# MILLBURN RIDGEFIELD LLC X-17A-5 (2026-03-31) — Broker-dealer annual report - Company: MILLBURN RIDGEFIELD LLC - Form: X-17A-5 - Filed: 2026-03-31 - Period: 2025-12-31 - Accession: 0001449651-26-000002 - CIK: 1449651 - File #: 8-68078 - Type: Broker-dealer - Material weakness: No - Auditor: CohnReznick LLP - Auditor location: New York, NY - Contact: Gregg Buckbinder - Phone: 212-332-7350 - Email: ilonwu@millburn.com - Website: millburn.com - Signed by: Gregg Buckbinder (President & COO) Original filing: https://www.sec.gov/Archives/edgar/data/1449651/000144965126000002/mrllcpublic2025.pdf --- {0}------------------------------------------------ | 8-68078 | | |---------|--| | | 01/01/25 | 12/31/25 | | | | |-----------------------------------------|-------------------------------------|----------|-------|--|--| | | | | | | | | | | | | | | | Millburn
Ridgefield | LLC | | | | | | ■ | | | | | | | | | | | | | | 55
West
46th
Street
31st | Floor | | | | | | | | | | | | | New
York | NY | | 10036 | | | | | | | | | | | | | | | | | | Ilon
Wu | 212-332-7338
ilonwu@millburn.com | | | | | | | | | | | | | | | | | | | | CohnReznick
LLP | | | | | | | | | | | | | | 1301
Avenue
of
the
Americas | New
York | NY | 10019 | | | | | | | | | | | 10/14/2003 | | 596 | | | | | | | | | | | {1}------------------------------------------------ Gregg Buckbinder Millburn Ridgefield LLC December 31 025 President and Chief Operating Officer - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # **Millburn Ridgefield LLC & Subsidiaries** D **REPORT ON CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** DECEMBER 31 , 2025 {3}------------------------------------------------ ![](_page_3_Picture_1.jpeg) ## Report of Independent Registered Public Accounting Firm Board of Directors and Members Millburn Ridgefield LLC and Subsidiaries ## *Opinion on the Financial Statement* We have audited the accompanying consolidated statement of financial condition of Millburn Ridgefield LLC and Subsidiaries (the "Company") as of December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statement"). In our opinion, the consolidated financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. ## *Basis for Opinion* This consolidated financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this consolidated 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 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 consolidated 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 consolidated 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 consolidated financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2020. New York, New York March 31, 2026 {4}------------------------------------------------ **CONSOLIDATED STATEMENT OF FINANCIAL CONDITION** **DECEMBER 31, 2025** ## **ASSETS** | Cash and cash equivalents
Commissions and fees receivable
Investments in sponsored funds, at fair value
Investments in other funds, at fair value
Redemptions receivable from sponsored funds
Investment in United States government securities, at fair value (amortized cost -
\$628,476) | \$
23,758,503
9,958,268
18,564,725
4,058,702
563,478
629,033 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------| | Operating lease - right-of-use assets
Furniture and equipment net of accumulated depreciation
Equity method investment
Other assets
Due from affiliated companies
Other receivables
Deferred tax asset | 6,324,822
717,992
572,328
745,219
266,715
88,410
64,172 | | Total assets | \$
66,312,367 | | LIABILITIES | | | Accounts payable and accrued expenses
Member distributions payable
Operating lease - liabilities
Due to affiliated company | \$
13,621,922
2,000,000
6,917,151
22,246 | | Total liabilities | 22,561,319 | | EQUITY
Members' equity
Accumulated other comprehensive loss | 43,898,266
(147,218) | | Total equity | 43,751,048 | | Total liabilities and equity | \$
66,312,367 | {5}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION** #### **DECEMBER 31, 2025** ## Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General Millburn Ridgefield Corporation (the "Corporation"), incorporated in the State of Delaware on May 19, 1982, converted to a limited liability company on January 30, 2025, and changed its name to Millburn Ridgefield LLC (the "Company"). The conversion was preceded by a restructuring in which all shareholders of the Corporation transferred their shares to a newly formed holding company, Millburn Capital LLC ("Millburn Capital"), which elected S-Corporation status under the Internal Revenue Code. As a result of the holding company's S-Corporation election and its continued S-Corporation status following the conversion, the Company has been treated as a disregarded entity for U.S. federal income tax purposes throughout. The conversion did not result in any material U.S. federal, state, or local income tax consequences to the Company or its members. All contracts and agreements in the name of the Corporation were automatically assigned to the Company, and the Company assumed all rights and obligations of the Corporation. On February 27, 2025, Millburn Capital sold 8% of its