# FALCON SQUARE CAPITAL, LLC X-17A-5 (2026-03-03) — Broker-dealer annual report - Company: FALCON SQUARE CAPITAL, LLC - Form: X-17A-5 - Filed: 2026-03-03 - Period: 2025-12-31 - Accession: 0001555832-26-000003 - CIK: 1555832 - File #: 8-69147 - Type: Broker-dealer - Material weakness: No - Auditor: Batchelor Tillery & Roberts LLP - Auditor location: Raleigh, NC - Contact: Braxton Wall - Phone: 919-825-1534 - Email: bwall@falconsquarecapital.com - Website: falconsquarecapital.com - Signed by: Braxton Wall (Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1555832/000155583226000003/AuditedFinancials2025.pdf --- {0}------------------------------------------------ ### **Falcon Square Capital, LLC** Financial Statements and Supplementary Information For the Year Ended December 31, 2025 {1}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # **ANNUAL REPORTS FORM X-17A-S PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ## SEC FILE NUMBER 8-69147 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 0 1/0 | 1/20 | 25 | AND ENDING 12/31/2025 | | ---------- | |-----------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------------------------------|------------------------------------------------------------|-------------------------------|-----------------------------------------------| | | | MM/DD/YY | | | MM/DD/ Y Y | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF FIRM: Falcon Square Capital, LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here /respondent is also an OTC derivatives dealer | D Security-based swap dealer | | □ Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 3701 Lake Boone Trail, Suite 100 | | | | | | | | | (No. and Street) | | | | | Raleigh | | NC | | | 27607 | | (City) | | (State) | | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Braxton Wall | 919 825 1534 | | | bwall@falconsquarecapital.com | | | (Name) | | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | Batchelor Tillery & Roberts, LLP | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | 3605 Glenwood Avenue, Suite 350 | | Raleigh | | NC | 27612 | | (Address) | | (City) | | (State) | (Zip Code) | | 2009 | | | 3675 | | | | T"
of Re.sna{PCAOB RegfstraUoo N,mbec, ff apphcabfe) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | | | accountant must be supported by a statement offacts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Braxton Wall | swear (or affirm) that, to the best of my knowledge and belief, the | |-----------------------------------------------------------------------|---------------------------------------------------------------------| | financial report pertaining to the firm of Falcon Square Capital, LLC | as of | **12/31** 2~ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_3.jpeg) | Signature: | | |------------|--| | Title: | | Notary Public #### **This filing\*\* contains (check all applicable boxes):** - **ii!!i** (a) Statement of financial condition. - **ii!!i** (b) Notes to consolidated statement of financial condition . - **ii!!i** (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). - **ii!!i** (d) Statement of cash flows. - **ii!!i** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - **ii!!i** (g) Notes to consolidated financial statements. - **!!!ii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (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. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - **ii!!i** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - **ii!!i** (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-l, 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. - D (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. - D (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. - D (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. - D (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. - **iiiiiii** (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 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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). D (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. {3}------------------------------------------------ # BATCHELOR, TILLERY & ROBERTS, **LLP** CERTIFIED PUBLIC ACCOUNTANTS POST OFFICE BOX l.8068 RALEIGH, NORTH CAROLINA 2761.9 RONALD A. BATCHELOR WM. JAMES BLACK, JR. SCOTT E. CABANISS MICHELLE W. LEMANSKI JARED L. PILAND DAVID C. CORN, JR. **3605 GLENWOOD AVENUE,** SUITE 350 **RALEIGH, NORTH CAROLINA 2761.2 TELEPHONE(9l.9)787•82l.2 FACSIMILE (91.9) 783•6724** ## **Report of Independent Registered Public Accounting Firm** The Members Falcon Square Capital, LLC: ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Falcon Square