# ARCADIA SECURITIES, LLC X-17A-5 (2026-02-26) — Broker-dealer annual report - Company: ARCADIA SECURITIES, LLC - Form: X-17A-5 - Filed: 2026-02-26 - Period: 2025-12-31 - Accession: 0001053731-26-000002 - CIK: 1053731 - File #: 8-50764 - Type: Broker-dealer - Material weakness: No - Auditor: Weisberg, Mole', Krantz & Goldfarb, LLP - Auditor location: Woodbury, NY - Contact: Thomas Kikis - Phone: 212 231 4103 - Email: tkikis@arcadiasecurities.com - Website: arcadiasecurities.com - Signed by: Thomas Kikis (President) Original filing: https://www.sec.gov/Archives/edgar/data/1053731/000105373126000002/arcpublic.pdf --- {0}------------------------------------------------ # ARCADIA SECURITIES, LLC (A Limited Liability Company) ### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 {1}------------------------------------------------ | | UNITED STATES | OMB APPROVAL
OMB Number: 3235-0123 | | | | |-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------------|-------------------------------------------------|--|--| | | SECURITIES AND EXCHANGE COMMISSION | | Expires: Nov. 30, 2026 | | | | | Washington, D.C. 20549
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hours per response: 12 | | | | | | | ANNUAL REPORTS | | SEC FILE NUMBER | | | | | | 8-50764 | | | | | | PART III | | | | | | | FACING PAGE | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | FILING FOR THE PERIOD BEGINNING 01/01/2025 AND ENDING 12/31/2025 | | | | | | | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: Arcadia Securities LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
@ Broker-dealer
Check here if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 1370 Avenue of the Americas 29th floor | | | | | | | | (No. and Street) | | | | | | New York | NY | | 10019 | | | | (City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Thomas Kikis | | | | | | | 212 231 4103 | | | | | | (Name) | (Area Code - Telephone Number) | | tkikis@arcadiasecurities.com
(Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | | | | | | | | | | Weisberg, Mole', Krantz & Goldfarb, LLP | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 185 Crossways Park Drive | Woodbury | NY | 11797 | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Address) | (City) | (State) | (Zip Code) | | | | 12-14-2004 | | 2107 | | | | | (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 | | | | | | 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Thomas Kikis | | | | ____ swear (or affirm) that, to the best of my knowledge and belief, the financial | | | |--------------|-------------|--|--|------------------------------------------------------------------------------------|--|-------| | | | | | report pertaining to the firm of Arcadia Securities LLC | | as of | | | December 31 | | | 7 025 is true and correct I furthar swoor los offices I that naith and would | | | 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 clasified solely as that of a customer. Title · President Notary Public #### 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). - O (d) Statement of cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (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. - م 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - 口 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.18a-1, or 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 ifferences 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 affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-1, as applicable. [] (; ) e - □ (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. - [0] (u) Independent public accountant's report based on an examination of the financial report of financial concritic coments under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [CF] (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. - Cl (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, 1 as applicable. - a statement 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). - L (z) Other: \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17c-5(e)(3) or 17 CFR 240.18c-7(d)(2), as 1 applicable. {3}------------------------------------------------ ### ARCADIA SECURITIES, LLC (A Limited Liability Company) ### DECEMBER 31, 2025 TABLE OF CONTENTS Report of Independent Registered Public Accounting Firm PAGE Report of Independent Registered Public Accounting Firm Statement of Financial Condition 1 Notes to Financial Statement 2-9 {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Weisberg, Molé, Krantz & Goldfarb, LLP Certified Public Accountants ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Managing Member of Arcadia Securities, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Arcadia Securities, LLC (a limited liability company) as of December 31, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Arcadia Securities, LLC as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Arcadia Securities, LLC's management. Our responsibility is to express an opinion on Arcadia Securities, 