# AMERICAN HERITAGE SECURITIES, INC. X-17A-5 (2024-04-04) — Broker-dealer annual report - Company: AMERICAN HERITAGE SECURITIES, INC. - Form: X-17A-5 - Filed: 2024-04-04 - Period: 2023-12-31 - Accession: 0000883126-24-000001 - CIK: 883126 - File #: 8-44466 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company - Auditor location: Dallas, TX - Contact: Jeffrey Thomas - Phone: 3303747500 - Email: jthomas@alpha-asset.com - Website: alpha-asset.com - Signed by: Jeffrey C Thomas (President) Original filing: https://www.sec.gov/Archives/edgar/data/883126/000088312624000001/ahs2023audit1.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17A-5 | | PART Ill | **FACING PAGE** **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILINGFOR THE PERIOD BEGINNING **01/01/23** --------- AND ENDING **12/31/23** **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: AMERICAN HERITAGE SECURITIES, INC. TYPE OF REGISTRANT (check all applicable boxes): 0 Broker-dealer D Security-based swap dealer D Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: {Do not use a P.O. box no.) # 50 SOUTH MAIL STREET, SUITE 1210 | | (No. and Street) | | | | |-------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|-------------------------------------------|--| | AKRON | OH | | 44308 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | JEFFREY C. THOMAS | (330) 374-7500 | | JTHOMAS@ALPHA-ASSET .COM | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
SANVILLE & COMPANY | (Name - if individual, state last, first, and middle name) | | | | | 325 N ST. PAUL ST., STE 3100 DALLAS | | TX | 75201 | | | (Address) | (City) | (State) | (Zip Code) | | | 09/18/03 | | 169 | | | | te of Reg;suafo, w;th PCAOB)l;f appHcable) | | | (PCAOB Reglstcafo, N,mbec, ;f a ppHcable) | | | r | FOR OFFICIAL USE ONLY | | | | | | | | I | | | | | | | | \* 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)(1){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.** | 0MB APPROVAL | | | | |---------------------------|--|--|--| | 0MB Number: 3235-0123 | | | | | Expires: Nov. 30, 2026 | | | | | Estimated average burden | | | | | hours per response:
12 | | | | SEC FILE NUMBER | 8-44466 | | | | |---------|--|--|--| | | | | | | MM/DD/VY | MM/DD/VY | |----------|----------| {1}------------------------------------------------ #### **OATH OR AFFIRMATION** as that of a customer. I, JEFFREYc. THOMAS swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of AMERICAN HERITAGE sEcuR1r1Es INC. ' as of 12/31 2�, 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 proprietar interest in any account classified solely e **BRENDAN A WHITE** ![](_page_1_Picture_4.jpeg) � (1\_4 ?t/k/4 Notary Public #### **This filing\*\* contains (check all applicable boxes):** - !! (a) Statement of financial condition. - CJ (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). - � (d) Statement of cash flows. - � (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0 (f) Statement of changes in liabilities subordinated to claims of creditors. - � (g) Notes to consolidated financial statements. - � (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.18a-l, as applicable. - 0 (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 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - � (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - CJ (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 240.15c3-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. - 0 (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - I!! (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. - 0 (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - l!!l (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 (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-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - 0 (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. - f!!ii (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. - 0 (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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). 0 (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) FINANCIAL STATEMENTS WITH ADDITIONAL INFORMATION YEAR ENDED DECEMBER 31, 2023 {3}------------------------------------------------ # YEAR ENDED DECEMBER 31, 2023 ## TABLE OF CONTENTS | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 -
2 | |---------------------------------------------------------------------------------------------------------------------------------------------------------|----------| | STATEMENT OF FINANCIAL CONDITION
December 31, 2023 | 3 | | STATEMENT OF INCOME
Year ended December 31, 2023 | 4 | | STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
Year ended December 31, 2023 | 5 | | STATEMENT OF CASH FLOWS
Year ended December 31, 2023 | 6 | | NOTES TO THE FINANCIAL STATEMENTS | 7-9 | | SUPPLEMENTARY SCHEDULES | | | SCHEDULE I: COMPUTATION OF NET CAPITAL
