# AEGIS INVESTMENTS, INC. X-17A-5 (2023-02-28) — Broker-dealer annual report - Company: AEGIS INVESTMENTS, INC. - Form: X-17A-5 - Filed: 2023-02-28 - Period: 2022-12-31 - Accession: 0000759220-23-000001 - CIK: 759220 - File #: 8-33137 - Type: Broker-dealer - Material weakness: No - Auditor: Ellingson and Ellingson - Auditor location: Edina, MN - Contact: Linda Ingle - Phone: 612-336-4432 - Email: linda@aegisinvestments.net - Website: aegisinvestments.net - Signed by: Linda Ingle (President) Original filing: https://www.sec.gov/Archives/edgar/data/759220/000075922023000001/aaegisaudit2022.pdf --- {0}------------------------------------------------ ## **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | | SEC FILE NUMBER | | |--|-----------------|--| | | 8-33137 | | ## **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 | ___
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A_E_G_I_S_I_N_V_E_S_T_M_E_N_T_S_, _IN_C_. | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
lxJ Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 4915 W 35TH STREET, SUITE 100 | | | | | | | | (No. and Street} | | | | | | ST. LOUIS PARK | MN | | 55416 | | | | (City} | | | (Zip Code} | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | LINDA INGLE | 612-336-4432 | LINDA@AEGISINVESTMENTS.NET | | | | | (Name} | (Area Code - Telephone Number} | (Email Address} | | | | | | 8. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
ELLINGSON & ELLINGSON, LTD. | (Name - if individual, state last, first, and middle name} | | | | | | 5101 VERNON AVES #501 | EDINA | MN | 55436 | | | | (Address} | (City} | (State} | (Zip Code} | | | | 11/17/2009 | | | 3923 | | | | rte of Registcatioo with PCAOB)lif applicable) | | {PCAOB Reg,stcatioo Nombec, if applicable) I | | | | | | 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.l 7a-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, LINDA INGLE swear (or affirm) that, to the best of my knowledge and belief, the financial rep9rtyertaining to the firm of AEGIS INVESTMENTS, INC. • as of DECEMBt::R 31 2.Q22\_, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be. has any proprietary interest in any account classified solely as that of a customer. ![](_page_1_Picture_6.jpeg) PRESIDENT Notary Public ## **This filing\*\* contains (check all applicable boxes):** - **r£** (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - ~ · (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - r5/ (d) Statement of cash flows. - rif (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - **r;/** (g) Notes to consolidated financial statements. - ~ (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - ~ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit **A** to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - ~ (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ~ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, 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. - **rif** (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-S or 17 CFR 240.18a-7, as applicable. - s6 (s) Exemption report in accordance with 17 CFR 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. - ~ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ~ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - ~ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - - ^D(z) Other: ----------------------------------------- *\*\*To* request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5{e}{3) or 17 CFR 240.18a-7(d}{2), as applicable. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) ERn<::J . ( R JCK,) El.LfNGSOJ{, CPA PATTt ELL1N0soN SoLH'EiM, C~A JANE ELLlNGSO.N EH RE'.5.M ANN;CPA ## **Report of Independent Registered Public Accounting Firm** We have reviewed management's statements, included in the accompanying SEC Rule 17a-5 Exemption Report, in which (1) Aegis Investments, Inc. ("Aegis") identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Aegis claimed an exemption from 17 C.F .R. § 240.15c3-3: (k)(2)(ii) (the "exemption provisions") and (2) Aegis stated that Aegis met the identified exemption provisions throughout the period of January 1, 2022 to December 31, 2022 without exception. Aegis' 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 Aegis' 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)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. ~ *'1-Ci.t;,,,-,~* J!d. Ellingson & Ellingson, Ltd. Edina, Minnesota February 27, 2023 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) Securities and Exchange Commission 100 F Street NE Washington, D.C. 20549 FINRA 9509 Key West Avenue Rockville, MD 