membership interests in the Company to certain senior management employees of the Company who then transferred 100% of their membership interests to the newly formed Millburn Management LLC, in exchange for 100% ownership of Millburn Management LLC. As a result, the Company is owned 92% by Millburn Capital and 8% by Millburn Management LLC. The Company earns commissions and fees as a Commodity Trading Advisor and Commodity Pool Operator and is registered with, and subject to, the regulations of the Commodity Futures Trading Commission ("CFTC"), an agency of the United States (U.S.) government which regulates most aspects of the commodity futures industry. It is also subject to the rules of the National Futures Association ("NFA"), an industry self-regulatory organization. In addition, the Company is registered with the United States Securities and Exchange Commission as an Investment Adviser and a Broker-Dealer. The Company does not carry accounts for customers, receive or hold customer funds, or receive or safe keep customer securities and accordingly is not subject to any of the requirements of SEC Rule 15c3-3. The Company's consolidated statement of financial condition is presented on a consolidated basis with Millburn Asia LLC ("Asia") and Millburn (Shanghai) Investment Consulting Co., Ltd. ("WFOE"). Asia is a limited liability company organized in November 2014 under the Delaware Limited Liability Company Act. WFOE is a Company established in December 2014 under the laws of the People's Republic of China. WFOE is a whollyowned subsidiary of Asia. All material intercompany accounts and transactions are eliminated in consolidation. The Company's consolidated statement of financial condition has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), pursuant to the provisions of the *Consolidation* Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification" or "ASC"). The provisions of the *Consolidation* Topic of the Codification require consolidation of entities in different circumstances based on the nature of operating characteristics of the entity. Asia and WFOE are being consolidated with the Company due to being wholly-owned by the Company. The Company has a 40% interest in Shanghai Quadrant Asset Management Co. Ltd. ("Quadrant") through WFOE. The interest is accounted for as an equity method investment and is not consolidated. See Note 3 for additional information on Quadrant. The Codification is the single source of U.S. GAAP. The preparation of the consolidated statement of financial condition in conformity with U.S. GAAP 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 consolidated statement of financial condition. Actual results could differ from those estimates, and those differences may be material to the consolidated statement of financial condition. {6}------------------------------------------------ ### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Cash and Cash Equivalents Cash and cash equivalents include cash of \$213,976 held at JP Morgan Chase Bank, N.A., \$26,490 held at Citibank, an investment of \$14,742,644 in JPMorgan 100% U.S. Treasury Securities Money Market Fund, and \$8,775,393 held through WFOE. WFOE has cash of \$2,965 at Bank of Communications, \$8,760,930 at China Merchant Bank, investments of \$5,351 in HSBC Jintrust Money Market Fund at HSBC Jintrust Fund Management Company, and \$6,147 in JPMorgan RMB Money Market Fund in JP Morgan Asset Management (China) Company Limited. All money market mutual funds are readily convertible to cash and have an original maturity of 90 days or less. ## C. U.S. Government Securities The Company trades U.S. government securities. Investments in U.S. Treasury notes are stated at fair value based on the midpoint of bid/ask quotations reported daily at 3pm EST by Bloomberg. U.S. Treasury note transactions are recorded on the trade date. D. Investments in Sponsored Funds and Other Funds The Company is the general partner, managing owner or managing member of various commodity pools and investment funds (collectively, "sponsored funds") formed as limited partnerships, limited liability companies or trusts. As the sponsor, the Company exerts significant influence and has a fiduciary responsibility to the sponsored funds and potential liability beyond amounts recognized as an asset in the consolidated statement of financial condition. The Company has not consolidated the assets and liabilities of these variable interest entities due to the Company not being the primary beneficiary. The maximum exposure to loss on these variable interest entities is the value of the related investments. Investments in sponsored funds and certain other funds (collectively, "funds") are reported in the Company's consolidated statement of financial condition at fair value. As a practical expedient, fair value ordinarily represents the Company's proportionate share of each fund's net asset value determined for each fund in accordance with such fund's valuation policies and reported at the time of the fund's valuation. Generally, the fair value of the Company's investment in