# OMEGA SECURITIES, INC. X-17A-5 (2021-03-30) — Broker-dealer annual report - Company: OMEGA SECURITIES, INC. - Form: X-17A-5 - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0000108404-21-000002 - CIK: 108404 - File #: 8-20225 - Material weakness: No - Auditor: MESCH, PLLC - Auditor location: FORT WORTH, TX - Contact: TAMERA BRYANT - Phone: 817-335-5739 - Signed by: TAMERA BRYANT (CHIEF COMPLIANCE OFFICERR) Original filing: https://www.sec.gov/Archives/edgar/data/108404/000010840421000002/OSIAUDIT1.pdf --- {0}------------------------------------------------ **UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ## **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 | SEC FILE NUMBER | |-----------------| | 8-20225 | **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thbreunder** | REPORT FOR THE PERIOD BEGINNING 01/01/2020 | | AND ENDING 12/31/2020 | | | | |---------------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------|---------------------------------|--|--| | | MM/0D/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAM! OF BROKER-DEALER: Omega Securities, Inc. | | OFFICIAL USE ONLY | | | | ADDRI ESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM 1.0. NO. | | | | 300 Throckmorton Street, Suite 1450 | | | | | | | | (No. and Street) | | | | | | Fort Worth | TX | 76102 | | | | | (City) | State) | | (Zip Code) | | | | Tamer~ Bryant | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO nns REPORT | [ | 817-335-5739 | | | | | | | (Area Code - Te lephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | I
I
Mesch, PLLC | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | 600 Texas Street | Fort Worth | TX | 76102 | | | | (Address) | (City) | I
(State) | (Zip Code) | | | | CHEGK ONE: | | | | | | | lcertified Public Accountant
Public Accountant | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exef11ption. See Section 240.17a-5(e)(2)* > **Potential 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 numrer.** SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Tamera Bryant | , swear ( or affirm) that, to the best of | |------------------------|----------------------------------------------------------------------------------------------------------------------------| | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | Omega Securities, Inc. | , as | | of MARCH 29 | , 20 21
are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | classified solely as that of a customer, except as follows: *,\$-'~~lt:t:t~* **KATHRIN** MILLER JONES *Sil.A,;·f1:.* **Notary** Public, State of Texas **\\\.~ ... iJ Comm. Expires 12-29-2024** ~~>,:• .. ~.,..~ **"'1,,fil,,,,•" Notary ID 13086874-7** *kauiAvrClOi.ilu..~* Notary Public This report\*\* contains (check all applicab le boxes): - **0** (a) Facing Page. - **[2]** (b) Statement of Financial Condition. - D (c) Statement oflncome (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement of Comprehensive Income (as defined in §210.1-02 ofRegu lation S-X). - [7] ✓ (d) Statement of Changes in Financial Condition. - 0 ( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - D (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - 0 (g) Computation of Net Capital. - 0 (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3 . - 0 (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - D (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. - 0 (I) An Oath or Affirmation . - D (m) A copy of the SIPC Supplemental Report. - D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5 (e)(3).* {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # **OMEGA SECURITIES, INC.** ## **FINANCIAL STATEMENTS, SUPPLEMENTAL INFORMATION,** & **INDEPENDENT AUDITOR'S REPORT** FOR THE YEAR ENDED DECEMBER 31, 2020 600 TEXAS STREET FORT WORTH, TX 76102 **O;** 8177101500 **F:** 817.ll0.1501 {3}------------------------------------------------ #### **TABLE OF CONTENTS** | Report on Independent Registered Public Accounting Firm | 3 | |-------------------------------------------------------------------------------------------------------------------------------------------------|----| | Financial Statements | | | Statement of Financial Condition | 5 | | Statement of Operations | 7 | | Statement of Changes in Stockholders' Equity | 8 | | Statement of Cash Flows | 9 | | Notes to Financial Statements | | | Supplementary Information | | | Computation of Net Capital and Aggregate Indebtedness Pursuant
Schedule I -
to Rule l 5c3-l of the Securities and Exchange Commission | 17 | | Determination of Reserve Requirements Under Rule 15c3-3 of
Schedule II -
The Securities and Exchange Commission | 19 | | Schedule III -
Information Relating to the Possession or Control Requirements
Under Rule 15c3-3 of The Securities and Exchange Commission | 19 | | Additional Reports and Related Information | | | Report on Independent Registered Public Accounting Firm | 20 | | Exemption Report | 21 | | Report on Independent Registered Public Accounting Firm on
