# USA FINANCIAL SECURITIES CORPORATION X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: USA FINANCIAL SECURITIES CORPORATION - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0001105608-22-000001 - CIK: 1105608 - File #: 8-52342 - Type: Broker-dealer - Material weakness: No - Auditor: Echelbarger, Himebaugh, Tamm & Co., P.C. - Auditor location: Grand Rapids, MI - Contact: William Bachert - Phone: 8884078198 - Email: wbachert@usafinancial.com - Website: usafinancial.com - Signed by: William Bachert (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1105608/000110560822000001/usafs2021public.pdf --- {0}------------------------------------------------ # USA Financial Securities Corporation Financial Statements Years Ended December 31, 2021 and 2020 {1}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-52342 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING | 01/01/21
AND ENDING | | 12/31/21 | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|------------------------------------------|------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: USA Financial Securities Corporation | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
[] Security-based swap dealer
□ Check here if respondent is also an OTC derivatives dealer | | LJ Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 6020 E Fulton Street | | | | | | | (No. and Street) | | | | | Ada | MI | | 49301 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Ada | MI | | 49301 | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------|---------------------------|--|--|--| | (City) | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | William Bachert | (888) 407-8198 | | wbachert@usafinancial.com | | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Echelbarger, Himebaugh, Tamm & Co., P.C.
(Name - if individual, state last, first, and middle name) | | | | | | | | 2301 East Paris Avenue SE Grand Rapids | | MI | 49546 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 06/25/2009 | | 3553 | | | | | | (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 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 240.17a-5(e)(1)(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 OMB control number. {2}------------------------------------------------ ### OATH OR AFFIRMATION | I William Bachert | , swear (or affirm) that, to the best of my knowledge and belief, the | | |-------------------|-----------------------------------------------------------------------|--| | | | | | financial report pertaining to the firm of USA Financial Securities Corporation | as of | | |---------------------------------------------------------------------------------|---------|--| | December 31 | , 2 021 | | | | | | 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. | ANGELA MV SCHULTZ
Notary Public, State of Michigan
County of Ottawa
My Commission Expires August 04, 2025 | | | | | | |--------------------------------------------------------------------------------------------------------------------|--|------------------------------|--|--|--| | | | Acting in the County of LEMT | | | | | 1001 10 Miler 11 18 | | | | | | Signature Title: Chief Financial Officer Notary Dublic ### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - 2 (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). - 7 (d) Statement of cash flows. - O (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - 2 (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (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. - 口 (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-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 2 (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. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 🇿 (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (t) Independent public accountant's report based on an examination of the statement of financial condition. - Q (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (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. - 🇿 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 2 (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies 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). - □ (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {3}------------------------------------------------ ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of USA Financial