# HARKEN CAPITAL SECURITIES, LLC X-17A-5 (2025-08-26) — Broker-dealer annual report - Company: HARKEN CAPITAL SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-08-26 - Period: 2025-06-30 - Accession: 0001546132-25-000003 - CIK: 1546132 - File #: 8-69077 - Type: Broker-dealer - Material weakness: No - Auditor: Larry D. Liberfarb, PC - Auditor location: Norwood, MA - Contact: Donald Nelson - Phone: 617-899-2048 - Email: info@liberfarb.com - Website: liberfarb.com - Signed by: Donald Nelson (Managing Director, CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1546132/000154613225000003/Harken2025Audit.pdf --- {0}------------------------------------------------ , D.C. 20549 Estimate HANGE COMMISSION OMB NL SТЛTES SECURITIES AND EXCHITED Washington ed average burden er response: 12 umber: 3235-0123 Nov. 30, 2026 OMB APPROVAL hours pe Expires: S 8-6907 EC FILE NUMBER #### T II REPORTS 1170 5 PAR ANNUAL ΓOR4 V G PAGE FACINO noo Act of 1021 ond 18 7 undor tho зоrition Exch Aurouant to Bulo 170 E 17 17 hbek Βραυ 2025 AND EN 4 06/301 ERIOD BEG 07/01/202 FILING FOR THE PРЕ ΣΠΙΑΤ D ΤΙΗΙΓ ΟΓ > D/YY MM/DD MM/DD/YY IDENTIFICATION A. REGISTRANTІ #### ies, LLC Harken Capital Securit H NAME OF FIRM: ANT (check all applicable boxes): TYPE OF REGISTRA er espondent is also an OTC derivatives dealeCheck here if r Security-based swap dealen Broker-dealer p participant Major security-based swa t use a P.O. box no.) CIPAL PLACE OF BUSINESS: (Do not ADDRESS OF PRIN #### al Road 16 Ann Vina | | 1Stroot)
(Mo | | | |-------------------------------------------------------|-------------------------------------|-------------------------------|------------------------| | Scituate | MA | | 02066 | | (City) | (State) | | (Zip Code) | | PERSON TO CONT | ACT WITH REGARD TO THIS FILING | | | | Donald Nel:
son | 617-899-
2048 | don@harH | Kencapital.com | | (Name) | ohone Number)
(Area Code - Telep | (Email Address | | | | B. ACCOUNTANT | IDENTIFICATION | | | INDEPENDENT PU | BLIC ACCOUNTANT whose reports | are contained in this filing* | | | erfarb, PС
Larry D. Lib | (Name - if individual, state | last, first, and middle name) | | | 11 Vanderh
ilt Aveпe #2201 | wood
Non | MA | 02062 | | (Address) | (City) | (State) | (Zip Code) | | 01/10/2006 | | 2560 | | | vith PCAOB)(if applicable)
(Date of Registration v | | (PCAOB Registration | Number, if applicable) | xemption. See 1/ ependent public cumstances relied on as the basis of the e -ports be covered by the reports of an inde supported by a statement of tacts and cir (ii), if applicable. n from the requirement that the annual re accountant must be CFR 240.17a-5(e)(1) \* Claims for exemptio Enondunless the form atained in this form are not required to re alid OMB control number. nond to the collection of information cor displays a currently va Rersons who are to re {1}------------------------------------------------ ### OATH OR AFFIRMATION | L Donald Nelson | swear (or affirm) that, to the best of my knowledge and belief, the | |-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining | as of
to the firm of
Harken Capital Securities, LLC | | June 30 | 2025 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. State of: Massachusetts
County of: Norfolk
Signature:
The foregoing document was acknowledged
before me 22 day of 08 25 Ttle:
S
Managing Director, CEO
Zadi, Notary Public
Syed
My Commission Expires 06/15/29 | | | 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). - (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. - (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. - 미 (1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - 마 (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 report or 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. - 미 (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 240.17a-12(k). - 미 (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}------------------------------------------------ ### REPORTS PURSUANT TO RULES 17a-5(d) #### YEAR ENDED JUNE 30, 2025 {3}------------------------------------------------ # LARRY D. LIBERFARB, P.C. #### CERTIFIED PUBLIC ACCOUNTANTS AND FINANCIAL ADVISORS 11 Vanderbilt Avenue, Suite 220, Norwood, Massachusetts 02062 Tel. (781) 255-8800 Fax (781) 255-9217 E-Mail: Info@Liberfarb.