# MCM SECURITIES LLC X-17A-5 (2025-02-19) — Broker-dealer annual report
- Company: MCM SECURITIES LLC
- Form: X-17A-5
- Filed: 2025-02-19
- Period: 2024-12-31
- Accession: 0001019951-25-000001
- CIK: 1019951
- File #: 8-49496
- Type: Broker-dealer
- Material weakness: No
- Auditor: Frost, PLLC
- Auditor location: Little Rock, AZ
- Contact: Nancy Robinson
- Phone: 518-687-7363
- Email: jpeterson@mcmsecurities.com
- Website: mcmsecurities.com
- Signed by: John A. Peterson (Chief Executive Officer)
Original filing: https://www.sec.gov/Archives/edgar/data/1019951/000101995125000001/mcmsecuritiesllc.pdf
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December 31, 2024
Financial Statements And Supplementary Information
**With**
Report of Independent Registered Public Accounting Firm
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
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# **ANNUAL REPORTS FORM X-17A-5 PART** Ill
| SEC FILE NUMBER | |
|-----------------|--|
| 8-49496 | |
.,
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|-----------------------------------------|
| FILING FOR THE PERIOD BEGINNING O 1/01/2024 | | AND ENDING 12/31/2024 | |
| | MM/DD/VY | | MM/DD/VY |
| | A. REGISTRANT IDENTIFICATION | | |
| NAME oF FIRM: MCM Securities LLC | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
l:!J Broker-dealer
□ Check here if respondent Is also an OTC derivatives dealer | □ Security-based swap dealer | D Major security-based swap participant | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | |
| 99 Park Avenue - | Suite 1560 | | |
| | (No. and Street) | | |
| New York | NY | | 10016 |
| (City) | (State) | | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | |
| John A. Peterson | (518) 687-7300 | | jpeterson@mcmsecurities.com |
| (Name) | (Area Code -Telephone Number) | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Frost, PLLC | | | |
| | (Name - if individual, state last, first, and middle name) | | |
| 425 Capitol Avenue -
3300 | Little Rock | AR | 72201 |
| (Address)
12/21/2010 | (City) | (State)
5348 | (Zip Code) |
| rte of RegJ,t,.tloa with PO\OB)(lf appH~ble) | | | (PCAOB ReOstratloa N,mbe,, [fapplkab~)I |
| | 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.l 7a-S(e)(l)(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 0MB control number.
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#### **OATH OR AFFIRMATION**
| I, John A. Petereson | | | swear (or affirm) that, to the best of my knowledge and belief, the |
|--------------------------------------------|---------------|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| financial report pertaining to the firm of | | MCM Securities LLC | as of |
| 12/31 | 2~ | | is true and correct. I further swear (or affirm) that neither the company nor any |
| | | | 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. | | | |
| | | KAREN A SCHLEDERER | |
| | | Notary f'ublic, State of New York | rL
Sign~ |
| | | No. 01 SC6158003 | J
f:::r* C, ~lc,---- |
| | Commission Ex | 2~
Qualified in Rensselaer County, J:l 1 /J
ecember 18, | Title: |
| | | | Chief Executive Officer |
| ;!446 2(}
J;Securities and Exchange Commission 11 | |
| Report oflndependent Registered Public Accounting Firm 12 | |
| Exemption Report 13 | |
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# **Report of Independent Registered Public Accounting Firm**
The Member MCM Securities LLC Troy, New York
# **Opinion on the Financial Statements**
We have audited the accompanying statement of financial condition of MCM Securities LLC as of December 31, 2024, and the related statements of operations, changes in member's equity, and cash flows for the year then ended, and the related note~;lectively referred to as the "financial statements"). In our opinion, the financial statements present fairl , in all material respects, the financial position of MCM Securities LLC at December 31, 2024, andrt results of its operations and its cash flows for the year then ended in conformity w~counting principles ge7er lly accepted in the United States of America. *')* **.,1/**
# **Basis for Opinion**
These financial st4fe~nts are the responsibility of MCM Secul-Jtiesl LLC's management. Our responsibility is to expresslan""ol>inion on MCM Securities LLC's financiiI-staiements 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 MCM Securities LLC in accordance with the U.S. federals~~!~ laws and the applic('1~es and regulations of the Securities and Exchange Commission and the~B. V
**We conducted** our **audit in accordance st• standrurds of the PCAOB. Those standrurds** require that we plan and perform the audit to o reasonable assurance about whether the financial statements are free of material misstatement, er 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 our audit provides a reasonable basis for our opinion.
