# CARLETON MCKENNA ADVISORS, LLC X-17A-5 (2025-02-20) — Broker-dealer annual report - Company: CARLETON MCKENNA ADVISORS, LLC - Form: X-17A-5 - Filed: 2025-02-20 - Period: 2024-12-31 - Accession: 0002013816-25-000018 - CIK: 1531072 - File #: 8-68971 - Type: Broker-dealer - Material weakness: No - Auditor: Hobe & Lucas, Certified Public Accountants, Inc. - Auditor location: Independence, OH - Contact: Monique Romero - Phone: 212-668-8700 - Signed by: Christopher McKenna (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1531072/000201381625000018/cmckennapublicaudit.pdf --- {0}------------------------------------------------ S | | 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 01/01/2024 | | | | | | | MM/DD/YY | | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Carleton McKenna Advisors, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
@ Broker-dealer
[] Check here if respondent is also an OTC derivatives dealer | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 1801 East Ninth Street, Suite 1425 | | | | | | | (No. and Street) | | | | | Cleveland | ОН | | | 44114 | | (City) | | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Monique Romero | 212-668-8700 | | mromero(@acisecure.com | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Hobe & Lucas, Certified Public Accountants, Inc. | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 6000 Freedom Square Drive Suite 550 Independence | | | ОН | 44131 | | (Address) | (City) | | (State) | (Zip Code) | | October 20, 2003 | | | 126 | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | | {1}------------------------------------------------ ## **OATH OR AFFIRMATION** | I, ctvtstopherMcKenna | | swear (or affirm) that, to the best
of my knowledge and belief,
the | |--------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------| | financial report pertaining | to the firm of Caneton McKenna Advisors,
LLC | as of | | 12/31
2 024 | 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 classified
solely | | as that of a customer.
Registration No.
Qualified in
Commission | MONIQUE ROMERO
NOTARY PUBLIC, STATE OF NEW YORK
01 RO6308967
New York County
~pires August 4,
2026 | Title:
Managing Director | NotaryPu c # **This fllln1•• contains (check all applicable boxes):** - ii (a) Statement of financial condition. - ii (b) Notes to consolidated statement of financial condition. - D(f) Statement of income (loss) or, If there is other comprehensive Income in the perlod(s) presented, a statement of comprehensive income (as defined In § 210.1-02 of Regulation S-X). - □ (d} Statement of cash flows. - ii (e) Statement of changes in stockhold~rs' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (I) Computation of tangible net worth under 17 CFR 240.18a-2. - □ 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - D(I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.lSa-4, as applicable, If material differences exist, or a statement that no material differences exJst. - D(p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - Iii (q) Oath or affirmation in accordance with 17 CFR 240.17a-S~ 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - O(r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - Ii (t) Independent public accountant's report based on an examination of the statement of financial condition. - D(u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - O(v) Independent public accountant'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 applicable. - □ (w) Independent public accountant's report based on a review of the ex~mption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - □ (><) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material Inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - ••ro request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e)(3) or 17 CFR 240.18o-7(d){2)*1* as applicable. {2}------------------------------------------------ **Carleton McKenna Advisors, LLC Financial Statement** **December 31, 2024** {3}------------------------------------------------ **Carleton McKenna Advisors, LLC TABLE OF CONTENTS December 31, 2024** | ANNUAL AUDITED FOCUS REPORT FACING PAGE | 1-2 | |---------------------------------------------------------------------------------------|-------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON THE FINANCIAL STATEMENT | 3-4 | | | | | FINANCIAL STATEMENT
Statement of Financial Condition | 5 | | Notes to Financial Statement | 6 - 8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Carleton McKenna Advisors, LLC # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Carleton McKenna Advisors, LLC as of December 31, 2024, 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 Carleton McKenna Advisors, LLC as of December 31, 2024 in conformity with the accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of Carleton McKenna Advisors, LLC's management. Our responsibility is to express an opinion on Carleton McKenna Advisors, LLC'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 Carleton McKenna Advisors, 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. ![](_page_4_Picture_9.jpeg) {5}------------------------------------------------ We have served as Carleton McKenna Advisors, LLC's auditor since 2019. Independence, Ohio February 18, 2025 {6}------------------------------------------------ # **Carleton McKenna Advisors, LLC Statement of Financial Condition December 31, 2024** | ASSETS | | |-------------------------------------------|-----------------| | Cash | \$
178,269 | | Commissions receivable (net of allowance) | 315,000 | | Accounts receivable - affiliate | 1,743,371 | | Prepaid expenses | 2,422 | | Total assets | \$
2,239,062 | | | | | Liabilities and Member's Equity | | | Liabilities | | | Accounts payable and accrued expenses | \$
8,378 | | Total liabilities | 8,378 | | | | | Member's Equity | 2,230,684 | | Total liabilities and member's equity | \$
