# AMA SECURITIES LLC X-17A-5 (2021-03-31) — Broker-dealer annual report
- Company: AMA SECURITIES LLC
- Form: X-17A-5
- Filed: 2021-03-31
- Period: 2020-12-31
- Accession: 0001069954-21-000001
- CIK: 1069954
- File #: 8-51263
- Material weakness: No
- Auditor: GR Reid Associates, LLP
- Auditor location: Jericho, NY
- Contact: Michael Dockman
- Phone: 212-682-3344
- Signed by: Michael Dockman (President)
Original filing: https://www.sec.gov/Archives/edgar/data/1069954/000106995421000001/amapub.pdf
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| SEC FILE NUMBER |
|-----------------|
| 10 61000 |
| REPORT FOR THE PERIOD BEGINNING January 1, 2020 | | | AND ENDING December 31, 2020 | |
|-----------------------------------------------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------|------------------------------|--------------------------------|
| | | MM/DD/YY | | MM/DD/YY |
| | | A. REGISTRANT IDENTIFICATION | | |
| NAME OF BROKER-DEALER: AMA SECURITIES, LLC | | | OFFICIAL USE ONLY | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | |
| 484 PACIFIC STREET, 3RD FL | | | | |
| | | (No. and Street) | | |
| | STAMFORD | CT | | 06902 |
| (City) | | | | (Zip Code) |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michael Dockman | | | 212-682-3344 | |
| | | | | (Area Code - Telephone Number) |
| | | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | |
| GR REID ASSOCIATES, LLP | | | | |
| | | (Name - if individual, state last, first, middle name) | | |
| 7600 Jericho Tpke., Suite 400 Woodbury | | | NY | 11797 |
| (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 | | |
| | | | | |
| | | | | |
| I career of a creamption for the parting promote to agreed by the openion of an segment of any segment of | | | | |
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## **OATH OR AFFIRMATION**
I, Michael Dockman , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of AMA Securities, LLC --------------- - - --------- - --- -------- ---, as of December 31 2020 are tnie and correct. I further swear (or affirm) that
neither the company nor any partner, proprietor, principal qfficer or director has any proprietary interest in any account classified solely as that of a customer, except as follows:
Notary Public
This report.,.. contains (check all applicable boxes):
- 0 (a) Facing Page.
- 0 (b) Statement of Financial Condition.
Title TERESA MARIA OVERMIER NOTARY PUBLIC B.A.LTIMORE OU: TY MARYLA ND
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- D (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).
-
- (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
- § (d) Statement of Changes in Financial Condition. (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
- § (g) Computation of Net Capital.
- (h) Computation for Determination of Reserve Requirements Pursuant lo Rule 15c3-3.
- (i) Information Relating to the Possession or Control Requirements Under Rule l 5c3-3.
- **0** U) A Reconciliation, including appropriate explanation ofthe Computation ofNet Capital Under Rule l 5c3- l and the Computation for Determination of the **Reserve** Requirements Under Exhibit A of Rule I 5c3-3.
- **0 (k)** A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation.
-
- § (I) An Oath or Affirmation. (m) A copy of the SlPC 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 t,•2atment of certain portions of this filing, see section 240. 17a-5(e)(3).*
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# **AMA SECURITIES, LLC** STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020
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# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Board of Directors and Shareholders of AMA Securities LLC
### **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of AMA Securities LLC as of December 31, 2020, 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 AMA 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 AMA Securities LLC's management. Our responsibility is to express an opinion on AMA 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 AMA 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 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 AMA Securities LLC's auditor since 2019.
Woodbury, NY
March 31, 2021
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### **AMA SECURITIES, LLC** STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020
| ASSETS | |
|---------------------------------------|----------------|
| Cash | \$224,
11 8 |
| Other assets | 1,958 |
| Total assets | \$226,076 |
| LIABILITIES AND MEMBER'S EQUITY | |
| Liabilities: | |
| Accounts payable and accrued expenses | \$ 62,188 |
| Total liabilities | __ 62118~ |
| Member's Equity: | |
| Total member's equity | l63 888 |
| Total liabilities and member's equity | \$226,076 |
*The accompanying notes are an integral part of this statement.*
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# **AMA SECURITIES, LLC** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
### **Note 1- Nature of Business**
AMA Securities, LLC ("the Company") is a broker/dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is wholly owned by AMA CP Holdings LLC ("Holdings").
