# RICHARDS, MERRILL & PETERSON, INC. X-17A-5 (2026-02-27) — Broker-dealer annual report - Company: RICHARDS, MERRILL & PETERSON, INC. - Form: X-17A-5 - Filed: 2026-02-27 - Period: 2025-12-31 - Accession: 0001398344-26-004002 - CIK: 90108 - File #: 8-00071 - Type: Broker-dealer - Material weakness: No - Auditor: BAKER TILLY (FORMERLY MOSS ADAMS) - Contact: TOM MCDONALD - Phone: 509-624-3174 - Email: tmcdonald@rmpinvest.com - Website: rmpinvest.com - Signed by: MARK J CALKINS (PRESIDENT) Original filing: https://www.sec.gov/Archives/edgar/data/90108/000139834426004002/fp0097800-1_x17a5.pdf --- {0}------------------------------------------------ OMB APPROVAL UNITED STATES OMB Number: 3235-0123 SECURITIES AND EXCHANGE COMMISSION Expires: Nov. 30, 2026 Washington, D.C. 20549 Estimated average burden hours per response: ANNUAL REPORTS SEC FILE NUMBER FORM X-17A-5 8-00071 PART III FACING PAGE information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING 12/31/25 filing for the period beginning 01/01/25 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: RICHARDS MERRILL WEALTH MANAGEMENT TYPE OF REGISTRANT (check all applicable boxes): O Major security-based swap participant E Broker-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.) 612 WEST MAIN STREET SUITE 201 (No. and Street) 99201 SPOKANE WA (Zip Code) (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 509-624-3174 TOM MCDONALD tmcdonald@rmpinvest.com (Area Code - Telephone Number) (Email Address) (Name) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* BAKER TILLY (FORMERLY MOSS ADAMS) (Name – if individual, state last, first, and middle name) 601 WEST RIVERSIDE AVE SUITE 1800 SPOKANE WA 99201 (Address) (City) (State) (Zip Code) 10/22/2003 23 (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 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){i}, 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. {1}------------------------------------------------ #### OATH OR AFFIRMATION | | MARK J CALKINS | ______________________________________________________________________________________________________________________________________________________________________________ | , swear (or affirm) that, to the best of my knowledge and belief, the | | | | |--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | | financial report pertaining to the firm of ___________________________________________________________________________________________________________________________________ | | . as of | | | | | | 12/31 | | 2 025 | | | | | | | | partner, officer, director, or eguivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | | as that of a customer. | TOM MCDONALD | | | | | | | | Notary Public | Signature: | | | | | | | State of Washington | | | | | | | | Commission # 69201
My Comm. Expires Sep 20, 2027 | Title: | | | | | | | | PRESIDENT | | | | | | | | | | | | | | Notary Public | | | | | | | | | | | | | | | | This filing** contains (check all applicable boxes): | | | | | | | | (a) Statement of financial condition. | | | | | | | | = (b) Notes to consolidated statement of financial condition. | | | | | | | | | | 国 (c) Statement of income (loss) or, if there is other comprehensive 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. | | | | | | | | ڪ (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. | | | | | | | | | | | | | | | | LJ (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.
