# LOCUST WALK SECURITIES, LLC X-17A-5 (2025-03-25) — Broker-dealer annual report - Company: LOCUST WALK SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-03-25 - Period: 2024-12-31 - Accession: 0001509400-25-000001 - CIK: 1509400 - File #: 8-68771 - Type: Broker-dealer - Material weakness: No - Auditor: Berrry, Dunn, McNeil & Parker LLC - Auditor location: Portland, ME - Contact: Geoffrey Meyerson - Phone: 617-300-0162 - Email: gmeyerson@locustwalk.com - Website: locustwalk.com - Signed by: Geoffrey Meyerson (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1509400/000150940025000001/LWSpublic.pdf --- {0}------------------------------------------------ **LOCUST WALK SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION PURSUANT TO 17a-5(d) OF THE SECURITIES AND EXCHANGE COMMISSION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2024** {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III | OMB Number: 3235-0123
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12 | | | | | SEC FILE NUMBER | | | | | 8-68771 | | | | OMB APPROVAL #### 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 1/1/2024 AND ENDING 12/31/2024 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: LOCUst Walk Securities, LLC TYPE OF REGISTRANT (check all applicable boxes): @ Broker-dealer □ Security-based swap dealer I afaunti - a'i a 10 □ Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | (No. and Street) | | | |----------------------------------------------|---------------------------------------------------------------------------|--------------------------|--| | Boston | MA | 8211 | | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Geoffrey Meyerson | 617-300-0162 | gmeyerson@locustwalk.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | Berry, Dunn, McNeil & Parker, LLC | | | | | | (Name - if individual, state last, first, and middle name) | | | | 2211 Congress Street | Portland | ME | 04102 | |--------------------------------------------------|-----------------------|---------|--------------------------------------------| | (Address) | (City) | (State) | (Zip Code) | | 10/08/2003 | | 136 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Geoffrey Meyerson , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Locust Walk Securities, LLC as of 12/31 2 024 , is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, a the any proprietary interest in any account more on any account classified soley as that of a customer. > Daria L. Pedersen Notary Public, Commonwealth of Massachusetts ly Commission Expires November 10, 2028 Signature: Title: CEO Notary Public #### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - O (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - O (f) Statement of changes in liabilities subordinated to claims of creditors. - O (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - @ (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. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ {w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17-12, as applicable. - [ {y} Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Locust Walk Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Locust Walk 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 U.S. generally accepted accounting principles. #### **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 the Company's auditor since 2020. Portland, Maine March 24, 2025 {4}------------------------------------------------ ### **LOCUST WALK SECURITIES, LLC** #### **STATEMENT OF FINANCIAL CONDITION** ### **DECEMBER 31, 2024** #### **ASSETS** | Cash | \$
1,314,474 | |---------------------------------------------------------|-----------------| | Accounts receivable, net of allowance for credit losses | - | | Accounts receivable from Parent | 2,228,929 | | Prepaid expenses | 18,593 | | Total Assets | \$
3,561,996 | #### **LIABILITIES AND MEMBER'S EQUITY** | Liabilities: | | |---------------------------------------|--------------| | Accounts payable and accrued expenses | \$
37,890 | | Accounts payable to Affiliate | 833,282 | | Total Liabilities | 871,172 | | Member's Equity | 2,690,824 | | Total liabilities and member's equity | \$ 3,561,996 | The accompanying notes are an integral part of this financial statement. {5}------------------------------------------------ ### **LOCUST WALK SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024** ### **1. ORGANIZATION AND NATURE OF BUSINESS** Locust Walk Securities, LLC (the "Company") was organized in the state of Delaware on December 14, 2010 as a limited liability company ("LLC"). The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC"), and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company provides advisory services including merger and acquisition, restructuring, valuation, and capital raising for clients. The Company is a wholly owned subsidiary of Locust Walk Partners LLC (the "Parent"). The accompanying financial statement has been prepared from the separate records maintained by the Company and, due to certain transactions and agreements with affiliated entities, may not necessarily be indicative of the financial condition that would have existed had the Company operated as an unaffiliated entity. ### **2. SIGNIFICANT ACCOUNTING POLICIES** ### Cash The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. ## Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 326-20, *Financial Instruments - Credit Losses.