# JAMES RIVER SECURITIES CORP. X-17A-5 (2021-02-23) — Broker-dealer annual report

- Company: JAMES RIVER SECURITIES CORP.
- Form: X-17A-5
- Filed: 2021-02-23
- Period: 2020-12-31
- Accession: 0000944670-21-000001
- CIK: 944670
- File #: 8-48270
- Material weakness: No
- Auditor: Keiter
- Auditor location: Glen Allen, VA
- Contact: Laura McGrath
- Phone: 8045784500
- Signed by: Laura McGrath (President)

Original filing: https://www.sec.gov/Archives/edgar/data/944670/000094467021000001/JRSCFS123120SEC1.pdf

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| UNITEDSTATES<br>SECURITIES AND EXCHANGE COMMISSION                        | OMB APPROVAL<br>OMB Number:<br>3235-0123              |
|---------------------------------------------------------------------------|-------------------------------------------------------|
| Wushington, D.C. 20549                                                    | Expires: October 31, 2023                             |
|                                                                           | Estimated average burden<br>Rours per response  12.00 |
| ANNUAL AUDITED REPORT                                                     |                                                       |
| FORM X-17A-5                                                              | SEC FILE NUMBER                                       |
| PART IN                                                                   | 8-                                                    |
| FACING PAGE                                                               |                                                       |
| Information Required of Brokers and Dealers Pursuant to Section 17 of the |                                                       |
| Securities Exchange Act of 1934 and Role 17x-5 Thereunder                 |                                                       |
| 01<br>REPORT FOR THE PERIOD BEGINNING                                     |                                                       |
| AND ENDING<br>MMDDIYY                                                     | 2/31/20<br>MM DDAY                                    |
|                                                                           |                                                       |
| A. REGISTRANT IDENTIFICATION                                              |                                                       |
| NAME OF BROKER-DEALER:                                                    | OFFICIAL USE ONL                                      |
| Kiver Securits Corp                                                       |                                                       |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)         | FIRM LD. NO.                                          |
| Broad S<br>Ral                                                            |                                                       |
| (No. noil Streel)                                                         |                                                       |
| VA                                                                        | 3105                                                  |
| (CITY)<br>(31610)                                                         | (Zip Code)                                            |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT   |                                                       |
|                                                                           |                                                       |
|                                                                           | (Arca Cude - Telephone Number)                        |
| B. ACCOUNTANT IDENTIFICATION                                              |                                                       |
| INDEPENDENT PUBLIC ACCOUNTANT whase opinion is cantained in this Report*  |                                                       |
|                                                                           |                                                       |
| Ke, Fer                                                                   |                                                       |
| (Name - If radivision), state last, first, miche nume)<br>THE ELA         |                                                       |
| 13/14                                                                     |                                                       |
| (Ciry)<br>Address)                                                        | (State)<br>(Zip Cade)                                 |
| CHECK ONE:                                                                |                                                       |
| Certified Public Accounfant                                               |                                                       |
|                                                                           |                                                       |
| Public Accountant                                                         |                                                       |
| Accountant not resident in United States or any of its possessions.       |                                                       |
| FOR OFFICIAL USE ONLY                                                     |                                                       |
|                                                                           |                                                       |
|                                                                           |                                                       |
|                                                                           |                                                       |

"Clauns for exemplion from the reguirement that the annual report be covered by the opinion of an independent public accoundant must be supported by a statement of facts and circumstances relies on us the exerior 200 . See Section 240. 120-24(e) (e) 2

SEC 1410 (11-05)

Potential parsons who artists form are notrequired to respond
information contained in this form are notrequired to responsible to responsible to responsible in

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# OATH OR AFFIRMATION

aura Mr Grath swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules perlaining to the firm of James Rever Securities Coro December NE - 31 20 30 are toue and correct. I fusther swear (or affarm) that neither the company nor any partner, principel officer or director has any proprietary interest in any aconunt classified solely as that of a customer, except as follows: Signature 110 Mary Lee Muse Tille simigring to this wirema Reg. # 7111855 Com. Exp. Feb. 28, 2022. Nolary Public This report \*\* contains (check all upplicable boxes): U Ja) Facing Page. U (6) Statement of Financial Conditios (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. (c) Statement of Changes in Stockholders' Equily or Partners' or Sole Proprietors" Capital. (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. (g) Computation of Net Capital. (h) Computation for Determination of Reserve Requirements Pursuant to Rute 1563-3. (i) Information Relating to the Possession or Control Requirements Under Rule 15c 3-3. (j) A Reconciliation, including appropriate explanation of the Computation of Nei Capiral Under Rule 1503-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15e3-3. (k) A Reconolliation between the sudied and unaudited Statements of Financial Condition with respect to mathods of consolidation. (1) An Dath or Affirmation. (m) A copy of the SIPC Supplemental Regort. (n) A report describing any material inadequecies (ound to existed since the date of the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filling, see section 240.17a-5(e)(3).

