# AUFHAUSER SECURITIES, INC. X-17A-5 (2023-03-10) — Broker-dealer annual report - Company: AUFHAUSER SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-03-10 - Period: 2022-12-31 - Accession: 0001003108-23-000005 - CIK: 1003108 - File #: 8-48786 - Type: Broker-dealer - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Robert Keith Aufhauser - Phone: 2127576824 - Email: admin@aufsec.com - Website: aufsec.com - Signed by: Robert Keith Aufhauser (President) Original filing: https://www.sec.gov/Archives/edgar/data/1003108/000100310823000005/asec1.pdf --- {0}------------------------------------------------ **AUFHAUSER SECURITIES, INC. AUDITED FINANCIAL STATEMENTS AND SEC FORM X-17-A-5, PART III YEAR ENDED DECEMBER 31, 2022** {1}------------------------------------------------ **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 SEC FILE NUMBER 8-48786 # **ANNUAL REPORTS FORM X-17A-5 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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 12/31/2022 01/01/2022 MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AUFHAUSER SECURITIES, INC. TYPE OF REGISTRANT (check all applicable boxes): ☐ Broker-dealer ☐ Security-based swap dealer ☐ Major security-based swap participant ☐ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 112 WEST 56TH STREET | | (No. and Street) | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------| | NEW YORK
_____________________________________________________________________________________ | NY | | 10019 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | ROBERT KEITH AUFHAUSER
_____________________________________________________________________________________ | 212-757-6824 | | ADMIN@AUFSEC.COM | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
BERKOWER LLC
_____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name) | | | | 517 US-1 SUITE 4103
_____________________________________________________________________________________ | ISELIN | NJ | 08830 | | (Address) | (City) | (State) | (Zip Code) | | 09/18/2003
_____________________________________________________________________________________ | | 217 | | | (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 be covered by the 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** ROBERT KEITH AUFHAUSER I, \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, swear (or affirm) that, to the best of my knowledge and belief, the AUFHAUSER SECURITIES, INC. financial report pertaining to the firm of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, as of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 2\_\_\_\_\_, is true and correct. I further swear (or affirm) that neither the company nor any 12/31 022 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. Commonwealth of Virginia City/County of:\_\_\_\_\_\_\_\_\_\_ Prince William | Emon Christian Moore | |----------------------| | REGISTRATION NUMBER | | 8033469 | | COMMISSION EXPIRES | | September 30, 2026 | # \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Notary Public Notarized online using audio-video communication #### **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). - ☐ (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. - ☐ (l) 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 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. - ☐ (q) 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 report or 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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - ☐ (y) Report describing any material inadequacies found to exist or 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 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* Signature: Robert Keith Aufhauser \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ PRESIDENT {3}------------------------------------------------ # **AUFHAUSER SECURITIES, INC.** # **TABLE OF CONTENTS** | | Page | |----------------------------------------------------------------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm -
Financial Statements and Supplemental Information | 1 | | Statement of Financial Condition | 2 | | Statement of Income | 3 | | Statement of Changes in Stockholder's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6 | | Schedule I – Computation of Net Capital Pursuant to SEC Rule 15c3-1 | 12 | | Schedule II – Computation for Determination of the Reserve
Requirements Pursuant to SEC Rule 15c3-3 | 13 | | Schedule III – Information Relating to the Possession or Control
Requirements Pursuant to SEC Rule 15c3-3 | 14 | | Report of Independent Registered Public Accounting Firm -
Management Exemption Report | 15 | | Management Exemption Report | 16 | | Report of Independent Registered Public Accounting Firm -