> Little Rock, Arkansas j Fayetteville, Arkansas I Raleigh, North Carolina Scottsdale, Arizona I Yuma, Arizona I Naples, Florida I **www.frostpllc.com**
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#### **Supplemental Information**
The supplemental information on page 11 has been subjected to audit procedures performed in conjunction with the audit ofMCM Securities LLC's financial statements. The supplemental information is the responsibility of MCM Securities LLC'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 Securities Exchange Act of 1934 Rule 17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
Independent Registered Public Accounting Firm
We have served as MCM Securities LLC's auditor since 2012.
Little Rock, Arkansas February 18, 2025
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#### Statement of Financial Condition
#### As of December 31, 2024
| Cash
Deposit on account
Prepaid expenses | \$
64,574
2,850
6,900 |
|------------------------------------------------|--------------------------------|
| Total assets | \$
74,324 |
| Liabilities and Member's Equity | |
| Liabilities | |
| Accounts payable | \$
308 |
| Accrued expenses | 25,206 |
| Total liabilities | 25,514 |
| Member's equity | 48,810 |
| Total liabilities and member's equity | \$
74,324 |
The accompanying notes are an integral part of these financial statements.
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#### Statement of Operations
For The Year Ended December 31, 2024
| Revenues | |
|------------------------------------------------|----------------|
| Commission income | \$
63,462 |
| | |
| Net Revenues | \$
63,462 |
| Operating expenses | |
| Salary and benefits | \$
47,251 |
| Professional fees | 61,503 |
| Office supplies and expenses | 1,535 |
| Regulatory fees and expenses | 8,626 |
| IT Communications | 2,606 |
| Broker/dealer expense | 5,369 |
| Broker commissions/Sales rebates and discounts | 4,125 |
| Occupancy expense | 19,602 |
| Insurance | 882 |
| Miscellaneous taxes, licenses and permits | 883 |
| Total operating expenses | 152,382 |
| Net Loss | \$
(88,920) |
The accompanying notes are an integral part of these financial statements.
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# Statement of Changes in Member's Equity
# For The Year Ended December 31, 2024
| Balance -
January 1, 2024 | \$
378,605 |
|--------------------------------|---------------|
| Contributions from member | 39,500 |
| Distributions to member | (280,375) |
| Net loss | (88,920) |
| | |
| Balance -
December 31, 2024 | \$
48,810 |
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#### Statement of Cash Flows
#### For The Year Ended December 31, 2024
| Cash flows from operating activities | |
|-----------------------------------------------|----------------|
| Net Loss | \$
(88,920) |
| Adjustments to reconcile net loss to net cash | |
| used by operating activities | |
| Prepaid expenses | 734 |
| Accounts payable and accrued expenses | (57,21 I) |
| Net cash used by operating activities | (145,397) |
| Cash flows from financing activities | |
| Contributions from member | 39,500 |
| Distributions to member | (280,375) |
| Net cash used by financing activities | (240,875) |
| Net decrease in cash | (386,272) |
| beginning of year
Cash - | 450,846 |
| end of year
Cash - | \$
64,574 |
The accompanying notes are an integral part of these financial statements.
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#### **Notes to Financial Statements**
# **As of December 31, 2024**
### **1. Nature of Operations**
MCM Securities LLC (the "Company") was organized in September 1996 as a Delaware Limited Liability Corporation, is a broker/dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority. The Company's sole member is Millennium Credit Markets, LLC (the "Parent"). The Company shall continue in existence through December 2050, or until terminated by the member.
The Parent will make capital contributions as needed to enable the Company to meet its obligations and its regulatory capital requirements.
### 2. **Summary of Significant Accounting Policies**
a. **Business activities** -The Company's business activities during 2024 consisted of the following: selling private placements of securities, real estate syndicator, providing financial advice to issuers of private placements.
**b. Income taxes-**The Company is included in the federal income tax returns filed by its sole member, the Parent. The Company is not a tax paying entity and distributes its pro rata share of income, losses and tax credits to the Parent as provided in the operating agreement.
