# ORCHARD SECURITIES, LLC X-17A-5 (2025-08-28) — Broker-dealer annual report - Company: ORCHARD SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-08-28 - Period: 2025-06-30 - Accession: 0001308103-25-000005 - CIK: 1308103 - File #: 8-66719 - Type: Broker-dealer - Material weakness: No - Auditor: Haynie & Company - Auditor location: Salt Lake City, UT - Contact: Adrienne Yost Hart - Phone: (215) 816-2800 - Email: ahart@orchardsecurities.com - Website: orchardsecurities.com - Signed by: Kevin C. Bradburn (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1308103/000130810325000005/OrchardPublic2025.pdf --- {0}------------------------------------------------ | ORCHARD SECURITIES, LLC | |-------------------------| | TABLE OF CONTENTS | | | Page | Annual Audited Report Form X-17A-5 Part III Facing Page | 1 | | | |-----------------------------------------------------------------|---|--|--| | Annual Audited Report Form X-17A-5 Part III Oath or Affirmation | | | | | | | | | | Report of Independent Registered Public Accounting Firm | 3 | | | | Financial Statements: | | | | | Statement of Financial Condition As of June 30, 2025 | 4 | | | | Notes to Financial Statements | 5 | | | Public {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | 8-66719 | | | | FACING PAGE | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|-----------------|-----------------------------|--| | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
7/1/2024
6/30/2025 | | | | | | | FILING FOR THE PERIOD BEGINNING | MM/DD/YY | AND ENDING | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: Orchard Securities, LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Major security-based swap participant
Broker-dealer ☐ Security-based swap 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.) | | | | | | | 365 Garden Grove Lane, Suite 100 | | | | | | | | (No. and Street) | | | | | | Pleasant Grove | Utah | | | 84062 | | | (City) | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Adrienne Yost Hart | (215) 816-2800 | | | ahart@orchardsecurities.com | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | Haynie & Company | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 1785 West 2300 South | Salt Lake Cty | | Utah | 84119 | | | (Address) | (City) | | (State) | (Zip Code) | | | 10/20/2003 | | 457 | | | | | (PCAOB Registration Number, if applicable)
(Date of Registration with PCAOB)(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 I, Kevin C. Bradburn swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Orchard Securities, LLC as of June 30 2025, 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. ![](_page_2_Picture_3.jpeg) | Chief Executive Officer | | |-------------------------|--| Ganecin Baster - 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). - (d) Statement of cash flows. - 미 (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. - 미 (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. - (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. - (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. - ☐ (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. - (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. - ㅁ (t) Independent public accountant's report based on an examination of the statement of financial condition. - (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. - (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. - (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - 미 (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: - \*\*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. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 1785 West 2320 South Salt Lake City, UT 84119 801-972-4800 801-972-8941 www.HaynieCPAs.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Orchard Securities, LLC ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Orchard Securities, LLC as of June 30, 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 Orchard Securities, LLC as of June 30, 2025 in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion to This financial statement is the responsibility of Orchard Securities, LLC's management. Our responsibility is express an opinion on Orchard 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 Orchard 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 РСАОВ. 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. Hayie & Cosany Haynie & Company Salt Lake City, Utah August 27, 2025 We have served as Orchard Securities, LLC's auditor since 2023. {4}------------------------------------------------ # ORCHARD SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION YEAR ENDED JUNE 30, 2025 # ASSETS | Current Assets | | |---------------------------------------|---------------| | Cash and Cash Equivalents | \$
534,956 | | Accounts Receivable, Net | 1,062,481 | | Receivables from Related Parties | 27,041 | | Other Current Assets | 792 | | Total Current Assets | 1,625,270 | | Fixed Assets | | | Office Equipment | 41,121 | | Software | 580,000 | | Accumulated Amortization/Depreciation | (389,121) | | Total Fixed Assets | 232,000 | | Other Assets | | | Goodwill | 55,000 | | Total Other Assets | 55,000 | | TOTAL ASSETS | \$ 1,912,270 | | LIABILITIES AND MEMBERS' EQUITY | | | Current Liabilities | | | Accounts Payable | \$
