# KA ASSOCIATES, LLC X-17A-5 (2025-10-01) — Broker-dealer annual report - Company: KA ASSOCIATES, LLC - Form: X-17A-5 - Filed: 2025-10-01 - Period: 2025-06-30 - Accession: 0000900895-25-000002 - CIK: 900895 - File #: 8-45640 - Type: Broker-dealer - Material weakness: No - Auditor: CBIZ CPAs P.C - Auditor location: Deerfield, IL - Contact: Michael O'Neil - Phone: 3102827905 - Email: pstapleton@kaynecapital.com - Website: kaynecapital.com - Signed by: Paul Stapleton (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/900895/000090089525000002/kaassociates2025.06.30.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: EŽǀ͘ϯϬ͕ϮϬϮϲ Estimated average burden hours per response: > SEC FILE NUMBER 8-45640 # **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 | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------|---------------------------------------| | | 07/01/24
FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | | 06/30/25 | | | | MM/DD/YY | | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | KA
Associates,
NAME OF FIRM: _______________________________________________________________________ | LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes):
܆
܆
Broker-dealer
■
܆ Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | ܆ | | Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 2121
Avenue
of
the
Stars,
_____________________________________________________________________________________ | 9th
Floor | | | | | | | (No. and Street) | | | | Los
Angeles
_____________________________________________________________________________________ | | CA | | 90067 | | (City) | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Paul
Stapleton | 310.284.5520
_____________________________________________________________________________________ | | pstapleton@kaynecapital.com | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
CBIZ
CPAs
P.C | | | | | | _____________________________________________________________________________________ | | (Name – if individual, state last, first, and middle name) | | | | 9
Parkway
North
Suite
_____________________________________________________________________________________ | 200 | Deerfield | IL | 60015 | (Address) (City) (State) (Zip Code) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) **FOR OFFICIAL USE ONLY** 10/22/2003 199 \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.** {1}------------------------------------------------ | Paul Stapleton | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------|------------------------------------------------------------------------------------------| | financial report pertaining to the firm of KA Associates, LLC | as of | | 6/20 | a 025 - is two and correct. I further cwoar (or affirm) that noither the commany nor any | | Signature: | | |------------|--| | Title: | | | CFO | | - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ | LISA DORFHAN | |-------------------------------| | Notary Public - California | | Los Angeles County | | Commission # 2488440 | | My Comm. Expires May 25, 2028 | {3}------------------------------------------------ # **KA Associates, LLC** **Report Pursuant to Rule 17a-5 Financial Statements and Supplemental Information** **June 30, 2025** CONFIDENTIAL**ntal Info tal** {4}------------------------------------------------ | Page(s) | |---------| |---------| | Report of Independent Registered Public Accounting Firm 1-2 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Financial Statements | | Statement of Financial Condition 3 | | Statement of Operations 4 | | Statement of Changes in Members' Capital 5 | | Statement of Cash Flows 6 | | L
Notes to Financial Statements
7–11

| | A
Supplemental Information | | TI
Schedule I: Computation of Net Capital Under Rule 15c3-1 of the
the
Securities and Exchange Commission 12

| | N
Schedule II: Computation for Determination of Reserve Requirements Under Rule 15c3-3 of the
erve Requirem
Securities and Exchange Commission 13

| | E
D
Schedule III: Information Relating to Possession and Control Requirements Under Rule 15c3-3 of the
on
Contro
Securities and Exchange Commission 14

| | I
Report of Independent Registered Public Accounting Firm 15
ic
F | | F
N
Exemption Report 16


O
C | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) CBIZ CPAs P.C. Nine Parkway North Suite 200 Deerfield, IL 60015 P: 847.282.6300 ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Members of KA Associates, LLC ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of KA Associates, LLC (the "Company") as of June 30, 2025, the related statements of operations, changes in members' capital, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ONFIDENTIALAssociates, TIA mber capital ncial statemen NTI osition NT hen c #### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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. IDE Comp FID ts ou ht (Uni NFI dance w NF 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. hange Comm ON rdance with CO n reasonable e fr o ontrol C 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. 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. {6}------------------------------------------------ ### **Supplemental Information** The information presented in Schedules I, II, and III (the "supplemental information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2016**.** Deerfield, IL September 1, 2025 CONFIDENTIAL {7}------------------------------------------------ # **KA Associates, LLC Statement of Financial Condition June 30, 2025** | Assets | | | |-------------------------------------------------|----------|-----------| | Cash and cash equivalents | \$ | 820,067 | | Investment in securities, at fair value | | 142,909 | | Receivable from broker-dealer and clearing firm | | 5,778 | | Prepaid expenses and other assets | | 11,176 | | Restricted cash - clearing deposit at broker | | 75,000 | | Total Assets | \$ | 1,054,930 | | Liabilities and Members' Capital