(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. | | | | | | | | | | | | | | | | L (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. | | | | | | | | | ട് (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-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. | | | | | | | | [] (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | ■ (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, 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. | | | | | | | | [] {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 statements under 17 | | | | | | | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | | | | | - CFR 240.778-3, 17 CN 240.186 7, or 17 Cri 2 1621 a 25, and approaders [] {v] Independent public accountant's report based on an examination of certain statements in the compl CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - CH 240.17a-5 of 17 CFF 240.106 7) as opplication [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. - CFR 240.Loa-7, as applicable. (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - as applicable. [] (y) Report describing any material inadequacies found to 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. {2}------------------------------------------------ Compliance Report [SEA Rule 17a-5(d)(3)] AND Independent Public Accountant's Examination of the Compliance Report AND Computation of Determination of the Reserve Requirements [SEA Rule 17a-5(d)(2){ii)] AND Reconciliation of Computation of the Reserve Requirements Under Exhibit A of SEA Rule 15c3-3 or Applicable Statement [SEA Rule 17a-5(d)(2)(iii)) AND Information Relating to the Possession or Control Requirements Under SEA Rule 15c3-3 [SEA Rule 17a-5(d)(2)(ii)] The items below may be required based on the business of the firm. Please check to indicate the document is attached. T :Statement of Changes in Liabilities Subordinated to Claims of General Creditors [SEA Rule 17a-5(d)(2)(0)] T For Dual FINRA/CFTC Members which are FCMs, a Schedule of Customer Segregated Funds FiFor Alternative Net Capital (ANC) Filers, Supplemental Report on Management Controls [SEA Rule 17a-5(k)] Attach Audit:\* {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management (the Company) as of December 31, 2025, the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes (collectively, referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 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 statements are 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 statements, whether due to error or fraud, and performing procedures to 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. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of Baker Tilly International Ltd., the members of which are separate and independent legal enlities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisidiary entilies provide lax and consulting services to their clients and are not licensed CPA firms. {4}------------------------------------------------ #### Opinion on the Supplemental Information The supplemental information in Schedules I has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The information in Schedules I is the responsibility of the Company's management. Our audit procedures include determining whether the information in Schedules I reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in Schedules I. In forming our opinion on the information in Schedules I, we evaluated whether the information in Schedules I, including its form and content is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the information in Schedules I is fairly stated in all material respects in relation to the financial statements as a whole. Eaker Tilly US, bl Spokane, Washington February 25, 2026 We have served as the Company's auditor since 2003. {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of ro the Boura of Birover Streetson, Inc. dba Richards Merrill Wealth Management We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act we have performed the procedures moration Corporation ("SIPC") Series 600 Rules, which are of 1934 and in the Securities Investor Protection Corporation ("Serm SIP"). To the of 1934 and in the Securities Invostor Pressueral Assessment Reconciliation (Form SIPC-7) for the enumerated below on the dooompanying our rill, and Peterson, Inc. dba Richards, and year ended December 31, 2020. Management of Rish Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are Management of the Company has aground and SIPC in evaluating the appropriate to meet the interractions on Form SIPC-7 for the year ended Company's compliance with the upplicable station worknowledged that the procedures December 31, 2023. Addilionally, Off Online May not be suitable for any other performed are appropriate to files their parposoer mis research a user of this report purpose. The procedures portomed may withis report and, as such, users are responsible for and may not heet the needs of the sperformed are appropriate for their purposes. The sufficiency of determining whether the procedures portormed are appropried in this report. Consequently, we these procedures is solery the respensibility of the procedures described below either for make no representation regulaing in the purpose for which this report has been requested or for any other purpose. As agreed by the specified parties in this report, for purposes of performing procedures 1, 4, and 5 As agreed by the specifica particult in the reported for dess. For purposes of performing below, no exceptions were reported to ........................................................................................................................................ The procedures we