# METRIC FINANCIAL, LLC X-17A-5 (2023-03-31) — Broker-dealer annual report
- Company: METRIC FINANCIAL, LLC
- Form: X-17A-5
- Filed: 2023-03-31
- Period: 2022-12-31
- Accession: 0000915224-23-000001
- CIK: 915224
- File #: 8-46684
- Type: Broker-dealer
- Material weakness: No
- Auditor: David B Lundgren & Co
- Auditor location: Olathe, KS
- Contact: Jack Grella
- Phone: 203-449-2159
- Email: jack@metric-financial.com
- Website: metric-financial.com
- Signed by: Jack Grella (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/915224/000091522423000001/auditfinal.pdf
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# UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12
# ANNUAL REPORTS FORM X-17A-5 PART III
| SEC FILE NUMBER |
|-----------------|
| |
8-46684
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 01/01/2022\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
MM/DD/YY
MM/DD/YY
A. REGISTRANT IDENTIFICATION
# NAME OF FIRM: METRIC FINANCIAL, LLC
TYPE OF REGISTRANT (check all applicable boxes):
E Broker-dealer O Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
| | WEWORK C/O METRIC FINANCIAL 725 PONCE DE LEON AVE, NE | | |
|--|-------------------------------------------------------|--|--|
|--|-------------------------------------------------------|--|--|
| | (No. and Street) | | |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------------------------------------------|---------------------------|
| ATLANTA | GFORGIA | | 30306 |
| (City) | (State) | | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | |
| JACK GRELLA | (203) 449-2159 | | jack@metric-financial.com |
| (Name) | (Area Code - Telephone Number) | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
David Lundgren & Company
(Name - if individual, state last, first, and middle name) | | | |
| 505 N. Mur-Len Road | Olathe | KANSAS 66062 | |
| (Address) | (City) | (State) | (Zip Code) |
| 01/05/2015 | | 6075 | |
| (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | |
| | FOR OFFICIAL USE ONLY | | |
| * Claims for exemption from the requirement that the annual reports of an independent public | austant much be aunnated by a catamant of facts and creating on as the price of the avomning San 17 | | |
accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 7 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 OMB control number.
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#### OATH OR AFFIRMATION
| JACK GRELLA | swear (or affirm) that, to the best of my knowledge and belief, the | |
|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------|
| financial report pertaining to the firm of METRIC FINANCIAL, LLC. | | as of |
| 12/31 | 2 022 | |
| | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | |
| as that of a customer. | | |
Notary Public
Signature:
Title: JACK GRELLA
- This filing\*\* contains (check all applicable boxes):
- (a) Statement of financial condition.
- (b) Notes to consolidated statement of financial condition.
- 國 (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.
- □ {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.
- [ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- 曰 =(j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
- □ (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.
- 國 (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.
- | | Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- (t) Independent public accountant's report based on an examination of the statement of financial condition.
- (u) Independent public accountant's report based on an examination of the 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 240.17a-12, as applicable.
- □ (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).
- □ (z) Other:
- \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable.
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DAVID B. LUNDGREN, MBA, CPA
Telephone (913) 782-9530 Facsimile (913) 782-9564
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Members of Metric Financial LLC
#### Opinion on the Financial Statement
We have audited the accompanying statement of financial condition of Metric Financial LLC as of December 31, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Metric Financial LLC as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
#### Basis for Opinion
This financial statement is the responsibility of Metric Financial LLC's management. Our responsibility is to express an opinion on Metric 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 Metric Financial LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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 Metric Financial LLC's auditor since 2020.
