# HEIM, YOUNG & ASSOCIATES, INC. X-17A-5 (2022-09-23) — Broker-dealer annual report - Company: HEIM, YOUNG & ASSOCIATES, INC. - Form: X-17A-5 - Filed: 2022-09-23 - Period: 2022-06-30 - Accession: 0000949002-22-000004 - CIK: 949002 - File #: 8-48500 - Type: Broker-dealer - Material weakness: No - Auditor: Davila Advisory, LLC - Auditor location: St. Louis, MO - Contact: Trinity Y. Lee - Phone: 417-882-7283 - Signed by: J. Brent Singleton (President, CEO) Original filing: https://www.sec.gov/Archives/edgar/data/949002/000094900222000004/hyashort.pdf --- {0}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM JUNE 30, 2022 {1}------------------------------------------------ | | | UNITED STATES | | | | OMB APPROVAL | |-------------------------------------------------------------------------------------------------------------------------|------------------------------------|-----------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------------| | | SECURITIES AND EXCHANGE COMMISSION | | | | OMB Number: 3235-0123 | | | | Washington, D.C. 20549 | | | | Expires: Oct. 31, 2023
Estimated average burden | | | | | | | hours per response: 12 | | | | ANNUAL REPORTS | | | | | SEC FILE NUMBER | | | FORM X-17A-5 | | | | | 48500 | | | | | PART III | | | | | | | | | | | | | | | | 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 07/01/2021 | | | | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | | | MM/DD/YY | | | | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | | | | NAME OF FIRM: Heim Young & Associates, Inc. | | | | | | | | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | Broker-dealer
C Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 1256 E. Kingsley St. | | | | | | | | | | (No. and Street) | | | | | | | | | MO | | | 65804 | | | Springfield | | | | | | | (City) | | | (State) | | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | J. Brent Singleton | | (417)882-7283 | | | | | | (Name)
(Area Code - Telephone Number)
(Email Address) | | | | | | | | | | | B. Accountant IDENTIFICATION | | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | Davila Advisory, LLC | | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 10135 Manchester Rd. Ste. 206 St. Louis | | | | MO | | 63122 | | (Address) | | (City) | | (State) | | (Zip Code) | | 11/21/2019 | | | | 6667 | | | | (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 | | | | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | | | | | 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. {2}------------------------------------------------ ## OATH OR AFFIRMATION | J. Brent Singleton | swear (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------| | tinancial report pertaining to the firm of Heim Young & Associates, Inc. | , as of | | June 30 | 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. | | | | | DONDREA REED Notary Public - Notary Seal Štate of Missouri Commissioned for Greene County My Commission Expires: January 29, 2025 Commission Number: 13441467 Signature: Title: Dondrea Reed Notary Public ## This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - = (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - O (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. - □ (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. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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 240.18a-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. - | 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)(2), as applicable. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) Board of Directors Heim Young & Associates, Inc. ## Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Heim Young & Associates, Inc. (the "Company") as of June 30, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Heim Young & Associates, Inc. as of June 30, 2022 in conformity with accounting principles generally accepted in the United States of America. ## Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating 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 Heim Young & Associates, Inc.'s auditor since 2021. Javila Advisor, LLC Saint Louis, Missouri September 20, 2022 {4}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION ## JUNE 30, 2022 ## ASSETS | Cash and cash equivalents | \$
344,360 | |-----------------------------------------------------|---------------| | Concessions and fees receivable | 39,343 | | Other assets | 8,892 | | TOTAL ASSETS | \$
392,595 | | | | | LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES | | | Accounts payable and other liabilities | \$
3,402 | | Due to related party | 2,000 | | | | | Total Liabilities | \$
5,402 | | SHAREHOLDERS' EQUITY | | | Common stock, \$1 par value; authorized, | | | voting 30,000 shares, non-voting 30,000 | | | shares; issued and outstanding, voting | | | 1,000 shares, non-voting 0 shares | \$
1,000 | | Additional paid-in capital | 436,568 | | Retained earnings (deficit) | (50,375) | | | | | Total Shareholders' Equity | \$
387,193 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | \$