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**Financial Report**  December 31, 2020

SEC ID 8-48270 Filed pursuant to Rule 17a-5(e)(3) asa PUBLIC DOCUMENT

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| i<br>R<br>f I<br>nd<br>nd<br>R<br>st<br>ed<br>P<br>ub<br>llc<br>A<br>in<br>F<br>irm<br>rt<br>nt<br>nt<br>e<br>g<br>er<br>e<br>po<br>o<br>e<br>pe<br>e<br>cc<br>o<br>u<br>g                                                                                                                                                                            | 1<br>-2             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| l S<br>F<br>in<br>ia<br>ta<br>te<br>ts<br>m<br>en<br>a<br>nc                                                                                                                                                                                                                                                                                          |                     |
| S<br>t O<br>f F<br>in<br>ci<br>al<br>C<br>di<br>tio<br>ta<br>te<br>m<br>en<br>an<br>on<br>n<br>S<br>t O<br>f O<br>tio<br>ta<br>te<br>m<br>en<br>pe<br>ra<br>ns<br>S<br>t O<br>f C<br>S<br>hO<br>ha<br>In<br>ck<br>ld<br>s'<br>E<br>it<br>ta<br>te<br>to<br>et<br>m<br>en<br>ng<br>es<br>qu<br>y                                                       | 3<br>4<br>5         |
| S<br>t O<br>f C<br>h<br>F<br>lo<br>ta<br>te<br>m<br>en<br>as<br>w<br>s                                                                                                                                                                                                                                                                                | 6                   |
| N<br>T<br>Fi<br>i<br>al<br>S<br>ot<br>ta<br>te<br>ts<br>es<br>o<br>na<br>nc<br>m<br>en                                                                                                                                                                                                                                                                | 7<br>-9             |
| S<br>nf<br>pl<br>I<br>io<br>nt<br>at<br>up<br>e<br>m<br>e<br>a<br>ry<br>o<br>rm<br>n                                                                                                                                                                                                                                                                  |                     |
| S<br>C<br>O<br>f N<br>C<br>ch<br>ed<br>ul<br>I -<br>tio<br>pi<br>l U<br>nd<br>S<br>EC<br>R<br>ul<br>15<br>c3<br>-1<br>nd<br>ta<br>et<br>ta<br>e<br>om<br>pu<br>n<br>a<br>er<br>e<br>a<br>S<br>t P<br>R<br>ul<br>S<br>(d<br>)<br>(4<br>)<br>ta<br>te<br>ut<br>t t<br>17<br>m<br>en<br>su<br>an<br>o<br>e<br>a-                                         | 10                  |
| II<br>f R<br>S<br>ch<br>ed<br>ul<br>Ex<br>io<br>P<br>vi<br>si<br>R<br>ui<br>P<br>pt<br>ts<br>t t<br>es<br>er<br>ve<br>e<br>em<br>n<br>ro<br>on<br>o<br>eq<br>re<br>m<br>en<br>ur<br>su<br>an<br>o<br>-<br>15<br>c3<br>-3<br>19<br>34<br>R<br>ul<br>f t<br>he<br>S<br>iti<br>E<br>ha<br>A<br>f<br>ct<br>e<br>o<br>ec<br>ur<br>es<br>xc<br>ng<br>e<br>o | 11                  |
| i<br>Ex<br>R<br>pt<br>rt<br>em<br>o<br>n<br>e<br>po                                                                                                                                                                                                                                                                                                   |                     |
| R<br>f I<br>nd<br>de<br>R<br>is<br>d<br>P<br>ub<br>lic<br>A<br>in<br>F<br>irm<br>t o<br>nt<br>te<br>nt<br>ep<br>or<br>ep<br>en<br>eg<br>re<br>cc<br>ou<br>g                                                                                                                                                                                           | 12                  |
| Ja<br>R<br>iv<br>S<br>it<br>C<br>'s<br>E<br>io<br>R<br>pt<br>t<br>m<br>es<br>er<br>ec<br>ur<br>y<br>o<br>rp<br>xe<br>m<br>n<br>ep<br>or                                                                                                                                                                                                               | 13                  |
| M<br>i<br>al<br>I<br>de<br>ci<br>L<br>C<br>C<br>at<br>et<br>te<br>FT<br>er<br>na<br>q<br>ua<br>es<br>r                                                                                                                                                                                                                                                |                     |
| C<br>R<br>f I<br>nd<br>de<br>R<br>is<br>d<br>P<br>ub<br>lic<br>A<br>in<br>Fi<br>1m<br>In<br>al<br>ol<br>t o<br>nt<br>te<br>nt<br>te<br>tr<br>ep<br>or<br>ep<br>en<br>eg<br>re<br>cc<br>ou<br>g<br>o<br>n<br>rn<br>on                                                                                                                                  |                     |
| b<br>R<br>ui<br>d<br>C<br>FT<br>C<br>R<br>ul<br>io<br>(c<br>)<br>(5<br>) f<br>In<br>od<br>in<br>B<br>ke<br>r R<br>is<br>d<br>U<br>nd<br>at<br>1.<br>16<br>tr<br>te<br>eq<br>re<br>y<br>eg<br>n<br>or<br>a<br>n<br>uc<br>g<br>ro<br>eg<br>re<br>C<br>C<br>FT<br>R<br>ul<br>io<br>3<br>.1<br>0<br>at<br>eg<br>n                                         | er<br>14<br>-1<br>5 |

