# WEDBUSH & CO., LLC X-17A-5 (2025-08-28) — Broker-dealer annual report - Company: WEDBUSH & CO., LLC - Form: X-17A-5 - Filed: 2025-08-28 - Period: 2025-06-30 - Accession: 0001994264-25-000011 - CIK: 1994264 - File #: 8-71158 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst & Young LLP - Auditor location: New York, NY - Contact: Samantha Kirkman - Phone: 212-931-7088 - Email: samantha.kirkman@wedbush.com - Website: wedbush.com - Signed by: Samantha Kirkman (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1994264/000199426425000011/WedCo_FinCondition_063025.pdf --- {0}------------------------------------------------ Statement of Financial Condition and Report of Independent Registered Public Accounting Firm June 30, 2025 (SEC Identification No. 8-71158) {1}------------------------------------------------ | 8- | | |----|--| | | 07/01/24
06/30/25 | | | | | | |--------------------------------|----------------------|----|------------------------------|--|--|--| | | | | | | | | | | | | | | | | | Wedbush
& | Co.,
LLC | | | | | | | ■ | | | | | | | | | | | | | | | | 142
West
57th
Street, | 12th
Floor | | | | | | | | | | | | | | | New
York | NY | | 10019 | | | | | | | | | | | | | | | | | | | | | Samantha
Kirkman | (212)
931-7088 | | samantha.kirkman@wedbush.com | | | | | | | | | | | | | | | | | | | | | Ernst
&
Young
LLP | | | | | | | | | | | | | | | | One
Manhattan
West | New
York | NY | 10001 | | | | | | | | | | | | | 10/20/2003 | | 42 | | | | | | | | | | | | | | | | | | | | | {2}------------------------------------------------ | Samantha Kirkman | | | | |------------------|--------------------|--|--| | | Wedbush & Co., LLC | | | June 30 025 Chief Financial Officer - - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ ### **Wedbush & Co., LLC** Table of Contents |
| Page | |-------------------------------------------------------------------------------|------| | Report
of
Independent
Registered
Public
Accounting
Firm
| 3 | | Statement
of
Financial
Condition
| 4 | | Notes
to
the
Statement
of
Financial
Condition
| 5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Ernst & Young LLP 725 S. Figueroa Street Los Angeles, CA 90017 Tel: +1 213 977 3200 ey.com #### **Report of Independent Registered Public Accounting Firm** To the Member and the Board of Directors of Wedbush & Co., LLC **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Wedbush & Co., LLC (the Company) as of June 30, 2025 and the related notes (the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company at June 30, 2025, in conformity with U.S. generally accepted accounting principles. **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. 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2024. August 28, 2025 {5}------------------------------------------------ ### **Wedbush & Co., LLC** Statement of Financial Condition As of June 30, 2025 | (in thousands ) | | |---------------------------------------|------------------| | Assets | | | Ca s h | \$
10,607 | | Other a s se ts | 8 | | Total assets | \$
10,615 | | Liabilities and member's equity | | | Payable to a ffilia tes | \$
2,403 | | Other liabili ties | 3,601 | | Total liabilities | 6,004 | | Member's equity | | | Addi ti onal paidͲi n capi tal | 1,000 | | Re tained ea rnings | 3,611 | | Total member's equity | 4,611 | | Total liabilities and member's equity | \$

10,615 | See accompanying notes to the Statement of &inancial ondition {6}------------------------------------------------ #### **Wedbush & Co., LLC** Notes to the Statement of Financial Condition June 30, 2025 #### **(1) Organization** Wedbush & Co., LLC (the Company) is a Delaware limited liability company. The Company is a financial services company headquartered in New York, New York, that provides private placement services to institutional clients located in the United States of America. The Company is registered as a securities brokerͲdealer with the U.S. Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB). The Company is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation. The Company's direct parent and sole member is Wedbush Financial Services, LLC (WFS), a Delaware limited liability company. WFS is majority owned by Wedbush Capital (WedCap). #### **(2) Summary of Significant Accounting Policies** #### *(a) Basis of Presentation* The Company follows accounting principles generally accepted in the United States of America (U.S. GAAP), as established by the Financial Accounting Standards Board (FASB), to ensure consistent reporting of financial condition. The U.S. dollar is the functional currency of the Company. #### *(b) Use of Estimates* In preparing the Statement of Financial Condition, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Statement of Financial Condition*.