Capital, LLC (the "Company") as of December 31, 2025, and the related statements of income, changes in members' equity, and cash flows for the year then ended, and the related notes and supplemental schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 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 the Company's management. Our responsibility is to express an opinion on the Company'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 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 statements are free of material misstatement, whether due to error or fraud. Our audit included perfonning 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. {4}------------------------------------------------ ### **Auditors' Report on Supplemental Information** The supplemental infonnation in schedules 1-3 has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfonning 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. l 7a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. £3JJJh cJ~- -f */(aLJs* llf *)* I **We** have served as the Company ditor since 2016. Raleigh, North Carolina February 26, 2026 {5}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025** #### **ASSETS** | Current Assets | | |----------------------------------------|-----------------| | Cash and Cash Equivalents | \$
88,966 | | Receivables from Clearing Organization | \$
434,414 | | Receivables from Other Broker-Dealers | \$
143,175 | | Deposits at Clearing Organization | \$
62,933 | | Total Current Assets | \$
729,488 | | Fixed Assets | | | Furniture and Equipment | \$
89,566 | | Less: Accumulated Depreciation | \$
(81,301) | | Total Fixed Assets | \$
8,265 | | Other Assets | | | Investments at Clearing Organizaiton | \$
1,272,655 | | Prepaid Expenses | \$
24,637 | | Total Other Assets | \$
1,297,292 | | TOTAL ASSETS | \$
2,035,045 | #### **LIABILITIES** & **MEMBER'S EQUITY** | \$
519,618 | |-----------------| | \$
25,021 | | \$
275,920 | | \$
820,559 | | | | \$
820,559 | | | | \$
1,214,486 | | | | \$
2,035,045 | | | **The accompanying notes are an integral part of these financial statements.** {6}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2025** | Revenues | | |--------------------------------|-----------------| | Commissions | \$
6,207,428 | | Underwriting Revenue | \$
2,024,412 | | Unrealized/Realized Gain | \$
54,348 | | Total Revenues | \$
8,286,188 | | | | | Expenses | | | Advertising and Promotion | \$
7,666 | | Bank Service Charges | \$
11,300 | | Business Licenses and Permits | \$
406 | | Clearing Charges | \$
351,419 | | Computer and Internet Expenses | \$
90,065 | | Depreciation | \$
4,560 | | Dues and Subscriptions | \$
2,250 | | Employee Compensation | \$
6,702,199 | | Insurance Expense | \$
89,987 | | Meals and Entertainment | \$
2,098 | | Office Maintenance & Supplies | \$
43,150 | | Postage and Delivery | \$
135 | | Professional Fees | \$
134,259 | | Regulatory Expenses | \$
73,383 | | Rent and Lease Expense | \$
93 ,000 | | Research Expenses | \$
897,536 | | Taxes | \$
12,391 | | Trade Error Execution | \$
12,270 | | Training and Education | \$
2,219 | | Travel | \$
11 ,873 | | Total Expenses | \$
8,542,166 | | | | | Other Income (Expense) | | | Interest Income | \$
5,275 | | Other Income | \$
308 | | Total Other Income (Expense) | \$
5,583 | | Net Income | \$
(250,395) | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2025** | Member's Equity, January 1, 2025 | \$
1,377,056 | |------------------------------------|-----------------| | Net Member Contributions for 2025 | \$
87,825 | | Net Income for 2025 | \$
(250,395) | | Member's Equity, December 31, 2025 | \$
1,214,486 | The accompanying notes are an integral part of these financial statements. · {8}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025** | Cash Flows from Operating Activities: | | |---------------------------------------------------------------------|-----------------| | Net Income | \$
(250,395) | | Adjustments to Reconcile Net Income to Net Cash | | | Provided (Used) by Operating Activities: | | | Depreciation | \$
4,560 | | Cash Flows from Changes In: | | | Receivables from Clearing Organization | \$
522,251 | | Receivables from Other Broker-Dealers | \$
73,663 | | Prepaid Expenses | \$
15,754 | | Deposits at Clearing Organziation | \$
(22,989) | | Security Deposits | \$ | | Commissions Payable | \$
(437,213) | | Accounts Payable | \$
(2,857) | | Other Liabilities - Soft Dollar | \$
12,075 | | Net Cash Used by Operating Activities | \$
(85,151) | | Cash Flows from Investing Activities | | | Purchases of Furniture and Equipment, less Accumulated Depreciation | \$
(11,116) | | Investments at Clearing Organization | \$
