# BLINK SECURITIES LLC X-17A-5 (2025-01-22) — Broker-dealer annual report - Company: BLINK SECURITIES LLC - Form: X-17A-5 - Filed: 2025-01-22 - Period: 2024-12-31 - Accession: 0002013816-25-000005 - CIK: 1787668 - File #: 8-70406 - Type: Broker-dealer - Material weakness: No - Auditor: Ryan & Juraska LLP - Auditor location: Chicago, IL - Contact: Robert Peters - Phone: 2126688700 - Signed by: Jared Gerstenblatt (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1787668/000201381625000005/blinkaudit.pdf --- {0}------------------------------------------------ # UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: SEC FILE NUMBER # ANNUAL REPORTS FORM X-17A-5 PART III | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | OMB APPROVAL
OMB Number:
Expires:
Estimated average burden | |--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------| | ANNUAL REPORTS | | | FORM X-17A-5 | | | PART III | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | | | MM/DD/YY | MM/DD/YY | | A.
REGISTRANT IDENTIFICATION | | | NAME OF FIRM: _______________________________________________________________________ | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Security-based swap dealer | Major security-based swap participant | # NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ | | NAME OF FIRM: _______________________________________________________________________ | | | |---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------------| | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | _____________________________________________________________________________________ | | | | | (No. and Street) | | | | | _____________________________________________________________________________________ | | | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | _____________________________________________________________________________________ | | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | B.
ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | _____________________________________________________________________________________ | | | | | (Name – if individual, state last, first, and middle name) | | | | | _____________________________________________________________________________________ | | | | (Address) | (City) | (State) | (Zip Code) | | | _____________________________________________________________________________________ | | | | (Date of Registration with PCAOB)(if 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. {1}------------------------------------------------ | Jared Gerstenblatt | swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------|---------------------------------------------------------------------|-------| | financial report pertaining to the firm of Blink Securities LLC | | as of | | 12/31 | ? 024 | | ![](_page_1_Picture_3.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ **FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES PURSUANT TO SEC RULE 17a-5(d)** **December 31, 2024** **CONFIDENTIAL** {3}------------------------------------------------ #### For the Year Ended December 31, 2024 #### **Contents** | Report of Independent Registered Public Accounting Firm | 1 | |------------------------------------------------------------------------------------------------------------------------------------------|-------| | Financial Statements | | | Statement of Financial Condition | 2 | | Statement of Operations | 3 | | Statement of Changes in Members' Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6 - 7 | | Supplementary Information | | | Schedule of Computation of Net Capital Under Rule 15c3-1 of
the Securities and Exchange Commission | 8 | | Schedule of Determination of Reserve Requirements Pursuant to Rule 15c3-1 of
the Securities and Exchange Commission | 9 | | Schedule of Information Relating to the Possession or Control Requirments
Under Rule 15c3-1 of the Securities and Exchange Commission | 9 | | Report of Independent Registered Public Accounting Firm on Exemption Report | 10 | | Exemption Report | 11 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **RYAN & JURASKA LLP** # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Blink Securities, LLC # **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Blink Securities, LLC (the "Company") as of December 31, 2024, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Blink Securities, LLC as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** These financial statements are the responsibility of Blink Securities, LLC's management. Our responsibility is to express an opinion on the Company's financial statements 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 Blink 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 statements are 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 statements, 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. ## **Auditor's Report on Supplemental Information** The Supplementary Information (the "supplemental information") has been subjected to audit procedures performed in conjunction with the audit of Blink Securities, LLC's financial statements. The supplemental information is the responsibility of Blink Securities, LLC's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Blink Securities, LLC's auditor since 2021. Chicago, Illinois January 9, 2025 {5}------------------------------------------------ #### Statement of Financial Condition December 31, 2024 #### **ASSETS** ` | Cash
