# BAYSTATE CAPITAL SERVICES, INC. X-17A-5 (2026-05-12) — Broker-dealer annual report - Company: BAYSTATE CAPITAL SERVICES, INC. - Form: X-17A-5 - Filed: 2026-05-12 - Accession: 0000950130-26-000184 - CIK: 938397 - File #: 8-48054 - Email: a.aritan@monarchlife.com - Website: monarchlife.com Original filing: https://www.sec.gov/Archives/edgar/data/938397/000095013026000184/d144576dfull.pdf --- {0}------------------------------------------------ ## BAYSTATE CAPITAL SERVICES, INC. (A Wholly-owned Subsidiary of Monarch Life Insurance Company) ## FINANCIAL STATEMENTS WITH SUPPLEMENTARY INFORMATION As of and for the Year Ended December 31, 2025 {1}------------------------------------------------ 01/01/2025 12/31/2025 # Baystate Capital Services, Inc. ■ # 330 Whitney Avenue, Suite 500 | Holyoke | MA | 01040 | | | | |--------------------------|--------------|--------------------------|--|--|--| | | | | | | | | | | | | | | | Atilla G. Aritan | 413-784-6196 | a.aritan@monarchlife.com | | | | | | | | | | | | | | | | | | | See
attached
note. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {2}------------------------------------------------ #### OATH OR AFFIRMATION I. Atilla G. Aritan , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Baystate Capital Service, Inc. as a manufacturer and the comments of the last of December 31 2 25 , 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. KAREN A. BRAULT MOSON Notary Public, Commonwealth of Massachusetts My Commission Expires May 30, 2032 A practit Signature: 7 Title: President and Director #### This filing \*\* contains (check all applicable boxes): - = (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - @ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - (d) Statement of cash flows. - = (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - [h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - [ {o} Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | | 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. - □ (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 statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-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 240.17a-12(k). - = (z) Other: See attached - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {3}------------------------------------------------ ## BAYSTATE CAPITAL SERVICES, INC. 330 WHITNEY AVENUE, SUITE 500 HOLYOKE, MASSACHUSETTS 01040 ADDITIONAL INFORMATION ADDED TO THE ANNUAL REPORT FILING FOR BAYSTATE CAPITAL SERVICES, INC. FOR THE YEAR-ENDED DECEMBER 31, 2025 Please be advised that Baystate Capital Services, Inc. (the "Firm") is relying on the following SEC Rule when filing its annual report for year-ended December 31, 2025: Pursuant to SEC Rule 17a-5(e)(1)(i), the Firm's annual report is not covered by the opinion of an independent public accountant because throughout the audit year, the Firm's securities business has been limited to acting as a broker (agent) for a single issuer, Monarch Life Insurance Company, in soliciting subscriptions for securities of that issuer; the Firm has promptly transmitted to the issuer all funds and promptly delivered to the subscriber all securities received in connection with any transactions; and the Firm has not otherwise held funds or securities for or owed money or securities to customers." To be in compliance when filing the Firm's annual report through FINRA's Firm Gateway, the Firm spoke with a technical supervisor at FINRA who advised the Firm to mockup the portion of the filing that pertained to the auditor's information with the Firm's name, address, etc. Part of the filing requires the Firm to check all applicable boxes to advise what is included in the filing. In order to submit the filing, the box for the independent accountant report must be checked or the filing cannot be submitted due to FINRA's Firm Gateway system limitations. The Firm, for the reasons stated above, does not have