# CASH APP INVESTING LLC X-17A-5 (2025-03-31) — Broker-dealer annual report - Company: CASH APP INVESTING LLC - Form: X-17A-5 - Filed: 2025-03-31 - Period: 2024-12-31 - Accession: 0001398656-25-000004 - CIK: 1398656 - File #: 8-67630 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst and Young - Auditor location: Los Angeles, CA - Contact: Logan Kolar - Phone: 7708916346 - Email: lkolar@cashappinvest.com - Website: cashappinvest.com - Signed by: Ashley Adkins (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1398656/000139865625000004/CAI_FY24_SOFC_Public.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 | ANNUAL REPORTS | |----------------| | FORM X-17 A-5 | | PART Ill | | | SEC FILE NUMBER | |--|-----------------| | | FACING PAGE | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------|--------------------------------------------|--|--| | Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
1213112024 | | | | | | | FILING FOR THE PERIOD BEGINNING 01/01/2024 | MM/DD/YY | AND ENDING | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: CASH APP INVESTING LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | O Security-based swap dealer | □ Major security-based | swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 400 SW 6TH AVENUE 11TH FLOOR | | | | | | | | (No. and Street) | | | | | | PORTLAND | OREGON | | 97204 | | | | (City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | LOGAN KOLAR | 1 -855-998-1788 | | LKOLAR@CASHAPPINVEST.COM | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
ERNST & YOUNG | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 725 S. FIGUEROA | #500
LOS ANGELES | CA | 90017 | | | | (Address)
10/20/2003 | (City) | (State)
42 | (Zip Code) | | | | (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)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ ### **OATH OR AFFIRMATION** State of Texas, County of Tarrant 1, Ashley Adkins swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of CASH APP INVESTING LLC as of 12/31 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. ![](_page_1_Figure_4.jpeg) Title: Chief Executive Officer Notary Public State of Texas:J3/28/2025 Electronically signed and notarized online using the Proof platform. # **This filing\*\* contains (check all applicable boxes):** - **iilli** (a) Statement of financial condition. - **iilli** (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.lSa-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 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.lSa-4, as applicable. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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.l 7a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.l 7a-S or 17 CFR 240.lSa-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - **iilli** (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.l 7a-S, 17 CFR 240.18a-7, or 17 CFR 240.l 7a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, 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.l 7a-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}------------------------------------------------ # CASH APP INVESTING LLC Statement of Financial Condition and Report of Independent Registered Public Accounting Firm DECEMBER 31, 2024 {3}------------------------------------------------ ### **TABLE OF CONTENTS** | | Page No. | |---------------------------------------------------------|----------| | Report of Independent Registered Public Accounting Firm | l | | Statement of Financial Condition | 1 | | Notes to the Financial Statements | ,2 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Member and Board of Mana(Jers of Casl1 App Investing. LLC, ## Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Cash App Investing, LLC (the "Company") as of December 31, 2024, and the related notes (the "financial statement"). In our opinion. the financial statement presents fairly, in all material respects, the financial position of the Company at December 31, 2024, in conformity witl1 U.S. generally accepted accounting principles. ## Basis for Opinion This financial statement is the responsibility of tl1e Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with t11e Public Company Accountin2024 | | |-------------------------------------------|----------------------|--| | Assets | | | | Cash and cash equivalents | \$
5,306.673 | | | Due from Parent, net | 1,695,236 | | | Receivable from clearing broker | 516.001 | | | Prepaid expenses and other current assets | 190,616 | | | Total assets | \$
7,708,526 | | | | | | | Li:tbilities and member's equity | | | | Liabilities: | | | | Accounts payable and accrued expenses | 2,437.288 | | | Total liabilities | 2,437,288 | | | Total member's equity | 5,271,238 | | | Totnl linbilitics and member's equity | \$
7,708,526 | | *The accompanying notes are an integral part of these financial stateme/1/s.* {6}------------------------------------------------ ### **CASH APP INVESTING LLC NOTES TO THE FINANCIAL STATEMENTS** ## **NOTE** I - **Organization and Summary of Significant Accounting Policies** ### **Organization and Business** Cash App Investing LLC (the "Company") is a Delaware registered limited liability company and is a wholly-owned subsidiary of 131ock. Inc. (""Block'" or the ··Parent"). The Company is headquartered in Portland. Oregon and utilizes a distributed workforce model. The Company operates as a registered broker-dealer with the U.S. Securities and Exchange Commission ("SEC"), is a member of the Financial Industry Regulatory Authority ("FINRA"). and the Securities Investor Protection Corporation ("SIPC"). The Company is an introducing broker dealer providing Block's Cash App users a suite of application programming interfaces (/\Pis) that provide them the ability to trade in equities through a partnership with a third-party clearing broker. The Company conducts business on a fully disclosed basis and clears through Drive Wealth LLC ("Drive Wealth"). ### Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United Stales or America ("U.S. GAAP"). ### **Liquidity and Going Concern** The Company has not been profitable historically and has been dependent on the Parent to continue lo fund its operations and meet its obligations as they fall due. The Parent has agreed to provide ongoing financial support to enable the Company to continue