# STONEBRIDGE SECURITIES, LLC. X-17A-5 (2024-02-26) — Broker-dealer annual report

- Company: STONEBRIDGE SECURITIES, LLC.
- Form: X-17A-5
- Filed: 2024-02-26
- Period: 2023-12-31
- Accession: 0001088408-24-000002
- CIK: 1088408
- File #: 8-51851
- Type: Broker-dealer
- Material weakness: No
- Auditor: Ohab and Company, PA
- Auditor location: Maitland, FL
- Contact: Michael Hendrickson
- Phone: 2067709700
- Email: mikeh@stonebridgesecurities.com
- Website: stonebridgesecurities.com
- Signed by: Michael Hendrickson (CEO)

Original filing: https://www.sec.gov/Archives/edgar/data/1088408/000108840824000002/sspub.pdf

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| PUBLIC                                                                                                                                                                                                         | UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549                                                                   |                 | 0MB APPROVAL<br>0MB Number: 3235-0123<br>Expires: Nov. 30, 2026<br>Estimated average burden<br>hours per response:<br>12 |  |  |  |  |
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|                                                                                                                                                                                                                | ANNUAL REPORTS                                                                                                                                  |                 | SEC FILE NUMBER                                                                                                          |  |  |  |  |
|                                                                                                                                                                                                                | FORM X-17A-5                                                                                                                                    |                 | 8-51851                                                                                                                  |  |  |  |  |
|                                                                                                                                                                                                                | PART Ill                                                                                                                                        |                 |                                                                                                                          |  |  |  |  |
| FACING PAGE<br>Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934                                                                                       |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
| AND ENDING 12/31/2023<br>FILING FOR THE PERIOD BEGINNING 01/01/2023                                                                                                                                            |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
|                                                                                                                                                                                                                | MM/DD/YY                                                                                                                                        |                 | MM/DD/YY                                                                                                                 |  |  |  |  |
| A. REGISTRANT IDENTIFICATION                                                                                                                                                                                   |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
|                                                                                                                                                                                                                | NAME OF FIRM: STONEBRIDGE SECURITIES LLC                                                                                                        |                 |                                                                                                                          |  |  |  |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>0 Broker-dealer<br>□ Major security-based swap participant<br>□ Security-based swap dealer<br>D Check here if respondent is also an OTC derivatives dealer |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
| 330 112TH AVE, SUITE 300                                                                                                                                                                                       | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                                                                             |                 |                                                                                                                          |  |  |  |  |
|                                                                                                                                                                                                                | (No. and Street)                                                                                                                                |                 |                                                                                                                          |  |  |  |  |
| BELLEVUE                                                                                                                                                                                                       | WA                                                                                                                                              |                 | 98004                                                                                                                    |  |  |  |  |
| (City)                                                                                                                                                                                                         | (State)                                                                                                                                         |                 | (Zip Code)                                                                                                               |  |  |  |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                                                                                                   |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
| MICHAEL HENDRICKSON 206-770-9700<br>mikeh@stonebridgesecurities.com                                                                                                                                            |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
| (Name)                                                                                                                                                                                                         | (Area Code -Telephone Number)                                                                                                                   |                 | (Email Address)                                                                                                          |  |  |  |  |
|                                                                                                                                                                                                                | 8. ACCOUNTANT IDENTIFICATION                                                                                                                    |                 |                                                                                                                          |  |  |  |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>OHAB AND COMPANY, PA                                                                                                              |                                                                                                                                                 |                 |                                                                                                                          |  |  |  |  |
| 100 E SYBELIA AVENUE SUITE 130                                                                                                                                                                                 | (Name - if individual, state last, first, and middle name)<br>MAITLAND                                                                          | FL              | 32751                                                                                                                    |  |  |  |  |
| (Address)<br>JULY 28, 2004                                                                                                                                                                                     | (City)                                                                                                                                          | (State)<br>1839 | (Zip Code)                                                                                                               |  |  |  |  |
| rte of Reglstcatioo with PCAOB)Of applicable]                                                                                                                                                                  | FOR OFFICIAL USE ONLY<br>* 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.l ?a-S(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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#### **OATH OR AFFIRMATION**

|  | MICHAEL HENDRICKSON |
|--|---------------------|

I, MICHAEL HENDRICKSON swear (or affirm) that, to the best of my knowledge and belief, the

financial report pertaining to the firm of STONEBRIDGE SECURITIES LLC as of **12/31** 2~, 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.

'.~WV~,~ Ti e: CEO

#### **This filing\*\* contains (check all applicable boxes):**

- ~ (a) Statement of financial condition.
- ~ (b) Notes to consolidated statement of financial condition.
- D (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 (d) Statement of cash flows.
- D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (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.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (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.
- D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- D (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.
- D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, 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.
- D (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-7, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (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.
- D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- D (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.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable.
- D (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). D (z) Other:-----------------------------------------
- 

<sup>\*\*</sup>To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}(3} or 17 CFR 240.18a-7(d}(2}, as applicable.

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Stonebridge Securities, LLC Report Pursuant to Rule 17a-5 (d) Financial Statements For the Year Ended December 31, 2023

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![](_page_3_Picture_0.jpeg)

I 00 E. Sybclia ;\ vc. Suite I '.HJ Maitland. FL 1275 I

Cer11/icd P11h/1c Acco111110111s

Telephone 407-740- 73 I I Fax 407-740-M41

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Members of Stonebridge Securities, LLC

#### Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Stonebridge Securities, LLC as of December 3i, 2023, and tt1e 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 Stonebridge Securities, LLC as of December 3i, 2023 in conformity with accounting principles generally nccepted in the United States of America.

