# DEMATTEO RESEARCH LLC X-17A-5 (2025-03-03) — Broker-dealer annual report - Company: DEMATTEO RESEARCH LLC - Form: X-17A-5 - Filed: 2025-03-03 - Period: 2024-12-31 - Accession: 0001043830-25-000002 - CIK: 1043830 - File #: 8-50395 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman & Company, LLP - Auditor location: Florham Park, NJ - Contact: Artur Kurasiewicz - Phone: 2128339928 - Email: akurasiewicz@dmllc.com - Website: dmllc.com - Signed by: Joseph DeMatteo (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1043830/000104383025000002/DEMATTEO_PUBLIC.pdf --- {0}------------------------------------------------ ### DEMATTEO RESEARCH LLC (A Limitcd Liabiliw Company) # STATF.MEN'T OF FINANCIAL CONDI]]ON YEAR ENDED DECEIVIBER 31,2024 {1}------------------------------------------------ ## DEMATTEO RESEARCH LLC (A Limited Liability Company) STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 ### TABLE OF CONTENTS | | Page | |------------------------------------------------------------|------| | REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM | 11 | | FINANCIAL STATEMENT | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-8 | {2}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ANNUAL REPORTS | | | |----------------|--|--| | FORM X-17A-5 | | | | PART III | | | | OMB APPROVAL | | |-----------------------------------------------------|--| | OMB Number: 3235-0123 | | | Expires: Nov. 30, 2026 | | | Estimated average burdlen
nours per response: 12 | | | | | | SEC FILE NUMBER | | 8-50395 | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
12/31/2024 | |-------------------------------------------------------------------------------------------------------------------------| | | | MM/DD/YY | | | | | | [ Security-based swap dealer _ Major security-based swap participant | | | | | | | | | | 10022 | | (Zip Code) | | | | akurasiewicz@dmllc.com | | (Email Address) | | | | | | | | | | 07932 | | | | (Zip Code) | | | (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)(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. {3}------------------------------------------------ ### OATH OR AFFIRMATION l, Jos4pft Dc,laueo ., swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining tO the firm Of OcMoncoR6earchLLc , aS of 12131 2024 . is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or as that of a customer. equivalent person, as the case may be, has any proprietary interest in any account classified solely No.01FE6424374 gLrc. NOTARY PU Re0,strdtion Qualified rn New Yo\* CountY c€o 3) STATE OF NEIV YORK This filing" contains {dteck all applicable boxes}: - e (a) Statement of financialcondition. - E (b) Notes to consolitlated staternent of financial condition. - tr (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 5 210.1{2 of Regulation S-X). . - tr (d)Statementofcashffows. - O (e) Statement of changes in stockholdent' or partners' or sole proprietor's equity. - D (0 Statement of changes in liabilities subordinated to claims of creditors. - tr (g) Notes to consolidated financial statements. - O (h) Computation of net capital under 17 CFR 240.15c3-1or 17 CFR 240.18a-1, as applicable. - O (i) Computation of tangible net worth under 17 CFR 2t10.18a-2. - tr (j) computation for determination of customer reserve requirements puBuant to Exhibit A to 17 cFR 2t10.15€-3. - = (k) Computation fordetermination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a4, as applicable. - g (l) Computation for Detennination of PAB Requirements under Exhibit A to 5 240.15€-3. - tr (m) lnformation relatingto possession or control requirements for customers under 17 CFR 240.15€-3. - O (n) lnformation relating to possession or control requirements for security-based swap customers under 17 CFR 2tO.15c3-3(pl(21or L7 CFR 240.18a4, as applicable. - n (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 2tl0.15€-1, 17 CFR 2t10.18a-1, or 17 CFR 24O.L8a-2, as applicable, and the reserve requirements under 17 CFR 240.15€ -3 or t7 CFR 2r10.18a{, as applicablg if material differences exist, or a statement that no material differences exist. - n (p) summary of financial data for subsidiaries not consolidated in dre statement of financial condition. - E (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.l7a-12, or 17 CFR 240.18a-7, as applicable. - tr (r) Compliance report in accordance with t7 CFR20JTa-S or 17 CFR 24o.t8a-7, as applicable. - O (s) Exemption report in accordance with 17 CFR 2N.t7a-5 or 17 CFR 2rto.L8a-7, as applicable. - I (t) lndependent public accountant's report based on an examination of the statement of financialcondition. - O (u) lndependent public accountant's report based on an examination of the financial report or financial statements under 17 CFR20.l7a-5, 17 CFR 240,l.&,-7, or 17 CFR 240.t7a-t2, as applicable. - tr (v) lndependent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 2tt0.17a-3 or L7 CFR 240.18a-7, as applicable. - O (w) tndependent public accountanfs report based on a review of the exemption report under 17 CFR 24O.L7a-5 or t7 CFR 240.18a-7, as applicable. - tr (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-Le o( L7 CFR240.17a-12, as applicable. - tr (y) Report desaibing any material inadequacies found to exist or found to have existd sincethe date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 24O.L7a.t2lkl. - tr (z) Other: ,.To reguest confidentiol teotment of ceftoin poftions of this filing, see 77 CFR 2&.17o-5(e)(3) ot 17 CFR 240.18o-7(d)(2), os oppliable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Citrin Cooperman & Company, LLP Certified Public Accountants 180 Park Avenue, Suite 200 Florham Park, NJ 07932 T 973.218.0500 F 973.218.7160 citrincooperman.