* Although estimates and assumptions are based on the best available information, actual results could differ materially from these estimates. #### *(c) Segment Reporting* The Company hasidentified its Chief Financial Officer asthe chief operating decision maker(CODM). The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information from the Company as a whole. Net income is used by the CODM to monitor budget versus actual results for purposes of assessing business performance and making decisions about resource allocation. Additionally, the CODM uses excess net capital (refer to Note 6 "Net Capital Requirement and Other Regulatory Matters"), 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 accounting policies of the segment are the same as those described in Note 2 "Summary of Significant Accounting Policies". Segment asset balances are presented in the Statement of Financial Condition. #### *(d) Cash* Cash is comprised of on demand deposits. Cash on deposit with financial institutions, may, at times, exceed federal insurance limits. {7}------------------------------------------------ Notes to the Statement of Financial ConditionͲcontinued June 30, 2025 #### *(e) Revenue Recognition* Revenues from private placements are recognized when the services related to the underlying transaction are completed under the terms of the engagement. Additional information regarding revenue recognition isincluded in Note 4 "Revenue from Contracts with Customers." #### *(f) Income Taxes* The Company computes its tax provision in accordance with ASC 740, *Income Taxes* (ASC 740), on a modified separate return method. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax basis of the Company's assets and liabilities. Deferred taxes are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on future deferred tax liabilities and deferred tax assets, as well as other changes in income tax laws, are recognized in the period during which such changes are enacted. The Company follows guidance under ASC 740, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. Under ASC 740, the Company determines whether it is more likely than not that an income tax position will be sustained upon examination by tax authorities. ASC 740 prescribes a recognition threshold and a measurement attribute for the financialstatement recognition and measurement of tax positions taken or expected to be taken in a tax return. Sustainable income tax positions are measured to determine the amount of benefit to be recognized in the Statement of Financial Condition based on the largest amount of benefit that is more likely than not to be realized upon ultimate settlement. #### *(g) Recent Accounting Developments* #### **Improvements to Reportable Segment Disclosures** In November 2023, the FASB issued ASU 2023Ͳ07, Segment Reporting (Topic 280): *Improvements to Reportable Segment Disclosures*. This guidance requires enhanced disclosures about significant segment expenses. This ASU also requires a public entity with a single reportable segment to include all the disclosures required by Topic 280. The ASU is effective for annual periods beginning after December 15, 2023, with early adoption permitted, and is to be applied on a retrospective basis. The Company adopted the guidance as of July 1, 2024. The adoption of the amendments did not have a material impact in the Company's Statement of Financial Condition. Refer to Note 2c "Segment Reporting" for additional information on segment reporting. #### **Improvements to Income Tax Disclosures** In December 2023, the FASB issued ASU 2023Ͳ09, Income Taxes (Topic 740): *Improvements to Income Tax Disclosures*. The amendments in this update improve the transparency of income tax disclosures related to the rate reconciliation and income taxes paid by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Topic 740 is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of the new guidance but does not expect a material impact in its Statement of Financial Condition. {8}------------------------------------------------ Notes to the Statement of Financial ConditionͲcontinued June 30, 2025 #### **Disaggregation of Income Statement Expenses** In November 2024, the FASB issued ASU 2024Ͳ03, *Income Statement ͲReporting Comprehensive Income ͲExpense Disaggregation Disclosures* (Subtopic 220Ͳ40). The amendments in this update require disclosure in the notes to financial statement of specified information about certain costs and expenses. Subtopic 220Ͳ40 is effective for annual periods beginning after December 15, 2026, with early adoption permitted, and may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact of the new guidance but does not expect a material impact in its Statement of Financial Condition. #### **(3) Credit Risk** The Company engages in securities offerings executed with counterparties such as brokers and dealers. In the event that counterparties