# SECURE PLANNING, INC. X-17A-5 (2020-02-25) — Broker-dealer annual report - Company: SECURE PLANNING, INC. - Form: X-17A-5 - Filed: 2020-02-25 - Period: 2019-12-31 - Accession: 0001026580-20-000001 - CIK: 1026580 - File #: 8-49737 - Material weakness: No - Auditor: Larry D. Liberfard, P.C. - Auditor location: Norwood, MA - Contact: Edward Mallon - Phone: 603-433-5515 - Signed by: Lisa Dugan (Senior Vice President) Original filing: https://www.sec.gov/Archives/edgar/data/1026580/000102658020000001/public.pdf --- {0}------------------------------------------------ # LARRY D. LIBERFARB, P.C. CERTIFIED PUBLIC ACOOUNTANTS AND FINANCIAL ADVISORS **11 Vanderbilt Avenue, Suite 220, Norwood, Ma...\$ | The accompanying notes are an integral part of these financial statements. {3}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS** # **DECEMBER 31, 2019** ## **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # Organization and Nature of Business The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority, LLC (FINRA). The Company provides investment, financial planning and advisory services as well as broker-dealer services for its clients. #### Revenue Recognition The Company's primary source of revenue is derived from fee income based on total assets under management. Fee income on these assets is recorded as revenue in the period it is earned. Customers' securities transactions are recorded on the settlement date basis. The related commission income and expense are also recorded on the settlement date basis. Generally accepted accounting principles requires revenue to be recognized on a trade date basis. There is no material difference between the trade and the settlement date. # Adoption of ASC Topic 606 Effective January **1,** 2018, the Company adopted ASC Topic 606, revenue from contracts with customers ("ASC Topic 606). The new revenue reconciliation guidance requires that an entity recognizes revenue to detect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for tllose goods or services. #### Property and Equipment Property and equipment are recorded at cost. The cost of maintenance and repairs is charged to operations as illcurred. Major improvements to property and equipment are capitalized. Depreciation is computed using either the straight line method or accelerated methods over the estimated useful lives of the asset, ranging from 5 to 40 years. #### Advertising Advertising costs are expensed as they are incurred. Advertising expense for the year ended December 31, 2019 was \$15,131. {4}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS** # **DECEMBER 31, 2019** #### **NOTE 1 - SUMl\fARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** #### Income Taxes During 2019the Company elected to be treated as a single member LLC for federal and state income tax purposes. The Company's taxable income or losses, as well as certain other tax attributes, are passed through directly to the sole member, and are reported on his individual income tax return. Consequently, those financial statements do not include any provision for federal or state income tax expense or liability. ### Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires managememt to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from these estimates. #### **NOTE 2 - NET CAPITAL** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule I Sc3-l ), 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 IS to I (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to I). At December 31, 2019 the Company had net capital of\$180,718 which was \$175,718 in excess of its required net capital of \$5,000. The Company's net capital ratio was .29 to I. {5}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2019** #### **NOTE 3** - **PROPERTY AND EQUIPMENT** Property and equipment consisted of the following at December 31, 2019: | Leasehold improvements | \$116,513 | |-------------------------------|-----------| | Furniture and fixtures | 146,936 | | | 263,449 | | Less Accumulated Depreciation | 238,184 | | Property and equipment, net | \$ 25,265 | Depreciation expense for 2019 was \$14,202 #### **NOTE 4** - **CONCENTRATIONS OF CREDIT RISK** The Company is engaged in various trading and brokerage activities whose counterparties include the general public. In the event counterparties do not fulfill their obligations the Company may be exposed to risk. The risk of default depends on the credit worthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty with which it conducts business. At times, the Company maintains cash in bank accounts in excess of the established limit insured by the Federal Deposit Insurance Corporation (FDIC). #### **NOTE 5** - **CONCENTRATIONS** At December 31, 2019, 91% of commissions receivable were due from one company. Approximately 78% of2019 revenue was earned from this company. #### **NOTE 6** - **EMPLOYEE BENEFITS** The Company has a 40 I (k) retirement plan covering substantially all employees. Under the plan the Company contributes an amount equal to 3% of the employee's gross annual wages. Employees may defer up to 15% of their wages, not to exceed \$19,000. The Company also has a profit sharing component under the plan. All profit sharing contributions are at the discretion of management. The Company's total contribution to the plan was \$17,404 for the year ended December 31, 2019. {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** #### **DECEMBER 31, 2019** #### **NOTE 7- RELATED PARTY TRANSACTIONS** The Company leases office space in Portsmouth, New Hampshire from its sole member. Under the terms of the lease, the required monthly payment is \$6,200. The Company is also responsible for the payment of property taxes, utilities, insurance, maintenance and improvements related to the building. The company leases office space as tenants at will. Total rent expense paid under this lease for 2019 was \$74,400. There are no amounts due to the member at December 3 I, 2019. Because this is a related party lease, operating results or financial position of the Company could differ significantly from those that would have been obtained if this was an arm's length transaction. #### **NOTE 8** - **FAIR VALUE** F ASB 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 I inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Level 2 inputs are inputs ( other than quoted prices included within level I) that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for the asset or liability and rely on management's own assumption about the assumptions that market participants would use in pricing the asset or liability. (fhe unobservable inputs should be developed based on the best infomiation available in the circumstances and may include the Company's own data.) A qualifying asset or liabilities level within the framework is based upon the lowest level of any input that is significant to the fair value measurement. The Company's qualifying assets or liabilities are recorded at fair value using Level I inputs. {7}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** ### **DECEMBER 31, 2019** ### **NOTE 9 - SUBSEQUENT EVENTS** Management has evaluated subsequent events through February 18, 2020, the date on which the financial statements were available to be issued. There were no subsequent events that require adjustment to the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.