Applying Agreed Upon Procedures | 22 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholders of Omega Securities, Inc. #### **Opinion on the Financial Statements** I We have audited the accompanying statement of financial condition of (i)mega Securities, Inc. as of December 31, 2020, the related statements of operations, changes in stockholders' 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 financ!al positi~n of Omega Securities, Inc. as of D~cember 31: 202p, and the. result~ o\_f its operations and its cash flows for the year then ended m conformity with accounting prmc1ples generally accepted **in** the United States of America. #### **Basis of Opinion** These financial statements are the responsibility of Omega Securities, ~nc.'s management. Our responsibility is to express an opinion on Omega Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Publf Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Omega Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. I 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 assu;ance 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 misstJtement 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 ks evaluating the overall presentation of the financial statements. We believe that our audit pror des a reasonable basis for our opinion. #### **Supplemental Information** {5}------------------------------------------------ The supplemental information contained in Schedule I - Computation of Net Capital and Aggregate Indebtedness Pursuant to Rule l 5c3-1 of the Securities and Exchange Commission, Schedule 11 - Determination of Reserve Requirements Under Rule 15c3-3 of The Securities and Exchange Commission, Schedule III - Information Relating to the Possession or Control Requirements Under Rule 15c3-3 of The Securities and Exchange Commission has been subjected to audit procedures performed in conjunction with the audit of Omega Securities, Inc.'s financial statements. The supplemental information is the responsibility of Omega Securities, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.l 7a-5. In our opinion, the supplemental information contained in Schedule I - Computation of Net Capital and Aggregate Indebtedness Pursuant to Rule l 5c3-1 of the Securities and Exchange Commission, Schedule II - Determination of Reserve Requirements Under Rule 15c3-3 of The Securities and Exchange Commission, Schedule III - Information Relating to the Possession or Control Requirements Under Rule 15c3-3 of The Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Omega Securities, Inc.'s auditor since 2016. Fort Worth, Texas March 25, 2021 {6}------------------------------------------------ #### **Omega Securities, Inc. Statement of Financial Condition December 31, 2020** #### **ASSETS** | Current Assets | | | |-------------------------------------|--------------|---------| | Cash and cash equivalents | \$
84,335 | | | Receivables, net | 53,563 | | | Receivables -
other | 355 | | | Investments | 45,781 | | | Total current assets | \$ | 184,034 | | Property and Equipment -
at cost | | | | Equipment | 45,277 | | | Furniture & fixtures | 11 ,119 | | | Leasehold improvements | 25,676 | | | | 82,072 | | | Less accumulated depreciation | (81,748) | | | Total property and equipment | | 324 | | Other Assets | | | | Deferred tax assets | 651 | | | Total other assets | | 651 | | Total Assets | \$ | 185,009 | | | | | {7}------------------------------------------------ #### **LIABILITIES AND STOCKHOLDERS' EQUITY** | Current Liabilities | | | |-------------------------------------------------------|-----------|---------------| | Accounts payable | \$
968 | | | Sales commission payable | 69,243 | | | Accrued expenses | 1,016 | | | Total current liabilities | | \$
71,227 | | Total long-term liabilities | | 0 | | Total Liabilities | | 71,227 | | Stockholders' Equity | | | | Common stock, 10,000,000 shares authorized, \$.IO par | | | | value, 49,998 shared issued and outstanding | 5,000 | | | Additional paid-in capital | 30,282 | | | Retained earnings | 78,500 | | | Total Stockholders' Equity | | 113,782 | | | | | | Total Liabilities and Stockholders' Equity | | \$
185,009 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ #### **Omega Securities, Inc. Statement of Operations For The Year Ended December 31, 2020** I | Revenue | | | |------------------------------------|----------------|---------------| | Commission revenue | \$
433,1°94 | | | Gain on investments | 7,569 | | | Other revenue | ~51 | | | Total Revenue | | \$
441,014 | | Expenses | | | | Employee compensation and benefits | 296,o46 | | | Occupancy and equipment | 63,~33 | | | General operating expenses | 72,652 | | | Technology and communication | 10,p1 | | | Miscellaneous | 1,588 | | | Depreciation | ~68 | | | Total Expenses | | 444,664 | | (Loss) Before Income Taxes | | (3,650) | | Provision income taxes | | 317 | | Net (Loss) | | \$
(3,967) | I The accompanying notes are an integral part of these financial statements. I I {9}------------------------------------------------ #### **Omega Securities, Inc. Statement of Changes in Stockholders' Equity For The Year Ended December 31, 2020** | Common Stock | | | |-----------------------------|--------------|---------------| | Beginning and end of year | | \$
5,000 | | | | | | Additional Paid-in Capital | | | | Beginning and end of year | | 30,282 | | | | | | Retained Earnings | | | | Beginning of year | \$