41,087 | | Payables to Related Parties | 113,379 | | Total Liabilities | 154.466 | | Members' Equity | 1,757,804 | | Total Liabilities and Members' Equity | \$ 1.912,270 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # ORCHARD SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 # Note 1- Organization and Description of Business # General Orchard Securities, LLC ("Company"), a Utah limited liability company, is organized and registered to engage in securities business as a broker-dealer in all 50 states and the District of Columbia under the Securities Exchange Act of 1933, as amended. The Company is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), the Securities Investor Protection Corporation, and is registered with the United States Securities & Exchange Commission ("SEC"). The owner of the Company purchased an existing broker-dealer in March 2006, and as an equity contribution, contributed all membership interests in the purchased broker-dealer to the Company. Formal approval to operate as a broker-dealer and to conduct securities business as the newly formed brokerdealer was granted from FINRA on October 3, 2006 and from the State of Utah on October 12, 2006. As an LLC, the equity structure is similar to a partnership while the owners/members are afforded legal liability protection similar to a corporation. The Company is primarily engaged in providing underwriting services related to the private placement of real estate securities. # Note 2- Summary of Significant Accounting Policies # Recently Adopted Accounting Pronouncements Beginning with the 2025 annual reporting, the Company adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards Board (FASB). This new standard requires an enhanced disclosure of significant segment expenses on an annual basis. Discussion of the impact of this change is provided below as well as additional information relevant to the preparation of these financial statements. It should be noted that the operating activities of the Company involve two distinct business segments: managing broker-dealer activities and related services and Central Trade & Transfer, LLC's auction-based secondary market trading platform for certain non-traded securities. # Operating Segments and Related Disclosures As noted above, the Company operates two reportable operating segments: managing broker-dealer activities and related services and Central Trade & Transfer, LLC. The strategy and business decisions related to the activities of the Company are made by the three principals who, through certain limited liability companies, control the ownership of the Company. These three persons are Mr. Kevin Bradburn, Mr. Taylor Garrett and Mr. Cameron Hellewell, collectively the Company's Chief Operating Decision Maker ("CODM"). They are engaged on a continuous basis in considering the activities of the two operating segments of the Company. Identified concentrations relating to revenue are stated below under Concentrations and are related to the managing broker dealer activities. The Company does not allocate assets to operating segments for review by the chief operating decision maker. There are no transactions for which the Company financially supports any operating segment. A summary of the revenues and expenses for each operating segment for the 2025 fiscal year are provided below: {6}------------------------------------------------ | | Managing Broker | Central | | |-----------------------------------|-------------------|------------------|---------------| | | Dealer Activities | Trade & Transfer | Total | | Revenues | | | | | Commissions | \$ 31,608,283 | \$2,181,944 | \$ 33,790,227 | | Underwriting and Selling Group | 18,616,210 | | 18,616,210 | | Maintenance Fee Income | 2,637,694 | | 2,637,694 | | Marketing Income | 510,193 | | 510,193 | | Interest Income | 243 | | 243 | | | | | | | Total Revenues | 53.372.623 | 2.181.944 | 55.554.567 | | Expenses | | | | | Selling Group Commissions | 31,419,527 | | 31,419,527 | | Wholesaler Fees | 12,490,555 | | 12,490,555 | | Professional Fees | 7,233,551 | | 7,233,551 | | Commissions | 406,950 | 1,963,750 | 2,370,700 | | Office Overhead and Operating | 1,230,929 | | 1,230,929 | | Compensation and Related Benefits | 553,610 | | 553,610 | | Licensing and Registration | 181,340 | | 181,340 | | Depreciation/Amortization | 123,000 | | 123,000 | | Bad Debt | 281.275 | | 281,275 | | | | | | | Total Expenses | 53.920.737 | 1.963.750 | 55.884.487 | | | | | | | Net Loss | \$ (548,114) | \$ 218,194 | \$ (329.920) | #### Basis of Presentation and Use of Estimates The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required 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 revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from those estimates. #### Recognition of Revenues and Expenses Revenues and expenses are recorded when all significant items relating to the securities transactions have been completed and the income is reasonably determinable. The Company uses the accrual method of accounting. The Company does not participate in any proprietary securities transactions. {7}------------------------------------------------ ### Commissions The Company's accounting policy is to recognize revenue from broker-dealer sales commissions received when the following criteria are met: (1) contract with the customer has been identified, (2) performance of the obligations in the contract have been identified; (3) transaction price has been determined; (4) transaction price has been appropriately tied to the performance obligations; (5) performance obligations are satisfied; and (6) the applicable closing has occurred which is related to the revenue. # Underwriting and Selling The Company's accounting policy is to recognize revenue from underwriting and selling when the following criteria are met: (1) contract with the customer has been identified, (2) performance of the obligations in the contract have been identified; (3) transaction price has been determined; (4) transaction price has been appropriately tied to the performance obligations; (5) performance obligations are satisfied; and (6) the applicable closing has occurred which is related to the revenue. #### Maintenance Fees With respect to maintenance fees, the Company will recognize such revenue when the following criteria are met: (1) contract with the customer has been identified, (2) performance of the obligations in the contract have