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis, the allowance for credit losses is reported as a valuation account on the statement of financial condition that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported as credit loss expense in earnings. As of December 31, 2024, the Company had recorded an allowance for credit losses of \$834,542 which represented the Company's entire outstanding accounts receivable balance. Bad debts are written off against the allowance when identified. As of December 31, 2023, accounts receivable was \$125,000 and the Company did not have an allowance for credit losses. ### Concentrations of Credit Risk The Company maintains cash accounts at financial institutions. The accounts are insured by the Federal Deposit Insurance Corporation ("FDIC"). At times, cash may be uninsured or in deposit accounts that exceed the FDIC insurance limit. The Company has not experienced any losses in the accounts. The Company believes it is not exposed to any significant risk on cash. Management periodically assesses the financial condition of these financial institutions and believes that any potential credit loss is minimal. {6}------------------------------------------------ ### **LOCUST WALK SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024** ## **2. SIGNIFICANT ACCOUNTING POLICIES – continued** ### Use of Estimates The preparation of the financial statement in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statement. Actual results could differ from those estimates and those differences could be significant. ### Income Taxes The Company, with the consent of its Parent, has elected to be treated as a single member LLC for federal and state income tax purposes. Thus, taxable income (or loss) is passed through to the Parent of the Company, and not taxed at the Company level. Thus, there is no provision or liability for income taxes in this financial statement. The Company assesses the recording of uncertain tax positions by evaluating the minimum recognition threshold and measurement requirements a tax position must meet before being recognized as a benefit in the financial statement. The Company has not recognized a liability for any uncertain tax benefits as of December 31, 2024. The Company does not expect any material change in uncertain tax benefits within the next twelve months. ## **3. NET CAPITAL** 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. At December 31, 2024, the Company had net capital of \$443,302 which was \$343,302 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital as of December 31, 2024 was 1.97 to 1. ### **4. CONCENTRATIONS** One client accounted for 93% of accounts receivable as of December 31, 2024. ### **5. COMMITMENTS AND CONTINGENCIES** The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. As of December 31, 2024, the Company is not involved in any legal proceedings which are not in the ordinary course of business. {7}------------------------------------------------ ### **LOCUST WALK SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024** ### **6. RELATED PARTIES** The Company has an Expense Sharing Agreement in place with the Parent for services that are shared and paid or received by the Parent. In addition, the Company has an Expense Sharing Agreement with Locust Walk Services Corporation, a related party through common ownership, (the "Affiliate"), for administrative and other expenses that are shared and paid by the Affiliate. As of December 31, 2024, expenses shared totaled \$19,748. The expenses shared were \$4,766 with the Parent and \$14,982 with the Affiliate. The Parent and Affiliate may also pay expenses on behalf of the Company and the Company may pay expenses on behalf of the Parent and Affiliate. The Company, Parent, and Affiliate reimburse one another for these expenses as well as the shared expenses. The amounts not yet reimbursed for expenses reimbursable to the Company from the Parent have been included in accounts receivable from Parent in the accompanying statement of financial condition, in the amount of \$2,228,929 and amounts reimbursable to the Affiliate are included in Accounts payable to Affiliate in the amount of \$833,282. ### **7. SUBSEQUENT EVENTS** The Company's management has evaluated the effect which subsequent events may have on this financial statement. Management's evaluation was completed on March 24, 2025, the date this financial statement was issued. ### **8. SINGLE REPORTABLE SEGMENT** The Company is engaged in a single line of business which consists of investment banking services. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business to manage the Company. 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 measure of segment assets is reported on the statement of financial condition as total assets. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.