2,239,062 | The accompanying notes are an integral part of this financial statement. {7}------------------------------------------------ #### **1. Organization** Carleton McKenna Advisors, LLC (the "Company") is an Ohio limited liability company that is a registered broker dealer with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly owned subsidiary of Carleton McKenna & Co., LLC ("Parent"). The Company, which has agreed to limit its business to corporate finance and investment banking activities, is directly affected by general economic and market conditions, including fluctuations in volume and price level of securities and changes in interest rates, which have an impact on the Company's liquidity. #### **2. Summary of Significant Accounting Policies** #### *The following are the significant accounting policies followed by the Company:* *Investment Banking* - Consistent with FASB ASC 606 (Revenue from Contracts with Customers), revenue for investment banking services, contingent private placement fee work is recorded as revenue upon closing of the transaction, and the income is reasonably determinable for fees arising from the private placement of securities. Non-refundable retainers charged at the beginning of investment banking services are recorded as revenue when the engagement letter is signed. Investment banking revenues also include fees earned from providing merger and acquisition consulting, financial restructuring advisory services and financial consulting services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time requires the Company to make significant judgements that may affect the timing and measurement of revenue recognition. Monthly retainers and hourly billings are recorded as revenue when invoiced. Revenue is recognized only when contractual obligations have been met. *Income taxes* - No provisions have been made for income taxes since the Company is a single member limited liability company and is considered a disregarded entity for income tax purposes. The sole member is liable for income taxes based on the Company's taxable income. The Company recognizes and discloses uncertain tax positions in accordance with accounting principles generally accepted in the United States of America (GAAP). As of, and during the year ended December 31, 2024 the Company did not have liability for unrecognized tax benefits. The Company is no longer subject to examination by federal and state taxing authorities prior to 2021. *Cash* – The Company maintains its cash in deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any significant losses in such accounts. Management of the Company believes it is not exposed to any significant credit risk on its cash. *Concentration of Credit Risk* – The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. {8}------------------------------------------------ #### **2. Summary of Significant Accounting Policies (Continued)** *Commissions Receivable* - Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment upon receipt of invoice. The Company does accrue interest on delinquent customer balances. Accounts receivable are stated at the amount billed to the customer. Customer account balances with invoices dated over 30 days old are considered delinquent. Payments of accounts receivable are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed 90 days from the invoice date and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. Additionally, management estimates an allowance for the aggregate remaining accounts receivable based on historical collectability. As of December 31, 2024 and 2023, accounts receivable were \$315,000 and \$90,662. At December 31, 2024, accounts receivable has an allowance of \$0. During the year, an allowance for \$150,000 was reversed. *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 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 may differ from those estimates and assumptions. *Segment reporting* - The Company follows ASC 280, Segment Reporting (including adoption of ASU 2023-07), which requires companies to disclose segment data based on how management makes decisions about allocating resources to segments and evaluating performance. The Company conducts its business activities and reports financial results as a single reportable segment, brokerage services segment. Using the management approach, qualitative and quantitative criteria established by ASC 280, the Company has determined it has a single reportable segment. The Chief Operating Decision Maker ("CODM") makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results, using net income that is also reported on the income statement as net income. There are no reconciling items to the income statement. The measurement of segment assets is reported on the balance sheet as total assets. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the brokerage services segment or into other parts of the entity, such as to pay distributions to the Parent. The Company's CODM is the CEO. The nature of business and accounting policies of the brokerage services segment are the same as described in the organization and nature of business and summary of significant accounting policies. *Subsequent events* - Management has evaluated the impact of all subsequent events through February 18, 2025 the date the financial statements were available to be issued and has determined that there were no subsequent events requiring disclosure in these financial statements. #### **3. Related Party Transactions** The Company has an expense agreement with its Parent company for certain expenses related to rent, technology, services and supplies. The Company's allocation of shared expenses totaled \$36,000 in 2024 and consisted of compensation expenses of \$22,140, office and other expenses of \$10,656, and occupancy expenses of \$3,204. At December 31, 2024 there was a receivable of \$1,743,371. {9}------------------------------------------------ ### **4. Concentration of Revenues** The Company performs corporate finance and investment banking activities. These activities generally involve a limited number of clients and transactions that have varying realization periods and result in fluctuating revenues. ### **5. Net Capital Requirements** The Company is a member of the FINRA and is subject to the SEC Uniform Net Capital Rule 15c3-1. This Rule 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. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2024, the Company had net capital of \$169,891 which was \$164,891 in excess of its required net capital of the higher of \$5,000 or 6.67% of aggregate indebtedness. The Company's percentage of aggregate indebtedness to net capital was 4.93%. The net capital rules may effectively restrict the distribution of equity to the Member. ### **6. Computation for Determination of Reserve Requirements** The Company will operate in accordance with SEC Rule 15c3-3, specifically 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 does not accept customer funds or securities and will not have possession of any customer funds or securities in connection with its activities. #### **7. Commitments and Contingencies** The Company is not aware of any material commitments or contingencies. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.