Liabilities | | | | Due to related party, net | \$ | 24,350 | | Payable to broker-dealer and clearing firm | | 1,515 | | Accrued expenses and other liabilities | | 6,354 | | Total Liabilities | | 32,219 | | | A
A | L
L | | Members' Capital | | 1,022,711 | | Total Liabilities and Members' Capital | \$
\$ | 1,054,930 | | TI
N
E | | | | D
I
F | | | | N
O
C | | | {8}------------------------------------------------ | Revenues | | | |--------------------------------------------------|--------|----------| | Dividends income | \$ | 47,957 | | Money market waiver rebates and interest sharing | | 48,854 | | Commissions | | 24,364 | | Net unrealized gain on investments | | 26,852 | | Other | | 11,822 | | Total Revenues | | 159,849 | | Expenses | | | | Professional and consulting fees | | 142,105 | | Compliance fees | | 38,797 | | Custody and clearing charges | | 18,851 | | Regulatory fees | | 18,060 | | State and local income taxes | | 5,591 | | Other | L
L | 18,382 | | Total Expenses | | 241,786 | | A
A | | | | TI | | | | Net Loss | \$ | (81,937) | | | | | | N
E | | | | | | | | D | | | | | | | | I | | | | F | | | | N | | | | | | | | O | | | | | | | | | | | | C | | | | | | | {9}------------------------------------------------ # **KA Associates, LLC Statement of Changes in Members' Capital Year Ended June 30, 2025** | Member's Capital at July 1, 2024 | \$ 1,104,648 | |-----------------------------------|--------------| | Net Loss | (81,937) | | Member's Capital at June 30, 2025 | \$ 1,022,711 | CONFIDENTIAL {10}------------------------------------------------ | Cash flows from operating activities
Net loss
Adjustments to reconcile net loss to net cash used in | \$ | (81,937) | |------------------------------------------------------------------------------------------------------------|----------------|---------------------------| | operating activities
Net unrealized gain on investments
Changes in operating assets and liabilities: | | (26,852) | | Receivable from broker-dealer and clearing firm | | 2,934 | | Dividends receivable | | 2,472 | | Prepaid expenses and other assets | | (40) | | Due to related party, net | | (4,395) | | Payable to broker-dealer and clearing firm | | (126) | | Accrued expenses and other liabilities | | (318) | | Net cash used in operating activities | | L
L
(108,262)
08 | | | | | | Net change in cash, cash equivalents, and restricted cash | | (108,262) | | Cash, cash equivalents, and restricted cash, beginning of year | | A
A
1,003,329
,0 | | Cash, cash equivalents, and restricted cash, end of year | TI
TI
\$ | 895,067 | | N
N
E
D
I
F
N
O
C | | | {11}------------------------------------------------ ### **1. Nature of Operations and Summary of Significant Accounting Policies** #### **Nature of Operations** KA Associates, Inc. was a corporation organized under the laws of the state of Nevada on January 25, 1993, which converted into a Nevada limited liability company known as KA Associates, LLC (the "Company") on May 10, 2024. The Company is a registered broker-dealer under the Securities Exchange Act of 1934. The Company operates under a membership agreement with the Financial Industry Regulatory Authority ("FINRA") and is a member of the Securities Investor Protection Corporation ("SIPC"). The Company is an introducing broker dealer and clears its securities transactions on a fully disclosed basis with a clearing broker. The Company does not carry security accounts for customers or perform custodial functions related to customer securities. #### **Basis of Presentation** The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### **Cash, Cash Equivalents, and Restricted Cash** The Company maintains its cash balance with National Financial Services LLC ("NFS"), a brokerdealer and clearing firm. This balance is insured by the Securities Investor Protection Corporation ("SIPC") up to \$250,000. At times, cash balances may be in excess of SIPC Insurance limits. inancial Servic nancial Se e Inv In exc ay e The Company is required to maintain a clearing deposit account pursuant to its securities clearance agreement with NFS. The required deposit is subject to increase based on changes in the mix of securities transactions executed by the Company's customers. At June 30, 2025, the cash deposit required was \$75,000. CONFIDENTIALrmity wit rm g accou acco in s ompany's cust cus The Company considers liquid investments with original maturities of three months or less to be cash equivalents. As of June 30, 2025, the Company's cash equivalents consisted of a money market fund in the amount of \$820,067. estments o 025, Comp The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Statement of Financial Condition to the total of the same such amounts shown in the Statement of Cash Flows. 0,067.ovides reconc vides recon nt Financi sh CO | Cash, cash equivalents, and restricted cash