Applying Agreed-Upon Procedures | 17 | | Form SIPC-7 | 19 | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholder of Aufhauser Securities, Inc.: #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Aufhauser Securities, Inc. (the "Company") as of December 31, 2022, the related statements of income, changes in stockholder's equity, and cash flows for the year ended December 31, 2022, and the related notes (collectively referred to as the "Financial Statements"). In our opinion, the Financial Statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United 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 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 ("SEC") 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 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. #### **Supplemental Information** The supplemental information (Schedule I – Computation of Net Capital Pursuant to SEC Rule 15c3-1; Schedule II – Computation for Determination of the Reserve Requirements Pursuant to SEC Rule 15c3-3; and Schedule III – Information Relating to Possession or Control Requirements Pursuant to SEC Rule 15c3-3) (the "Supplemental Information") has 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 Supplemental Information is fairly stated, in all material respects, in relation to the Financial Statements as a whole. We have served as the Company's auditor since 2020. Berkower LLC Iselin, New Jersey February 28, 2023 {5}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **STATEMENT OF FINANCIAL CONDITION** *December 31, 2022* | Assets | | | |--------------------------------------------|----|-----------| | Cash and cash equivalents | | 3,519,917 | | Receivable from clearing broker | | 635,748 | | Total Assets | | 4,155,665 | | | \$ | | | Liabilities & Stockholder's Equity | | | | Accounts payable and accrued expenses | \$ | 223,654 | | Payable to clearing broker | | 37,480 | | Total Liabilities | | 261,134 | | Stockholder's Equity | | | | Common Stock | | 30,000 | | Additional Paid-in Capital | | 2,480,000 | | Retained Earnings | | 1,384,531 | | Total Stockholder's Equity | | 3,894,531 | | | | | | Total Liabilities and Stockholder's Equity | \$ | 4,155,665 | {6}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **STATEMENT OF INCOME** #### *Year Ended December 31, 2022* | Income | | | |----------------------------------------|----|-----------| | Commissions | \$ | 1,283,020 | | Interest | | 75,989 | | Other | | 10,044 | | Total Income | \$ | 1,369,053 | | | | | | Expenses | | | | Employee compensation and benefits | | 671,148 | | Commission, clearing and exchange fees | | 513,512 | | Occupancy | | 108,000 | | Professional and regulatory fees | | 40,102 | | Other | | 13,888 | | Total Expenses | | 1,346,650 | | | | | | Income before income taxes | | 22,403 | | Provision for income taxes | | 16,763 | | Net Income | \$ | 5,640 | {7}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY** #### *Year Ended December 31, 2022* | | Common Stock | Paid-In Capital | Retained Earnings | |---------------|--------------|-----------------|-------------------| | Balance as of | | | | | 1/1/2022 | \$
30,000 | \$
2,480,000 | \$
1,378,891 | | Net Income | | | 5,640 | | Balance as of | | | | | 12/31/2022 | \$
30,000 | \$
2,480,000 | \$
1,384,531 | {8}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **STATEMENT OF CASH FLOWS** ## *Year Ended December 31, 2022* | Cash flows from operating activities: | | |--------------------------------------------------------------------------------------|-----------------| | Net income | \$
5,640 | | Adjustments to reconcile net income to net cash provided by
operating activities: | | | Changes in operating assets and liabilities: | | | Increase in Receivable from clearing broker | (325,800) | | Increase in Payable to clearing broker | 25,581 | | Increase in Accounts payable and accrued expenses | 165,964 | | Net cash used by operating activities | (128,615) | | | | | Cash flows from investing activities: | - | | | | | Cash flows from financing activities: | - | | | | | Net decrease in cash and cash equivalents | (128,615) | | Cash and cash equivalents, beginning of year | 3,648,532 | | Cash and cash equivalents, end of year | \$
3,519,917 | | | | | | | | Supplemental disclosures of cash flow information | | | Cash paid during the year for: | | | Income taxes | \$
25,380 | | Interest | \$
- | | | | {9}------------------------------------------------ *December 31, 2022* # **1. Organization and Nature of Business** Aufhauser Securities, Inc. (the "Company") operates as a discount broker located in New York City, New York. It was formed in New York State on June 14, 1994; is registered as a securities broker-dealer under the Securities and Exchange Act of 1934; and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company clears securities transactions on a fully disclosed basis through a clearing broker. It operates under the exemption provisions of SEC Rule 15c3-3, paragraph (k)(2)(ii), with respect to that Rule's requirements, including the possession or control of customer assets and reserve requirements. # **2. Summary of Significant Accounting Policies** ## *Basis of Presentation* The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") as detailed in the Financial Accounting Board's ("FASB") Accounting Standards Codification ("ASC"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. #### *Revenue Recognition* Securities transactions and the related commission revenue and expenses are recorded on the trade date. The Company's performance obligation is satisfied on the trade date because that is when the underlying securities, counterparty, and pricing have been determined; and ownership risks and rewards are transferred. #### *Receivables* Receivable balances are stated at net realizable value. An allowance for doubtful accounts is recorded, if appropriate, based upon the Company's assessment of relevant collectability 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. {10}------------------------------------------------ *December 31, 2022* # **2. Summary of Significant Accounting Policies –** *continued* ## *Cash and Cash