PURSUANT TO RULE 15c3-1 as of December 31, 2023 | 10 | | SCHEDULE 11: REPORT OF A BROKER-DEALER CLAIMING
EXEMPTION FROM SEC RULE15c3-3 | 11 | | SCHEDULE Ill: INFORMATION RELATING TO POSESSION
OR CONTROL REQUIREMENTS UNDER RULE 15C3-3 OF THE SEC | 11 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
REQUIRED BY SEC RULE 17a-5 FOR A BROKER-DEALER CLAIMING AN
EXEMPTION FROM SEC RULE 15c3-3 | 12 | | COMPANY EXEMPTION REPORT | 13 | | REPORT OF INDEPENDENT REGISTERED ACCOUNTANTS ON APPL YING
AGREED-UPON PROCEDURES | 14 | | SIPC 7 REPORT | 16 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Stockholder and Those Charged With Governance of American Heritage Securities, Inc. # **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of American Heritage Securities, Inc. (the Company) as of December 31, 2023, the related statements of income, changes in stockholder's equity, and cash flows for the year then ended, and the related notes to the financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 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 the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included 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. #### **Supplemental Information** The supplementary information contained in The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements Under Rule SEC 15c3-3 and Schedule 111, Information Relating to the Possession or Control Requirements Under SEC Rule 15c3-3 have been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company'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 > 325 North Saint Paul Street Suite 3100 Dallas, Texas 75201 214.738.1998 {5}------------------------------------------------ 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 supplementary information contained in the Schedule I, Computation of Net Capital Under SEC Rule 15c3- 1, Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 and Schedule Ill, Information Relating to the Possession or Control Requirements Under SEC Rule 15c3-3 are fairly stated, in all material respects, in relation to the financial statements as a whole. *s�* ✓ *6� LLC* We have served as the Company's auditor since 2019. Dallas, Texas April 3, 2024 {6}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION # DECEMBER 31, 2023 # ASSETS | ASSETS
Cash
Restricted cash
Commissions receivable
Property and equipment, net
Prepaid Expenses | \$
159,777
25,000
18,217
0
1,020 | |----------------------------------------------------------------------------------------------------------------|-------------------------------------------------| | | \$
204,014 | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES
Accounts payable
Deferred clearing charge rebate | \$
51,851
15,000
66,851 | | STOCKHOLDER'S EQUITY | | | Common stock (15 shares authorized, issued, and outstanding)
Retained earnings | 45,000
92,163 | | Total stockholder's equity | 137,163 | | | \$
204,014 | | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ #### STATEMENT OF INCOME #### FOR THE YEAR ENDED DECEMBER 31, 2023 | REVENUES | | |-------------------------|---------------| | Administrative fees | \$ 1,066,471 | | Management fees | 732,191 | | Commissions | 260,255 | | Distribution Fees | 169,682 | | Interest | 152,905 | | | 2,381,504 | | EXPENSES | | | Commissions | 1,816,937 | | Software expenses | 108,910 | | Salaries and wages | 77,231 | | Clearing Charges | 44,693 | | Professional fees | 32,671 | | Regulatory fees | 18,372 | | Insurance expenses | 13,199 | | Office related expenses | 8,377 | | Tax expense | 7,943 | | Communication expenses | 3,737 | | Interest expense | 1,221 | | Depreciation | 308 | | Other expenses | 45 | | | 2,133,644 | | NET INCOME | 247,860
\$ | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ # STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY # FOR THE YEAR ENDED DECEMBER 31, 2023 | | Common
Stock | Retained
Earnings | Total | |------------------------------|-----------------|----------------------|---------------| | Balance at December 31, 2022 | \$
45,000 | \$
69,431 | \$
114,431 | | Dividends | | (225,128) | (225,128) | | Net income | | 247,860 | 247,860 | | Balance at December 31, 2023 | \$
45,000 | \$
92,163 | \$
