# ACQUEST SECURITIES LLC X-17A-5 (2024-01-19) — Broker-dealer annual report - Company: ACQUEST SECURITIES LLC - Form: X-17A-5 - Filed: 2024-01-19 - Period: 2023-12-31 - Accession: 0000878651-24-000001 - CIK: 878651 - File #: 8-44071 - Type: Broker-dealer - 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/878651/000087865124000001/2023auditacquest-.pdf --- {0}------------------------------------------------ #### **UNITED STATES OMB APPROVAL SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | ANNUAL
REPORTS | |-------------------| | FORM
X-17A-5 | | PART
III | **OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12** | SEC FILE NUMBER | | |-----------------|--| | 8-44071 | | **FACING PAGE** **Information Required Pursuant to Rules 17a-5,17a-12, and 18a-7under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING | 01/01/2023 | AND ENDING | 12/31/2023 | | |-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|-----------------|-------------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | Acquest
Securities,
NAME OF FIRM: | LLC | | | | | TYPE OF REGISTRANT (check all
H
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | applicable boxes):
Security-based swap dealer | | Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: | (Do not use a P.O. box | no.) | | | | Ella
3039
Lee
Lane | | | | | | | (No. and Street) | | | | | Houston | | TX | 77019 | | | (City) | | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Sheldon
Stoughton | 917-860-2084 | | sstoughton@acquestadvisors
.com | | | (Name) | (Area Code -Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT
Phillip
V.
George,
PLLC | whose reports are contained | in this filing* | | | | | (Name -if individual, state last,first,and middle name) | | | | | 5179 CR 1026 | Celeste | | TX
75423 | | | (Address) | (City) | (State) | (Zip Code) | | | 02/24/2009 | | 3366 | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number,if applicable) | | | * | FOR OFFICIAL USE | ONLY | | | Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(l)(ii),if applicable. **Persons who are torespond tothe collection of informationcontainedinthisformare notrequiredtorespond unless the form displays a currently valid OMB control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** ## Sheldon Stoughton | i | ,swear (or affirm) that,to | | |-----------------------------------------------|------------------------------------------------------------------------------|--| | financial report
pertaining to the firm of | the best of my knowledge
and belief,the
Acquest
Securities
, LLC | | | December
31 | , as of | | ,2023 ,is true and correct. Ifurther 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. Notary Public *Q^)[ 20 l7G2 '* *2* Signature^ / Title: Member **=** ## **This filing\*\* contains (check all applicable**7 - H (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - K1 (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). - **IS** (d) Statement of cash flows. - H (e) Statement of changes in stockholders'or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - Xl (g) Notes to consolidated financial statements. - H (h) Computation of net capital under 17 CFR 240.15c3-lor 17 CFR 240.18a-l,as applicable. - (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. - (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4,as applicable. - (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - B (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - (n) Information relatingto 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. - Kl (o) Reconciliations,including appropriate explanations,of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l,17 CFR 240.18a-l,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 applicable,if material differences exist,or a statement that no material differences exist. - (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 53 (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. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **S3** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - 29 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5,17 CFR 240.18a-7,or 17 CFR 240.17a-12,as applicable. - (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. - 0 (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. - (x) Supplemental reports on applying agreed-upon procedures,in accordance with 17 CFR 240.15c3-le 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). - (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}------------------------------------------------ **ACQUEST SECURITIES, LLC FINANCIAL STATEMENTS DECEMBER 31, 2023** {3}------------------------------------------------ ## C O N T E N T S | Report of
Independent Registered Public
Accounting Firm | 2 | |---------------------------------------------------------------|-------------| | Statement of
Financial Condition | 3 | | Statement of
Income | A | | Member's
Statement of
Changes in
Equity | 5 | | Statement of
Cash Flows | 6 | | Notes to
Financial Statements. | -
7
8 | | I
Schedule | .9 | | Report of
Independent Registered
Public Accounting Firm | 10 | | Exemption Report | 11 | #### 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, 2023, the related statements of income, 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, 2023, 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 I 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 17, 2024 ![](_page_4_Picture_14.jpeg) ![](_page_4_Picture_15.jpeg) {5}------------------------------------------------ | ASSETS | | | |-------------------------------------------------------|----|---------------------------| | Cash
Accounts
receivable
expenses
Prepaid | \$ | 67,410
10,000
3,522 | | TOTAL ASSETS | \$ | 80,932 | | LIABILITIES AMD MEMBER'S
EQUITY | | | | payable
Accounts | £ | 630 | | TOTAL LIABILITIES | | 630 | | MEMBER'S