Contents

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![](_page_4_Picture_0.jpeg)

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of James River Securities Corp. Manakin-Sabot. Virginia

#### Opinion **on the** Financial Statements

We have audtted the accompanying statement of financial condition of James River Securities Corp. (the "Company') as of December 31, 2020, the related statements of operations. changes in stockholders' equity, and cash flows for the year then ended and the related notes to the financial statements (collectively referred to as the "financial statements"). In our opinion. the financial statements present fairly, in all material respects. the financial condition of the Company as of December 31, 2020, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the Un~ed 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 aud~. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB') and are required to be independent wtth 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 PCAOS.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

> ) **c~rUticd l>ublrc A<:<:ountants. & Consult~nts 4401 Dominion Boufevanl**  Glen Allen. VA 23060 T:804.747.0000 F:804.741.3632

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#### Supplemental lnfonnatlon

The Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities Exchange Act of 1934 and the Exemption Provision of Reserve Requirements Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 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 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 Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities Exchange Act of 1934 and the Exemption Provision of Reserve Requirements Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 are fairly stated, in all material respects, in relation to the financial statements as a whole.

We have served as the Company's auditor since 2016.

Glen Allen, Virginia February 15. 2021

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# **Statement Of Financial Condition December 31, 2020**

| A<br>et<br>ss<br>s                                                                                                                                                |                                 |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|--|
| C<br>h<br>as                                                                                                                                                      | \$<br>20<br>8<br>,2<br>69       |  |
| F<br>R<br>ei<br>bl<br>ee<br>s<br>ec<br>va<br>e                                                                                                                    | 7<br>,0<br>88                   |  |
| D<br>f<br>R<br>el<br>ed<br>P<br>at<br>t<br>ue<br>ro<br>m<br>ar<br>y                                                                                               | 1<br>,8<br>03                   |  |
| P<br>i<br>d<br>Ex<br>re<br>pa<br>pe<br>ns<br>es                                                                                                                   | 1<br>,7<br>89                   |  |
| T<br>al<br>ot<br>et<br>a<br>ss<br>s                                                                                                                               | \$<br>2<br>18<br>,9<br>49       |  |
| Li<br>ab<br>ili<br>ti<br>A<br>nd<br>S<br>ck<br>h<br>l<br>d<br>s'<br>E<br>i<br>to<br>tv<br>es<br>o<br>er<br>g<br>u                                                 |                                 |  |
| Li<br>ab<br>ilit<br>i<br>es                                                                                                                                       |                                 |  |
| A<br>ed<br>E<br>cc<br>ru<br>x<br>pe<br>ns<br>es                                                                                                                   | 4<br>,2<br>5<br>3<br>s          |  |
| S<br>ck<br>h<br>ol<br>d<br>s'<br>E<br>it<br>to<br>er<br>qu<br>y                                                                                                   |                                 |  |
| , \$<br>C<br>ck<br>al<br>h<br>h<br>iz<br>ed<br>1.<br>00<br>1<br>,0<br>00<br>to<br>ut<br>om<br>m<br>on<br>s<br>p<br>ar<br>v<br>ue<br>s<br>ar<br>es<br>a<br>or<br>, |                                 |  |
| d<br>nd<br>in<br>ts<br>ta<br>an<br>ou<br>g                                                                                                                        | 1<br>,0<br>0<br>0               |  |
| P<br>i<br>d-<br>in<br>pi<br>l<br>ta<br>a<br>c<br>a                                                                                                                | 2<br>,3<br>04<br>,0<br>00       |  |
| R<br>ai<br>d<br>in<br>(<br>d<br>ef<br>i<br>ci<br>)<br>et<br>t<br>ne<br>ea<br>rn<br>gs                                                                             | {2<br>,0<br>90<br>,3<br>04<br>) |  |
| T<br>al<br>ck<br>h<br>l<br>d<br>1'<br>6'<br>i<br>ot<br>t<br>to<br>e<br>q<br>s<br>o<br>e<br>u<br>y                                                                 | 21<br>4<br>,6<br>9<br>6         |  |
| T<br>l l<br>i<br>b<br>lll<br>tl<br>d<br>ck<br>h<br>l<br>d<br>'<br>il<br>ot<br>st<br>a<br>a<br>e<br>s<br>an<br>o<br>o<br>e<br>rs<br>e<br>q<br>u<br>y               | 2<br>18<br>,9<br>49<br>\$       |  |
|                                                                                                                                                                   |                                 |  |