sh equiv | | |--------------------------------------------------------------|-----------------| | Cash and cash equivalents
d
e | \$
820,067 | | Clearing deposit at broker (restricted) | 75,000 | | Cash, cash equivalents, and restricted cash at June 30, 2025 | 895,067 | | Cash, cash equivalents, and restricted cash at June 30, 2024 | 1,003,329 | | Net change in cash, cash equivalents, and restricted cash | \$
(108,262) | ### **Receivable from Broker-Dealer and Clearing Firm** Receivable from broker-dealer and clearing firm represents commissions and other fees earned by the Company from transactions not yet received from the clearing broker.No allowance was deemed necessary as of June 30, 2025, since the Company has determined all receivables from brokerdealer and clearing firm to be collectible. ### **Income Taxes** The Company is a limited liability company ("LLC") elected to be taxed as a partnership effective May 10, 2024, therefore taxable income is reported by the Company's LLC members. However, the {12}------------------------------------------------ Company is subject to the California minimum tax of \$800, when the Company makes more than \$250,000, the Company will be subject to California LLC fee, which starts at \$900 with a maximum of \$11,790. The Company has evaluated its tax positions and determined that there are no uncertain tax positions as of June 30, 2025. As of June 30, 2025, the Company remains subject to examination by various tax jurisdictions for fiscal years ending after June 30, 2021. There are currently no examinations being conducted of the Company by the Internal Revenue Service or any other taxing authority. ### **Revenue Recognition** The Company follows a five-step model to (a) identify the contract(s) with customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligation in the contract, and (e) recognize revenue when (or as) the entity satisfies the performance obligation. #### **Use of Estimates** The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ccounting princ counting ake a estimate sure conting mounts reve ounts re m estim #### **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, primarily consisting of principal transactions and revenue from underwriting. The Company has identified its President 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 5), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or distribute. 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. Significant segment expenses regularly provided to the CODM are found on the Company's statement of operations. Segment assets can be found in the statement of financial condition. 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. CONFIDENTIALrec ne busines busine es, primarily co as s i e t e Company sure a ure p to erating segme e act a es pr regularly egment gment assets t o measu gnifican #### **Reclassifications** Certain opening balance amounts in the financial statements have been reclassified to conform to the current year's presentation. These reclassifications did not affect total assets, total liabilities, or equity. ### **2. Revenue from Contracts with Customers** ### **Money Market Waiver Rebates and Interest Sharing** Money market waiver rebates and Interest sharing revenue is income earned from revenue participation and interest programs with NFS. Revenue is recorded on the monthly basis as it is determinable in accordance with terms specified in the Company's agreement for securities clearance services. {13}------------------------------------------------ ### **Dividends Income** Dividends are earned from investments (see Note 3) and are recorded on the ex-dividend date. #### **Commissions** Commissions include revenues resulting from executing stock exchange-listed securities, over-thecounter securities, and other transactions. The Company is the principal for commission revenue as it is responsible for the execution of the clients' purchase and sales. Commissions and related clearing charges on customers' introduced trades and accounts are recorded on a trade-date basis as security transactions occur. ### **Disaggregation of Revenue** The following table presents commission revenue from contracts with customers by major source: | Commissions | | |----------------------------|-------------------| | Closed-End MFs (IPO) | L
\$
11,866 | | OTC Equities | 10,345
345 | | Master Limited Partnership | 976
76 | | Others | A
A
1,177 | | | TI
TI | | | N | | | | #### **3. Fair Value Measurements** 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. action between In determining fair value, the Company uses various valuation approaches. A fair value hierarchy for inputs is 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 are to 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: **Total Commissions** \$ 24,364 CONFIDENTIAL ld d received pany vario vari r ma uts requiring requirin uts t thos et obtaine mpany's assum as y ba categorized categorize 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 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. ations base tions bas e Comp e v 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. At June 30, 2025, the Company holds an investment in a security, which is recorded at fair value with changes in fair value included in net unrealized gain on investments on the accompanying Statement of Operations. The investment is classified as