# AMERICAN HERITAGE SECURITIES, INC. X-17A-5 (2025-03-26) — Broker-dealer annual report - Company: AMERICAN HERITAGE SECURITIES, INC. - Form: X-17A-5 - Filed: 2025-03-26 - Period: 2024-12-31 - Accession: 0000883126-25-000001 - CIK: 883126 - File #: 8-44466 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company - Auditor location: Huntingdon Valley, PA - 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/883126/000088312625000001/americanheritage2024audit4.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** **ANNUAL REPORTS FORM X-17A-5** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-44466 **PART Ill** **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 **0 1/01f24** AND ENDING **1 2/31/24** --------- ---------- MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: AMERICAN HERITAGE SECURITIES, INC. TYPE OF REGISTRANT (check all applicable boxes): C!l 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 | | | | 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 | | | Tte of Re~strnUoo w;th PCAOBJ(;f appUcable) | | | (PCAOB Reg;strnUon N"mbe,, ;f appUcable) | | | 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 rel ied on as the basis of the exemption. See 17 CFR 240.17a-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** | | JEFFREY C. THOMAS | |--|-------------------| | | | I, JEFFREY C. THOMAS swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of AMERICAN HERITAGE SECURITIES INC. as of \_1\_2\_/\_3\_1 \_\_\_\_\_\_\_\_\_\_\_ \_,2~-,-is\_t\_r\_u\_e\_a\_n\_d\_c\_o\_r-re\_c\_t \_\_ -l-fu-rt-he\_r\_s\_w\_e-ar\_(\_o\_r\_a\_ff\_i\_rm-)-th\_a\_t\_n\_e\_i-th\_e\_r\_t\_h\_e\_c\_o\_m\_p\_a\_n\_y\_,norany partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of acustomec. **s;gn.a** ~~ ~- Notary Public This filing\*\* contains (check all applicable Notary Public State o Florida Viral Patel My Commission HH 404881 Expires 7/22/2027 - ~ (a) Statement of financial condition. - L (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. - L(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 240.15c3-1 or 17 CFR 240.18a-1, 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. - LJ (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. - u (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. - □ (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 240.15c3-1, 17 CFR 240.18a-1, 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. - ~ (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. - u (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ~ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [J (t) Independent public accountant's report based on an examination of the statement of financial condition. - l!i!l (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. - ~ (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. - L (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). r::::: (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(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, 2024 {3}------------------------------------------------ #### YEAR ENDED DECEMBER 31, 2024 #### TABLE OF CONTENTS | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 -
2 | |----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | STATEMENT OF FINANCIAL CONDITION
December 31, 2024 | 3 | | STATEMENT OF INCOME
Year ended December 31, 2024 | 4 | | STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
Year ended December 31, 2024 | 5 | | STATEMENT OF CASH FLOWS
Year ended December 31, 2024 | 6 | | NOTES TO THE FINANCIAL STATEMENTS | 7 -
10 | | SUPPLEMENTARY SCHEDULES | | | SCHEDULE I: COMPUTATION OF NET CAPITAL
PURSUANT TO RULE 15c3-1 as of December 31, 2024 | 11 | | SCHEDULE II: REPORT OF A BROKER-DEALER CLAIMING
EXEMPTION FROM SEC RULE15c3-3 | 12 | | SCHEDULE Ill: INFORMATION RELATING TO POSESSION
OR CONTROL REQUIREMENTS UNDER RULE 15C3-3 OF THE SEC | 12 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
REQUIRED BY SEC RULE 1 ?a-5 FOR A BROKER-DEALER CLAIMING AN
EXEMPTION FROM SEC RULE 15c3-3 | 13 | | COMPANY EXEMPTION REPORT | 14 | | | | {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, 2024, 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, 2024, 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 Ill, 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 11, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 and Schedule 111, 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~ C&~LLC\_ We have served as the Company's auditor since 2019. Dallas, Texas March 25, 2025 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2024 #### ASSETS | ASSETS
Cash
Restricted cash
Commissions receivable
Property and equipment, net
Other Assets | \$
266,826
25,000
23,764
0
10 | |------------------------------------------------------------------------------------------------------------|----------------------------------------------| | | \$
315,600 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES
Accounts payable
Commissions payable | \$
1,849
73,117
74,966 | | STOCKHOLDER'S EQUITY | | | Common stock (15 shares authorized, issued, and outstanding)
Retained earnings | 45,000
195,634 | | Total stockholder's equity | 240,634 | | | \$
315,600 | | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ### STATEMENT OF INCOME #### FOR THE YEAR ENDED DECEMBER 31, 2024 | REVENUES
Administrative fees
Management fees
Commissions | \$ 1,259,382
997,542
187,876 | |-------------------------------------------------------------------|------------------------------------| | Distribution Fees
Interest | 234,390
124,596 | | | 2,803,786 | | EXPENSES | | | Commissions | 2,212,336 | | Information Services | 53,569 | | Salaries and wages | 65,277 | | Clearing Charges | 99,250 | | Professional fees | 27,763 | | Regulatory fees | 18,590 | | Insurance expenses | 6,993 | | Office related expenses | 2,113 | | Tax expense | 7,993 | | Other expenses | 6,397 | | | 2,500,281 | | NET INCOME | \$
303,505 | 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, 2024 | | Common
Stock | | Retained
