# STONE KEY SECURITIES LLC X-17A-5 (2025-02-18) — Broker-dealer annual report - Company: STONE KEY SECURITIES LLC - Form: X-17A-5 - Filed: 2025-02-18 - Period: 2024-12-31 - Accession: 0001476944-25-000001 - CIK: 1476944 - File #: 8-68440 - Type: Broker-dealer - Material weakness: No - Auditor: BDG-CPAs - Auditor location: Ridgewood, NJ - Contact: Allen L. Weingarten - Phone: 2039303733 - Email: murfirer@stonekey.com - Website: stonekey.com - Signed by: Michael J. Urfirer (Chairman & Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1476944/000147694425000001/Public2024SKSAudit.pdf --- {0}------------------------------------------------ Wh>/ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: EŽǀ͘ϯϬ͕ϮϬϮϲ Estimated average burden hours per response: SEC FILE NUMBER 8-68440 # **ANNUAL REPORTS FORM X-17A-5 PART III** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/24 | | 12/31/24 | | |-----------------------------------------------------------------------------------------|----------|--|----------|--| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Stone Key Securities LLC TYPE OF REGISTRANT (check all applicable boxes): ܆ Broker-dealer ܆ Security-based swap dealer ܆ Major security-based swap participant ܆ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 411 West Putnam Avenue, Suite 110 | (No. and Street) | | | | | | |----------------------------------------------------------------------------------------------------------|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | CT | | 06830 | | | | | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | (203)
930-3737 | murfirer@stonekey.com | | | | | | (Area Code – Telephone Number) | | | | | | | | | | | | | | BDG-CPAs,
PC
_____________________________________________________________________________________ | | | | | | | Ridgewood | NJ | 07450 | | | | | (City) | (State) | (Zip Code) | | | | | | 1167 | | | | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | _____________________________________________________________________________________
_____________________________________________________________________________________
(Email Address)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name – if individual, state last, first, and middle name)
_____________________________________________________________________________________
_____________________________________________________________________________________ | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.** {1}------------------------------------------------ | Michael J. Urfirer | _ swear (or affirm) that, to the best of my knowledge and belief, the | | |---------------------------------------------------------------------|-----------------------------------------------------------------------|--| | financial report pertaining to the firm of Stone Key Securities LLC | as of | | | A nos. | | | ![](_page_1_Figure_3.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ Report on Audit of Statement of Financial Condition Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 December 31, 2024 {3}------------------------------------------------ Contents December 31, 2024 | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **Report of Independent Registered Public Accounting Firm** To the Member of Stone Key Securities LLC: #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Stone Key Securities LLC (the "Company") as of December 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the 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 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial 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 financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as Stone Key Securities LLC's auditor since 2014. BDG-CPAs, PC Ridgewood, New Jersey February 14, 2025 {5}------------------------------------------------ Statement of Financial Condition December 31, 2024 #### **Assets** | Cash and cash equivalents | \$
161,135 | |-----------------------------------------------------|---------------| | Prepaid expenses | 1,336 | | Total assets | \$
162,471 | | | | | Liabilities and Member's Equity | | | Liabilities - accounts payable and accrued expenses | \$
21,197 | | Member's equity | 141,274 | | Total liabilities and member's equity | \$
162,471 | *See accompanying notes to financial statement.* {6}------------------------------------------------ Notes to Financial Statement December 31, 2024 \_\_ #### **1. Organization and Business** Stone Key Securities LLC (the "Company"), a Delaware limited liability company, was formed on May 18, 2009. The Company is a wholly owned subsidiary of Stone Key Group LLC (the "Parent Company"). Since December 21, 2010, the Company has been registered as a broker dealer with the Securities and Exchange Commission ("SEC") and has been a member of the Financial Industry Regulatory Authority ("FINRA") and Securities Investor Protection Corporation ("SIPC"). The Company is registered as a broker dealer in the states of Connecticut and New York and maintains its office in Greenwich, Connecticut. #### **2. Summary of Significant Accounting Policies** The financial statement of the Company has been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") has become the exclusive reference of authoritative US GAAP recognized by the FASB to be applied by non-governmental entities. The following is a summary of significant accounting policies used in preparing the financial statement: #### *Use of Estimates* The preparation of the financial statement in conformity with US GAAP requires management to make estimates and assumptions that affect amounts and disclosures in the financial statement. Actual results could differ from those estimates. #### *Cash and Cash Equivalents* The Company considers amounts due from banks and all highly liquid investments, including those with an initial maturity of three months or less, to be cash equivalents. #### *Accounts Receivable and Other Receivables* Receivables are considered fully collectible by management and, accordingly, no allowance for doubtful accounts is considered necessary. {7}------------------------------------------------ Notes to Financial Statement December 31, 2024 #### **2. Summary of Significant Accounting Policies (continued)** ### *Income Taxes* The Company is a disregarded entity for federal income tax purposes and is, therefore, required to be treated as a division of its single member. The earnings and losses of the Company are included in the tax return of Stone Key Group LLC. The Company is not subject to income taxes in any jurisdiction. Each member of Stone Key Group LLC is responsible for the tax liability, if any, related to its proportionate share of the Company's taxable income. No provision for federal or state income taxes has been made in the accompanying financial statement since such liabilities, if any, are the responsibility of the Company's sole member. The authoritative guidance issued by FASB requires management to determine whether it is more likely than not that a tax position will be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon settlement. De-recognition of a tax benefit previously recognized could result in the Company recording a tax liability that would reduce net assets. Tax penalties and interest, if any, would be accrued as incurred and would be recorded on the statement of operations. Management's conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations, and interpretations thereof as well as other factors. Generally, federal, state, and local authorities may examine the Company's tax returns (as part of Stone Key Group LLC's returns) for three years from the date of filing. These returns generally remain open for examination for three years from the date filed with each taxing jurisdiction. #### **3. Concentration of Credit Risk** The Company's cash and cash equivalent balances, maintained at a financial institution, may at times be in excess of the amount insured by the Federal Deposit Insurance Corporation. Management regularly monitors the financial condition of the institution in order to keep the potential risk to a minimum. The Company is engaged in various advisory, valuation, and private placement activities in which the counterparties include 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 or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. {8}------------------------------------------------ Notes to Financial Statement December 31, 2024 #### **4. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3- 1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. On December 31, 2024, the Company had net capital of \$139,938, which was \$39,938 in excess of its required net capital of \$100,000. The Company's aggregate indebtedness to net capital ratio was 0.15 to 1. #### **5. Subsequent Events** The Company's management has evaluated the period from January 1, 2025 to February 14, 2025, the date the financial statement was available to be issued, for subsequent events requiring recognition or disclosure in the financial statement. No material subsequent events were identified. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.