137,163 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ #### STATEMENT OF CASH FLOWS #### FOR THE YEAR ENDED DECEMBER 31, 2023 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | |-------------------------------------------------|------------------------------------------------------------|----------|-----|-----------| | Net income | | | | \$247,860 | | Adjustments to reconcile net income to net cash | | | | | | provided by operating activities: | | | | | | | Add back item not affecting cash: | | | | | | Depreciation | \$ | 308 | | | | Cash provided by (used in) changes in the following items: | | | | | | Decrease in commissions receivable | 5,461 | | | | | Increase in prepaid expenses | (1,020) | | | | | Increase in accounts payable | | 668 | | | | Decrease in accrued liabilties | (12,628) | | | | | Decrease in deferred clearing charge rebate | (19,987) | | (27,198) | | | Net cash provided by operating activities | | | 220,662 | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | Dividends paid | | | (225,128) | | NET DECREASE IN CASH | | | | (4,466) | | CASH - BEGINNING OF YEAR | | | | 164,243 | | CASH - END OF YEAR | | | | \$159,777 | | | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | | | | | | CASH PAID DURING THE YEAR FOR: | | | | | | | LOCAL INCOME TAXES | \$ 7,943 | | | | | INTEREST | \$ 1,221 | | | The accompanying notes are an integral part of these financial st.atements. 6 {10}------------------------------------------------ # AMERICAN HERITAGE SECURITIES, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 # 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES # Nature of Businesses American Heritage Securities, Inc. (the Company) was incorporated in 1991 for the purpose of operating as a broker-dealer in securities. The Company operates as an introducing broker, whose services are limited to accepting customer orders. The Company has a business relationship with an independent clearing broker who is responsible for processing and settling customer transactions on a fully disclosed basis. The Company is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulation Authority (FINRA). # Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. # Restricted Cash Restricted deposits consist of cash. These deposits are restricted in accordance with the Company's agreement with its independent clearing broker, who is responsible for processing and settling customer transactions on a fully disclosed basis. # Commissions Receivable Commissions receivable are from clearing organizations and mutual funds and are stated at the amount management expects to collect from outstanding balances related to commission fees and gains. Since these relate to commission fees receivable from customers, an allowance for doubtful accounts is not deemed necessary by management, nor is it required according to the computation for determination of reserve requirements pursuant to Rule 15c3-3. #### Property and Equipment Property and equipment are recorded at cost. Depreciation of property and equipment are provided by the use of accelerated and straight-line methods over the following estimated useful lives of the assets: | Furniture and fixtures | 3-5 | years | |------------------------|-----|-------| | Office equipment | 3-5 | years | | Vehicle | 5 | years | #### Revenue Recognition ### Commission Revenue Commission revenue is generally recognized at a point in time upon delivery of contracted services based on a predefined contractual amount on a trade date for a trade execution services based on providing {11}------------------------------------------------ # AMERICAN HERITAGE SECURITIES, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 # 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) market prices and internal and regulatory guidelines. Commission revenue consists of the sale of equity and fixed income securities and unit investment trusts. # Management Fees The Company provides investment advisory services on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. # Distribution Fees # *Mutual Funds, Insurance and Annuity Products* The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company's control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur. # Income Taxes American Heritage Securities, Inc. is taxed as an S-Corporation. The S-Corporation is subject to a built-in gain tax on the net appreciation of assets realized if they are sold within the first 5 years after the S election was made. The Company does not expect to incur any material tax expense as a result of built-in gain tax. No provision or liability for federal income taxes has been included in the financial statements. The Company is liable for city income tax as applicable. As of December 31, 2023, the Company paid \$7,943 of city income tax. The Company's federal income tax returns for December 31, 2020, 2021, and 2022 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. # 2. NET CAPITAL REQUIREMENTS Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. {12}------------------------------------------------ # AMERICAN HERITAGE SECURITIES, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 # 3. NET CAPITAL REQUIREMENTS (continued) As of December 31, 2023, the Company had net capital of approximately \$136, 144 and net capital requirements of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .49 1. The Securities and Exchange Commission permits a ratio of no greater than 15 to 1. # 4. RELATED PARTY TRANSACTIONS The Company shares office space and personnel with EGI Financial, Inc. (EGI). EGI is a related entity owned by the Company's sole stockholder. As compensation for this arrangement, the Company receives a management fee equal to 100% of EGl's advisory fee revenue. During the year ended December 31, 2023, management fees from EGI totaled \$1,066,471. # 5. PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2023 consists of: | Furniture and fixtures | \$