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 Arcadia Securities, 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 Arcadia Securities, LLC's auditor since 2023. Weisberg, Mole', Krantz & Goldfarb, LLP Woodbury, New York February 24, 2026 > 185 Crossways Park Drive, Woodbury, New York 11797 • Phone: 516-933-3800 • Fax: 516-933-1060 www.weisbergmole.com {5}------------------------------------------------ ### ARCADIA SECURITIES, LLC (A Limited Liability Company) STATEMENT OF FINANCIAL CONDITION December 31, 2025 Assets | Cash and cash equivalents | S | 112,058 | |---------------------------------------|---|-----------| | Securities owned, at fair value | | 2,638,485 | | Investment banking fee receivable | | 258,401 | | Receivable from clearing broker | | 73,634 | | Deposit with clearing broker | | 201,931 | | Right of Use Asset | | 23,112 | | Prepaid expenses | | 11,390 | | Total Assets | S | 3,319,011 | | LIABILITIES AND MEMBERS' EQUITY | | | | Liabilities | | | | Accounts payable and accrued expenses | | 264,217 | | Operating lease liability | | 23,112 | |---------------------------------------|----|-----------| | Total liabilities | 69 | 287,329 | | | | | | Members' equity | | 3,031,682 | | Total liabilities and members' equity | | 3,319,011 | See notes to the financial statement {6}------------------------------------------------ #### 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Arcadia Securities, LLC (the "Company") is a securities broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory ("FINRA"), both effective August 28, 1998. The Company was formed in New York State. Its principal office is in New York. The Company's operations comprise of five major services: investment banking, sales of private placement interests, financial advisory, agency securities transactions, and principal securities transactions. The Company has an agreement with its clearing broker to clear securities transactions, carry customer accounts on a fullydisclosed basis and perform record keeping functions and accordingly, operates under the exemptive provisions of Securities and Exchange Commission Rule 15c3-3(k)(2)(ii). Management of the Company has evaluated matters and transactions that have occurred from December 31, 2025 to the date of the financial statements' issuance, February 10, 2026. No material matters required recording or disclosure in the Company's financial statements. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") as detailed in the Financial Accounting Standards Board's Accounting Standards Codification. #### Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts disclosed in the financial statements. Actual results could differ from those estimates. #### Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of cash which at times may be in excess of the FDIC insurance limit of \$250,000. #### Divisions The Company's fee income lines of business are operated under its divisions Brookline Capital Markets and B. Dyson Capital Advisors (the "Divisions"). The Company has ongoing compensation and operating with the principals of the Divisions. Under the terms of these agreements, the Company's commission rates paid to the Divisions incorporate the Division's anticipated annual operating expenses, which are then the Divisions' financial responsibility. {7}------------------------------------------------ #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Revenue Recognition In accordance with ASC Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606") revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services or securities ("deliverable") to the customers. Transfer occurs when, or as, the customer of that deliverable. A performance obligation may be satisfied at a point in time or over time. The Company's performance obligations are satisfied at a point in time and collected concurrently or shortly thereafter, such as a transaction closing, Revenue from a performance obligation satisfied at a point in time is recognized at the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the deliverable to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, collectability, and profitability of realization. #### Commissions The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. #### Fee Income The Company earns fee income from services related to: Investment banking transactions, such as mergers-and-acquisitions, investment advisory engagements, and private placement investments. In each case, revenue is recognized according to the completion of its performance obligations set forth in the customer agreement. In some cases, significant judgement is needed to determine the appropriate timing and measure of progress for revenue recognition. In addition, revenue recognition is subject to being probable of realization, meaning both collectible and not a risk of subsequent reversal when current uncertainties are resolved. {8}------------------------------------------------ #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Principal Transactions Principal securities transactions in regular-way trades are recorded on the trade date, as if they had loss arising from all securities transactions entered into for the account and risk of the Company are recorded on a trade date basis. Securities are recorded at fair value. #### Furniture and Equipment Furniture and equipment are stated at cost less accumulated depreciation. Depreciation on furniture and equipment is computed on a straight-line basis over the estimated useful lives (5-6 years) of the related assets. #### Fair Value - Definition and Hierarchy Fair value is defined as the price that would be received to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement assumes that the transaction to sell the asset or transfer the liability occurs in the asset or liability or, in the absence of a principal market, the most advantageous market. 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 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 the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments are not applied to Level 1 investments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these investments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. {9}------------------------------------------------ #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Fair Value - Definition and Hierarchy (continued) Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The availability of valuation techniques and observable inputs can vary from investment and are affected by a wide variety of factors, including the type of investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the extent that valuation is based on models or inputs that are less observable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. #### Securities Owned, at Fair Value The Company's investments in securities are principally categorized in Level 1 of the fair value hierarchy. Level 1 securities are actively traded in national markets and valued at the period-end last sales price. See Note 3. #### Income Taxes and Deferred Taxes The Company files its tax return as a partnership, consequently net income, or loss, in apportioned to the Members and reported in their personal income tax returns. Since the Company operates in New York City, the Company provides for and is subject to the New York City Unincorporated Business tax on its income. Generally, the Company is subject to income tax examinations by major taxing authorities during the three-year period covered by these financial statements. Deferred income taxes are provided for temporary differences between and tax basis of asses and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences arse. The differences are primarily due to the use of the cash method of accounting for income tax reporting. No provision has been made for deferred taxes or for such differences due to insignificance. {10}------------------------------------------------ #### -- -!" #\$#% ### #& - ### 4-+,51 67819 7-2 :1;1<<12 67819 \*+,-./-0123 ' ( ( )\*+,-./-0123 => ?@@ABC?>@D EFGH IJJKL GHD MANO?>PQR N?>?SDND>G FR BDTUFBDC GA CDGDBNF>D EHDGHDB ? 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BDRUXGL GHD MANO?>P @A>RFCDBR GHD ?NAU>GR CUD WBAN FGR @XD?BF>S ZBAYDB GA ZD WUXXP @AXXD@GFZXDL ?>C ?@@ABCF>SXPL >A ?XXAE?>@D H?R ZDD> DRG?ZXFRHDC ?R AW `D@DNZDB abL cdce[ JR AW `D@DNZDB abL cdceL GHD ?NAU>G CUD WBAN GHD ZBAYDB E?R sxaLyaz[ ### {17919 \HD MANO?>P ?@@AU>GR WAB XD?RD ?SBDDND>GR F> ?@@ABC?>@D EFGH JiM |zc }D?RDRL EHF@H BD@AS>F]DR GEA GPODR AW XD?RDR ~ WF>?>@D XD?RDR ?>C AODB?GF>S XD?RDR[ \HD RG?>C?BC BDTUFBDR GH?G ? XDRRDD BD@AS>F]D ?> ?RRDG ?>C XF?ZFXFGP Z?X?>@D A> GHD RG?GDND>G AW WF>?>@F?X @A>CFGFA> BDX?GF>S GA XD?RDR EFGH GDBNR AW NABD GH?> GEDX^D NA>GHR[ \HD BD@AS>FGFA>L ND?RUBDND>GL ?>C OBDRD>G?GFA> AW DVOD>RDR ?>C @?RH WXAER ?BFRF>S WBAN ? XD?RD ZP ? XDRRDD EFXX CDOD>C A> FGR @X?RRFWF@?GFA> ?R ? WF>?>@D AB AODB?GF>S XD?RD[ FSHG AW URD ?RRDGR h BDOBDRD>G GHD BFSHG GA URD ?> U>CDBXPF>S ?RRDG WAB GHD XD?RD GDBN ?>C XD?RD XF?ZFXFGFDR BDOBDRD>G AUB AZXFS?GFA> GA N?YD XD?RD O?PND>GR ?BFRF>S WBAN GHD XD?RD[ ODB?GF>S XD?RD h ?RRDGR ?>C XF?ZFXFGFDR ?BD BD@AS>F]DC ?G @ANND>@DND>G C?GD Z?RDC A> GHD OBDRD>G ^?XUD AW XD?RD O?PND>GR A^DB GHD XD?RD GDBN[ KBDRD>G ^?XUD FR GPOF@?XXP @ANOUGDC URF>S GHD MANO?>PQR F>@BDND>G?X ZABBAEF>S B?GD ZD@?URD GHD XD?RD FNOXF@FG B?GD FR >AG ?^?FX?ZXD[ {11}------------------------------------------------ ### 3. FAIR VALUE MEASUREMENTS The Company's assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 1. The following table presents information about the Company's assess measured at fair value as of December 31, 2025: | Level I
Assets | | Level 2
