# CHATSWORTH SECURITIES LLC X-17A-5 (2020-03-02) — Broker-dealer annual report - Company: CHATSWORTH SECURITIES LLC - Form: X-17A-5 - Filed: 2020-03-02 - Period: 2019-12-31 - Accession: 0001011766-20-000002 - CIK: 1011766 - File #: 8-49199 - Material weakness: No - Auditor: Ohab and Company, P.A. - Auditor location: Maitland, FL - Contact: David Barnett - Phone: 2124903113 - Signed by: Ralph DiFiore (Senior Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1011766/000101176620000002/chatspublic19.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden ho1.1rs per response ...... 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTlll** SEC FILE NUMBER 8-49199 FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING 01/01/2019 | | AND ENDING 12/31/2019 | | | |-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|-----------------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: Chatsworth Securities LLC | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRMl.D.NO. | | | 95 East Putnam Avenue | | | | | | | (No. and Street) | | | | | | | | 06830 | | | | | (Zip Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | David Barnett | | | (212) 490-3113 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Ohab and Company, P.A. | | | | | | ------ | ·· ·· ,,·--
·· --- ---- ·--'--'~ --,
(Name - if individual, state last, first, middle name) | - ·.- | | | | 100 E. Sybelia Avenue, Suite 130 Maitland | | FL | 32751 | | | (Address) | (City) | (State) | (Zip Code) | | | | | | | | | CHECK ONE: §
Certified Public Accountant | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant mu.st be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* > Potential 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. SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** **1,** Ralph Difiore \_ \_ \_ \_ \_\_\_\_ , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Chatsworth Securities LLC \_ \_\_\_\_\_\_\_\_\_ --'--- ------- --, as - - - --- - - --- - -·-----·· ·- ----- ---- of Decemb~r 31 - --·--·------····----·· 20\_,\_19\_~-· are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: This report\*\* contains (check all applicable boxes): **12]** (a) Facing Page. **0** (b) Statement of Financial Condition. Senior Managing Direct r --·~ Title O (c) Statement oflncome (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. (e) Statement of Changes in Stockholders' Equity 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 Rule 15c3-3. (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. **0** (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. **0** (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. § (1) An Oath or Affirmation. (m) A copy of the SIPC Supplemental Report. (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.l 7a-5(e)(3).* {2}------------------------------------------------ # CHATSWORTH SECURITIES LLC # STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 **PUBLIC** {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) I 00 E. Sybelia Ave. Suite 130 Maitland, FL 32751 *Certified Public Accountants* Email: oam<@ohabco.com Telephone 407-740-7311 Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members' of Chatsworth Securities LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Chatsworth Securities LLC as of December 31, 2019, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition ,presents fairly, in all material respects, the financial position of Chatsworth Securities LLC as of December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Chatsworth Securities LLC's management. Our responsibility is to express an opinion on Chatsworth 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 Chatsworth Securities LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. .... We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding tbe amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Chatsworth Securities LLC's auditor since 2018. Maitland, Florida February 26, 2020 {4}------------------------------------------------ # CHATSWORTH SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018 ## ASSETS | Cash and cash equivalents | \$ | 34,028 | |------------------------------------------|----|---------| | Furniture and equipment, at cost, net of | | | | accumulated depreciation of \$89, 191 | | | | Prepaid expenses | | 667 | | Accounts receivable | | 1,800 | | Security deposit | | 3,400 | | Right of use lease asset | | 108,488 | | | | | | TOT AL ASSETS | \$ | 148,343 | # LIABILITIES AND MEMBERS' EQUITY | LIABILITIES | | |----------------------------------------|---------------| | Accrued expenses and other liabilities | \$
13,063 | | Lease obligation | 116,658 | | | | | TOTAL LIABILITIES | \$
129,721 | | | | | MEMBERS' EQUITY | 18,622 | | | | | | \$ | | TOTAL LIABILITIES AND MEMBERS' EQUITY | 148,343 | {5}------------------------------------------------ #### CHATSWORTH SECURITIES LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 #### 1. NOTES ON SIGNIFICANT BUSINESS ACTIVITIES Chatsworth Securities LLC, (the "Company") was organized under the Limited Liability Company Laws of the State of New York in March 1996. The Company is a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA'). The principal source of the Company's income is through private placement of securities. In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in market (market risk) or failure of the other party to the transaction to perform (credit risk) exceeds the amounts recorded for the transaction. The Company's policy is to continuously monitor its exposure to market and counter-party risk through the use of a variety of financial position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which it conducts business. #### 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates. The Company maintains cash and cash equivalents with financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). Cash deposited with a single brokerage institution is insured up to \$500,000 per customer, including up to \$250,000 for cash deposits, by the Securities Investor Protection Corp. ("SIPC"). The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents. #### 3. CONCENTRATION OF CREDIT RISK Ten clients accounted for 89.93% of consulting and private placement revenue for the current year. The top three clients accounted for 65. 72% of consulting and private placement revenue for the current year. {6}------------------------------------------------ ## CHATSWORTH SECURITIES LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 #### 4. INCOME TAXES The Company is recognized as a Limited Liability Company (an "LLC") by the Internal Revenue Service. As an LLC, the Company is not subject to income taxes. The Company's income or loss is reportable by its members on their individual tax returns. Uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. The tax years that remain subject to examination are 2016, 2017, 2018 and 2019. For the year ended December 31, 2019 management has determined that there are no material uncertain income tax positions. ## 5. RELATED PARTY TRANSACTION The Company shares office space and other overhead with a company related by common ownership. For the year ended December 31, 2019, the Company elected to waive the rent and certain other expenses that would otherwise be charged to the related party. #### 6. RULE 15C3-3 The Company is exempt from the provisions of Rule 15c3-3 under paragraph (k)(2)(i) in that the Company carries no margin accounts, promptly transmits all customer funds and delivers all securities received, does not otherwise hold funds or securities for or owe money or securities to customers and effectuates all financial transactions on behalf of customers on a fully disclosed basis. #### 7. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission's Net Capital 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. At December 31, 2019, the Company had net capital of \$12, 755 which exceeded the minimum requirement of \$5,000 by \$7,755. At December 31, 2019 the Company's ratio of aggregate indebtedness to net capital was 1.67 to 1. {7}------------------------------------------------ ## CHATSWORTH SECURITIES LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 # 8. COMMITMENTS AND CONTINGENCIES Amounts reported in the balance sheet as of December 31, 2019 were as follows: | Right of use lease asset | \$ 108,488 | |--------------------------|------------| | Lease liability | \$ 116,658 | The Company leases office space in Greenwich, CT, under a non-cancelable lease agreement. The lease expires in 2020 and contains provisions for escalations based on increases in certain costs incurred by the lessor. Future minimum rent payments on the lease are as follows: > Year Ended December 31 2020 \$ 118,611 ## 9. COMPANY CONDITION The Company has a loss of \$119,386 for the year ended December 31, 2019, and has received capital contributions from one of its Members for working capital. The Company Member has agreed to provide capital contributions to the Company, as necessary, for it to continue operations and to maintain compliance with minimum net capital requirements. Management expects the Company to continue as a going concern and the accompanying financial statements have been prepared on a going-concern basis without adjustment for realization in the event the Company ceases to continue as a going concern. #### 10. SUBSEQUENT EVENTS Events have been evaluated through the date that these financial statements were available to be issued and-no further information is required to be disclosed. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.