its operations and meet its obligations as they become due. Without the support of the Parent. it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification or recorded liabilities that might be necessary should the Company be unable lo continue in existence. ### Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the elate of the financial statements. and the reported amounts or revenues and expenses during the reporting period. Management's estimates arc based on historical experience and other factors. including expectations or future events that management believes to be reasonable under the circumstances. however, due to the inherent uncertainties in making estimates. actual results could differ from those estimates and may have an impact on fi1turc periods. Significant estimates. judgments. and assumptions in these financial statements include. but arc not limited to. contingencies and assessing the likelihood of adverse outcomes from claims and disputes, as well as in relation to the Parent's allocation or support activities to the Company. ### **Segment Information** Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker ("CODM .. ) in deciding how to allocate resources and assess performance. The CODM is the Chief Executive Officer and the Company operates and reports financial information in one operating segment. The assessment of performance and allocation of resources is based on one principle business activity and reviewed at the consolidated level. Net income is used as the measure of profitability. Segment assets are not used by the CODM. All or the revenues and assets are located in the United States. ### **Concentration of Credit Risk** Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily or cash and cash equivalents. The associated risk of concentration for cash and cash equivalents is mitigated by banking with credit worthy institutions. The Parent accounted for the majority of total revenue recognized for the year ended December 31. 2024. This report is deemed confidential in accordance with rule l 7a-5(e)(3) under the Securities Exchange Act of 1934. {7}------------------------------------------------ #### **Fair Value of Financial Instruments** The Company applies fair value accounting for all financial assets and liabilities that arc recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value accounting establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective prices in external active markets are available lo measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which arc categorized in one of the following levels: - Level I Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date: - Level 2 Inputs: Other than quoted prices included in Level I Inputs that are observable for the asset or liability, either directly or indirectly, for substantially the Cull term of the asset or liability; and - Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs arc not available. thereby allowing for situations in which there is little, if" any, market activity for the asset or liability at measurement date. *J\s* of December 31, 2024. the Company has no financial assets and liabilities that are measured at fair value on a recurring basis. The carrying amounts or certain financial instruments deposited at a clearing broker-dealer approximate their fair values due to their short-term nature. #### **Cash and Cash Equivalents** The Company maintains its cash balances at various financial institutions. These deposits may exceed the maximum insurance coverage level provided by the Federal Deposit Insurance Corporation. The Company considers all demand deposits held in banks to be cash equivalents. #### **Due from Parent** Due from Parent includes amounts owed to the Company in exchange for brokerage services provided to customers of the Parent. and other expenses as necessary. and is recorded in the statement of financial condition. #### **Accounts Payable and Accrued Expenses** J\ccounts payable and accrued expenses include outstanding invoices. accrued clearing fees. accrued data market fees. and accrncd professional fees. #### **Income Taxes** Income taxes on the Company's inco1m: are levied at the member level as the Company is classified as a singlemember LLC that is a disregarded entity for federal and state tax purposes. There is no tax-sharing arrangement between the Company and the member. no dividends have been paid by the Company to the member for tax reimbursements. and the Company has no present intention 10 enter into a tax-sharing arrangement or distribute dividends to the member for tax. Accordingly, no provision for income tax is reflected in the accompanying financial statements. {8}------------------------------------------------ #### **Recently Issued Accounting Pronouncements** In November 2024, the FASl3 issued /\SU No. 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025. the FASB issued ASU No. 2025-01, Clarifying the Ef1cctive Date ("ASU 2025-01"). The amendments arc intended to enhance disclosures regarding an entity's costs and expenses by requiring additional disaggregated information disclosures about certain income statement expense line items. The amendments, as clarilicd by ASU 2025-0 I, are effective for fiscal years beginning after December 15, 2026 and interim periods within Ii seal years beginning after December 15. 2027. Early adoption is permitted. The Company is evaluating the effect of adopting the new disclosure requirements. In November 2023. the F ASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" The amendments in guidance improve reportable segment disclosure requirements. primarily through enhanced disclosures about signilicant segment expenses. This guidance is ert-.:ctive for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15. 2024. The Company adopted this guidance for the year ending December 31. 2024. The adoption or this guidance did not have a material impact on the linancial statements. #### **NOTE 2** - **Receivable from Clearin2 Broker** The Company entered into a fully disclosed clearing agreement with Drive Wealth for the purposes of executing and clearing securities transactions and carrying accounts on behalf of its customers. /\s of December 31. 2024. the Company has a balam:t: of \$516,001 in its accounts with DrivcWealth. Included within the balance is a clearing deposit of \$433,589 maintained with DriveWcalth to cover any obligations that may arise from the Company. Such clearing deposits are typically retained by the clearing firm for tht: duration of the clearing agreement and are generally returned to the corresponding firm, as long as the correspondent !inn does not have obligations to the clearing firm that it cannot otherwise satisly within a short period after termination of the clearing arrangement. #### **NOTE 3** - **Accounts Payable and Accrued Expenses** | | Decem her 31, 2024 | |--------------------------------------|--------------------| | Accrued settlement fees | \$