another fund represents the amount that the Company could reasonably expect to receive from such fund if the Company's investment was redeemed at the date of the consolidated statement of financial condition, based on information reasonably available at the time the valuation is made and that the Company believes to be reliable. Investments in other funds include investments in mutual funds that are investment companies registered under the Investment Company Act of 1940. Mutual funds are valued at the net asset value per share on the valuation date as reported by management of the mutual fund. E. Foreign Currency Translation The Company's functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at quoted prices of such currencies at the date of the consolidated statement of financial condition. {7}------------------------------------------------ ### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## F. Revenue Recognition The Company adopted the guidance in ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). Following the adoption of ASC 606, the Company's revenue recognition of its contracts with customers remains materially consistent with its historical practice. The Company's policies with respect to its various revenue streams are detailed below. Management and other fees are received monthly and quarterly, and are recognized as revenue at a point in time at which the services are provided and there are no future obligations or extended payment terms, in accordance with the related limited partnership agreement or other governing agreement. Management fees from sponsored funds are based on a fixed percentage of the sponsored funds' net asset value. Management fees from managed accounts are based on a fixed percentage of assets under management. The commission and fees receivable as of January 1, 2025 were \$9,701,066. Incentive fees are earned from the funds at a point in time, usually annually, at which the service is provided to the funds and there are no future performance obligations or extended payment terms. Pro rata income and profit share allocations are earned from the funds at a point in time, either monthly or annually, based on a percentage of the net profits of the funds, at which there are no future performance obligations or extended payment terms. G. Income Taxes The Company is treated as a partnership for U.S. federal income tax purposes, pursuant to which the Company does not pay U.S. federal corporate income tax on its taxable income. Instead, the members are liable for individual income tax on their respective shares of the Company's taxable income. The Company files U.S. federal and applicable state and local tax returns. The Company is subject to income tax for certain states and New York City. Prior to the Company's conversion from a corporation to a limited liability company on January 30, 2025, the following steps occurred in 2025 in connection with the conversion: (i) all of the shareholders of the Corporation transferred their shares in the Corporation to a newly formed holding company, and (ii) the holding company elected to be treated as an S-Corporation under the Internal Revenue Code, with the result that the Corporation became a qualified subchapter S subsidiary and was treated as a disregarded entity for U.S. federal income tax purposes. Upon the subsequent conversion of the Corporation to a limited liability company, the holding company retained its S-Corporation status, and the Company, as a single-member LLC wholly owned by an S-Corporation, continued to be treated as a disregarded entity for U.S. federal income tax purposes. Because the Company's tax classification as a disregarded entity was maintained on a continuous basis throughout these restructuring steps, no taxable gain, income, or other material U.S. federal, state, or local income tax consequences were triggered as a result of the conversion or the related restructuring steps described above. The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The current open tax years are 2022 to 2024. {8}------------------------------------------------ ### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Furniture, Equipment and Leasehold Improvements Furniture and equipment are stated at cost, net of accumulated depreciation. Depreciation is charged to operations over the estimated lives of the furniture and equipment, primarily five or seven years, utilizing accelerated methods. Leasehold improvements are stated at cost, net of accumulated amortization. The amortization of the leasehold improvements is charged to operations on a straight-line basis over the remaining term of the lease. I. Impairment of Long-lived Assets The Company periodically evaluates long-lived assets when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. An impairment loss, measured as the amount by which the carrying amount exceeds the fair value, is recognized if the carrying amount exceeds estimated undiscounted future cash flows. There were no long-lived asset impairment charges recorded in 2025. J. Net Income Allocation Net income is allocated