# ACQUEST SECURITIES LLC X-17A-5 (2021-01-27) — Broker-dealer annual report - Company: ACQUEST SECURITIES LLC - Form: X-17A-5 - Filed: 2021-01-27 - Period: 2020-12-31 - Accession: 0000878651-21-000001 - CIK: 878651 - File #: 8-44071 - Material weakness: No - Auditor: Phillip V. George, PLLC - Auditor location: Celeste, TX - Contact: Sheldon Stoughton - Phone: 917-860-2084 - Signed by: Sheldon Stoughton (Member) Original filing: https://www.sec.gov/Archives/edgar/data/878651/000087865121000001/2020auditacquest-.pdf --- {0}------------------------------------------------ **UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549** **hoursper response..—12.00 ANNUAL AUDITED REPORT FORM X- 17A-5 PART III** **OMB APPROVAL OMB Number. 3235-0123 Expires: October 31,2023 Estimated average burden** # SEC RLE NUMBER **8-44071** **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | Securities | Exchange
of
1934
and Rule
Act | 17a-5
Thereunder | | | | |-------------------------------------------------------------------|---------------------------------------------------------------------|----------------------------------|--------------------------------|--|--| | REPORT FOR THE PERIOD BEGINNING01/01/2020 | | | AND ENDING12/31/2020 | | | | | MM/DD/YY | | MM/DD/YY | | | | A. | REGISTRANT
IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: Acquest | Securities
LLC
, | | OFFICIAL
USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | | Ella
3039
Lee
Lane | | | | | | | | (No. and Street) | | | | | | Houston | TX | | 77019 | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO
Sheldon Stoughton | | CONTACT IN REGARD TO THIS REPORT | | | | | | | | (Area Code - Telephone Number) | | | | B. | ACCOUNTANT
IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained | | in this Report* | | | | | Phillip
V
George
PLLC
, | | | | | | | | (Name -if individual, state last, first, middle name) | | | | | | CR
5179
1026 | Celeste | TX | 75423 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE: | | | | | | | J
Certified 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 asthe basis forthe exemption. See Section 240***.***I7a-5(e)(2)* **Potential persons who are to respond to the collection of informationcontained in thisformare not required to respond SEC unlesstheformdisplaysa currently validOMBcontrol number. 1410 (11-05)** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** ### *l* **Sheldon Stoughton** ,swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of **Acquest Securities, LLC** , as *,* 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: **0f December 31** , **2020** | | -
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see | {2}------------------------------------------------ **ACQUEST SECURITIES, LLC FINANCIAL STATEMENTS DECEMBER 31, 2020** {3}------------------------------------------------ ## C O N T E N T S | Independent
Report of
Registered Public
Accounting Firm | 2 | |------------------------------------------------------------------|-------------| | Statement
of
Financial Condition | 3 | | of
Operations
Statement | 4 | | Member's
Changes in
Equity
Statement
of | 5 | | of
Statement
Cash Flows | 6 | | Notes to
Financial Statements | -
9
7 | | I
Schedule | 10 | | Report of
Independent
Registered Public
Accounting Firm | 11 | | Exemption Report | 12 | Page {4}------------------------------------------------ ## PHILLIP V. GEORGE, PLLC CERTIFIED PUBLIC ACCOUNTANT **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Acquest Securities, LLC ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Acquest Securities, LLC as of December 31, 2020, 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 Acquest Securities, LLC as of December 31, 2020, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Acquest Securities, LLC's management. Our responsibility is to express an opinion on Acquest Securities, LLC's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Acquest Securities, LLC 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. Our audit included performing procedures to assess the risks of material misstatement 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 as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplemental information contained in Schedule I has been subjected to audit procedures performed in conjunction with the audit of Acquest Securities, LLC's financial statements. The supplemental information is the responsibility of Acquest Securities, LLC'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. §240.17a-5. In our opinion, the supplemental information contained in Schedule 1 is fairly stated, in all material respects, in relation to the financial statements as a whole. PHILLIP V. GEORGE, PLLC We have served as Acquest Securities, LLC's auditor since 2017. Celeste, Texas January 19, 2021 {5}------------------------------------------------ | ASSETS | | |------------------------------------------|---------------------| | Cash
