# MCLAUGHLIN RYDER INVESTMENTS, INC. X-17A-5 (2025-02-28) — Broker-dealer annual report - Company: MCLAUGHLIN RYDER INVESTMENTS, INC. - Form: X-17A-5 - Filed: 2025-02-28 - Period: 2024-12-31 - Accession: 0002013816-25-000029 - CIK: 1437108 - File #: 8-67911 - Type: Broker-dealer - Material weakness: No - Auditor: DeMarco Sciaccotta Wilkens & Dunleavy, LLP - Auditor location: Frankfort, IL - Contact: Ilina Stamova - Phone: 212-668-8700 - Email: istamova@acisecure.com - Website: acisecure.com - Signed by: Shawn McLaughlin (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1437108/000201381625000029/mripub.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30. 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-67911 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING 12/31/24 filing for the period beginning 01/01/24 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: McLaughlin Ryder Investments, Inc. TYPE OF REGISTRANT (check all applicable boxes): □ Security-based swap dealer 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.) 1421 Prince Street, Suite 200 (No. and Street) 22314 Alexandria VA (State) (Zip Code) (City) PERSON TO CONTACT WITH REGARD TO THIS FILING IStamova@acisecure.com 212-668-8700 Ilina Stamova (Email Address) (Area Code - Telephone Number) (Name) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* DeMarco Sciaccotta Wilkens & Dunleavy, LLP (Name — if individual, state last, first, and middle name) 60423 -20646 Abbey Woods Ct N, Suite 201 Frankfort (Zip Code) (State) (City) (Address) 5376 12/10/2010 (PCAOB Registration Number, if applicable) (Date of Registration with PCAOB)(if applicable) FOR OFFICIAL USE ONLY \* Claims for exemption from the requirement that the annual 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. CCTN 2-6.27 - SQ(-1)-11-2 phouse in this formation contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ # OATH OR AFFIRMATION | Shawn McLaughlin | swear (or affirm) that, to the best of my knowledge and belief, the | | |-------------------------------------------------------------------------------|---------------------------------------------------------------------|--| | financial report pertaining to the firm of McLaughlin Ryder Investments, Inc. | | | report perculining to the firm , 2024 12/31 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. MICHELLE GROKLIN Notary Public - Reg. # 336211 Commonwealth · Virginia Commission Expires : Mar. 31, 2027 | Signature: | | |------------|--| | Title: | | | CEO | | Notary Public # This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - = (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - O (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [] (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) 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 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - O (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (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. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ (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-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [] (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | as applicable. - □ (y) Report describing any material inadequacies found to 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: \_ - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ Financial Statement and Supplemental Information For the Year Ended December 31, 2024 **Filed pursuant to Rule 17a-5€(3) under the Securities Exchange Act of 1934 as PUBLIC DOCUMENT.** {3}------------------------------------------------ # **FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2024** ### TABLE OF CONTENTS | | Page | |---------------------------------------------------------|------| | | | | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors McLaughlin Ryder Investments, Inc. # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of McLaughlin Ryder Investments, Inc. (the "Company") as of December 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of McLaughlin Ryder Investments, Inc. 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 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 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 McLaughlin Ryder Investments, Inc.'s auditor since 2017. Frankfort, Illinois February 24, 2025 {5}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION** **December 31, 2024** | ASSETS
Cash and cash equivalents | \$
175,331 | |-----------------------------------------------|---------------| | Due from clearing broker | 132,518 | | Investments at fair value | 647,285 | | Prepaid expenses | 34,248 | | Property and equipment, net | 5,034 | | | | | Total assets | \$
994,416 | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities: | | | Accounts payable and accrued expenses | \$
20,864 | | Accrued commissions | 13,385 | | Payroll liability | 15,756 | | Due to affiliate | 1,494 | | Total liabilities | 51,499 | | Commitments and Contingencies (Note 12) | | | Stockholder's equity | | | Common stock, no par value, 1,000 shares | | | authorized, 600 shares issued and outstanding | 14,000 | | Additional paid-in capital | 1,216,382 | | Accumulated deficit | (287,465) | | Total stockholder's equity | 942,917 | | Total liabilities and stockholder's equity | \$
994,416 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT** # **December 31, 2024** #### **Note 1 - Nature of Business** McLaughlin Ryder Investments, Inc. (The "Company") was incorporated on July 2, 2007 in Minnesota. The Company is registered in 33 states as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA) and Registered Investment Advisor as determined by the Securities and Exchange Commission (SEC). The Company operates within the exemptive provisions of (k)(2)(ii) of subparagraph (k)(2)(ii) of SEC Rule 15c3-3. Pursuant to the requirements of paragraph (k)(2)(ii), that the Company clear all transactions on customers behalf on a fully disclosed basis with a clearing broker-dealer. The clearing broker/dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker/dealer. The Company is wholly owned by McLaughlin Companies, LLC (the "Stockholder"). #### **Note 2 - Summary of Significant Accounting Policies** The accompanying financial statement are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). #### **Use of Estimates** The preparation of