# AET FINANCIAL SERVICES, LLC X-17A-5/A (2022-05-03) — Broker-dealer annual report - Company: AET FINANCIAL SERVICES, LLC - Form: X-17A-5/A - Filed: 2022-05-03 - Period: 2021-12-31 - Accession: 0001012059-22-000007 - CIK: 1012059 - File #: 8-49217 - Type: Broker-dealer - Material weakness: No - Auditor: Michael T. Remus, CPA - Auditor location: HAMILTON, NJ - Contact: MICHAEL S. CARDELLO - Phone: 631-595-5317 - Email: mcardello@cxgllc.com - Website: cxgllc.com - Signed by: Christopher Driscoll (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1012059/000101205922000007/aetx17a5p.pdf --- {0}------------------------------------------------ PUBLIC 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 ## ANNUAL REPORTS FORM X-17A-5 PART III | 2000 0000 | Comments of the control of the contribution of the contribution of the contribution of the contribution of the contribution of the contribution of the contribution of the con | | |-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | SEC FILE NUMBER | | | | 8-48217 | | FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | 12/31/2021
01/01/2021
AND ENDING
FILING FOR THE PERIOD BEGINNING | | | | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--|----------|--------------------------------------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: AET Financial Services, LLC | | | | | | | | | 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.) | | | | | | | | | 14 Scott Ave | | | | | | | | | | (No. and Street) | | | | | | | | Selden | NY | | | 11784 | | | | | (City) | (State) | | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | Michael S Cardello | 631-595-5317 | | | mcardello@cxgllc.com | | | | | (Name) | (Email Address)
(Area Code - Telephone Number) | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | Michael T Remus CPA | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | PO Box 2555 | Hamilton Square | | NJ | 08690 | | | | | (Address) | (City) | | (State) | (Zip Code) | | | | | 02/23/2010 | | | 3598 | | | | | | (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. {1}------------------------------------------------ #### OATH OR AFFIRMATION i, CHRISTOPHER D. DRISCOLL 2 2 3 swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of AET Financial Services, LLC Services, as of December 31 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. Signature: Notarv Public MICHAEL S. CARDELLO Title: Notary Public, State of New YokkEO No. 01CA6272334 Qualified in Suffolk County Commission Expires Nov. 19, 2024 #### 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 on 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 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 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 240.17a-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). - O (z) Other: - \*\* To request confidential treatment of this fling, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {2}------------------------------------------------ ## AET Financial Services, LLC ## STATEMENT OF FINANCIAL CONDITION as of December 31, 2021 This report is filed as a Public Document in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {3}------------------------------------------------ ## MICHAEL T. REMUS Certified Public Accountant P.O. Box 2555 Hamilton Square, NJ 08690 Tel: 609-540-1751 Fax: 609-570-5526 ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member AET Financial Services, LLC ### Opinion on the Financial Statement I have audited the accompanying statement of financial condition of AET Financial Services, LLC as of December 31, 2021, and the related notes (collectively referred to as the financial statement). In my opinion, the statement of financial condition presents fairly, in all material respects, the financial position of AET Financial Services, LLC as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion This financial statement is the responsibility of AET Financial Services, LLC's management. My responsibility is to express an opinion on AET Financial Services, LLC's financial statement based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and am required to be independent with respect to AET Financial Services, 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. I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I 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. My 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. My 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. I believe that my audit provides a reasonable basis for my opinion. Michael 7. Remus I have served as AET Financial Services, LLC's auditor since 2021. Michael T. Remus, CPA Hamilton Square, New Jersey March 17, 2022 {4}------------------------------------------------ # AET Financial Services, LLC STATEMENT OF FINANCIAL CONDITION December 31, 2021 ## ASSETS | Current Assets | | | |----------------------|---|--------| | Cash | S | 51,755 | | | | | | Total Current Assets | | 51,755 | | | | | | Total Assets | | 51,755 | ## LIABILITIES AND MEMBER EQUITY ## Current Liabilities | Accounts payable | S | | |----------------------------------------|---|--------| | Total Current Liabilities | | 0 | | Total Liabilities | | 0 | | Commitments and Contingencies (Note F) | | | | Member Equity | | 51,755 | | Total Liabilities & Member Equity | S | 51,755 | See accompanying notes. {5}------------------------------------------------ ### A. ORGANIZATION AND NATURE OF BUSINESS: AET Financial Services, LLC (the "Company") formerly known as Liora Partners, LLC was organized on February 29, 1996 under the laws of the State of Delaware. The Company is a broker-dealer registered with the SEC and is a member of the Financial Industry Regulatory - FINRA and the Securities Investor Protection Corporation - SIPC. #### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: B. ### Basis of Presentation The financial statements and accompanying notes are prepared in accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed. #### Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at December 31, 2021, and the reported anounts of revenues and expenses for the years then ended. Actual results and amounts may differ from the estimates. ### Cash and 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. The company has adopted the indirect method of presenting the statement of cash flows in accordance with current authoritative pronouncements. There were no cash equivalents at December 31, 2021. Cash is held at a financial institution and is insured by the Federal Deposit Insurance Corporation. #### Revenue Recognition All revenue (if any), is recorded in accordance with ASC 606, is recognized when: (i) a client has been identified, (ii) the performance obligation(s) in the contract have been identified, (ii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation over time or point in time. The Company did not earn any revenue during the year ended December 31, 2021. #### Allowance for Doubtful Accounts For financial reporting purposes, the Company utilizes the reserve method to account for possible uncollectible accounts. Accounts deemed to be uncollectible are charged against the year that the account is determined to be uncollectible. For the years ended December 31, 2021, management has determined that no reserve for uncollectible accounts is necessary. {6}------------------------------------------------ ### Income Taxes The Company is organized as a Limited Liability Company LLC for federal income tax purposes. In 2016, the LLC elected to be taxed as an S Corporation effective for the year ended December 31, 2016. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements. The amount of income or loss allocable to the member are subject to examination by federal and state taxing authorities. In the event of an examination, the tax liability of the member could be changed if an adjustment in the Company's income or loss is ultimately determined by the taxing authorities. Certain transactions may be subject to accounting methods for federal and state income tax purposes which differ from the accounting methods used in preparing the financial statements. Accordingly, the net income or loss of the member and the resulting balances in the members' capital account reported for federal and state income tax purposes may differ from the balances reported for those same items in these financial statements. The Company recognizes and measures its unrecognized tax benefits in accordance with ASC Topic 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of the financial reporting period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. Management has determined that the Company has no uncertain tax positions that would require financial statement recognition as of December 31, 2021. This determination will always be subject to ongoing evaluation as facts and circumstances may require. The Company remains subject to U.S. federal and state income tax audits for all years subsequent to 2017. In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2021. #### Advertising and Marketing Advertising and marketing costs (if any) are expensed as incurred. #### General and Administrative Expenses General and administrative costs are expensed as incurred. #### Fair Value Hierarchv FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. 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 FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities that has the ability to access at the measurement date. - Level 2. Inputs other than quoted prices included in Level 1 that are observable for the assets or liability either directly or indirectly. - Level 3. Inputs are unobservable for the assets or liability. {7}------------------------------------------------ #### Fair Value Hierarchy- continued The availability of observable inputs can vary from security to security and is affected by a wide variety of factors. including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent the valuation is based on models or inputs that are less observable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining the fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. For further discussion of fair value, see "Note 6 Fair Value" #### C. Net Capital Requirements The Company, as a registered broker-dealer in securities is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1). The Company has elected to operate under that portion of the Rule which requires the Company maintain "het capital" equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness, as those terms are defined in the Rule. At December 31, 2021, the Company had net capital of \$51,755, which was \$46,755 in excess of its required minimum net capital of \$5,000. The Company had an AI/NC ratio of 0%. Advances to affiliates, contributions and other withdrawals are subject to certain notification and other requirements of Rule 15c3-1 and other regulatory rules. The Company claims an exemption from the provisions of Rule 15c3-3 pursuant to paragraph (k) (1) of the Rule. #### Concentration of Credit Risk D. During the year ended December 31, 2021 the Company did not have any trade accounts receivable and no revenues were earned. The Company maintains its cash at a financial institution in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2021. As of December 31, 2021 there were no cash balances held in any accounts that were not fully insured. #### E. Fair Value Cash, trade receivables (if any), accounts payable and other current liabilities (if any) are reflected in the financial statements at carrying value which approximates fair value because of the short-term maturity of these instruments. #### F. Commitments and Contingencies Pursuant to Securities and Exchange Commission Rule 15c3-1(e)(2) the Company may not authorize distributions to its members if such distributions cause the Company's net capital to fall below 120% of the Company's minimum net capital requirement. As of December 31, 2021 the Company was not in violation of this requirement. The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities, and had not been named as a defendant in any lawsuit at December 31, 2021 or during the year then ended. {8}------------------------------------------------ #### Anti-Money Laundering Policies and Procedures G. The Company is required to implement policies and procedures relating to anti-money laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on customers who open accounts with the Company. At December 31, 2021 the Company had implemented such policies and procedures. #### H. Subsequent Events The Company has evaluated subsequent events occurring after the statement of financial condition date through the date of March 17, 2022 which is the date the financial statements were available to be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements. #### I. COVID 19 In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While management believes the Company is in an appropriate position to weather the potential short-term effects of these world-wide events, the direct and long-term impact to the Company and its financial statements is undetermined at this time. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.