# FREEDOM INVESTMENTS, INC. X-17A-5 (2024-02-27) — Broker-dealer annual report
- Company: FREEDOM INVESTMENTS, INC.
- Form: X-17A-5
- Filed: 2024-02-27
- Period: 2023-12-31
- Accession: 0000934682-24-000001
- CIK: 934682
- File #: 8-47883
- Type: Broker-dealer
- Material weakness: No
- Auditor: Deloitte & Touche LLP
- Auditor location: New York, NY
- Contact: Brad Watkins
- Phone: 212-825-4331
- Email: albert.lowenthal@opco.com
- Website: opco.com
- Signed by: Albert G. Lowenthal (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/934682/000093468224000001/FreedomPublic1.pdf
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## FREEDOM INVESTMENTS, INC. {S.E.C. I.D. No. 8-47883)
# STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2023 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
\*\*\*\*\*\*
Filed pursuant to Rule 17a-5(e)(3) under
the Securities Exchange Act of 1934
as a public document
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UNITED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
VlYIO At't"KV VAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response ... 12.00
> SEC FILE NUMBER 8-47883
# **ANNUAL AUDITED REPORT FORM X-17A-5 PART** III
#### **FACING PAGE-PUBLIC**
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
FILING FOR THE PERIOD BEGINNING 01/01/2023 AND ENDING 12/31/2023 MM/OO/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: Freedom Investments, Inc. TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer **D** Security-based swap dealer **D** Major security-based swap participant **D** Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) 375 Raritan Center Parkway (No. and Street) Edison NJ (City) (State) PERSON TO CONTACT WITH REGARD TO THIS REPORT Albert G. Lowenthal 212-668-5782 (Name) (Area Code - Telephone No.) **B. ACCOUNT ANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filling\* Deloitte & Touche LLP 08837 (Zip Code) Albert.Lowenthal@opco.com (Email Address) (Name - if individual, state last, first, middle name) 30 Rockefeller Plaza New York New York 10112 (Address) (City) (State) (Zip Code) 10/20/2003 34 (Date of Registration with PCAOB)(ifapplicable) (PCAOB Registration Number, if applicable) FOR OFFICIAL USE ONLY
\* *Claims for exemptionji·om 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. l 7a-5(e)(l)(ii), if applicable.*
Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid **0MB** control number.
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#### **This report contains:**
| | | Page (s) | |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-----|
| (x) | (a) Statement of Financial Condition. | | :!. |
| (x) | (b) Notes to the Statement ofFinancial Condition. | 2 | S2. |
| ( ) | (c) Statement of income (loss) or, ifthere 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 paiiners' or sole proprietor's equity. | | |
| ( ) | (f) Statement of changes in liabilities subordinated to claims of creditors. | | |
| ( ) | (g) Notes to financial statements. | | |
| ( ) | (h) Computation of net capital under 17 CFR 240. l 5c3-l or 17 CFR 240. l 8a-
l, as applicable. | | |
| ( ) | (i) Computation of tangible net wo1ih under 17 CFR 240. l 8a-2. | | |
| ( ) | G) 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. l 5c3-3 or Exhibit A to 17 CFR 240. l 8a-4, as applicable. | | |
| ( ) | (I) Computation for Determination of PAB Requirements under Exhibit A to § 240. I 5c3-3. | | |
| ( ) | (m) Infonnation relating to possession or control requirements for customers under 17 CFR 240. I 5c3-3. | | |
| ( ) | (n) lnfonnation relating to possession or control requirements for security-based swap customers under 17
CFR 240.15c3-3(p )(2) or 17 CFR 240. l 8a-4, as applicable. | | |
| ( ) | (o) Reconciliations, including appropriate explanations, of the FOCUS Repo1i with computation of net
capital or tangible net wmih under 17 CFR 240. I 5c3- I, 17 CFR 240. I 8a- I, or 17 CFR 240. I 8a-2, as
applicable, and the reserve requirements under 17 CFR 240. l 5c3-3 or 17 CFR 240. I 8a-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 affinnation in accordance with 17 CFR 240. I 7a-5, 17 CFR 240. l 7a-12, or 17 CFR 240. I 8a-7, as
applicable. | | |
| ( ) | (r) Compliance repo1i in accordance with 17 CFR 240. I 7a-5 or 17 CFR 240. I 8a-7, as applicable. | | |
| ( ) | (s) Exemption repo1i 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 repmi based on an examination of the financial repo1i or financial
statements under 17 CFR 240. I 7a-5, 17 CFR 240. I 8a-7, or 17 CFR 240. I 7a-12, as applicable. | | |
| ( ) | (v) Independent public accountant's report based on an examination of certain statements in the compliance
rep01i under 17 CFR 240. I 7a-5 or 17 CFR 240. l 8a-7, as applicable. | | |
| ( ) | (w) Independent public accountant's report based on a review of the exemption repmi under 17 CFR
240.17a-5 or 17 CFR240.18a-7, as applicable. | | |
| ( ) | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240. l 5c3- le or 17
CFR 240. I 7a-12, 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. l 7a-12(k). | | |
| ( ) | (z) Other: | | |
| | **To request confidential treatment of certain portions of this.filing, see I 7 CFR 240. I 7 a-5(e)(3) or I 7 CFR
240.18a-7(d)(2), as applicable. | | |
| | | | |
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# **Deloitte.**
**Deloitte & Touche LLP** 30 Rockefeller Plaza New York, NY 10112-0015 USA
Tel: +1212436 2000 Fax: +1 212 653 5000 www.deloitte.com
# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Directors and Equity Owner of Freedom Investments, Inc.
