# DIVERSIFIED RESOURCES, LLC X-17A-5 (2026-03-17) — Broker-dealer annual report - Company: DIVERSIFIED RESOURCES, LLC - Form: X-17A-5 - Filed: 2026-03-17 - Period: 2025-12-31 - Accession: 0000898635-26-000001 - CIK: 898635 - File #: 8-45497 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company PA - Auditor location: Maitland, FL - Contact: Kimberly Neely - Phone: 978-270-5055 - Email: kimberlyneely22@gmail.com - Signed by: Karen J. Bacon (Principal) Original filing: https://www.sec.gov/Archives/edgar/data/898635/000089863526000001/2025auditdrpb.pdf --- {0}------------------------------------------------ ### # |--| 8-45497 |









































































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| | | | | DIVERSIFIED RESOURCES, LLC









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70 JEFFERSON BOULEVARD

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| RI | | | 02888 | | |

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| | | | | | KIMBERLY NEELY
| 978-270-5055 | | kimberlyneely22@gmail.com | | | |






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OHAB AND COMPANY, PA

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| | | | | 100 E SYBELIA AVE, SUTIE 130
| MAITLAND | | FL | 32751 | | |






JULY 28, 2004
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| | {1}------------------------------------------------ #### OATH OR AFFIRMATION | I, KAREN J. BACON | the
,swear (or affirm) that, to the best of my knowledge and belief, | | | |-------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--|--| | financial report pertaining to the firm of DIVERSIFIED RESOURCES, LLC | as of | | | | DECEMBER 31 | 2025, 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. | | | | Title:m go PRINCIPAL #### 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. - 미 (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. - 미 (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. - ㅁ (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. - 미 (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. - 미 (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. - 미 (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}------------------------------------------------ ## **DIVERSIFIED RESOURCES, LLC STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2025** {3}------------------------------------------------ ## **DIVERSIFIED RESOURCES, LLC CONTENTS** | Report of Independent Registered Public Accounting Firm
1 | | |--------------------------------------------------------------|-----| | Statement of Financial Condition
2 | | | Notes to Financial Statement | 3-8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) {5}------------------------------------------------ ## **DIVERSIFIED RESOURCES, LLC** STATEMENT OF FINANCIAL CONDITION December 31, 2025 ## **ASSETS** | Cash at bank | \$
185,730 | |----------------------------------------------------------------------|-----------------| | Accounts receivable | 562,568 | | Prepaid expenses | 15,658 | | Furniture and equipment, net of accumulated depreciation of \$29,167 | 64,433 | | Leasehold improvements, net of accumulated depreciation of \$13,917 | 58,695 | | Right of use asset | 308,381 | | Investment in mutual fund (cost basis \$37,450) | 36,632 | | Total Assets | \$
1,232,097 | | LIABILITIES AND MEMBER'S EQUITY | | | Current Liabilities: | | | Accounts payable and accrued expenses | \$
20,205 | | Accrued pension | 44,110 | | Accrued payroll | 3,776 | | Operating lease liability | 308,381 | | Total Liabilities | 376,472 | | Total Liabilities | 376,472 | | Member's Equity | 855,625 | | Total Liabilities and Member's Equity | \$
1,232,097 | See accompanying notes to the financial statement. {6}------------------------------------------------ ## **NOTE 1 – ORGANIZATION** Diversified Resources, LLC ("the Company") was organized in 2001 in the State of Rhode Island. The Company is registered with the Securities and Exchange Commission as a Registered Investment Advisor ("RIA") and also as a Broker and Dealer. The Company earns fees as an RIA for asset management services and investment advice and also earns commissions as a broker from the sale of mutual fund shares and annuity and insurance products. Client funds and investments under management for investment advisory by the Company are held by a third-party custodian, SEI Investments Company or one of its affiliates ("SEI"). SEI offers no-load mutual funds in various asset allocation models. The Company does not hold funds, investments or other customer accounts for its clients. The Karen J. Bacon Revocable Trust – 2023 is the sole owner of the Company. The Company is subject to regulation by the Securities and Exchange Commission. The Company is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. ## **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## *Basis of presentation* The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. ## *Accounting basis* The Company uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues are recognized when fees for services are earned and expenses are recognized when the obligation is