an independent auditor's opinion. However, the Firm was instructed to check the box, for technical purposes, to make the annual report filing by March 31, 2026. **Although the independent auditor's box has been checked there is no independent auditor's opinion attached to the Firm's filing as noted above**. The Firm was instructed by its FINRA Risk Analyst to add this page to its annual report filing as an explanation. {4}------------------------------------------------ ## BAYSTATE CAPITAL SERVICES, INC. (A Wholly-owned Subsidiary of Monarch Life Insurance Company) TABLE OF CONTENTS December 31, 2025 | | Page(s) | |------------------------------------------------------------------------------------------------------------------------------------|---------| | Statement of Financial Condition | 1 | | Statement of Operations | 2 | | Statement of Changes in Stockholder's Equity | 3 | | Statement of Cash Flows | ব | | Notes to Financial Statements | 5-6 | | Supplemental Schedules
Schedule 1 - Computation of Net Capital under
Rule 15c3-1 of the Securities and Exchange Commission | 7 | | Schedule II - Computation for Determination of Reserve Requirements under
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| 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHILQDQFLDOVWDWHPHQWV {6}------------------------------------------------ ## BAYSTATE CAPITAL SERVICES, INC. (A Wholly-owned Subsidiary of Monarch Life Insurance Company) STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2025 | | | 2025 | |--------------------------|----|------| | Revenues: | | | | Commissions (See Note 3) | ತಿ | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | Net Income | S | | | | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ #### **%\$<67\$7(&\$3,7\$/6(59,&(6,1& \$:KROO\RZQHG6XEVLGLDU\RI0RQDUFK/LIH,QVXUDQFH&RPSDQ\ 67\$7(0(172)&+\$1\*(6,1672&.+2/'(5 6(48,7< )257+(<(\$5(1'(''(&(0%(5** | | &RPPRQ
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(A Wholly-owned Subsidiary of Monarch Life Insurance Company) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025 | | | 2025 | |-------------------------------------------|---|--------| | Cash Flows From Operating Activities: | | | | Net Income | S | | | Net Cash Provided by Operating Activities | | | | Net Increase in Cash | | | | Cash - Beginning of Period | | 11,411 | | Cash - End of Period | S | 11,411 | The accompanying notes are an integral part of these financial statements. {9}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¶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¶VILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGRQWKHEDVLVRIDFFRXQWLQJSULQFLSOHVJHQHUDOO\ DFFHSWHGLQWKH8QLWHG6WDWHVRI\$PHULFD³86\*\$\$3´ 3UHSDULQJILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWK86 \*\$\$3UHTXLUHVWKH&RPSDQ\WRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDWDIIHFWUHSRUWHGDPRXQWVDQGUHODWHG GLVFORVXUHV &DVK&DVKLVFRPSULVHGRIIXQGVRQGHSRVLWZLWKFRPPHUFLDOEDQNV ,QFRPH7D[HV7KH&RPSDQ\¶VRSHUDWLRQVDUHLQFOXGHGLQWKHFRQVROLGDWHGOLIHQRQOLIHIHGHUDOLQFRPHWD[ UHWXUQRI5HJDO5HKRZHYHUSXUVXDQWWRWKHWHUPVRIYDULRXVDJUHHPHQWVEHWZHHQ0RQDUFK/LIHDQGWKH &RPSDQ\DOORSHUDWLQJH[SHQVHVLQFOXGLQJIHGHUDODQGVWDWHLQFRPHWD[HVDUHWUHDWHGDVDOLDELOLW\RI 0RQDUFK/LIHDQGDUHSDLGE\0RQDUFK/LIH 5HFRJQLWLRQRI&RPPLVVLRQ,QFRPHDQG([SHQVH\$VWKH&RPSDQ\H[LVWVWRVHUYHDVDUHJLVWHUHGEURNHU GHDOHUIRU0RQDUFK/LIHDQGDOORSHUDWLQJH[SHQVHVRIWKH&RPSDQ\DUHERUQHE\0RQDUFK/LIHWKH&RPSDQ\ GRHVQRWPDLQWDLQFRQWURORIDQ\JRRGVRUVHUYLFHVLQLWVREOLJDWLRQVWR0RQDUFK/LIHLQDFFRUGDQFHZLWK\$6& 7KHUHVXOWLVDQHWSUHVHQWDWLRQRIWKHFRPPLVVLRQDFWLYLW\RQWKH6WDWHPHQWRI2SHUDWLRQV 6WDWHPHQWRI&KDQJHVLQ6XERUGLQDWHG/LDELOLWLHV7KHILQDQFLDOVWDWHPHQWVGRQRWLQFOXGHDVWDWHPHQWRI FKDQJHVLQOLDELOLWLHVVXERUGLQDWHGWRWKHFODLPVRIJHQHUDOFUHGLWRUVDVUHTXLUHGXQGHU5XOHDRIWKH 6HFXULWLHV([FKDQJH\$FWRIVLQFHQRVXFKOLDELOLWLHVH[LVWHGDW'HFHPEHURUGXULQJWKH\HDU WKHQHQGHG {10}------------------------------------------------ ## NOTE 