82,467 | | | Net (loss) for the year | | | | , 2020
ended December 31 | ,967)
(3 | | | End of Year | | 78,500 | | Total Stockholders' Equity | | \$
113,782 | The accompanying notes are an integral part of these financial statements. {10}------------------------------------------------ #### **Omega Securities, Inc. Statement of Cash Flows For The Year Ended December 31, 2020** [ | Cash Flows from Operating Activities | | | |----------------------------------------------------|--------------|--------------| | Net (loss) | \$ | (3,967) | | Adjustments to reconcile net income to net | | | | cash provided by operating activities: | | | | Depreciation and amortization | \$
168 | | | Realized (gain) on marketable securities | (7,557) | | | Deferred tax expense | 317 | | | (Increase) Decrease in: | I | | | Receivables | 12,778 | | | Prepaid expenses | 4,554 | | | Increase (Decrease) in: | | | | Accounts payable | chi
,133) | | | Accrued expenses | I 1,015 | | | Total adjustments | I | (19,858) | | Net cash (used) by operating activities | | (23,825) | | Net Decrease in Cash | | (23,825) | | Cash and cash equivalents at beginning of year | | 108,160 | | Cash and cash equivalents at end of year | | \$
84,335 | | Supplemental Disclosures of Cash Flow Information: | | | | Cash Paid During the Year for | | | | Interest | | \$
0 | | Taxes | | 0 | | Total | | \$
0 | The accompanying notes are an integral part of these financial statenlents. {11}------------------------------------------------ #### **Note 1: Description of Business** Incorporated on November 11, 1974, Omega Securities, Inc. (the "Company") is a broker/dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company operates under the provisions of Paragraph (k)(l) of Rule 15c3-3 of the SEC and, accordingly, is exempt from the remaining provisions of that Rule. The Company must maintain a minimum net capital requirement of \$5,000. #### **Note 2: Summary of Significant Accounting Policies** #### Basis of accounting The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United Statement of America (GAAP) which is required by the SEC and FINRA. #### Use of estimates The presentation of the financial statements in conformity with 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Cash and cash equivalents Cash and cash equivalents include investments with maturities at the time of acquisition of three months or less. The Company has not designated any other assets as cash equivalents in determining the net change in cash in the statements of cash flows. #### Receivables, net Accounts receivable are stated at the amounts management expects to collect. The carrying amounts of accounts receivable are reduced by a valuation allowance, if needed, that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all receivable balances and, based on an assessment of current creditworthiness, estimates the portion of, if any, of the balance that will not be collected. Management provides for probable uncollectable amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to the respective receivable account. In management's opinion, any potential allowance for uncollectable accounts would not be material to the Financial Statements as of December 31, 2020. {12}------------------------------------------------ #### **Note 2: Summary of Significant Accounting Policies (Continued)** #### Investments Investments are recorded at fair value. The increase or decrease in fair value is credited or charged to operations. Realized and unrealized gain on investments of \$7,569 are rd1ected in the accompanying Statement of Operations. I #### Credit risk I The Company maintains deposits at a financial institution which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporatifn ("FDIC"). The Company has not experienced any losses related to amounts in excess of FDIC limits. ### Property and equipment I Property and equipment are stated at cost and depreciated using the st1iaight-line method over their estimated useful lives. The range of estimated lives is as follows: I | Equipment | 3-5
[ | |------------------------|------------------------------------| | Furniture & fixtures | 5-7 | | Leasehold improvements | Lesser ofuseful life or lease ter1 | Expenditures for major additions or improvements, which extend th9 useful lives of assets, are capitalized. Minor replacements, maintenance and repairs, which do not improve or extend the lives of such assets, are expensed as incurred. I In accordance with Financial Accounting Standards Board ("FASB") ,4.sc 360-10-45 (Impairment and disposal of long-lived assets), the Company evaluates the propriety 0f the carrying amount of its long-lived assets at each financial statement date. In the event that fact~ and circumstances indicate the cost of long-lived assets may be impaired, an evaluation of recoverability would be performed. If an evaluation of impairment is required, the estimated future undiscounte~ cash flows associated with the asset would be compared to the asset's carrying amount to determi1e if a write-down to market value or discounted cash flow value is required. For the year ended December 