# CHATHAM FINANCIAL SECURITIES LLC X-17A-5 (2025-03-26) — Broker-dealer annual report

- Company: CHATHAM FINANCIAL SECURITIES LLC
- Form: X-17A-5
- Filed: 2025-03-26
- Period: 2024-12-31
- Accession: 0001146341-25-000003
- CIK: 1146341
- File #: 8-53722
- Type: Broker-dealer
- Material weakness: No
- Auditor: MARCUM LLP
- Auditor location: DEEFIELD, IL
- Contact: JOE HOBAN
- Phone: 6464156143
- Email: jhoban@chathamfinancial.com
- Website: chathamfinancial.com
- Signed by: JOE HOBAN (CFO/CCO)

Original filing: https://www.sec.gov/Archives/edgar/data/1146341/000114634125000003/cfs2024public.pdf

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, O.C. 20549 ANNUAL REPORTS FORM X-17A-5 PART** Ill **FACING PAGE**  0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-53722 **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934**  FILING FOR THE PERIOD BEG INNING Ol/Ol/2024 MM/DD/YY AND ENDING \_\_ 1\_2\_/3\_1\_/2\_0\_2\_4 --- MM/DD/YY **A. REGISTRANT IDENTIFICATION**  NAME OF FIRM: \_c\_h\_a\_t\_h\_a\_m\_Fi\_n\_a\_n\_ci\_a\_l s\_e\_c\_u\_r\_it\_ie\_s\_L\_L\_c \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): [XI Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 515 W 33rd Street, Floor 67 (No. and Street) New York NY (City) {State) PERSON TO CONTACT WITH REGARD TO THIS FILING 10001 {Zip Code) Joe Hoban {Name) 646-415-6143 {Area Code - Telephone Number) jhoban@chathamfinancial.com (Email Address) **B. ACCOUNTANT IDENTIFICATION**  INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Marcum LLP 9 Parkway North, Suite 200 (Address) 10/16/2003 {Name - if individual, state last, first, and middle name) Deerfield IL {City) (State) **688**  60015 {Zip Code) **FOR OFFICIAL USE ONLY (PCAOB Reg;,t,atioo N, mbec, ;f appUca ble)** I \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent publ ic

accountant must be supported by a statement of facts and circumstances relied on as the ba sis of the exemption. See 17 CFR 240.17a-5(e){l)(ii), if applicable.

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.

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#### **OATH OR AFFIRMATION**

| I,<br>Joe Hoban                                                                                                                     | swear (or affirm) that, to the best of my knowledge and belief, the                        |  |  |  |
|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--|--|--|
| financial report pertaining to t he firm of                                                                                         | as of<br>Chatham Financial Securities LLC                                                  |  |  |  |
| December 31                                                                                                                         | 2mL, is true and correct. I further swear (or affirm) that neither the com<br>pany 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.                                                                                                              | Perla H. Bernstein<br>NOTARY PUBLIC -STATE OF NEW YORK                                     |  |  |  |

|            | NOTARY PUBLIC -STATE OF NEW YORK        |
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|            | No. 01 BE6287357                        |
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|            | Qualified in New Yor1< County           |
| \y,-i-l--- |                                         |
|            | My_ Co_m_mission Expires August 05, 20_ |
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Signatuce,~ Title: CF CO ~

Notary Public

**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.
- D (g) Notes to consolidated financial statements.
- D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l , 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) Reconci liations, 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-1, 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 appl icable.
- ~ (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.
- D (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:----------- --------------------- ---- ---
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- \*\*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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#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Member of Chatham Financial Securities, LLC

#### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of Chatham Financial Securities, LLC (the "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 the Company 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

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 the Company's auditor since 2018.

Deerfield, IL March 24, 2025

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# **Statement of Financial Condition December 31, 2024 Chatham Financial Securities LLC**

#### **Assets**

| Cash<br>\$                                       | -<br>\$ | 467,559 |
|--------------------------------------------------|---------|---------|
| Accounts receivable                              |         | 52,763  |
| Other                                            | -       | 2,150   |
| Total assets<br>\$                               |         | 522,472 |
| 0<br>Liabilities and Member's Equity             |         |         |
| Liabilities<br>\$                                | -<br>\$ | -       |
| Accounts payable and accrued expenses<br>\$<br>1 |         | 20,928  |
| Member's equity                                  |         |         |
| 0<br>Member's equity                             | -       | 501,544 |
| \$<br>Total liabilities and member's equity      |         | 522,472 |

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# **Chatham Financial Securities LLC Notes to Statement of Financial Condition December 31, 2024**

#### **Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

## *General*

Chatham Financial Securities LLC (the "Company") is a New York limited liability company headquartered in New York City. The Company's sole member is Chatham Financial EA Holdings LLC (the "Parent"). The Company is a registered broker-dealer in securities under the Securities and Exchange Act of 1934, a member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC").

The Company is engaged in business as a securities broker-dealer that provides several classes of services including advisory services, private placement of securities and firm commitment underwriting.

# *Summary of Significant Accounting Policies*

# *Use of Estimates*

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 disclosures 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.

# *Accounts Receivable*

The Company reviews the balance of accounts receivable outstanding at year end to determine if any are potentially uncollectible. At December 31, 2024, the Company had a receivable due from an underwriting syndicate which was deemed collectible.

# *Financial Instruments – Credit Losses*

The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, *Financial Instruments – Credit Losses*. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses

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# **Chatham Financial Securities LLC Notes to Statement of Financial Condition December 31, 2024**

as an allowance for credit losses. The Company estimates expected credit losses over the life of the financial assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts.

#### *Income Taxes*

The Company is a limited liability company and all taxable income or loss flows to its Parent. No provision or liability for Federal income taxes is included in the statement of financial condition.

# *Segment Reporting*

The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including advisory services, private placement of securities and firm commitment underwriting. The Company has identified its CEO and CFO 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. Additionally, 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 distribute profits to the parent. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Segment assets can be found in the Statement of Financial Condition.

# **Note 2: RELATED PARTY TRANSACTIONS**

The Company and its affiliate, Chatham Financial Corp. (the "affiliate"), through common ownership share personnel, administrative expenses, and office space. All costs incurred for such shared expenses are paid by the affiliate and reimbursed by the Company in accordance with an administrative services agreement. As of December 31, 2024, the Company owed \$19,400 to Chatham Financial Corp., which is included in accounts payable and accrued expenses on the Statement of Financial Condition.

The Company's expense for registered representatives is based on an allocation to base salaries and discretionary compensation. These amounts are remitted to the affiliate which is responsible for paying the registered representatives.

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# **Chatham Financial Securities LLC Notes to Statement of Financial Condition December 31, 2024**

# **Note 3: COMMITMENTS AND CONTINGENCIES**

#### *Litigation*

From time to time, the Company may be involved in ordinary routine litigation incidental to its business. Currently, there are no litigations against the Company.

During the normal course of business, the Company is subject to routine examinations by regulatory authorities. Currently, there are no outstanding examinations by regulatory authorities.

#### *Cash Concentration*

The Company maintains its cash balances with two financial institutions which, at times, may exceed insured limits. The Company has not experienced any losses due to these limits.

#### **Note 4: 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. At December 31, 2024, the Company had net capital of \$446,631 which was \$346,631 in excess of its required net capital of \$100,000; and the Company's ratio of aggregate indebtedness to net capital was 0.05 to 1.


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