do not fulfill their obligations, the Company may be exposed to credit risk. The risk of default depends on the creditworthiness of the counterparty. It is the Company's policy to review the credit standing of each counterparty on an ongoing basis. #### **(4) Revenues from Contracts with Customers** The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had no receivables or deferred revenue outstanding related to revenues from contracts with customers at June 30, 2025. #### **(5) Income Taxes** The Company is classified as a disregarded entity for federal income tax purposes, whereas it is not considered to be separate from its sole member WFS, and included in the filing of WedCap's consolidated tax return for federal tax purposes and in WedCap's combined returns for certain states where such filing is required or permitted. The Company is also a party to a tax allocation agreement with WedCap. The Company has adopted the modified separate return approach, whereby the Company calculates its corresponding tax amounts in accordance with the current enacted tax laws and rates while also considering those tax attributesthat are realized or realizable by WedCap and corresponding consolidated or combined group. The Company believes its adopted modified separate return approach is systematic and rational and has been consistently applied. The Company had no material unrecognized tax benefits. WedCap is no longer subject to U.S. federal examinations for the years before June 30, 2022, and, with a few exceptions, to state and local tax examinations for the years before June 30, 2021. Included in Payable to affiliates in the Statement of Financial Condition are federal and state tax payable to WedCap of \$1.3 million at June 30, 2025. {9}------------------------------------------------ ## Notes to the Statement of Financial ConditionͲcontinued June 30, 2025 The Company recognizes deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As of June 30, 2025, the Company had no material deferred tax assets or liabilities. #### **(6) Net Capital Requirement and other Regulatory Matters** The Company is subject to the SEC's Uniform Net Capital Rule 15c3Ͳ1, which requires the maintenance of minimum net capital. The Company is required to maintain minimum net capital equal to the greater of 6Ͳ2/3% of Aggregate Indebtedness, or \$5 thousand. At June 30, 2025, the Company had net capital of \$4.6 million that was \$4.4 million in excess of the \$0.2 million required minimum net capital at that date. The Company's aggregate indebtedness was 53% of its net capital as of June 30, 2025. The Company does not claim an exemption under paragraph (k) of 17 C.F.R § 240.15c3Ͳ3. The Company does not carry securities accounts for customers or perform custodial functions related to customer securities, which allows the Company to file an exemption report under Footnote 74 to SEC Release 34Ͳ 70073. #### **(7) Contingencies** The Company may be subject to various proceedings and claims arising primarily from securities business activities, including lawsuits, arbitration claims and regulatory matters. The Company may be involved in other reviews, investigations, and proceedings by governmental bodies and selfͲregulatory organizations regarding its business, which may result in adverse judgments, settlements, fines, penalties, injunctions and other relief. The Company accruesfor a settlement when a liability is deemed probable and estimable in Other liabilities in the Statement of Financial Condition. At the present time, the Company has not recorded any loss contingencies in the Company's Statement of Financial Condition. #### **(8) RelatedͲParty Transactions** The Company has cost sharing agreements with affiliated company, Wedbush Securities, Inc. (WSI), related to shared resources such as employees, equipment, software and support services. Employees' compensation and benefits are allocated to the Company based on percentage of time worked for the Company. The Company remits monthly payment to WSI to cover the shared cost. At June 30, 2025, Payable to affiliatesin the Statement of Financial Condition included \$1.1 million related to cost sharing agreements. The Company has agreements with affiliates for other activities, including a tax sharing agreement with WedCap as described in Note 5 "Income Taxes." Unsettled amounts for these activities are recorded within Payable to affiliates in the Statement of Financial Condition. #### **(9) Subsequent Events** The Company has evaluated all events subsequent to June 30, 2025, up until the date the Statement of Financial Condition was issued, and has determined there were no events or transactions during said period that would require recognition or disclosure in the Statement of Financial Condition. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.