See Accompanying Notes To Financial Statements.

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**Statement Of Operation& Year Ended December 31, 2020** 

| R<br>ev<br>en<br>ue<br>s                               |                                |
|--------------------------------------------------------|--------------------------------|
| T<br>ilin<br>Fe<br>R<br>ra<br>g<br>e<br>ev<br>en<br>ue | 60<br>,6<br>10<br>\$           |
| In<br>iv<br>Fe<br>nt<br>ce<br>e<br>es                  | 53<br>9                        |
| T<br>al<br>ot<br>r<br>ev<br>en<br>ue<br>s              | 61<br>,1<br>49                 |
| Ex<br>pe<br>ns<br>es                                   |                                |
| S<br>el<br>lin<br>Fe<br>Ex<br>g<br>e<br>pe<br>ns<br>e  | 36<br>,0<br>26                 |
| P<br>f<br>si<br>al<br>F<br>ro<br>es<br>on<br>ee<br>s   | 30<br>,4<br>01                 |
| O<br>th<br>E<br>er<br>xp<br>en<br>se<br>s              | ,1<br>33<br>7                  |
| T<br>l e<br>ot<br>a<br>x<br>pe<br>ns<br>es             | ,5<br>73<br>60                 |
| N<br>tl<br>e<br>o<br>s<br>s                            | \$<br>(1<br>2<br>,4<br>11<br>) |

4

See Accompanying Notes To Financial Statements.

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#### **Statement Of Changes** In **Stockholders' Equity**

#### **Year Ended December 31, 2020**

|                                                                                       | C<br>om<br>m<br>on<br>S<br>ck<br>to | P<br>ai<br>d-<br>In<br>C<br>pi<br>l<br>ta<br>a | R<br>ai<br>d<br>et<br>ne<br>E<br>ni<br>ar<br>n<br>gs<br>{D<br>ef<br>i<br>ci<br>)<br>t | T<br>al<br>ot<br>E<br>it<br>qu<br>y |
|---------------------------------------------------------------------------------------|-------------------------------------|------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------|
| B<br>al<br>t J<br>, 2<br>02<br>0<br>1<br>an<br>ce<br>a<br>an<br>ua<br>r<br>y          | \$<br>1<br>,0<br>00                 | \$<br>2<br>,3<br>04<br>,0<br>00                | \$<br>(<br>2<br>,0<br>.8<br>93<br>)<br>77                                             | \$<br>22<br>7.<br>1<br>07           |
| N<br>L<br>et<br>os<br>s                                                               |                                     |                                                | (<br>)<br>12<br>,4<br>11                                                              | (<br>)<br>12<br>,4<br>11            |
| B<br>al<br>D<br>b<br>3<br>1<br>, 2<br>02<br>0<br>t<br>an<br>ce<br>a<br>ec<br>em<br>er | \$<br>1<br>,0<br>00                 | \$<br>2<br>,3<br>04<br>,0<br>00                | \$<br>(<br>2<br>.0<br>90<br>,3<br>04<br>)                                             | \$<br>2<br>14<br>,6<br>96           |

See Accompanying Notes To Financial Statements.

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#### **Statement Of Cash Flows**

