# BESTEX RESEARCH SECURITIES, LLC X-17A-5 (2025-12-17) — Broker-dealer annual report - Company: BESTEX RESEARCH SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-12-17 - Period: 2025-09-30 - Accession: 0001823551-25-000006 - CIK: 1823551 - File #: 8-70584 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese, CPA P.C. - Auditor location: Lincolnshire, IL - Contact: Beatrice Derian - Phone: 2036532988 - Email: beatrice.derian@bestexresearch.com - Website: bestexresearch.com - Signed by: Beatrice Derian (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1823551/000182355125000006/Pub.pdf --- {0}------------------------------------------------ #### # |
















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| | | | | 2 Landmark Square, Suite 214
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| | | | | | Beatrice Derian
| 203-653-2988
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Michael Coglianese, CPA P.C.
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| | | | | 300 Tri State International, Ste 180 | Lincolnshire
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Beatrice Derian |














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BestEx Research Securities, LLC |
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| | | | | | | CFO ### - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ Report on Audit of Financial Statement and Supplementary Information As of and for the year ended September 30, 2025 {3}------------------------------------------------ ## **Contents** | As of and for the year ended September 30, 2025 | | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-10 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Members and Board of Directors of BestEx Research Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of BestEx Research Securities, LLC as of September 31, 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 BestEx Research Securities, LLC as of September 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of BestEx Research Securities, LLC's management. Our responsibility is to express an opinion on BestEx Research Securities, LLC'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 BestEx Research 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test bas is, 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. We have served as BestEx Research Securities, LLC's auditor since 2024. Lincolnshire, IL December 11, 2025 {5}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION September 30, 2025 Assets: Cash and cash equivalents \$ 10,793,200 Accounts Receivable 2,988,747 Receivable from clearing organizations 1,607,353 Other assets 86,561 **Total assets** \$ 15,475,861 Liabilities: Accounts payable & accrued expenses \$ 1,422,813 **Total liabilities** 1,422,813 Member's equity 14,053,048 **Total liabilities and member's equity** \$ 15,475,861 **ASSETS LIABILITIES AND MEMBER'S EQUITY** {6}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **1. Organiza+on and Nature of Business** BestEX Research Securi@es, LLC. (the "Company") was formed on April 23, 2020, as a limited liability company under the laws of the State of Delaware. In January 2021, the company was registered as an Introducing Broker ("IB") with the Commodity Futures Trading Commission ("CFTC") and became a member of the Na@onal Futures Associa@on ("NFA"). On July 23, 2021, BestEx Research Securi@es LLC became registered with the Securi@es and Exchange Commission ("SEC") as a broker dealer and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company's principal opera@ons are based in Stamford, Connec@cut. BestEx Research Securi@es, LLC provides algorithmic trade execu@on services in futures and equi@es for ins@tu@onal clients, exclusively on an agency basis. The Company does not clear transac@ons, hold customer funds or securi@es, or accept money or property to margin or secure any trades or contracts that result or may result there from. The Company operates under the provisions of Paragraph (k)(2)(ii) of Rule 15c3-3 of the Securi@es and Exchange Commission and, accordingly, is exempt from the remaining provisions of that rule. Essen@ally, the requirements of Paragraph (k)(2)(ii) provide that the Company clears all transac@ons on behalf of customers on a fully disclosed basis with a clearing broker dealer and promptly transmits all customer funds and securi@es to the clearing broker/dealer. The clearing broker/dealer carries all the accounts of the customers and maintains and preserves the related books and records as are primarily kept by a clearing broker/dealer. The Company also claims exemp@on because in some instances the Company's revenue include certain commission revenue which was received directly outside of the clearing broker accounts and the Company (1) did not directly receive, hold, or otherwise owe funds or securi@es for or to customers; (2) did not carry accounts of other customers; (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without excep@on. The Company's clients are primarily located across North America, the United Kingdom, Europe, and the Asia-Pacific region. BestEx Research Securi@es, LLC is wholly owned by BestEx Research Group LLC. {7}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **2. Summary of Significant Accoun+ng Policies** ## **i. Basis of Presenta+on** The financial statements have been prepared on the accrual basis of accoun@ng in accordance with accoun@ng principles generally accepted in the Unites States of America ("US GAAP") as set forth in the Financial Accoun@ng Standards Board's ("FASB") Accoun@ng Standards Codifica@on ("ASC"). ## **ii. Cash