incurred. ## *Estimates* The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. ## *Cash and Cash Equivalents* Cash and cash equivalents consist of cash in a checking account held at a bank and a money market fund in a broker account with SEI. {7}------------------------------------------------ ## **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** ### *Furniture and equipment* Furniture and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. #### *Leasehold Improvements* Leasehold improvements are being amortized over the lease term including the five-year extension option through 2034. The extension period is included because Company management believes that it is more likely than not that the extension option will be exercised. ### *Investments* All investment securities are classified as "available for sale." Securities classified as "available for sale" are carried in the financial statements at fair value. Realized gains and losses, determined using the first-in, first-out (FIFO) cost method, or for mutual funds, the average cost basis, are included in net income. Changes in unrealized gains and losses are also included in net income. ### *Fair value measurements* Under generally accepted accounting principles, there is a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect management's assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: - Level 1. Quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. - Level 2. Quoted prices in markets which are not active, quoted prices for assets or liabilities which are not identical to those being valued, inputs other than quoted prices that are observable either directly or indirectly. - Level 3. Inputs that are both unobservable and significant to the valuation. {8}------------------------------------------------ ## **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** ## *Revenue recognition* ## Commissions The Company earns commissions from sales of several types of investments, including shares of mutual funds and other securities. Commissions related expenses are recorded on the trade date and paid within several days of the trade. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument and purchaser are identified, the pricing is agreed upon and the risks of ownership have been transferred to the purchaser. Annuities and various insurance products are recognized when accepted by the insurance company and the policy becomes effective. The Company also earns fees paid by mutual funds over the period of time that the Company's customers continue to hold investments in the mutual funds. The services performed for such commissions are considered to be performed over time as the Company advises its customers to continue holding investments in the mutual funds. ## Investment advisory fees The Company provides investment advisory services for many of its customers on a continuing basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. The fees are calculated and charged to the client accounts by the custodian of the client accounts at the end of each quarter. The Company recognizes the revenue as earned over time and accrued at period end. The fees are typically remitted by the custodian to the Company several days after the end of the quarter. ## *Income taxes* The Company is treated as a disregarded entity for federal and state income tax purposes. Taxable income of the Company is passed through to the grantor of the Company's sole member and is reported on her individual tax return. Accordingly, no federal or state income tax expense has been recorded in the Company's financial statements. ## *Leases* At the inception in 2024 of a long-term lease for its office premises the Company recorded a liability for the present value of all future lease payments required under the lease, using the Company's estimated incremental borrowing rate. An ROU asset was recorded for the right to use the premises during the lease term. The liability accretes each reporting period. Monthly lease payments are applied to reduce the liability. The single lease cost is inclusive of the interest accretion and ROU amortization, recognized generally on a straight-line basis. {9}------------------------------------------------ ## **NOTE 3 – RELATED PARTY TRANSACTIONS** The Company leases its office premises from Karen J. Bacon and Brad Bacon. Karen J. Bacon is the President of the Company and the Trustee of the Karen J. Bacon Revocable Trust – 2023 which is the sole owner of the Company's member interest. See Note 4 for a description of the lease terms. For the year ended December 31, 2025 a consulting fee in the amount of \$25,000 was paid to a relative of Karen J. Bacon, for management services. ## **NOTE 4– NEW LEASE** The Company entered into a five-year lease which includes a renewal option for additional (5) five years with a related party, as described in Note 3, which commenced on February 1, 2024. The lease provides for fixed payments of \$4,000 per month. The Company also pays condominium fees and real estate taxes associated with the premises. The Company has an option to renew for an additional five-year term at a rate to be negotiated at the time of renewal. Generally accepted accounting principles require a