25,226 | |--------------------------------|--------------| | Less: Accumulated depreciation | (25,226) | | Property and equipment, net | \$
0 | # 6. RETIREMENT PLAN The Company has a defined contribution retirement plan (the Plan) that meets the requirements of a "Savings Incentive Match Plan for Employees" (SIMPLE), as defined by the Internal Revenue Code. For the year ended December 31, 2023, the Company contributed \$350 to the Plan. # 7. INDEMNIFICATION In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services, to the Company. The maximum potential amounts of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will be required to make significant payments under these arrangements and, therefore, no contingent liability has been recorded in the accompanying financial statements. ## 8. COMMITMENTS AND CONTINGENCIES Included in the Company's clearing agreement with its clearing broker-dealer is an indemnification clause. This clause relates to instances where the Company's customers fail to settle security transactions. In the event this occurs, the Company will indemnify the clearing broker-dealer to the extent of the net loss on any unsettled trades. As of December 31, 2023, management of the Company had not been notified by the clearing broker-dealer, nor were they otherwise aware, of any potential losses relating to this indemnification. {13}------------------------------------------------ # AMERICAN HERITAGE SECURITIES, INC. SCHEDULE I COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 # DECEMBER 31, 2023 | COMPUTATION OF NET CAPITAL: | Total stockholder's equity from statement of
financial condition | \$
137,163 | |-----------------------------|-------------------------------------------------------------------------------|--------------------------| | | Less: Stockholder's equity not allowable for net capital | | | | Total stockholder's equity qualified for net capital | 137,163 | | | Total other deductions | (1,020) | | | Net capital before haircuts on security positions | 136,143 | | | Haircuts on securities pursuant to 15c3-1 | | | | Net capital | \$
136,143 | | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT:
Minimum net capital required | \$
4,457 | | | Minimum dollar requirement | \$
5,000 | | | Net capital requirement | \$
5,000 | | | Excess net capital
Net capital
Less: Net capital requirement | \$
136,143
(5,000) | | | Total | \$
131,143 | | | Net capital less the greater of 10% of line 19 or 120% of line 12 | \$
129,458 | | AGGREGATE INDEBTEDNESS: | Aggregate indebtedness liabilities | \$
66,851 | | | Percent of aggregate indebtedness to net capital | 49.10% | There were no material differences in the computation of net capital under Rule 15c3-1 from the Company's unaudited FOCUS II-A Report. See the Report of Independent Registered Public Accounting Firm. {14}------------------------------------------------ # AMERICAN HERITAGE SECURITIES, INC. SCHEDULE II & Ill SUPPLEMENTARY FINANCIAL INFORMATION # YEAR ENDED DECEMBER 31, 2023 # COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENT TO RULE 15c3-3 The Company is considered exempt from Securities Exchange Commission ("SEC") Rule 15c3-3 pursuant to both the exemptive provisions of sub-paragraph (k)(2)(ii) and is considered a "Non-Covered Firm" from 15c3-3 by relying on footnote 7 4 to SEC Release 34-70073 and therefore, is not reqired to maintain a "Special reserve bank account for the Exclusive benefit of customers." The Company is considered exempt from Securities Exchange Commission ("SEC") Rule 15c3-3 pursuant to both the exemptive provisions of sub-paragraph (k)(2)(ii) and is considered a "Non-Covered Firm" from 15c3-3 by relying on footnote 7 4 to SEC Release 34-70073 and therefore, is not reqired to maintain a "Special reserve bank account for the Exclusive benefit of customers." See the Report of Independent Registered Public Accounting Firm. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** **To the Stockholder and Those Charged With Governance of American Heritage Securities, Inc.