The Company's policy with respect to evaluating uncertain tax positions is based upon whether management believes it is more likely than not the uncertain tax positions will be sustained upon review by the taxing authorities, then the Company shall initially and subsequently measure the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The tax positions must meet the more-likely-thannot recognition threshold with consideration given to the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information at the reporting date. The Company will reflect only the portion of the tax benefit that will be sustained upon resolution of the position and applicable interest on the portion of the tax benefit not recognized. Based upon management's assessment, there are no uncertain tax positions expected to have a material impact on the Company's financial statements.
The income tax position taken by the Company for any years open under the various statutes of limitations is that it continues to be exempt from income taxes by virtue of its pass-through entity status. Management believes this tax position meets the more-likely-than-not threshold and, accordingly, the tax benefit of this income tax position (no income tax expense or liability) has been recognized for the years ended on or before December 31, 2024.
The Parent is no longer subject to U.S. federal and state examinations by tax authorities for years before 2021. The Parent's federal and state tax returns are not currently under examination. The Parent recognizes interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2024, the Parent did not recognize any interest or penalties. The Parent did not have any interest or penalties accrued at December 31, 2024.
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#### **Notes to Financial Statements**
# **As of December 31, 2024**
# 2. **Summary of Significant Accounting Policies (cont.)**
c. **Use of estimates** - The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures about contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. However, actual results may differ from the estimates and assumptions used in the accompanying financial statements.
d. **Revenue recognition** - The Company accounts for revenue under the provisions of ASC Topic 606. The guidance requires the Company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts.
In general, the Company applies the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when a performance obligation is satisfied.
Management has determined that in years where comm1ss1on revenue is settled, it will be recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker all or a portion of a specific transaction.
#### 3. **Related Party Transactions**
In accordance with an expense support agreement, as amended April 2015 and May 2022, the Parent allocates certain expenses to the Company, including but not limited to salaries and general operating expenses. Such expenses include all costs that the Company derived direct or indirect benefit for which the Company would be responsible if another entity had not agreed to pay these expenses.
The Parent incurs certain costs related to both the Parent and the Company. Shared expenses, such as salary, office supplies, rent and other expenses are recorded as incurred in amounts determined according to a reasonable allocation, applied on a consistent basis. The allocation is derived as an attempt to equate the proportional cost of a service or product to the proportional use of or benefit derived from the service or product. All expenses, with the exception of certain professional fees, broker filing fees, broker commission fees, licenses and permits, are based on allocations from the Parent (this amounted to \$67,764 during 2024). In the event the Company incurred expenses on behalf of the Parent, those expenses would be reimbursed by the Parent.
Substantially all current, prior and futures revenues earned by the Company are derived from transactions controlled by a related party. The related party, indirectly through a series of limited liability companies, owns a majority of the Parent.
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### **Notes to Financial Statements**
# **As of December 31, 2024**
### 4. **Net Capital Requirements**
The Company is subject to the SEC Uniform Net Capital Rule ("SEC Rule 15c3-1 "), which requires the maintenance of minimum net capital at the greater of 6 2/3% of aggregate indebtedness or \$5,000. SEC Rule 15c3-1 also restricts the payments of diviclends in certain cases. At December 31, 2024, the Company had net capital, as defined, of\$39,060, which was \$34,060 in excess of its minimum required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .65 to 1.00 at December 31, 2024.
# 5. **Concentrations of Credit Risk**
The Company maintains it cash balance at one financial institution, which is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At various times throughout the year, such balance may exceed insured amounts. The exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institution. The Company has not incurred any losses on this account.
#### 6. **Segment Reporting**
The Company has a single reportable segment: private placements of securities. The private placements of securities segment provides equity to sponsors of real estate investment projects. The private placements of securities segment derives revenues from commissions. The accounting policies of the private placements of securities segment are the same as those described in the summary of significant accounting policies. The Company's chief operating decision maker ("CODM") is the Chief Executive Officer. The CODM assess performance for the private placement of securities segment and decides how to allocate resources based on net loss that also is reported on the statement of operations as net loss. The measure of segment assets is reported on the statt.ment of financial condition as total assets. The CODM uses net loss to evaluate income generated from segment assets (return on assets) in deciding the reinvest profits into the private placements of securities segment or into other parts of the Company, such as to pay distributions. The Company does not have intra-entity sales or transfers.
Additionally, the CODM uses excess net capital (see Note 4), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay distributions. The Company's operations constitute a single operating segment and; therefore, a single reporting segment, because the CODM manages the business activities using information of the Company as a whole. The Company operates in a single reportable segment; therefore, all financial information, including revenues, expenses, and assets, is included in the accompanying financial statements.