and distributed to each member on a pro rata basis, based on each member's percentage of shares held. K. Receivables and Credit Policies Receivables are stated in the consolidated statement of financial condition at the amount due from the funds. The Company does not have payment terms with these funds as they are all related parties. See Note 2. Investments in Sponsored Funds and Other Funds for dollar amounts owed by certain related parties. The Company does not deem it likely that any of the receivables will become uncollectible due to the nature of the relationship and the lack of a history of credit losses related to its receivables recorded at amortized cost; however, management reviews the balances quarterly to ensure any receivables deemed uncollectible are written off. In the opinion of management, at December 31, 2025, all accounts were considered collectible and no allowance was necessary. L. Equity Method Investment Equity method investment is equity interest in an entity that the Company does not control but over which it can exercise significant influence. The investment is accounted for under the equity method of accounting in accordance with ASC 323, *Investments – Equity Method and Joint Ventures*. Equity method investment is measured at cost plus or minus the Company's share of the investee's income or loss less impairment, if any. M. Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive (loss). Other comprehensive (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of members' equity but are excluded from net income. The Company's other comprehensive (loss) is comprised of foreign currency translation gains (losses), net of income tax expenses/benefit. {9}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## N. Recently Adopted Accounting Pronouncement In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023- 09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company adopted ASU 2023-09 on January 1, 2025, and it did not have any material impact on the Company's statement of financial condition and related disclosures. ## Note 2. INVESTMENTS IN SPONSORED FUNDS AND OTHER FUNDS The Company has general partner interests, managing owner interests and member interests in sponsored funds with such investments as of December 31, 2025 summarized are as follows: | Sponsored Funds (1) | Value at
December 31, 2025 | Investment Strategy | Redemption
Provisions | |-----------------------------------------------|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------| | Global Macro Trust (3.81%) | \$
2,083,700 | To achieve capital appreciation through
trading a diversified portfolio of futures
and forwards contracts on interest rate
instruments, stock indices, metals, energy
and agricultural commodities. | Monthly with 10 days'
prior written notice(2) | | Millburn Multi-Markets Fund L.P. (2.79%) | 2,869,030 | To achieve capital appreciation through
investments in Millburn Multi-Markets
Trading L.P. which engages in the speculative
trading of futures and forward currency
contracts to achieve capital appreciation. | Monthly with 15 days'
prior written notice | | Nestor Partners (2.00%) | 2,124,712 | To achieve capital appreciation through
trading a diversified portfolio of futures
and forwards contracts on interest rate
instruments, stock indices, metals, energy
and agricultural commodities. | Monthly with 15 days'
prior written notice | | Millburn MCo Partners L.P. (1.99%) | 2,125,070 | To achieve capital appreciation by
allocating its capital among a number
of independent investment advisors
acting through investment funds and/or
managed accounts. | Quarterly with 75 days'
prior written notice | | Apollo Fund (1.99%) | 2,764,232 | To achieve capital appreciation through
the speculative trading of futures and
forwards contracts directly and
indirectly through investments in
other funds. | Monthly with 15 days'
prior written notice | | Other investments in managed
futures funds | 3,079,694 | To achieve capital appreciation through
the speculative trading of futures and
forwards contracts directly and indirectly
through investments in other funds. | Monthly | | Other investments in fund of funds (3) | 3,518,287 | To achieve capital appreciation through
investments in alternative funds,
managed accounts and registered
investment companies. | Quarterly with 75 days'
prior written notice | | Total | \$
18,564,725 | | | (1) The percentage represents the Company's percentage interest in the fund. (2) The Company has currently agreed to maintain its investment at not less than 1% of the total outstanding capital contributions in Global Macro Trust but in no event shall the Company's investment be less than \$500,000. (3) A fund of funds, also known as multi-manager investment, is a pooled investment fund that invests in other investment funds. {10}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 2. INVESTMENTS IN SPONSORED FUNDS AND OTHER FUNDS (CONTINUED) Summarized financial information for the more significant sponsored funds as of December 31, 2025 is as follows: | | Nestor
Partners | Millburn MCo