Securities Corporation ## Opinion on the Financial Statements We have audited the accompanying statement of financial condition of USA Financial Securities Corporation as of December 31, 2021 and 2020, the related statements of income, changes in shareholders' equity, and changes in financial condition for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of USA Financial Securities Corporation as of December 31, 2021 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion These financial statements are the responsibility of USA Financial Securities Corporation's management. Our responsibility is to express an opinion on USA Financial Securities Corporation's financial statements 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 USA Financial Securities Corporation 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 statements are 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. ### Auditor's Report on Supplemental Information The supplemental information has been subjected to audit procedures performed in conjunction with the audit of USA Financial Securities Corporation's financial statements. The supplemental information is the responsibility of USA Financial Securities Corporation's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying 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 17 C.F.R. §240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. Echelbarger, Himelsaugh, Tamm & Co., VC Echelbarger, Himebaugh, Tamm and Co. We have served as USA Financial Securities Corporation's auditor since 2003. Grand Rapids, MI February 25, 2022 {4}------------------------------------------------ ### STATEMENTS OF FINANCIAL CONDITION | Cash
S
S
Operating
1,896,757
1,553,253
Fair Fund
249,456
Receivables:
3,484,641
2,879,936
Commissions
97,010
Related parties
61,618
Representatives
19,213
19,734
Other
20,334
14,514
Firm Operating Accounts - Brokerage/Custody
291,389
140,770
Prepaid expenses
495,688
499,608
Office furniture and equipment, at cost, less accumulated
depreciation of \$166 and \$1,983, respectively
166
Clearing deposit - Pershing
25,000
25,000
8,371
CRD accounts
15,183
62,114
Right of use asset
38,933
Available-for-sale securities
38,008
S
\$
TOTAL ASSETS
5,804,027
6,132,669
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable:
\$
S
Representatives
3,259,644
2,976,855
Related party
42,682
23,316
62,337
Trade
31,634
Accrued expenses:
Leased employees - related party
183,302
117,903
Other
260,091
98,682
182,274
Note payable
172,518
Operational accounts - Pershing
4,376
Lease liability
62,114
3,487,398
Total Liabilities
3,990,330
STOCKHOLDERS' EQUITY:
Capital stock, no par value; shares authorized 60,000;
issued and outstanding 12,000
200,000
200,000
Paid-in capital
485,000
485,000
Retained earnings
1,457,339
1,631,629
Accumulated other comprehensive income
Total Stockholders' Equity
2,142,339
2,316,629
5,804,027
\$
S
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
6,132,669 | | | December 31, | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--|--------------|------|--|------| | | ASSETS | | | 2021 | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {5}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## DECEMBER 31, 2021 AND 2020 ### 1. ORGANIZATION AND NATURE OF BUSINESS USA Financial Securities Corporation (Company) is an introducing broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Michigan Corporation. ### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### BASIS OF PRESENTATION The Company is engaged in business in Michigan and multiple other states as a securities broker-dealer, which comprises several classes of services, including agency transactions with occasional principal transactions. The Company is also a Registered Investment Advisor. ### CASH AND CASH EQUIVALENTS The statement of changes in financial condition is designed to show the change in cash and cash equivalents during the year. Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to cash and are so near maturity that fluctuations in interest rates lead to insignificant risk of changes in investment value. The Company held no cash equivalents at December 31, 2021 and 2020. Substantially all cash is on deposit with two financial institutions. At various times during the year, the Company's cash in bank balances exceeds the federally insured limits. At December 31, 2021 and 2020, respectively, the Company bank balance totaled \$1,812,786 and \$1,970,111 of which \$1,323,638 and \$1,268,057 was uninsured by the Federal Deposit Insurance Corporation (FDIC). ### AVAILABLE-FOR-SALE-SECURITIES Available-for-sale securities consisting of publicly traded Real Estate Investment Trusts (REITs) are carried at market value. Realized and unrealized gains and losses on available-forsale securities are recognized in the statement of income as they occur. Cost of securities sold for the purpose of computing gains or losses is determined by the specific identification method. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures of investments in debt and equity securities that are classified as available-for-sale on a recurring basis. FASB ASC 820-10 defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure requirements for fair value measurements. Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. {6}------------------------------------------------ #### - - - ### #### (-) -\* \* -+ , #### - . .- .- -+ , /0102'3456789:;0456789<8=0;8=:5>7<80?6;4@0945@27?0?A48=45/0102&8=:8:;074;0?8?@:>612/42A/49B514<;15392C8742:;52/A25<7419152/35D/654E9B5E7<92HIB5./08:3@615G29B525;;13=F>12941?791/3:3>0:4J5913=F/4:3@7<929/277<928/32/42H IB52:;52:3>0:139:13245;:91/32B182G19B9B584/>7<928/32/42HK>612/42:221299B5 ./08:3@13854A/4013=192/?;1=:91/32HK<13=;@F9/9:;/3:=4/22 ?:212HIB5A/;;/G13=9:?;5845253929B59/9:;12:==45=:95>?@136529053984/>7<9 <:95=/4@L | |
Q5:453>5> | Q5:453>5> | |------------------------|-------------------------|-----------------| | | R5<50?54'&FSTS&

| R5<50?54'&FSTST | | U542B13=?4/J54:=5 |
VTTFSWS |
''XFY'' | | Z3274:3<5E?:25> |
&YFTX'FSW' | &'F[S'F'V[ | | Z365290539SF'[TF&W&
| SFYVWFSX' | | K;9543:916513652905392 | SVF[&S | [FX'T | | Z365290539:>612/4@ |
S'F&&TF\\W | &\F&V'FTTX | | I/9:;YTF&TTFS\Y | 'YFW\TFTS& | IB5./08:3@=5354:9529B4559@852/A:99B58/139/A2:;5/39B594:>5>:95F94:1;13=/654 9105:25:435>F:3>1365290539:>612/4@/4 B/74;@N84/O5<9A55?:25>:3>45/6549105:25:435>HP:;52E?:25>7<9:3>12?:25>/3:854<539:=5/A:3136529053984/>7<9C2<7445390:4J596:;75 :99B59105/A8749B5:2259E?:25>8/491/3/A1365290539 :>612/4@/3:854<539:=5/A9B5<7445390:4J596:;75/A <;15392C1365290539B/;>13=2135;1=1?;5:22592F:3>1245>7413=9B58541/>>7413=GB1HIB5B/74;@N84/O5<98/491/3/A9B51365290539 :>612/4@/;;:4:0/739?1;;5>?@9B5B/74/4:2:9/9:;84/O5<9A55:3> 45>7413=9B58541/>>7413=GB1HK294:1;13= :2259E?:25>/39B50:4J596:;75/A<;15392C1365290539B/;>13=2F9B12 6:41:?;554:91/3127391;9B50:4J596:;7512>5954013:?;5H {8}------------------------------------------------ #### - - - ### #### (-) -\* \* -+ , | | F/8;/5>/> | F/8;/5>/> | |--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|-------------------------------------------| | | G/C/A9/;H&?IJI& | G/C/A9/;H&?IJIJ
| |
K82/<=98E | | | |
L/;<.4569;1M/;86/ | NJJ?IOI | HHP?'HH
| |
Q5 | O?ONI?RRI | O?N'P?NNH
| |
Q5@/<7A/57C1A:85B | RP&?OOJ | RPH?SNI
| |
T27/;5874@/45@/<7A/57< | IN?S&I | S?PHJ
| |
-1782<82/<=98
| R?JSJ?N&O | S?SPJ?OOR
| |

-;842456E | |
| |
Q5@/<7A/57C1A:85B | &?'SR?NJ& | &?NOI?N'J
| | | | S?&SH?RJ' | | -17827;842456 | R?P&R?RRI | R?SHO?H''
| |
| | | | | | | | | | | |
-178245@/<7A/578>@4<1;B | IH?&&J?RRO | &R?&NH?JJP
| | | | H'?ORJ?JI& | | Q5

Q5@/<7A/578>@4<1;BE
T<
U1D;2BV:;1W/C7

-1782C1AA4<<41545C1A/
| S?''J?HR&
II?SP'?HOH
H&O?NIH


'J?&JJ?IR' |
&S?RNS?SRP

IPN?IIJ


| ### - - !"#\$%!" &' -./Z1A:85BA8B/57/;45718;;856/A/57<347.A8586/>8CC1D57<1;17./;:112/>45@/<7A/57@/.4C2/< \_0D5><`71>4<7;49D7/<.8;/<7145@/<71;<[-./Z1A:85BA8B;/C/4@/>4<7;49D74150//<:84>9B7./0D5> D:0;157?1@/;74A/?D:157./45@/<71;a\_7.874/0/;;/><82/8<157./7;8>/>87/[T5B04b/>8A1D57<8;/ ;/C1654c/>157./7;8>/>87/85>@8;4892/8A1D57<8;/;/C1654c/>717.//b7/57474<:;19892/7.878 <465404C857;/@/5D/;/@/;<8234225171CCD;15C/7./D5C/;78457B4<;/<12@/>[Y1;@8;4892/8A1D57/:/5>/57157./@82D/107./<.8;/<870D7D;/:1457<4574A/8<3/228<7./2/567. {9}------------------------------------------------ #### - - - ### #### (-) -\* \* -+ , -./012/3204526/-7721804604/32.94:;<-/3-.=30>387230?3@A696>2B/0<@2/-.8>/-76-9/60:2/32 C-1B84AD604.@924>2;/32C-1B84A:-264-/<2@0252/38/0/>84-527>-12/306>-46/7804/94/0@/32 187E2/58@92-./32.94:84:/3204526/-78>/050/026872E4-=4;=30>38729698@@A1-4/3@A-7F987/27@AG H06/70<9/0-4.22672>-?40I2:04/32>97724/B270-:872B701870@A72@8/2:/-B27.