**Year Ended December 31, 2020** 

| C<br>O<br>h<br>Fl<br>Fr<br>tin<br>A<br>iv<br>iti<br>ct<br>as<br>ow<br>s<br>om<br>pe<br>ra<br>g<br>es                                                                                                                                                                                                                                                  |                                |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
| N<br>lo<br>et<br>ss<br>A<br>d<br>ju<br>ci<br>le<br>lo<br>h<br>id<br>ed<br>b<br>tin<br>st<br>ts<br>to<br>et<br>to<br>et<br>m<br>en<br>r<br>ec<br>on<br>n<br>ss<br>n<br>c<br>as<br>pr<br>ov<br>o<br>pe<br>ra<br>g<br>y<br>tiv<br>iti<br>ac<br>es<br>:<br>C<br>ha<br>in<br>d<br>lia<br>bi<br>lit<br>ie<br>et<br>n<br>ge<br>s<br>a<br>ss<br>s<br>an<br>s: | \$<br>(1<br>2<br>,4<br>11<br>) |
| Fe<br>R<br>ei<br>bl<br>es<br>ec<br>va<br>e                                                                                                                                                                                                                                                                                                            | 12<br>3<br>,8<br>39            |
| D<br>fr<br>R<br>el<br>ed<br>P<br>at<br>t<br>ue<br>om<br>ar<br>y                                                                                                                                                                                                                                                                                       | (1<br>,8<br>03<br>)            |
| P<br>id<br>E<br>re<br>pa<br>xp<br>en<br>se<br>s                                                                                                                                                                                                                                                                                                       | 13<br>5                        |
| A<br>ed<br>E<br>cc<br>ru<br>xp<br>en<br>se<br>s                                                                                                                                                                                                                                                                                                       | (7<br>4<br>,3<br>03<br>)       |
| N<br>h<br>i<br>d<br>ed<br>b<br>ti<br>tiv<br>i<br>ti<br>et<br>c<br>as<br>p<br>ro<br>v<br>o<br>pe<br>ra<br>n<br>g<br>ac<br>es<br>y                                                                                                                                                                                                                      | 35<br>,4<br>57                 |
| N<br>in<br>in<br>sh<br>et<br>cr<br>ea<br>se<br>c<br>:a                                                                                                                                                                                                                                                                                                | 35<br>,4<br>57                 |
| C<br>h<br>, b<br>in<br>ni<br>f<br>as<br>e<br>g<br>n<br>g<br>o<br>ye<br>a<br>r                                                                                                                                                                                                                                                                         | 17<br>2<br>,8<br>12            |
| C<br>h<br>nd<br>f<br>as<br>, e<br>o<br>ye<br>a<br>r                                                                                                                                                                                                                                                                                                   | \$2<br>08<br>,2<br>69          |
| S<br>A<br>yi<br>N<br>T<br>Fi<br>ia<br>l<br>S<br>ot<br>ta<br>te<br>ts<br>ee<br>cc<br>om<br>pa<br>n<br>n<br>g<br>es<br>o<br>na<br>nc<br>m<br>en                                                                                                                                                                                                         |                                |

6

{10}------------------------------------------------

#### Notes To financial Statements

# Note **1.** Nature of Business **And** Significant Accounting Pollcles

Nature of business: James River Securities Corp. (the Company) operates in Virginia as an introducing broker-dealer. The Company is registered as a broker/dealer under the rules and regulations of the U.S. Securities and Exchange Commission (the SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is also registered as an Introducing Broker with the Commodity Futures Trading Commission (the CFTC) and is a member of the National Futures Association (NFA). The broker/dealer registration with the SEC permits the Company to conduct business primarily in direct participation programs on a reasonable efforts basis and to act as a finder or marketing agent with respecl to private placements.

The Company does not have customer acoounts and thus does not carry margin accounts. or receive customer funds or securities which ii would have lo transmit promptly in connection with its activities as a broker or dealer. The Company does not otherwise hOld funds or securities for or owe money to customers. nor does ii have financial transactions between the broker or dealer and customers through which bank aocounts have been designated as Special Accounts for the Exclusive Benefit of Customers of the Company.

A summary of the Company·s significant accounting policies follows:

The Company follows principles generally accepted in the United States of America (GAAP) as promulgated by the Financial Aooounting Standards Board (FASS).

Aocounting estifTl<ltes: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the 1eported amounts of revenues and expenses during the reporting period. Actual resulls could differ from those estimates.

Risks and Uncertainties: Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash. The Company maintains its cash balances in financial institutions insured by the Federal Deposit Insurance Corporation up to \$250,000.

A substantial portion of the Company's revenues in a year may be received from a small number of transactions or concentrated within an industry. During 2020. two customers comprised 100% of revenues and fees receivable.

#### Revenue Recognition:

The Company may derive ongoing revenue earned from previous placement transactions that is recognized as earned on the terms of the underlying placement agreements and is based on the market value of the private placement investments. The Company meets its performance obligations at the time of placement. though fees are earned for the duration of each customer investment. The two components of Company revenue are: (A) Investment Ttailinq Fees: fees based as a percentage of market value (or net asset value) as of each month-end, thus a variable consideration which is recognized by the Company when such fees can be estimated with a high degree of certainty, and **(B)** Investment Incentive Fees: fees based as a percentage of investment performance that are calculated as of each month-end but are paid to the Company on an annual basis based on the investment performance for the calendar year. Incentive Fees are subject to a claw-back provision whereby negative investment performance within a given month reduces the cumulative Incentive Fee for the year. until crystallization occurs as of calendar year-end and the Incentive Fee is known with a certainty of receipt by the Company. These performance-based fees are considered variable consideration and are reoognized by the Company upon crystallization.