Partners L.P. | Global
Macro Trust | Apollo Fund | Millburn
Multi-Markets
Trading L.P. | |-----------------------|-----------------------------|-------------------------------|-------------------------------|------------------------------|-------------------------------------------| | Assets
Liabilities | \$ 107,942,604
1,447,573 | \$ 107,200,206
204,679 | \$
56,420,210
1,670,891 | \$
138,924,726
218,876 | \$
294,405,991
3,059,485 | | Net asset value | \$ 106,495,031 | \$ 106,995,527 | \$
54,749,319 | \$
138,705,850 | \$
291,346,506 | The combined net asset value of other sponsored funds as of December 31, 2025 is \$625,580,184. As the sponsor, the Company conducts and manages the respective businesses of the sponsored funds. The governing documents of the sponsored funds typically require the Company, as sponsor, to maintain a specified investment in the respective fund. Such minimum investments generally are 1% of either net assets, total assets or total net contributions or a minimum dollar amount (if greater). In addition, the governing documents for one of the sponsored funds require the Company to maintain a minimum net worth equal to an amount determined by the total net contributions made to the entity for which the Company serves as the sponsor, not to exceed one million dollars. These requirements are defined in each of the respective governing documents of the sponsored funds and the Company is in compliance with all such requirements. For managing the businesses of the sponsored funds, the Company earns management and commission fees based on the terms of the respective governing documents of the sponsored funds. As of December 31, 2025, the Company had a receivable of \$1,384,235 from the sponsored funds for such fees. The Company earns a profit share allocation from certain sponsored funds, which are generally based on 20% of the sponsored fund's trading profits, as specified in the governing documents of the sponsored funds. The Company also receives administrative fees and reimbursements of certain costs from several of the sponsored funds according to the governing documents of the sponsored funds for direct and indirect expenses paid on their behalf by the Company. The Company records a receivable from the funds when such amount is incurred. As of December 31, 2025, the Company had a receivable of \$721,810 from the sponsored funds for such administrative expenses. During 2025, the Company also invested in various other funds. At December 31, 2025, the value of such investments is \$4,058,702. The Company also has investments in registered investment companies for which it serves as the sub-adviser. Investments in registered investment companies can be redeemed on a daily basis. Generally, all investments in other funds can be redeemed from the other funds on a monthly basis. In addition, these funds generally attempt to achieve capital appreciation through investing in stocks, futures contracts, forward currency contracts and interest rate instruments. At December 31, 2025, the Company has no explicit unfunded commitments related to its investments in sponsored funds and other funds. {11}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 3. EQUITY METHOD INVESTMENT Quadrant's Statement of Financial Condition as of December 31, 2025 was as follows: | Current assets
Non-current assets | \$
22,315,413
382,015 | |------------------------------------------------------------------------------------------------------|-----------------------------------------------------------| | Total assets | \$
22,697,428 | | Current liabilities
Non-current liabilities
Total liabilities | \$
958,177
997,769
1,955,946 | | Paid-in capital
Retained earnings
Total owner's equity
Total liabilities and owner's equity | \$
1,430,820
19,310,662
20,741,482
22,697,428 | ## Note 4. FAIR VALUE Fair value, as defined in the *Fair Value Measurement* Topic of the Codification, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy, as set forth in the *Fair Value Measurement* Topic of the Codification, prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: quoted market prices in active markets for identical assets or liabilities (Level 1); inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2); and unobservable inputs for an asset or liability (Level 3). If the inputs used to measure a financial instrument fall within different levels of the fair value hierarchy, the categorization is based on the lowest level input that is significant to the measurement of that financial instrument. The Company recognizes transfers between fair value hierarchy levels at the beginning of the reporting period. During the year ended December 31, 2025, there were no transfers between fair value hierarchy levels. The following summarizes the assets held directly by the Company accounted for at fair value at December 31, 2025 using the fair value hierarchy: | | December 31, 2025 | | | | | | | | | | | | |--------------------------------------|-------------------|------------|---------|---|---------|---|---------|------------|----------------------------|------------|-------|--| | | | | Level 1 | | Level 2 | | Level 3 | | Practical
