# CHATSWORTH SECURITIES LLC X-17A-5 (2021-02-25) — Broker-dealer annual report
- Company: CHATSWORTH SECURITIES LLC
- Form: X-17A-5
- Filed: 2021-02-25
- Period: 2020-12-31
- Accession: 0001011766-21-000002
- CIK: 1011766
- File #: 8-49199
- Material weakness: No
- Auditor: OHAB & COMPANY, P.A.
- Auditor location: MAITLAND, FL
- Contact: DAVID BARNETT
- Phone: (212)4903113
- Signed by: Ralph DiFiore (Senior Managing Director)
Original filing: https://www.sec.gov/Archives/edgar/data/1011766/000101176621000002/chatspub.pdf
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## CHA TWORTH SECURITIES LLC
### STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2020
**PUBLIC**
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
# **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill**
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# 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 O 1/01/2020
AND ENDING 12/31/2020 | | ----------- |
|------------------------------------------------------------------------------------------|----------------------------------------------------------------------|---------|--------------------------------|
| | 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.) | | | FIRM I.D. NO. |
| 95 EAST PUTNAM AVENUE | | | |
| | (No. and Street) | | |
| GREENWICH | CT | | 06830 |
| (City) | (State) | | (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 & COMPANY, P.A. | | | |
| | (Name - if individual, state last, first, middle name) | | |
| 100 EAST SYBELIA AVENUE, SUITE# 130 | MAITLAND | FL | 32751 |
| (Address) | (City) | (State) | (Zip Code) |
| CHECK ONE: | | | |
| IV I
Certified Public Accountant | | | |
| Public Accountant | | | |
| B | 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 must be supported by a statement of(acts 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 0MB control number.**
SEC 1410 (11-05)
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#### **OATH OR AFFIRMATION**
| | I, RALPH DiFIORE | | , swear ( or affirm) that, to the best of |
|----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | CHATSWORTH SECURITIES, LLC | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
----------------------------------------------, |
| | of DECEMBER 31 | 20 20 | as
are true and correct. I further swear ( or affirm) that |
| | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account |
| | | | |
| | ~
Notary Public | | |
| D (c)
B
(d)
(e)
(f)
□ §
(g)
(h)
(i)
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E] (1) | This report** contains (check all applicable boxes):
0 (a) Facing Page.
E] (b) Statement of Financial Condition.
Statement of Changes in Financial Condition.
Computation of Net Capital.
consolidation.
An Oath or Affirmation.
D (m) A copy of the SIPC Supplemental Report. | of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
Statement of Changes in Liabilities Subordinated to Claims of Creditors.
Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
Information Relating to the Possession or Control Requirements Under Rule l 5c3-3. | Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
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.
D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
D (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 240.17a-5(e)(3).*
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!00 E. Sybelia Ave. Suite 130 Maitland, FL 32751
*Certified Public Accountants* Email; pam@ohabco.com
Telephone 407-740-73 I l 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, 2020, and the related notes (collectively referred to as the "financial statement''). In our opinion, the financial statement presents fairly, In all material respects, the financial position of Chatsworth Securities LLC as of December 31, 2020 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 ii) 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 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 20i 8.
Maitland, Florida
February 22, 2021
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# CHATSWORTH SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31 , 2020
## ASSETS
| Cash and cash equivalents | \$
134,277 |
|------------------------------------------|---------------|
| Furniture and equipment, at cost, net of | |
| accumulated depreciation of \$89, 191 | |
| Prepaid expenses | 8,351 |
| Other asset | 1,500 |
| Security deposit | 5,447 |
| Right of use lease asset | 84,964 |
| | |
| TOTAL ASSETS | \$
234,539 |
## LIABILITIES AND MEMBERS' EQUITY
| LIABILITIES | |
|----------------------------------------|---------------|
| Accrued expenses and other liabilities | \$
39,905 |
| Lease obligation | 85,294 |
| EIDL Loan | 75,000 |
| | |
| TOTAL LIABILITIES | 200,199 |
| | |
| MEMBERS' EQUITY | 34,340 |
| | |
| | |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | \$
234,539 |
The accompanying notes are an integral part of this statement
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## CHATSWORTH SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
### 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.
Security transactions and financing with the clearing broker are classified as operating activities on the statement of cash flows since this is the Company's principal business.
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.
The Company recognizes revenues in accordance with recently issued Accounting Standards Update No. 2014-09 (see note 9). In general, revenues for placement services are recognized upon the closing of the associated funds, and investment advisory fees are recognized when a transaction closes.
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## CHATSWORTH SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 ( continued)
#### 3. 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 2017, 2018, 2019 and 2020. For the year ended December 31, 2020 management has determined that there are no material uncertain income tax positions.
### 5. SBA LOANS
On June 15, 2020 the Company received \$1,000 as an EIDL advance. On June 16, 2020 the Company received \$75,000 on an EIDL loan. This is a 30 year loan, and bears interest at a rate of 3.75% per annum. Repayments start after one year. Both loans are included in the Statement of Financial Condition in Accrued Expenses & Other Liabilities. Initially, the EIDL advance was not subject to forgiveness. However, on January 8, 2021, the SBA issued procedural notice 5000-20075, which stated that EIDL advances would be forgiven. The EIDL loan continues to be carried on the balance sheet; it will be extinguished once the Company receives a forgiveness letter from the lender.
#### 6. RULE 15C3-3
The Company is not claiming an exemption from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by SEC staff. In order to avail itself of this option, the Company has represented that it does not, and will not, hold customer funds or securities.
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## CHATSWORTH SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (continued)
### 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, 2020, the Company had net capital of \$20,042 which exceeded the minimum requirement of \$7,616 by \$12,426. At December 31, 2020 the Company's ratio of aggregate indebtedness to net capital was 5. 70 to 1.
#### 8. 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.