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member DeMatteo Research LLC ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of DeMatteo Research LLC (a limited liability 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 DeMatteo Research LLC 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 DeMatteo Research LLC's management. Our responsibility is to express an opinion on DeMatteo Research LLC'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 DeMatteo Research LLC 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 DeMatteo Research LLC's auditor since 2005. Florham Park, New Jersey February 28, 2025 "Citin Corpernan" is the brand under which Corpernan & Company, LIP, a licensed indepositions CPA firm, and Citin Cooperman Adrisons I.J.C. serve dent' business neces. The two firms operate as separates and allemative practices structure. The entities of Cathin Corporation Norison LLC are independent member from of the More North America, Inc. (MNA) Association, which is itsell a registal manber of Mores Clobal Newol. Limied (NGN). All the from associated with NIVA are independently catters. There montvership in or assecures with, MVA sheeld not be construction with, MVA sheeld not be constructio constituting or implying any partnership between them. {5}------------------------------------------------ # DEMATTEO RESEARCH LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 ## ASSETS | Assets: | | |-------------------------------------------|--------------| | Cash | \$ 1,398,117 | | Receivable from clearing broker | 624,136 | | Receivable from other brokers | 137,567 | | Prepaid expenses and other current assets | 58,616 | | Property and equipment, net | 28,078 | | TOTAL ASSETS | \$ 2,246,514 | ### LIABILITIES AND MEMBER'S EQUITY | Liabilities: | | |------------------------------------------------|--------------| | Accrued expenses and other current liabilities | \$ 245,547 | | Commitments and contingencies (Notes 3 and 7) | | | Member's equity | 2,000,967 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ 2.246.514 | {6}------------------------------------------------ ### DEI{ATIEO RESI:ARCH IJ.C (A Limited Liability Company) NOTES TO FTNANCIAL SI'A'TETEMENT DECEMBER3l,2pi24 ### NOTE 1. ORGANITATION ANn SUMIvIARY OF SIGNIFICANT ACCOU\ffiNG POI ICTtrS ### OBaniz^tion DeMatteo Research IJ,C ('Delvlatteo Research" or the "Companv") rvas formed a^s a limited liability company on July 74, 1997, pursuant to an operating agreement that specifies that it will continuc in existence until Dcccmbcr 31, 2057, unlcss dissolved earlier in accordance with the operating agreement. DeManeo Rcscarch is an indepcndent broker-dealer drat participates in commission sharing arrangemcnts and thc ddivcry of rcsearch information to cr.rstomers. DeMatteo Rcsearch is a member of the Financid Industq' Regulatory Authoriqv ('FINRA') and does not provide securities brokerage serviccs to the gcneral public. Since the Comgany is a limited liability company, the member is not liable for the debts, obligations, or liabilities of the Company, whether arising in ton, conuact, or otheru'ise, unless the member has signed a specific guarantee. ### Ilasis of Prescntation The Company's 6nenci2l statcment has been prepared in conformiry with accounting principlcs gcncrally acccpted in thc Unitcd States of America ('U.S. GA P). ### Use of Fstimates The preparation of a financial statement in conformiq' with U.S. GAAP rcquires man4gcmcnt to make estimates and assumptions that affecr the reponed amourrts of assers and liabilitics and disclosurc of contingent assets and liabilities at the date of the financial statcment. Acnrd results could differ from those esdmates. ### IncomeTaxes As a limited liability company, the Companyis treated as an S corporation for federal and state tax purposes. In licu of corporation incomc taxes, thc shareholders of an S corporarion are axed on their proponionate share of the Company's taxable income on their rcspcctive persond income tax returns. Therefore, no provision or liability for federal or Nsrv York State taxcs has bccn includcd in the accompanfing financial starement. New York City does not recognize S corporation statu-s; thcrefore, a pror.ision for Ncr\*'Yorlc Cigv tax is included in the accompanying financid staternent. The Comgany recognizes and m€asures its unrecognized tax bcnefits in accor&nce with Financial Accounting Sandards Board ('FASB') Accounting Sandards Codification ('rlSC') 740, Inamc Taxzr. Under that gui&ncc, thc Company assesscs thc likclihood, based on thcir technical medt, that tax positions will be susained upon examination based on rhe facts, circumstanccs and information available at the end of each period. The mqlsurernent of unrecognized tax benefits is adiustcd whcn new information is available or when an evert occtrrs that requires a change. As of Dccembcr 37,2024, the ComEany did not have uncenain tax positions. ln2024,the Company elected a pass-through entity ta-r (.'PTET) in Nerv York Stare and Nov York Ciry. 