Olathe, Kansas March 29, 2023
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## **METRIC FINANCIAL LLC FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES**
**For the Year Ended December 31, 2022**
**(With Report of Independent Registered Public Accounting Firm Thereon)**
**(These financial statements and schedule(s) should be deemed confidential pursuant to subparagraph (e)(3) of SEC Rule 17a-5.)**
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#### **METRIC FINANCIAL, LLC Table of Contents For the Year Ended December 31, 2022**
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 1 | | |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| FINANCIAL STATEMENTS | | |
| Statement of Financial Condition 2
Statement of Income 3
Statement of Changes in Member's Equity 4
Statement of Cash Flows 5 | | |
| NOTES TO THE FINANCIAL STATEMENTS 6 | | |
| SUPPLEMENTAL SCHEDULES | | |
| Schedule I: Computation of Net Capital under Rule 15c3-1 of the Securities and
Exchange Act of 1934 11 | | |
| Schedule II: Computation for Determination of Reserve Requirements for Brokers
and Dealers Pursuant to Rule 15c3-3 under the Securities and Exchange
Act | | |
| of 1934 12 | | |
| Schedule III: Information Relating to the Possession or Control Requirements under the
Securities and Exchange Commission Rule 15c3-3……………………………………13 | | |
| REPORTS ON BROKER DEALER EXEMPTION…………………….………………
14 | | |
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### **METRIC FINANCIAL, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022**
| ASSETS
Cash
Accounts Receivable
Prepaid
deposits
and
expenses | \$
5,901,792
192,800
5,284 |
|------------------------------------------------------------------------------------------------------------------|-------------------------------------|
| TOTAL
ASSETS | \$
6,099,876 |
| LIABILITIES AND
MEMBER'S
EQUITY
LIABILITIES
Accounts Payable, Accrued Expenses and Other Liabilities | \$
766,079 |
| TOTAL
LIABILITIES | 766,079_____ |
| MEMBER'S
EQUITY | 5,333,797 |
| TOTAL
LIABILITIES
AND
MEMBER'S
EQUITY | \$
6,099,876 |
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### **METRIC FINANCIAL, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2022**
| REVENUE | |
|-------------------------------------|-----------------|
| Managing Dealer Revenue | \$
9,233,426 |
| Commission Share | 1,141,600 |
| Interest Income | 21,895 |
| Total Revenue | 10,396,921 |
| EXPENSES | |
| Compensation and Payroll Expenses | \$
7,382,941 |
| Professional Service Fees | 131,009 |
| Technology, Data and Communications | 193,918 |
| Occupancy and Utilities | 11,957 |
| Other Expenses | (40,492) |
| Total Expenses | \$
7,679,333 |
| NET INCOME | \$
2,717,588 |
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#### **METRIC FINANCIAL, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2022**
| BALANCE
AT
DECEMBER
30,
2021 | \$
2,981,982 |
|------------------------------------------|-----------------|
| Distribution | (365,973) |
| Opening Balance Equity | 200 |
| Net
Income | 2,717,588 |
| | |
| BALANCE
AT
DECEMBER
31,
2022 | \$
5,333,797 |
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### **METRIC FINANCIAL, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2022**
| CASH
FLOWS
FROM
OPERATING
ACTIVITIES | |
|-------------------------------------------------------------------------------------------------------------------|-----------------|
| Net
Income | \$
2,717,588 |
| Adjustments
to
reconcile
net
income
to
net
cash
provided
by
operating
activities | |
| Accounts
receivables | 318,766 |
| Deposits and Prepaids | 17,359 |
| Accounts
payable,
accrued
expenses
and
other
liabilities | 409,597 |
| Net
cash
provided
by
operating
activities | 3,463,310 |
| Adjustments to reconcile net income to net cash provided by financing
Activities | |
| Opening Balance Equity | 200 |
| Distributions | (365,973) |
| Nat Cash provided by financing activities | (365,773) |
| | |
| INCREASE IN CASH | 3,097,537 |
| CASH
AND
CASH
EQUIVALENTS
AT
BEGINNING
OF
YEAR | 2,804,255 |
| CASH
BALANCE
AT
END
OF
YEAR | \$5,901,792 |
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#### **1. Organization and Nature of Business**
Metric Financial, Inc. (the Company) is a broker dealer registered with the Securities and Exchange (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company provides the ability to transact from outside sources in order to distribute investment products and assist in the free flow of securities in the open market. The Company does not hold funds or securities for the accounts of its customers.
### **2. Significant Accounting and Reporting Policies Basis of Presentation**
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (GAAP) as determined by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The Company believes that the disclosures in these financial statements are adequate and not misleading. In the opinion of management, the financial statements contain all adjustments necessary for a fair presentation of the Company's financial position as of December 31, 2022, and is not necessarily indicative of the results for any future period.
#### **Use of Estimates**
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
#### **Cash and Cash Equivalents**
The Company maintains its cash in bank deposit account(s) which, at times, may exceed federally insured limits. The Company monitors the bank account(s) and does not expect to incur any losses from such account(s). The Company has defined cash and cash equivalents as highly liquid investments with original maturities of less than ninety days that are not held-for-sale in the ordinary course of business. The recorded value of such instruments approximates their fair value. On December 31, 2022, the Company had no cash equivalents.