31, 2020 , the Company did not record any such write-downs. #### Income taxes [ The Company records its federal and state tax liabilities in accordan;ce with F ASB Accounting Standards Codification Topic 740-10, "Accounting for Income Taxes['· The Company uses the liability method of accounting for income taxes that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that hJve been recognized in the Company's financial statements. In estimating future tax consequences, a!ll expected future events are considered other than enactment of changes in the tax law or rates. The c ! mpany provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are not likely to be realized. I {13}------------------------------------------------ #### **Note 2: Summary of Significant Accounting Policies (Continued)** #### Income taxes *(* continued) The Company's deferred tax asset represents the tax effects of taxable temporary differences in book and tax reporting. The taxable temporary differences consist of depreciation methods and lives. #### Risks and uncertainties Securities owned and securities sold, not yet purchased are recorded at fair value and have exposure to market risk, including the volatility of securities markets. Significant changes in the prices of these securities could have a significant impact on the Company's results of operations for any particular year. #### Recent accounting pronouncements In August 2018, the FASB issued ASU 20 18-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes or modifies certain current disclosures and adds additional disclosures. The changes are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. Certain disclosures in ASU 2018-13 will need to be applied on a retrospective basis and others on a prospective basis. Early adoption is permitted. The Company adopted the provisions of this guidance on January 1, 2020. The adoption had no material effect on the disclosures of the Company's financial instruments valued at Level 1. #### **Note 3: Revenue Recognition** #### Significant Judgments Revenue from contracts with customers consists of distribution fees. The recognition and measurement ofrevenue 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; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### Brokerage Commissions The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. {14}------------------------------------------------ #### **Note 3: Revenue Recognition (Continued)** ### Distribution Fees (12b-1 fees) I The Company enters into arrangements with managed accounts or other pooled vehicles (funds) to distribute shares to investors. The Company believes that its performJnce obligation is the sale of securities to investors and as such this is fulfilled on the trade date. Any ~xed 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 timd 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 constrkint until the market value of the fund and the investor activities are known, which are usually monthfy or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. I #### **Note 4: Fair Value Measurement** The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted I quoted prices in active markets for identical assets or liabilities (Level I) and the lowest priority to unobservable input (Level 3). The three levels of the fair value hierarchy under F ASB ASC 820 are described as follows. Level 1 Unadjusted quoted prices in active markets that are accessib}e at the measurement date for identical, unrestricted assets or liabilities. Level 2 Measured based upon inputs that are observable, either dire9tly or indirectly, for the asset or liability other than quoted market prices included in Level 1. I Level 3 Measured based on unobservable inputs for the asset or liability for which there is little, if any, market activity for the asset or liability at the measurement date. \ As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's aspessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair 1alue hierarchy levels. The following is a description of the valuation methodology used for the 4ssets measured at fair value as of December 31, 2020: I Mutual fund - Valued at the closing price reported on the active market on the last trade of each day. {15}------------------------------------------------ #### **Note 4: Fair Value Measurement {Continued)** The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The Company believes its valuation methods are appropriate and consistent with other market participants; even so, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table summarizes the valuation of the Company's investments by ASC 820-10 pricing levels at December 31 , 2020: | | Level 1 | Level 2 | Level 3 | Total | |------------------------------------|--------------|-------------------|-------------------|----------------------------| | Mutual funds | \$
45,781 | \$
------
0 | \$
------
0 | \$
------'---
45,781 | | Total investments
at fair value | | | | \$