** **We have reviewed management's statements, included in the accompanying Exemption Report, in which American Heritage Securities, Inc. (the Company) stated that:** - **1. The Company identified the following provisions of 17 C.F.R. § 240.1 5c3-3(k) under which the Company claimed an exemption from 17 C.F.R. § 240.1 5c3-3: Paragraph (k)(2)(ii) (the exemption provisions), and the Company stated that it met the identified exemption provisions throughout the most recent fiscal year without exception;** - **2. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.1 7a-5 are limited to (1) acting as a mutual fund retailer (2) acting as a broker or dealer selling variable life insurance or annuities throughout the most recent fiscal year; and** - **3. The Company (1) 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 17 C.F.R. § 240.1 5c2-4; (2) did not carry accounts of or for customers; and (3) did not carry proprietary accounts of broker-dealers (as defined in 17 C.F.R. § 240.1 5c3-3), throughout the most recent fiscal year without exception.** **The Company's management is responsible for 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 the Company's compliance with the exemption provisions and that the Company's other business activities were limited to (1) acting as a mutual fund retailer (2) acting as a broker or dealer selling variable life insurance or annuities and (1) 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 17 C.F.R. § 240.1 5c2-4; (2) did not carry accounts of or for customers; and (3) did not carry proprietary accounts of broker-dealers (as defined in 17 C.F.R. § 240.1 5c3-3) throughout the most recent fiscal year without exception. 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 17 C.F.R. § 240.1 5c3-3 and 17 C.F.R. § 240.1 7a-5.** *s�* ✓ CoY? � **Dallas, Texas March 3, 2024** 325 North Saint Paul Street Suite 3100 Dallas, Texas 75201 214.738.1998 {16}------------------------------------------------ # AMERIC AN H E RIT A G E # SEC U R ITIES ·]/:.' •• •• • Jeffrey C. Thomas, *President* **JTHOMAS@AMER!CANHERIT,�GESJ,CUR!TIES.COM** # **EXEMPTION REPORT** DECEMBER 31, 2023 American Heritage Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 1 7a-5 promulgated by the Securities and Exchange Commission (17 C. F.R. §240. I 7a-5, "Repo1ts to be made by ce1tain brokers and dealers"). Th is Exemption Report was prepared as required by 17 C.F.R. §240. I 7a-5( d)( 1) and ( 4 ). To the best of its knowledge and bel ief, the Company states the fol lowing: - (I) The Company claimed an exemption f r om 17 C.F.R. §240. I 5c3-3 under the fol lowing provisions of 17 C.F.R. §240. I 5c3-3(k)(2)(i i). - (2) The company met the identif ied exemption provision in 17 C.F.R. §240.I 5c3-3(k) throughout the most recent fiscal year without exception. - (3) The Company is considered a "Non-Covered Firm" exempt from 17 C.F.R. §240.1 ScJ-3 and is fi ling this Exemption Report relying on footnote 74 to SEC Release No. 34-70073, and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. The Company limits its business activ ities exclusively to: ( 1) acting as a mutual fund retai ler and (2) acting as a broker or dealer sel ling variable life insurance or annuities. - ( 4) The Company (I) d id 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 l 5c2-4; (2) d id not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 1 5c3-3), throughout the most recent fiscal year without exception. **!\ MFR1C.AN .H ERT'l'AG ES FClJ RfTTES.COiVI** {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures** **Sanville &Company LLC** Philadelphia I New York I Dallas To the Stockholder and Those Charged With Governance of American Heritage Securities, Inc. We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2023. Management of American Heritage Securities, Inc. (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The appropriateness of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the appropriateness 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 record entries, noting no differences. - 2. Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17 A-5 Part Ill for the year ended December 31, 2023, with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31, 2023, 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. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not, conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Accordingly, we > 325 North Saint Paul Street Suite 3 100 Dallas, Texas 7520 1 2 14.738. 1998 {18}------------------------------------------------ do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be, and should not be, used by anyone other than these specified parties. *s�*✓*��LLC* Dallas, Texas March 3, 2024 {19}------------------------------------------------ # **GENERAL ASSESSMENT FORM** For the fiscal year ended 1 2/31/2023 | | " ""'"""''" ' '~-, ----�---,, __________ , ______ ,_,_�------------·-"''-''-'''"''"'' ' " "
Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
AMERICAN HERITAGE SECURITIES INC | SEC No.
