# SEARLE & CO. X-17A-5 (2025-11-25) — Broker-dealer annual report - Company: SEARLE & CO. - Form: X-17A-5 - Filed: 2025-11-25 - Period: 2025-09-30 - Accession: 0000710127-25-000008 - CIK: 710127 - File #: 8-28600 - Type: Broker-dealer - Material weakness: No - Auditor: DCPA - Auditor location: Century City, CA - Contact: Robert Searle - Phone: (203) 869-4800 - Email: rsearle@searleco.com - Website: searleco.com - Signed by: Robert Searle (President) Original filing: https://www.sec.gov/Archives/edgar/data/710127/000071012725000008/searlefinalaudit.pdf --- {0}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III | SEC FILE NUMBER | |-----------------| | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------|----------------------|------------|--|--|--| | FILING FOR THE PERIOD BEGINNING | 10/01/24
AND ENDING
MM/DD/YY | | | 09/30/25 | | | | | | | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | NAME OF FIRM: Searle & Co., Inc. | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
ച Security-based swap dealer
‍ Major security-based swap participant
L Broker-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.) | | | | | | | | | 333 Greenwich Avenue | | | | | | | | | | (No. and Street) | | | | | | | | Greenwich, | CT | | | 06830 | | | | | (City) | (State) | | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | Robert Searle | (203) 869-4800 | | rsearle@searleco.com | | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | | | B. Accountant Identification | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
DCPA | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | 2121 AVENUE OF THE STARS #800 CENTURY CITY, | | | CA | 90067 | | | | | (Address)
SEPTEMBER 15, 2020 | (City) | 6567 | (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 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. {1}------------------------------------------------ #### OATH OR AFFIRMATION | Robert Searle | swear (or affirm) that, to the best of my knowledge and belief, the | |------------------------------------------------------------------------|---------------------------------------------------------------------| | financial report pertaining to the firm of Searle & Co., Inc.
A 100 | | 9/30 , 2 025 partner, officer, director, or equivalent person, as the case may proprietary interest in any account classified solely as that of a customer. | Signature: | | | | |------------|--|--|--| | Title: | | | | | President | | | | 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 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. - □ (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 capible net worth under 17 CFR 240.15c3-1, 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 240.18a-7, as applicable. - | - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | - □ (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. - | 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)(2), as applicable. {2}------------------------------------------------ Searle & Co., Inc. Statement of Financial Condition and Report of Registered Public Accounting Firm As of and For The Year Ended September 30, 2025 This report is pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as a Public Document. {3}------------------------------------------------ ## Searle & Co., Inc. #### Table of Contents As of and For The Year Ended September 30, 2025 | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|--------| | Statement of Financial Condition | | | Notes to Financial Statements | 3 - 10 | {4}------------------------------------------------ #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DCPA To the Board of Directors and the Stockholder of Searle & Co., Inc.: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Searle & Co., Inc. (the "Company") as of September 30, 2025, 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 the Company as of September 30, 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 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 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. DCPA DCPA We have served as the Company's auditor since 2022. Century City, California November 21, 2025 {5}------------------------------------------------ # Searle & Co., Inc. Statement of Financial Condition September 30, 2025 #### Assets | Cash | S | 706,605 | |-------------------------------------------------------|---|------------| | Marketable securities, at fair value | | 7,691,390 | | Receivable from clearing broker | | 1,834,302 | | Deposit with clearing broker | | 125,000 | | Accounts receivable | | 17,270 | | Prepaid expenses | | 756 | | Deposits and other assets | | ર્ભ રેત્તર | | Total assets | S | 10,376,018 | | Liabilities and Stockholder's Equity | | | | Liabilities | | | | Accounts payable and accrued expenses | S | 7,035 | | Commissions payable | | 519,971 | | Payable to clearing broker | | 12,900 | | Total liabilities | | 539,906 | | Commitments and contingencies | | | | Stockholder's equity | | | | Common stock, \$1 par value, 2,500 shares authorized, | | | | 900 shares issued and outstanding | | 900 | | Retained earnings | | 9,835,212 | | Total stockholder's equity | | 9,836,112 | | Total liabilities and stockholder's equity | S | 10,376,018 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ #### -- - -- --- # - # )\*+\*,-. ! 