea es are as follows for the year ending June 30: | 2026 | \$
I 659,957 | |---------------------|------------------| | 2027 | 1,666 497 | | 2028 | 1,510,275 | | 2029 | 1,582,458 | | 2030 and Thereafter | 7.598.886 | | | \$
14,018 073 | For the year ended June 30, 2025, rent xpense amounted to \$2,490,93 I . #### I. INCOME TAXES: At June 30. 2025 the Company had a deferred income tax credit (an asset) in the amount of \$1,759,068. This deferred income tax credit is derived primarily from net operating losses. At June 30, 2025, the Company has Federal loss carry forwards of approximately \$14,832,718. Approximately \$10,000 000 expires in the year 2024 through 2026 and \$4,832,718 carrie forward indefinitely. A change in ownership control limit the ability to utilize the lo s carry-forward in full. The deferred tax asset is reflective of the limitation at June 30. 2025. {13}------------------------------------------------ # (Continued) #### J. 401 (K) PLA : The Company sponsors a defined contribution employee savings and investment plan (the Plan). The Plan qualifies under ection 401 (k) of the Internal Revenue Code and allows eligible employees to contribute up to 15% of their annual compensation, ubject to a maximum dollar amount determined by the Internal Revenue ervice. Employee are generally eligible following the attainment of age 21. For the year ended June 30, 2025, the Company had expenses related to the matching contribution provision of the plan of \$77,276. #### K. LITIGATION: The ompany has certain contingent liabilitie and is a party to variou claim arising in the ordinary cour e of busines . Management is of the opinion that all uch matter are without merit or are of such kind, or involve such amount , that unfavorable dispo ition would not have a material effect on the financial position of the Company. The Company i engaged in various regulatory examinations in the ordinary course of business. From time to time these examinations can result in a finding from a regulatory organization. If such finding were to occur the Company would disclose those findings and any penalties in their financial statements and regulatory tilings. #### L. SEGMENT REPORTING: The Company i engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including commission and advisory fee . The Company has identified its President a the chief operating decision maker(" ODM''), who uses net income to evaluate the results of the business, predominantly in th forecasting proce , to manage the Company. Additionally, the CODM u e excess net capital ( ee note G) which is not a measur of profit and los , to make operational decisions while maintaining capital adequacy such as whether to reinvest profits or pay distributions. The Company' 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 tho e described in the summary of significant accounting policies. #### M. SUBSEQUENT EVENT : Management has evaluated events occurring after the statement of financial condition date through eptember 24 2025, the date in which the financial statements were available to be issued. o material events have been identified which would require di closure under FA B ASC 855-10-50-1. {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) #### *Reporl of Independent Registered Public Accounting Firm* To The Board of Directors and Stockholder Moors & Cabot, Inc. Boston, assachusetts We have reviewed management's statements, included in the accompanying Moors & abot, Inc. Exemption Report in which (I) oors & Cabot Inc. identified the following provi ions of 17 .F.R. § l 5c3-..,(k) under which Moors & Cabot. Inc. claimed an exemption from I 7 .F.R. §240. I 5c3-3(k)(2)(ii) (the "exemption provisions") and (2) Moors & abot, Inc. identified that the non-covered oors & abot, Inc. 's activities or other eligible activities are not required to comply with the requirements of E Rule I 5c3-3 by reason of the EC's guidance set forth in footnote 74 10 SEC Release o. 34-70073 (July 30 20 I 3). The FAQs, as described herein, are essentially an implementation of the footnote 74 requirements. Moor & Cabot Inc. stated that Moors & Cabot, Inc. met the identified exemption provisions throughout the most recent year without exception. Moors & Cabot, 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 ( nited tates) and accordingly, included inquiries and other required procedures to obtain evidence about Moors & Cabot, Inc.'s compliance with the exemption provisions. 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) and footnote 74 of Rule l 5c3-3 under the ecurities Exchange Act of 1934. ## *LMH~* **P.a** LMHS, P .. We have served as Moors & Cabot, lnc.'s auditor since 2006. orwell Massachusetts September 24 2025 ![](_page_14_Picture_10.jpeg) {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) eptember 24, 2025 LMH , P.C. 80 Washington Street Building S orwell, MA 02061 We are providing this letter in connection with your review of Moors & Cabot, lnc.'s assertions, included in the accompan ing 17a-5(d)(4) Exemption Report. Moors & Cabot Inc. identified §240. I 5c3-3(k)(2)(ii) (' exemption provision ') a the provi ion in §240. I 5c3-3(k) under which Moors & Cabot Inc. claimed an exemption: and (2) Moors & Cabot, Inc. met the identified exemption provisions in §240. I 5c3-3(k) throughout the mo t recent fiscal year without exception. For the purpo e of expressing an opinion about whether, based on the results of your review procedures. you are aware of any material modifications that hould be made to the Moors & Cabot, lnc. 's assertions for the Exemption Report to be fairly stated in all material respect . Moors & Cabot, lnc.'s management is responsible for compliance with the exemption provisions and its assertions. We confirm to the best of our knowledge and belief, as of eptember 24, 2025, the following representations made to you during your review. I . We acknowledge our responsibility for compliance with the identified exemption provisions throughout the fiscal year and that the followi ng assertions are the responsibility of management: a. Moors & Cabot. Tnc. did not carry customer accounts of an kind. b. Moors & Cabot. lnc. did not receive customer funds or securities, c. Moor & abot Inc. has not held fund or ecuritie for or owe money or securities to cu tomers· 2. The assertion included in our exemption report are the responsibility of management; 3. We have made available to you all records and other information relevant to our assertions including all communications from regulatory agencies internal auditors others who perform an equivalent function compliance functions, and other auditors concerning possible xceptions to the exemption provisions, received through the date of the auditor's re iew report· and 4. Th re are no known events or other factors that have arisen subsequent to the period addressed in our assertions that might ignificantly affect our compliance with the identified exemption provision . Michael C. Hildreth President & Chief Executive Officer M ich:1d C I lildreth. f>rc,1dc111 *UCl"~I* Exmwuc *O.ffiu.·* O"F. rW[RAI. ,rnn r I•) 11.tll)k.. ltOS Ill", M,\Ss,1,:ttu,r IT, 02 110 TH.hAX (;1--1 1-1-0221, • ml•ildmh@mo~rsrab11u~m **\tOOkS j\,DC .\80r. N~ .. , MnlllEk. ,rnt,1 nNk.A&Slh~** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.