Prepaid expenses | \$
20,846
222 | | TOTAL ASSETS | \$
21,068 | | AM)
LIABILITIES
MEMBER S EQUITY | | | Accounts payable | \$
837 | | TOTAL LIABILITIES | \$
837 | | MEMBER'S EQUITY | 20,231 | | TOTAL LIABILITIES AND MEMBER'S
EQUITY | \$
21,068 | {6}------------------------------------------------ | REVENUES | | |-----------------------------------------------|----------------| | banking fees
Investment | \$
5,000 | | TOTAL REVENUES | 5,000 | | EXPENSES | | | Compensation and
other
related
costs | 2,600 | | Communications | 2,688 | | Legal and professional | 11,008 | | Reglatory fees
and
expenses | 1,678 | | Other expenses | 2,305 | | TOTAL EXPENSES | 20,279 | | NET LOSS | \$
(15,279) | {7}------------------------------------------------ | Balance,
December 31,
2019 | \$
19,510 | |----------------------------------|--------------| | Net loss | (15,279) | | Contributions from
member | 16,000 | | Balance,
December 31,
2020 | \$
20,231 | {8}------------------------------------------------ | CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
Adjustments
to
reconcile net
loss to
net
cash
activities:
used in
operating | \$
(15,
279) | |---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------| | Changes in
operating
assets and liabilities
Decrease in
prepaid
expenses | 170 | | Decrease in
accounts payable | (330) | | Net cash used in
operating
activities | (15,439) | | CASH FLOWS FROM FINANCING ACTIVITIES
Contributions from
member | 16,000 | | NET INCREASE IN
CASH | 561 | | CASH AT BEGINNING OF YEAR | 20,285 | | CASH AT END OF YEAR | \$
20,846 | #### **Supplemental Disclosures of Cash Flow Information:** There was no cash paid during the year for interest or income taxes. {9}------------------------------------------------ ## **ACQUEST SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** #### NOTEA NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business - Acquest Securities, LLC (Company), a Texas limited liability company, was formed in January 2007. The Company is registered as a broker/dealer with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporate (SIPC). The Company is considered Non-Covered Firm exempt from 17 C.F.R. § 240.15c3-3 relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. The Company limits its business activities exclusively to engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules. The Company's CAB activities consist primarily in providing investment banking services to corporations and financial institutions located throughout the United States. #### Significant Accounting Policies: Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. Income Taxes -The Company is a single member limited liability company and is treated as a disregarded entity for federal income tax purposes. The Company's taxable income or loss is included in the individual tax return of its member; therefore, federal income taxes are not payable by or provide for the Company. The Company is subject to the Texas margin tax which is a state income tax. The Company believes that all significant tax provisions utilized by the Company will more likely than not be sustained upon examination. As of December 31, 2020,the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2017 forward. Revenue Recognition Revenue from contracts with customers includes fees from investment banking services. The recognition and measurement of revenue 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. {10}------------------------------------------------ ## **ACQUEST SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** #### NOTEA NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company provides advisory services on investment banking transactions. Generally, these contracts call for monthly fixed payments that are recognized monthly as the performance obligations are simultaneously provided by the Company and consumed by the customer. Generally, these contracts also call for variable payments related to the closing of transactions which are recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). Subsequent Events - The Company has evaluated subsequent events through January 19, 2021, the date the financial statements were available to be issued. No subsequent events occurred which require adjustment or disclosure to the financial statements at December 31, 2020. ### NOTE B NET CAPITAL REQUIREMENTS The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-lalso provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2020, the Company had net capital of \$20,009, which was \$15,009 in excess of its net capital requirement of \$5,000. The Company's net