a Level 1 common stock asset and had a fair market value of \$142,909 at June 30, 2025. {14}------------------------------------------------ ### **4. Off Balance Sheet Risk, Concentration Risk, and Regulatory Risk** The Company's customers' securities transactions are introduced on a fully disclosed basis to its clearing broker. The clearing broker carries all the Company's customers' money balances and long and short security positions and is responsible for collection and payment of funds and receipt and delivery of securities relative to customer transactions. These transactions may expose the Company to off-balance-sheet risk, wherein, pursuant to the clearance agreement between the Company and its clearing broker, the clearing broker may charge the Company for any losses it incurs in the event that customers may be unable to fulfill their contractual commitments and margin requirements are not sufficient to fully cover losses. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing broker, the Company believes there is no maximum amount assignable to this right. The Company has the right to pursue collection or performance from the counterparties who do not perform under their contractual obligations. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers and ensure that customer transactions are executed properly by the clearing broker which is subject to the credit risk of the clearing broker. Additionally, in accordance with industry practice and regulatory requirements, the Company and the clearing broker monitor collateral on the customers' accounts. The Company maintains its cash balance with its clearing broker. The Company is subject to the counterparty risk to the extent that its clearing broker is unable to fulfill contractual obligations on its behalf. The Company's management monitors the financial condition of its clearing broker and does not anticipate any losses from this counterparty. CONFIDENTIALcon o monito m ed b tionally, acco onally, learing broker h with w ent clea s management fro ny The Company is required to be compliant with FINRA and Securities and Exchange Commission ("SEC") requirements on an ongoing basis and is subject to multiple operating and reporting requirements to which all broker-dealer entities are subject. If the Company fails to comply with regulatory requirements, it could be subject to loss of its licenses and registration and/or economic penalties. and an asis su s er entities loss lo ### **5. Net Capital Requirement** The Company, as a registered broker-dealer, is subject to the SEC Uniform Net Capital Rule 15c3- 1. This rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, not to exceed 15 to 1, and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At June 30, 2025, the Company's net capital was \$953,780 which was \$948,780 in excess of its minimum requirement of \$5,000 and the Company's percentage of aggregate indebtedness to net capital was 3.38%. gistered broke es mainten s maint bot b dividend r dividen ompany's net mpany's \$5,000 a The Company is also required, pursuant to its securities clearance agreement with NFS, to maintain net capital in an amount which is the greater of the Company's net capital requirement as calculated in accordance with Uniform Net Capital Rule 15c3-1 or an amount determined in the sole discretion of NFS, within its reasonable business judgment. At June 30, 2025, the minimum net capital required by NFS was \$150,000 and the Company's net capital in excess of its requirement with NFS was \$803,780. ### **6. Related-Party Transactions** The Company is charged an allocation of expenses related to personnel, office facilities and equipment, and other general operating services that are borne by KACALP, an affiliate of the Company by virtue of common control. For the year ended June 30, 2025, expenses allocated from {15}------------------------------------------------ this related party totaled \$69,000. Professional and consulting fees include \$52,900 of allocated personnel expenses. Compliance fees include \$12,200 of allocated personnel expenses. Other expenses include \$3,900 of allocated office facilities and other general operating services. For the year ended June 30, 2025, approximately 43% of the Company's commission revenues were from introducing trades of the Company's shareholders and KACALP employees. The Company holds shares in a closed-end fund that is managed by an affiliate of KACALP. The fair value of the investment was \$142,909 as of June 30, 2025. For the year ended June 30, 2025, the Company earned \$9,887 of dividend income and recognized net unrealized gain on investment of \$26,852 from the investment. KACALP reimburses the Company for private placement fees and incurs various operating, legal, professional, and other expenditures on behalf of the Company. The clearing broker charges the Company fees for recording customers' initial investment in KACALP private limited partnerships. Fees are also charged on all subsequent contributions and withdrawals. The amount of reimbursement was \$4,050 for the year ended June 30, 2025. These revenues are recorded upon execution of private placement transactions and offset by a corresponding expense so there is no net impact to earnings. The Company has a receivable of \$300 for private placement fees from KACALP as of June 30, 2025, which is included in Due to related party, net. included in Due to related party, net. CONFIDENTIALurs e cleari ALP P withdrawa d 5. reven reve y correspond correspo ble \$ le \$300for n relate rela At times, KACALP pays expenses on behalf of the Company, which are later reimbursed. For the year ended June 30, 2025, KACALP made payments totaling approximately \$138,000. As of yearend, the Company has a payable of \$24,650 for expenses to be reimbursed to KACALP, which is f Company Compan total tot 650 expens expen {16}------------------------------------------------ **Supplemental Information** CONFIDENTIAL **Informatio Informat** {17}------------------------------------------------ # **KA Associates, LLC Schedule I: Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission** ### **June 30, 2025** | Members' capital | \$
