# ESSEX SECURITIES LLC X-17A-5 (2025-03-19) — Broker-dealer annual report - Company: ESSEX SECURITIES LLC - Form: X-17A-5 - Filed: 2025-03-19 - Period: 2024-12-31 - Accession: 0001075680-25-000001 - CIK: 1075680 - File #: 8-51472 - Type: Broker-dealer - Material weakness: No - Auditor: Ferrara CPA - Auditor location: Hamilton, NJ - Contact: Prakash Gupta - Phone: 201-777-7121 - Email: pgupta@essexsecurities.com - Website: essexsecurities.com - Signed by: Prakash Gupta (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1075680/000107568025000001/EssexPublic24.pdf --- {0}------------------------------------------------ # **Essex Securities LLC** *(SEC ID. No 8-51472)* ## *STATEMENT OF FINANCIAL CONDITION* **as of** **December 31, 2024** **And Report of Independent Registered Public Accounting Firm** **This report is filed as a Public Document in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934.** {1}------------------------------------------------ | | UNITED STATES | | | OMB APPROVAL | | | |--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|----------------------------|-------------------------------------------------|--|--| | Public Document | SECURITIES AND EXCHANGE COMMISSION | | | OMB Number: 3235-0123
Expires: EŽǀ. 30, 202ϲ | | | | | Washington, D.C. 20549 | | Estimated average burden | | | | | | | | | 12
hours per response: | | | | | ANNUAL REPORTS | | | SEC FILE NUMBER | | | | | FORM X-17A-5 | | 8-51472 | | | | | | PART III | | | | | | | | | | | | | | | | FACING PAGE | | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | 01/01/24
FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | | 12/31/24 | | | | | | MM/DD/YY | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | | | | | | | Essex Securities LLC
NAME OF FIRM: _______________________________________________________________________ | | | | | | | | | | | | | | | | 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.) | | | | | | | | | | | | | | | | 95 Christopher Columbus Dr., Suite 16-11
_____________________________________________________________________________________ | | | | | | | | (No. and Street) | | | | | | | Jersey City | NJ
_____________________________________________________________________________________ | | | 07302 | | | | (City) | (State) | | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | | | | | | Prakash Gupta | 201-777-7121
_____________________________________________________________________________________ | | pgupta@essexsecurities.com | | | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | Ferrara CPA | | | | | | | | | _____________________________________________________________________________________
(Name – if individual, state last, first, and middle name) | | | | | | | 100 Horizon Center Blvd | Hamilton | NJ | | 08691 | | | | | _____________________________________________________________________________________ | | | | | | | (Address) | (City) | | (State) | (Zip Code) | | | | 12/17/2024 | _____________________________________________________________________________________ | 7259 | | | | | | (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 be covered by the reports of an independent public | | | | | | | CFR 240.17a-5(e)(1)(ii), if applicable. | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | | | | {2}------------------------------------------------ ### **OATH OR AFFIRMATION** | | | financial report pertaining to the firm of
Essex Securities LLC
as of | |-------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | December 31
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•• <;.) • | | :.;,/ | | •. {-.~ | | 1111111 | | ~rfflu ic | | | | This filing** contains (check all applicable boxes): | | | | ~ (a) Statement of financial condition. | | | | ~ (b) Notes to consolidated statement of financial condition. | | | 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). | | | D | (d) Statement of cash flows. | | | D | (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | D | (f) Statement of changes in liabilities subordinated to claims of creditors. | | | D | (g) Notes to consolidated financial statements. | | | D | (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. | | | D | (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | D | (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. | | | 0 | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or | | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | | 0 | (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3•3. | | | D | (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. | | | D | (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. | | | D | (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | | CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | | exist. | | | O | (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. | | | D | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | D | (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. | | | | ~ (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | | D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 | | | | CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | | D | (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. | | | 0 | (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17