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#### **METRIC FINANCIAL, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022**
#### **Revenue**
The Company has adopted Financial Accounting Standards Board (FASB) Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09) and the FASB's Accounting Standards Update 2016-08, Principal vs. Agent Considerations (ASU 2016-09). The income reported on the Statement of Income is comprised of private placement revenue and other service fees.
The Company considers revenue to be generated when the Company satisfies a performance obligation.
Additionally, the guidance requires the Company adhere to the following model: a) identify the contract with the customer, b) identify the performance obligations in the contract, c) determine the transaction price, d) allocate the transaction price to the performance obligations in the contract, and e) recognize revenue when (or as) the Company satisfies a performance obligation.
Revenues from fees arising from private securities placement in which the Company acts an agent are recorded pursuant to the terms of the Company's agreements with the respective offering parties. Typically, fees are recorded based upon the capital commitments obtained as of the closing for a respective placement when all performance obligations to the client have been completed. Revenues from fees arising from mergers, acquisitions, and other corporate reorganization transactions are recorded as success fees based on the achievement of performance obligations, agreed upon with the client, such as closing of the transaction.
### **Accounts Receivable**
On December 31, 2022, accounts receivable consisted of current billings that were collected in January 2023. Accounts receivables are stated at the amount management expects to collect from outstanding accounts. Management provides for probable uncollectable accounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Accounts that are unpaid after management has used reasonable collections efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. As of December 31, 2022, no allowance for uncollectable accounts was deemed necessary.
#### **Fair Value Measurements**
Fair Value - FASB ASC 820, Fair Value Measurement and Application, defines fair value as the price that would be received from sales of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Statement establishes a three-level hierarchy of inputs used to measure fair value.
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#### **METRIC FINANCIAL, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022**
Level 1) Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2) Inputs other than the quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3) Inputs are unobservable inputs such as management's assumption of the default rate among mortgages of a mortgage-backed security.
The Standards provide guidance on applying fair value to alternative investments, such as hedge and private equity funds. It also enhances disclosure requirements around those types of instruments. Fair value measurements are based not on entry prices, but rather on exit prices - the price that would be received to sell the asset or paid to the transfer of the liability. While entry and exit prices differ conceptually, in many cases, they may be identical and can be considered to represent fair value of the asset or liability at initial recognition.
#### **Income Taxes**
The Company is currently a limited liability company. In 2022, The broker dealer changed the state in which the company was formed from Massachusetts to Georgia. At the same time, the broker/dealer corporation merged into Metric Financial, LLC and the broker/dealer kept its tax ID number. There was no change in the underlying ownership, no change in control, and no change in tax ID.
#### **Coronavirus**
In the second year of the COVID-19 coronavirus pandemic, the adverse impacts to global commercial activity has continued to contribute to significant volatility in the financial markets. Government imposed responses and other related recovery measures intended to control the spread of the disease have created a variety of unintended challenges and risks. As such, economic uncertainty, changes in consumer demand, disrupted supply chains, staffing shortages, and hybrid working patterns all continue to have a negative impact on many industries. The continued development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the COVID-19 coronavirus. Nevertheless, the COVID-19 coronavirus presents material uncertainty and risk with respect to the Company, its performance, and its financial results. At present, the extent to which the coronavirus may impact the Company's financial condition or results of operations in future periods is uncertain.
#### **3. Related Parties**
Metric Financial, LLC. is solely owned by entities, by Bilal Malik of Malik Law Group (MLG) which has entered into an expense sharing agreement with the Company. Since the start of the Coronavirus pandemic, MLG has forgiven the Company of any expenses due.
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#### **METRIC FINANCIAL, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022**
### **4. Net Capital Requirements**
The Company is subject to the SEC's Uniform Net Capital Rule (SEC Rule 15c3-1) of the Securities Exchange Act of 1934 which requires maintenance of minimum net capital. Under the Rule, the Company is required to maintain minimum net capital, as defined, equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness. The ratio of aggregated indebtedness to net capital cannot exceed 1500% or 15:1.
On December 31, 2022, the Company had net capital of \$5,135,713 which was \$5,084,641 in excess of its required minimum net capital of \$51,072. The ratio of aggregate indebtedness to net capital was 15%.
#### **5. Operating Lease Obligations**
The Company is required to record a right-of-use asset and a corresponding lease liability on the balance sheet for all leases with terms greater than twelve months. All such leases are to be classified as either finance or operating. The Company has no lease obligations that required recording or disclosures in the December 31, 2022, financial statements.