8-44466 | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------| | | 1 /1 /2023
and ending
For the fiscal period beginning | 1 2/31 /2023 | | | 1 | Total Revenue (FOCUS Report - Statement of Income (Loss) - Code 4030) | | \$ 2,381 ,504.00 | | 2 | Additions: | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | | d Interest and dividend expense deducted in determining item 1. | | | | | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | | | g Net loss from securities in investment accounts. | | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 | | 3 | Add lines 1 and 2h | | \$ 2,381 ,504.00 | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 262, 169.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$ 47,039.00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | e Net gain from securities in investment accounts. | | | | | f 1 00% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 1 6(9)(L) of the Act). | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | | | 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss) - Code 4075 plus line 2d above) but
\$ 1 ,221 .00
not in excess of total interest and dividend income | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report - Statement of Income (Loss) -
Code 3960) | | | | | c Enter the greater of line 5a or 5b | \$ 1 ,221 .00 | | | 6 | Add lines 4a through 4h and 5c. This is your total deductions. | | \$ 31 0,429.00 | {20}------------------------------------------------ SIPC-7 37 REV 0722 #### **GENERAL ASSESSMENT FORM** For the fiscal year ended 1 2/31/2023 | 7 | | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | \$ 2,071 ,075.00 | |-------|-------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-------------------------------------|------------------------| | 8 | Multiply line 7 by .001 5. This is your General Assessment. | | \$ 3,106.00 | | | | 9 | | Current overpayment/credit balance, if any | | | | | 10 | | General assessment from last filed 2023 SIPC-6 or 6A | | \$ 993.00 | | | | b Any other overpayments applied
d Add lines 11a through 11c | 11 a Overpayment(s) applied on all 2023 SIPC-6 and 6A(s)
c All payments applied for 2023 SIPC-6 and 6A(s) | \$ 0.00
\$ 0.00
\$ 993.00 | \$ 993.00 | | | 12 | LESSER of line 10 or 11d. | | | | \$ 993.00 | | 14 | 13 a Amount from line 8
b Amount from line 9
c Amount from line 12
Interest (see instructions) for | d Subtract lines 1 3b and 1 3c from 1 3a. This is your assessment balance due.
O
days late at 20% per annum | | \$ 3,106.00
\$ 0.00
\$ 993.00 | \$ 2,113.00
\$ 0.00 | | 15 | | IAmount you owe SIPC. Add lines 1 3d and 14. | | | \$ 2, 1 1 3.ooll | | 16 | | Overpayment/credit carried forward (if applicable) | | | \$ 0.00 | | l sEC | N_o _______ D_e_s-ig-n-a_te_d_E
1 8-44466
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MAILING ADDRESS | �th_o_n_"
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AMERICAN HERITAGE SECURITIES INC
50 S MAIN ST STE 1210
AKRON, OH 44308-1 831 | ----�-----
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,, | | | | | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) [Z] By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SI PC's Privacy Policy | AMERICAN HERITAGE SECURITIES INC | JEFFREY CRAIG THOMAS | | | |----------------------------------|-------------------------|--|--| | (Name of SIPC Member) | (Authorized Signatory) | | | | 2/5/2024 | jthomas@alpha-asset.com | | | | (Date) | (e-mail address) | | | | | | | | Completion of the "Authorized Signatory" line will be deemed a signature. *This form and the assessment payment are due* **60** *days after the end of the fiscal year.* Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.