-7184>2-<@0?8/0-46/38/ 3852<22468/06.02:04B70-7B270-:6G ### -\* J32C-1B84A81-7/0I26/32>-6/-.84498@K0484>08@L4:96/7AM2?9@8/-7AN9/3-70/AOKLPMNQ@0>24604? -527/32B270-:-.<242.0/=30>3=86/=2@521-4/36.-7RSR&84:RSRSG ### ) T H2B72>08/0-4.-7.0484>08@6/8/2124/B97B-62606>-1B9/2:9604?/326/780?3/U@04212/3-:;<862:-4 26/018/2:962.9@@0526-./328662/6=30>3;046-12046/84>26;18A<2?728/27/384/32@05268@@-=2: .-7/8VB97B-626GK-704>-12/8VB97B-626;8662/6872:2B72>08/2:9604?/326/780?3/U@04212/3-:84: /32W-:0.02:N>>2@278/2:C-6/M2>-527AXA6/21OWNCMXQGH2B72>08/0-42VB2462/-/8@2:Y&ZZ84: Y&;[\];726B2>/052@A.-7/32A287624:2:H2>21<27]&;RSR&84:RSRSG ### - ^ X-./=87206<204?81-7/0I2:-527/3722A28769604?/326/780?3/U@04212/3-:GN@@6-./=872>-6/6=272 .9@@A81-7/0I2:86-.H2>21<27]&;RSR&84:RSRSG ### \_ -\* - - N:527/0604?>-6/6872>387?2:/-2VB24628604>9772:GN:527/0604?2VB2462>387?2:/--B278/0-46 ### a - /-/8@2:YR\S;\]\84:YR`&;Z'\.-7/32A287624:2:H2>21<27]&;RSR&84:RSRS;726B2>/052@AG P-.2:278@04>-12/8V263852<224B7-50:2:<2>8962/32>-7B-78/0-4-B278/268684XC-7B-78/0-4G b4:27/306B7-5060-4-./32L4/2748@M252492C-:2;/32638723-@:27604>@9:2/32C-1B84AD6287404?6 O@-6626Q-4/320704:050:98@/8V72/9746Gc-=2527;/32C-1B84A0669//-5870-966/8/2/8V26G L4>-12/8VB-60/0-46/8E24-?40I2:84:1286972:94:2781-72U@0E2@AU/384U 4-/69>>266/37263-@:GW848?2124/386258@98/2:/32C-1B84AD65870-96/8VB-60/0-4694:27/306 >70/2708.-772>-?40/0-4;:272>-?40/0-4;84:1286972124/04/3262.0484>08@6/8/2124/6G !"#\$%!" &' J32C-1B84A.0@2604>-12/8V72/974604bGXG.2:278@84:625278@6/8/2d9706:0>/0-46Ge0/3.2= 2V>2B/0-46;/32C-1B84A064-@-4?2769//-bGXG.2:278@/8V2V81048/0-46.-7A2876<2.-72RS&\ 84:6/8/2/8V2V81048/0-46.-7A2876<2.-72RS&`G {10}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## DECEMBER 31, 2021 AND 2020 ## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Company accrues interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended December 31, 2021 and 2020, the Company accrued interest or penalties relating to unrecognized tax benefits in the amount of \$0 for each year. ## MANAGEMENT ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles issued by United States of America Financial Accounting Standards Board (GAAP) 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ## OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK Credit risk represents the maximum potential loss that the Company would incur if the counterparties failed to perform pursuant to the terms of their agreements with the Company. In the normal course of business, the Company facilitates the execution of securities transactions on behalf of customers as an agent. If the agency transactions do not settle because of failure to perform by either the customer or the counterparty, the Company may be obligated to discharge the obligation of the nonperforming party and, as a result, may incur a loss if the market value of the securities differs from the contract amount. The Company is also subject to credit risk to the extent that the Company's clearing broker may be unable to fulfill its obligations either to return the Company's securities held as deposits or repay net commission owed. The Company's policy is to monitor its market exposure and counterparty risk. The Company maintains insurance to mitigate their risk. ## RELATED PARTIES The Company is a wholly-owned subsidiary of USA Financial Corporation. The Company has transactions with USA Financial Corporation and its other subsidiaries: USA Financial Team Corporation, USA Financial Insurance Services Corporation, USA Financial Formulas Corporation, USA Financial Marketing Corporation, USA Financial Exchange Corporation, and USA Financial Protocol Corporation. In addition, the Company has transactions with another related party, USA Financial Equity, LLC. Please see Note 8 for additional related party information. {11}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## DECEMBER 31, 2021 AND 2020 ## 3. AVAILABLE-FOR-SALE SECURITIES Marketable securities have been classified according to management's intent. Available-for-sale securities at December 31, 2021 are summarized as follows: | | | Cost | | Estimated
Market Value | | Gross
Unrealized
Gains (Losses) | | |-----------------------------------------------------------------------------------------------------------------------|---|------------------------------------|---|------------------------------------|---|--------------------------------------------|--| | InvenTrust Properties Corp.
