# LIQUIDITY.IO, LLC X-17A-5 (2025-08-29) — Broker-dealer annual report - Company: LIQUIDITY.IO, LLC - Form: X-17A-5 - Filed: 2025-08-29 - Period: 2025-06-30 - Accession: 0001713330-25-000003 - CIK: 1713330 - File #: 8-70000 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company, LLC - Auditor location: Huntingdon Valley, PA - Contact: Marlon Bevaun - Phone: 718-473-2753 - Email: erin.baskett@sqn-global.com - Website: sqn-global.com - Signed by: Eric Choi (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1713330/000171333025000003/liquidityiopublic2024.pdf --- {0}------------------------------------------------ ## **LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC)** Annual Financial Statement June 30, 2025 (FILED AS PUBLIC INFORMATION PURSUANT TO RULE 17a-5(d) UNDER THE SECURITIES EXCHANGE ACT OF 1934) {1}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III | SEC FILE NUMBER | |-----------------| | 8-70000 | | | FACING PAGE | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------|-----------------------------|--------------------------------------------|--|--|--|--| | 07/01/2024
FILING FOR THE PERIOD BEGINNING | AND ENDING | 06/30/2025 | | | | | | | | | MM/DD/YY | | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | NAME OF FIRM: LIQUIDITY.10, 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.) | | | | | | | | | 350 SUGARBOWL CIRCLE | | | | | | | | | | | (No. and Street) | | | | | | | | | WHITEFISH | MT | | | 59937 | | | | | | (City) | (State) | | | (Zip Code) | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | Erin Baskett | 636-675-3746 | | erin.baskett@sqn-global.com | | | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | Sanville & Company, LLC | | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | | 2617 Huntingdon Pike | Huntingdon Valley | | PA | 19006 | | | | | | (Address) | (City) | | (State) | (Zip Code) | | | | | | 09/18/2003 | | 169 | | | | | | | | (Date of Registration with PCAOBXif applicable) | | | | (PCAOB Registration Number, if applicable) | | | | | | | 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 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}------------------------------------------------ | 06/30 | |-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {3}------------------------------------------------ ## LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC) JUNE 30,2025 ## TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | Notes to the Statement of Financial Condition | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member and Those Charged With Governance of Liquidity.IO, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Liquidity.IO, LLC (the "Company") as of June 30, 2025, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of June 30, 2025 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 2018. Huntingdon Valley, Pennsylvania August 27, 2025 {5}------------------------------------------------ | Cash and cash equivalents | | 354,129 | |-------------------------------------------------------|---|---------| | Fixed assets, net accumulated depreciation of \$1,480 | | 332 | | Prepaid expenses | | 10,403 | | | | | | TOTAL ASSETS | S | 364,864 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES: | | | | Accrued expenses | | 0,853 | | | | | | TOTAL LABILITIES | S | 9.853 | | | | | | MEMBER'S EQUITY | | | | Member's Equity | | 355,011 | | TOTAL MEMBER'S EQUITY | S | 355,011 | | TOTAT TTADIT TTTC AND I CLOUDEDIC POLITICS | C | 7701700 | The accompanying notes to the financial statement are an integral part of this financial statement. {6}------------------------------------------------ #### **LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC) Notes to Financial Statements June 30, 2025** ## **1. ORGANIZATION** Liquidity.Io, LLC (FKA ARQ Advisors, 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 ("FINRA"). The Company was formed on December 16, 2014 as a limited liability company in accordance with the laws of the state of Delaware. The firm was approved as a member of FINRA on October 4, 2017 and commenced operations on October 11, 2017. In June 2023, Satchel Inc became 100% owner of the Company. On March 225, 2005 the Company merged with Liquidity.io and changed its name from ARQ Advisors, LLC to Liquidity.io, LLC. The Company engages in the private placement of securities, Merger and Acquisition Advisory services, Non-exchange member transactions in listed securities transactions and introducing clients to sell side counter parties for corporate and U.S. Government debt. The "Company" is no longer considered a Capital Acquisition Broker (CAB) pursuant to FINRA CAB Rules. ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### **Basis of Presentation** The accounting policies and reporting practices of the Company conform to the practices in the broker-dealer industry and are in accordance with accounting principles generally accepted in the United States of America. ### **Government and Other Regulation** The Company's business is subject to significant regulation by various governmental agencies and self-regulatory organizations, including the SEC and FINRA. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the applicable requirements of these organizations. As a registered broker dealer, the Company is subject to the SEC's net capital rules (Rule 15c3-1) which require that the Company maintain a minimum net capital, as defined. #### **Revenue Recognition** In accordance with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASC Topic 606") revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. Under ASC 606, revenue derived from transactions resulting in fees earned from capital raises and private placement transactions is recognized when completed. The company also receives retainer fees for services provided. Under ASC 606, such retainer fees are treated as revenue upon completion as per the descriptive memorandum and agreement. Confidential pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {7}------------------------------------------------ #### **LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC) Notes to Financial Statements (continued) June 30, 2025** ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** #### **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 at June 30, 2025 and revenues and expenses during the year then ended. The actual outcome of the estimates could differ from the estimates made in the preparation of the financial statements. ### **Income Taxes** No provisions have been made for income taxes since the Company is a limited liability company. The individual members are liable for income taxes based on their respective share of the Company's taxable income. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded in expenses. As of June 30, 2025, the Company has no significant uncertain tax positions. The U.S. Federal jurisdiction and the state of New Jersey are the major tax jurisdictions where the Company files income tax returns. The Company is subject to U.S. Federal or state examinations by tax authorities for all periods since its inception. ## **3 CASH AND CASH EQUIVALENTS** The Company considers all highly liquid debt instruments having original maturities of three months or less at the date of purchase to be cash equivalents. The Company may, during the ordinary course of business, maintain account balances with banks in excess of federally insured limits. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts. Cash and cash equivalents are defined as short-term, highly liquid money-market mutual funds with original maturities of less than 90 days. Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) for up to \$250,000. Confidential pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {8}------------------------------------------------ #### **LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC) Notes to Financial Statements (continued) June 30, 2025** ## **4. NET CAPITAL REQUIREMENTS** The Company, as a registered broker-dealer, is subject to the Securities and Exchange Commission's Net Capital Rule (Rule 15c3-1), which requires that the Company maintain Net Capital (as defined in the Rule) equal to the greater of \$250,000 or 6.6667% of Aggregate Indebtedness (also as defined) and requires that the ratio of Aggregate Indebtedness to net capital shall not exceed 15 to 1. At June 30, 2025, the Company's net capital requirement was \$250,000. The Company's Net Capital was \$344,276 which was above the required Net Capital by \$94,276. At June 30, 2025, the Company's ratio of Aggregate Indebtedness to Net Capital was 0.0286 to 1. ## **5. SINGLE REPORTABLE SEGMENT** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including private placements and investment advisory related to such. The Company has identified it's CEO as the chief operating decisions maker ("CODM"), who uses net income to evaluate the results of the business, predominately in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 4), which is not a measure of profit or loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. 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 same as those described in the summary of significant accounting policies. ## **6. COMMITMENTS AND CONTINGENCIES** The Company is exposed to various asserted and unasserted potential claims encountered in the normal course of business. As of June 30, 2025, and through the date of this report, there were no such claims. {9}------------------------------------------------ #### **LIQUIDITY.IO, LLC (FKA ARQ ADVISORS, LLC) Notes to Financial Statements (continued) June 30, 2025** ## **7. CONCENTRATION OF CREDIT RISK** The Company maintains cash and savings accounts at one financial institution. Cash balances are insured by the Federal Deposit Insurance Corporation up to \$250,000 per insured bank account. The Company has not experienced any losses in the past in these accounts. ## **8. GOING CONCERN** The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses over the past two years and is economically dependent on its parent company for additional capital infusions to support operations and meet regulatory net capital requirements under SEC Rule 15c3-1. As of the balance sheet date, the Company's net capital is insufficient to meet its obligations for a period of at least one year from the date these financial statements are issued. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management has evaluated these conditions and developed plans to alleviate the substantial doubt, including securing commitments from the parent company for ongoing financial support as needed, exploring opportunities to raise additional capital through private placements or other financing arrangements, and implementing cost-reduction measures to improve cash flows and operational efficiency. The parent company has historically provided capital contributions and has expressed its intent to continue doing so. However, there can be no assurance that these plans will be successful or that sufficient funding will be available on acceptable terms. The financial statements do not include any adjustments that might result from the outcome of this uncertainty ## **9. SUBSEQUENT EVENTS** Management has evaluated the impact of all subsequent events through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring disclosure in these financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.