# DRAKE STAR SECURITIES LLC X-17A-5 (2026-03-05) — Broker-dealer annual report - Company: DRAKE STAR SECURITIES LLC - Form: X-17A-5 - Filed: 2026-03-05 - Period: 2025-12-31 - Accession: 0001286439-26-000001 - CIK: 1286439 - File #: 8-66448 - Type: Broker-dealer - Material weakness: No - Auditor: WWC PC - Auditor location: San Mateo, CA - Contact: Kimberly Ryan - Phone: 248-224-8713 - Email: gregory.bedrosian@drakestar.com - Website: drakestar.com - Signed by: Gregory Bedrosian (Managing Partners and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1286439/000128643926000001/auditnonconfidential125.pdf --- {0}------------------------------------------------ ## Drake Star Securities LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 {1}------------------------------------------------ ## UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: SEC FILE NUMBER 3235-0123 Nov.30,2026 12 # ANNUAL REPORTS FORM X-17A-5 PART III A. REGISTRANT IDENTIFICATION 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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY 01/01/25 12/31/25 # 950 Third Avenue, 20th Floor | Drake Securities LLC | NAME OF FIRM: _______________________________________________________________________ | | | | |-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------------|--| | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
□
Check here if respondent is also an OTC derivatives dealer
□ | Security-based swap dealer
□ | Major security-based swap participant | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 950 Third Avenue, 20th Floor | | | | | | | _____________________________________________________________________________________
(No. and Street) | | | | | New York | NY
_____________________________________________________________________________________ | | 10022 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Gregory Bedrosian | 212-508-7111
_____________________________________________________________________________________ | | gregory.bedrosian@drakestar.com | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | | B.
ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | WWCP.C. | _____________________________________________________________________________________ | | | | | | (Name – if individual, state last, first, and middle name) | | | | | 2010 Pioneer Court | San Mateo
_____________________________________________________________________________________ | CA | 94403 | | | (Address) | (City) | (State) | (Zip Code) | | | 03/14/2004 | _____________________________________________________________________________________ | 1171 | | | | (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 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 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ ## OATH OR AFFIRMATION Gregory Bedrosian I, \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, swear (or affirm) that, to the best of my knowledge and belief, the Drake Star Securities LLC financial report pertaining to the firm of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, as of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 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. (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. **12/31** 025 Notary Public, State of Texas County of Montgomery 135131444 ~~ ~ 10/15/2028 Notary Public Jade Collins Electronically signed and notarized online using the Proof platform. # This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. I!!!!! - (b) Notes to consolidated statement of financial condition. I!!!!! - comprehensive income (as defined in § 210.1-02 of Regulation S-X). □ - (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. □ - □ - □ - □ - Exhibit A to 17 CFR 240.18a-4, as applicable. □ - (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. □ - □ - (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR □ - (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. (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-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. (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. (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. CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. 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. (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, \*\*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 □ - (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. □ - I!!!!! - □ - □ - (t) Independent public accountant's report based on an examination of the statement of financial condition. I!!!!! - (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 □ - (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 □ - □ - as applicable. □ - (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). □ - (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ □ - applicable. Signature: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Managing Partner & CEO ![](_page_2_Picture_41.jpeg) {3}------------------------------------------------ # Drake Star Securities LLC ## STATEMENT OF FINANCIAL CONDITION | Drake Star Securities LLC
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2025 | | |------------------------------------------------------------------------------------|--------------------------------------| | ASSETS
Cash
Accounts receivable | \$
4,446,376
94,549 | | Due from related party
Prepaid Expenses
Total assets | 830,814
50,563
\$
5,422,302 | | LIABILITIES AND MEMBER'S CAPITAL
Liabilities: | | | Accounts payable and accrued expenses
Deferred revenue | \$
780,532
70,000 | | Total liabilities | 850,532 | | Member's Equity (Note 4)
Total liabilities and Member's Equity | 4,571,770
\$
5,422,302 | The accompanying notes are an integral part of these financial statements. {4}------------------------------------------------ # Drake Star Securities LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025 ## Note 1- Nature of Business Drake Star Securities LLC (The Company), a Limited Liability Company, a wholly owned subsidiary of Drake Star Holding LLC (the Parent) is a broker/dealer registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). The Company provides strategic advisory services to technology, communications and media companies. Its primary services are private placement offerings and mergers and acquisitions. Note 2- Summary of Significant Accounting Policies The liability of the member is limited to its capital account. ## a) Revenue Recognition The Company provides advisory services on mergers and acquisitions. Revenue for advisory arrangements is recognized at the point in time that performance obligation under the arrangement is completed (the closing date of a merger, acquisition or fund-raising transaction) or the contract is cancelled. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities (deferred revenue in the accompanying statement of financial condition). Payment is due when services are performed. b) Disaggregation of Revenue The company tracks its advisory revenue based on the size of the advisory fee. | Category | Year ending December 31, 2025 | |----------------------------------|-------------------------------| | Deals \$1 to \$500,000 | \$1,722,863 | | Deals \$500,001 to \$1,000,000 | \$3,145,000 | | Deals \$1,000,001 to \$1,500,000 | \$2,275,000 | | Deals greater than \$1,500,000 | \$2,400,000 | ## c) Accounts Receivable Amounts due from customers arising from professional services are recorded at the outstanding amount, less allowance for losses. We regularly monitor the recoverability of our receivables. {5}------------------------------------------------ ## Drake Star Securities LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025 ## Note 2a- Summary of Significant Accounting Policies (continued) #### Cash and Cash Equivalents d) The Company considers money market funds to be cash equivalents. The Company maintains cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. For money market funds, no insurance is provided. Uninsured cash as of December 31, 2025, was \$4,446,376. #### Income Taxes *e)* Income taxes are not payable by, or provided for, the Company, since the Company is a Single Member Limited Liability Company. The accompanying financial statements have been adjusted to provide for unincorporated business tax based upon Company income, if applicable. #### Use of Estimates *J)* Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. ## Subsequent Events *g)* The Company has evaluated subsequent events through , 2026, which is the date the financial statements were issued. March 2 #### Adoption of new accounting standards *h)* The FASB issued (ASU) 2023-07, "Segment Reporting" (Topic 280) which increased disclosure requirements regarding a public entity's reporting segments effective for fiscal years beginning after December 15, 2023. ASU 2023-07 required incremental line-item disclosures about each reportable segment's expenses as well as profit and losses. The Company has evaluated the guidance there under and has determined that the Company operates as one reporting segment. For further discussion refer to Footnote 7, Reportable Segments #### Recently Issued Accounting Pronouncements *i)* In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires public business entities to provide additional disaggregated expense disclosures within the notes to financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures. {6}------------------------------------------------ # Drake Star Securities LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025 ## Note 3- Related Party Transaction The Company enters into transactions with a related party in the normal course of business. These transactions primarily include reimbursements of third-party expenses, conversions of related party balances into equity, and lease-related deposits. Unless otherwise contractually specified, related party balances are noninterest-bearing and payable on demand. The activity in the due from (due to) related party balance for the year ended December 31, 2025 is as follows: | Due from (Due to) Related Party – Movement | Amount | |--------------------------------------------------|-------------| | Beginning Balance – January 1, 2025 | (145,235) | | Add: | | | Cash transfers for shared expense reimbursements | 6,626,000 | | Conversion of related party loan to equity | 500,000 | | Deduct: | | | Repayments Received from Drake Star Holdings | (1,110,910) | | Expenses Paid by Related Party – Note 3a | (5,039,041) | | Ending Balance – December 31, 2025 | 830,814 | ## Note 3a-Shared Expense Allocation The Company shares employee, office space, administrative and occupancy expenses with a Related Party. The Company recognizes its shares of expenses by an agreed allocation ration based on general resource consumption determined by the Related Party. For the year ended December 31, 2025, the Related Party allocated approximately \$5,039,041 of such expenses to the Company. | Shared Expense Allocation | Amount | |-----------------------------------------------------------|-----------| | Employee compensation, benefits and related payroll taxes | 3,432,542 | | Professional fees and IT expenses | 581,964 | | Insurance | 551,476 | | Travel & entertainment | 218,974 | | Rent and occupancy | 199,968 | | Office expense | 28,792 | | Marketing | 25,325 | | Total | 5,039,041 | {7}------------------------------------------------ # Drake Star Securities LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025 ## Note 4- Net Capital Requirement The Company is subject to the Securities and Exchange Commissions Net Capital Rule (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 1500%. On December 31, 2025, the Companys net capital of \$3,595,844 was \$3,539,143 in excess of its required net capital of \$56,702. The Companys net capital ratio was 23.65%. ## Note 5- 401(k) Plan The Company offers a defined contribution 401(k)-benefit plan which allows employee contributions up to 15% of their pre-tax compensation. The Company matches 100% of the employees contributions up to 3% of their compensation and then 50% of an employees additional contributions, up to 5% of compensation. The employer matching contribution expense was \$67,799 for the year ending December 31, 2025. This expense was included as a component of employee compensation, benefits, and related payroll taxes in our statement of income for the year ending December 31, 2025. #### Note 6- Commitments and Contingencies None Noted ## Note 7 - Reportable Segments The company is engaged in a single line of business as a securities broker-dealer. The Company has identified its owner as the Chief Operation 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 4), which is a measure of liquidity and financial solvency, 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 CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure profit and loss of the segment are the same as those described in the summary of significant policies. ## Note 8 - Subsequent Events The Company has assessed all events from December 31, 2025, through , 2026, which is the date that this financial statement is available to be issued, and there are no material subsequent events that require disclosure in this financial statement. 2 **March** {8}------------------------------------------------ ![](_page_8_Picture_0.jpeg) **950 Third Avenue, 20th Floor New York, NY, 10022** **5 5** Basis for Opinion These financial statements are the responsibility of Drake Star Securities LLC's management. Our responsibility is to express an opinion on Drake Star Securities LLC's financial statements 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 Drake Star 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 statements are 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 statements, 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. We have served as Drake Star Securities LLC's auditor since 2022. WWC, P.C. , 202 **San Mateo, CA March2 6** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.