# C2M SECURITIES, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: C2M SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0000948396-22-000002 - CIK: 948396 - File #: 8-48466 - Type: Broker-dealer - Material weakness: No - Auditor: Goldman & Company, CPA's PC - Auditor location: Marietta, GA - Contact: GARY CUCCIA - Phone: 732-713-9607 - Signed by: GARY CUCCIA (Principal Financial Offficer) Original filing: https://www.sec.gov/Archives/edgar/data/948396/000094839622000002/edgarc2mpublic.pdf.pdf --- {0}------------------------------------------------ C2M Securities, LLC Statement of Financial Condition As of December 31, 2021 {1}------------------------------------------------ # C2M Securities, LLC # DECEMBER 3 I, 2021 # CONTENTS | REPORT OF INDEPENDENT REGJSTERED PUBLIC ACCOUNTING FIRM | 1 | |---------------------------------------------------------|-----| | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-5 | {2}------------------------------------------------ #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTfNG FIRM To the Member of C2M Securities, LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of C2M Securities, LLC as of December 3 1, 202 1, and the related footnotes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of C2M Securities, LLC as of **0** December 31 , 202 1 in conformity with accounting principles generally accepted in the U nited States of **U** America. **-==::::I** #### **Basis for Opinion** This financial statement is the responsibility of C2M Securities, LLC's management. Our responsibility is to express an opinion on C2M Securities, LLC'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 C2M Securities, LLC 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 inc luded performing procedures to assess the risks of material misstatement of the financial statement, whether due to error o r 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 fi nancial statements. We believe that our audit provides a reasonable basis for o ur opinion. We have served as the Company's auditor since 2019. Goldman & Company, CPA's, P.C. Marietta, Georgia March 3 I, 2022 {3}------------------------------------------------ #### C2M SECURITIES, LLC # STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2021 #### ASSETS | Cash and cash equivalents | \$
17,200 | |----------------------------------------|-----------------| | Receivable from clearing broker | 9,650 | | Accounts receivable | 6,250 | | Prepaid expenses and other assets | 41,830 | | TOTAL ASSETS | \$
74,930 | | LIABILJTIES AND MEMBER'S EQUITY | | | LJABILITIES | | | Accrued expenses and other liabilities | \$
6,32
1 | | TOTAL LIABILITIES | | | | 6,321 | | MEMBERS EQUITY | 68,609 | | TOTAL LJABILITTES AND MEMBER'S EQUITY | \$
74,930 | The accompanying notes are an integral part of these financial statements. {4}------------------------------------------------ # C2M Securities, LLC Notes to Financial Statements December 3 1, 2021 #### NOTE I ORGANIZATION AND NATURE OF BUSINESS C2M Securities, LLC (the "Company") fo1merly known as Strategic Capita l Investments, LLC, is registered as an introducing broker with the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission ("SEC") and is a wholly-owned subsidiary of Capital 2 Market Holdings, LLC ("Holdings"). The Company was formerly organized in the state of Michigan pursuant to the Michigan Limited Liability Company Act as Strategic Capital Investments, LLC; it was owned in pa1t by C2M Securities, LLC ("C2M I") which was wholly owned by Holdings. In January 2020, the Company reorganized in the Commonwealth of Virginia changing its name to C2M Securities, LLC at which time C2M I dissolved and Holdings became the sole Member. The Company has a contractual agreement with one clearing broker. In 2021 no transactions were conducted through the clearing broker. The clearing broker carries the accounts of the Company's customers on their books. #### NOTE 2 - SIGNLF1CANT ACCOUNTING POLICIES #### Basis of presentation The financial statements are presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") as required by the SEC and FLNRA. #### Use of estimates in the preparation of financial statements. 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 disclosure of contingent assets and liabi Ii ties at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Income Taxes The Company is classified as a limited liability company and all taxes pass through to the members. The Company implemented ASC 740-10-65-1 for uncertain tax positions. For the year ended December 31, 2021, the Company had no uncertain tax positions. #### Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. {5}------------------------------------------------ #### C2M Securities, LLC Notes to Financial Statements December 3 J, 2021 #### NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) # Accounts Receivable Receivable balances are stated at net realizable value. An allowance for doubtful accounts is recorded, if