and Cash Equivalents** The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents include funds held in checking, brokerage and money market accounts maintained with financial ins@tu@ons. ## **iii. Income Taxes** The Company is organized as a limited liability company and is treated as a disregarded en@ty for federal and state income tax purposes. Accordingly, the Company does not record a provision for income taxes in its financial statements, as the members are individually responsible for repor@ng their respec@ve shares of the Company's income or loss on their income tax returns. The financial statements reflect the Company's transac@ons without adjustment, if any, required for Federal and State income tax purposes. ## **iv. Revenue Recogni+on** Revenue from contracts with customers consists primarily of execu@on services. Such fees are recognized at the point in @me when the Company has sa@sfied its performance obliga@on under the terms of the customer agreement, which typically occurs upon the execu@on and comple@on of the related transac@ons. ## **V. Use of Es+mates** The prepara@on of financial statements in conformity with accoun@ng principles generally accepted in the United States of America ("US GAAP") requires Management to make es@mates and assump@ons that affect the reported amounts of assets and liabili@es, the disclosure of con@ngent assets and liabili@es at the date of the financial statements, and the reported amounts of revenue and expenses during the repor@ng period. Actual results could differ from those es@mates. {8}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **2. Summary of Significant Accoun+ng Policies (con+nued)** ### **vi. Credit losses** The Company con@nuously evaluates the collectability of its commission receivables and has determined that no allowance for credit losses is required as of the repor@ng date. All clients are established ins@tu@onal counterpar@es in good standing with strong payment histories. Management has full confidence that all amounts will be collected in full. ### **vii. Fair Value Measurements** The Financial Accoun@ng Standards Board has established a framework for measuring fair value in ASC 820, *Fair Value Measurements*. That framework provides a fair value hierarchy that priori@zes the inputs to valua@on techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in ac@ve markets for iden@cal assets or liabili@es (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below Level 1: Inputs to the valua@on methodology are unadjusted quoted prices for iden@cal assets or liabili@es in ac@ve markets that the Company has the ability to access. Level 2: Inputs to the valua@on methodology include: - Quoted prices for similar assets or liabili@es in ac@ve markets. - Quoted prices for iden@cal or similar assets or liabili@es in inac@ve markets. - Inputs other than quoted prices that are observable for the asset or liability. - Inputs that are derived principally from or corroborated by observable market data by correla@on or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substan@ally the full term of the asset or liability. Level 3: Inputs to the valua@on methodology are unobservable and significant to the fair value measurement. The assets or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valua@on techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a descrip@on of the valua@on methodologies used for assets measured at fair value. There have been no changes in the methodologies used on September 30, 2025. {9}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **2. Summary of Significant Accoun+ng Policies (con+nued)** ### **vii. Fair Value Measurements (con+nued)** Money market fund: Valued at amor@zed cost, which approximates fair value. The amor@zed cost of an instrument is determined by valuing it at its original cost and thereaher amor@zing any discount or premium from its face value at a constant rate un@l maturity. Money market fund is presented as part of cash and cash equivalents in the balance sheet. The methods described above may produce a fair value calcula@on that may not be indica@ve of net realizable value. The following table sets forth by level, within the fair value hierarchy, the Company's assets at fair value as of September 30, 2025: Fair Value Measurements at repor@ng date using: | | Assets Measured at Fair Value at
09/30/2025 | | Quoted Prices in Ac@ve Markets
(Level 1) | | |--------------------------|------------------------------------------------|------------|---------------------------------------------|------------| | Money Market Funds | \$ | 10,316,811 | \$ | 10,316,811 | | Investment at Fair Value | \$ | 10,316,811 | \$ | 10,316,811 | ## **3. Indemnifica+on** In the normal course of business, the Company enters into agreements that contain representa@ons, warran@es and standard indemnifica@on provisions with counterpar@es. These provisions are generally intended to protect counterpar@es against losses arising from breaches of representa@ons and warran@es, or from certain events such as changes in or adverse applica@ons of tax laws that could result in addi@onal taxes or withholding obliga@ons. The maximum poten@al amount of future payments that the Company could be required to make under these indemnifica@ons cannot be reasonably es@mated. However, management believes that it is unlikely it will have to make material payments under these arrangements, and accordingly, no con@ngent liability has been recorded in the accompanying financial statements. ## **4. Due from Clearing Brokers** The clearing and depository opera@ons for the Company's and its