Xenia Hotels & Resorts, Inc.
American Finance Trust, Inc.
Healthcare Trust, Inc. | ഗ | 6.196
4,554
30.905
29.965 | の | 4.226
3,495
12,134
19.078 | S | (1,970)
(1,059)
(18,771)
(10.887) | | | | | 71,620 | | 38,933 | | (32,687) | | Available-for-sale securities at December 31, 2020 are summarized as follows: | | | Cost | | Estimated
Market Value | | Ol USB
Unrealized
Gains (Losses) | | |------------------------------|---|--------|---|---------------------------|---|----------------------------------------|--| | InvenTrust Properties Corp. | ഗ | 6,196 | ર | 4,477 | n | (1,719) | | | Xenia Hotels & Resorts, Inc. | | 4.554 | | 2,934 | | (1,620) | | | American Finance Trust, Inc. | | 30,905 | | 9.874 | | (21,031) | | | Healthcare Trust, Inc. | | 29,965 | | 20,723 | | (9,242) | | | | | 71,620 | D | 38,008 | | (33,612) | | The Company's investments are measured using Level 2 inputs (third party secondary market report commonly used within the Company's industry). ### 4. DEPOSIT WITH CLEARING BROKER The Company is required to maintain a collateral account with its clearing broker with a minimum market value of \$25,000. ## 5. NOTE PAYABLE The Company has an unsecured short term note payable to finance its errors and omissions insurance. The note requires monthly payments of \$26,488 including interest at 5.15% and matures in August 2022. As of December 31, 2020, the note required monthly payments of \$25,141 including interest at 6.00% and had a maturity date of August 2021. There were no covenants related to this note payable as of December 31, 2021 and 2020. Croce {12}------------------------------------------------ #### - - - ### ### () \* - +,-./01234567-82829:27656-;<:=>,21?-@<<:=86;62@4/523<./@1/@2?6/323;@->/@;8>-@?2638?2?- ?2A-A1-38-88-12@2?-5@/06?812@-3?BC@/D686/35/@63>/0-?2A-8>/3868?8/5?,-5/77/E63FG |
| | H/@4-2@8-3;-;I->-0=-@J&K | | | |-------------|------|--------------------------|----------------|--| | | LML& | | LMLM | | | N?,-@8?2?-8 | | | OJJKPQ&OLLKRMP | |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`&YKE,6>,@-a:6@-8?,- ./01234?/0263?26306360:03-?>216?27/53/?7-88?,23OPMKMMM23;@-a:6@-8?,2??,-@2?6//5 2FF@-F2?-63;-=?-;3-88?/3-?>216?27K=/?,28;-563-;K8,2773/?-A>--;&P?/&X23;?,-@:7-/5?, b21176>2=7-c-A>,23F-278/1@/D6;-8?,2?-a:6?4>216?270243/?=-E6?,;@2E3/@>28,;6D6;-3;8126; 65?,-@-8:7?63F3-?>216?27@2?6/E/:7;-A>--;&M?/&YBd?I->-0=-@J&KLML&K?,-./01234,2;3-? >216?27/5O&K&JeK'RPE,6>,E28O'fMK'fJ63-A>-88/5?,-@-a:6@-;3-?>216?27/5OLeeKMLLK23;?,- ./01234S82FF@-F2?-63;-=?-;3-88?/3-?>216?27@2?6/E28JBP&?/&Bd?I->-0=-@J&KLMLMK?,- ./01234,2;3-?>216?27/5O&KQJJKfPPE,6>,E28O&KLM&KLeL63-A>-88/5?,-@-a:6@-;3-?>216?27/5 OLJLKQRJK23;?,-./01234S82FF@-F2?-63;-=?-;3-88?/3-?>216?27@2?6/E28LBQJ?