(16,108) | | Net Cash Used by Investing Activities | \$
(27,224) | | Cash Flows from Financing Activities | | | Member Contributions | \$
87,825 | | Net Cash Provided by Financing Activities | \$
87,825 | | Net Decrease in Cash and Cash Equivalents | \$
(24,550) | | Cash and Cash Equivalents, Beginning of the Year | \$
113,516 | | Cash and Cash Equivalents, End of the Year | \$
88,966 | **The accompanying notes are an integral part of these financial statements.** {9}------------------------------------------------ ## **Falcon Square Capital, LLC** NOTES TO FINANCIAL STATEMENTS December 31, 2025 # **NOTE 1- NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES** #### Nature of Business Falcon Square Capital, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and member of the Financial Industry Regulatory Authority ("FINRA") and the Municipal Securities Rulemaking Board ("MSRB"). It is exempt from the provisions of SEC Rule 15c3- 3 under Section(k)(2)(ii) of that same rule. The Company was incorporated in North Carolina on April 2, 2012 and granted membership to FINRA and MSRB in March 2013. #### Basis of Presentation The financial statements were prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Revenues are recognized in the period in which they are earned. Expenses are recognized in the period in which they are incurred. #### Cash and Cash Equivalents For the purpose of the statement of cash flows, the Company has defined cash equivalents as highly liquid investments, with original maturities at the date of purchase or the date of the financial statement of less than ninety days, which are not held for sale in the ordinary course of business. #### Use of Estimates The preparation of the Company's 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company has adopted the provisions of FASB ASC 740-10-25 Accounting for Uncertainty in Income States. Under the provision, the Company must recognize the tax benefit associated with tax taken for tax return purposes when it is more likely than not the position will be sustained. The implementation had no impact on the Company's financial statements. The Company does not believe there are any material uncertain tax positions and, accordingly, it will not recognize any liability for unrecognized tax benefits. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax years in progress. The Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements as of December 31, 2025. As a limited liability corporation, the tax consequences of the Company's operations all pass through to the members. Accordingly, the Company's financial statements do not include a provision for income taxes. #### Receivables The Company uses the allowance method to determine uncollectible accounts based on an analysis of expected collection rates determined from past history. Management believes that all accounts receivables are collectible as of December 31, 2025. Therefore, no allowance for doubtful accounts has been recorded. {10}------------------------------------------------ ## **Falcon Square Capital, LLC** NOTES TO FINANCIAL STATEMENTS December 31, 2025 #### Soft Dollar The Company ensures that any soft dollar arrangement with customers fall within the safe harbor provisions of Section 28(e) of the Securities Exchange Act of 1934 (Section 28(e), as amended, which provides for the payment of research, brokerages, quote services and other expenses permissible by Section 28(e)). #### Fixed Assets and Depreciation Fi xed assets are stated at cost. Depreciation is computed for financial statement purposes using the straight-line method, over the estimated useful lives of the related assets as follows : | Furniture | 5 years | |-----------|---------| | Equipment | 5 years | #### Advertising The Company expenses advertising production costs as they are incurred, and advertising communication costs the first time the advertising takes place. The advertising and promotion expenses for the year ended December 31, 2025 were \$7,666. #### New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU" No. 2014-09, Revenue from Contracts with Customers {'*1* ASU 2014-09"), a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is for a company to recognize revenue when it transfers 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 Company adopted the new revenue recognition standard using the modified retrospective method on January 1, 2019. As a result of adoption, there was no cumulative impact to Company's member's capital as of January 1, 2019 and no impact to revenue for the year ended December 31, 2025. #### **NOTE 2** - **REVENUE RECOGNITION** All revenue recogni zed on th e Statement of Income is considered to be revenue from contracts with customers. The following table disaggregates the Company's revenue based on the timing of satisfaction of performance obl igations for the year ended December 31, 2025. | Performance obligations satisfied over time | \$