1,535,860 | | Accrued invoices | 15,757 | | Accrued clearing fees (Drive Wealth) | 516,657 | | Accrued data market lees | 112. 137 | | Accrued professional fees | 256,877 | | Total | \$
2,437,288 | #### **NOTE 4** - **Net Capital Requirement** The Company is subject to the SEC's Uniform Net Capital Rule ( I 5c3-I )("Ruic"), which requires the maintenance of minimum net capital. The Ruic prohibits the Company from engaging in st:curities transactions at any time the Company's net capital. as defined by the Rule. is less than \$ I 00,000, or if the ratio of aggregate indebtedness to net capital, both as defined. exceed 15 to I (and the rule of "applicable" exchange provides that equity capital may not be withdrawn. or cash dividends paid. if' the resulting net capital ratio exceeds 12 to l ). The Company's nel capital ratio was 71.6% to I. As of December 31. 2024, the Company had net capital. as delined by Rule, of \$3,402,001. which exceeds the minimum net capital required of \$ I 62.486 by \$3,239,515. /\s of December 31, 2024. the Company had aggregated indebtedness of \$2.43 7 **.288.** {9}------------------------------------------------ #### **NOTE 5- Guarantees and Indemnification Agreements** Accounting Standards Codification Topic 460 ("ASC 460''). Guarantees. requires the Company to disclose information about its obligations under certain guarantee arrangements. ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed paity based on changes in an underlying (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. As ol' December 31, 2024, the Company has no guarantees or indemni lication agreements outstanding. #### **NOTE 6** - **Rule.15c3-3 Exemption** Under its membership agreement with FINRA, the Company, under Rule I 5c-3(k)(2)(ii), is exempt from the reserve and possession or control requirements of Rule I 5c3-3 of the SEC. The Company does not carry or clear customer accounts. #### **NOTE** 7 - **Transactions with Related Parties** The Company's Agreement includes an expense sharing policy which requires it to facilitate brokerage services to customers of the Parent's Cash App equity trading platform. In return, the Parent provides the Company support services to facilitate its brokerage operations, including but not limited to employee compensation and benefits, fees paid to clearing broker, professional fees. and other operating expenses. For the year ended December 31, 2024, the Company incurred \$10,742,732 of expenses which consisted of employee wages, facilities. and technology cost allocations, with the remaining \$8,696.200 consisting of clearing and trading, legal, software licensing, and consulting fees. Total brokerage service re..:s or \$19,438,932 were recognized as revenue within the statement of operations. Based on its liquidity al any given time, the Company's ability to meet regulatory capital requirements may be dependent on its access to funding from the Parent. In addition lo the Agreement, the Company has a brokerage technology product license and maintenance agreement with its Parent which grants the Company a license to use the brokerage technology product to operate its platform. As compensation for the license, the Company is required to pay a monthly lee to its Parent, the greater of the number of the Company's employees multiplied by \$ l00, or \$2, I 00. For the year ended December 31, 2024, \$25,200 of software expense related to the agreement was recorded in other operating expense in the statement of operations and subsequently reimbursed under the terms of the aforementioned Agreement. The amount of revenue earned fro111 affiliates 111ay not be reflective of revenues that could have been earned on si111ilar levels of activity with unaffiliated third parties. The amount of expenses allocated to the Company may not be reflective of expenses that would have been incurred if the Company used third party service providers. #### **NOTE 8** - **Member's Equity** The Company did not receive any capital contributions from its Parent during the year. {10}------------------------------------------------ #### **NOTE 9** - **Commitments and Contingencies** As a regulated FINRA hroker-dcaler. the Company is subject to an ongoing investigation in relation to violations or FINRA rules that may have occurred. As of the date of approval of the financial statements, the Company remains engaged in discussions with FINRA ·s Department of Enforcement and the matter has not reached either a potential settlement or enforcement proceedings. The Company n:t:ords liabilities for rlNRA penalties in those instances where it can reasonably estimate the amount of the loss and when the liability is probable. Due to the range of loss and potential liability being inestimable. the Company has not accrued a contingent liability for the year ended December 31. 2024. Additionally, the Company is subject to various litigation matters. legal claims, investigations and regulatory proceedings and lawsuits in the ordinary course of business, including arbitration. class actions and other litigation, which could include claims for substantial or unspecified damages. The Company docs not believe that the final disposition of any of these matters will have a material adverse effect on its results or operations. financial position, or liquidity. ### **NOTE** IO - **Subsequent Events** The Company has evaluated subsequent events from the statement of financial condition date through March 28. 2025, the date at which the respective audited financial statements were available to be issued. No significant matters were identified for disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.