Prepaid and other assets
TOTAL ASSETS | \$
\$ | 185,001
7,293
192,294 | |--------------------------------------------------|----------|-----------------------------| | LIABILITIES AND MEMBERS' EQUITY | | | | LIABILITIES:
Accounts payable | \$ | - | | TOTAL LIABILITIES | | - | | MEMBERS' EQUITY | | 192,294 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | \$ | 192,294 | See accompanying notes to financial statements {6}------------------------------------------------ #### Statement of Operations For the Year Ended December 31, 2024 | REVENUE:
Commission Revenue | \$
- | |------------------------------------|-----------------| | Total revenue | - | | OPERATING EXPENSES: | | | Professional fees | 56,313 | | Rent expense | 24,000 | | Employee compensation and benefits | 20,545 | | Regulatory expense | 8,055 | | Other operating expenses | 8,175 | | Total expenses | 117,088 | | NET LOSS | \$
(117,088) | See accompanying notes to financial statements {7}------------------------------------------------ #### Statement of Changes in Members' Equity December 31, 2024 | Members' equity, January 1, 2024 | \$
159,382 | |------------------------------------|---------------| | Capital contributions | 150,000 | | Net loss | (117,088) | | Members' equity, December 31, 2024 | \$
192,294 | See accompanying notes to financial statements {8}------------------------------------------------ #### Statement of Cash Flows December 31, 2024 | OPERATING ACTIVITIES:
Net Loss | \$
(117,088) | |---------------------------------------------------------------------------------------------------------------------------------|-----------------| | Adjustments to reconcile net loss to net cash used in
operating activities :
(Increase) decrease in operating activities: | | | Prepaid and other assets | 1,434 | | Net cash used in operating activities | (115,654) | | FINANCING ACTIVITIES: | | | Capital contributions | 150,000 | | Net cash provided by financing activities | 150,000 | | NET INCREASE IN CASH AND CASH EQUIVALENTS | 34,346 | | CASH AT THE BEGINNING OF YEAR | 150,655 | | CASH AT THE END OF YEAR | \$
185,001 | {9}------------------------------------------------ Notes to Financial Statements For the Year Ended December 31, 2024 #### **1. Organization and Nature of Business** Blink Securities, LLC, (the "Company") was incorporated in the State of Delaware on August 1, 2019. As of August 9, 2021, The Company was approved as a registered broker-dealer with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company is approved for institutional execution and proprietary trading of exchange-traded equity securities and equity options contracts. #### **2. Summary of Significant Accounting Policies** #### **Basis of Accounting** The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and are stated in U.S. dollars. The following is a summary of the significant accounting policies used in preparing the financial statements: #### **Cash** Cash consists of funds maintained in a checking account held at financial institutions. #### **Revenue Recognition and Securities Valuation** Securities transactions and related revenue and expenses are recorded on a trade date basis. #### **Use of Estimates** The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Management determines that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from these estimates. #### **Income Taxes** The Company is a limited liability company with all taxable income or loss recorded in the income tax returns of its members. Accordingly, no provision for income taxes has been made in the accompanying financial statements. In accordance with GAAP, the Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, based on the technical merits of the position. Generally, the Company is no longer subject to income tax examinations by major taxing authorities for the years before 2021. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authorities. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2024. #### **Uncertain Tax Positions** The Company has adopted the provisions of Financial Accounting Standards Board (FASB) Topic 740, Accounting for Uncertainty in Income Taxes ("Uncertain Tax Positions"). This accounting guidance prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under Uncertain Tax Positions, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. The Company has evaluated its tax position for the year ended December 31, 2024, and does not expect any material adjustments to be made. {10}------------------------------------------------ Notes to Financial Statements For the Year Ended December 31, 2024 #### **3. Credit Concentration** At December 31, 2024, the Company had no cash balances in excess of FDIC limits. Management does not consider any credit risk associated with this receivable to be significant. #### **4. Related Party Transactions** The Company has entered into an expense sharing agreement with Chimera Securites, LLC., an affiliate