# PARK MADISON PARTNERS LLC X-17A-5 (2025-03-27) — Broker-dealer annual report - Company: PARK MADISON PARTNERS LLC - Form: X-17A-5 - Filed: 2025-03-27 - Period: 2024-12-31 - Accession: 0002013816-25-000054 - CIK: 1355263 - File #: 8-67270 - Type: Broker-dealer - Material weakness: No - Auditor: Nawrocki Smith, LLP - Auditor location: Hauppauge, NY - Contact: Michele Silvestro - Phone: 212-668-8700 - Email: msilvestro@acisecure.com - Website: acisecure.com - Signed by: Nancy Ina Lashine (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1355263/000201381625000054/parkmadpubaud.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART II | SEC FILE NUMBER | | |-----------------|--| | 8-67270 | | 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 AND ENDING 12/31/2024 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION # PARK MADISON PARTNERS LLC NAME OF FIRM: TYPE OF REGISTRANT (check all applicable boxes): Broker-dealer ☐ Security-based swap dealer Check here if respondent is also an OTC derivatives dealer Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 200 HARBOR ROAD | | (No. and Street) | | | |---------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|--------------------------| | PORT WASHINGTON | NY | | 11050 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Michele Silvestro | 212-668-8700 | | msilvestro@acisecure.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Nawrocki Smith LLP | | | | | | (Name - if individual, state last, first, and middle name) | | | | 100 Motor Parkway, Suite 580 Hauppauge | | NY | 11788 | | (Address) | (City) | (State) | (Zip Code) | | 03/04/2009 | | 3370 | | | (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}------------------------------------------------ | Nancy Ina Lashine | swear (or affirm) that, to the best of my knowledge and belief, the | | |----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|------------| | tinancial report pertaining to the firm of PARK MADISON PARTNERS LLC | | as of | | 12/31 | 2 024 is true and correct. I further swear (or affirm) that neither the company nor any | | | as that of a customer. | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest.jp any account classified solely | | | ﻟﻠﻤﺴﻠﺴﻞ ﺍﻟﻤﺴﺘﻤﺮ | TONYA M. PARKER
NOTARY PUBLIC, STATE OF NEW YORK
Signature:
Registration No. 01PA6012927
Qualified in Kings County
Title: | 11/14/2019 | - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # Park Madison Partners, LLC Financial Statement With Report of Independent Registered Public Accounting Firm As of and for the Year Ended December 31, 2024 {3}------------------------------------------------ ### Park Madison Partners, LLC As of and for the Year Ended December 31, 2024 #### Contents | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-------| | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3 - 7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Park Madison Partners, LLC: ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Park Madison Partners, LLC (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 Park Madison Partners, 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 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 U.S. 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 presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as Park Madison Partners, LLC's auditor since 2023. Hauppauge, New York March 26, 2025 {5}------------------------------------------------ ### Statement of Financial Condition December 31, 2024 #### ASSETS | Cash and cash equivalents
Investments, at fair value
Due from customers
Accounts receivable
Fixed assets
Prepaid expenses and Other Assets
Security deposits
Right of Use Asset | 608,313
\$
2,388,408
23,103
12,546,747
3,491
225,666
28,850
2,402,283 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------| | TOTAL ASSETS | \$
18,226,860 | | LIABILITIES AND MEMBERS' EQUITY | | | LIABILITIES:
Accounts payable and accrued liabilities
Deferred revenue
Lease liability | 142,187
\$
25,000
2,595,862 | | TOTAL LIABILITIES | 2,763,049 | | MEMBERS' EQUITY | 15,463,811 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | \$
18,226,860 | See accompanying notes to financial statement {6}------------------------------------------------ #### 1. Organization and Nature of Business Park Madison Partners, LLC (the "Company") was formed on January 20, 2006 and is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company provides placement agent services primarily to domestic and international real estate investment funds. #### 2. Summary of Significant Accounting Policies #### Revenue Recognition The Company recognizes revenue on its management and advisory contracts on a pro-rata basis over the term of the contract, which approximates when services are performed, in compliance with the newly effective revenue recognition rules. In accordance with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASC Topic 606") revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. Advisory income revenues received in connection with placement engagements will be recognized as services are performed, in compliance with the revenue recognition rules. The Company believes services are performed approximately in line with when payments are received, similar to management and advisory contracts. Therefore, revenue will be recognized pro-rata over the life of the agreement. Revenue for success fees earned for placement services is recognized upon either the closing of the associated funds, or a written commitment from the investor, as