Equivalents* At December 31, 2022, Cash amounted to \$62,505 and Cash equivalents amounted to \$3,457,412. Cash equivalents include short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. Cash equivalents at December 31, 2022 consist of a liquid US Treasury money market fund of short-term government securities held at the clearing broker. The Company's cash balance may at times exceed the FDIC insurance limit. #### *Income Taxes* The Company provides for income taxes on all transactions that have been recognized in the financial statements in accordance with ASC 740*, Income Taxes*. Accordingly, deferred taxes are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on deferred tax liabilities and deferred tax assets, as well as other changes in income tax laws, are recognized in net earnings in the period such changes are enacted. Valuation allowances are established when necessary to reduce deferred tax assets to amounts estimated to be realized. ## *Stockholder's Equity* The Company has 200 common stock shares authorized, with a par value of \$300 per share. 100 shares are issued and outstanding as of December 31, 2022. #### *Loan Forgiveness* The Company's policy is to account for forgivable loans in accordance with *ASC 470, Debt* and related accounting pronouncements. Forgiveness of debt is recognized when the debt is extinguished, meaning the Company is formally released from the liability. The forgiven debt amount is recorded as a gain on extinguishment of debt; and is included in Other income in the Statement of Income. # **3. Clearing Broker – Receivable and Payable** Receivable from clearing broker in the amount of \$635,748 at December 31, 2022 includes the Company's required cash deposit of \$100,000; as well as commissions revenue receivable from securities transactions. The Company has determined that no allowance for doubtful accounts is required at December 31, 2022 based on its evaluation described in Note 2. {11}------------------------------------------------ *December 31, 2022* # **3. Clearing Broker – Receivable and Payable -** *continued* Payable to clearing broker of \$59,480 at December 31, 2022 represents unpaid service fees under the clearing broker agreement. The Company introduces securities trades on behalf of its customers which are cleared on a fully disclosed basis by the clearing broker. The counterparties for these transactions include broker-dealers, banks and other financial institutions. The Company is subject to credit risk in the event the securities trade counterparty does not fulfill its trade obligations. Under the terms of its clearing broker agreement, the Company is responsible to indemnify the clearing broker in full for any losses resulting from the Company's or counterparty's failure to fulfill their contractual obligations. No such losses have been incurred since the Company's inception. The Company's clearing broker agreement was effective as of the Company's commencement of operations. This agreement is on-going subject to mutually agreeable amendment; and is cancellable by either party with 90-days' notice, without penalty. # **4. Customer Concentration** Two customers generated approximately 77.4% and 13.2% of the Company's revenues for the year ended December 31, 2022, respectively. ## **5. Fair Value Measurement - Securities** Securities owned are recorded at fair value according to the fair value hierarchy set forth by GAAP, as explained below. At December 31, 2022, the Company's securities consisted of the money market fund referred to in Note 2, in the amount of \$3,457,412, which represented a Level 1 valuation. There were no Level 2 or Level 3 securities at December 31, 2022. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by GAAP, are used to measure fair value. {12}------------------------------------------------ *December 31, 2022* #### **5. Fair Value Measurement – Securities -** *continued* The fair value hierarchy prioritizes the fair valuation inputs as follows: - Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities, that the Company can access at the measurement date. - Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. - Level 3. Unobservable inputs for the asset or liability, and rely upon the Company's judgment about the appropriate assumptions and inputs. ## **6. Contingencies** The Company may be involved in litigation, claims and regulatory actions arising out of the normal course of business as a securities broker-dealer. The Company is not aware of any such matters as of December 31, 2022 and for the year then ended. ## **7. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's ("SEC") Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn, or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2022, the Company had net capital of \$3,825,382 which was \$3,575,382 in excess of its required net capital of \$250,000. The Company's ratio of aggregate indebtedness to net capital was 0.07 to 1. ## **8. Taxes** The Company had Federal income tax expense of \$2,343 for the year ended December 31, 2022. The Company is also subject to New York State and New York City income taxes, which amounted to \$14,420 for the year ended December 31, 2022. Income taxes payable amounting to \$4,383 are included in Accounts payable and accrued expenses as of December 31, 2022. {13}------------------------------------------------ *December 31, 2022* ## **8. Taxes -** *continued* No provision for deferred