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The Company recognized \$91,515 of rent expense for the year ended September 30, 2025. With the consent of its shareholder, the Company has elected to be treated as an S Corporation under Subchapter S of the Internal Revenue Code. Subchapter S of the Code provides that in lieu of corporate income taxes, the shareholder is individually taxed on the Company's taxable income; therefore, no provision or liability for Federal Income Taxes is included in this financial statement. ### Note 2: RECEIVABLE FROM CLEARING BROKER The Company has a brokerage agreement with Pershing LLC ("Clearing Broker") to carry its account and the accounts of its clients as customers of the Clearing Broker. Pursuant to the clearing agreement, the Company introduces all of its customers' securities transactions to its Clearing Broker on a fully disclosed basis. Customers' money balances and security positions are carried on the books of the Clearing Broker. In accordance with the clearance agreement, the Company has agreed to indemnify the Clearing Broker for losses, if any, which the Clearing Broker may sustain from carrying securities transactions introduced by the Company. In accordance with industry practice and regulatory requirements, the Company and the Clearing Broker monitor collateral on the customers' accounts. As of September 30, 2025, the Company had a receivable from Clearing Broker of \$1,834,305 of which \$523,804 is the Company's cash balance held in the investment account. All amounts due to the Company from the Clearing Broker are pursuant to their clearance agreement. ## Note 3: DEPOSIT WITH CLEARING BROKER The Clearing Broker has custody of the Company's clearing deposit which serve as collateral for any amounts due to the Clearing Broker as well as collateral for securities sold short or securities purchased on margin. The balance at September 30, 2025, was \$125,000. ### Note 4: MARKETABLE SECURITIES, AT FAIR VALUE Marketable securities, at fair value consist of equity securities and municipal securities. As discussed in Note 1, marketable securities held by the Company are classified as trading securities and stated at their fair market value based on quoted market prices. At September 30, 2025, these securities are carried at their fair market value of \$7,691,387. The accounting for the mark-tomarket on proprietary accounts is included in the Statement of Income and the Company recognized a net gain (loss) on trading securities which amounted to a gain of \$649,449 for the year ended September 30, 2025. {9}------------------------------------------------ #### Note 5: PAYABLE TO CLEARING BROKER As discussed in the Receivable from Clearing Broker (Note 2), the Company conducts securities transactions in its proprietary account at the Clearing Broker on margin. Payable to Clearing Broker at September 30, 2025, was \$12,901. #### Note 6: FAIR VALUE MEASUREMENT - ACCOUNTING PRONOUNCEMENT The Company complies with FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. 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 in an active market for identical assets or liabilities; Level 2 - Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model derived prices whose inputs are observable or whose significant value drivers are observable; Level 3 - Assets and liabilities whose significant value drivers are unobservable. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Company in determining 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 in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. {10}------------------------------------------------ #### Note 6: FAIR VALUE MEASUREMENT - ACCOUNTING PRONOUNCEMENT (CONTINUED) Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. The condition could cause a security to be reclassified to a lower level within the fair value hierarchy. The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on the recurring basis as of September 30, 2025: | Assets | Fair Value | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | |-------------------------|------------|-----------|----------------|-----------|----------------|-----------|----------------|--| | Corporate stocks | ಕೊ | 5,370,009 | S | 5,370,009 | S | | S | | | Preferred stocks | | 96,203 | | 96.203 | | | | | | Government & Muni bonds | | 1,357,272 | | | | 1,357,272 | | | | Debt & other securities | | 867,903 | | 867,903 | | | | | | Total Assets | 1 | 7,691,387 | ે. | 6,334,114 | f | 1,357,272 | S | | | Liabilities | Fair Value | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | | | | | | | | | | | | Total Liabilities | | | ಳ | | A | | | | #### Valuation of Securities at Fair Value - Valuation Techniques #### Corporate and Preferred Stocks The Company values securities that are freely tradable and are listed on a national securities exchange at their last sales prices as of the last business day of the year. #### Government and Municipal (Muni) Bonds The fair value of government and municipal bonds is estimated using recently executed transactions, market price quotations (where observable), or bond yield spreads. Government and municipal bonds are generally categorized in Level 2 of the fair value hierarchy. #### Debt and Other Securities The fair value of debt and other securities are estimated using recently executed transactions, market price quotations (where observable), or bond yield spreads. Debt and other securities are generally categorized in Level 1 or Level 2 of the fair value hierarchy. {11}------------------------------------------------ #### Note 7: INCOME TAXES As discussed in Note 1, the Company has elected the S Corporation tax status; therefore, no federal income tax provision is reported. The Company is required to file income tax returns in both federal and state tax jurisdictions and is subject to state and local taxes. The Company's tax returns are subject to examination