performed and our findings are as follows: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no exceptions. - records entifies, noting no exceptions: 2. Compared the Total Revenue amounts reported on the Report Form X-17A-5 Compared the Total Nevenue and I specific in the Total Revenue amounts reported in Form I art miler the year ended December 31, 2025, noting no exceptions. - SIPC-7 for the year ended Dobeniber on, a 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no exceptions. - papers, Tibling To Cxcoptions: 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SPC-7 and in the Recalculated the and working papers supporting the adjustments, noting no exceptions. - Telated Schedules and wonking papers supplied to the current assessment with the Form. 5. Compared the amount of any overpayment applied to the current assessment wi IPC-7 on which it was originally computed, noting no exceptions. Baker Tilly Advisory Group. LP and Baker Tilly are members of the girbal newslon of Baker Tilly US, LLP is a neersed CPA im Baker Tily Advisory Group. LP and LLP (rading as Battlers) Intenational Ltd. the members of vish and meepelben elgal engle engles my of the many of the management of the monthing services provides assurance services to its the to their clients and are not licensed CPA firms. {6}------------------------------------------------ We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the standards of the Public Company Accounting Oversight Board (United States). An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed. We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC -7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. Spokane, Washington February 25, 2026 {7}------------------------------------------------ Report of Independent Registered Public Accounting Firm and Financial Statements with Supplemental Information for Richards, Merrill & Peterson, Inc. DBA Richards Merrill Wealth Management December 31, 2025 {8}------------------------------------------------ # CONTENTS | | PAGE | |--------------------------------------------------------------------------------------------|------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 2 | | FINANCIAL STATEMENTS | | | Statement of financial condition | 3 | | Statement of income | ব | | Statement of changes in stockholders' equity | ഗ | | Statement of cash flows | 6 | | Notes to financial statements | 7-11 | | SUPPLEMENTAL INFORMATION | | | Schedule I - Computation of net capital under Securities & Exchange Commission Rule 15c3-1 | | {9}------------------------------------------------ # RICHARDS MERRILL WEALTH MANAGEMENT STATEMENT OF FINANCIAL CONDITION ASSETS | | December 31,
2025 | |------------------------------------------------------------------------------|----------------------| | Cash | ಕ್ಕಾ
1,008,972 | | Receivable from clearing organization | 602,871 | | Right of use asset - operating lease, net | 726,845 | | Furniture and equipment, at cost, less accumulated depreciation of \$124,197 | 79,110 | | Federal income tax receivable | 60,888 | | Prepaid expenses | 14,938 | | Deposit with clearing organization | 100,000 | | | 2,593,624
સ્ત્ર | | Total assets | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | LIABILITIES | | | Accounts payable and accrued liabilities | 2,100 | | Operating lease liability | 762,027 | | Deferred revenue | 1,225,000 | | Deferred income taxes | 8,439 | | Total liabilities | 1,997,566 | | STOCKHOLDERS' EQUITY | | | Common stock \$1 par value; 50,000 shares authorized; | | | 600 shares issued and outstanding | 600 | | Additional paid-in capital | 79,692 | | Retained earnings | 515,766 | | Total stockholders' equity | 596,058 | | Total liabilities and stockholders' equity | 2,593,624 | {10}------------------------------------------------ # RICHARDS MERRILL WEALTH MANAGEMENT STATEMENT OF INCOME | | Year Ended
December 31,
2025 | |----------------------------------|------------------------------------| | REVENUES | | | Commission income | \$ 3,489,315 | | Investment advisory fee income | 3,475,637 | | Amortization of deferred revenue | 275,000 | | | 7,239,952 | | EXPENSES | | | Commissions | 4,684,365 | | Employee compensation | 1,371,977 | | Service provider charges | 262,637 | | Professional services | 346,884 | | Occupancy | 155,802 | | Sales expenses | 64,547 | | Communications | 30,506 | | Subscriptions | 24,227 | | Taxes other than income taxes | 150,234 | | Regulatory fees | 74,504 | | Quotation services | 41,392 | | Other operating expenses | 71,647 | | | 7,278,722 | | Income from operations | (38,770) | | OTHER INCOME | | | Interest income | 36,286 | | Other | 16,254 | | Income before income tax | 13,770 | | Income tax expense | | | Current | 896 | | Deferred | 3,095 | | | 3,991 | | Net income | સ્ક્ર
9,779 | {11}------------------------------------------------ # RICHARDS MERRILL WEALTH MANAGEMENT STATEMENT CHANGES IN STOCKHOLDERS' EQUITY | | | | | Additional | | | | | |--------------------------------|--------|-----------------|-------|--------------------|-------|----------------------|------|---------| | | | Common
Stock | | Paid-In
Capital | | Retained
Earnings | | Total | | | | | | | | | | | | Balance, December 31, 2024 | સ્ત્ર | 600 | ക | 84.400 | સ્ત્ર | 556,968 | చి | 641,968 | | Common stock sold | સ્ક્ર | (44) | ക | (51,786) | | | ಕ್ಕೆ | (51,830 | | Common stock repurchased | ಕ್ಕಿ | 44 | ન્ત્ર | 47,078 | | | \$ | 47,122 | | Net income | | | | | | 9,779 | | 9,779 | | Dividends paid to stockholders | | | | | | (50,981) | | (50,981 | | Balance, December 31, 2025 | સ્ત્રે | 600 | | \$ 79,692 | ಕ್ಕೆ | 515,766 | ਦੇ | 596,058 | {12}------------------------------------------------ | | Year Ended | |------------------------------------------------------|-------------------| | | December 31. | | | 2025 | | CASH FLOWS FROM OPERATING ACTIVITIES | | | Net income | ಕ್ಕಾ