The Company provides investment advice and issues fairness opinions for companies in the transportation and energy industries.
#### **Note 2** - **Summary of Significant Accounting Policies**
#### **a)** *Basis of Presentation*
The financial statements are prepared in accordance with accounting principles generally accepted in the Unites States of America.
#### *b) New Accounting Pronouncements*
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the F ASB 's guidance on the impairment of financial instruments. The ASU adds to GAAP, an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, the Company recognizes as an allowance, its estimate of lifetime expected credit losses, which the F ASB believes will result in more timely recognition of such losses, if any. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for availablefor-sale debt securities. The new CECL standard became effective on January 1, 2020, and the Company applied the modified retrospective method of adoption which resulted in no adjustment to member' s capital as of the effective date.
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# AMA SECURITIES, LLC NOTES TO TI-IE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
### Note 2 - **Summary of Significant Accounting Policies (continued)**
#### *c) Revenue Recognition*
Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue due to depict 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 those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company applied the modified retrospective method of adoption which resulted in no adjustment to member's equity as of January 1, 2018. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts.
The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities ( deferred revenue in the accompanying statement of financial condition).
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### **AMA SECURITIES, LLC** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
#### **Note 2** - **Summary of Significant Accounting Policies** ( **continued)**
#### d) *Use of Estimates*
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
#### *e) Income Taxes*
The Company is a limited liability company and treated as a disregarded entity for federal and state income tax purposes. As such, it does not pay any taxes. The Company's income or loss is taken into consideration in the tax returns of the members of Holdings for federal and state income tax purposes.
#### **Note 3** - **Revenue**
Fee income earned by the Company from two clients amounted to \$1,625,000 for the year-ended December 31, 2020.
*Revenue consists of the following:*
| Revenue Item Breakdown | Amount | Timing of Recognition |
|------------------------|-------------|-----------------------|
| Debt Placement Fee | \$1,500,000 | When earned |
| Fairness Opinion | 125,000 | When earned |
#### **Note 4** - **Related Party Transactions**
Pursuant to the terms of an agreement with Holdings, the Company shall pay \$2,000 per month to meet certain of its operating expenses including rent, telephone, and utilities. The Company paid \$24,000 to Holdings during 2020.
#### **Notes-Net Capital Requirement**
The Company is subject to the Securities and Exchange Commission's Net Capital Rule 15c3-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 1,500%. At December 31, 2020, the Company's net capital of \$161,930 was \$111,930 in excess of its required net capital of \$50,000. The ratio of aggregate indebtedness to net capital was 38.4%.
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## **AMA SECURITIES, LLC** NOTES TO TIJE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
### Note 6- **Compliance with Rule 15c3-3**
The Company has no possession or control obligations under SEA Rule 15c3-3(b) or reserve deposit obligations under SEA Rule 15c3-3(e) because its business is limited to private placements of securities and investment advisory services.
### Note 7 - **Subsequent Events**
The Company has performed an evaluation of events that have occurred subsequent to December 31, 2020 and through March 31, 2021, the date of the filing of this report. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of December 31, 2020.
#### Note 8 - **COVID-19**
A coronavirus (COVID-19) was first reported in China. In January 2020, the World Health Organization declared it a Public Health Emergency of International Concern. This contagious disease outbreak, which has continued to spread to additional countries, and any related adverse public health developments, could adversely affect the Company's customers, service providers and suppliers as a result of quarantines, facility closures, and travel and logistics restrictions in connection with the outbreak. More broadly, the outbreak could affect workforces, economies and financial markets globally, potentially leading to an economic downturn. The ultimate impact of the COVID-19 is uncertain. Management continues to monitor the outbreak, however, as of the date of these financial statements the potential impact of such on the Company's business and operations cannot be reasonably estimated.
The U.S. enacted the CARES Act which is an economic stimulus package to assist eligible small businesses to cover certain operational costs due to the adverse impact of COVID-19. In addition, the CARES Act included temporary tax law changes to provide additional relief to U.S. businesses and individual taxpayers.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.