# HORANG SECURITIES, LLC X-17A-5 (2025-04-01) — Broker-dealer annual report - Company: HORANG SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-04-01 - Period: 2024-12-31 - Accession: 0000084940-25-000003 - CIK: 84940 - File #: 8-16608 - Type: Broker-dealer - Material weakness: No - Auditor: Rubio CPA PC - Auditor location: Atlanta, GA - Contact: Brian Megenity - Phone: 7702636003 - Email: bmegenity@bdcaonline.com - Website: bdcaonline.com - Signed by: Arnold Jung (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/84940/000008494025000003/hsaudl.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,** D.C. **20549** ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill | Estimated average burden | | | |--------------------------|----|--| | hours per response: | 12 | | | SEC FILE NUMBER | | | | | | | 8-16608 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 **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 **0 1/01 /24** MM/DD/YY AND ENDING **1 2 /3 1 / 2 4** MM/DD/VY **A. R: GISTRANT IDENTIFICATION** NAME oF FIRM: Harang Securities, LLC TYPE OF REGISTRANT (check all applicable boxes): ii Broker-dealer □ Security-based swap dealer □ Check here if respondent is also an OTC d:?rivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSII\ESS: (Do not use a P.O. box no.) 27 W 72nd St, #810 | | (No. and Street) | | | | |--------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|------------------------------------------|--| | New York | NY | | 10023 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TC THIS FILING | | | | | | Brian Megenity | (770) 263-6003 | | bmegenity@bdcaonline.com | | | (Name) | (Ar:?a Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing•
RUBIO CPA, PC | (Name - if irdividual, state last, first, and middle name) | | | | | 3500 Lenox Road NE, Suite 1500 Atlanta | | GA | 30326 | | | (Address) | (City) | (State) | (Zip Code) | | | 05/05/09 | | 3514 | | | | | | | (PCAOB R,g;,tratioo N,mbe,, "appHcable)I | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | • Claims for exemption from the requirement th3t the annual reports be covered by the reports of an independent public accountant must be supported by a state men~ of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.l?a-S(e)(l)(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 0MB control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Arnold J. Jung | | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------|------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of Ho-ang Securities, LLC | as of | | December 31 | 2~ | ii true and correct. I further swear (or affirm) that neither the company nor any | | | | partner, officer, director, or equivalent person, 3S the case may be, has any proprietary interest in any account classified solely | | as that of a customer. | | | | Broward
Florida
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03/26/2025 | ROSEMARY BLANK
Notary Public • State of Florida
Commis;ion # HH320232
Expire! on January 17. 2027 | l)J
Signature: /4,.,, f.
Title: CEO | | | | | Notary Public Notarized remotely online using communication technology via Proof. #### **This filing\*\* contains (check all applicable boxes):** - **!!!!ii** (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - **!!!!ii** (c) Statement of income (loss) or, if there is o~her comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation **S-X).** - **!!!!ii** (d) Statement of cash flows. - **!!!!ii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordir ated to claims of creditors. - **!!!!ii** (g) Notes to consolidated financial statement;. - **!!!!ii** (h) Computation of net capital under 17 CFR :40.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under -\_7 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (kl Computation for determination of securitr-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.1Sc3-3. - D (m) Information relating to possession or cortrol requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or con7ol requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as app icable. - **!!!!ii** (o) Reconciliations, including appropriate exp anations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240 18a-1, 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 appl"cable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **!!!!ii** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **!!!!ii** (s) Exemption report in accordance with 17 c=R 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - **!!!!ii** (u) Independent public accountant's report b3sed on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR ~40.17a-12, as applicable. - D (v) Independent public accountant's report b 3sed on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as appliC3ble. - **!!!!ii** (w) Independent public accountant's report t ased on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequac es found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies e> ist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain oortions of this filing, see 17 CFR 240.17a-5{e){3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ ## **HORANG SECURITIES, LLC** FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024 WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {3}------------------------------------------------ # **HORANG SECURITIES, LLC** #### **Table of Contents** Report of Independent Registered Public Accounting Firm Financial Statements Statement of Financial Condition Statement of Operations Statement of Changes in Member's Equity Statement of Cash Flows Notes to Financial Statements Schedule I - Computation of Net Capital