# ROW ASSOCIATES, LLC X-17A-5 (2025-02-27) — Broker-dealer annual report - Company: ROW ASSOCIATES, LLC - Form: X-17A-5 - Filed: 2025-02-27 - Period: 2024-12-31 - Accession: 0001810165-25-000001 - CIK: 1810165 - File #: 8-70520 - Type: Broker-dealer - Material weakness: No - Auditor: Weisberg, Mole', Krantz & Goldfarb, LLP - Auditor location: Woodbury, NY - Contact: Jessica Kriewald - Phone: 862 252 1619 - Email: kriewald@jrsfinancialservices.com - Website: jrsfinancialservices.com - Signed by: Duncan Dashiff (Senior Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1810165/000181016525000001/rowpublic.pdf --- {0}------------------------------------------------ # CONSOLIDATED STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 {1}------------------------------------------------ Washington, D.C. 20549 Estimated average burden SECURITIES AND EXCHANGE COMMISSION | | OMB APPROVAL
OMB Number: 3235-0123
Expires: Nov. 30, 2026 | | |------------------------|-----------------------------------------------------------------|--| | UNITED STATES | | | | | | | | Washington, D.C. 20549 | Estimated average burden | | | | hours per response: 12 | | | | | | ## PART IIШ FORM Х-1 8-70520 AL R SEC FILE NUMBER EACING DAGE Information Reguired Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING AND ENDING 01/01/2024 12/31/2024 MM/DD/YY MM/DD/YY STRANT # NAME OE EIRM ROW Associates, LLC Broker-dealer ☐ Security-based swap de Major security-based swap dont ir alo an OTC derivatives dealer TYPE OF REGISTRANT (check all applicable boxes): ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | 204 Moultrie Park | | | | |--|-------------------|--|--|--| |--|-------------------|--|--|--| | | (No. and Street) | | | |----------------------------------------------|------------------|-------------------------------------------|--| | Nashyille | T
N | 37205 | | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Jessica Kriewald | 862 252 1619 | jessica kriewald@jrsfinancialservices.com | | (Name) (Area Code - Telephone Number) (Email Address) servs re #### B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* # Weisberg, Mole', Krantz & Goldfarb, LLP | | (Name - if individual, state last, first, and middle name) | | | |--------------------------------------------------|------------------------------------------------------------|---------|--------------------------------------------| | 185 Crossways Park Drive | Woodbury | Y
N | 11797 | | (Address) | (City) | (State) | (Zip Code) | | 12-14-2004 | | 2107 | | | (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 CER 240 173-5(e\(1\(iil ifannlicable \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public displays a currently valid OMB control number. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form {2}------------------------------------------------ #### OR AFFIRMATION | | or affirm) that, to the best of my knowledge and belief, the financial | |---------------|-----------------------------------------------------------------------------------------------------------| | | of
as
ROW Associates, LLC
either
pany nor any
is true and correct. I further swear
2024 | | | quivalent person, as the case may be, has any
irector | | | | | | | | | | | | | | | Senior Managing Member | | | | | | | | Notary Public | ENNESSEE
NOTARY | | | | | | | | | | | | of
nensive income in the period(s) presented, a st
er | | | 0.1-02 of Regul | | | | | | ent of ca
ges in stockholders' or partners' or sole proprietor's eq | | | tement | | | f) Statement of changes in liabilities subordinated to claims of credi | | | ☐(g) Notes to consolidated financial statements.
a-1 | | | (h) Computation of net capital under 17 CFR 240.15c3-1 | | | (i) Computation of tangible net worth under 17 CF
Exhihit A to 17 CER 240.15c3-3.
erve | | | ☐ (j) Computation for
ion
hibit B to 17 CFR 240.15c3-3 or | | | (k) Computation | | Ex! | CFR
xhibit A to & 240.15c3-3. | | | customers under 17 CFR 240.15c3-3. | | | nts for security-based swap customers under 17 CFR | | | 8a-4. as appl | | | tions, of the FOCUS Report with computation of n
ate | | | nder 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the | | | ces
CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if mate | | | | | exist. | cia | | | (p) Summary of financial
240.18a-7. as applicable. | | | (q) Oath or affir
8a-7 | | | (r) Compliance report
18a-7. as applicable. | | (s) E | ment of financial condition. | | | on of the financial report or financial statements under 17 | | | 40.17a-12, as applicable.