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Harken Capital Securities LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Harken Capital Securities LLC as of June 30, 2025, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Harken Capital Securities LLC as of June 30, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Harken Capital Securities LLC's management. Our responsibility is to express an opinion on Harken Capital Securities LLC's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Harken Capital Securities LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. # Auditor's Report on Supplemental Information The computation of aggregate indebtedness and net capital pursuant to SEC Rule 15c3-1 (Schedule I) and computation for determination of reserve and information relating to possession and control requirements for broker dealers under Rule 15c3-3 of the Securities and Exchange Commission (Schedule II) has been subjected to audit procedures performed in conjunction with the audit of Harken Capital Securities LLC's financial statements. The supplemental information is the responsibility of Harken Capital Securities LLC's management. Our audit procedures included determining whether the supplemental information reconciles {4}------------------------------------------------ to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the computation of aggregate indebtedness and net capital pursuant to SEC Rule 15c3-1 and computation for determination of reserve and information relating to possession and control requirements for broker dealers under Rule 15c3-3 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole. , PC Larry . Liberfarb, P.C. We have served as Harken Capital Securities LLC's auditor since 2012. Norwood, Massachusetts August 19, 2025 {5}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### JUNE 30, 2025 #### ASSETS | Total assets | \$ 689,053 | |--------------------------------|------------| | Other assets | 334 | | Prepaid expenses | 18,115 | | Receivables from non-customers | 578,484 | | Cash | \$ 92,120 | #### LIABILITIES AND MEMBERS' EQUITY #### LIABILITIES: | Total liabilities and members' equity | \$ 689,053 | |---------------------------------------|------------| | Members' capital | 665,734 | | MEMBERS' EQUITY: | | | Accounts payable and accrued expenses | \$ 23,319 | {6}------------------------------------------------ #### STATEMENT OF OPERATIONS #### FOR THE YEAR ENDED JUNE 30, 2025 | REVENUES: | | |--------------------------------|----------------| | Success fees | \$
100,000 | | Retainers | 516,042 | | Reimbursed expenses | 9,568 | | Other income | 1,836 | | Total income | 627,446 | | EXPENSES: | | | Compensation | 323,193 | | Guaranteed payments to members | 1,124,766 | | General operating | 66,749 | | Marketing | 547 | | Professional services | 97,757 | | Regulatory | 21,107 | | Rent | 4,002 | | Technology and communication | 21,144 | | Taxes | 165,852 | | Total expenses | 1,825,117 | | NET LOSS | \$ (1,197,671) | {7}------------------------------------------------ #### STATEMENT OF CHANGES IN MEMBERS' EQUITY #### FOR THE YEAR ENDED JUNE 30, 2025 | BALANCE, July 1, 2024 | \$ 1,863,405 | |------------------------|--------------| | Net loss | (1,197,671) | | BALANCE, June 30, 2025 | \$ 665,734 | {8}------------------------------------------------ #### STATEMENT OF CASH FLOWS #### FOR THE YEAR ENDED JUNE 30, 2025 | CASH FLOWS FROM OPERATING ACTIVITIES: | | |---------------------------------------------------------|---------------| | Net income (loss) | \$(1,197,671) | | Adjustments to reconcile net income to net cash used by | | | operating activities: | | | | | | Decrease in other assets | 420 | | Decrease in receivables from non-customers | 1,211,286 | | Increase in prepaid expenses | (18,115) | | Increase in accounts payable and accrues expenses | 20,868 | | Net cash provided by operating activities | 16,788 | | NET INCREASE IN CASH | 16,788 | | CASH, at beginning of year | 75,332 | | CASH, at end of year | \$ 92,120 | {9}------------------------------------------------ # HARKEN CAPITAL SECURITIES LLC NOTES TO FINANCIAL STATEMENTS # JUNE 30, 2025 # NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: The Company was organized in the State of Massachusetts on March 8, 2012, as a limited liability company. 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 identified the provision of Footnote 74 under which the Company is not required to claim an exemption from 17 C.F.R. 240.15c3-3. The Company markets financial products for its clients. #### Revenue Recognition: The Company complies with ASC Topic 606 Revenue from Contracts with Customers (ASC Topic 606). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transactions price (d) allocate the transaction price to the performance obligation in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. Success fees are earned upon the closing of a private placement transaction. During the early stages of the private placement, they receive retainer fees and upon completion of the engagement they receive success fees. Performance obligations related to retainers are considered separate and distinct from the success fee performance obligations because the benefits provided by the work done to earn retainer fees have stand-alone value to the third parties that contract with the Company for those services. ### Accounts Receivable: Accounts receivables are stated at the amount management expects to collect. This balance relates to 3 separate success fees earned to which the third parties agreed to make semi-annual payments over the next 2 years. Management provides for probable uncollectable amounts through a charge to earnings and a credit to an allowance based on the assessment of the current status of individual accounts. At June 30, 2025, Management feels that all receivables are collectable. #### Guaranteed Payments: The two owners of the Company receive their compensation in the form of guaranteed payments. {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS, CONTINUED ## JUNE 30, 2025 # NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and Cash Equivalents: For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Income Taxes: The Company does not record a provision for income taxes because the partners report their share of the partnership's income or loss on their income tax returns. The financial statements reflect the partnership's transactions without adjustment, if any, required for income tax purposes. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. #### NOTE 2 - 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 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1). At June 30, 2025, the Company had net capital of \$68,801, which was \$63,801 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was .34 to 1. #### NOTE 3 - OPERATING LEASE The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement. {11}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS, CONTINUED # JUNE 30, 2025 # NOTE 4 – CONCENTRATION OF CREDIT RISK Cash held in banks sometimes exceeds the Federal Deposit Insurance Corporation's (FDIC) insurance coverage of \$250,000, and as a result there may be a concentration of credit risk related to the amount in excess of FDIC insurance coverage. # NOTE 5– COMMITMENTS AND CONTINGENCIES The Company at June 30, 2025, has no unfulfilled contract, commitments, or contingencies. # NOTE 6 – SEGMENT REPORTING The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including securities placement fees, both primary and secondary. The accounting policies for fees are the same as those described in the summary of significant accounting policies. The chief operating decision maker assesses performance for the agency fee segment and decides how to allocate resources based on net income that is reported on the income statement. The measurement of segment assets is reported on the balance sheet as total assets. The chief operating decisions maker uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the agency fee segment or into other parts of the entity. The chief operating decision maker also uses net income in competitive analysis by benchmarking competitors. The Company derives revenue primarily from North America. The Company's chief operating decision maker is the managing member. # NOTE 7-– SUBSEQUENT EVENTS Management has evaluated subsequent events through August 19, 2025, the date on which the financial statements were available to be issued. There were no subsequent events that require adjustment or disclosure in the financial statements. {12}------------------------------------------------ # SUPPLEMENTARY INFORMATION {13}------------------------------------------------ # SCHEDULE I # HARKEN CAPITAL SECURITIES LLC # COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES EXCHANGE ACT OF 1934 #### JUNE 30, 2025 #### CREDIT: | Total members' equity | 665,734 | |------------------------------------------------------------|--------------| | DEBITS: | | | Nonallowable assets: | | | Receivables from non-customers | 578,484 | | Prepaid expenses | 18,115 | | Other assets | 334 | | Total debits | 596,933 | | NET CAPITAL | 68,801 | | Minimum requirement of 6-2/3% of aggregate indebtedness of | | | \$23,319 or \$5,000, whichever is greater | 5,000 | | Excess net capital | \$