capital ratio was .04 to 1. #### NOTEC RELATED PARTY TRANSACTIONS The member provides office space for the Company at no cost to the Company. {11}------------------------------------------------ ## **ACQUEST SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** #### NOTE D CONTINGENCIES There are currently no asserted claims or legal proceedings against the Company, however,the nature of the Company's business subjects it to various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such action against the Company could have an adverse impact on the financial condition, results of operations, or cash flows of the Company. {12}------------------------------------------------ ## **ACQUEST SECURITIES, LLC SCHEDULEI SUPPLEMENTAL IISFORMATION PURSUANT TO RULE 17A-5 DECEMBER 31, 2020** | COMPUTATION OF NET CAPITAL | | |---------------------------------------------------------------------------------------------------------------------------------------------------|----------------| | Total
for
member's
equity
qualified
net
capital | \$
20,231 | | | | | Deductions and/or
charges
Nonallowable assets: | | | Prepaid expenses | 222 | | Net capital | \$
20,009 | | AGGREGATE INDEBTEDNESS | | | Accounts payable | \$
837 | | COMPUTATION ON BASIC NET CAPITAL REQUIREMENTS
(6
2/3%
required
aggregate
Minimum
net
capital
of
total
indebtedness) | \$
56 | | Minimum
dollar
net
capital
requirement | \$
5,000 | | (greater
above two
Net capital
requirement
of
minimum | | | amounts)
requirement | \$
5,000 | | Excess net
capital | \$
15,009 | | Ratio:
to
net
capital
Aggregate indebtedness | 1
.04
to | ### **Reconciliation of Computation of Net Capital** The above computation does not differ from the computation of net capital under Rule 15c3-las of December 31, 2020 as filed by Acquest Securities, LLC on Form X-17A-5. Accordingly, no reconciliation is deemed necessary. ### **Statement Regarding Changes in Liabilities Subordinated to Claims of General Creditors** No statement is required as no subordinated liabilities existed at any time during the year. ## **Statement regarding the Exemption from Reserve Requirements** The Company is considered Non-Covered Firm exempt from 17 C.F.R.§ 240.15c3-3 relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R.§ 240.17a-5. The Company limits its business activities exclusively to engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules. Under these provisions, the Computation for Determination of Reserve Requirements and Information Relating to the Possession of Control Requirements are not required. See accompanying report of independent registered public accounting firm. {13}------------------------------------------------ ## PHILLIP V. GEORGE, PLLC **CERTIFIED PUBLIC ACCOUNTANT** ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Acquest Securities, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which ( 1 ) Acquest Securities, LLC does not claim an exemption from 17 C.F.R. §240.15c3-3, and (2) Acquest Securities, LLC is filing the Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 as a Non-Covered Firm as it limits its business activities exclusively to engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules and approved for membership in FINRA as a CAB, and Acquest Securities, LLC (i) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (ii) did not carry accounts of or for customers; and (ii) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Acquest Securities, LLC's management is responsible for compliance with the Non-Covered Firm Provision 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 Acquest Securities, LLC's compliance with the Non-Covered Firm Provision. 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 Non-Covered Firm Provision. PHILLIP V. GEORGE, PLLC Celeste, Texas January 19, 2021 {14}------------------------------------------------ ## Acquest Securities, LLC **3039 Ella Lee Lane / Houston, Texas 77019 917-860-2084** #### **Exemption Report** **Acquest Securities, LLC** (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5,"Reports to be made by certain brokers and dealers").This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief,the Company states the following: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to: engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules and approved for membership in FINRA as a CAB, and the Company (1) did not directly or indirectly receive, hold,or otherwise owe funds or securities for or to customers;(2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. #### **Acquest Securities, LLC** I, Sheldon Stoughton, swear (or affirm) that,to my best knowledge and belief,this Exemption Report is true and correct. *IXr* Sheldon StoughtofCMember January 17, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.