'fhe Companv is subicct to U.S. fcdcral and sate examinations by axing authodties. {7}------------------------------------------------ ### DEMATTEO RESEARCH LIC (A Limited Liability Company) NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2024 ## NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### Property and Equipment Expenditures for maintenance and repairs are expensed currently, while renewals and betterments that materially extend the life of an asset are capitalized. ### Capitalized Software and Website Development Costs Costs for software developed for internal use are accounted for in accordance with FASB ASC 350, Intangibles - Goodwill and Other - Internal-use Software. ("ASC 350"). FASB ASC 350 requires the capitalization of certain costs incurred in connection with developing or obtaining internal-use software. In accordance with FASB ASC 350, capitalized costs for internal-use software are included in "Property and equipment, net" in the accompanying statement of financial condition. The Company amortizes the costs of software obtained or developed for internal use over an estimated useful life of five years. Costs that are incurred in the preliminary project stage are expensed as incurred. Once the capitalization criteria of FASB ASC 350 have been met, external direct costs of materials and services consumed in developing or obtaining internal-use computer software, payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the internal-use computer software project (to the extent that their time spent is directly on the project), and interest costs incurred when developing computer software for internal use are capitalized. During 2024, the Company incurred software development costs of \$23,860. ### Financial Instruments - Credit Losses FASB ASC 326, Fnancial Instruments - Credit Lasses requires a credit loss methodology, Current Expected Credit Losses ("CECL"), which dictates the recognition of credit losses, while also providing transparency about credit risk. The CECL methodology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for loans, held to maturity securities and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. For financial assets measured at amortized cost (e.g., cash, receivable from clearing broker, and receivable from other brokers), the Company has concluded that there are de minimis expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected losses. {8}------------------------------------------------ ### DEIVTATTEO RESEARCH LLC (A Limited Liabiliry Company) NOTES TO FINANCI.AL STATEMENT DECEMBER3I,N24 ### NOTE 1. ORG ANI,IZATION AND SUMMARY OF STGNIFICANT T\CCOUNTTNG POr rcIES (CONTINITFn) ### Recently Adooted Accounting Pronouncemcnt EffectiveJanuary 7,2024, the Company adopted the provisions of Accounting Sandards up&te C'ASU") No. 202347 sqgmcnt Reponing (I'opic 280) Improvernents ro Reportable Segment Disclosures (.'ASU 2023-07'). ASU 2023-07 improves reportable sqlment disclosurc requirements primarily through enhanced disclosurcs about significant scgment expenses. 'fte Company is required ro provide dl annual disclosures about reportable segment pro6t or loss and assers as requircd bv ASU 2023-07 fior interim periods. In accor&ncc with ASU 2023-07, the Companf is required to disdosc significant s€ment expenscs that are regularlv provided to thc chief operadng decision maket "(CODlvf) and included within each rcportcd measure of segment pro6t or loss, an amount for other segment items including a dcscription of the composition. Additionally, ASU 202347 requires thc Company ro disclose the tidc and position of the CODlvl dong with an crplanation of how the CODM uscs repofted measutes of segment profit or loss in assessing segment performance and deciding horv to dlocate resotuces. iSU 202347 dso rccluires the Companv to clarify if thc CODM uses more than one meastue of a segment's profit or loss in assessing sc€fmcnt performance and deciding how to allocatc rcsources. ### Recendy Issued Accormting Pronounccrncnt ln Dcccmbcr 20?3, FASB issued ASU 2023-09, lncomc Taxcs (fopic 740): to Income Tu Diselosnns, to cnhancc thc transparencl' and decision usefulness of income tax disclosures through changes to the ratc reconciliation and income taxes paid information, disaggregatcd by federal, state, foreign, and individud jurisdictions equal to or grcatcr than 6ve percenr, This standard is effcctivc for fiscal years bqginning after f)ecember 15, 202d with early adoption permined. The Company is currendy evdtnting thc impact of the nerv standard on its financial statement and related disdosures. ### Subseouent Events - The Company has pcrformed an e\aluation of events that have occurrcd subscquenr ro Dcccmber 31,2024,and through Febmary 28,2025, the date of thc 6ling of this reporr. There have been no material subscqucnt cvents that occurred during such period that would require disclosurc in this rcport or rvould be required to be recognizcd in thc financial statement as of Decernber 37,2U24. {9}------------------------------------------------ ## DEMATTEO RESEARCH LIC (A