# COLCHESTER PARTNERS LLC X-17A-5 (2026-03-31) — Broker-dealer annual report - Company: COLCHESTER PARTNERS LLC - Form: X-17A-5 - Filed: 2026-03-31 - Period: 2025-12-31 - Accession: 0001178449-26-000004 - CIK: 1178449 - File #: 8-65464 - Type: Broker-dealer - Material weakness: No - Auditor: Gray, Gray, & Gray, LLP - Auditor location: Canton, MA - Contact: Eric R Andrew - Phone: 6178960202 - Email: eandrew@colchesterpartners.com - Website: colchesterpartners.com - Signed by: Eric R Andrew (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1178449/000117844926000004/cp2025sofcpub1.pdf --- {0}------------------------------------------------ ### 16#-\*\$ | 8-65464 | | |---------|--| | | | 01/01/2025 | 12/31/2025 | | | | |----------------------------|--------------------------|--------------|------------|----|--------------------------------|--| | | | | | | | | | | | | | | | | | | Colchester Partners, LLC | | | | | | | ■ | | | | | | | | | | | | | | | | 53 State Street Suite 1304 | | | | | | | | | | | | | | | | Boston | | MA | | | 02109 | | | | | | | | | | | | | | | | | | | Eric Andrew | | 617-896-0202 | | | eandrew@colchesterpartners.com | | | | | | | | | | | | | | | | | | | Gray, Gray, & Gray, LLP | | | | | | | | | | | | | | | | 150 Royall St., Suite 102 | | Canton | | MA | 02021 | | | | | | | | | | | | | | | | | | | | | | | | | | {1}------------------------------------------------ ![](_page_1_Picture_4.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ Statement of Financial Condition For the Year Ended December 31, 2025 (With Independent Auditors' Report Thereon) {3}------------------------------------------------ Audited Statement of Financial Condition For the Year Ended December 31, 2025 # **CONTENTS** | | Page | |------------------------------------------------------------|-------| | REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM | 1 | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3 – 8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Colchester Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Colchester Partners, LLC as of December 31, 2025, 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 Colchester Partners, 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 Colchester Partners, LLC's management. Our responsibility is to express an opinion on Colchester Partners, 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 Colchester Partners, 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 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 for our opinion. #### **Gray, Gray & Gray, LLP** We have served as Colchester Partners, LLC's auditor since 2025. Canton, MA March 20, 2026 {5}------------------------------------------------ #### Statement of Financial Condition #### December 31, 2025 #### Assets | Current assets: | | |-------------------------------------------------------|-----------------| | Cash and cash equivalents | \$
2,418,006 | | Accounts receivable | 12,960 | | Contract assets - reimbursed expenses, less allowance | | | for credit losses of \$3,425 | 23,075 | | Total current assets | 2,454,041 | | Equipment and improvements: | | | Computer equipment | 36,406 | | Office equipment | 49,399 | | Furniture and fixtures | 112,955 | | Leasehold improvements | 68,597 | | Total equipment and improvements, cost | 267,357 | | Less accumulated depreciation | (175,964) | | Total equipment and improvements, net | 91,393 | | Other assets: | | | Rent deposits | 123,726 | | Operating lease right-of-use asset | 1,451,837 | | Total other assets | 1,575,563 | | Total assets | \$
4,120,997 | | Liabilities and Members' Equity | | | | | | Current liabilities: | | | Accounts payable and accrued expenses | \$
33,000 | | Operating lease liability | 489,319 | | Deferred revenue | 485,000 | | Total current liabilities | 1,007,319 | | Operating lease liability, net of current portion | 1,198,764 | | Total liabilities | 2,206,083 | | Members' equity | 1,914,914 | | Total liabilities and members' equity | \$
4,120,997 | *See report of independent registered public accounting firm and notes to the financial statements.* {6}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 # (1) Nature of Business Colchester Partners, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of Financial Industry Regulatory Authority ("FINRA"). The Company is an investment banking and strategic advisory firm organized to serve the needs of investment management organizations and their professionals throughout the United States of America. # (2) Summary of Significant Accounting Policies # (a) Use of Estimates The preparation of financial statements and related disclosures 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, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. Actual results could differ from those estimates. # (b) Revenue Recognition The Company