392,595 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ ## YEAR ENDED JUNE 30, 2022 ## NOTE 1 - NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization - Heim, Young & Associates, Inc. (the "Company") was incorporated in the state of Missouri on July 7, 1995. The Company is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company's principal business activity is the sale of securities. Basis of Presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Recognition of Revenue – The Company follows the revenue recognition guidance that requires an entity to follow a five step model to (a) identify the contract(s) with a 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 entity satisfies the performance obligation. Revenues are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are analyzed to determine whether the Company is the principal (i.e., reports revenue on a gross basis) or agent (i.e., reports revenues on a net basis) in the contract. Principal or agent designations depend primarily on the control an entity has over the product or service before control is transferred to a customer. The indicators of which party exercises control include primary responsibility over performance obligations, inventory risk before the good or service is transferred and discretion in establishing the price. obligations are identified; when to recognize revenue based on the appropriate Significant Judgments - The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. {6}------------------------------------------------ ## YEAR ENDED JUNE 30, 2022 ## NOTE 1 - NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES- (Continued) Commissions and Concessions - The Company generates two types of commission and concessions revenue. Sales-based revenue which is recognized on the settlement date, an industry standard, and trailing revenue which is recognized over time as earned. Sales-based revenue varies by investment product and is based on a percentage of an investment product's current market value at the time of purchase. Trailing revenue is based on a percentage of the current market value of the client's investment holdings in trail-eligible assets and is recognized over the period during which services are performed. Since trailing revenue is based on the market value of the clients' investment holdings, this variable consideration is constrained until the market value is determinable. Concentrations of Credit Risk - The Company is engaged in various trading and brokerage activities in which the counterparties primarily include broker/dealers, banks, other financial institutions and the Company's own customers. In the event the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. Receivables – The Company reviews the receivables for collectability on a regular In addition, most of the Company's cash is on deposit at two financial institutions and the balance at times may exceed the federally insured limit. The Company has not experienced any loss on cash deposits. Cash Equivalents - For purposes of the Statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business. basis. The allowance for doubtful accounts reflects management's best estimate of probable losses determined principally on the basis of historical experience. Management did not deem an allowance necessary at June 30, 2022. {7}------------------------------------------------ ## YEAR ENDED JUNE 30, 2022 NOTE 1 - NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES- (Continued) Leases - The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. At June 30, 2022, the Company did not have any lease obligations, as any potential leased assets are covered through an expense sharing agreement (See Note 7). Estimates - 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 liabilities 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. ## NOTE 2 - RELATED PARTY INFORMATION The Company is affiliated, through common ownership and management, with HYA Advisors, Inc. (HYA), a registered investment advisor, and D-Squared Properties, L.L.C. (D-SP). D-SP owns the main office space leased to the Company, HYA. The Company has paid certain overhead and operating expenses on behalf of HYA, and have been reimbursed by this entity. Reimbursements from this entity for the year ended June 30, 2022 was \$1,167,837. The Company and its shareholders have entered into an agreement which includes HYA and D-SP as well as all shareholders/members of these entities. Included in this agreement are certain buy/sell provisions, restrictions on sale of shares/ownership interests and other restrictions/requirements of the shareholders/members. Future shareholders/members will also be bound by this agreement. At June 30, 2022, the Company owed nothing to HYA. {8}------------------------------------------------ ## YEAR ENDED JUNE 30, 2022 ## NOTE 3 - NET CAPITAL REQUIREMENTS The Company is subject to the SEC Uniform Net Capital Rule (rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregated indebtedness to net capital, both as defined, shall not exceed 1500%. At June 30, 2022, the Company's net capital and required net capital were \$340,320 and \$5,000, respectively. The Company's ratio of aggregate indebtedness to net capital was 2%. ## NOTE 4 - OFF-BALANCE SHEET RISK AND CLEARING AGREEMENT The Company enters into various transactions involving derivatives and other offbalance sheet financial instruments. These financial instruments include exchangetraded and over-the counter options. These derivative financial instruments are used to meet the needs of customers and are subject to varying degrees of market and credit risk. In addition, the Company's customers may sell securities that they do not currently own and will, therefore, be obligated to purchase such securities at a future date. Since the Company enters into the aforementioned transactions involving In order to facilitate securities transactions, including the aforementioned derivatives and other off-balance sheet financial instruments solely for the benefit of its customers, the Company does not bear any of the credit or market risk of those customers, with the exception of the risk to the Company should its customers fail to honor their obligations related to the foregoing derivatives and other off-balance sheet