/&B ### g) h - - +,-./01234@-60=:@8-8]627W38:@23>-<-@D6>-8./@1/@2?6/3/320/3?,74=28685/@>/8?8 126;/3?,-./01234S8=-,275B+,-:3126;1/@?6/3/5?,-8--A1-38-863>7:;-;632>>/:3?81242=7-68 OM23;OM2?I->-0=-@J&KLML&23;LMLMK@-81->?6D-74B+/?27-A1-38-8@-60=:@8-;5/@?,-4-2@-3;-; I->-0=-@J&KLML&23;LMLME-@-OJ'KJRP23;O&J'KQ&JK@-81->?6D-74B d;;6?6/32774K?,-./01234,282@-D-3:-8,2@63F2F@--0-3?E6?,]627W38:@23>-<-@D6>-8 ./@1/@2?6/3B+,-@-D-3:-8,2@63F2F@--0-3?F-3-@2?-;OPQQK&eQ23;OQQQKQPM/5?,-./01234S8 @-D-3:-85/@?,-4-2@8-3;-;I->-0=-@J&KLML&23;LMLMK@-81->?6D-74B+,-:3126;1/@?6/3/5?,68 63>/0-63>7:;-;632>>/:3?8@->-6D2=7-68OeLKQeR23;OLfKRef2?I->-0=-@J&KLML&23;LMLMK @-81->?6D-74B !"#\$%!" &' +,-./01234@-60=:@8-8]627./@1/@2?6/3XC2@-3?./01234Y/320/3?,74=28685/@>/8?8126; /3?,-./01234S8=-,275B+,-:3126;1/@?6/3/5?,-8--A1-38-863>7:;-;632>>/:3?81242=7-2?4-2@ -3;68OJJKMRR23;OeLL5/@?,-4-2@-3;-;I->-0=-@J&KLML&23;LMLMK@-81->?6D-74B+/?27-A1-38-8 {13}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## DECEMBER 31, 2021 AND 2020 ## 8. RELATED PARTY TRANSACTIONS (CONTINUED) reimbursed for the year ended December 31, 2021 and 2020 was \$372,856 and \$325,431, respectively. In addition to reimbursed expenses, the Company paid Parent Company \$198,000 in management fees for the years ended December 31, 2021 and 2020, respectively. The Company engages in business with USA Financial Formulas Corporation. The revenue generated from this business totaled \$901,379 and \$1,448,721 for the years ended December 31, 2021 and 2020, respectively. The unpaid portion of this income included in accounts receivables - commissions at year end is \$67,331 and \$85,986 at December 31, 2021 and 2020, respectively. Total fees expensed by the Company to USA Financial Formulas Corporation for account management was \$86,625 and \$159,156 for the years ended December 31, 2021 and 2020, respectively. The unpaid portion of these expenses included in accounts payable at December 31, 2021 and 2020 is \$7,245 and \$7,658, respectively, The Company engages in business with USA Financial Exchange Corporation. The revenue generated from this business totaled \$14,229,460 and \$9,065,912 for the years ended December 31, 2021 and 2020, respectively. The unpaid portion of this income included in accounts receivables - commissions at year end is \$1,346,367 and \$961,191 at December 31, 2021 and 2020, respectively. The Company receives advertising and marketing support services from USA Financial Marketing Corporation. A total of \$36,000 and \$36,000 was charged to expense under this agreement for the years ended December 31, 2021 and 2020, respectively, the Company reimburses USA Financial Marketing Corporation on a monthly basis for costs paid on the Company's behalf. Total expenses reimbursed for the years ended December 31, 2021 and 2020 were \$458,183 and \$259,994 respectively. The unpaid portion of the support services and/or