# BTCO SECURITIES LLC X-17A-5 (2025-03-26) — Broker-dealer annual report - Company: BTCO SECURITIES LLC - Form: X-17A-5 - Filed: 2025-03-26 - Period: 2024-03-31 - Accession: 0001858365-25-000001 - CIK: 1858365 - File #: 8-70708 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab & Co. - Auditor location: MAITLAND, FL - Contact: J. Clarke Gray - Phone: 9172381263 - Email: clarke@taylorgrayllc.com - Website: taylorgrayllc.com - Signed by: J. Clarke Gray (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1858365/000185836525000001/btcoshort123124.pdf --- {0}------------------------------------------------ # QMB APPROVAL UWITED STATES SECURITIES AND EXCHANGE COftAMISSlON Washington, D.C. 20549 ANNUAL REPORTS | 0549 | | |------|--| | ARTS | | hours per response: 12 SEC FILE NUMBER 8-70708 OMB Number: 3235-0123 Expires: Nov, 30,2026 Estimated average burden # FORM X-17A-5 PART 808 FACING PAGE Information Required Pursuant to Rules 17a-5,17a-12, and 18a-7 under the Securities EKchange Act of 1934 | | 01/01/24 | AND
ENDING | 12/31/24 | | |--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|------------------------------|-----------------|--------------------------| | FOR
THE
BEGINNING
PERIOD
FILING | MM/DD/YY | | | MM/DD/YY | | | REGISTRANT
A. | IDENTIFICATION | | | | BTCO
Securities,
NAME
OF
FIRM; | LLC | | | | | OF
REGISTRANT
TYPE
(check
all applicable
0
□
Broker-dealer
Security-based
□
Check
here
If respondent
is also an | boxes);
swap
dealer
OTC
derivatives dealer | □
Major
security-based | swap | participant | | ADDRESS
OF
OF
PLACE
PRINCIPAL | BUSINESS:
(Do
use
a
not | box
P.O.
no.) | | | | Rockefeller
Plaza,
1 | 28th
Floor | | | | | | (No, and
Street) | | | | | New
York
City | | | | 10022 | | (City) | (State) | | | (Zip Code) | | CONTACT
PERSON
TO
REGARD
WITH | TO
THIS
FILING | | | | | Gray
Clarke
J. | 917-238-1263 | | | clarke@taylorgrayllc.com | | (Name) | (Area Code-Telephone | Number) | (Email Address) | | | B. | ACCOUNTANT | IDENTIFICATION | | | | ACCOUNTANT
INDEPENDENT
PUBLIC
Ohab
and
Co8npany, | whose
reports
are
PA | contained
in
this | filing* | | | -
(Name | if Individual, state last, first, and | name)
middle | | | | 100
Ave.
Sybelia
Suite
E. | Maitland
130 | | FL | 33480 | | (Address) | (City) | | (State) | (Zip Code) | | 2004
July
28, | | 1839 | | | | (PCAOB
Registration Number,
(Pate of Registration with PCAOB)(if
applicable) | | if applicable) | | | | | FOR
USE
OFFICIAL | 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)(l)(ll), if applicable. Persons wfto are to resfioncf to the coffectfon of htformatfon contained in this farm are not required to respond unless the form displays a currently valid OfMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION 1 r«. I, swear (or affirm) that, to the best of my knowledge and belief, the 6\*tCo Se.t-~\*3U U\_C. ® ' . financial report pertaining to the firm of 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 cfassffled solely as that of a customer. n«9litf»«on No. 02TA\*ll5ii7 '"Njw rofk CDuni/ Sgnature! Title: - - & (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensiveincomein the per1od(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 proprtetor's equity. □ (Q Statement of dianges in ilabliities subordinated to claims of creditors. - - □ (g)Notesto consolidated financial statemerrts. - □ (h)ComputationofRetcapitatunderl7CFR240.15c3-lorl7 CFR 240.18a-l, as applicable. □ (I)ComputationoftanglbleRetwofthunderl7CFR240.18a-2. - - - □ (j) Comptitatlonfor determinationof customerreserverequirements pursuant to Exhibit A to 17 CFR 240.1ScS-3. □ (k) Computation lor deterrnmation of security-based swap roserve requirements pursuant to Exhibit 6 to 17 CfR 240.15c3-9 or Exhibit A to 17 CFR 240.18a\*4, as applicable. - - - □ (i) Computation for Determination of PAB Requlrentents under ExhUrit A ot § 240.15c3-3. □ (m) information relating to possession or control requirements for customer under 17 CFR 240.15c3-3. O (n) Information relatir^ ot possession or control requirements Rk security-based swap custonwrs 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-l, 17 CFR 240.18a-l, or 17 CFR 240.188-2, as appiicabie, and the reserve requirements under 17 CFR 240.15c3^ or 17 CFR 240.18a-4, as applicable. If material differences exist, or a statement that no material differences ex^ - - □ (p) Summary of financial data for subsidiaries not consolidated In the statemart of finandal condition. 0 (q) Oath or affirmation In accordance with 17 CFR 240.17a-5,17 CFR 240.17a-12, or 17 CFR 240.18a-7, as appBcable. □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. 