Limited Liability Company) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024 ### PROPERTY AND EQUIPMENT NOTE 2 Property and equipment, net at December 31, 2024, consisted of the following: | Leasehold improvements | งค | 47,068 | |-------------------------------------------------|----|-----------| | Equipment | | 24,456 | | Capitalized software and web development | | 112,730 | | | | 184,254 | | Less: accumulated depreciation and amortization | | 156.176 | | Property and equipment, net | | \$ 28.078 | ## NOTE 3. COMMITMENTS AND CONTINGENCIES ### Service Contracts The Company is party to certain contracts for systems and services that enable the Company to offer its products and services. ### Litigation In the normal course of business, the Company may be party to various legal matters. At December 31, 2024, management does not believe that there are any matters involving loss to the Company that require recognition and/or disclosure in the accompanying financial statements. ### MEMBER'S EQUITY NOTE 4. The Company has one member who owns 100% of the Company. ### NOTE5. SINGLEREPORTABLE REVENUE SEGMENTATION The Company is engaged in a single line of business as a securities broker- dealer, which is comprised of several classes of services, including introducing customers to a clearing broker and other brokers and providing research information to money managers. The Company has identified its Chief Executive Officer as the CODM who uses net income to evaluate the results of the business, predominately in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 6), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or make capital distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using the information of the Company as a whole. As of December 31, 2024, the reporting segment's assets amounted to \$2,246,514. {10}------------------------------------------------ ## DEMATTEORESEARCH LIC (A Limited Liability Company) NOTESTOFINANCIALSTATEMENTS DECEMBER 31, 2024 ### NOTE 6. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule ("Rule 15c3-1"), which 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 (Rule 15c3-1 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 had regulatory net capital of \$1,776,706 which was \$1,760,336 in excess of its required net capital of \$16,370. At December 31, 2024, the Company's ratio of aggregate indebtedness to net capital was 0.14 to 1. The Company operates under the exemptive provisions of paragraph (k)(2)(ii) of SEC Rule 15c3-3 and 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 did not maintain possession or control of any customer funds or securities as of December 31, 2024. ### INDEMNIFICATION NOTE7. The Company functions as an introducing broker that places and executes customer orders. The orders are then settled by an unrelated clearing organization that maintains custody of customers' securities and provides financing to customers. Through indemnification provisions in agreements with the Company's clearing broker, customer activities may expose the Company to off-balance-sheet credit risk. Financial instruments may have to be purchased or sold at prevailing market prices in the event a customer fails to settle a trade on its original terms or in the event cash and securities in a customer's margin account is not sufficient to fully cover that customer's obligations. The Company seeks to control the risks associated with customer activities through customer screening and selection procedures, as well as through requirements on customers to maintain margin collateral with the clearing broker in compliance with various regulations and clearing organization policies. ### SIGNIFICANT CONCENTRATIONS NOTE 8. ### Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and receivables from clearing and other brokers. The Company maintains its cash balances in one major financial institution in accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in the accounts, and management does not believe there is any significant credit risk with respect to cash. The Company's represent amounts due from its clearing and other brokers. {11}------------------------------------------------ ## DEMATTEO RESEARCH LLC (A Limited Liability Company) NOTES TOFINANCIAL STATEMENTS DECEMBER 31, 2024 ### NOTE 9. DEFINED CONTRIBUTION PLAN The Company maintains a 401(k) profit-sharing plan covering substantially all of its eligible full- time employees. Employee contributions are voluntary and are subject to Internal Revenue Code limitations. #### LEASES NOTE 10. The Company recognizes its leases in accordance with ASC Topic 842, Leases ("ASC 842"). The guidance increases transparency by requiring the recognition of right of use assets and lease liabilities on the statement of financial condition. The Company leases its facility under a month-to-month arrangement. In applying ASC 842, the Company made an accounting policy election not to recognize the right of use assets and lease liabilities relating to short term leases that have a lease term of 12 months or less at the lease inception, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease costs associated with short-term leases on a straight-line basis over the lease. 8 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.