2-ACCOUNTING POLICIES (Continued) Subsequent Events: As of April 2, 2026, the date in which the financial statements were available to be issued, management has determined that no subsequent events have occurred following the balance sheet date of December 31, 2025 which require recognition or disclosure in the financial statements. #### NOTE 3-COMMISSION INCOME In accordance with ASC 606, the commissions were recorded on the Statement of Operations net of the associated commissions paid to registered agents by Monarch Life. During 2025, Monarch Life paid commissions of \$439 associated with existing variable life insurance policies and variable annuity contracts. #### NOTE 4-NET CAPITAL REQUIREMENTS Pursuant to the Uniform Net Capital requirements of the Securities and Exchange Commission under Rule 15c3-1, the Company is subject to certain rules regarding minimum net capital and is required to maintain a ratio of "aggregate indebtedness" to "net capital" (as those items are defined) which may not exceed 15 to 1. Minimum Net Capital required equals the greater of 6 2/3% of aggregate indebtedness or \$5,000. Aggregate indebtedness, net capital, and the resultant ratio for the Company at December 31, 2025, were as follows: | | 2025 | |---------------------------------------------------|-----------| | Aggregate indebtedness | 6 | | Net capital | \$ 11,411 | | Ratio of aggregate
indebtedness to net capital | | The Company's excess of net capital over minimum net capital required at December 31, 2025, based on its aggregate indebtedness, was \$6,411. The operations of the Company do not include the physical handling of securities or the maintenance of customer accounts. Accordingly, the reserve provisions of Rule 15c3-3 of the Securities Exchange Act of 1934 do not apply under the exemption allowed by paragraph (k)(1) of that Rule. ## NOTE 5-RELATED PARTY TRANSACTIONS In accordance with various agreements between Monarch Life and the Company, the Company receives various services from Monarch Life, without charge, including accounting and data processing. All other operating expenses and tax liabilities (if any) of the Company are also borne by Monarch Life. For the year ended December 31, 2025, the allocated expenses paid by Monarch Life on behalf of the Company were \$11,262. As disclosed in Note 3, for the year ended December 31, 2025, commissions of \$439 were paid by Monarch Life. There were no intercompany receivables or payables at December 31, 2025. {11}------------------------------------------------ ## BAYSTATE CAPITAL SERVICES, INC. (A Wholly-owned Subsidiary of Monarch Life Insurance Company) SUPPLEMENTAL SCHEDULE SCHEDULE I - COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION | | | December 31,
2025 | |------------------------------------------------------------------------------------------|---|----------------------| | Total stockholder's equity | S | 11,411 | | Haircut on nonexempt securities | | | | Net capital | S | 11,411 | | Aggregate indebtedness | S | | | Minimum net capital required (greater of 6 2/3% of
aggregate indebtedness or \$5,000) | S | 5,000 | | Excess net capital | S | 6,411 | | Ratio of aggregate indebtedness to net capital | | | The above calculation does not materially differ from the Company's calculation as reported in Part IIA of the unaudited FOCUS report as of December 31, 2025. {12}------------------------------------------------ ## **%\$<67\$7(&\$3,7\$/6(59,&(6,1& \$:KROO\RZQHG6XEVLGLDU\RI0RQDUFK/LIH,QVXUDQFH&RPSDQ\ 6833/(0(17\$/6&+('8/( 6&+('8/(,,&20387\$7,21)25'(7(50,1\$7,212)5(6(59( 5(48,5(0(17681'(558/(F2)7+(6(&85,7,(6\$1'(;&+\$1\*(&200,66,21** ## **)257+(<(\$5(1'(''(&(0%(5** 7KH&RPSDQ\FODLPVH[HPSWLRQIURPWKHSURYLVLRQVRI5XOHFXQGHUWKH6HFXULWLHV ([FKDQJH\$FWRILQWKDWWKH&RPSDQ\ VDFWLYLWLHVDUHOLPLWHGWRWKRVHVHWIRUWKLQWKH FRQGLWLRQVIRUH[HPSWLRQDSSHDULQJLQSDUDJUDSKN RIWKDWUXOH Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.