20850 Re: Exemption Report - SEC Rule 17a-5(d)(4) To Whom It May Concern: The below information is designed to meet the Exemption Report criteria pursuant to SEC Rule 17a-5(d)(4): - Aegis Investments, Inc. is a broker/dealer registered with the SEC and FINRA. - Aegis Investments, Inc. claimed an exemption under paragraph (k)(2)(ii) of Rule 15c3-3 for the fiscal year ended December 31, 2022. - Aegis Investments, Inc. is exempt from the provisions of Rule 15c3-3 because it meets conditions set forth in paragraph (k)(2)(ii) of the rule, of which, the identity of the specific conditions are as follows : \*The provisions of the Customer Protection Rule shall not be applicable to a broker or dealer who, as an introducing broker or dealer, clears all transactions with and for customers on a fully disclosed basis with a clearing broker or dealer, and who promptly transmits all customer funds and securities to the clearing broker or dealer which carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto pursuant to the requirements of Rule 17a-3 and Rule 17a-4, as are customarily made and kept by a broker or dealer. - Aegis Investments, Inc. has met the identified exemption provisions in paragraph (k)(2)(ii) of Rule 15c3-3 throughout the period of January 1, 2022 through December 31, 2022, without exception. - Aegis Investments, Inc. has not recorded any exceptions to the exemption provision in paragraph (k)(2)(ii) of Rule 15c3-3 for the period of January 1, 2022 through December 31, 2022. The above statements are true and correct to the best of my and my firm's knowledge. Very truly yours, Aegis Investments, Inc. /"' */* -· *;!./·* ,,/ 4915 West 35ti1 Street, Suite */0(1* • St. Louis Park, /v\N 55416 • Phone 61 2-336-4432 FAX 6 l 2-337-5336 {4}------------------------------------------------ ## **AEGIS INVESTMENTS, INC.** FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2022 {5}------------------------------------------------ | | Page | |------------------------------------------------------------------------------------------------------------|------| | REPORT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 1 | | | FINANCIAL STATEMENTS
Balance Sheet 3 | | | Statement of Income 4 | | | Statement of Changes in Stockholder's Equity 5 | | | Statement of Cash Flows 6 | | | Notes to Financial Statements 7-9 | | | SUPPLEMENTARY INFORMATION
Schedule I, Computation of Net Capital Under Rule 15C3-1 10 | | | Schedule 11, Computation for Determination of
Reserve Requirements Under Rule 15C3-3 (Exemption) 11 | | | Schedule Ill, Information for Possession or Control Requirements
Under Rule 15C3-3 (Exemption) 12 | | ## CONTENTS {6}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. STATEMENT OF FINANCIAL CONDITION As of December 31, 2022** | ASSETS | | | | |----------------------------------------------------------|-----------|--|--| | CURRENT ASSETS | | | | | Cash and cash equivalents | \$127,340 | | | | Accounts receivable | 4,702 | | | | | 132,042 | | | | | | | | | PROPERTY AND EQUIPMENT | | | | | Office equipment | 13,583 | | | | Less: accumulated depreciation | (13,583) | | | | | | | | | | | | | | OTHER ASSETS | | | | | Rent deposit | 1,100 | | | | | | | | | Total Assets | \$133,142 | | | | | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | | | | | | | CURRENT LIABILITIES | | | | | Accrued commissions and other expenses | \$ 22,780 | | | | Income taxes payable | 292 | | | | | 23,072 | | | | COMMITMENTS AND CONTINGENCIES | | | | | | | | | | STOCKHOLDER'S EQUITY | | | | | Common stock, no par value, | 12,000 | | | | 100,000 shares authorized, | | | | | 2,200 shares issued and outstanding
Retained earnings | | | | | | 98,070 | | | | | 110,070 | | | | Total Liabilities and Stockholder's Equity | \$133,142 | | | | | | | | {7}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. STATEMENT OF INCOME For the Year Ended December 31, 2022** | REVENUES | \$214,455 | |--------------------------------------|-------------| | EXPENSES | | | Commissions | 109,777 | | Rent | 13,900 | | Telephone | 3,845 | | Professional fees | 3,450 | | Licenses and fees | 10,853 | | Office expense | 791 | | Outside services | 38,984 | | Postage and deli\ery | 254 | | Clearing Fees | 24,000 | | Miscellaneous | 264 | | Insurance | 1,716 | | Dues and subscriptions | 655 | | Total Expenses | 208,489 | | | | | Income From Operations | 5,966 | | OTHER INCOME | | | Interest income | | | Net Income Before | | | Provision For Income Taxes | 5,966 | | INCOME TAX EXPENSE | | | | | | Net Income | \$
5,966 | | Income per common share based on the | | | weighted average of 2,200 common | | | shares outstanding during the year | \$
