# AMERIVET SECURITIES, INC. X-17A-5 (2021-03-02) — Broker-dealer annual report - Company: AMERIVET SECURITIES, INC. - Form: X-17A-5 - Filed: 2021-03-02 - Period: 2020-12-31 - Accession: 0000912678-21-000001 - CIK: 912678 - File #: 8-46478 - Material weakness: No - Auditor: Alvarez & Associates, Inc. - Auditor location: Northridge, CA - Contact: Florian Jaze - Phone: 212-803-5050 - Website: micpas.com - Signed by: Florian Jaze (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/912678/000091267821000001/footnotesPS.pdf --- {0}------------------------------------------------ # AmeriVet Securities, Inc Financial Statement December 31, 2020 {1}------------------------------------------------ # AmeriVet Securities, Inc Index December 31, 2020 | Page(s) | | |---------------------------------------------------------|--| | Report of Independent Registered Public Accounting Firm | | | Financial Statements | | | Statement of Financial Condition | | | Notes to Financial Statements | | {2}------------------------------------------------ UNITEDSTATES | THE SECURITIES ANDEXCHANGE COMMISSION Washington, D.C. 20549 # meriVet Securities, IncANNUAL AUDITED REPORT FORM X-17A-5 PART III ... | | OMB APPROVAL | | |---------------------------|--------------|---------------------------| | OMB Number: | | 3235-0123 | | Expires: October 31, 2023 | | | | Estimated average burden | | | | | | hours per response 12.00 | | | | | | SEC FILE NUMBER | |-----------------| | 8-46478 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | report for the period beginning 01/01/20 | AND ENDING 12/31/20 | | |------------------------------------------|---------------------|--| MM/DD/Y Y A. REGISTRANT IDENTIFICATION MM/DD/YY 10036 (Zip Code) NAME OF BROKER-DEALER: AmeriVet Securities. Inchfica ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) OFFICIAL USE ONLY FIRM I.D. NO. # 1155 Avenue of the Americas, 14th floor (No. and Street) NY (State) New York opplicable ha wember. (City) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORTED Florian Jaze (Area Code - Telephone Number) # B. ACCOUNTANT IDENTIFICATION INDEDENDENT DUDI IC ACCOUNTANT whose opinion is contained in this Reports | | (Name - if individual, state last, first, middle name) | | | |-----------------------------|---------------------------------------------------------------------|---------|------------| | | 9221 Corbin Avenu Northridge | on GA | 91324 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | Certified Public Accountant | | | | | Public Accountant | | | | | | | | | | | Accountant not resident in United States or any of its possessions. | | | \*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2) > Potential 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 OMB control number. {3}------------------------------------------------ ## OATH OR AFFIRMATION | Florian Jaze
I, | , swear (or affirm) that, to the best of | |----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | AmeriVet Securities, lnc | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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as | | | ffirm ) that | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | RiCHARD M ANDREW
}.IOTABY PUBLIC'STATE OF NEW YOBK | d:"t | | No, 01 AN61 63244 | | | Oualitied in New York CountY | Chief Financial Officer | | My Commission Expires 03-19-20231 | Title | | | | | Notary | | | This report ** contains (check all applicable boxes): | | | lJ tul Facing Page. | | | E tUl 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 Changes in Financial Condition. | | | E
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | tr
(0 Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital. | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule l5c3-3. | | | E
(i) Information Relating to the Possession or Control Requirements Under Rule l5c3-3. | | | ! | O A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l5c3- 1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | !
consolidation. | ttl A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | E ttl An oath or Affirmation. | | | Ll t*l A copy of the SIPC Supplemental Report. | | | | E trl A report describing any material inadequacies found to exist or found to have existed since the date ofthe previous audit. | | **For conditions of confidential treqtment of certain portions of thisfiling, see section 240.17a-5(e)(3). | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Those Charged with Governance and the Stockholders of Amerivet Securities, Inc .: ## Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Amerivet Securities, Inc. (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. ## Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement 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 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 statement is 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 statement, 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. We have served as the Company's auditor since 2018. Northridge, California February 18, 2021 > 9221 Corbin Avenue Suite 165 Northridge, California 91324 800.848.0008 201 能 www.AAICPAs.com Chicago, Dallas, Los Angeles, New York, San Francisco, Seattle {5}------------------------------------------------ # AmeriVet Securities, Inc Statement of Financial Condition December 31, 2020 | Cash | കു | 858,595 | |-------------------------------------------------------------|----|-------------| | Receivables from clearing broker | | 5,627,449 | | Loans receivable from related party | | 34,793 | | Deposit with clearing broker | | 500,000 | | Accounts receivable | | 1,585,114 | | Prepaid expenses | | 139,264 | | Total assets | ಕಿ | 8,745,215 | | Liabilities and stockholders' equity | | | | Liabilities | | | | Accounts payable and accrued expenses | ಕೊ | 1,031,324 | | Commissions payable | | 252,421 | | PPP loan payable | | 208,800 | | Liabilities subordinated to the claims of general creditors | | 9,000,000 | | Total liabilities | | 10,492,545 | | | | | | Stockholders' equity | | | | Common stock, \$0.01 par value; 5,000 shares authorized, | | | | 1,000 issued and outstanding | | 10 | | Additional paid-in-capital | | 1,264,563 | | Accumumulated deficit | | (3,011,903) | | Stockholders' equity | | (1,747,330) | | Total liabilities and stockholders' equity | \$ | 8,745,215 | {6}------------------------------------------------ ## 1. Organization and Nature of Business AmeriVet Securities, Inc. (the "Company"), was incorporated in the state of California on August 6, 1993. The Company is a registered broker-dealer subject to the rules and regulations of the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). AmeriVet is certified as a Service-Disabled Veteran Owned Business ("SDVOB") as well as Minority Business Enterprise ("MBE"). ## 2. Summary of Significant Accounting Policies ## Cash The Company maintains several bank accounts at financial institutions. These accounts are insured either by the Federal Deposit Insurance Commission ("FDIC"), up to \$250,000, or the Securities Investor Protection Corporation ("SIPC"), up to \$500,000. At times during the year ended December 31, 2020, cash balances held in financial institutions were in excess of the FDIC and SIPC's insured limits. The Company has not experienced any losses in such accounts, and management believes that it has placed its cash on deposit with financial institutions which are financially stable. ## Use of estimates The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires the Company's management to make estimates and assumptions. These estimates and assumptions affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. ### Due from clearing broker Due from clearing broker represents commissions, interest receivable, and deposits with the Company's clearing broker. ### Expense sharing agreement The Company shares its office space with (an affiliate) under the terms of an expense sharing agreement, which is cancelable with reasonable notice. This agreement is not subject to ASC 842. The Company records shared expenses monthly as billed #### Revenue recognition The Company recognizes revenue when the following criteria are met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred; 3) an established sales price has been set with the customer; 4) collection of the sale revenue from the customer is reasonably assured; and 5) no contingencies exist. Delivery is considered to have occurred when the customer assumes the risk and rewards of ownership. The Company estimates and records provisions for customer quantity rebates and sales returns and allowances as a reduction in revenue in the same period the related revenue is recognized, based upon its historical experience. ### Underwriting income Underwriting income, net includes underwriting income, net of syndicate expenses, arising from debt and equity securities offerings in which the Company acts as an underwriter or agent. The Company recognizes revenue when the services for the transaction are determined to be completed. Underwriting income is initially recorded on the deal commences and then adjusted retrospectively for any differences upon completion of the deal, which generally occurs within three months after the date that the deal commences. {7}------------------------------------------------ For the year ended December 31, 2020, the company had approximately \$897,000 in underwriting income not recognized due to contingencies. ## Commission income The Company records transactions in securities and commission revenue and expense on a trade date basis. As an introducing broker-dealer, the Company earns commissions from institutional transactions. ## Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the asset or liability is expected to be realized or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company regularly assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related financial statement implications. Unrecognized tax benefits are reported using the two-step approach under which tax effects of a position are recognized only if it is "more-likely-than-not" to be sustained and the amount of the tax benefit recognized is equal to the largest tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement of the tax position. Determining the appropriate level of unrecognized tax benefits requires the Company to exercise judgement regarding the uncertain application of tax law. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. The Company includes interest and penalties related to its uncertain tax positions as a part of income tax expense, if any. #### 3. Related Parties The Company maintains an administrative services agreement with one of its shareholders whereby the shareholder is to provide certain services such as accounting, technology, operation, compliance, human resources, and other services. ### Rent The Company entered into a monthly rent agreement for its office spaces (the "Agreement") located at 1155 Avenue of the Americas, New York, NY and 30S. Wacker Dr, Chicago, Illinois 60606. The Company shares its office space with an affiliate under the terms of a lease agreement for which non-cancelable portion is less than one year. This agreement is not subject to ASC 842 under the short-term exemption. As a result, the adoption of ASC 842 had no effect on the Company's financial statements for the year ended December 31, 2020. ### Loans receivable The Company accounts for loans to employees in accordance with ASC 310, "Receivables." The loans are recorded by the Company at cost when the cash is loaned to the employees. These loans are non-interest bearing. {8}------------------------------------------------ #### 4. Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company's ownership may result in a limitation on the amount of net operating loss carryforwards which can be used in future years. A 100% valuation allowance has been placed against this deferred tax asset since the company has determined its more likely than not, that the asset will not be utilized. #### 5. Recently Issued Accounting Pronouncements The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are: For the year ending December 31, 2020, various ASUs issued by the FASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year then ended. The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole. #### 6. Liabilities Subordinated to the Claims of General Creditors As of December 31, 2020, the Company has six subordinated loans in the aggregated amount of \$9,000,000. The agreements were approved by FINRA and are part of the computation of net capital under SEC Uniform Net Capital Rule 15C3-1. The following table present the outstanding amount as of December 31, 2020. | Effective date | Amount | Maturity | Rate | |---------------------|-----------|------------------|------| | July 28, 2020
ક્ | 1,000,000 | August 1, 2023 | 5% | | January 29, 2020 | 1.000,000 | February 1, 2021 | 5% | | October 22, 2019 | 500.000 | August 7, 2021 | 5% | | October 22. 2018 | 1.000.000 | October 22, 2021 | 5% | | October 22, 2018 | 2.000.000 | October 22, 2021 | 5% | | October 22, 2018 | 500.000 | December 1, 2021 | 5% | | October 22, 2018 | 2.000.000 | October 24, 2022 | 5% | | October 22, 2018 | 1,000,000 | October 23, 2023 | 5% | | | 9.000.000 | | | {9}------------------------------------------------ #### 7. Covid-19 The worldwide outbreak of coronavirus (COVID-19) may lead to an adverse impact on the financial markets and the overall economy. In the event such an impact was to occur and last for a sustained period of time, the operations and financial performance of the Company may be adversely affected. At this point, however, the severity of such an event is highly uncertain and cannot be predicted. #### 8. Net Capital Requirement The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), 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 15c3-1 also provides that equity capital may not be withdrawn, or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. Net capital and aggregate indebtedness change day to day, but on December 31, 2020, the Company had net capital of \$5,995,224 which was \$5,895,224 above its required net capital of \$100,000. #### g. Loan Payable - PPP The Company has incurred indebtedness under the CARES Act which will be subject to review, may not be forgivable in whole or in part, and may eventually have to be repaid, potentially with interest, fines, and/or other penalties. The Company signed the loan documents under the SBA Paycheck Protection Program of the CARES Act and received the loan proceeds of \$208,800 on April 27, 2020. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. Under the terms of the CARES Act and the corresponding promissory note, the use of the proceeds of the loan is restricted to payroll costs (as defined in the CARES Act), covered rent, covered utility payments and certain other expenditures that, while permitted, would not result in forgiveness of a corresponding portion of the loan. Following recent amendments to the Paycheck Protection Program, after an eight- or twenty-fourweek period starting with the disbursement of the respective loan proceeds, The Company may apply for forgiveness of some or all of their loans, with the amount which may be forgiven equal to the sum of eligible payroll costs, covered rent, and covered utility payments, in each case incurred during the eight- or twenty-four-week period following the date of first disbursement. Certain reductions in the Company payroll costs or full-time equivalent employees (when compared against the applicable measurement period) may reduce the amount of their loan eligible for forgiveness. The Company plans on filing for the forgiveness of this loan. And if not forgiven, the balance of this loan is due after the one-year deferral period in equal monthly installments of approximately \$8,700, including interest at 1%, and matures in two years during April 2022. {10}------------------------------------------------ #### 10. Guarantees FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of indebtedness of others. The Company has issued no guarantees at December 31, 2020, or during the year then ended. #### 11. Subsequent Events The Company has evaluated events and transactions subsequent to the statement of financial condition date for items requiring recording or disclosure in the financial statements. The evaluation was performed through the date the financial statements were available to be issued. Based upon this review, the Company has determined that there were no events or transactions which took place that would have a material impact on its financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.