applicable, calculated in either case as a percentage of the capital commitment made by an investor. However, If the Company is still obligated to provide any services post close, revenue will be recognized per the revenue recognition rules. In some cases, based on the contract, the receipt of some portion of a success fee may be paid subsequent to the date the success fee is earned. In certain cases, interest accrues at the contracted stated rate for any period in which a placement fee receivable is outstanding. The accrued interest is included in the amount reflected as placement fees receivable. In any event, revenue earned in this case will be recognized per the recently effective revenue recognition rules. No interest has been charged on success fee staged payments during 2024. The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to receive. #### Significant Judgments The Company applies judgment in determining the timing of revenue recognition, particularly for advisory fees, where revenue is recognized over time based on the stage of completion. {7}------------------------------------------------ #### Cash and Cash Equivalents The Company considers all money market accounts and liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. #### Fair Value Measurements Fair value measurements are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy prioritizes observable and unobservable inputs used to measure fair value into three levels. | | Park Madison Partners, LLC | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|---------|---------|---|----------------------------|--| | | Notes to Financial Statement | | | | | | | As of And For The Year Ended December 31, 2024 | | | | | | | | Cash and Cash Equivalents
The Company considers all money market accounts and liquid debt instruments purchased with an
original maturity of three months or less to be cash equivalents. | | | | | | | | Fair value measurements are based on the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. In
order to increase consistency and comparability in fair value measurements, a fair value hierarchy
prioritizes observable and unobservable inputs used to measure fair value into three levels. | | | | | | | | | Level 1 | Level 2 | Level 3 | | Total | | | Assets
Securities, at fair value | | | | | | | | Money Market Fund
Bond Fund | \$
2,214,701
173,707 | | | | \$
2,214,701
173,707 | | | Total Securities, at fair value | \$
2,388,408 | \$
- | \$ | - | \$
2,388,408 | | | | | | | | | | The fair value hierarchy is categorized into three levels based on the inputs as follow: Level 1) Valuations based on unadjusted quoted priced in active markets for identical investments. Level 2) Valuations based on (a) quoted prices in markets that are not active; (b) quoted prices for similar investments in active markets; (c) inputs other than quoted prices that are observable or inputs derived from or corroborated by observable market data correlation or otherwise. Level 3) Valuations based on inputs that are unobservable, supported by little or no market activity, and significant to the overall fair value measurement. An asset or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. #### Income Taxes The Company is treated as a disregarded entity for federal and state income tax purposes and, therefore, does not record a provision for income taxes, except as noted following. Accordingly, the members report their share of the Company's income or loss on their income tax returns. Income taxes are determined on an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company follows the standards for establishing and classifying any tax provisions for uncertain tax positions and recognizing any interest and penalties. The Company's policy is to recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company is no longer subject to federal or state and local income tax examinations by tax authorities for years before 2021. #### Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from these estimates. {8}------------------------------------------------ #### Accounts receivable and allowance for credit losses The Company records an allowance for bad debts on receivables the Company deems uncollectible. Placement fees receivable are recognized and carried at net realizable value less an allowance for doubtful accounts. It is the policy of management of the company to review the outstanding accounts receivable as well as the bad debt write-offs and collections experienced in the past, economic factors, specific customer information, and current credit considerations to establish an allowance for doubtful accounts for potentially uncollectible amounts. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. As of December 31, 2024 the Company has deemed all receivables collectible and has not recorded an allowance for doubtful accounts. #### 3. CONCENTRATIONS Two clients accounted for approximately 98% of investment advisory and private placement revenue for the current year. The Company maintains cash with financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). At times, cash balances may be in excess of balances insured by FDIC. As of December 31, 2024, amounts excess the insurance limit were \$378,854. The Company also maintains cash and securities with a financial institution that is a member of the Securities Investor Protection Corporation ("SIPC"). Securities held by that institution on behalf of the Company are protected by SIPC up to \$500,000, which includes up to \$250,000 of protection for cash. At times the value of the Company's account may exceed the SIPC insurance limits. At year end securities in this financial institution exceeded SIPC insurance limits by approximately \$1.89 million. 