## **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of Freedom Investments, Inc. (the "Company") as of December 31, 2023, 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, 2023, in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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 of the financial statement provides a reasonable basis for our opinion.
Februmy 27, 2024
We have served as the Company's auditor since 2013.
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# **Freedom Investments, Inc. Statement of Financial Condition December 31, 2023**
| Assets | | | | |
|------------------------------------------------------------------|----|-----------|--|--|
| Cash | \$ | 1,111,804 | | |
| Due from parent, clearing broker | | 3,033,888 | | |
| Income tax receivable | | 4,913 | | |
| Other assets | | 20,973 | | |
| Total assets | | 4,171,578 | | |
| Liabilities and Stockholder's Equity | | | | |
| Due to parent | | 43,947 | | |
| Accrued expenses & other liabilities | | 11,195 | | |
| Total liabilities | | 55,142 | | |
| | | | | |
| Stockholder's Equity | | | | |
| Common stock, \$1 par value, 1,000 shares authorized, issued and | | | | |
| outstanding | | 1,000 | | |
| Additional paid-in capital | | 4,716,394 | | |
| Cumulative deficit | | (600,958) | | |
| Total stockholder's equity | | 4,116,436 | | |
| Total liabilities and stockholder's equity | \$ | 4,171,578 | | |
The accompanying notes are an integral part of the Statement of Financial Condition.
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### **1. Organization**
Freedom Investments, Inc. (the "Company"), a Delaware Corporation, was organized in November 1994 and is a registered broker-dealer under the Securities Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company provides online investing as well as discount brokerage services to individual investors throughout the United States.
The Company is a wholly-owned subsidiary of Oppenheimer & Co. Inc. (the "Parent") whose ultimate parent is Oppenheimer Holdings Inc., a Delaware public corporation. The Company has a clearing agreement with the Parent to clear its security transactions on a fully disclosed basis.
## **2. Significant Accounting Policies**
The Statement of Financial Condition has been prepared in conformity with accounting principles generally accepted in the United States of America. The preparation of the Statement of Financial Condition in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the repo1ted amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Statement of Financial Condition. Actual results could differ from those estimates.
## *Cash and Cash Equivalents*
The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business.
#### *Income Taxes*
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Statement of Financial Condition. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the statement of financial condition and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a detennination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and the results ofrecent operations.
Unce1tain tax positions are recorded on the basis of a two-step process whereby (I) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold the Company recognizes the largest amount of the tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
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#### **3. Net Capital Requirement**
As a registered broker-dealer, the Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule I 5c3-I, which requires that net capital, as defined, shall be the greater of \$100,000, or of 6-2/3% of aggregate indebtedness, as defined. At December 31, 2023, the Company had net capital of \$4,090,224 which exceeded minimum capital requirements by \$3,990,224.
#### **4. Income Taxes**
As of December 3 I, 2023, the Company has no deferred tax assets or liability.
The Company is subject to taxation in the U.S. and various state and local jurisdictions. As of December 31, 2023, generally, the Company's tax years 2018 and forward are subject to examination by the taxing authorities. Where tax returns have not been filed, the statute of limitations remains open indefinitely.
As of December 31, 2023, the Company has no unrecognized tax benefits. The Company's management does not expect the total amount of unrecognized tax benefits will materially change over the next twelve months.
#### **5. Related Party Transactions**
The Company has a clearing agreement with the Parent to clear its security transactions on a fully disclosed basis. In the event a fully disclosed customer is unable to fulfill its contractual obligation to the Parent, the Company may be exposed to off-balance sheet risk. Pursuant to the terms of the agreements between the Company and the Parent, the Parent has the right to charge the Company for losses that result from a counterpmty's failure to fulfill its contractual obligations. As the right to charge the Company has no maximum amount and applies to all trades executed through the Parent, the Company believes there is no maximum amount assignable to this right. At December 31, 2023, the Company has recorded no liabilities with regard to the right. In addition, the Company has the right to pursue collection or performance from the counterpaities who do not perform under their contractual obligations.
Cash of \$3,033,888 is held in the Company's brokerage account with the Parent. The Company is included in the Parent's calculation ofreserve requirements for the proprietary accounts of brokers.
At December 31, 2023, the Company had an amount due to the Parent of \$43,947.
#### **6. Subsequent Events**
The Company has performed an evaluation of events that have occmTed since December 3 I, 2023 and through the date on which the Statement of Financial Condition was issued, and detennined that there are no events that have occmTed that would require recognition or additional disclosure.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.