Earnings | | Total | | |------------------------------|-----------------|--------|----------------------|-----------|-------|-----------| | Balance at December 31, 2023 | \$ | 45,000 | \$ | 92,163 | \$ | 137,163 | | Dividends | | | | (200,034) | | (200,034) | | Net income | | | | 303,505 | | 303,505 | | Balance at December 31, 2024 | \$ | 45,000 | \$ | 195,634 | \$ | 240,634 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ #### STATEMENT OF CASH FLOWS #### FOR THE YEAR ENDED DECEMBER 31, 2024 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |---------------------------------------------------------|------------------------------------------------------------|----------|-----------| | Net income | | | \$303,505 | | Adjustments to reconcile net income to net cash | | | | | provided by operating activities: | | | | | | Add back item not affecting cash: | | | | | Depreciation | \$ | | | | Cash provided by (used in) changes in the following items: | | | | | Increase in commissions receivable | (5,547) | | | | Decrease in prepaid expenses | 1,020 | | | | Increase in other assets | (10) | | | | Decrease in accounts payable | (50,002) | | | | Increase in commissions payable | 73,117 | | | | Decrease in deferred clearing charge rebate | (15,000) | 3,578 | | | Net cash provided by operating activities | | 307,083 | | CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid | | | (200,034) | | NET DECREASE IN CASH | | | 107,049 | | CASH - BEGINNING OF YEAR | | | 159,777 | | CASH - END OF YEAR | | | \$266,826 | | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | CASH PAID DURING THE YEAR FOR: | | | | | | LOCAL INCOME TAXES | \$ 7,993 | | | | | | | The accompanying notes are an integral part of these financial statements. \$ INTEREST 6 {10}------------------------------------------------ ## 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}------------------------------------------------ ## 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, 2024, the Company paid \$7,993 of city income tax. The Company's federal income tax returns for December 31, 2021, 2022, and 2023 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}------------------------------------------------ ## 3. NET CAPITAL REQUIREMENTS (continued) As of December 31 , 2024, the Company had net capital of approximately \$240,624 and net capital requirements of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .31 to1. 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, 2024, management fees from EGI totaled \$997,542. ## 5. PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2024 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, 2024, the Company contributed \$952 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 Decemb\_er 31, 2024, 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}------------------------------------------------ #### 9. SEGMENT REPORTING The Accounting Standards Update (ASU) 2023-07 issued by the Financial Accounting Standards Board (FASS) introduced enhancements to segment reporting requirements for public entities, including brokerdealers. The update aimed to improve the transparency and usefulness of financial disclosures for investors and other stakeholders. ADU 203-07 disclosure requirements are effective for fiscal years starting after December 15, 2024. The chief operating decision maker is the President of the Company who has determined that no additional disclosures are required as the Company only has only reportable segment. {14}------------------------------------------------ ## AMERICAN HERITAGE SECURITIES, INC. SCHEDULE I COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 #### DECEMBER 31, 2024 | COMPUTATION OF NET CAPITAL: | Total stockholder's equity from statement of
financial condition | \$ 240,634 | |-------------------------------------------------------------------------------|---------------------------------------------------------------------|--------------------------| | | Less: Stockholder's equity not allowable for net capital | | | | Total stockholder's equity qualified for net capital | 240,634 | | | Total other deductions | (10) | | | Net capital before haircuts on security positions | 240,624 | | | Haircuts on securities pursuant to 15c3-1 | | | | Net capital | \$
240,624 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT:
Minimum net capital required | | \$
4,998 | | | Minimum dollar requirement | \$
5,000 | | | Net capital requirement | \$
5,000 | | | Excess net capital
Net capital
Less: Net capital requirement | \$
240,624
(5,000) | | | Total | \$
235,624 | | | Net capital less the greater of 10% of line 19 or 120% of line 12 | \$
233,127 | | AGGREGATE INDEBTEDNESS:
Aggregate indebtedness liabilities | | \$
74,966 | | | Percent of aggregate indebtedness to net capital | 31 .15% | 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. {15}------------------------------------------------ ## AMERICAN HERITAGE SECURITIES, **INC.** SCHEDULE II & Ill SUPPLEMENTARY FINANCIAL INFORMATION #### YEAR ENDED DECEMBER 31, 2024 #### 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." See the Report of Independent Registered Public Accounting Firm. {16}------------------------------------------------ ![](_page_16_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. § 240.15c3-3(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. § 240.17a-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. § 240.15c2-4; (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. § 240.15c3-3), 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. § 240.15c2-4; (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. § 240.15c3-3) 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. § 240.15c3-3 and 17 C.F.R. § 240.17a-5. s~ ~~LU3 Dallas, Texas March 25, 2025 325 North Saint Paul Street Suite 3100 Dallas, Texas 75201 214.738.1998 {17}------------------------------------------------ #### **American Heritage Securities,** Inc. **Exemption Report** American Heritage Securities, Inc. (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 claimed an exemption from 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3(k)(2)(ii). - (2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k) throughout the most recent fiscal year without exception. - (3) The Company is considered "Non-Covered Firm" exempt from 17 C.F.R. §240.15c3-3 and is filing an Exemption Report relying on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. The Company limits its business activities exclusively to: (1) acting as a mutual fund retailer (2) acting as a broker or dealer selling variable life insurance or annuities. - (4) 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 Rule 15c2-4; (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. I, Jeffrey Thomas, swear (or affirm) that, to my best knowledge and belief, this exemption report is true and correct. ~s, siden Date of Report: March 25, 2025 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.