#### Basis for Opinion

This finnncial statement is the responsibility of Stonebridge Securities, LLC's management. Our responsibility is to express an opinion on Stonebridge 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 Stonebridge 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 accor·cJance 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· clue to error or fraud, and performing procedures that respond to those risks. Such procecJures included examining. on a test basis, evicJence 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 tor our opinion.

We have served as Stonebridge Securities, LLC's auditor since 2018.

Maitland, Florida

February 2:0, 2024

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## **Stonebridge Securities, LLC Statement of Financial Condition December 31, 2023**

#### **Assets**

| Cash                                  | \$<br>21,359 |
|---------------------------------------|--------------|
| Receivables from customers            | 73,500       |
| Allowance for doubtful accounts       | (73,500)     |
| Prepaid expenses and other            | 881          |
| Total current assets                  | 22,240       |
| Equipment                             | 26,055       |
| Accumulated depreciation              | (24,958)     |
| Net Equipment                         | 1,097        |
| Total Assets                          | \$<br>23,337 |
| Liabilities and Member's Equity       |              |
| Liabilities                           |              |
| Accounts payable                      | \$<br>1,820  |
| Accrued expenses                      |              |
| Total Liabilities                     | 1,820        |
| Member's Equity                       |              |
| Member's equity                       | 21,517       |
| Total Member's Equity                 | 21,517       |
| Total Liabilities and Member's Equity | \$<br>23,337 |

*The accompanying notes are an integral part of thesesfinancial statements.* 

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## **Note 1: DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

### *General*

Stonebridge Securities, LLC (the "Company"), a Washington limited liability company, was organized on March 19, 1999, under the name of Base Capital Securities, L.L.C. The Company operates as a registered broker/dealer in securities under the provisions of the Securities and Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA'').

The Company's services include ra1s111g capital for customers through the private placement process by placing securities with accredited investors, providing fee based financial structuring and consulting.

Under its membership agreement with FINRA and pursuant to Rule 15c3-3(k)(l ), the Company conducts business on a fully disclosed basis and does not execute or clear securities transactions for customers. Accordingly, the Company is exempt from the requirement of Rule 15c3-3 under the Securities Exchange Act of 1934 pertaining to the possession or control of customer assets and reserve requirements.

### *Summary <~lSign(ficant Accounting Policies*

The presentation 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

### *Sign(ficant Judgments*

Revenue from contracts from customers includes fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events.

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### *M&A Advisory Fees*

The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangement in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2023, all amounts were immaterial.

### *Cash*

The Company considers all highly liquid investments purchased with an original maturity of three months or less as cash. At times during the year, the Company had cash in excess of the federally insured limits on deposit in a single credit institution.

### *Credit Losses*

The Company follows ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances ( e.g., based on the credit quality of the customer).

The Company did not have any accounts receivable at December 31, 2023.

### *Equipment*

The Company capitalizes expenditures greater than \$2,000 that materially increase asset lives and charges ordinary maintenance and repairs to operations as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in net income.

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Depreciation of equipment is computed using the straight-line method between 3 and 5 years. Depreciation expense for the years ended December 31, 2023 is \$1,871.

At each balance sheet date, the Company evaluates the carrying value of its long-lived assets, and the propriety of remaining lives of such assets considering whether any events have occurred our conditions have developed which may indicate that remaining lives or amortization methods require adjustment. If such evaluations were to indicate an impairment of these assets, such impairment would be recognized by a write-down of the applicable assets. No impairment write-down was necessary for the years ended December 31,2023.

#### **Note 2: INCOME TAXES**

The Company is treated as a disregarded entity for federal income tax purposes, in accordance with single member limited liability company rules. All tax effects of the Company's income or loss are passed through to the member. Therefore, no provision or liability for Federal Income Taxes is included in these financial statements.

State income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to differences between the financial and income tax bases of assets and liabilities. The deferred tax assets and liabilities, if any, represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.

#### **Note 3: CONCENTRATIONS**

For the year ended December 31, 2023 all customer investment fees had been paid and the Company had no Accounts Receivable.

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#### **Note 4: CONCENTRATIONS OF CREDIT RISK**

The Company is engaged in various trading and brokerage act1v1t1es in \Yhich counter-parties primarily include broker-dealers, banks, and other financial institutions. In the event counterpaiiies do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counter-party or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counter-paiiy.

### **Note 5: NET CAPITAL REQUIREMENTS**

The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC rule 15c3-1 ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not 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. Net capital and aggregate indebtedness change day to day, but on December 31, 2023, the Company had net capital of \$19,539 which was \$14,539 in excess of its required net capital of \$5,000; and the Company's ratio of aggregate indebtedness \$1,820 to net capital was 0.09 to 1, which is less than the 15 to 1 maximum allowed.

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### **Note 6: COMMITMENTS AND CONTINGENCIES**

There are no commitments or contingencies as of December 31, 2023.

## **Note 7: COMPANY CONDITIONS**

The Company has loss of \$9,128 for the year ending December 31, 2023. The Company's member has represented that he intends to continue making capital contributions, as needed, to ensure the Company's continuing operation.

Management expects the Company to continue as a going-concern and the accompanying financial statements have been prepared on a going-concern basis without adjustment for realization in the event the Company ceases to continue as a going-concern.

#### **Note 8: SUBSEQUENT EVENTS**

The Company evaluated subsequent events through February 20, 2024, the date these financial statements were available to be issued. The Company is not aware of any additional significant events that occurred subsequent to the balance sheet date but prior to the filing of the report that would have a material impact on the financial statements.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.