CFR 240.18a-7, as applicable. | | | | | | | D | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12,
as applicable. | | | D | | | | | (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). | | | | | | | 0 | (z) Other:-------------------------------------- | {3}------------------------------------------------ ## **ESSEX SECURITIES LLC** ## **TABLE OF CONTENTS** | | Page No. | |---------------------------------------------------------|-------------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | FINANCIAL STATEMENT | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3
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5 | {4}------------------------------------------------ # **Ferrara CPA** Certified Public Accountant 100 Horizon Center Blvd Hamilton, NJ 08691 **Tel:** 609-865-5391 ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Director and Member Essex Securities LLC ### **Opinion on the Financial Statement** I have audited the accompanying statement of financial condition of Essex Securities LLC as of December 31, 2024, 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 Essex Securities LLC as of December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** This financial statement is the responsibility of Essex Securities LLC's management. My responsibility is to express an opinion on Essex Securities 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 Essex 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. 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. Joseph Ferrara I have served as Essex Securities LLC's auditor since 2024. Ferrara CPA Hamilton, New Jersey March 12, 2025 {5}------------------------------------------------ # **Essex Securities LLC Statement of Financial Condition December 31, 2024** ## **Assets** | Cash and cash equivalents | | 1,369,767 | |---------------------------------------|----|-----------| | Clearing deposit | | 50,172 | | Securities | | 43,382 | | Accounts receivable | | 130,991 | | Prepaid expenses | | 80,043 | | Total assets | \$ | 1,674,355 | | Liabilities and Member Equity | | | | Liabilities | | | | Accounts payable and accrued expenses | \$ | 25,357 | | Payable to Clearing Broker | | 1,011 | | Commissions payable | | 269,631 | | Total liabilities | | 295,999 | | Commitments and contigencies | | | | Member equity | | | | Member equity | | 1,378,356 | | Total member equity | | 1,378,356 | | Total liabilities and member equity | \$ | 1,674,355 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### Essex Securities LLC Notes to Financial Statement December 31, 2024 #### **NOTE 1 - DESCRIPTION OF BUSINESS** Essex 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 was organized under the laws of the State of Massachusetts on April 23, 1999 and is headquartered in Jersey City, New Jersey. The company has one member of this LLC, ES Group, Inc., which owns 100% interest in the Company. The Company acts as a broker dealer in securities transactions for its customers. The Company established a new fully-disclosed clearing broker relationship with RBC Capital Markets LLC ("RBC") on January 22, 2020 and terminated its clearing broker relationship with INTL FC Stone Financial Inc. on February 2, 2020. The company also has representatives who sell mutual funds, annuities, and alternative investments. On October 19, 2018 the Company entered a Purchase Agreement with Pinnacle Holding Company, LLC (PHC) to sell all of the membership interest of the Company to PHC. The transaction received FINRA approval under Rule 1017 application on March 1, 2019. On November 5, 2019, the Company entered a Purchase Agreement with ES Group, Inc. to sell all of the membership interest of the Company to ES Group, Inc.. The transaction received FINRA approval under Rule 1017 application on July 20, 2020. ### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### Cash and Cash Equivalents The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2024. #### Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue 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 Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Company enters into arrangements with managed accounts or other pooled investment vehicles (funds) to distribute shares to investors. The Company may receive distribution fees paid by the fund up front, over time, upon the investor's exit from the fund (that is, a contingent deferred sales charge), or as a combination thereof. The Company believes that its performance obligation is the sale of securities to investors and as such this is fulfilled on the trade date. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activities are known, which are usually monthly or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. #### Managements Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Such estimates include useful lives and valuation of property and equipment. {7}------------------------------------------------ ### Essex Securities LLC Notes to Financial Statements December 31, 2024 ### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** #### Income Taxes As a limited liability company, the Company is treated as a partnership for Federal and State income tax purposes. Accordingly, no provision for income taxes has been recorded in the accompanying statement of operations for the year ended December 31, 2024. The partnership tax returns for calendar year 2018 and prior are no longer subject to review by the taxing authorities. ### **NOTE 3 - Fair Value Measurements** The "Fair Measurements and D isclosures" topic in the FASB Accounting Standards Codification establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3), defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. FASB ASC 820 requires disclosures of the fair values of most financial instruments for which it is practicable to estimate that value. The scope of FASB ASC 820 excludes certain financial instruments such as trade receivables and payables when the carrying value approximates the fair value, employee benefit obligations and all nonfinancial instruments, such as fixed assets. The fair value o f the Company's assets and liabilities which qualify as financial instruments under FASB ASC 820 approximate the carrying amounts presented in the Statement of Financial Condition. The three levels of the fair value hierarchy under FAS 157 and its applicability to the Company are described: - Level 1 Pricing inputs are quoted prices available in active markets for identical assets or liabilities the Company has the ability to assess. As required by the FASB "Fair Value Measurements and Disclosures" topic, the Company does not adjust the quoted prices for these investments even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. - Level 2 Pricing inputs are inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly for substantially the full term through corroborations with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to those investments. - Level 3 Pricing inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity. At December 31, 2024, securities valued at \$43,382 consist entirely of two level 1 government securities. #### **NOTE 4 - DEPOSITS WITH CLEARING ORGANIZATIONS** As required by its clearing organization, a deposit of \$50,000 exists at RBC Capital Markets LLC, as shown on the Statement of Financial Condition as of December 31, 2024. {8}------------------------------------------------ ## Essex Securities LLC Notes to Financial Statements December 31, 2024 ### **NOTE 5 - NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (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, 2024, the Company had net capital of \$1,286,007, which was \$1,186,007 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital computed in accordance with Rule 15c3-1 was .23 to 1. The Company qualifies under the exemptive provisions of Rule 15c3-3 under Section (k)(2)(ii) of the Rule, as it does not carry security accounts of customers or perform custodial functions related to customer securities. #### **NOTE 7 - FACILITY LEASE** The Company leased its premises under a one-year lease that ended on September 30, 2024 and renewed the lease for one year, ending September, 2025. Rent expense was \$1,188 for the year ended December 31, 2024. The future minimum rent due for the year ending December 31, 2024 is \$892. ### **NOTE 8 - CONCENTRATIONS OF CREDIT RISK** The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each of the counterparties. The Company maintains its cash in bank accounts at high credit quality financial institutions. The balances at times may exceed federally insured limits. #### **Note 9 - Commitments and Contingencies** From time to time the Company is subject to threatened and asserted claims in the ordinary course of business. Because litigation and arbitration are subject to inherent uncertainties and the outcome of such matters cannot be predicted with certainty, future developments could cause any one or more of these matters to have a material impact on the Company's financial condition, results of operations or liquidity in any future period. #### **Note 10 – Segment Reporting** The Accounting Standards Update (ASU) 2023-07 issued by the Financial Accounting Standards Board (FASB) introduced enhancements to segment reporting requirements for public entities, including broker-dealers. The update aimed to improve the transparency and usefulness of financial disclosures for investors and other stakeholders. ASU 2023-07 disclosure requirements are effective for fiscal years starting after December 15, 2023. The Company operates as a single line of business as a securities broker-dealer, which is comprised of several classes of services, including equity and fixed income brokerage. The Company has identified its CEO as the Chief Operating Decision Maker ("CODM") as specified in ASU 2023-07, who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital, 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. {9}------------------------------------------------ ## Essex Securities LLC Notes to Financial Statements December 31, 2024 ### **Note 10 – Segment Reporting (Continued)** The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Company management reviewed the ASU 2023-07 disclosure requirements and determined that no additional disclosures are required as the Company has only a single reportable segment. ### **Note 11 – Subsequent Events** Management has evaluated events and transactions after the date of the Statement of Financial Condition through March 12, 2025, which is the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.