2025 8,720,428 2026 3,538,818 2027 287,500 \$ 12,546,747 #### 4. PLACEMENT FEES RECEIVABLE Based on the terms of various contracts and the estimated collections, the projected receivables as of year-end to be collected over the next three years are as follows: | | S | 12,546,747 | |------|---|------------| | 2027 | | 287,500 | | 2026 | | 3,538,818 | | 2025 | | 8,720,428 | #### 5. 401K PLAN The Company adopted a qualified Defined Contribution Retirement Plan in accordance with Section 401(k) of the Internal Revenue Code (the "Plan"). The Company's Plan contributions are based on employee pre-tax elections made during the year. #### 6. OPERATING LEASES On July 07, 2021, the Company entered into an operating lease agreement to lease office space in New York City, which expires August 12, 2029. The Generally Accepted Accounting Principles ("GAAP") lease accounting standard ASC 842 requires all leases longer than 12 months to be recorded as assets and liabilities on balance sheets. Rent is recognized on a straight-line basis over the term of the lease and the Company recognizes a right-of-use asset and an operating lease liability in connection with the lease agreement. The lease asset and liability are discounted to the current period using the firm's incremental borrowing rate. The Company recognizes straight-line rent expense and, as a result, amortized the lease liability throughout 2024. The future cash payments are recorded as a decrease to the operating lease liability and the asset is amortized on a straight-line basis. {9}------------------------------------------------ #### Notes to Financial Statement #### 6. OPERATING LEASES (Continued) As of December 31, 2024, the future minimum lease payments for the Company's operating lease for each of the years ending December 31 were as follows: | Park Madison Partners, LLC | | |------------------------------------------------|------------------------| | Notes to Financial Statement | | | As of And For The Year Ended December 31, 2024 | | | | | | | | | | | | Future Maturities of Leases | Operating | | 2025 | 486,659 | | 2026
2027 | 729,988
729,988 | | 2028 | 729,988 | | 2029 | 486,659 | | Total Lease Payments | 3,163,281 | | Less: Interest
Total Maturities | (567,419)
2,595,862 | | | | | Weighted Average Calculations
Lease Term | Operating | | Current Year End | 12/31/2024 | | Number of Months | 56 | | Ending Obligation | 2,595,862 | | Discount Rate
Total Remaining Payments | 3,163,281 | | Discount Rate | 8.00% | | | | | Ending ROU Asset Balance | 2,402,283 | The Company also currently operates out of an office owned by an officer of the Company. Rent on this office is \$2,000 per month. For the year ended December 31, 2024, total expense of \$24,000 was included in rent & occupancy on the Statement of Income. Total rent and occupancy expense amounted to \$483,301 for the current year. The discount rate used in the calculation of the Right of use asset and Lease liability on the statement of financial condition is 4% per annum. #### 7. FIXED ASSETS Depreciation is provided on the straight-line method over the estimated useful lives. | | | Estimated Useful
Life | |------------------------------------|-------------------|--------------------------| | Equipment | \$
88,493 | 5 years | | Furniture and fixtures
Subtotal | 11,513
100,006 | 7 years | | Less accumulated depreciation | (96,516) | | | | \$
3,491 | | {10}------------------------------------------------ #### 7. NET CAPITAL AND RESERVE REQUIREMENTS The Company is subject to the Uniform Net Capital Rule under the Securities Exchange Act of 1934 (the "Rule"). The 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. At December 31, 2024, the Company's net capital was \$2,484,548 which exceeded required net capital of \$24,051 by \$2,460,497. The percentage of aggregate indebtedness to net capital was 14.52%. Under the exemptive provisions of rule 15c3-3, the Company is required to segregate funds in a special reserve account for the exclusive benefit of customers. #### 8. SEGMENT REPORTING The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of placement and advisory fees. As described in FASB ASU 2023-07, FASB 280, operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the "CODM"). The Company's CODM is the Chief Executive Officer. The CODM reviews revenues and expenses presented on a basis consistent with the presentation of the statement of income for purposes of making operating decisions, allocating resources, and evaluating financial performance. The measure of segment assets is reported on the balance sheet as total assets. As a result, the Company in its entirety is a single reportable segment. The accounting policies of the Company's single reportable segment are the same as those described in this Note 2. Refer to Note 1 for a description of the single segment's business. #### 9. COMMITMENTS AND CONTINGENCES The Company is subject to litigations in the normal course of business, The Company has no litigation in progress as of December 31, 2024. #### 10. SUBSEQUENT EVENTS Management of the Company has evaluated, events and transactions that may have occurred since January 1, 2024 to March 26, 2025 and determined that there are no material events that would require recognition or disclosure in the Company's financial statements. 7 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.