Expedient (3) | | Total | | | Assets | | | | | | | | | | | | | | Short-term money market fund(2) | \$ | 14,754,142 | \$ | - | \$ | - | \$ | - | \$ | 14,754,142 | | | | Investments in United States | | | | | | | | | | | | | | government securities, at fair value | | 629,033 | | - | | - | | - | | 629,033 | | | | Investments in sponsored funds(1) | | - | | - | | - | | 18,564,725 | | 18,564,725 | | | | Investments in other funds | | 3,821,972 | | - | | - | | 236,730 | | 4,058,702 | | | | Total | \$ | 19,205,147 | \$ | - | \$ | - | \$ | 18,801,455 | \$ | 38,006,602 | | | (1) See Note 2 for the fair value of the more significant funds within this category. (2) Included in cash and cash equivalents on the consolidated statement of financial condition. (3) In accordance with FASB ASC 820-10, the investments in sponsored funds and investments in other funds, that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, have not been classified in the fair value hierarchy. The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. {12}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 5. RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with affiliated companies. The Company pays a fee to Millburn International (Europe) LLP ("Europe") for providing prospective investors and interested parties with information about the Company and its investment and trading strategy. Per agreements with the affiliated company, the Company agrees to pay Europe actual cost of providing the service plus 10% of such costs. The fee charged by Europe was \$1,112,600, and is part of Marketing expenses for the year ended December 31, 2025. At December 31, 2025, the Company owes \$21,349 to Europe for providing prospective investors and interested parties with information about the Company. The Company may reimburse or be reimbursed for certain costs by members and affiliates or may refund members for any excess non-resident tax withholding refunded to the Company. Such amounts are included in due to affiliated company. The Company charges Goodsmith Partners L.P. (Goodsmith) administrative fee of \$2,500 per annum. Goodsmith will pay the fee when it receives distributions. The Company has advanced loans to related parties. Such amounts are included in due from affiliated companies. As of the reporting date, the outstanding balances of these loans were as follows: | Shanghai Quadrant Asset Management Co. Ltd. | \$
54,215 | |---------------------------------------------|---------------| | Goodsmith Partners LLC | 2,500 | | Millburn Management LLC | 75,000 | | Millburn Capital LLC | 135,000 | | Total due from affiliated companies | \$
266,715 | ## Note 6. INVESTING ACTIVITIES AND RELATED RISKS The Company's investments in sponsored funds and other funds are subject to the market and credit risks of futures contracts, options on futures contracts, forward currency contracts and other financial instruments traded by the funds (collectively, derivatives). Additionally, the sponsored funds and other funds invest in stocks and United States government securities. The Company also invests in United States government securities. As such, the Company is exposed, directly and indirectly to the extent of its investments in sponsored funds and other funds, to both market risk, the risk arising from changes in the fair value of the contracts, and credit risk, the risk of failure by another party to perform according to the terms of a contract. The Company is subject to the risk of loss to the extent of the fair value of its investments in sponsored funds and other funds and, in certain specific circumstances, distributions, dividends and redemptions received. For derivatives, risks arise from changes in the fair value of the contracts. Theoretically, the Company is exposed, indirectly to the extent of its investments in other funds, to a market risk equal to the notional contract value of futures, forward currency and other derivative contracts purchased and liability on such contracts sold short. In addition, since forward currency contracts are traded in unregulated markets between principals, the Company indirectly, to the extent of its investments in sponsored funds and other funds, also assumes the risk of loss from counterparty nonperformance. {13}------------------------------------------------ ### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 6. INVESTING ACTIVITIES AND RELATED RISKS (CONTINUED) In addition, the Company, through its investments in sponsored funds and other funds, is indirectly exposed, to the extent of its investments in other funds, to various trading activities including investments in stocks that are typically traded on an exchange or in the over-the-counter market. The sponsored funds and other funds also sell stock not owned at the time of sale (a short sale). Risks arise from short sales due to the possible illiquidity of the securities markets and from potential adverse movements in stock values. Theoretically, short sales expose the sponsored funds and other funds to