adheres to the guidance under Accounting Standards Codification Topic 606, *Revenue from Contracts with Customers* ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. The Company provides corporate advisory services. Revenue for advisory arrangements is generally recognized at a 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 arrangements 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 {7}------------------------------------------------ Notes to Financial Statements ## December 31, 2025 received from customers prior to recognizing revenue are reflected as contract liabilities on the statement of financial condition. # (c) Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, reimbursed expenses (contract assets), and deferred revenue (contract liabilities) on the statement of financial condition. The beginning and ending contract balances were as follows: | | December 31, | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------|----|----------------------|--| | | 2025 | | | 2024 | | | Accounts receivable | \$ | 12,960 | \$ | 63,300 | | | Contract assets - reimbursed expenses | \$ | 26,500 | \$ | 43,125 | | | Contract liabilties - deferred revenue | \$ | 485,000 | \$ | 355,000 | | | Beginning contract liabilities, Januray 1, 2025
Revenue recognized from beginning contract liabilities
Increase in contract liabilities due to cash received | | | | 355,000
(140,000) | | | during the period
Ending contract liabilities, December 31, 2025 | | | \$ | 270,000
485,000 | | # (d) Cash and Cash Equivalents The Company considers all liquid investment instruments with original maturities of ninety days or less to be cash equivalents. Cash equivalents are carried at cost, which approximates market value. # (e) Concentrations of Credit Risk The Company maintains its cash in a commercial bank. The balances are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At times during the year ended December 31, 2025 balances in deposit accounts exceeded FDIC {8}------------------------------------------------ ## Notes to Financial Statements ## December 31, 2025 insured limits. The Company monitors its exposure and has not experienced any losses in such accounts. Concentration of credit risk related to trade accounts receivable is limited due to a client base of companies and individuals with high net worth. The Company performs credit evaluations of its clients' financial condition and does not require collateral, since management does not anticipate nonperformance of payment. ### (f) Fair Value All current assets and current liabilities, because of their short-term nature, are stated at cost or face value, which approximates market value. ### (g) Equipment and Improvements Equipment and improvements are stated at cost. Depreciation and amortization are computed principally using the straight-line method over the estimated economic or useful lives of the applicable assets, which range from 3 to 7 years. Leasehold improvements are amortized over the lesser of the remaining life of the lease or the useful life of the improvements. The cost of maintenance and repairs are expensed as incurred. Depreciation for the Company related to equipment and improvements was \$34,409 for December 31, 2025. #### (h) Leases Accounting Standards Update ("ASU") 2016-02, *Leases* ("ASC 842"), requires an entity to recognize right-of-use assets and lease obligations on its statement of financial condition for all finance and or operating leases with a lease term of more than 12 months. Short-term rentals under year-to-year leases or with lease terms of 12 months or less are exempt from being capitalized. Leases are classified as finance leases when the Company expects to consume a major part of the economic benefits of the leased assets over the remaining lease term. Conversely, the Company is not expected to consume a major part of the economic benefits of assets classified as operating leases. The lease classification affects both the pattern and presentation of expense recognized in the statement of income, statement of changes in members' equity, the categorization of assets and liabilities in the statement of financial condition, and classification of cash flows in the statement of cash flows. {9}------------------------------------------------ Notes to Financial Statements ### December 31, 2025 The Company has made an accounting policy election to use a risk-free rate as the discount rate in measuring its lease obligations. Under this election, the risk-free rate used is the United States Treasury instrument with a term consistent with the remaining lease term of an applicable lease. Total lease cost consists of two components: amortization expense related to the write-off of right-of-use assets, and interest expense from lease obligations. For financing leases, total lease cost is