tax expense and deferred taxes payable was required as of December 31, 2022. The Company's tax returns are subject to examination by taxing authorities in the stated jurisdictions in accordance with the normal statutes of limitations, which are generally three years from the filing date. During 2022, the IRS completed an examination of the Company's federal income tax return for the year ended December 31, 2020, which did not result in a material change. As of December 31, 2022, open tax years were 2021 and 2022 for federal income taxes; and 2019 through 2022 for New York State and New York City income taxes. ## **9. Related Party Transactions** The Company has an expense sharing agreement ("Agreement") with an affiliated company. The Agreement covers shared office rent and occupancy expenses utilized by the Company. The Agreement is renewable annually but may be terminated by either party with 30 days' notice. The Company's costs under the Agreement amounted to \$108,000 for the year ended December 31, 2022, of which \$18,000 was payable and included in Accounts payable and accrued expenses as of December 31, 2022. #### **10. Recently Issued Accounting Pronouncements** The Company is subject to ongoing revisions to the GAAP standards in effect applicable to the preparation of its financial statements. The Company has either evaluated or is currently evaluating the impact of pending FASB pronouncements. The Company believes that these future standards will not have a material impact on its financial statements. {14}------------------------------------------------ *December 31, 2022* ## **11. COVID-19** As a result of the COVID-19 pandemic, the Company made the necessary operating changes for employees to work remotely from home during 2020. The Company continues to operate remotely during the COVID-19 pandemic. # **12. Subsequent Events** The Company has evaluated subsequent events through the date the financial statements were issued. No material subsequent events occurred during this period that were required to be recognized or disclosed in the Company's financial statements as of December 31, 2022 and for the year then ended. {15}------------------------------------------------ ## *AUFHAUSER SECURITIES, INC.* **SCHEDULE I - COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 15c3-1** *December 31, 2022* | Stockholder's Equity | | \$ 3,894,531 | |----------------------------------------------|------------|---------------| | | | | | Deductions: | | | | Haircuts on Securities | | | | 2% -
money market fund
- | | | | \$3,457,412 | | (69,149) | | Net capital | | \$ 3,825,382 | | | | | | Net capital requirements: | | | | 6 2/3% of aggregate indebtedness
\$ | 17,409 | | | Minimum net capital | \$ 250,000 | | | Greater of above | | (250,000) | | Excess net capital | | \$ 3,575,382 | | Aggregate indebtedness: | | | | Accounts payable and accrued expenses | | \$
223,654 | | Payable to clearing broker | | 37,480 | | Aggregate indebtedness | | \$
261,134 | | Ratio: aggregate indebtedness to net capital | | 0.07
to 1 | There were no material differences between the above computation and the computation included in the Company's amended unaudited Form X-17A-5, Part IIA filing as of December 31, 2022, which was filed on January 17, 2023. *See Report of Independent Registered Public Accounting Firm* {16}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **SCHEDULE II - COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS PURSUANT TO SEC RULE 15c3-3** *Year Ended December 31, 2022* The Company was not subject to the requirements of SEC Rule 15c3-3 ("Rule") for the year ended December 31, 2022. The Company operated under the exemption provisions of the Rule's paragraph (k)(2)(ii). *See Report of Independent Registered Public Accounting Firm* {17}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **SCHEDULE III – INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS PURSUANT TO SEC RULE 15c3-3** *Year Ended December 31, 2022* The Company was not subject to the requirements of SEC Rule 15c3-3 ("Rule") for the year ended December 31, 2022. The Company operated under the exemption provisions of the Rule's paragraph (k)(2)(ii). *See Report of Independent Registered Public Accounting Firm* {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) 517 Route One, Suite 4103 Iselin, NJ 08830 > (732) 781-2712 berkower.io #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholder of Aufhauser Securities, Inc.: We have reviewed management's statements, included in the accompanying Aufhauser Securities, Inc. Exemption Report under SEA Rule 17a-5(d)(4), in which (1) Aufhauser Securities, Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Aufhauser Securities, Inc. claimed an exemption from 17 C.F.R. § 240. 15c3-3: (2)(*ii*) (the "Exemption Provisions") and (2) Aufhauser Securities, Inc. stated that Aufhauser Securities, Inc. met the identified Exemption Provisions throughout the most recent fiscal year without exception. Aufhauser Securities, Inc.'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 A.C.R. Securities, Inc.'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 in paragraph (k)(2)(*ii*) of Rule 15c3-3 under the Securities Exchange Act of 1934. Berkower LLC Iselin, New Jersey February 28, 2023 **Miami** • **Los Angeles** • **Cayman Islands** {19}------------------------------------------------ #### *AUFHAUSER SECURITIES, INC.