financial statements in conformity with U.S. GAAP 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. #### **a) Rev enue Recognition** The Company follows the revenue recognition guidance that requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies the performance obligation. Revenues are recognized in accordance with accounting guidance when persuasive evidence of an arrangement exists, the performance obligation has been met, the fee is fixed or determinable, and collection is reasonably assured. #### **Cash and Cash Equiv alents** For purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions and 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 Federal Deposit Insurance Corporation and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. #### **Fair v alue of inv estments** FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobserved inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: **Lev el 1:** Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. **Lev el 2:** Inputs to the valuation methodology include - quoted prices for similar assets or liabilities in active markets; - quoted prices for identical or similar assets and liabilities in inactive 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 correlation or other means If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. {7}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENT** #### **December 31, 2024** #### **Note 2 - Summary of Significant Accounting Policies (Continued) :** **Lev el 3:** Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's 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. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Investment transactions are recorded on a trade-date basis and are recorded at fair value. Net realized and unrealized gains and losses are reflected in the statement of operations. Interest income is recognized under the accrual basis. Municipal bonds are valued based on amortized cost. Cost is determined by the specific identification method for the purpose of computing realized gains or losses on investment transactions. Market risk primarily equals the changes in market value of investments. Theoretically, the Company's exposure is equal to the value of the investments purchased. #### **Due from clearing broker:** As of December 31, 2024 the due from clearing broker consists of the following: | Cash in firm accounts | \$
22,485 | |-----------------------------------|---------------| | Deposit | 108,598 | | Receivable for commissions earned | 1,435 | | Total due from clearing broker | \$
132,518 | The Company has \$100,000 deposited with Pershing LLC. The deposit is restricted per an agreement between the Company and Pershing LLC. This balance must remain deposited with Pershing LLC as long as the Company remains using their brokerage platform. #### **Property and equipment:** Property and equipment is stated at cost and is depreciated over the estimated useful lives by the use of the straight-line method. The estimated useful lives of the property and equipment are 3-5 years. Property and equipment consists of the following at December 31, 2024: | Office equipment | \$
7,948 | |-------------------------------|-------------| | Less accumulated depreciation | (2,914) | | Property and equipment, net | \$
5,034 | Depreciation expense associated with the property and equipment was \$1,683 for the year ended December 31, 2024. #### **b) Income Taxes** The Company has elected to be treated as an "S" Corporation under the provisions of the Internal Revenue Code and comparable state income tax law. As an S Corporation, the Company is generally not subject to corporate income taxes and the Company's net income or loss is reported on the individual tax return of the Stockholder of the Company. Therefore, no provision or liability for income taxes is reflected in the financial statements. Management has evaluated its tax positions and has concluded that the Company had taken no uncertain tax positions that could require adjustment or disclosure in the financial statements to comply with provisions set forth in ASC Section 740, Income Taxes. The Company is no longer subject to examination by federal and state taxing authorities prior to 2021. {8}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENT** #### **December 31, 2024** #### **Note 3 - Related Party** The Company has an agreement with the Stockholder for re-payment and division of applicable expenses. Those expenses include rent and other administrative expenses. During 2024, the Company expenses incurred with the Stockholder were \$257,568. At December 31, 2024,there were no outstanding amounts due to or from the Stockholder. The Stockholder of the Company owns 100% stake in Management Solutions Plus ("MSP"). At December 31, 2024, there was \$1,494 due to MSP. The Stockholder of the Company owns a 50% stake in Union Street Partners ("USP"). At December 31, 2024, there were no outstanding amounts due to or from USP. #### **Note 4- Fair Value Measurements** The following table sets forth by level, within the fair value hierarchy, the fair value of the Company's investments as of December 31, 2024: #### **Assets at Fair Value as of December 31, 2024** | | Lev el 1 | Lev el 2 | Lev el 3 | Total | |-----------------------------|-----------|----------|----------|-----------| | Assets: | | | | | | Equities | \$409,960 | | | \$409,960 | | Mutual Funds | 237,325 | | | 237,325 | | Total assets at Fair v alue | \$647,285 | | | \$647,285 | There were no transfers between levels during the year ended December 31, 2024. #### **Note 5- Retirement Plan** The Stockholder sponsors a qualified defined contribution 401(k) profit sharing plan for full time employees who meet the plan participation criteria. The Stockholder's plan provides for matching contributions equal to a percent of the eligible employee's compensation. The Stockholder is also permitted to make discretionary contributions on an annual basis. Matching contributions amounted to \$41,215 for the year ended December 31, 2024 which is recorded in payroll and related costs in the statement of operations. There were no discretionary contributions made during the year ended December 31, 2024. #### **Note 6- Financial Instruments - Credit Losses** The Company accounts for estimated credit losses on the financial assets measured at an amortized cost basis and certain off balance sheet credit exposures in accordance with FASB ASC 326-20, Financials Instruments - Credit Losses. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions and reasonable supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis, the allowance for credit losses is reported as a valuation account on the balance sheet that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported in bad debt expense, if applicable. The Company estimates expected credit losses over the life of the financials assets as of the reporting date based on the relevant information about the past events, current conditions, and reasonable and supportable forecasts. As a result of the management analysis of any expected losses, the company determined no allowance for credit losses was required. {9}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENT** **December 31, 2024** #### **Note 7- Leases** The Company leases an office space from the Stockholder on a month-to-month basis. The total cost for rent for the year ended December 31, 2024 was \$136,967. As part of the agreement with the Stockholder, the Company remits payment for its applicable expenses to the Stockholder. #### **Note 8 - Rev enue from Contracts with Customers** The following table presents the revenue disaggregated by segment for the year ending December 31, 2024: | Year Ending December 31, | 2024 | | |------------------------------------|-----------|--| | Commission Rev enue | | | | Transaction fees | 313,561 | | | Distribution fees | 427,627 | | | Total commission revenue | 741,188 | | | Adv isory Rev enue | | | | Asset management fees | 3,492,467 | | | Total advisory fees | 3,492,467 | | | Other Rev enues | 16,408 | | | 1) Unrealized gain on inv estments | 60,096 | | | 1) Interest Income | 19,205 | | | Total Revenue | 4,329,364 | | 1) These revenue items are not within the scope of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. This revenue is included in the table above in order to reconcile to total net revenues per the Statement of Operations. #### **Commission Rev enue:** #### *Transaction fees* Substantially all transaction fees are generated through commissions earned for executing trades for clients in individual equities (including ETF's), fixed income securities, mutual funds and variable annuities. This revenue is earned and collected when trades are executed. #### *Distribution fees* The Company earns revenue for selling and servicing mutual funds and variable annuities. The performance obligation is satisfied at the time of each individual sale (client purchase). A portion of the revenue is based on a fixed rate applied, as a percentage, to the amount invested at the time of sale (client purchase). The remaining revenue is recognized over the time the client owns the investment and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the investment. The ongoing revenue is not recognized at the time of the sale because it is variably constrained due to factors outside of the Company's control including market volatility and client behavior. The revenue will not be recognized until it is earned by the Company. {10}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENT** **December 31, 2024** #### **Note 8- Rev enue from contracts with customers (continued)** **Commission Rev enue (Continued) :** Advisory revenue: #### *Asset management fees* The Company earns revenue for performing asset management services for clients. The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management. Assets under management vary with market fluctuations and client behavior. The asset management performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the term of the contract. Asset management fees are billed and received quarterly in advance and recognized as earned over the course of the current quarter. #### **Note 9 - Multiple Reportable Segments** The Company conducts its business activities and reports financial results as multiple reportable segments based on sources of revenue, Commission Revenue, Advisory Revenue, Unrealized gain on investments, Distribution fees 12b-1 revenue, and Interest income (the "Segments"). The Chief Operating Decision Maker ("CODM") reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues, expenses, and net income by sources of revenue for purpose of allocating resources and evaluating financial performance. The nature of business and accounting policies of the Segments are the same as described in the organization and nature of business and summary of significant accounting policies. The CODM is the senior executive committee that includes the chief operating officer, chief financial officer, and the chief executive officer. During 2024, none of the Company's external customers made up more than 10% of revenues. #### **Note 10 - Indemnifications** 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 their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly executed 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 statements for these indemnifications. The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into the normal course of business. 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 statements for these indemnifications. #### **Note 11 - Net Capital Requirements** The Company is subject to SEC Uniform Net Capital Rule 15c3-1, which requires maintenance of minimum net capital. The Company uses the basic method, which requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2024, the Company had a net capital of \$807,599 which was \$802,599 above its required net capital of \$5,000. The Company's net capital ratio was 0.064 to 1 at December 31, 2024. {11}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENT** **December 31, 2024** ### **Note 12 - Commitments and Contingencies** The Company is involved in contingent matters incidental to its ordinary course of business. In Management's opinion, none of these items would have a material effect on the Company's financial position. #### **Note 13 - Subsequent Ev ents** In accordance with the provisions set forth in FASB ASC Topic 855, Subsequent Events, Management has evaluated subsequent events through the date the financial statements were issued, February 24, 2025. Management has determined that there are no material events that would require adjustment or disclosure in the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.