lessee under a long-term operating lease to record an operating lease liability equal to the present value of the future fixed payments required under the lease. The Company recorded a lease liability at inception of the lease, using its estimated incremental borrowing rate of 6.0% per annum to calculate the present value. The lease liability is increased each year by accrued interest, and decreased by the monthly fixed lease payments. The balance of the lease liability for future lease payments was \$308,381 at December 31, 2025. Because the lease provides for the same monthly fixed lease payment over the lease term, the lease cost is equal to the amount of the payments, and each year the right-of-use asset is reduced by the same amount as the reduction in the lease liability. Lease costs for 2025 are summarized as follows: | Included in occupancy expense: | | |--------------------------------------------------------|-----------| | Fixed rent –
January
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December | \$ 48,000 | | Variable costs –
condominium fees | | | January
–
December | 18,000 | | | | | | 66,000 | | | | | Included in local taxes expense –
real estate taxes | 8,033 | | | | | Total lease costs | \$ 74,033 | Occupancy expense on the statement of operations also includes \$10,907 for electricity costs. {10}------------------------------------------------ ## **NOTE 4 – NEW LEASE (CONTINUED)** Minimum lease payments over the next 10 years (includes renewal option) are as follows: | 2026 | ાર | 48,000 | |------------|----|---------| | 2027 | | 48,000 | | 2028 | | 48,000 | | 2029 | | 48,000 | | 2030 | | 48,000 | | Thereafter | | 148,000 | | Total | 15 | 388,000 | ## **NOTE 5– RETIREMENT PLAN** The Company maintains a defined contribution and profit sharing retirement plan under Section 401(k) of the Internal Revenue Code. This plan covers all employees meeting eligibility requirements based on age and length of service and is funded by employee payroll deferrals and Company contributions. The Company makes a safe harbor non-elective contribution of 3% of any eligible employee's annual compensation. The Company may also make a profit-sharing contribution in an amount determined at the discretion of management. The estimated amount of the contributions to be made for the current year is accrued at the end of the year, to be paid in the following year. The retirement plan expense of \$41,113 for 2025 includes \$20,000 profitsharing and \$24,110 for the 3% safe-harbor contribution. ## **NOTE 6– CONCENTRATION OF CREDIT RISK** Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains most of its cash and cash equivalents in a bank checking account, the balance of which, at times, may exceed the \$250,000 limit insured by the Federal Deposit Insurance Corporation. Exposure to credit risk is reduced by placing such deposits in high quality financial institutions. A substantial portion of accounts receivable are investment advisory fees due from SEI, the custodian of investment accounts belonging to the Company's clients. Such fees are charged to the client accounts at the end of each quarter, and are typically remitted by SEI to the Company within several days. ## **NOTE 7– FAIR VALUE MEASUREMENTS** The Company's investment in a mutual fund is carried at fair value, using the published net asset value per share of the fund as of December 31, 2025. The net asset value per share is the price at which the fund offers and redeems its shares. Fair value measurements as of December 31, 2025 are summarized as follows: | | Level 1 | Level 2 | Level 3 | Total | |---------------------------|-----------|---------|---------|-----------| | Investment in Mutual Fund | | | | | | Domestic Fixed Income | \$ 36,632 | \$
- | \$
- | \$ 36,362 | {11}------------------------------------------------ ### **NOTE 8 – NET CAPITAL REQUIREMENT** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires maintaining a minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The Company is required to maintain minimum net capital of \$5,000. At December 31, 2025 the Company had net capital of \$150,948, excess net capital of \$145,948, and its aggregate indebtedness to net capital ratio was 0.45 to 1. ## **NOTE 9 – SEGMENT REPORTING** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including investment advisory services, agency transactions in mutual funds, variable annuities, and insurance products. The Company has identified its president as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, and to manage the Company. Additionally, the CODM uses excess net capital (see Note 8), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's 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 those described in the summary of significant accounting policies. The Company derives revenue primarily from North America. ### **NOTE 10 – SUBSEQUENT EVENTS** Management has evaluated subsequent events through March 12, 2026, the date the financial statements were available to be issued, and has determined that there are no subsequent events which occurred that require recognition or additional disclosure in these financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.