1,022,711 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------| | Less: Nonallowable assets:
Prepaid expenses and other assets | 11,176 | | Total deductions | 11,176 | | Less: Haircuts on securities (computed, pursuant to 15c3-1(f)):
15% haircut for equities
2% haircut for money market sweep account
Undue concentration | 21,436
16,383
19,936 | | Total haircuts on securities | 57,755 | | Net capital | \$
953,780 | | L
Aggregate indebtedness | \$
32,219 | | A
Computed minimum net capital required
(6.67% of aggregate indebtedness) | \$
2,148 | | TI
Minimum net capital required (under SEC Rule 15c3-1) | \$
5,000 | | Excess net capital (\$953,780 - \$5,000) | \$
948,780 | | N
N
Percentage of aggregate indebtedness to net capital | 3.38% | | E
E
D
There are no material differences between the computation of net capital presented above and the
he computatio
computation of net capital in the Company's unaudited Form X-17A-5, Part II-A as of June 30, 2025.
s
F
I
F
N
O
C | | {18}------------------------------------------------ # **KA Associates, LLC Schedule II: Computation for Determination of Reserve Requirements under Rule 15c3-3 June 30, 2025** The Computation for Determination of Reserve requirement is not required as the Company is exempt from Rule 15c3-3 under the provision of Rule 15c3-3(k)(2)(ii)and those contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. 240.17a-5. CONFIDENTIAL {19}------------------------------------------------ # **KA Associates, LLC Schedule III: Information Relating to Possession and Control Requirements Under Rule 15c3-3 June 30, 2025** The Information of Relation to Possession and Control Requirements under Rule 15c3-3 is not required as the Company is exempt from Rule 15c3-3 under the provision of Rule 15c3-3(k)(2)(ii) and those contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. 240.17a-5. CONFIDENTIAL {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) CBIZ CPAs P.C. Nine Parkway North Suite 200 Deerfield, IL 60015 P: 847.282.6300 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Members of KA Associates, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) KA Associates, LLC **(**the "Company") identified the following provision of 17 C.F.R. §240.15c3-3(k) under which the Company claimed the following exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) (the "exemption provision"), and (2) KA Associates, LLC stated that the &ompany met the identified exemption provision throughout the most recent fiscal year without exception. KA Associates, LLC's management is responsible for compliance with the exemption provision and its statements. eomp exception. K n statem nd The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 are limited to money market waiver rebate and interest sharing, private placements, and administrative fees. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. CONFIDENTIAL§24 mpany's other b other endments 17 lacements, acement and ow transm tra mptly transmitt tly ayable is t ac PAB KA Associates, LLC's management is responsible for compliance with the provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 and related SEC Staff Frequently Asked Questions and its statements. fo esponsi 3 am a statements ts Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about KA Associates, LLC's compliance with the exemption provisions. A 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. accordanc ordingly, inclu rdingly, pliance with liance w of whi 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) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5, and related SEC Staff Frequently Asked Questions. Deerfield, IL September 1, 2025 *CBIZ.COM* {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) Exemption Report -dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a- certain brokers -5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provision of 17 C.F.R. § 240.15c3-3(k): (2)(ii). - (2) The Company met the identified exemption provision in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year without exception. 7 240 - (3) activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to money market waiver rebates and interest sharing, private placements, and administrative fees, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. CONFIDENTIAL3 th und NT N ReleaseTmon m strative a ative owe se ived prom ved /or receiv recei s subscrip Compa o Co ccounts de d - I, Paul Stapleton, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. on.bes t, b Paul Stapleton, CFO KA Associates, Inc. 9/15/2025 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.