financial instruments, as mentioned hereafter. transactions, in December 2009, the Company entered into an agreement with another broker/dealer (Clearing Broker/dealer). This has been renewed for five additional years through October 2022. Under the terms of the agreement the Company forwards (introduces) customer securities transactions to the Clearing Broker/dealer, fully disclosing the customer name and other information. The processing and, if applicable, any financing pertaining to the introduced securities transactions are performed by the Clearing Broker/dealer. The customer account is therefore maintained and recorded in the books and records of the Clearing Broker/dealer on the Company's behalf. In consideration for introducing customers to the Clearing Broker/dealer, the Company receives commissions and other consideration, less the processing and other charges of the Clearing Broker/dealer. {9}------------------------------------------------ ## YEAR ENDED JUNE 30, 2022 ## NOTE 4 - OFF-BALANCE SHEET RISK AND CLEARING AGREEMENT - (Continued) As part of the terms of the agreement between the Company and Clearing Broker/dealer, the Company is held responsible for any losses arising when the customers introduced by the Company to the Clearing Broker/dealer fail to meet their contractual commitments pertaining to the purchase, sale and possible financing of securities transactions. The Company may therefore be exposed to off-balance sheet risk in the event the customer is unable to fulfill its contracted obligations and it is necessary for the Clearing Broker/dealer to purchase or sell the securities at a loss. The Company's exposure to risk would consist of the amount of the loss realized and any additional expenses incurred pertaining to the transaction or other customer activity. Under terms of the agreement the Company is required to maintain a \$50,000 deposit with the Clearing Broker/dealer and maintain a minimum net capital of \$75,000. In addition, the Company is restricted from entering into another agreement for similar services without prior written consent from the Clearing Broker/dealer. Minimum charges, termination charges and other items are included in the agreement. NOTE 5 - 401(k) PLAN The Company has adopted a deferred compensation plan commonly referred to as a 401(k) Plan. Employees become eligible for the plan after one year of service and having attained age 18. The Company will match employee contributions up to 3% of compensation plus 50% of contributions in excess of 3%, up to a maximum of 5% of employee's compensation. The Company is also permitted to make additional discretionary profit-sharing contributions. The plan is on a calendar year end. Company matching and profit-sharing contributions to the plan for the year ended June 30, 2022 totaled \$246,329. This amount is included in compensation and related benefits on the Statement of Operations. Of this amount, \$415 is included in accounts payable and other liabilities on the Statement of Financial Condition at June 30, 2022. {10}------------------------------------------------ ## NOTES TO STATEMENT OF FINANCIAL CONDITION ## YEAR ENDED JUNE 30, 2022 NOTE 6 - INCOME TAXES The Company has elected S Corporation status for federal income tax purposes. Income taxes are therefore the responsibility of the individual shareholders of the Company. The Company accounts for any potential interest or penalties related to possible future liabilities for unrecognized income tax benefits as other expense. The Company is no longer subject to examination by tax authorities for federal, state or local income taxes for periods before 2019. share of office rent expense for this lease for the year ended June 30, 2022 was ## NOTE 7 - COMMITMENTS The Company has an expense sharing agreements with its affiliates HYA Advisors, Inc. for office space (See Note 3), expiring September 30, 2026. The Company's \$12,000. The Company has a marketing agreement with another entity whereby compensation is determined by revenue production by registered representatives of that entity. This entity also provides office space and related overhead to the Company. Restrictions upon termination of this agreement are included therein. ## NOTE 8 - CONTINGENCIES The Company, from time to time, is involved in certain claims and arbitrations incidental to its business operations. Management is of the opinion that any claims, either individually or in the aggregate, to which the Company is a party will not have a material adverse effect on the Company's financial position or operations. NOTE 9 – REVENUE FROM CONTRACTS WITH CUSTOMERS In regard to ASC Topic 606, revenue has been disaggregated on the Statement of Operations. For presentation purposes, revenue on the Statement of Operations is disaggregated further than what was presented on the FOCUS filings. No further disaggregation is warranted at June 30, 2022. {11}------------------------------------------------ ## NOTES TO STATEMENT OF FINANCIAL CONDITION ## YEAR ENDED JUNE 30, 2022 ## NOTE 10 - ORIGINALLY FILED AND AMENDED YEAR END FOCUS IIA The Company originally filed their year-end FOCUS IIA showing an ending net capital of \$349,212. The Company filed an amended year-end FOCUS IIA on July 26, 2022, with a net capital of \$340,320. The difference of \$8,892 is due to the addition of prepaid assets as nonallowable. ## NOTE 11 – SUBSEQUENT EVENT The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the financial statements were issued, noting none, except for below. On August 31, 2022, the Company's shares were acquired by an unaffiliated third party. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.