of the Company. The terms of the expense sharing agreement provide that any expenses paid on behalf of the Company, such as salaries, rent and other various operating expenses are to be repaid to the affiliate at cost. Expenses recorded for services provided on behalf of the Company was \$62,545 as of December 31, 2024, and are included in employee compensation and benefits, rent, professional fees and other operating expenses on the statement of operations. As of December 31, 2024, there was no balance due and payable to the affiliate. #### **5. Recent Accounting Pronouncements** In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments - Credit Losses ("ASC 326"). The main objective of ASC 326 is to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. To achieve this objective, the amendments in this Topic replaces the incurred loss impairment methodology in U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. This is adjusted each period for changes in expected lifetime credit losses at the time the financial asset is originated or acquired. For financial assets measured at amortized costs (i.e., cash and accounts receivable), the Company has concluded that there are de minimus expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historical losses. On January 1, 2021, the Company adopted ASC 326 using the modified retrospective approach for all in-scope assets, which did not result in an adjustment to the opening balance in member's equity. At December 31, 2024 the Company did not record any allowance for any uncollectible receivables. #### **6. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (15c3- 1), which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 800% in the first year of operations, and 1500% in every year thereafter. At December 31, 2024, the Company had net capital of \$185,001, which was \$85,001 in excess of its required net capital of \$100,000. The Company's aggregate indebtedness to net capital ratio was 0.00% at December 31, 2024. #### **7. Contingencies** The Company, in the normal course of business, may be subject to various legal and regulatory proceedings. These matters are vigorously defended as they arise. The Company provides for expenses associated with such claims when such amounts are probable and can be reasonably estimated. The Company currently does not have any material amounts accrued for legal or regulatory proceedings. #### **8. Subsequent Events** The Company's management has evaluated events and transactions through January 9, 2025, the date the financial statements were available to be issued, noting no material events requiring disclosure in the Company's financial statements. {11}------------------------------------------------ #### (A LIMITED LIABILITY COMPANY) Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission December 31, 2024 | TOTAL MEMBERS' CAPITAL QUALIFIED FOR NET CAPITAL | \$
192,294 | |----------------------------------------------------------------------------------|---------------| | DEDUCTIONS AND/OR CHARGES:
Non-allowable assets: | | | Prepaid expenses | (7,293) | | Total Non-allowable assets | (7,293) | | NET CAPITAL | \$
185,001 | | AGGREGATE INDEBTEDNESS:
Accounts payable | - | | | \$
- | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum net capital, the greater of the statutory minimum or one fifteenth of AI | \$
100,000 | | Excess net capital | \$
85,001 | | Excess net capital less greater of 10% of aggregate | | | indebtedness or 120% of the minimum dollar amount required | \$
65,001 | | Percentage of aggregate indebtedness to net capital | 0.00% | | There are no material differences between the preceding | | | computation and the Company's corresponding unaudited Part II of | | Form X-17A-5 as of December 31, 2024. See Report of Independent Registered Public Accounting Firm {12}------------------------------------------------ (A LIMITED LIABILITY COMPANY) December 31, 2024 ### **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANT TO RULE 15C3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** The company is exempt from the provisions of Rule 15c3-3. #### **INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15C3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** The company is exempt from the provisions of Rule 15c3-3. See Report of Independent Registered Public Accounting Firm {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) **RYAN & JURASKA LLP** # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Blink Securities, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Blink Securities, LLC (the Company) stated that: The Company claimed exemption from 17 C.F.R. §240.15c3-3 under the following provision of 17 C.F.R. §240.15c3-3 (k)(2)(ii) and (2) the Company met the identified exemption provision in 17 C.F.R. §240.15c3-3(k) throughout the most recent fiscal year ended December 31, 2024 without exception. Blink Securities, LLC management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Blink Securities, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Chicago, Illinois January 9, 2025 {14}------------------------------------------------ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.