0 | |------------------------------------------------------|------------------------------| | Performance obligations satisfied at a point in time | \$
___
8,_2_31_,8_4_0 | | Total Revenue | \$==="8,,,,,.2-31'=.8==4=='0 | The following table depicts the disaggregation of the various types of revenue generated by the Company: {11}------------------------------------------------ | Commissions on fixed income securities transactions | \$
6,207,428 | |-----------------------------------------------------|---------------------------| | Underwriting revenue | \$
2,024,412 | | Total Revenue | \$==~8-~23"='1~.8===4='=0 | ### **NOTE 3-CONCENTRATION OF CREDIT RISK** The Company maintains cash balances at a national bank. The cash balances at this institution are insured by the Federal Deposit Insurance Corporation up to \$250,000. FASB ASC 825, Financial Instruments, identifies these items as a concentration of credit risk requiring disclosure, regardless of risk. The Company's cash balances were fully insured as of December 31, 2025 in all accounts. # **NOTE 4- LEASES** The Company leases office space under a lease agreement in Raleigh, NC that began on 1/1/2016 and expired on 3/1/2023. The Company signed a new lease on 3/1/2023 that is month-to-month. Minimum lease payments on both the lease that expired on 3/1/2023 and the new current lease are made monthly in the amount of \$7,750. Future minimum rental payments due under the cancellable lease total \$7,750. The Company had rental expense in the amount of \$93,000 for the year ended December 31, 2025. # **NOTE 5- 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 not to exceed 15 to 1. At December 31, 2025 the Company had excess net capital of \$935,574. The Company's required minimum net capital is \$100,000. At December 31, 2025, the Company's ratio of aggregate indebtedness to net capital was 79.24%. #### **NOTE 6** - **SUBSEQUENT EVENTS** Management evaluates events occurring subsequent to the date of the financial statements in determining the accounting for and disclosure of transactions and events that affect the financial statements. Subsequent events have been evaluated through February ~6. 12026 which is the date the financial statements were available to be issued. #### **NOTE 7** - **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. The Company has identified its Chief Executive Officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital, which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. 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 accounting policies used to measure the profit and loss of the segment are the {12}------------------------------------------------ same as those described in the summary of significant accounting policies. The Statement of Income presents the segment revenue and expenses for the year ending December 31, 2025. {13}------------------------------------------------ #### SUPPLEMENTARY INFORMATION {14}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 15c3-1 FOR THE YEAR ENDED DECEMBER 31, 2025** | Computation of Net Capital | | | |-----------------------------------------------------------|---------------|-----------------| | Total Member's Equity | | \$
1,214,486 | | Deductions and/or Changes | | | | Non-Allowable Assets: | | | | Prepaid Expenses | | \$
24,637 | | Receivables from Other Broker-Dealers | | \$
143,175 | | Furniture and Equipment | | \$
8,265 | | Net Capital Before Haircuts on Securities Positions | | \$
1,038,409 | | Haircuts on Securities | | | | Other Securities | | \$
2,835 | | Net Capital | | \$
1,035,574 | | Computation of Basic Net Capital Requirements | | | | Minimum Net Capital Required | | | | Calculation (6 2/3% of Aggregate Indebtedness) | \$
54,704 | | | Company Requirement | \$
100,000 | | | Net Capital Requirement (Greater of the Above) | | \$
100,000 | | Excess Net Capital | | \$
935,574 | | Net Capital Less Greater of 10% of Aggregate Indebtedness | | | | or 120% of Minimum Net Capital Requirement | | \$
915,574 | | Computation of Aggregate Indebtedness | | | | Total Aggregate Indebtedness | | \$
820,559 | | Percent of Aggregate Indebtedness to Net Capital | | 79.24% | | Net Capital Reconciliation | | | | Net Capital as per the FOCUS Part !IA | | \$