2.71 | {8}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY For the Year Ended December 31, 2022** | | Common Stock | | Retained | | | | |------------------------------|--------------|----|----------|----------|--------|-----------| | | Shares | | Amount | Earnings | | Total | | Balance at January 1, 2022 | 2,200 | \$ | 12,000 | \$ | 92,104 | \$104,104 | | Net Income | | | | | 5,966 | 5,966 | | Balance at December 31, 2022 | 2,200 | \$ | 12,000 | \$ | 98,070 | \$110,070 | {9}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2022** | CASH FLOWS FROM OPERATING ACTIVITIES | | |------------------------------------------------------------|-------------| | Net Income | \$
5,966 | | Adjustments to reconcile net income to net cash provided | | | by operating acti'-1ties: | | | Changes in assets and liabilities: | | | Increase in: | | | Accounts receivable | 923 | | Increase in: | | | Accrued commissions and other expenses | (8,030) | | Net Cash Flows from Operating Acti'IAties | (1,141) | | | | | Net decrease in Cash | (1,141) | | Cash at Beginning of Year | 128,481 | | Cash at End of Year | \$127,340 | | Supplemental Disclosures
Cash Paid During the Year for: | | | Income Taxes | \$
1,658 | | Interest | \$ | {10}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2022** ## **1. Organization and Nature of Business** Aegis Investments, Inc. (the Company) is a non-carrying broker-dealer registered with the SEC and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Minnesota Corporation. ## **2. Summary of Significant Accounting Policies** This summary of significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles. ## Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. #### Cash Equivalents - The Company considers securities with maturities of three months or less, when purchased, to be cash equivalents. #### Accounts Receivable - Accounts receivable consists of amounts due from contracts with customers where the performance obligation was completed by the end of the fiscal year but funds were not received until after the fiscal year end. Based on management's assessment of history of collections, it has concluded that realization losses on balances outstanding will be immaterial. Therefore, there was no allowance for doubtful accounts recorded in the financial statements at December 31 , 2021. Accounts receivable balances consisted of the following: | 12/31/22 | 12/31/21 | |----------|----------| | \$4,702 | \$5,625 | #### Property and Equipment - Property and equipment are recorded at cost. Depreciation is computed using the straight-line method for both financial reporting and income tax accounting purposes over useful lives of five or seven years. #### Income Taxes - The provision for income tax in the financial statements relates to the items of income and expenses included in such statements. #### Concentrations of Credit Risk - The Company does not believe that it is exposed to any significant credit risk in connection with the extension of credit to its customers. Historically, the Company has had no bad debt write offs. #### Commissions - Commissions and related clearing expenses are recorded on a trade-date basis as securities transactions occur. {11}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2022** ## **2. Summary of Significant Accounting Policies (continued)** ### Revenue Recognition The Company has adopted Financial Accounting Standards Board issued ASU 2014-09 Revenue from Contracts with Customers which is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. Revenue is measured based on the amount of consideration specified in a contract with a customer. The Company recognizes revenue when and as performance obligations are satisfied. Commissions earned on securities transactions and mutual fund servicing fees are recorded on a settlement-date basis. ## Subsequent Events - The Company evaluates events or transactions that occur subsequent to year end for potential recognition or disclosure in the financial statements through the date on which the financial statements are available to be issued. The financial statements were approved by management and available to be issued on February 27, 2022. ## **3. Earnings Per Share** Earnings per share were computed based upon the weighted average shares outstanding. The weighted average shares outstanding at December 31, 2022, were 2,200 common shares. ## **4. Leases** In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), for reporting leases, which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a