During 2020. the Company reoognized trailing fee revenue of \$60,61 O and recognized investment incentive fee revenue of \$539. The Company recorded no contract assets or contract liabilities at January 1, 2020 or December 31, 2020.

{11}------------------------------------------------

#### **Notes To** Financial **Statements**

New Accounting Guidance: In June 2016. the FASB issued Accounting Standards Update ("ASU") 2016· 13 - Current Expected Credit Losses ("CECL "). The Company adopted the standard on January 1, 2020 using the modified respective approach to the earliest period presented. This guidanoe requires the use of the current expected credit loss model that is based on expected losses (net of expected recoveries), rather than incurred tosses, to determine its allowance for credit losses on financial assets measured at amortized costs. which includes fees reoeivable and due from related party. The adoption of this standard did not have a material Impact on the Company's financial statements.

The Company has no historic credit losses. There are no current indications of non-receipt from counterparties. The Company projects no probability of future losses related to these balances. Due to these factors, as well as the short-term nature of theses receivables, management nas determined that these receivables have minimal credit risk and, therefore, no allowance was deemed necessary at December 31, 2020.

Income taxes: The Company may recognize the tax benefit from an uncertain tax position only if ii is morelikely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than SO percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de• recognition. classification, interest and penalties on income taxes. and accounting in interim periods. The Company would recognize any interest and penalties on income taxes as a component of income tax expense In the statement of operations.

# **Note 2. Related Party Transactions**

The Company has no paid employees. **The** Company has an Expense Sharing Agreement with James River Financial Corp dated Aplil 1, 2018. The Company does not accrue charges for the services rendered by JRFC as per the Agreement. The Company adheres to and complies with NASO Notice 03-63 in order to be exempt from any expense sharing related charges. Management has reviewed the Expense Sharing Agreement and concluded that this contract does not contain any leases under the scope of ASU 2016-02 -Leases (Topic 842).

The Company receives an trailing fee revenue and incentive fees from James River Capital Corp (JRCC). an affiliate and related party through common control. At December 31, 2020, all fees receivable were due from JRCC.

### **Note** 3. **Income Tax Status**

The Company, with the consent of its stockholders, has elected to be taxed under Section 1362(a) of federal and the Commonwealth of Virginia income tax law. which provide that, in lieu of corporation income taxes, the stockholders sepa1ately account for their pro rata shares of the Company's ilems of income, deductions. losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements.

Management has evaluated the Company's tax positions for the open tax years and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. The Company is not currently under audit by any tax jurisdiction.

{12}------------------------------------------------

# Notes To Financial Statement\$

# **Note 4. Regulatory Requirements**

The Company is a broker-dealer subject to the Securities and Exchange Commission Unifotm 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 capnal may not be withdrawn or cash dividends paid if the resutting net capital ratio would exceed 10 to 1. The Company is also subject to the net capital requirements of the CFTC Regulation 1.17 and requifements of the National Futures Association. At December 31. 2020. the Company had net capital of \$211 ,104 which was \$161,104 in excess of ns required net capital of \$50.000. The Company's net capital ratio was 0.02 to 1.

The Company has no obligation under Rule 15c3-3 to prepare the Computation for Reserve Requirements Pursuant to Rule 15c3-3.

### **Note\$. Guarantee&**

As permitted or required under Virginia corporation law, the Company has oertain obligations to indemnify ns managers and officers for certain events or occurrences while the managers or officers are. or were serving, at the Company's request in such capacities. The maximum liability under these obligafions is limited by the Code of Virginia. The Company's Securities Investor Protection Corporation (SIPC) policy serves to further limit exposure.

#### Note 6. Subsequent Events

Management has evaluated subsequent events for potential recognition and/or disclosure in the December 31, 2020 financial statements through February 15, 2021. which was the date the Company's financial statements were issued and determined that no events have occurred that would require disclosure in the financial statements.