63,801 | | AGGREGATE INDEBTEDNESS: | | | Accounts payable and accrued expenses | \$
23,319 | | RATIO OF AGGREGATE INDEBTEDNESS TO NETТ CAPITAL | .34 to 1 | NOTE: There are no material differences between the above computation of net capital and the corresponding computation as submitted by the Company with the unaudited Form X-17A-5 as ofJune 30, 2025. See Independent Registered Public Accountants Firm's Report. {14}------------------------------------------------ # LARRY D. LIBERFARB, P.C. CERTIFIED PUBLIC ACCOUNTANTS AND FINANCIAL ADVISORS 11 Vanderbilt Avenue, Suite 220, Norwood, Massachusetts 02062 Tel. (781) 255-8800 Fax (781) 255-9217 E-Mail: Info@Liberfarb.com #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Harken Capital Securities LLC We have reviewed management's statement, included in the accompanying Exemption Report, in which (1) Harken Capital Securities LLC identified that it was filing the exemption report solely to be in compliance with 17 C.F.R. 240.17a-5 (d)(1) and (4). Harken Capital Securities LLC does not claim an exemption under paragraph (k) of 17 C.F.R. 240. 15c3-3, and is relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. 240.17a-5 because the company limits its business activities exclusively to (1) receiving transaction based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker- dealers, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers (other than money or other compensation received and promptly transmitted in compliance with paragrath (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transaction via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did nor carry РАВ accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Harken Capital Securities LLC's management is responsible for compliance with Footnote 74 of the SEC Release No. 34-70073. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Harken Capital Securities LLC's compliance with the provisions of Footnote 74. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Norwogd, Massachusetts P August 19, 2025 {15}------------------------------------------------ #### ES LLC EN C AL #### IES EXCHANGE ACT OF 1934 N REPORT OKER/DEALERS UNDER ULE 17a-5 OF THE SECURITI EXEMPTIO REQUIREMENT FOR BRO RE #### 2025 June 3С -5, "Reports to required by 17 ect to Rule 17a-Lommission (17 C.F.R. §240.17a Kemption Report was prepared as is a registered broker-dealer subje --5(d)(1) and (4). sy the Securities and Exchange ain brokers and dealers"). This E> Securities, LLC (the "Company") 1 1 C.F.R. §240.17a 5 promuigated be made by certa S Harken Capital oany states the following: s knowledge and belief, the Comp To the best of its 15c3-3, and CER 8 240 mntion under (k) of 12 does not claim an exer (1) The D thout exception. out the most recent fiscal year wi 15c3-3) througho lefined in Rule a subscription nnany): (2) did n received and 4 and/or funds actions to other otherwise owe Lompany limits for identifying 74 of the SEC 1 lid not PAR nts Cas d transactions via subscriptions on er or its agent and not to the Cor nan money or other consideration aph (a) or (b)(2) of Rule 15c2- clients, referring securities transa etly or indirectly receive, hold, or C.F.R. § 240.1 /a-5 because the transaction-based compensation on Report relying on Footnote 10Γ 17 51 ats of or for cu and (3 omptly transmitted for effecting the funds are pavable to the issu es for or to customers, (other th nitted in compliance with paragr and acquisition opportunities for and the Company (1) did not dired 073 adopting am stl ot ЛT vities exclusively to: (1) receiving Company is filing this Exempti 7007 not received and pro way basis where funds or securiti promptly transm potential merger broker-dealers, a INO. 34 its business activ (2) The Dal 217 =st knowledge and belief, this Exeemption Report 1, swear (or affirm) that, to my be ct. 1, Donald Nelsor is true and corred 11I 1 -025 11:22:49 EDT) Donald Netson (Aug 22 快 Signature or. CEО Title Managing Direct See Report of Independent Regisstered Public Accounting Firm. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.