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### **Notes to Financial Statements**
# **As of December 31, 2024**
# 7. **Contingencies**
From time to time, the Company is party to certain claims and legal actions arising in the ordinary course of business. In some cases, plaintiffs are seeking compensatory and punitive damages. It is the opinion of management that the ultimate disposition of these matters will not have a material adverse effect on the Company's financial condition or results of operations. The Company accrues certain claims and legal actions when it is probable and reasonably estimable.
#### **8. Subsequent Events**
The Company evaluated all other events and transactions subsequent to its December 31, 2024 statement of financial condition date and detennined there were no significant events to report through February 18, 2025, which is the date the Company issued its financial statements.
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# Computation of Net Capital Requirement Under Rule 15c3-1 of the Securities and Exchange Commission
# As of December 31, 2024
| Aggregate indebtedness | \$
25,514 |
|------------------------------------------------------------------------------|--------------|
| Minimum required net capital | \$
5,000 |
| | |
| Net capital | |
| Member's equity | \$
48,810 |
| Deductions: | |
| Prepaid expenses and deposit on account | 9,750 |
| Net capital | \$
39,060 |
| Minimum required net capital required to be maintained (the greater | |
| of 1/15 of aggregate indebtedness or \$5,000) | 5,000 |
| Net capital in excess of requirement | \$
34,060 |
| Ratio: aggregate indebtedness to net capital | .65 to 1.00 |
| There are no material differences between this computation and the | |
| computation included in the unaudited FOCUS Part II as of December 31, 2024. | |
\* Prepaid expenses and deposit on account are identified on the Company's computation of net capital as nonallowable assets on Part II of the unaudited FOCUS report.
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# **Report of Independent Ree;istered Public Accounting Firm**
The Member MCM Securities LLC Troy, New York
We have reviewed management's statements, included in the accompanying Exemption Report, in which (I) MCM Securities LLC stated it does not claim an exemption under paragraph (k) of 17 C.F .R. § 240.15c3-3 and (2) MCM Securities LLC is filing the Exemption Report relying on Footnote 74 of the Securities and Exchange Commission ("SEC") Release No. 34-70073 adopting amendments to 17 C.F .R. § 240. l 7a-5 because MCM Securities LLC lim\$.· ~-t business activities exclusively to selling private placements of securities and mergers and acquisiti ns dvisory services, and MCM Securities LLC (a) did not directly or indirectly receive, hold, or othe e we funds or securities for or to customers, ( other than money or other consideration r~Elived and promptly trans~itt ~!n compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or fullQs r~x\_eived and promptly tr s~ed for effecting transactions via subscriptions on a subscription way b~here the funds are y ble to the issuer or its agent and not to MCM Securities LLC); (b) did not carry accounts of or for custo ers; and ( c) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. MCM Securities LLC's management is resp~sible for compliance with the exemption pro;iw..r and its statements.
Our review was cJndled in accordance with the standards of ~e-P~blic Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about MCM Securities LLC's statements. A review is substantially less in scope than an examination, the objective of whicM, the expression of ~o~on on management's statements. Accordingly, we do not express su~pinion. V
Based on our review, we are not aware ~f y material modifications that should be made to management's statements referred to above for th o be fairly stated, in all material respects, based on Rule 15c3-3 under the Securities Exchange Act 934 and in reliance of Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5.
Independent Registered Public Accounting Firm
Little Rock, Arkansas February **18,** 2025
> Little Rock, Arkansas I Fayetteville, Arkansas I Raleigh, North Carolina Scottsdale, Arizona I Yuma, Arizona I Naples, Florida I **www.frostpllc.com**
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# **Exemption Report**
MCM Securities LLC (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)(l) and (4). To the best of its knowledge and belief, the Company states the following:
- (1) The Company does not claim an exemption under paragraph (k) of 17 CFR 240 15c3-3, and
- (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 CFR 240. l 7a-5 because the Company limits is business activities exclusively to selling private placements of securities and mergers and acquisitions advisory services, and the Company (a) did not directly or indirectly receive, hold or otherwise owe funds or securities for or to customers, ( other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription w~y basis where the funds are payable to the issuer or its agent and not to the Company); (b) did not carry accounts of or for customers; and (c) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.
I, John A. Peterson, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct.
By: *QL* I,,
Title: Chief Executive Officer
February 18, 2025
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.