been identified; (3) transaction price has been determined; (4) transaction price has been appropriately tied to the performance obligations; (5) performance obligations are satisfied; (6) the applicable closing has occurred which is related to the revenue, and (7) all contingencies and other obstacles to payment have been cleared. #### Marketing Income With respect to marketing income, from time to time the Company will enter into agreements with its customers to provide marketing services that may include the performance of due diligence activities and research services. The Company will recognize such revenue when the obligation to perform such services has been completed, and transactions qualifying the Company to receive the same have been completed. #### Concentrations If the financial condition or operations of the Company's customers deteriorate, the risks associated with selling on credit could increase substantially. As of June 30, 2025, four customers accounted for 72% of the Company's gross accounts receivable and two customers accounted for 38% of the Company's total revenue. The Company does not require collateral or other security to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers' financial condition. The Company maintains allowances for potential credit losses. #### Cash and Cash Equivalents For purposes of the statements of financial condition, the Company considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Cash consists of bank deposits with one FDIC-insured institution and one NCUA-insured institution. At June 30, 2025 the Company had \$239,653 bank deposits in excess of FDIC limits. #### Accounts Receivable Accounts receivable are amounts due for expenses paid by the Company on behalf of other parties and for services provided. The Company regularly reviews its accounts receivable and makes provisions for potentially uncollectible balances. For 2025, the Company adopted the Aging Method to determine collectability. At June 30, 2025, management evaluated the collectability of the receivables and determined \$285,019 of the receivables were not collectible and an allowance was recorded. #### Office Equipment Office equipment is carried at cost. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of equipment, which range between three and seven years. Depreciation for the year ended June 30, 2025 was \$O. {8}------------------------------------------------ #### Intangible Assets During the current fiscal year, software improvements were purchased for \$90,000 increasing total capitalized software improvements to \$580,000 and amortized at \$123,000 for the fiscal year end. Amortization is computed using the straight-line method over a 5 year amortization period. # Advertising Expense Advertising expenses are expensed as incurred. The Company's advertising expense was \$6,235 for the year ending June 30, 2025. These costs are included in Office Overhead and Operating expenses. ### Rent Expense The Company's rent expense for its office space was \$68,714 for the year ending June 30, 2025. The Company continues a rental agreement with Summit Fulfillment Services, a related party, on a month-tomonth agreement. As such, the effects of ASC 2016-02 Topic 842, Leases, is not applicable to the Company. #### Goodwill Goodwill represents the excess of the amount paid over the fair market value of net assets acquired in a business combination. In accordance with accounting standards, goodwill and other indefinite lived intangible assets are no longer amortized but are reviewed annually for impairment. As of June 30, 2025 the Company deemed no impairment of goodwill. #### Income Taxes The Company is taxed as a limited liability company, and as such, all profits and losses are passed through to the individual members. However, the Company records and pays state franchise taxes and other required taxes to CA, CO, CT, IL and TN annually as recorded in the financial statements. The Company follows the provisions of FASB Accounting Standards Codification (ASC) Subtopic 740-10 Accounting for Uncertainty in Income Taxes. For June 30, 2025 management has determined that there are no material uncertain income tax provisions. #### Financial Instruments Financial Instruments include accounts receivable and accounts payable. Management estimates that the carrying amount of these financial instruments represents their fair values, which were determined by their near-term nature or by comparable financial instruments' market value. #### Note 3- Related Party Transactions As of June 30, 2025 the amounts due from the related parties owned by shareholders was \$27,041 and is contained in the "Receivables from Related parties" on the Statements of Financial Condition. As of June 30, 2025 the Company paid Wholesaling Fees, Commissions, and Professional Fees to related parties in the amount of \$11,455,284. As of June 30, 2025 amounts due to related parties owned by shareholders totaled \$113,379 derived from Wholesaling Fees, and is contained in the "Payables to Related Parties" on the Statement of Financial Condition. #### Note 4- Goodwill As stated in Note 1, during 2006 the owners of the Company purchased an unrelated broker-dealer registered with the NASD. Upon close of the purchase, the ownership interest was transferred to the Company. After the NASD approved the transfer of registration from the purchased broker-dealer to the Company, the purchased broker-dealer was dissolved. The entire purchase price of \$55,000 was allocated to goodwill since the purchased broker-dealer had no tangible assets on the date of the purchase. #### Note 5- Net Capital Requirements The Company is subject to the SEC Uniform 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, {9}------------------------------------------------ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.