potentially unlimited liability as the sponsored funds' and other funds' ultimate obligation to purchase a stock sold short may exceed the amount recorded. The Company directly and indirectly, through its investments in sponsored funds and other funds, is exposed to the extent of its investments to United States government securities. Risks arise from investments in United States government securities due to possible illiquidity and the potential for default by the issuer. United States government securities are also particularly sensitive to changes in interest rates, economic conditions and conditions specific to the issuer. Lastly, the Company, through its investments in sponsored funds and other funds, invests in certain fund of funds. The Company's investments in fund of funds are subject to the market and credit risk of securities and financial instruments held or sold short by these entities. The Company has established procedures to actively monitor market risk and minimize credit risk of its own investing activities, as well as the trading and investing activities of the sponsored funds and other funds. There can be no assurance that the Company will, in fact, succeed in doing so. The Company maintains its cash and cash equivalents at financial institutions. Balances on deposit at such financial institutions are frequently in excess of available federal deposit insurance. In the event of a financial institution's insolvency, recovery of the Company's assets on deposit may be limited to available federal deposit insurance or other protection afforded such deposits. Additionally, the Company, in its capacity as general partner, managing owner or managing member of the sponsored funds, is subject to certain additional risks of loss and liability for the activities of the sponsored funds. ## Note 7. LEASE COMMITMENTS The Company leases 22,523 square feet of office space in New York City and 3,719 square feet of office space in Rye Brook, New York under noncancelable leases. The New York City lease expires on June 30, 2029, and the original Rye Brook lease expires on March 31, 2024. The Company amended the Rye Brook lese in October 2023 to extend its terms to May 31, 2027. {14}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 7. LEASE COMMITMENTS (CONTINUED) The Company recognized leases with duration greater than 12 months on the consolidated statement of financial condition. The Company determines at contract inception if an arrangement contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property for a period of time in exchange for consideration. The Company recorded the related Operating lease – right-of-use assets and liabilities at the present value of lease payments over the term. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments since the Company's leases do not provide an implicit rate of return. The borrowing rates used in the present value calculation were 5.66% for the New York City lease and 10.50% for the amended Rye Brook lease. The New York City rate is 3% above the 10-year United States Treasury Bonds at the lease commencement. The Rye Brook rates are 2% above the commercial lending rate announced by JPMorgan Chase Bank as its prime rate for 90-day unsecured loans at the lease and amendment commencement. Lease expense is recognized on a straight-line basis over the lease term. The weighted-average remaining lease term is 3.46 years, and the weighted-average discount rate is 5.75%. The future minimum lease payments are as follows: | | Operating | |--------------------------------|-----------------| | | Lease Payments | | 2026 | \$
2,244,514 | | 2027 | 2,183,848 | | 2028 | 2,139,685 | | 2029 | 1,069,842 | | Total Operating Lease Payments | 7,637,889 | | Less: Imputed Interest | (720,738) | | Total Lease Liabilities | \$
6,917,151 | ## Note 8. COMMITMENTS AND CONTINGENCIES The Company has an unconditional irrevocable standby letter of credit with First Republic Bank, which serves as the security deposit for the Company's New York City office. Advances under the letter of credit are limited to \$500,000. The letter of credit will expire May 16, 2026; however, it automatically renews through September 28, 2029, unless written notice is received 60 days prior to the renewal date. Borrowings under the letter of credit are secured by investments in United States government securities held in First Republic Brokerage account. The Company did not have any drawdowns under the letter of credit during 2025 and does not have an outstanding balance as of December 31, 2025. ## Note 9. INDEMNIFICATIONS In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects the risk of any future obligation under these indemnifications to be remote. ## Note 10. EMPLOYEE BENEFIT PLAN The Company sponsors a 401(k) profit sharing and savings plan (the "Plan") for the benefit of its employees. The Company is the administrator of the Plan. Under the terms of the Plan, employees may elect to defer a portion of their compensation and the Company may make discretionary contributions to the Plan on behalf of its participants. {15}------------------------------------------------ #### **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** #### Note 11. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: | Deferred tax asset: | | |---------------------------------------|---------------| | Accounts payable and accrued expenses | \$