{13}------------------------------------------------

# **Schedule** I - **Computation Of Net Capital Under SEC Rule 15c3-1 and Statement Pursuant to Rule 17a-5(d)(4} Oe<:ember 31, 2020**

| C<br>N<br>lla<br>l<br>et<br>a<br>p                                                                                                                                                                                                     |                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                                                                                                                                                        |                           |
| S<br>ck<br>ho<br>ld<br>s'<br>E<br>it<br>to<br>er<br>qu<br>y                                                                                                                                                                            | \$2<br>14<br>,6<br>96     |
| N<br>al<br>lo<br>ab<br>le<br>et<br>on<br>a<br>ss<br>s<br>w                                                                                                                                                                             |                           |
| fr<br>D<br>el<br>ed<br>at<br>t<br>ue<br>om<br>r<br>p<br>ar<br>y                                                                                                                                                                        | (1<br>)<br>,8<br>03       |
| P<br>id<br>re<br>pa<br>e<br>xp<br>en<br>se<br>s                                                                                                                                                                                        | (1<br>)<br>,7<br>89       |
| T<br>al<br>llo<br>ab<br>le<br>ot<br>et<br>n<br>o<br>na<br>w<br>a<br>ss<br>s                                                                                                                                                            | (<br>3<br>92<br>)<br>,5   |
| it<br>l<br>N<br>et<br>c<br>a<br>p<br>a                                                                                                                                                                                                 | \$2<br>11<br>,1<br>04     |
| A<br>l<br>nd<br>eb<br>t&<br>d<br>te<br>g<br>g<br>re<br>ga<br>ne<br>ss                                                                                                                                                                  |                           |
| A<br>ed<br>cc<br>ru<br>e<br>xp<br>en<br>se<br>s                                                                                                                                                                                        | \$<br>4<br>,2<br>53       |
| C<br>i<br>f<br>B<br>i<br>N<br>C<br>it<br>l R<br>ui<br>ut<br>at<br>et<br>ts<br>o<br>m<br>p<br>o<br>n<br>o<br>as<br>c<br>a<br>p<br>a<br>e<br>q<br>re<br>m<br>en                                                                          |                           |
| M<br>in<br>im<br>ila<br>l r<br>ui<br>d<br>et<br>um<br>n<br>c<br>ap<br>eq<br>re                                                                                                                                                         |                           |
| \$<br>(th<br>f<br>/<br>f a<br>in<br>de<br>bt<br>ed<br>)<br>50<br>,0<br>00<br>r 6<br>2<br>3%<br>te<br>te<br>e<br>gr<br>ea<br>r o<br>o<br>o<br>g<br>gr<br>e<br>ga<br>ne<br>ss                                                            | \$<br>50<br>,0<br>00      |
| Ex<br>ita<br>l<br>et<br>ce<br>ss<br>n<br>c<br>ap                                                                                                                                                                                       | \$<br>16<br>1<br>,1<br>04 |
| R<br>io<br>f a<br>in<br>de<br>bt<br>ed<br>ita<br>l<br>at<br>te<br>t<br>t c<br>o<br>g<br>gr<br>e<br>ga<br>ne<br>ss<br>o<br>ne<br>ap                                                                                                     | 0.<br>02<br>t<br>1<br>o   |
| S<br>(d<br>)<br>(4<br>):<br>P<br>R<br>ul<br>17<br>5<br>T<br>he<br>ia<br>l d<br>iff<br>be<br>ta<br>te<br>t<br>t t<br>at<br>tw<br>m<br>en<br>ur<br>su<br>an<br>o<br>e<br>a-<br>re<br>a<br>re<br>n<br>o<br>m<br>er<br>er<br>en<br>ce<br>s | th<br>ee<br>n<br>e        |

above computation and the Company's Corresponding unaudited Part II of Form X-17A-5 as of December 31, 2020 and pursuant to CFTC Rule 1.17.

See Report of Independent Registered Public Accounting Firm.

{14}------------------------------------------------

#### **Schedule** II

**Schedule** II - **Exemption Provision of Reserve Requirements Pursuant to Rule 15c3-3 of lhe Securities Exchange Act of 1934 December 31, 2020** 

The Company has no obligation under Rule 15c3-3 to prepare the Computation for Reserve Requirements Pursuant to Rule 15c3-3.

See Report of Independent Registered Public Aocounting Firm.

{15}------------------------------------------------

![](_page_15_Picture_0.jpeg)

# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of James River Secu@es Corp. Manal<.in-Sabot, Virginia

We have reviewed management's statements, included in the accompanying Exemption Report, in which James River Securities Corp. (""the Company') had no obligations under 17 C.F.R. §240.15c3-3 throughout the most recent fiscal year w~hout exception, as the Company (1) did not directly or indirectly receive, hold or otherwise owe funds or securities for or to its customers: {2) did not carry accounts of or for customers: and (3) did not carry Proprietary Accounts of Broker-Dealers as defined in Rule 15c3-3. The Company'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 the Company'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 on the provisions set forth under the Securities Exchange Act of 1934.