recorded on an accelerated basis whereby interest expense is recorded using the effective interest method and right-of-use assets are amortized on a straight-line basis over the remaining lease term. For operating leases, total lease cost is measured and recorded on a straight-line basis over the lease term. Lease obligations are measured and recorded at the present value of future lease payments using a discount rate. Right-of-use assets are generally measured and recorded at the sum of the lease obligation, any initial direct costs to consummate the lease, and any lease payments made on or before the commencement date. # (3) Accounts Receivable and Allowance for Credit Losses The Company's accounts receivable are client obligations due under normal trade terms carried at cost, less allowance for credit losses. The Company evaluates the carrying amount of its accounts receivable on an ongoing basis and establishes a valuation allowance based on a number of factors, including specific client circumstances, historical rate of write-offs, the past due status of the accounts and reasonable and supportable forecasts that affect the collectability of the reported amount. At the end of each reporting period, the allowance is reviewed and analyzed for adequacy, and if relevant, is adjusted accordingly. The allowance is increased through a reduction of revenues and/or an increase in bad debt expense. At December 31, 2025, management recorded an allowance for credit losses of \$3,425. The reconciliation of allowance for credit losses are as follows: {10}------------------------------------------------ #### Notes to Financial Statements #### December 31, 2025 | Beginning balance, Januray 1, 2025 | \$
24,895 | |------------------------------------|--------------| | Provision for credit losses | - | | Write-offs | (21,470) | | Recoveries | - | | Ending balance, December 31, 2025 | \$
3,425 | ### (4) Leases The Company has two operating leases for office space located in Boston and New York City. The leases have remaining lease terms of 3.5 years and 2.5 years, respectively. The company recorded security deposits of \$56,859 and \$66,867, respectively, as of December 31, 2025. The following summarizes the line items in the statement of financial condition which include amounts for operating leases as of December 31, 2025: | Operating lease right-of-use-assets | \$
1,451,837 | |-------------------------------------|-----------------| | Operating lease liabilities | \$
1,688,083 | The following summarizes the weighted average remaining lease term and discount rate as of December 31, 2025: | Weighted Average Remaining Lease Term
Operating leases | 3.22 years | |-----------------------------------------------------------|------------| | Weighted Average Discount Rate
Operating leases | 4.49% | The following summarizes the line items in the income statement which include the components of lease expense for the year ended December 31, 2025: | Operating lease expense included in operating expenses | \$ | 521,002 | |--------------------------------------------------------|----|---------| | | | | The following summarizes cash flow information related to leases for the year ended December 31, 2025: {11}------------------------------------------------ | Cash paid for amounts included in the measurement of | | |------------------------------------------------------|---------------| | lease liabilities: | | | Operating cash flows from operating leases | \$
546,871 | Rent expense for the year ended December 31, 2025 was \$521,002. The lease asset and liability were calculated using a discount rate of 4.64% for Boston and 4.13% for New York City. The maturities of the lease liability as of December 31, 2025 are as follows: | Year Ended December 31, | Amount | | |----------------------------------|--------|-----------| | | | | | 2026 | \$ | 553,229 | | 2027 | | 560,276 | | 2028 | | 483,878 | | 2029 | | 217,257 | | Total lease payments | | 1,814,640 | | Less: interest | | (126,557) | | Present value of lease liability | \$ | 1,688,083 | ## (5) Commitments and Contingencies The Company may from time to time become involved in various legal proceedings, litigation and threatened litigation arising in the ordinary course of business. As of the date of these financial statements, there are no legal proceedings or similar matters, which individually or in the aggregate have a material effect on net capital, the financial position, results of operations or cash flows of the company. #### (6) Subsequent Events Management has evaluated subsequent events through March 20, 2026, the date on which the financial statements were available to be issued. No events occurred subsequent to the statement of financial condition date that would require adjustment to or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.