or 17 | | | report under
eport based on an examination of certain statements in the compliance | | | FR 240.18a-7, as a | | | ent public accountant's report based onareview of the exemption report under 17 CFR | | | | | | 18a-7, as a
ith | | | ☐ (✗) Supplemental reports on applying agreed-upon procedures, in | | | as applicable.
ea | | | ☐(y) Report describing any material
ist, | | | a statement that no ma | | ☐ (z) Other: | | licable. \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240 )(3) or {3}------------------------------------------------ #### DECEMBER 31, 2024 #### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm 1 | Page | |------------------------------------------------------------|------| | | | | Consolidated Financial Statements: | | | Consolidated Statement of Financial Condition 2 | | | Notes to the Consolidated Financial Statement 3-7 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) {5}------------------------------------------------ #### CONSOLIDATED STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2024 #### ASSETS | ROW ASSOCIATES, LLC AND SUBSIDIARY
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | | |-------------------------------------------------------------------------------------|---------------| | DECEMBER
31,
2024 | | | | | | ASSETS | | | Cash | \$
702,050 | | Prepaid expense | 10,489 | | Fixed assets, net of depreciation | 9,796 | | Deposits | 358 | | Total assets | \$
722,693 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities: | | | Accounts payable | \$
41,911 | | Due to affiliates | 58 | | Total liabilities | 41,969 | | Member's equity | \$
680,724 | | Total liabilities and member's equity | \$
722,693 | See notes to the consolidated financial statement {6}------------------------------------------------ #### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT #### DECEMBER 31, 2024 #### 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Row Associates, LLC and subsidiary (the Company) is a Tennessee limited liability company and a wholly-owned subsidiary of Row Holdings, LLC (the Member). The Company is registered as a capital acquisition broker with the Securities and Exchange Commission (the SEC) and a member of the Financial Industry Regulatory Authority (FINRA). The Company engages in advisory services related to mergers and acquisitions and the private placement of securities, focusing on healthcare companies predominantly within the healthcare services and healthcare IT sectors. The Company does not claim an exemption from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Company has represented that it does not and will not, (1) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) does not and will not carry PAB accounts. ### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of presentation The accompanying consolidated financial statements of the Company have been prepared on the accrual basis of accounting. #### Basis of consolidation The consolidated financial statements include the accounts of Row Associates, LLC and its subsidiary. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. #### 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. {7}------------------------------------------------ #### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT #### DECEMBER 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Revenue recognition (continued) Revenue from investment banking advisory services is recognized when the services are rendered and related expenses are recorded when incurred. Deal fees are recorded when earned and related expenses are recorded when incurred. Investment banking revenues consist of advisory services/corporate finance activities including mergers and acquisitions, reorganizations, tender offers, leveraged buyouts and fundraising activities. These investment banking revenues are received based on contractual terms. The Company's engagement agreements contain nonrefundable retainer fees ("retainer fees") which are due and payable pursuant to the terms of the agreement and/or success fees, which may be fixed or represent a percentage of value that the customer received when the corporate finance activity is completed ("success fees"). The retainer fees or other milestone fees may reduce any success fee subsequently invoiced and received upon the completion of the corporate finance activity. The Company has evaluated its nonrefundable retainer payments to ensure its fee related to the transfer of a good or service, as a distinct performance obligation, in exchange for the retainer. If a promised good or service is not distinct, the Company combines that good or service with the other promised goods or services until it identifies a bundle of goods or services that is distinct. In some cases, that would result in the broker-dealer accounting for all the services promised in a contract as a single performance obligation and the retainer revenue is classified as deferred revenue on the Statement of Financial Condition. As of December 31, 2024, there is no retainer revenue classified as deferred revenue. #### 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### Accounts receivable and credit policies Accounts receivable, which generally represent unsecured customer obligations due under normal trade terms generally requiring payment within 30 days from the invoice date, are stated at the amount billed to the customer. Interest is not charged for receivables unpaid after the expiration of normal terms. Customer account balances with invoices over 90 days old are considered to be delinquent. {8}------------------------------------------------ #### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT #### DECEMBER 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Accounts receivable and credit policies (continued) The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amount that will not be collected. Periodically, the Company evaluates its accounts receivable and, if applicable, provides for an allowance for doubtful accounts equal to amounts estimated to be uncollectible. The Company's estimate is based on a review of current status of the individual accounts receivable. A \$1,700,000 allowance for doubtful accounts was deemed necessary at December 31, 2024. Further discussion of the underlying transaction is included in footnote 8, subsequent events. #### Income taxes Under the provisions of the Internal Revenue Code, the Company is treated as a division of the Member, which is a flow-through entity. Accordingly, no provision or benefit for income taxes has been made as the Company's taxable income or loss is included in the tax return of the Member. #### Uncertain tax positions The Company applies the provisions of ASC 740 "Income Taxes" as they relate to uncertain tax positions. The Company was not required to recognize any amounts from uncertain tax positions as of December 31, 2024. The Company's conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors. In the event that tax authorities assess interest and penalties on unrecognized tax benefits, the Company will reflect such amounts in tax expense and income taxes payable. ### Credit Losses Effective January 1, 2020, the Company adopted ASC Topic 326, "Financial Instruments – Credit Losses" (ASC 326). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss (CECL) methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer). As of December 31, 2023, there were no expected credit losses. ### Leases The FASB issued (ASU) 2016-02, "Leases" (Topic 842) which includes a lease accounting model that recognizes two types of leases – finance leases and operating leases. The standard requires that a lessee recognize on the statement of financial condition a right of use asset and a corresponding lease liability relating to leases with terms of more than twelve months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease. {9}------------------------------------------------ #### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT #### DECEMBER 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Segment reporting The FASB issued (ASU) 2023-07, "Segment Reporting" (Topic 280) which increased disclosure requirements regarding a public entity's reportable segments effective for fiscal years beginning after December 15, 2023. ASU 2023-07 requires incremental line-item disclosures about each reportable segment's expenses as well as profit and losses. The Company has evaluated the guidance thereunder and has determined that The Company operates as one operating segment. For further discussion refer to Footnote 6, Reportable Segments. #### 3. FAIR VALUE MEASUREMENTS The Company's short-term financial instruments consist of cash, receivables, and current liabilities. The carrying value of these short-term instruments approximates their estimated fair values based on the instruments' short-term nature. #### 4. CONCENTRATION OF CREDIT RISK The Company's cash deposits are held by one financial institution and therefore, are subject to credit risk to the extent those balances exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of \$250,000. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. Furniture and fixtures 7,549 \$ Computer equipment 20,032 Office equipment 2,072 Leasehold improvements 570 Less accumulated depreciation (20,427) \$ 9,796 #### 5. FIXED ASSETS, NET As of December 31, 2024, fixed assets consist of the following: | 30,223 | |--------| | | | | {10}------------------------------------------------ #### NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT #### DECEMBER 31, 2024 #### 6. REPORTABLE SEGMENTS The Company is engaged in a single line of business as a placement agent. The Company has identified its Senior Managing Partner as its chief operating decision maker ("CODM"). The CODM predominately 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 (see Note 7), which is not a measure of profit and 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 profit and loss of the segment as the same as those described in Footnote 2, summary of significant accounting policies. ### 7. NET CAPITAL REQUIREMENTS The Company is subject to the uniform net capital requirements of Rule 15c3-1 (the Rule) of the Securities and Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company is required to maintain defined minimum net capital of the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At December 31, 2024, the Company had net capital, as defined, of \$660,081 which exceeded the required minimum net capital of \$5,000 by \$655,081. There was \$41,969 of Aggregate indebtedness as of December 31, 2024. The Company's percentage of aggregate indebtedness to net capital was 6.36%. ### 8. SUBSEQUENT EVENTS The Company has evaluated subsequent events through February 15, 2025 the date on which the consolidated financial statements were issued. The Company notes that it is currently has retained legal counsel for the collection of placement fees earned as of December 31st, 2024 and not received as of the issuance. The Company finds the collection of those fees to be remote and has accordingly reserved for the balance with allowance for doubtful accounts. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.