EQUITY | | 80,302 | | TOTAL LIABILITIES AND MEMBER'S
EQUITY | \$ | 80,932 | {6}------------------------------------------------ | REVENUES | | |--------------------------------------|--------------| | Advisory fees | \$
80,000 | | Reimbursed expense income | 683 | | | | | TOTAL REVENUES | 80,683 | | EXPENSES | | | Compensation and other related costs | 10,200 | | Communications | 2,330 | | Legal and professional | 11,660 | | Occupancy and other related costs | 7,800 | | Regulatory fees and expenses | 1,886 | | Travel | 683 | | Other expenses | 6,614 | | | | | TOTAL EXPENSES | 41,173 | | | | | NET INCOME | \$
39,510 | {7}------------------------------------------------ | December 31,
Balance,
2022 | \$
10,292 | |----------------------------------|--------------| | Net income | 39,510 | | Contributions from
member | 30,500 | | December 31,
Balance,
2023 | \$
80,302 | {8}------------------------------------------------ | CASH FLOWS FROM OPERATING ACTIVITIES
Net income
income to
Adjustments to
reconcile net
net
cash
provided by operating activities:
Changes in
operating assets and liabilities | \$
39,510 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------| | Increase in
accounts receivable | (10,000) | | Increase in
prepaid expenses | (294) | | Decrease in
accounts payable | (9,104) | | Net cash provided by in
operating activities | 20,112 | | CASH FLOWS FROM FINANCING ACTIVITIES | | | Contributions from
member | 30,500 | | NET INCREASE IN CASH | 50,612 | | CASH AT BEGINNING OF YEAR | 16,798 | | CASH AT END OF YEAR | \$
67,410 | ## **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, 2023** #### 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. 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. 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). {10}------------------------------------------------ ### **ACQUEST SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023** #### **NOTEA NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** **Current Expected Credit Losses fCECL) - The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20,** *Financial Instruments* **—** *Credit Losses.* **FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported in Credit Loss expense.** **Subsequent Events - The Company has evaluated subsequent events through January 17, 2024, the date the financial statements were available to be issued. The Company made a distribution to its member of \$38,000 in January 2024.** #### **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, 2023, the Company had net capital of \$66,780, which was \$61,780 in excess of its net capital requirement of \$5,000. The Company's net capital ratio was .01 to 1.** #### **NOTEC RELATED PARTY TRANSACTIONS** **The member provides office space, utilities and personnel to the Company. The member charges the Company based on the proportional allocation of facilities and services provided. Amounts charged by the member totaled \$6,402, \$1,398 and \$10,200 respectively for 2023. Amounts payable to the member for the charges and expense reimbursements total \$511 at December 31, 2023.** #### **NOTE D CONCENTRATION OF CREDIT RISK AND REVENUE** **At December 31, 2023, the Company's accounts receivable of \$10,000, or approximately 12% of total assets, is due from one customer. All of the Company's revenue for 2023 was earned from this customer.** #### **NOTE E 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.** {11}------------------------------------------------ ## **ACQUEST SECURITIES, LLC SCHEDULEI SUPPLEMENTAL INFORMATION PURSUANT TO RULE 17A-5 DECEMBER 31, 2023** | COMPUTATION OF NET CAPITAL | | | |-------------------------------------------------------------------------------------------------------------------------|----|------------| | Total member's
equity qualified for
net
capital | \$ | 80,302 | | | | | | Deductions and/or
charges | | | | Nonallowable assets: | | | | Accounts receivable | | 10,000 | | Prepaid expenses | | 3,522 | | Net capital | \$ | 66,780 | | | | | | AGGREGATE INDEBTEDNESS | | | | Accounts payable | 1 | 630 | | COMPUTATION ON BASIC NET CAPITAL REQUIREMENTS
capital required (6
2/3%
of
Minimum net
total
aggregate | | | | indebtedness) | 1 | 42 | | | | | | Minimum dollar net
capital requirement | \$ | 5,000 | | | | | | Net capital requirement (greater
of above two
minimum | | | | requirement amounts) | \$ | 5,000 | | | | | | Excess net
capital | \$ | 61,780 | | | | | | Ratio:
Aggregate indebtedness to
net
capital | | .01to
1 | | | | | ### **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, 2023 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. {12}------------------------------------------------ ## 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 Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) Acquest Securities, LLC (the Company) did 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. In addition, the Company did 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 Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and 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 provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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 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 upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. PHILLIP V. GEORGE, PLLC Celeste, Texas January 17, 2024 ![](_page_12_Picture_10.jpeg) {13}------------------------------------------------ ## **Acquest Securities, LLC 3039 Ella Lee Lane / Houston,Texas 77019 917-860-2084** # **Acquest Securities,LLC 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;(1) 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. ''Member 7 Sheldon Stoughton, January 10, 2024 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.