Schedule II - Computation for Determination of Reserve Requirements Schedule III - Information Relating to the Possession or Control Requirements Independent Registered Public Accounting Firm Report on Exemption Report Exemption Report {4}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 770·690-8995 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Horang Securities, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Horang Securities, LLC (the "Company") as of December 31, 2024, the related statements of operations, changes in member's 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 the Company as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in confonnity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting finn 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perfonn, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included perfonning procedures to assess the risks of material misstatement to the financial statements, whether due to error or fraud, and perfonning 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. #### Supplemental lnfonnation The infonnation contained in Schedules I, II and Ill has been subjected to audit procedures perfonned in conjunction with the audit of the Company's financial statements. The supplemental infonnation is the responsibility of the Company's management. Our audit procedures included detennining whether the information in Schedules I, II and Ill 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 accompanying schedules. In fonning our opinion on the accompanying schedules, we evaluated whether the supplemental infonnation, including its fonn and content, is presented {5}------------------------------------------------ in confonnity with 17 C.F.R. §240. l 7a-5. In our opinion, the aforementioned supplemental infonnation is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2016. April 1, 2025 Atlanta, Georgia ~~~,"'- Rubio CPA, PC {6}------------------------------------------------ ## **Horang Securities, LLC Statement of Financial Condition As of December 31, 2024** #### **Assets** | Cash | \$
39,456 | |---------------------------------------|--------------| | Accounts Receivable | 9,194 | | Due from Member | 35,132 | | Prepaid expenses | 1,900 | | Total assets | \$
85,682 | | Liabilities and member's equity | | | Liabilities | | | Commissions payable | \$
8,551 | | Total liabilities | 8,551 | | Member's equity | 77,131 | | Total liabilities and member's equity | \$
85,682 | {7}------------------------------------------------ ## **Horang Securities, LLC Statement of Operations For the Year Ended December 31, 2024** #### **Revenues** | Mutual fund fees
Placement and advisory fees
Fees from registered representatives | \$
34,016
3,503,000
29,000 | |-----------------------------------------------------------------------------------------|-------------------------------------| | Total Revenues | 3,566,016 | | Expenses | | | Commissions and compensation | 3,307,900 | | Professional fees | 49,525 | | Technology and Communications | 3,600 | | Occupancy | 7,200 | | Other | 24,158 | | Total Expenses | 3,392,383 | | | | | Net income | \$
173,633 | {8}------------------------------------------------ ## **Horang Securities, LLC For the Year Ended December 31, 2024 Statement of Changes in Member's Equity** | Balance at | | |---------------------------------|---------------| | December 31, 2023 | \$
110,998 | | Distributions | (207,500) | | Net income | 173,633 | | Balance at
December 31, 2024 | \$
77,131 | {9}------------------------------------------------ ## **Horang Securities, LLC Statement of Cash Flows For the Year Ended December 31, 2024** | Cash flows from operating activities: | | |----------------------------------------------------------|---------------| | Net income | \$
173,633 | | Adjustments to reconcile net income to net cash provided | | | by operating activities: | | | Decrease in accounts receivable | 1,748,530 | | Increase in due from Member | (35,132) | | Increase in prepaid expenses | (814) | | Decrease in commissions payable | (1,651,449) | | Decrease in accounts payable | (1,500) | | Decrease in due to member | (1,370) | | Net cash provided by operating activities | 231,898 | | Cash flows from financing activites | | | Distributions | (207,500) | | Net cash used by financing activites | (207,500) | | Net increase in cash | 24,398 | | Cash at beginning of year | 15,058 | | Cash at end of year | \$
39,456 | {10}------------------------------------------------ #### **Note 1 – Organization and Summary of Significant Accounting Policies** #### **Organization and Nature of Operations** Horang Securities, LLC (the "Company") is a securities broker-dealer registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). As a Limited Liability Company, the Member's liability is limited to its investment. The Company was formed under the laws of the State of Delaware on June 1, 1971. Activities of the Company include merger and acquisition activities and a historic business of collecting trails from prior sales of mutual funds and of variable annuity contracts. The Company is a wholly owned subsidiary of Horang Capital, LLC (the "Member"). The Company principally works with companies that are involved in M&A transactions and are raising additional equity and debt capital. #### **Accounting Policies** The Company follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (the FASB), to ensure consistent reporting of financial condition, results of operations, and cash flows. #### **Cash** The Company maintains its bank account in a high credit quality financial institution. The balance at times may exceed federally insured limits. #### **Revenue from Contracts with Customers** Revenue from contracts with customers includes placement and advisory services as well as mutual fund fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. Mutual funds or pooled investment vehicles (collectively, "funds") have entered into agreements with the Company to distribute/sell its shares to investors. The Company may receive distribution fees paid by the funds upfront, over time, or as a combination thereof. The Company believes its performance obligation is the sale of securities to investors and as such this is fulfilled on the trade date. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activities are known, which are usually quarterly or monthly. {11}------------------------------------------------ #### **Note 1 – Organization and Summary of Significant Accounting Policies (continued)** #### **Revenue from Contracts with Customers (continued)** The Company provides placement and advisory services related to capital raising activities and mergers and acquisitions transactions. The agreements often contain nonrefundable retainer fees, and/or success fees, which may be fixed or represent a percentage of the value that the customer receives, if and when the transaction is completed ("success fees"). Revenue from placement and advisory agreements is generally recognized at the point in time that performance under the agreement is completed (the closing date of the transaction) or the contract is terminated. However, for certain contracts, revenue is recognized over time for agreements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. The Company has evaluated its nonrefundable retainer fees to ensure they relate to the transfer of goods or services, as a distinct performance obligation, in exchange for the retainer. If a promised good or service is not distinct, the Company combines that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. In some cases, this would result in the Company accounting for all the services promised in a contract as a single performance obligation and, if unfulfilled, amounts received from such agreements would be reflected as deferred revenues within the accompanying Statement of Financial Condition. The Company recognizes certain retainer revenue from contracts with customers at the point in time in which specified deliverables are transferred to the Company's customers. The amount of retainer fees recognized upon the fulfillment of the aforementioned performance obligations without the completion of a transaction, or formal termination of the engagement, was approximately \$81,000 which is included in Placement and Advisory Fees revenue in the accompanying Statement of Operations. Success fees are recognized upon the consummation of a transaction as this satisfies the only performance obligation identified by the Company. #### **Accounts Receivable** Accounts receivable are non-interest-bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each customer. The Company regularly reviews its accounts receivable for any uncollectible amounts. The review for uncollectible amounts is based on an analysis of the Company's collection experience, customer credit worthiness, and current economic trends. Based on management's review, no allowance for credit losses is considered to be necessary. {12}------------------------------------------------ #### **Note 1 – Organization and Summary of Significant Accounting Policies (continued)** #### **Income Taxes** The Company is a single member limited liability company and is considered a disregarded entity for federal income tax reporting purposes and as such, does not file a separate income tax return. The income or losses of the Company flow through to and are taxable to the Member. Therefore, no income taxes are reflected in the accompanying financial statements. Under the provisions of FASB Accounting Standards Codification 740-10 (ASC 740-10), Accounting for Uncertainty in Income Taxes, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary. #### **Use of Estimates** The 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 the reported amounts of assets, liabilities, revenues, and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements. #### **Subsequent Events** The Company evaluated subsequent events through the date the financial statements were issued. #### **Note 2 - Net Capital** The Company, as a registered broker dealer, is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital, equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness as well as a ratio of aggregate indebtedness to net capital, both as defined, that shall not exceed 15 to 1. At December 31, 2024, the Company had net capital of \$30,905 which was \$25,905 in excess of its required minimum net capital of \$5,000 and the ratio of aggregate indebtedness to net capital was 0.28 to 1.00. {13}------------------------------------------------ #### **Note 3 - Related Party Transactions** The Company has a services agreement in place with its Member for office space, personnel, and other administrative services provided to the Company. Under the terms of this agreement, the Company pays the Member its allocated share for the services provided. Expenses allocated to the Company under the agreement amounted to approximately \$18,000 for the year ended December 31, 2024. There is no balance due to the Member at December 31, 2024 arising from expenses allocated to the Company under this agreement. During 2024, the Company informally extended a loan to its Member that is non-interest bearing and payable