Glen Allen. Virginia February 15, 2021

) **Certified Public: A<:countants & Consultants 4401 Dominion 8oulevsrd**  Glen Allen. VA 23060 T:804.747.0000 F:804.747.3632

{16}------------------------------------------------

# James River Securities Corp's Exemplion Report

James River Securities Corp. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.178-5, "Reports in 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 folknying:

- (1) The Company does not claim an exemption from 17 C.F.R. §240.15c3-3, and
- (2) The Company is filing this Exemption Report relying on Footnate 74 of the SEC Relass No. 34-70073 adopting amendments to 17C.F.R. §240.17a-5 because the Company Ilmits its business activities exclusivaly to being an introducing broker-dealer and (1) did not directly or indirectly receive, hold, or otherwise owe tund of securities for or to castomers; (2) did not carry accounts of or for customers; and (3) did not carry PAG accounts (as defined in Rule 150-3-3) throughout the most recent fiscal year without exception.

James River Securities Corp.

I, Laura McGrath, President, swear (or affirm) that, to my best knowledge and belief, this Exemplion Report is true and correct.

Laura McGrath, President

Date

{17}------------------------------------------------

![](_page_17_Picture_0.jpeg)

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL REQUIRED BY CFTC REGULATION 1.16(C)(6) FOR AN INTRODUCING BROKER REGISTERED UNDER CFTC REGULATION 3.10

To the Board of Directors James River Securities Corp. Manakin-Sabot. Virginia

In planning and performing our audit of the financial statements of James River Securities Corp. (the "Company"), as of and for the year ended December 31, 2020 in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Company's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements. but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control.

Also, as required by Regulation 1.16(c)(5) of the Commodities Futures Trading Commission ("CFTC'"), we have made a study of the practices and procedures followed by the Company including consideration of control activities for safeguarding securities. This study included tests of such practices and procedures that we considered relevant to the objectives slated in CFTC Regulation 1.16(d) which include a study of the accounting system, the internal aocounting controls, the procedures for safeguarding customer and firm assets and in making periodic computations of the minimum financial requirements pursuant to CFTC Regulation 1.17(a)(1)(i)(d). Because the Company is not a futures commission merchant as defined by CFTC Regulation 1.3(p), we did not review the practices and procedures relating to daily computations of the segregation requirements requireCI by Section 4d(a)(2) of the Commodity Exchange Act.

The management of the Company is responsible for establishing and maintaining internal control and the practices and procedures referred to in the preceding paragraph. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls and of the practices and procedures referred to in the preceding paragraph and to assess whether those practices and procedures can be expected to achieve the CFTC's above-mentioned objectives. Two of the objectives of internal control and the praclices and procedures are to provide management with reasonable, but not absolute assurance, that assets for which the Company has responsibility are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in conformity with generally accepted accounting principles. CFTC Regulation 1.16(d)(2) lists additional objectives of the practices and procedures listed in the preceding paragraph.

> ) **('ertified Pub1ic Acc:ount~nts & consult~nts**  4401 Dominion Boulev3rd Glen Alle<l. VA 23060 T:804.747.0000 F:804.747.3632

{18}------------------------------------------------

Because of inherent limitations in internal control or the practices and procedures referred to above. error or fraud may occur and not be detected. Also. projection of any evaluation of them to future periods is subject to the risk that they may become inadequate because of changes in conditions or that the effectiveness of their design and operation may deteriorate.

A deficiency In internal control exists when the design or operation of a control does not allow management or employees. in the normal course of performing their assigned functions, to prevent or detect misstatements on **a** timely basis. **A** significant deficiency is a deficiency. or a combination of deficiencies. in internal control that is less severe than a material weakness. yet important enough to merit attention by those charged with governance.

A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is **a** reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control was for the limited purpose described in the first and second paragraphs and would not necessarily identify all deficiencies in internal control that might be material weaknesses. We did not identify any deficiencies in internal control and control activities for safeguarding securities and certain regulated commodity customer and firm assets that we consider to be material weaknesses, as defined above.

We understand that practices and procedures that accomplish the objectives referred to in the second paragraph of this report are considered by the CFTC to be adequate for ils purposes in accordance with the Commodity Exchange Act and related regulations. and that practices and procedures that do not accomplish such objectives in all material respects indicate a material inadequacy for such purposes. Based on this understanding and on our study. we believe that the Company's practices and procedures. as described in the second paragraph of this report. were adequate at December 31. 2020, to meet the CFTC's objectives.

This report is intended solely for the infolTrlation and use of the Board of Directors, management, the CFTC. the National Futures Association and other regulatory agencies that rely on CFTC Regulation 1.16 under the Commodity Exchange Act in their regulation of introducing registered brokers and dealers. and is not intended to be and should not be used by anyone other than these specified parties.

Glen Allen, Virginia February 15. 2021


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.