0 Is) exemption report In accordance with 17 CFR 240.17a-5 or 17 CFR 24018a-7, as applicable, - - - of (t) Independent public accountant's repmt based on an examination of the statement of financial condition. - □ (u) fnd^>endent public accountant's report based on an examination of the financial r^xKt or finandal stetements under 17 CFR 240.17a-5,17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) independent public acmuntant's report based on an examination of certain statements In the compliance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as appiicabie. - n («0 Independent public accountant's report based on a review of ffie exemption report under 17 CFR 240.17a-S 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. - □ (y) Report descrIWng any material inadequacies found to exist or found ot have existed since the date of the previous audit a statement that no material inadequades edst, under 17 CFR 240.17a-12(k). □ (x) Other: ———— ,ar - ●●ro request confidential iteatment of certain portions of tills filing, see 17 CFR240.17a-S(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ ## BTCO Securities, LLC #### Statement of Financial Condition # DECEMBER 31,2024 (Filed Pursuant to Rule 17a-5 Under the Securities Exchange Act of 1934) PUBLIC DOCUMENT {3}------------------------------------------------ # BTCO Securities, LLC # CONTENTS | Independent
Report
Accounting
Firm
Registered
Public
of | 1 | |---------------------------------------------------------------------------|-----| | Statement
Condition
Financial
of | 2 | | Notes
Statement
to Financial | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Hinail: namf^ohabco.com 100 E. Sybelia Avc. Suite 130 Maitland, FL 32751 Fax 407-740-6441 Certified riiblic Accoimianis Telephone 407'740\*7311 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of BTCO Securities, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of BTCO Securities, LLC as of December 31. 2024 and the related notes (collectively referred to as the "financial statement'). In our opinton, the financial statement presents fairly, In all material respects, the financial position of BTCO Securities, LLC as of December 31,2024 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of BTCO Securities, LLC's management. Our responsibility is express an opinion on BTCO Securities. LLC's financial statement based on our audit. We are a public accounhng firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to BTCO Securities. LLC in accordance with the U.S. federal securities taws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. to We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plari and perform the audit to obtain reasonable assurance about whether the financial statement is free of materia! misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks o 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 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 BTCO Securities, LLC's auditor since 2022. Maitland, Florida March 17,2025 {5}------------------------------------------------ # BTCO Securities, LLC # STATEMENT OF FINANCIAL CONDITION | | December
2024
31. | |--------------------------------------------------------------------------------------------------------|------------------------------------| | ASSETS | | | Cash | \$
682,574 | | Chaperoning
fees
receivable | 266,411 | | Prepaidexpensesand
deposits | 181,286 | | Furniture, equipment
and
improvements,
leasehold
(Note
net
10) | 80,130 | | of use
Right
lease | 778,973 | | assets
Total | 1.989.374
\$ | | AND
MEMBER'S
EQUITY
LIABILITIES | | | Liabilities
expenses
Accounts
payable
and
accrued
Lease
liability | 37,884
\$
855,159 | | Total
liabilities | \$
893.043 | | Commitments
and
contingencies
{Note
12) | | | Member's
Equity
Commonstock,
par
value
Additionalpaid-in
capital
Retainedearnings | 10,000
\$
661,948
424.383 | | Stockholder's
Equity
Total | \$
1.096.331 | | Member's
Liabilities and
Equity
Total | 1 QflQ ?.7A
S, | See accompanying notes to financial statement {6}------------------------------------------------ # NOTES TO FINANCIAL STATEMENT DECEMBER 31,2024 Note 1 - Organization And Nature Of Business BTCO Securities LLC (the "Company") is a wholly owned subsidiary of BTCM Holdings, LLC (the "Parent"). The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC"), a member of FINRA, and a member of the Securities Investor Protection Corporation ("SIPC"). The Company does not carry accounts for customers or perform clearing functions. The Company's primary business is offering "Chaperoning" Service (Rule 15a-6) to its affiliates and Private Placements. # Note 2; Summary Of Significant Accounting Policies #### Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U .S. GAAP") as determined by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). #### Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. #### Cash and Cash Equivalents At times, cash may be in deposit accounts that exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits. For purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash balances in excess of FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. #### Income Taxes The Company has elected to be treated as an "S" Corporation under the provisions of the Internal Revenue Code and New York State tax regulations. Under the provisions, the Company does not pay federal state corporate income taxes on its taxable income. Instead, the shareholder is liable for Individual income taxes on his respective share of the Company's taxable income. The Company continues to pay New York City general