on demand. The balance due from Member as of December 31, 2024 in the amount of \$35,132 arises from this loan. Financial position and results of operations might differ from the amounts in accompanying financial statements if these related party transactions did not exist. #### **Note 4 – Contingencies** The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2024. #### **Note 5 - Segment Reporting** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of placement and advisory services and a historic business of collecting trails from prior sales of mutual funds and of variable annuity contracts. The Company has identified its chief executive officer as the chief operating decision maker ("CODM"), who uses net income or loss to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. #### **Note 6 – Concentrations** Approximately 92% of advisory fees revenue earned in 2024 were from three customers and approximately 92% of mutual fund fees were earned from one fund company. Approximately 87% of accounts receivable at December 31, 2024 is due from one fund company. {14}------------------------------------------------ ## 6833/(0(17\$/,1)250\$7,21 {15}------------------------------------------------ #### **Schedule I** #### **Horang Securities, LLC Pursuant to Rule 15c3-1 of the Securities and Exchange Commission December 31, 2024 Computation of Net Capital** | Less Non-allowable assets: | | |-----------------------------------------------------|--------------| | Accounts receivable | 9,194 | | Due from Member | 35,132 | | Prepaid expenses | 1,900 | | Total non-allowable assets | 46,226 | | Net capital before haircuts | 30,905 | | Less haircuts | - | | Net capital | 30,905 | | Aggregate indebtedness | 8,551 | | Minimum net capital required (greater of \$5,000 or | | | 6 2/3% of aggregate indebtedness) | 5,000 | | Excess Net Capital
\$ | 25,905 | | Ratio of aggregate indebtedness to net capital | 0.28 to 1.00 | #### **Reconciliation with Company's Computation of Net Capital included in Part IIA of Form X-17A-5 as of December 31, 2024** There is no significant difference between net capital as computed above and net capital as reported on Part IIA of Form X-17A-5 as of December 31, 2024. {16}------------------------------------------------ #### **HORANG SECURITIES, LLC As of December 31, 2024** #### **SCHEDULE II** #### **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** The Company does not claim exemption from SEA Rule 15c3-3 in reliance upon Footnote 74 of the 2013 Release. The Company does not hold customer funds or securities. #### **SCHEDULE III** #### **INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** The Company does not claim exemption from SEA Rule 15c3-3 in reliance upon Footnote 74 of the 2013 Release. The Company does not hold customer funds or securities. {17}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 770-690-8995 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Horang Securities, LLC We have reviewed management's statements included in the accompanying Broker Dealers Annual Exemption Report in which ( 1) Horang Securities, LLC did not claim an exemption from Rule l 5c3-3 in reliance upon Footnote 74 of the 2013 Release, (2) Horang Securities, LLC stated that it conducted business activities involving placement and advisory services to customers consisting of capital raising activity throughout the year ended December 31, 2024, without exception, and (3) Horang Securities, LLC stated that Harang Securities, LLC met the identified conditions for such reliance throughout the most recent fiscal year without exception. Horang Securities, LLC's 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 Horang 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 managemenfs statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in Footnote 74 of the 2013 Release. April I, 2025 Atlanta, GA ![](_page_17_Picture_9.jpeg) {18}------------------------------------------------ # Horang Securities, LLC #### HORANG SECURITIES, LLC'S EXEMPTION REPORT We, as members of management of Horang Securities, LLC (the "Company"), are responsible for complying with Rule 17a-5, "Reports to be made by certain brokers and dealers". We have performed an evaluation of the Company's compliance with the requirements of Rule 17a-5 and the exemption provisions in Rule 15c3-3(k) (the "exemption provisions") and of the 2013 Release adopting amendments to Rule 17a-5, including Footnote 74 of the 2013 Release. We have determined that the Company does not meet any of the exemption conditions of paragraph (k) of Rule 15c3-3 (i.e., paragraph (k)(1), (k)(2)(i) or (k)(2)(ii)) but also (1) does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Exchange Act Rule 15c2-4 ("Rule 15c2-4"); (2) does not carry accounts of or for customers; and (3) does not carry PAB accounts (as defined in Rule 15c3-3) and therefore is covered by Footnote 74 of the 2013 Release. Accordingly, based on our evaluation we make the following statements to the best knowledge and belief of the Company: 1. We reviewed the provisions of Rule §15c3-3 and related guidance stated in the SEC Staff's FAQ and confirmed that the Company relied on Footnote 74 of the 2013 Release. 2. The Company conducted business activities involving placement and advisory services to customers consisting of capital raising activity throughout the year ended December 31, 202, without exception. 3. The Company met the identified conditions for such reliance throughout the period January 1, 202, to December 31, 202, without exception. Arnold J. Jung, CEO March th, 202 \_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.