#### **6. Subordinated Liabilities**
The Company had no liabilities subordinated to the claims of general creditors as of the beginning of the year, end of the year, and during the year ended December 31, 2022.
#### **7. Subsequent Events**
Management has evaluated all events or transactions that occurred after December 31, 2022, through the date of the issued financial statements. During this period, there were no material recognizable subsequent events that required recording or disclosures in the December 31, 2022, financial statements.
#### **8. Commitments, Contingencies, and Guarantees**
The Company does not have any commitments, contingencies, or guarantees, including arbitration or other litigation claims that may result in a loss or a future obligation.
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**Supplemental Schedules**
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#### **METRIC FINANCIAL, LLC**
#### **Schedule I – Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Act of 1934**
**December 31, 2022**
| COMPUTATION
OF
NET
CAPITAL | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
| TOTAL
MEMBER'S
EQUITY | \$
5,333,797 |
| LESS: | |
| Non-allowable
assets | |
| Prepaid
deposits
and
expenses | (198,084) |
| NET
CAPITAL | \$
5,135,713 |
| Minimum
dollar
net
capital
requirement
of
reporting
broker-dealer
(greater
of
minimum
net
capital
requirement
of
\$5,000
or 6 2/3%
of
aggregate
indebtedness)\$ | 51,072 |
| EXCESS
NET
CAPITAL | \$
5,084,641 |
| AGGREGATE
INDEBTEDNESS | \$
766,079 |
| MINIMUM NET
CAPITAL
BASED
ON
AGGREGATE
INDEBTEDNESS | \$
51,072 |
| PERCENTAGE
OF
NET
CAPITAL
TO
AGGREGATE
INDEBTEDNESS | 15% |
There are no material differences between the preceding computation and the Company's corresponding unaudited Form X-17A-5 as of December 31, 2022, as filed on January 26, 2023.
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#### **METRIC FINANCIAL, LLC**
#### **Schedule II – Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities and Exchange Act of 1934**
#### **December 31, 2022**
The company does not claim an exemption from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, did not carry accounts of customers of or for customers, and 3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the year ending December 31, 2022, without exception.
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#### **METRIC FINANCIAL, LLC**
#### **Schedule III – Information Relating to the Possession or Control Requirements under the Securities and Exchange Commission Rule 15c3-3**
#### **December 31, 2022**
The company does not claim an exemption from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, 1) did not carry accounts of customers of or for customers, and 3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the year ending December 31, 2022, without exception.
{17}------------------------------------------------
David B. Lundgren, mba, cpa
Tei ephone (913) 782-9530 FACSIMILE (913) 782-9564
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Members of Metric Financial LLC
We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) Metric Financial LLC (the Company) did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to private placement capital raising services. In addition, the Company did not directly receive, hold, or otherwise owe funds or securities for or to customers, other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.
Metric Financial LLC's management is responsible for compliance with the exemption provisions and its statements.
Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Metric Financial LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions.
Olathe, Kansas March 29, 2023
{18}------------------------------------------------
# **METRIC FINANCIAL, LLC.**
# **Exemption Report**
Metric Financial LLC (the "Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.l 7a-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)(l) and (4). To the best of its knowledge and belief, the Company states the following:
- (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and
- (2) The Company is filing this Exemption Report relying on Footnote 74 of SEC Release No. 34-70073 and as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Company has no obligation under SEC Rule 15c3-3 because business activities are limited exclusively to private placements of securities and corporate finance services including mergers and acquisitions, recapitalizations, valuations, fairness opinions, and business and strategic advice and the Company does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; does not carry accounts of or for customers; and does not carry PAB accounts, and
- (3) The Company had no exceptions to the provision identified above throughout the most recent fiscal year.
I, Jack Grella, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct.
By:
Title: CEO
March 29, 2023
{19}------------------------------------------------
DAVID B. LUNDGREN, MBA, CPA
Telephone (913) 782-9530 FACSIMILE (913) 782-9564
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES
Board of Directors of Metric Financial LLC
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 (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2022. Management of Metric Financial LLC (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, 2022. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. 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 sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency 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 records entries, noting no differences;
- 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2022 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2022, 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; and
- 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, 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 AICPA 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, 2022. Accordingly, we 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.
Olathe, Kansas March 29, 2023
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