corporation taxes. or #### Furniture. Equipment and Leasehold Improvements, net Furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation of these assets is computed over their estimated useful lives, 3 to 5 years, using the straight-line method. Leasehold improvements are amortized using the straight-line method either the economic useful life of the improvement or the lease term, whichever is shorter. over Repairs and maintenance are expensed as incurred. Expenditures that increase the value or productive capacity of assets are capitalized. When furniture and equipment are retired, sold, or otherwise disposed of, the asset's carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in the accompanying statement of operations. {7}------------------------------------------------ # Note 2: Summary Of Significant Accounting Policies(continued) ### Government and Other Regulation The Company's business is subject to significant regulation by various governmental agencies and self regulatory organizations. 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 rule (Rule I5c3-1), which requires that the Company maintain a minimum net capital, as defined. #### Credit Losses The Company follows 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). The Company had accounts receivable as of December 31, 2023 and 2024 of \$ 1,067,633 and \$266,411 respectively. #### Note 3: Related Party Transactions As o f December 31,2024, substantially all fees receivable were due from affiliates of the Company. During 2024 substantially all revenues were from affiliates of the company. ## Note 4: Off-Balance-Sheet Risk And Concentrations Of Credit Risk In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees, and administrators, against specified potential losses in connection with them acting as an agent of, or providing services to, the Company. The Company also indemnifies some customers against potential losses incurred in the event specified third-party service providers, including sub custodians and third-party brokers, improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statement for these indemnifications. ## Note 5: Net Capital Requirement 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. The rule also provides that equity capital may not be withdrawn, or cash dividends paid, if the resulting net capital ratio would exceed 10 to 1. As of December 31, 2024, the Company has regulatory net capital of \$568,504, which exceeds the Company's minimum regulatory net capital requirement of \$250,000 (which is the net capital requirement of the SEC Rule 15c3-1) by \$318,504. Aggregate indebtedness as of December 31,2024 20%. was {8}------------------------------------------------ ### Note 6: Furniture, Equipment and Leasehold Improvenieiits, Net Furniture, equipment and leasehold improvements, net, are summarized as follows: Furniture, equipment and leasehold improvements, net, are summarized as follows: | | Original
cost | Accumulated
depreciation | Net
value | |-------------------------------|------------------|-----------------------------|--------------| | and
Furniture
equipment | \$121,675 | \$(50,928) | \$70,747 | | Leasehold
improvements | 13,093 | (3,710) | 9,383 | | Total | \$134,768 | \$(54,638) | \$80,130 | ### 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 including I5a-6 chaperoning services, agency transactions, and investment banking. The Company has identified its President 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 (see Note 5), 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 the profit and loss of the segment are the same as those described in the summary of significant accounting policies. The company derived 99 percent of its total revenues from a single external customer in 2024. ## 8. Commitments And Contingencies The Company entered into an operating lease for office space that expires in June 2028. The lease contains a free-rent period. There is approximately \$908,719 in future payments due under this lease. The office lease requires a deposit with the landlord in amount of \$174,829. This amount is reflected in "Prepaid expenses and other assets" in the accompanying statement of financial condition. In accordance with ASU No. 2016-02 (Topic 842), the Company included in its Statement of Financial Condition this lease as a Right of Use asset and a partially offsetting liability. The amount of the lease asset and lease liability reflects the present value of future unpaid lease payments. The incremental rate used was 3.6%. Amounts reported on the balance sheet as of 12/31/24 were as follows: | Use
Right
of
Asset: | \$778,973 | |--------------------------------------------|----------------------------------------------------| | Lease
Liability: | \$855,159 | | commitments
There
no
other
are | at December
contingencies
2024.
or
31, | #### Note 9- Subsequent Events The Company has had no subsequent events through the date the financial statements were available to be issued, and determined there were no disclosures or adjustments required. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.