# HALLIDAY FINANCIAL, LLC X-17A-5 (2025-03-12) — Broker-dealer annual report - Company: HALLIDAY FINANCIAL, LLC - Form: X-17A-5 - Filed: 2025-03-12 - Period: 2024-12-31 - Accession: 0000898928-25-000002 - CIK: 898928 - File #: 8-45529 - Type: Broker-dealer - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Rachel Pino - Phone: 5166711099 - Email: rpino@hallidayfinancial.com - Website: hallidayfinancial.com - Signed by: Rachel Pino (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/898928/000089892825000002/Public1.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 SEC FILE NUMBER ## ANNUAL REPORTS FORM X-17A-5 PART III 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 01/01/2024 | | AND ENDING 12/31/2024 | | | |-----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|-----------------------------------------|-----------------|--------------------------------------------| | | MM/DD/YY | | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Halliday Financial LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
O Check here if respondent is also an OTC derivatives dealer | | [ Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 725 Glen Cove Avenue | | | | | | | (No. and Street) | | | | | Glen Head | | New York | | 11545 | | (City) | (State) | | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Rachel Pino | (516) 671-1099 | | | rpino@hallidayfinancial.com | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filling* | | | | | | Berkower LLC | | | | | | | (Name - if individual, state last, first, and middle name)
lselin | | N.I | 08830 | | 517 Route One South, Suite 4103 | | | | (Zip Code) | | (Address)
09/18/2003 | (City) | 217 | (State) | | | (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)(ll), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond uniess the form displays a currently valid OMB control number. {1}------------------------------------------------ ### OATH OR AFFIRMATION | Rachel Pino | | | , swear (or affirm) that, to the best of my knowledge and belief, the | | |-------------------------------------------------------------------|-------|--|-----------------------------------------------------------------------|-------| | tinancial report pertaining to the firm of Halliday Financial LLC | | | | as or | | 19/21 | 2 024 | | | | 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. MARGARET INNELLI Notary Public, State of Now York No. 011N6368041 Qualified in Nassau County Commission Expires 12/04/20 Notary Public Signature: Title: CFO ## This filing\*\* contains (check all applicable boxes): - @ (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - {c} Notes to consonation view of 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). - O (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. - ロー(i) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1563-3. 17 Computation for determination of customer reserve require - ロ ()) Computation for decemination 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. - ー (r) Computation for Decare or control requirements for customers under 17 CFR 240.15c3-3. - ロ (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. - 240.25CS-5Jp)(2) 01-27 CF C-R 24028d 1/38 Spp.1582130 Seport with computation of net capital or tangibe net (0) Reconclinitions, including appropriate explicable, and the reserve requirements und the reserve requirements under 17 world in under 17 CFR 240.2803 x, 27 Cry Cry Life States exist, or a statement that no material differences exist. - [] {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ー 【p】dumnary of mancial rature for outstand 17 CFR 240.17a-12, or 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. (q) Oath or affirmation in accordance with 17 CFR - = - ー (1) Sompliance Copertin accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | |} !zkinpklent public accountant's report based on an examination of the statement of financial condition. - (t) hidependent public accountant 5 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. - CFR 240.278-3, 17 CN 240.208 7, or 17 or it 2 toll it is a commont in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - CFR 240.17a-5 of 17 CFR 240.1768 application [] (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. - CFR 240.1067; as applicable: [] (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - as applicable. [] (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 fling, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {2}------------------------------------------------ ### HALLIDAY FINANCIAL, LLC FINANCIAL STATEMENT AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2024 {3}------------------------------------------------ ### CONTENTS | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Sole Member of Halliday Financial, LLC ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Halliday Financial, LLC (the "Company") as of December 31, 2024, and the related notes (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, 2024, 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 Statement. 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 Statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2019. Berkower LLC Iselin, New Jersey March 7, 2025 {5}------------------------------------------------ ### STATEMENT OF FINANCIAL CONDITION ### December 31, 2024 ### ASSETS | STATEMENT OF FINANCIAL CONDITION | | |-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------| | | | | December 31, 2024 | | | ASSETS | | | Cash
Due from clearing broker
Fees receivable
Investments in securities, at fair value
Cash surrender value of officers' life insurance | \$
845,533
339,579
237,811
361,020
344,800 | | Total Assets | \$
2,128,743 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities
Commissions payable
Accounts payable and accrued expenses
Total liabilities | \$
129,780
865
130,645 | | Member's Equity | 1,998,098 | | Total Liabilities and Member's Equity | \$
2,128,743 | {6}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### 1. Nature of business ### Nature of Business Halliday Financial, LLC (the "Company") was formed in the state of Delaware in 2013. The Company has offices in the state of New York. The Company is wholly-owned by Halliday Financial Group, Inc. (the "Parent"). The Company provides financial services for the retirement plans of professors in the CUNY school system. In addition, the Company assists individuals and corporations with their various financial needs. The Company also participates as a selling group member in underwriting transactions. The Company is a registered broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). ### 2. Summary of significant accounting policies ### Basis of Presentation and Use of Estimates These financial statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. ### 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 commission fee income, 12B-1 fee income and variable annuity income. The Company has identified its chief financial officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 7), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. 