110,383 | | Due to affiliated company | 1,471 | | Operating lease –
right-of-use | 5,175 | | Deferred tax liability: | | | Furniture and equipment, net | (4,015) | | Commissions and fees receivable | (48,842) | | Deferred tax asset, net | \$
64,172 | ## Note 12. FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture, equipment and leasehold improvements consisted of the following: | Furniture and fixtures | \$
1,464,280 | |------------------------------------------------------|-----------------| | Equipment | 2,119,492 | | Office art | 218,275 | | Leasehold improvements | 223,362 | | Software | 34,443 | | Total furniture and equipment | 4,059,852 | | Less: accumulated depreciation | (3,341,860) | | Furniture, equipment and leasehold improvements, net | \$
717,992 | ## Note 13. SEGMENT REPORTING The Company as a broker-dealer is engaged in a single line of business as stated in Note 1. Organization and Summary of Significant Accounting Policies. The Company has designated the executive committee, comprising the Co-CEOs and President as the chief operating decision maker ("CODM"). The CODM utilizes excess net capital, see Note 12. Net Capital Requirement, as an additional measure to make operational decisions while maintaining capital adequacy. This includes considerations related to the distribution of excess cash to the members. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using the information of the Company as a whole. The segment assets are the same as those reported in the Company's consolidated statement of financial condition. ## Note 14. NET CAPITAL REQUIREMENT The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum amount of net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15:1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2025, the Company has a net capital of \$8,023,068 which was \$6,941,762 in excess of its required net capital of \$1,081,306. The Company had aggregate indebtedness of \$16,219,577 at December 31, 2025. {16}------------------------------------------------ ## **NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (CONTINUED)** #### **DECEMBER 31, 2025** ## Note 15. RECONCILIATION OF ASSETS AND LIABILITIES TO FORM X-17A-5: The accompanying consolidated statement of financial condition is prepared in accordance with U.S. GAAP and differs from the presentation in Form X-17A-5. A reconciliation of amounts reported herein by the Company on the unaudited Form X-17A-5 Part II filed with the SEC is as follows: | | | | | | | Consolidated
Statement of | | |---------------------------------------------------------|-------------------------|------------|------------------|--------------|----|------------------------------|--| | | Form X-17A-5
Part II | | Reclassification | | | Financial
Condition | | | | | | | | | | | | ASSETS | | | | | | | | | Cash and cash equivalents | | 14,977,212 | \$ | 8,781,291 | \$ | 23,758,503 | | | Commissions and fees receivable | | | | 9,958,268 | | 9,958,268 | | | Investments in sponsored funds, at fair value | | | | 18,564,725 | | 18,564,725 | | | Investments in other funds, at fair value | | 3,821,973 | | 236,729 | | 4,058,702 | | | Investments in subsidiaries | | 8,975,774 | | (8,975,774) | | | | | Redemptions receivable from sponsored funds | | | | 563,478 | | 563,478 | | | Investment in United States government securities | | | | | | | | | (amortized cost - \$628,476) | | | | 629,033 | | 629,033 | | | Operating lease - right-of-use assets | | | | 6,324,822 | | 6,324,822 | | | Furniture and equipment net of accumulated depreciation | | 7,042,814 | | (6,324,822) | | 717,992 | | | Equity method investment | | | | 572,328 | | 572,328 | | | other assets | | 31,097,529 | | (30,352,310) | | 745,219 | | | Due from affi liated companies | | | | 266,7 15 | | 266,7 15 | | | other receivables | | | | 88,4 10 | | 88,410 | | | Deferred tax asset | | | | 64,172 | | 64,172 | | | Total assets | \$ | 65,915,302 | \$ | 397,065 | \$ | 66,312,367 | | | LIABILITIES AND EQUITY | | | | | | | | | Liabilities: | | | | | | | | | Accounts payable and accrued expenses | \$ | 22,544,400 | \$ | (8,922,478) | \$ | 13,621,922 | | | Member distributions payable | | | | 2,000,000 | | 2,000,000 | | | Operating lease - liabilities | | | | 6,917,151 | | 6,917,151 | | | Due to affi liated company | | | | 22,246 | | 22,246 | | | Total liabilities | | 22,544,400 | | 16,919 | | 22,561,319 | | | Equity | | 43,370,902 | | 380,146 | | 43,751,048 | | | Total liabilities and equity | | 65,915,302 | \$ | 397,065 | \$ | 66,312,367 | | ## Note 16. SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 31, 2026, the date the consolidated financial statement was available to be issued and determined there were no further subsequent events that require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.