appropriate, based upon the Company's assessment ofrelevant col lectabi lity factors, in accordance with ASC 326, Financial Instruments - Current Expected Credit Losses ("CECL"). This standard requires the immediate recognition of estimated credit losses expected over the life of applicable financial assets. The Company's CECL evaluation considers factors such as historical experience; credit quality; terms; balances; current and projected economic conditions; and other re levant collectability matters. The Company is evaluating new accounting standards and will implement as required. #### NOTE 3 - CONCENTRA TfON OF CREDIT Rf SK The Company maintains cash balances at financial institutions whose accounts are insured by the Federal Deposit Insurance Corporation ("FDJC") up to statutory limits. The Company's cash balances may, at times, exceed statutory limits. The Company has not experienced any losses in such accounts, and management considers th is to be a normal business risk. The Company received approximately 90% of its revenue from one customer. # NOTE 4- RELATED PARTY TRANSACTIONS In 2021, Holdings paid the Company \$53,000 for its share of billings on 3 joint projects which is recorded as revenue in the accompanying financial statements. The Company also reimbursed Holdings approximately \$1 ,700 for direct expenses pa id by Holdings on the Company's behalf. Additionally, cash receipts totaling approximately \$9,600 from clients of Holdings were inadvertently deposited into the Company's bank account and were subsequently transferred to Holdings upon discovery the same day. #### NOTE 5 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule l 5c3-I ), 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 I. The rule of the "applicable" exchange also prov ides that equity capital may not be withdrawn if the resulting net capital ratio would exceed IO to I. At December 3 1, 202 I , the Company had regulatory net capital of \$20,529, which was \$ 15,529 in excess of its required minimum of \$5,000. The Company's percent of aggregate indebtedness to net capital ratio was .0379 to 1. {6}------------------------------------------------ #### C2M Securities, LLC Notes to Financial Statements December 3 1, 2021 #### NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### Accounts Receivable Receivable balances are stated at net realizable value. An allowance for doubtful accounts is recorded, if appropriate, based upon the Company's assessment ofre levant collectabi I ity factors, in accordance with ASC 326, Financial Instruments - Current Expected Credit Losses ("CECL"). This standard requires the immediate recognition of estimated credit losses expected over the life of applicable financial assets. The Company's CECL evaluation considers factors such as historical experience; credit quality; terms; balances; current and projected economic conditions; and other relevant collectability matters. The Company is evaluating new accounting standards and will implement as required. #### NOTE 3 - CONCENTRATION OF CREDIT RISK The Company maintains cash balances at financial institutions whose accounts are insured by the Federal Deposit Insurance Corporation (" FDIC" ) up to statutory limits. The Company's cash balances may, at times, exceed statutory limits. The Company has not experienced any losses in such accounts, and management considers this to be a normal business risk. The Company received approximate ly 90% of its revenue from one customer. # NOTE 4 - RELATED PARTY TRANSACTIONS In 2021 , Holdings paid the Company \$53,000 for its share of billings on 3 joint projects which is recorded as revenue in the accompanying financial statements. The Company also reimbursed Holdings approximately \$I, 700 for direct expenses paid by Holdings on the Company's behalf. Additionally, cash receipts totaling approximately \$9,600 from clients of Holdings were inadvertently deposited into the Company's bank account and were subsequently transferred to Holdings upon discovery the same day. #### NOTE 5 - NET CAPlTAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3- I), 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 I. The rule of the "applicable" exchange also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed IO to I. At December 31 , 2021, the Company had regulatory net capital of \$20,529, which was \$ 15,529 in excess of its required minimum of \$5,000. The Company's percent of aggregate indebtedness to net capital ratio was .0379 to I. {7}------------------------------------------------ #### C2M Securities, LLC Notes to Financial Statements December 3 I, 2021 ## NOTE 6 - COMMITMENTS AND CONTfNGENClES The Company currently has no commitments and constancies. # NOTE 7 - SUBSEQUENT EVENT The Company evaluated transaction occurring after the year ended December 31, 2021 through March 31, 2022, the date these financial statements were available for issuance. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.