by taxing authorities in the jurisdiction in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. For federal purposes, the statute of limitations is three years. Accordingly, the Company is no longer subject to examination of federal returns filed more than three years prior to the date of this financial statement. The statute of limitations for state and local purposes is generally three years but may exceed this limitation depending upon the jurisdiction involved. Returns that were filed within the applicable statute remain subject to examination. As of September 30, 2025, the taxing authorities have not proposed any adjustments to the Company's tax position and the Company does not have any uncertain tax positions as of the year then ended. During the year ended September 30, 2025, the Company's amount paid to both the State of Connecticut and Pennsylvania totaled \$170,494, which is shown on the Statement of Income. The Company paid \$167,300 for the Connecticut pass-through entity tax and \$3,194 for the Pennsylvania nonresident withholding which applied to the Company's fiscal year end tax return ending September 30,2024. The Company did not accrue for these taxes during the current year and the difference between the amount paid and the estimated accrual are immaterial to the financial statement as a whole. ### Note 8: CONCENTRATIONS OF CREDIT RISK The Company is engaged in various trading and brokerage activities in which counter-parties primarily include broker-dealers, banks, and other financial institutions. In the event the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counter-party or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counter-party. ### Note 9: PROPERTY AND EQUIPMENT, NET Property and equipment are recorded net of accumulated depreciation. During the year ended September 30, 2025, the Company utilizes property and equipment that have been fully depreciated in the prior years. {12}------------------------------------------------ #### Note 10: RECENTLY ISSUED ACCOUNTING STANDARDS 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") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of the financial statement in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates ("ASUs"). For the year ending September 30, 2025, 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 statement 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 statement. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statement taken as a whole. #### Note 11: COMMITMENTS AND CONTINGENCIES #### Contingencies The Company maintains several bank and investment accounts at financial institutions. These accounts are insured either by the Federal Deposit Insurance Commission ("FDIC"), up to \$250,000, or the Securities Investor Protection ("SIPC"), up to \$500,000. At times during the year ended September 30, 2025, the cash balances held in financial institutions were in excess of the FDIC and SIPC's insured limits. The Company has not experienced any losses in such accounts. Management believes that it has placed its cash on deposit with financial institutions which are financially stable. #### Note 12: SEGMENT REPORTING The Company follows ASC 280, Segment Reporting (including adoption of ASU 2023-07), which requires companies to disclose segment data based on how management makes decisions about allocating resources to segments and evaluating performance. The Company conducts its business activities and reports financial results as a single reportable segment, engaged in a single line of business providing brokerage services. Using the management approach, the qualitative and quantitative criteria established by ASC 280, the Company has determined it has a single reportable segment. The Chief Decision Maker ("CODM") makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results, using net income that is also reported on the Income Statement as net income and excess net capital (Note 14). There are no reconciling items to the income statement. The measurement of segment assets is reported on the balance sheet as total assets. {13}------------------------------------------------ #### Note 12: SEGMENT REPORTING (CONTINUED) The CODM uses net income to evaluate income generated from segment assets (return on assets) and excess net capital in deciding whether to reinvest profits into the brokerage services segment or into other parts of the entity, such as to pay distributions to the stockholder. The Company's CODM is the Chief Executive Officer. All of the Company's customers are based in the United States. #### Note 13: SUBSEQUENT EVENTS The Company has evaluated events and transactions subsequent to the Statement of Financial Condition date for items requiring recording or disclosure in the financial statement. The evaluation was performed through the date the financial statement was available to be issued. Based upon this review, the Company has determined that there were no events or transactions which took place that would have a material impact on its financial statement. #### Note 14: NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which 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. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. Net capital and aggregate indebtedness change day to day, but on September 30, 2025, the Company had net capital of \$8,792,506 which was \$8,692,506 in excess of its required net capital of \$100,000; and the Company's ratio of aggregate indebtedness to net capital was 0.06 to 1. which is less than the 15 to 1 maximum allowed. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.