* **MANAGEMENT EXEMPTION REPORT** *Year Ended December 31, 2022* Aufhauser Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-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)(1) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company claimed an exemption from 17 C.F.R. §240.15c3-3 under the exemption provision of 17 C.F.R. §240.15c3-3 (k)(2)(ii). - 2. The Company met the exemption provision of 17 C.F.R. §240.15c3-3 (k)(2)(ii) throughout the year ended December 31, 2022 without exception. Aufhauser Securities, Inc. Keith Aufhauser President {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholder of Aufhauser Securities, Inc.: 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 Corporation ("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 Aufhauser Securities, Inc. ("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 the associated 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 amounts reported in Form SIPC-7 for the year ended December 31, 2022, noting an overstatement of \$3,976 in the Form SIPC-7 amount; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers noting no differences; and - 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. 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 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. {21}------------------------------------------------ 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. Berkower LLC Iselin, New Jersey February 28, 2023 {22}------------------------------------------------ | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | Disposition of exceptions: #### **SIPC-7 SIPC-7** SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 (36-REV 12/18) (36-REV 12/18) **General Assessment Reconciliation** 12/31/2022 For the fiscal year ended **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** (Read carefully the instructions in your Working Copy before completing this Form) #### **TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS** 1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | 48786
FINRA DEC
AUFHAUSER SECURITIES INC
112 W 56TH ST 10TH FL
NEW YORK, NY 10019-3841 | Note: If any of the information shown on the
mailing label requires correction, please e-mail
any corrections to form@sipc.org and so
indicate on the form filed.
Name and telephone number of person to
contact respecting this form.
RK AUFHAUSER 212-757-6824 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 2. A.
General Assessment (item 2e from page 2) | 1,370
\$ | | B.
Less payment made with SIPC-6 filed (exclude interest)
07/26/2022 | 696
( | | Date Paid
C.
Less prior overpayment applied | ( | | D.
Assessment balance due or (overpayment) | 674 | | E.
Interest computed on late payment (see instruction E) for______days at 20% per annum | 0 | | F.
Total assessment balance and interest due (or overpayment carried forward) | 674
\$ | | √ the box
G.
PAYMENT:
✔
Check mailed to P.O. Box q
Funds Wired q
ACH q
Total (must be same as F above) | 674
\$ | | H.
Overpayment carried forward | \$(
) | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number):
The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true, correct
and complete. | AUFHAUSER SECURITIES INC
(Name of Corporation, Partnership or other organization) | | 13
JANUARY
23 | (Authorized Signature) | | Dated the
day of
, 20 | PRESIDENT
(Title) | | for a period of not less than 6 years, the latest 2 years in an easily accessible place.
WER
Dates:
Postmarked
Received
Reviewed | This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form | | Calculations
Documentation | Forward Copy | | SIPC REVIE
Exceptions: | | | | | {23}------------------------------------------------ #### **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** Amounts for the fiscal period beginning and ending 01/01/2022 12/31/2022 | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | Eliminate cents
1,373,029
\$ | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------| | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | (2) Net loss from principal transactions in securities in trading accounts. | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | (4) Interest and dividend expense deducted in determining item 2a. | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | (7) Net loss from securities in investment accounts. | | | Total additions | | | 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | | | (2) Revenues from commodity transactions. | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | 481451 | | (4) Reimbursements for postage in connection with proxy solicitation. | | | (5) Net gain from securities in investment accounts. | | | (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date. | | | (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue
related to the securities business (revenue defined by Section 16(9)(L) of the Act). | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | (Deductions in excess of \$100,000 require documentation) | | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13,
Code 4075 plus line 2b(4) above) but not in excess
0
\$
of total interest and dividend income. | | | (ii) 40% of margin interest earned on customers securities
\$
accounts (40% of FOCUS line 5, Code 3960). | 0 | | Enter the greater of line (i) or (ii) | | | Total deductions | | | 2d. SIPC Net Operating Revenues | 891,878
\$ | | 2e. General Assessment @ .0015 | 1,337
\$
(to page 1, line 2.A.) | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.