9,779 | | Adjustments to reconcile net income to net cash | | | from operating activities | | | Depreciation expense | 25,720 | | Change in assets and liabilities | | | Received from clearing organization | 150,000 | | Right of use asset | 94,568 | | Receivable from clearing organization | (404,210) | | Deferred revenue | 1,225,000 | | Prepaid expense | (3,600) | | Net federal income tax | (59,104) | | Net decrease in deferred income tax | 3,095 | | Accounts payable and accrued liabilities | (10,111) | | Change in lease liability | (87,986) | | Net cash provided by operating activities | 943,151 | | | | | CASH FLOWS USED BY INVESTING ACTIVITIES | | | Purchase of furniture and equipment | (11,233) | | Net cash used byinvesting activities | (11,233) | | CASH FLOWS USED BY FINANCING ACTIVITIES | | | Dividends paid to stockholders | (50,981) | | Common stock sold | (51,830) | | Common stock repurchased | 47,122 | | Net cash usedby financing activities | (55,689) | | NET CHANGE IN CASH | 876,229 | | Cash, beginning of year | 132,743 | | Cash, end of year | 1,008,972
ಕ್ಕೆ | | SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
INFORMATION | | | Cash paid during the year for income taxes | ਚੰਤ
60,000 | | | | # RICHARDS MERRILL WEALTH MANNAGEMENT STATEMENT OF CASH FLOWS {13}------------------------------------------------ #### Note 1 - Organization and Nature of Business Richards, Merrill, & Peterson, Inc. is doing business as Richards Merrill Wealth Management (Company). The Company is a registered broker-dealer engaged primarily in providing brokerage and investment advisory services to clients in Spokane, Washington, and the surrounding area. The Company is incorporated in the state of Washington and is registered with the Securities and Exchange Commission (SEC). The Company is also a member of the Financial Industry Regulatory Authority (FINRA). #### Note 2 - Significant Accounting Policies Basis of accounting - Customers' securities transactions are recorded on a settlement-date basis, generally one business day after trade date for all securities. Related commission income and expenses are recorded on a settlement date basis. As of December 31, 2025, and for the year then ended, the Company's financial condition and results of operations using the settlement-date basis are not materially different from recording transactions on a trade-date basis. Cash and cash equivalents – For the purposes of reporting cash and cash equivalents include deposits with financial institutions. See Note 5 for additional details. Receivables – Receivables consist primarily of commissions due from mutual funds and the Company's clearing broker and are typically received upon settlement of the transaction. ASU No. 2016-13 requires the Company to measure and recognize expected credit losses for financial assets and certain other instruments held at amortized cost, replacing the incurred loss impairment model. This includes the receivable from the clearing organization. Under ASU 2016-13, the Company is required to consider whether expected credit losses should be recognized for receivables that are considered current and the Company is required to recognize estimated credit losses expected to occur over the estimated life or remaining contractual life of an asset using a broader range of information including reasonable and supportable forecasts about future economic conditions to estimate credit losses. Commission receivable beginning balance at January 1,2025 was 198,661 all of which was subsequently collected. The Company records its receivable from the clearing organization when revenue is earned that is to be received from this organization. The Company reviews the outstanding receivable amount, the age of the receivable, past credit history with the clearing organization, historical collection information, current financial condition of the clearing organization, external market factors, and reasonable and supportable forecasts about future economic conditions. At December 31, 2025, management determined that no allowance for credit loss was required. Depreciation – Furniture and equipment are stated at cost, less accumulated depreciation. Depreciation is computed by the straight-line method over estimated useful lives of five to seven years. Leases - Leases are classified as operating or finance leases at the lease commencement date. The Company leases one location. The company records the lease on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any {14}------------------------------------------------ impairment of the right-of -use assets. The discount rate used in determining the lease liability is based upon incremental borrowing rate the Company could obtain for similar loans as of the date of commencement or renewal. The company does not record short term leases with an initial lease term of one year or less on the balance sheet. At lease inception, the Company determined the lease term by considering the noncancelable lease term and all optional renewal periods that the Company is reasonably certain to renew. The lease term is also used to calculate straight-line lease expense. Leasehold improvements are amortized over the shorter of the useful life and the estimated lease term. Deposits - The Company has an agreement with First Clearing Corporation (FCC), whereby FCC clears all security transactions, carries all customer accounts, finances, and holds the Company's trading inventory, and performs certain other services. The agreement is cancelable