45,781 | #### **Note 5: Property and Equipment, Net** Depreciation expense was \$168 for the year ended December 31, 2020 and 1s included m the accompanying Statement of Operations. #### **Note 6: Related Party Transactions** The Company pays rent on month-by-month basis to related entity. For the year ended December 31, 2020, total rent expense was \$60,000 and is included in Occupancy and Equipment in the accompanying Statement of Operations. #### **Note** 7: **Net Capital Requirements** The Company is subject to the net capital requirements of rule l 5c3-l of the SEC, which requires a broker dealer to have at all times sufficient liquid assets to cover indebtedness. In accordance with the rule, the Company is required to maintain minimum net capital of the \$5,000 or 1/ 15 of aggregate indebtedness. As of December 31 , 2020, the Company had net capital, as defined, of\$105,916 which exceeded the required minimum net capital by \$100,916. Aggregate indebtedness at December 31 , 2020 totaled \$71 ,227 and the ratio of aggregate indebtedness to net capital was .6725. {16}------------------------------------------------ #### **Note 8: Income Taxes** The provisions for income taxes are as follows for the year ended December 31, 2020: | Total provision for income taxes | \$
317 | |----------------------------------|-----------| | Current tax expense | 0 | | State | | | Total federal tax expense | 317 | | Deferred tax expense | 317 | | Current tax expense | \$
0 | | Federal | | The components of deferred tax assets and liabilities for December 31, 2620 were as follows: | Net deferred tax assets | \$
651 | |-------------------------------|-----------| | Valuation allowance | (64,334) | | Gross deferred tax assets | 64,985 | | Federal NOL carryfoward | 64,334 | | Depreciation and amortization | \$
651 | | Deferred tax assets: | | Realization of deferred tax assets is dependent on future earnings, if an~, the timing and amounts of which are uncertain. For the year ended December 31, 2020, the Comp, ny has recorded a valuation allowance equal the deferred tax benefits from carryforwards of net operating losses. The net change in the valuation allowance amounted to a decrease of approximately \$200. I The Company has \$306,353 in net operating losses for federal purpose~ that are available to offset taxable income in future years. For net operating losses, originating in tHe year 2017 or before, there is a twenty-year expiration date. For net operating losses, originating in tf e year 2018 and after, there is no expiration date. The amounts and expiration dates are as follows: I | None | \$
1,021 | |-------------------|---------------| | December 31, 2038 | \$
162,431 | | December 31, 2036 | \$
142,901 | {17}------------------------------------------------ #### **Note 8: Income Taxes (Continued)** The Company accounts for uncertainty in income taxes in accordance with FASB ASC 740-10, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company files income tax returns in the U.S. federal jurisdiction and state of Texas. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2017 or subject to Texas franchise tax examinations for years before 2015. The Company did not have unrecognized tax benefits as of December 31, 2020 and does not expect this to change significantly over the next 12 months. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense in accordance with ASC 7 40-10-25. As of December 31, 2020, the Company has not accrued interest or penalties related to uncertain tax positions. #### **Note 9: Subordinated Liabilities** There were no liabilities which were subordinated to the claims of general creditors at December 31, 2020. #### **Note 10: Commitments and Contingencies** The Company had no commitments, no contingent liabilities and had not been named as a defendant in any lawsuit at December 31, 2020 or during the year then ended. #### **Note 11: Subsequent Events** Management evaluated subsequent events through the date the financial statements were available for issue, March 25, 2021. There were no material subsequent events that need to be disclosed to keep the financial statements from being misleading. {18}------------------------------------------------ #### **Omega Securities, Inc.** #### **Schedule** I - **Computation of Net Capital and Aggregate Indebtedness Pursuant to Rule 15c3-1 of the Securities and Exchange Commission As of December 31, 2020** I #### **Computation of Net Capital:** | Total stockholders' equity
Add: subordinated liabilities | \$
113,78~1 | | |---------------------------------------------------------------------------------------------------------|---------------------------------|---------------| | Total capital and allowable subordinated liabilities | | \$
113,782 | | Deductions and/or charges:
Non-allowable assets | | (1,330) | | Net capital before haircuts on securities positions | | 112,452 | | Haircut on securities | | (6,536) | | Net Capital | | \$
105,916 | | Computation of Basic Net Capital Requirement | | | | Minimum net capital required - | 6.67% of aggregate indebtedness | \$
4,751 | | Minimum dollar net capital requirement of reporting
broker or dealer | | \$
5,000 | | Excess net capital | | \$
100,916 | | Net capital less greater of 10% of aggregate indebtedness
or 120% of minimum net capital requirement | | \$