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. ### Contract Assets and Liabilities The Company had no contract assets or liabilities at January 1, 2024 or December 31, 2024. ### Allowance for Credit Losses ASC Topic 326, Financial Instruments – Credit Losses ("ASC 326") impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). {7}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### 2. Summary of significant accounting policies (continued) The allowance for credit losses is based on the Company's expectation of the collectability of its receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company identified commissions receivable and amounts due from clearing broker as potentially impacted by the guidance. The Company's expectation is that the credit risk associated with its commissions receivable and amounts due from clearing broker are not significant and accordingly, the Company has not provided an allowance for credit losses at December 31, 2024. ### Valuation of Investments in Securities at Fair Value - Definition and Hierarchy In accordance with GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. GAAP establishes a fair value 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 the Company'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 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. ### Valuation Techniques The Company values investments in securities and securities sold short that are freely tradable and are listed on a national securities exchange or reported on the NASDAQ national market at their last sales price as of the last business day of the year. As of December 31, 2024, such investments were categorized as Level 1 securities in the fair value hierarchy. {8}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### Lease Obligations: 3. Summary of significant accounting policies (continued) The Company recognizes and measures its leases in accordance with ASC Topic 842, Leases ("ASC 842"). ASC 842 requires an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets ("ROU") and lease liabilities, which required subjective assessment over the determination of the associated discount rates. This discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of the leases are not readily determinable and accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. Company is reasonably certain to exercise. The Company recognizes lease cost associated with its short-term circumstances may require. Interest and penalties assessed, if any, are recorded as income tax expense. The The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases at lease commencement, and do not include an option to purchase the underlying asset that the leases on a straight-line basis over the lease term. ### Income Taxes The Company is a single member limited liability company and is therefore treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code ("IRC") provides that any income or loss is passed through to the ultimate beneficial individual member for federal, and state income taxes. Accordingly, the Company has not provided for federal state and local income taxes. At December 31, 2024, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will be subject to ongoing reevaluation as facts and Parent's federal and state income tax returns are generally open for years after 2021. ### 3. Fair value measurements The Company's assets recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 2. The following table presents information about the Company's assets measured at fair value as of December 31, 2024: | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | Significant Other
Observable
Inputs
(Level 2) | Significant
Unobservable
Inputs
(Level 3) | Balance as of
December 31,
2024 | |-------------------------------------------|----------------------------------------------------------------------------|--------------------------------------------------------|----------------------------------------------------|---------------------------------------| | Assets (at fair value) | | | | | | Investments in securities
Mutual funds | 361,020
\$ | \$
- | \$
- | \$
361,020 | {9}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### 4. Retirement plan The Company has a retirement plan (the "Plan") under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. The Plan provides for voluntary deductions of up to 60% of the employee's salary, subject to Internal Revenue Code limitations. In addition, the Company can elect to make discretionary contributions to the Plan. For the year ended December 31, 2024, the Company elected not to make a contribution. ### 5. Related party transactions An expense sharing agreement is in place between the Company and the Parent. The Parent is the common paymaster of compensation, employee benefits, office and administrative expenses for the Company and its affiliates. The Parent has made reasonable efforts to estimate the Company's utilization of items. Accordingly, the Parent invoices the Company for these shared costs on a monthly basis. All transactions with related parties are settled in the normal course of business. The terms of any of these arrangements, with related parties, may not be the same as those that would otherwise exist or result from agreements and transactions with unrelated parties. ### 6. Commitment The Company leases its office facilities under operating leases commencing on January 1, 2025 and expiring through December 2025. Aggregate future minimum annual rental payments amount to \$95,040 for the year ending December 31, 2025. ### 7. Net capital requirement The Company, as a member of FINRA, is subject to the SEC Uniform Net Capital Rule 15c3-1 (the "Rule"). The Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The Rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2024, the Company's net capital was \$1,933,686, which was \$1,833,686 in excess of its minimum net capital required of \$100,000. ### 8. Exemption from Rule 15c3-3 The management of the Company is responsible for its compliance with the exemption from SEC Rule 15c3-3, under the provisions of paragraph (k)(2)(ii) of that rule. With respect to the Company's business lines not exempt pursuant to the above (primarily mutual fund and variable annuity business), the Company did not hold customers' cash or securities on behalf of customers and, therefore has no obligations under SEC Rule 15c3-3 and accordingly does not claim an exemption under paragraph (k) and relies on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. In addition, as a result of the Company having no obligations under SEC Rule 15c3-3 for the aforementioned business lines, it may file an Exemption Report. {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### 9. Concentrations of Credit Risk The Company maintains cash in one bank account in New York, which, at times, may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. ### 10. Due from Clearing Broker Pursuant to a clearance agreement, the Company introduces all of its securities transactions to a clearing broker on a fully disclosed basis. All of the customers' money balances and long and short security positions are carried on the books of the clearing broker, Pershing LLC. 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. The due from clearing broker on the Statement of Financial Condition includes the clearing deposit of \$25,000. ### 11. Subsequent Events The Company has performed an evaluation of subsequent events through March 7, 2025, the date these financial statements were issued. There were no subsequent events that required disclosures and/or adjustments. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.