upon 30 days prior written notice of either party. The contract was renewed in February 2025 and is extended to February 2030. As part of this agreement, the Company is required to and does maintain a deposit in the amount of \$100,000 held at FCC as of December 31, 2025. Paid time off – Employees are entitled to paid vacation, sick, and personal days off depending on job classification, length of service, and other factors. These benefits do not carry over and must be used by year end. Accordingly, no provision for such benefits is appropriate in the accompanying financial statements. Accounting estimates – The preparation 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Managed account fees - Managed account fees are billed on a monthly basis at the beginning of each month. Any account refunds or credits are prorated over the remainder of the month. Commission income - Commission income is recognized on a settlement date basis on traditional brokerage accounts. Revenue from Contracts with Customers - ASC 606 Revenue from Contracts with Customers (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets. The Company's assessment of key revenue sources includes: Brokerage commissions - The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. Investment advisory fees - The Company provides investment advisory services on a daily basis. {15}------------------------------------------------ The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received monthly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. Deferred Revenue- The Company entered a five-year contract with the clearing organization effective February 1,2026 the clearing organization provided a \$1,000,000 Extension Award for the renewal. Additionally, the clearing organization will remit a Good Will Incentive Payment of \$250,000 on January settlements for the years 2026 and 2027. The transaction will be amortized over five years. Income taxes – Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities at the applicable enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company evaluates the realizability of its deferred tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. For the vear ended December 31, 2025, the Company recorded a \$3,095 deferred tax expense. The Company applies the provisions of Financial Accounting Standards Board (FASB) Acounting Standards Codification (ASC) 740-10, Income Taxes, relating to accounting for uncertain tax positions. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ### Single Reportable Segment The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including principal transactions, agency transactions, investment banking, investment advisory and venture capital businesses, The Company has identified its President, Mark Calkins, 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 profit and loss, 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 the profit and loss of the same as those described in the summary of significant accounting policies. The Company derived zero percent of its total revenues from a single external customer in 2025. The Company has evaluated subsequent events through February 25,2026, the date the audited financial statements were available to be issued, and has recognized the effects of those subsequent events, if any, as required by accounting principles generally accepted in the United States of America. {16}------------------------------------------------ # Note 3 - Net Capital Requirement The Company is subject to the Securities and Exchange Commission's (SEC) Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital of \$100,000. The SEC also requires the ratio of aggregate indebtedness to net capital shall not exceed 1500% (15 to 1). At December 31, 2025, the Company had net capital of \$438,920 which was \$338,920 in excess of its total Rule 15c3-1 required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital was 8.49% to 1 # Note 4 - Defined Contribution 401(k) Plan The Company sponsors a defined contribution 401(k) plan that covers all employees who regularly work 1,000 hours or more per year. Employees may contribute up to 100% of eligible compensation up to a federally mandated maximum. Employer contributions are discretionary with a minimum contribution of 4% of participants' compensation. For the year ended December 31,2025 the Company made discretionary contributions of \$115,762. # Note 5 - Concentration of Credit Risk The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty of issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. The amount on deposit with financial institutions fluctuates but does not exceed the insured limit by the U.S. Federal Deposit Insurance Corporation. As of December 31, 2025, the Company had no uninsured deposits held at corresponding financial institutions. ### Note 6 - Lease Agreement Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-ofuse assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right of use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term calculated with a 4% incremental borrowing rate. The Company is leasing office space on a ten- year lease expiring July 31, 2032. Total lease expense for the year ended December 31,2025 was \$126,981. Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2025, pertaining to premises and equipment, future minimum lease commitments under various operating leases are as follows: {17}------------------------------------------------ | Year Ended December 31, | | | |---------------------------------|---------|-----------| | 2026 | ಕ್ಕೆ | 123,388 | | 2027 | સ્ત્ર | 126,473 | | 2028 | ક | 129,635 | | 2029 | ಕ್ಕಿ | 132,876 | | 2030 | ಕ್ಕಿ | 136,198 | | 2031 | ક્ષ્દ્ર | 139,602 | | 2032 | સ્ત્ર | 82,985 | | Total minimum payments required | ਦੇ ਦੇ | 871,157 | | Less imputed interest | સ્ક્ર | (109,130) | | Lease Liability | 8 | 762,027 | | | | | # Note 7 - Income Taxes The deferred tax liablity at December 31, 2025 related to the difference between book and tax. The components of the deferred income liability in the sttement of financial condition are: | Deferred tax liability | | |--------------------------|---------| | Accumulated Depreciation | \$8,439 | The effective tax rate differs from the statutory federal rate at December 31, 2025, presented as follows: | Federal income tax at statutory rates | \$2,892 | |-------------------------------------------|---------| | Effect of permanent and other differences | 1.099 | | ncome tax expense | \$3.991 | The Company files income tax returns in the U.S. federal jurisdiction. The Company does not have any uncertain tax positions. As of December 31, 2025, there is no accrued interest or penalties recorded in the financial statements. {18}------------------------------------------------ | | | December 31, | | |-----------------------------------------------------|-------|--------------|--| | | | 2025 | | | NET CAPITAL | | | | | Total stockholders' equity | ಕ್ಕಿ | 596,058 | | | Deduct nonallowable assets: | | | | | Furniture & equipment less accumulated depreciation | | 79,110 | | | Prepaid expenses | | 17,140 | | | Prepaid federal income tax | | 60,888 | | | Net capital | ಕ್ಕೆ | 438,920 | | | | | | | | AGGREGATE INDEBTEDNESS | | | | | Total liabilities | સ્ત્ર | 37,282 | | | | | | | | | | | | | Total aggregate indebtedness | સ્ત્ર | 37,282 | | | | | | | | | | | | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | | | Net capital | ಕ್ಕಿ | 438,920 | | | Minimum net capital required | | 100,000 | | | Capital in excess of minimum requirement | ಕ್ಕಿ | 338,920 | | | | | | | | Ratio of aggregate indebtedness to net capital | | 8.49% | | ## RICHARDS MERRILL WEALTH MANGEMENT # SCHEDULE I - COMPUTATION OF NET CAPITAL UNDER SEC RULE 15c3-1 No material differences exist between net capital and aggregate indebtedness reported above and net capital and aggregate indebtedness reported on the Focus Report Form X-17A-5. {19}------------------------------------------------ -DocuSianed by: ![](_page_19_Picture_1.jpeg) Baker Tilly US, LLP 601 W Riverside Avenue Suite 1800 Spokane, WA 99201 United States of America T: +1 (509) 747 2600 F: +1 (509) 624 5129 bakertilly.com # Management Statement Regarding Compliance with Certain Exemption Provisions Under Rule 15c3-3 of the Securities Exchange Act of 1934 Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company claimed exemption from 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k)(2): (ii) - 2. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k) throughout the most recent fiscal year without exception. Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management | 2/25/2026 | |-----------| | Date | | 2/25/2026 | | Date | | 2/25/2026 | | Date | | 2/25/2026 | | Date | | | Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients Baker Tilly Advisidiary entiles provide tax and consulting services to their clients and are not licensed CPA firms. {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of 10 the Loard of Dirocere are 1, the Liba Richards Merrill Wealth Management We have reviewed management's statements, included in the accompanying Richards, Merrill, and vve rave reviewed managemont o statelling of the management's Exemption Report in which: 1) Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management states Richards, I ) Richards, Mermil, and Peterson, mor and rill Wealth Management claims an exemption under Memil, and Peterson, mor abon . paragraph (k) (2)(ii) of 17 C.F.R. §240.15c3-3 (the exemption provisions); and 2) Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management states Richards, 2) Richards, Merrill, and Peterson, me. aba Nibhall Management met the identified exemption wernin, and Potersout the most recent fiscal year without exception. Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth Management's management is Richards, Merrin, and Our review was conducted in accordance with the standards of the Public Company Accounting Our review was Conducted in accordingly, included inquiries and other required procedures to Oversight Board (United States) and, accordingly, included Marrill World Oversight Board (Ohiled Otator) and, 2011 - 1977 obtain evidence about Richards, Merrill, and Peterson, Inc. dba Richards Merrill Wealth obtain evidence about Nichards, Momil, and other is substantially less in scope than Management s compliance with the expression of an opinion on management's statements. an examination, the objective of which is the expression of an opinion on management's s Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to Based on our review, we are not andro of any many in them to be fairly stated, in all material respects, management's statements referred to above for them to be fairly state management o cansions set forth in paragraph (2)(ii) of 17 C.F.R. §240.15c3-3. for Jilly US, bl. Spokane, Washington February 25, 2026 Dakar Tity Advisory Croup, I P and Baker Tilly US, LLP (nating as Baker Tilly, are members of Baker Tilly IIS E.H.) e a neonsio CPA in Dates The Diesony Croup, IP and Date and micronate in the Bland Child States (10) PLE ) I LP & Dicemation C. LLPs a hoonsdi CPA link that Intenational I.d. The nembers of the Adective Albertay Cloup. I P and II, Pro Pro 10 Marcology entines provides provided and consulting sations w then clients and are not licensed CPA hrus Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.