customers' securi@es transac@ons are provided by clearing brokers pursuant to fully executed clearing agreements. As of September 30, 2025, amounts due from clearing brokers represent cash deposits maintained {10}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **4. Due from Clearing Brokers (con+nued)** with the clearing brokers and commission revenues earned as an introducing broker for the Company's customers, net of clearing charges and other related expenses. Management monitors the collectability of these receivables on an ongoing basis, including through historical analysis and subsequent collec@ons, and has determined that no allowance for doubmul accounts is required. As of September 30, 2025, due from clearing brokers totaled \$1,607,353. ## **5. Commission Sharing Agreement** The Company par@cipates in Commission Sharing Agreements ("CSAs") with certain ins@tu@onal clients. Under these arrangements, a por@on of the commissions earned on client transac@ons may be directed by the client to pay for eligible research and brokerage services provided by third par@es. The Company records commission revenues net of amounts allocated or payable to third par@es under CSAs**,** as these amounts are not retained by the Company. ## **6. Related Party Transac+ons** The Company has entered into an Expense Sharing Agreement (ESA) with a related party, under which the related party incurs and allocates certain expenses on behalf of the Company. The related party u@lizes fair and reasonable alloca@on methodologies to determine the por@on of shared expenses aoributable to the Company. For the period covered by these financial statements, total shared expenses allocated to the Company amounted to \$9,206,937. As of September 30, 2025, the Company had a prepayment to BestEx Research Group of \$226,852. ## **7. Net Capital Requirements** The Company is subject to the Securi@es and Exchange Commission ("SEC") Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and limits the ra@o of aggregate indebtedness to net capital, both as defined, to no more than 800% during the Company's first year of opera@ons, and 1500% in subsequent years. The Company Is also subject to the net capital requirements of Regula@on 1.17 of the Commodity Exchange Act, administered by the Commodity Futures Trading Commissions ("CFTC"). Since the Company maintains adjusted net capital greater than \$1,000,000, it is required to maintain {11}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **7. Net Capital Requirements (con+nued)** minimum net capital as defined equal to the greater of \$45,000 or the amount of net capital required under SEC rule 15c3-1(a). On September 30, 2025, the Company had net capital of \$13,121,462, which was \$13,026,608 in excess of its required minimum net capital of \$94,854. The Company's aggregate indebtedness was \$1,422,813 and its aggregate indebtedness to net capital ra@o was 10.84%. ## **8. Off balance sheet risk and concentra+on of credit** In the normal course of business, the Company maintains cash balances with various financial ins@tu@ons, which at @mes may exceed federally insured limits. The Company is exposed to credit risk to the extent that any financial ins@tu@on with which it conducts business is unable to fulfill its contractual obliga@on. Management monitors the financial condi@on of these financial ins@tu@ons and does not believe that any material credit risk exists or that any losses will be incurred from such counterpar@es. As of September 30, 2025, the amount of cash held in US financial ins@tu@ons in excess of federally insured limits was approximately \$10,147,145. For the year ended September 30, 2025, three customers accounted for 45% of the Company's revenue and one customer accounted for 42% of the Company's Accounts Receivables. ## **9. Commitments, Con+ngencies and Guarantees** The Company had no underwri@ng commitments, no con@ngent liabili@es and had not been named as a defendant in any lawsuit on September 30, 2025, or during the year then ended. The Company has issued no guarantees effec@ve on September 30, 2025, or during the year then ended. ## **10. Single Reportable Segment** The Company is engaged in a single line of business as a securi@es broker-dealer, conduc@ng agency trading. The Chief Financial Officer (CFO), and the Chief Execu@ve Officer (CEO), jointly evaluate the results of the business primarily using net income in the forecas@ng and management process. In addi@on, they consider excess net capital, which is not a measure of profit or loss, to make opera@onal decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. Based on this management structure and decision-making process, the Company's opera@ons cons@tute a single opera@ng segment and therefore a single reportable segment, as the CFO and CEO manage the business on a consolidated basis. The {12}------------------------------------------------ Notes to the financial statements for the year ended September 30, 2025 ## **10. Single Reportable Segment (con+nued)** accoun@ng policies used to measure segment profit and loss are consistent with those described in the summary of significant accoun@ng policies. ## **11. Subsequent Events** The Company has evaluated all events and transac@ons that occurred between October 1, 2025 and December 11, 2025, the date on which the financial statements were available to be issued, for poten@al recogni@on or disclosure in the accompanying financial statements. Based on this evalua@on, no events or transac@ons were iden@fied that require adjustments to, or disclosure in, the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.