# ZERMATT SECURITIES, INC. X-17A-5/A (2021-04-07) — Broker-dealer annual report
- Company: ZERMATT SECURITIES, INC.
- Form: X-17A-5/A
- Filed: 2021-04-07
- Period: 2020-12-31
- Accession: 0001086916-21-000003
- CIK: 1086916
- File #: 8-51808
- Material weakness: No
- Auditor: DAVID LUNDGREN & COMPANY
- Auditor location: OLATHE, KS
- Contact: NATALIE MILLER
- Phone: 706-429-2199
- Signed by: LOUIS DWORSKY (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1086916/000108691621000003/zermattpublicrevised.pdf
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PUBLICLY AVAILABLE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
QMB APPROVAL 3235-0123 QMB Number. October 31, 2023 Expires: Estimated average burden hours per response . ... . 12.00
# ANNUAL AUDITED REPORT FORM X-17A-5 PART III
| SEC FILE NUMBER | | | |
|-----------------|--|--|--|
| 8-51808 | | | |
## FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| REPORT FOR THE PERIOD BEGINING | JANUARY 1, 2020 | AND ENDING | DECEMBER 31, 2020 |
|-------------------------------------------------------------------------------------------|--------------------------------------------------------|------------|-----------------------------|
| | MMDD/YY | | MM/DD/YY |
| | A. REGISTRANT IDENTIFICATION | | |
| NAME OF BROKER DEALER: | ZERMATT SECURITIES, LLC | | OFFICAL USE ONLY |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM ID. NO. |
| | 2813 COLLISCATE ROSSUITE 200 | | |
| | (No. and Street) | | |
| CHARLOTTE | NC | | 28211 |
| (City) | (State) | | (Zip Code) |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
NATALIE MILLER | | | 706-429-2199 |
| | | | (Area Code - Telephone No.) |
| | B. ACCOUNTANT DESIGNATION | | |
| | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | |
| | | | |
| | DAVID LUNDGREN & COMPANY | | |
| | (Name - if individual, state last, first, middle name) | | |
| 505 NORTH MUR-LEN ROAD OLATHE | | KANSAS | 66062 |
| (Address and City) | | (State) | (Zip Code) |
| CHECK ONE: | | | |
| | | | |
| [X] Certified Public Accountant | | | |
| Public Accountant
Accountant not resident in United States or any of its possessions | | | |
| | FOR OFFICIAL USE ONLY | | |
| | | | |
| | | | |
\* Claims for exemption from the reguirent that the annual audit be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2).
> Potential persons who are to respond to the collection of information contained in this form are required to respond unless the form displays a current valid OMB control number.
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## OATH OR AFFIRMATION
- (m) A copy of the SIPC Supplemental Report.
- (n) A report describing any material inadequacies found to have existed since the date of the previous audit.
\*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3).
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## **ZERMATT SECURITIES, LLC.**
**FINANCIAL STATEMENTS With Report of Registered Public Accounting Firm**
**For the Year Ended December 31, 2020**
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David B, Lundgren, MBA, CPA Catherine Lundgren mba, cpa
Telephone (913) 782-9530 FACSIMILE (913) 782-9564
## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Members of Zermatt Securities, LLC
### Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of Zermatt Securities, LLC as of December 31, 2020, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Zermatt Securities, LLC as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
### Basis for Opinion
These financial statements are the responsibility of Zermatt Securities, LLC management. Our responsibility is to express an opinion on Zermatt 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 Zermatt 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 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 that our audit provides a reasonable basis for our opinion.
We have served as Zermatt Securities LLC's auditor since 2020.
Olathe, Kansas March 25, 2021
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## **STATEMENT OF FINANCIAL CONDITION Zermatt Securities, LLC. December 31, 2020**
### **ASSETS**
| Current Assets | |
|--------------------------------------------|--------------|
| Cash | \$
24,710 |
| Accounts receivable | - |
| CRD Deposit | 1,149 |
| Prepaid Expenses | 2,275 |
| Deferred Tax Asset | 2,096 |
| Total Current Assets | 30,230 |
| Total Assets | \$
30,230 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| Current Liabilities | |
| Accounts payable and accrued liabilities | \$
5,419 |
| Income taxes payable | 51 |
| Due to Hayden Royal | 6,549 |
| Total Current Libilities | 12,019 |
| Total liabilities | \$
12,019 |
| Stockholders' Equity | |
| Common Stock | 1,000 |
| Additional Paid in Capital | 53,000 |
| Retained Earnings | 75,213 |
| Treasury Stock, at cost | (111,002) |
| Total Stockholders' Equity | 18,211 |
| Total Liabilities And Stockholders' Equity | \$
30,230 |
The accompanying notes are an integral part of these financial statements.
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## **Zermatt Securities, LLC. NOTES TO FINANCIAL STATEMENTS December 31,2020**
### **NOTE 1 ORGANIZATION AND NATURE OF BUSINESS**
The Company is a broker‐dealer firm and a member of FINRA and SIPC. The Company is a North Carolina LLC.
### **NOTE 2 SIGNIFICANT ACCOUNTING POLICIES**
**Basis of Accounting**: The Company prepares its financial statements using U.S. generally accepted accounting principles on the accrual basis.
**Use of Estimates**: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to makes estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
**Revenue Recognition:** The Company receives commissions from the purchase of certain investment products by its customers which is earned and recorded as revenue upon completion of the related transactions. This commission is credited toward the customers' advisory fee. The firm also received investment advisory fees, on an annual, quarterly, or monthly basis, for continuing management of the assets that is recorded as revenue over the period for which the services are provided. Amounts paid in advance are deferred until earned. This fee is paid directly by the customer, paid from the 12b‐1 fee of the investment vehicle, or some combination of both. The Company provides investment advisory services on a daily basis. 12b-1 fee of the investment vehicle, or some combination of both.
**Cash and Cash Equivalents**: For the purposes of cash flows, the Company considers all short‐term investments with a maturity of three months or less to be cash equivalents.
**Fair Value of Financial Instruments:** Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, Fair Value Measurement, defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. The Company's financial instruments are cash, accounts receivable, trading securities and accounts payable. The recorded values of these accounts approximate their fair values.
**Property and Equipment:** Property and equipment are stated at cost. Depreciation is provided on a straight‐line basis over the estimate useful lives of the assets.
**Advertising:** The Company follows the policy of charging the costs of advertising to expense as incurred.
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#### **Zermatt Securities, LLC. NOTES TO FINANCIAL STATEMENTS December 31, 2020**
#### **NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (Continued)**
**Income Taxes:** The amount of current or deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits, if material, are recognized in the financial statements for the changes in deferred tax liabilities or assets between years.
The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ACS 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 each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change.
#### **NOTE 3 NET CAPITAL REQUIREMENTS**
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC 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, 2020, the Company had net capital of \$12,691 which was \$7,691 in excess of its required net capital of \$5,000.
#### **NOTE 4 RELATED PARTY TRANSACTIONS**
During 2020 the Company had an expense sharing agreement ("ESA") in place with its Affiliate as it relates to rent, technology, and utilities provided by the Affiliate. The Complany's expenses, pursuant to the terms of the ESA for the year ended December 31,2020, were approximately \$10,000.
#### **NOTE 5 COMMITMENTS AND CONTINGENCIES**
There are no commitments or contingencies at December 31, 2020.
#### **NOTE 6 SUBSEQUENT EVENTS**
The Company has evaluated subsequent events through March 25th, 2021, the date which 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.