term of greater than 12 months. Leases of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard became effective for the annual reporting period beginning January 1, 2022. The Company has determined that there is no impact on its financial statements from adopting this standard. The Company leases office space in Minneapolis, Minnesota. The twelve-month term of the lease commenced on September 1, 2022 and terminates on August 31, 2023. Since the term of the lease is 12 months or less, the office lease does not fall under the reporting standards of ASU 2016-02 and the lease payments are expensed to the period of use. The approximate aggregate minimum annual rental and lease commitments of the Company on the office lease are as follows: December 31 , 2022 \$9,400 {12}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2022** ## **5. Income Taxes** The Company has adopted FASB ASC 740-10-25, Accounting for Uncertainty in Income Taxes. The Company will record a liability for uncertain tax positions when it is more likely than not that a tax position would not be sustained if examined by the taxing authority. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company's evaluation on December 31, 2022 revealed no uncertain tax positions that would have a material impact on the financial statements. The 2019 through 2022 tax years remain subject to examination by the IRS. The Company does not believe that any reasonably possible changes will occur within the next twelve months that will have a material impact on the financial statements. ## **6. Minimum Capital Requirements** The Company is subject to the Securities and Exchange Commission (SEC) Uniform Net Capital Rule (SEC Rule 15c3-1 ), which requires the maintenance of minimum capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2022, the Company had net capital of \$108,970, which was \$103,970 in excess of its required net capital of \$5,000. In addition, the Company's ratio of aggregate indebtedness to net capital was 21.17 to 1. ## **7. Fair Value** All of the Company's financial assets and liabilities are carried at market value or at amounts, which, because of their short-term nature, approximate current fair value. ## **8. Related Party Transactions** During the fiscal year ended December 31, 2022, the Company paid commissions and consulting fees in the amount of \$40,929 to a family member of the owner. In addition, the Company paid commissions to the owner during the year in the amount of \$15,001. {13}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. SCHEDULE** I, **COMPUTATION OF NET CAPITAL UNDER RULE 15C3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2022** | NET CAPITAL | | | |--------------------------------------------------------------|-----------|-----------| | Stockholders' Equity | \$110,070 | | | Additions: | | | | Subordinated loans | | | | | | \$110,070 | | Deductions: | | | | Non-allowable items: | | | | Rent deposit | 1,100 | | | | | 1,100 | | Net Capital | | 108,970 | | | | | | Minimum Adjusted Net Capital (Greater of 6 2/3% of Aggregate | | | | Indebtedness of \$23,702 = \$1,580 or \$5,000) | | 5,000 | | | | | | Excess Net Capital | | \$103,970 | | | | | | AGGREGATE INDEBTEDNESS | | | | Accrued commissions and taxes payable | | \$ 23,072 | | | | | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | | 21.17% | | | | | | RECONCILIATION OF NET CAPITAL | | | | Net Capital, as reported in Company's Part IIA | | | | FOCUS report | | \$118,468 | | Audit adjustments made for the following: | | | | Accrual of additional 2022 expenses | | (9,498) | | Adjusted Net Capital | | \$108,970 | {14}------------------------------------------------ ## **AEGIS INVESTMENTS, INC.** ## **SCHEDULE II, COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER 15C3-3 (EXEMPTION) AS OF DECEMBER 31, 2022** No computation of reserve requirements has been made because Aegis Investments, Inc. claims exemption pursuant to paragraph (k)(2)(ii) because all customer transactions are cleared through another broker-dealer on a fully disclosed basis. {15}------------------------------------------------ ## **AEGIS INVESTMENTS, INC. SCHEDULE Ill, INFORMATION FOR POSSESSION OR CONTROL REQUIREMENTS UNDER 15c3-3 (EXEMPTION) AS OF DECEMBER 31, 2022** No information relating to possession or control requirements has been made because Aegis Investments, Inc. claims exemption pursuant to paragraph (k)(2)(ii) because all customer transactions are cleared through another broker-dealer on a fully disclosed basis. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.