1,035,574 | | | | | There are no material differences form the preceding computation and the Company's corresponding unaudited Part llA of Form X-17A-5 as ofDecember 31, 2025. {15}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC INFORMATION RELATING TO THE POSSESSION OR CONROL REQUIREMENTS PURSUANT TO SEC RULE 15c3-1 FOR THE YEAR ENDED DECEMBER 31, 2025** The Company claims exemption from the requirements of Rule l 5c3-3 under the Securities and Exchange Act of 1934, pursuant to Section (k)(2)(ii) of the Rule. {16}------------------------------------------------ # **FALCON SQUARE CAPITAL, LLC COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANT TO SEC RULE 15c3-1 FOR THE YEAR ENDED DECEMBER 31, 2025** The Company claims exemption from the requirements of Rule l 5c3-3 under the Securities and Exchange Act of 1934, pursuant to Section (k)(2)(ii) of the Rule. {17}------------------------------------------------ ## **BATCHELOR, TILLERY & ROBERTS, LLP CERTIFIED PUBLIC ACCOUNTANTS POST OFFICE BOX 18068** **RALEIGH, NORTH CAROLINA 27619** RONALD A. BATCHELOR WM. JAMES BLACK, JR. SCOTT E. CABANISS MICHELLE W. LEMANSKI JARED L. PILAND DAVID C. CORN, JR. **3605 GLENWOOD AVENUE,** SUITE **350 RALEIGH, NORTH CAROLINA 27612 TELEPHONE (919) 787-8212 FACSIMILE (919) 783•6724** ### REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES The Board of Directors Falcon Square Capital, LLC: We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2025. Management of Falcon Square Capital, LLC (the Company) is responsible for its Fo1m SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This repo1t may not be suitable for any other purpose. The procedures perfonned may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users arc responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this repo1t has been requested or for any other purpose. The procedures we performed and our findings are as follows: - I. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2. Compared the Total Revenue amount reported on the Annual Audited Report Form X-l 7A-5 Part III for the year ended December 31, 2025 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2025, noting no differences; - 3. Compared any adjustments reported in Fonn SIPC-7 with supporting schedules and working papers, noting no differences; - 4 . Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. {18}------------------------------------------------ We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. {19}------------------------------------------------ ### FALCON SQUARE CAPITAL, LLC #### Schedule of Assessment and Payments ### Year ended December 31, 2025 | Assessment for December 31, 2025 | \$ | 11,829 | |----------------------------------|----|--------| |----------------------------------|----|--------| Less: | Payment July 31, 2025 | (6,504) | |---------------------------|--------------------| | Payment February 25, 2026 | (5,325) | | Balance due March 3, 2026 | ====
\$
None | 3 {20}------------------------------------------------ # **BATCHELOR, TILLERY & ROBERTS, LLP** **CERTIFIED PUBLIC ACCOUNTANTS POST OFFICE BOX 18068 RALEIGH, NORTH CAROLINA 27619** RONALD A. BATCHELOR WM. JAMES BLACK, JR. SCOTT E. CABANISS MICHELLE W. LEMANSKI JARED L. PILAND DAVID C. CORN, JR, **3605 GLENWOOD AVENUE, SUITE 350 RALEIGH, NORTH CAROLINA 27612 TELEPHONE (919) 787•8212 FACSIMILE (919) 783•6724** ## **Report of Independent Registered Public Accounting Firm** The Members Falcon Square Capital, LLC.: We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Falcon Square Capital, LLC (the "Company") identified the following provisions of 17 C.F.R. § 15c3-3(k) under which the Company claimed exemption from 17 C.F.R. § 240.15c3-3: (2)(ii) (exemption provisions), and (2) the Company stated that the Company met the identified exemption provisions throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements. 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 the Company's compliance with the exemption provisions. 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 on the provisions set forth in paragraph (k)(2)(ii) of Rule l 5c3-3 under the Securities Exchange Act of 1934. !J.JJukv,J ~ 1 f *L.h, lLI* Raleigh, North Carolina February 26, 2026 {21}------------------------------------------------ # **FALCON SQUARE CAPITAL LLC Exemption Report Year Ended December 31, 2025** Falcon Square Capital, LLC claims an exemption from SEC Rule 15c3-3, during the year ended December 31, 2025, pursuant to paragraph k(2)(ii). Falcon Square Capital, LLC met the identified exemption provisions throughout the year ended December 31, 2025 without exception. Braxton Wall, Member 2/26/2026 Date Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.