Level 3 | | Total | | | |-------------------|-----------|--------------------|--|-------|-----------|--| | | 1,196,747 | | | | 1,196,747 | | | | 1,441,738 | | | | 1,441,738 | | | | 2,638,485 | | | | 2,638,485 | | | | | | | | | | The Company did not have any level 2 or 3 assets at December 31, 2025. #### 4. FURNITURE AND EQUIPMENT At December 31, 2025, the furniture and equipment consist of the following: | Computer equipment | es | 119,313 | |-------------------------------------------------|----|-----------| | | | 119.313 | | Less: accumulated depreciation and amortization | | (119,313) | | | S | | #### 5. NET CAPITAL REQUIREMENTS The Company is subject to the uniform net capital requirements of Rule Securities and Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company is required to maintain defined minimum net capital of the greater of \$100,000 or 6 2/3% of aggregate indebtedness. At December 31, 2025, the Company had net capital, as defined, of \$2,554,753, which exceeded the required minimum net capital of \$100,000 by \$2,454,753. Aggregate indebtedness at December 31, 2025 totaled \$264,217. The Company's percentage of aggregate indebtedness to net capital was 10.34%. {12}------------------------------------------------ #### 6. OFF-BALANCE-SHEET RISKS Pursuant to a clearance agreement, the Company introduces all of its securities transactions to its clearing broker, on a fully disclosed basis. All of the customers' money balances and security positions are carried on the clearing broker. In accordance with the clearance agreement, the Company is obligated for any losses the clearing broker may sustain from carrying securities transactions introduced by the Company bears the risk of financial failure by its clearing broker-dealer. If the clearing broker-dealer should cease doing business, the Company's receivables from such clearing broker-dealer could be subject to forfeitures. In accordance with industry practice and regulatory requirements, the Company and the clearing broker monitor collateral on the customers' acounts introduced by the Company's financial instruments, including cash and cash equivalents, deposit with clearing broker, receivable from clearing broker, prepaids, other assets, and accrued expenses are carried at amounts that approximate fair value, due to the short-term nature of the instruments. #### 7. RIGHT OF USE ASSET AND LEASE LIABILITY The Company entered into a new sublease agreement of its main office for the period ended April 30, 2026. In accordance with ASC 842, Leases, the Company classified the lease as an operating lease. The lease does not contain a renewal option but can be extended month at the end of the lease. The Company has reviewed and based the right of use asset and lease liabilities, primarily, on the present value of unpaid future minimum lease payments. In accordance, the Company has a right of use asset of \$23,112, offset by a lease liability of \$23,112 on its statement of financial condition as of December 31, 2025. The present value of the existing lease was determined by using the incremental collateralized borrowing rate of January 1, 2025 of 6.58%. #### 8. REPORTABLE SEGMENTS The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of five major services: investment banking, sales of private placement interests, financial advisory, agency securities transactions, and principal securities transactions. 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, 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 pay dividends. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the business activities using information of the Company as a whole. The accounting policies used to measure profit and loss of the same as those described in the summary of significant accounting policies. {13}------------------------------------------------ #### 9. COMMITMENTS AND CONTINGENCIES #### Indemnifications In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees, and administrators, against specified potential losses in connection with them acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company provides representations and warranties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make mater these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company is subject to regulatory oversight and periodic examinations by the Financial Industry Inc. ("FINRA") and other regulatory bodies in the normal course of business. As a result of a 2022 examination, FINRA and the Company have negotiated a tentative settlement in which the Company would enter into a Letter of Acceptance, Waiver and Consent ("AWC") to resolve their findings in which the Firm would pay a \$40,000 fine, but which is subject to formal approval by FINRA, including its Office of Disciplinary Affairs. To date, FINRA has not proffered any form of an AWC to the Company to resolve this matter, although the Company expects that to occur in the not-too-distant future. Management believes that this potential monetary sanction is quantitatively immaterial to the Company's financial position, results of operations, and cash flows for the current year. Accordingly, the financial statements do this matter. 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