98,793 | See independent auditor's report on supplemental schedule. {19}------------------------------------------------ ### **Omega Securities, Inc. Schedule** I - **Computation of Net Capital and Aggregate Indebtedness Pursuant to Rule 15c3-1 of the Securities and Exchange Commission (Continued) As of December 31, 2020** #### **Computation of Aggregate Indebtedness** | Total liabilities | \$
71,227 | |------------------------------------------------------------------|---------------| | Less: exclusions | 0 | | Aggregated Indebtedness | \$
71,227 | | Percentage of aggregate indebtedness to net capital | 67.25% | | | | | Reconciliation with Company's Allowable Net Capital | | | Net allowable capital, as reported in Company's | | | unaudited Focus Report | \$
110,666 | | Audit adjustments | (4,750) | | Adjusted net allowable capital, per audited financial statements | \$
105,916 | See independent auditor's report on supplemental schedule. {20}------------------------------------------------ **Omega Securities, Inc. Schedules** II and III **December 31, 2020** #### **Schedule** II - **Determination of Reserve Requirements Under Rule 15c3-3 Of The Securities and Exchange c bmmission** The Company is exempt from the provisions of Rule 15c3-3 under the J ecurities Exchange Act of 1934 pursuant to paragraph (k)(l) of the Rule. #### **Schedule** III - **Information Relating to The Possession or Con1 trol Requirements Under Rule 15c3-3 Of The Securities and Exchange Cpmmission** The Company is exempt from the provisions of Rule l 5c3-3 under the decurities Exchange Act of 1934 pursuant to paragraph (k)(l) of the Rule. {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholders of Omega Securities, Inc. We have reviewed management's statements, included in the accompanying Statement of Exemption from SEC Rule 15c3-3, in which (1) Omega Securities, Inc. identified the following provisions of 17 C.F.R. § **l** 5c3-3(k) under which Omega Securities, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: (k)(l) (exemption provisions) and (2) Omega Securities, Inc. stated that Omega Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Omega Securities, Inc.'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 Omega Securities, Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(l) of Rule l 5c3-3 under the Securities Exchange Act of 1934. Fort Worth, Texas March 25, 2021 600 TEXAS STREET FORT WORTH, TX 76102 {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) #### I **Statement of Exemption from SEC Rule 15c3-3** Omega Securities, Inc. (the "Company") is a registered broker1 ealer subject to Rule 17a-5 of the Securities and Exchange Commission (the "SEC") Act of 1934. To the best of its knowledge and belief, the Company states the following: I - 1. The Company claimed an exemption from 17 C.F.f . §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k)(l). - 2. **The Company met the identified exemption provil ions in 17 C.F .R.** §240.15c3-3 (k)(l) throughout the most recent fiscal year without **exception.** i Omega Securities, Inc. I, Tamera Bryant, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. By: Tammy Bryant Chief Compliance Officer March 25, 2021 300 Thrcckmorto~ Streei:., Suite 145( • Fcrt Worth, TX 7~ i02 • fr/ 7-33~-5!39 • ~00-999-~J~g *~:ax~·* 11-336-.:/326 {23}------------------------------------------------ ![](_page_23_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES** Board of Directors and Stockholders of Omega Securities, Inc. In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Omega Securities, Inc. and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of Omega Securities, Inc. for the year ended December 31 , 2020, solely to assist you and SIPC in evaluating Omega Securities, Inc.'s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7). Omega Securities, lnc.'s management is responsible for Omega Securities, Inc.'s compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States). The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed, and our findings are as follows: - 1) Compared the listed assessment payments in · Form SIPC-7 with respective cash disbursement records, noting no differences; - 2) Compared the Total Revenue amount reported on the Annual Audited Report Form X-17 A-5 Part III for the year ended December 31, 2020 with the Total Revenue amount reported in Form SIPC-7 or the year ended December 31 , 2020, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. {24}------------------------------------------------ We were not engaged to, and did not conduct an examination, the obj1 tive of which would be the expression of an opinion on compliance with the applicable instructions of the Form SIPC-7. Accordingly, we do not express such an opinion. Had we performed adclitional procedures, other matters might have come to our attention that would have been reported 1 to you. This report is intended solely for the information and use of the specifiem parties listed above and is not intended to be and should not be used by anyone other than these ~pecified parties. Fort Worth, Texas March 25, 2021 {25}------------------------------------------------ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.