these expenses included in accounts payable is \$5,025 and \$353 at December 31, 2021 and 2020, respectively. Additionally, the Company receives reimbursement from USA Financial Marketing Corporation for certain representative fees and technology costs incurred by the Company. Total expense reimbursement totaled \$406,330 and \$400,813 for years ended December 31, 2021 and 2020, respectively. The total expense reimbursement in accounts receivable is \$34,541 and \$33,651 at December 31, 2021 and 2020, respectively. The Company rents office space on a month-to-month basis from USA Financial Equity, LLC. A total of \$181,425 and \$172,200 was charged to expense under this agreement during the years ended December 31, 2021 and 2020, respectively. The Company leases the majority of its employees from USA Financial Team Corporation. The payments made to this Company are for payroll related expenses, management fees, and a 401k plan for all eligible employees. Total payments made to this related party for the year ended December 31, 2021 and 2020 were \$2,064,329 and \$1,890,066, respectively. Accrued leased employee expense totaled \$183,302 and \$117,903 at December 31, 2021 and 2020, respectively. The unpaid portion of this other leased employee expenses included in accounts payable is \$1,743 and \$1,482 at December 31, 2021 and 2020, respectively. {14}------------------------------------------------ #### - - - ### #### () \* - -+ , -./01232413567898485:87;8739182;78<1=>?@A?12>??482?A5912B?>7<14>?829C>:8D;32EF?@>C35GH087 9C>E>37?>2=>=I>4>D@>7JKL&'&K32=&'&'L98935>M;>2?>?7>1D@A7?>=N>7>O'32=O&LPQ'HR82>8G 9C>?>>M;>2?>?N>7>1245A=>=123448A29?;3E3@5>39I>4>D@>7JKL&'&K32=&'&'H .><>7357>;7>?>29391<>?8G9C>:8D;32E37>>19C>78N2>7?8G9C>:8D;32E87>D;58E>>?8G-./ 012324135S>3D:87;8739182HSC>?>7>539>=7>;7>?>29391<>?B>2>739>=OK'PLKQT32=OKKQLU&T12 7><>2A>=A712B9C>E>37?>2=>=I>4>D@>7JKL&'&K32=&'&'L7>?;>491<>5EHVG9C1?7><>2A>L9C> 3D8A29A24855>49>=32=1245A=>=1248DD1??182?7>4>1<3@5>98935>=OWLJJQ32=OXL&JX39I>4>D@>7 JKL&'&K32=&'&'L7>?;>491<>5EH/;8791828G9C>7><>2A>B>2>739>=N3?;31=989C>?>7>;7>?>29391<>? 32=>M;>2?>=3?48DD1??182>M;>2?>H | 3D8A29A24855>49>=32=1245A=>=1248DD1??182?7>4>1<3@5>98935>=OWLJJQ32=OXL&JX39I>4>D@>7
JKL&'&K32=&'&'L7>?;>491<>5EH/;8791828G9C>7><>2A>B>2>739>=N3?;31=989C>?>7>;7>?>29391<>?
32=>M;>2?>=3?48DD1??182>M;>2?>H | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--|----------| |
:8DD1??182>M;>2?>;31=987>539>=;3791>?1??ADD371Y>=3?G8558N?Z | | | | |
| 087E>37?>2=>=I>4>D@>7JKL | | | | | &'&K | | &'&' | | [>539>=7>;7>?>29391<>48DD1??182>M;>2?> | OWULJWT | | OK''LPXW | |

VG9C>989354C37B>=9848DD1??182>M;>2?>L9C>7>N3?OXLQQW32=OTLWPJ=A>989C>?>7>;7>?>29391<>?
39I>4>D@>7JKL&'&K32=&'&'L7>?;>491<>5EH
| | | | | \)
]


| | | | |
SC>:8D;32EC3?<3718A?8;>73912B5>3?>?>M;1712B39<3718A?=39>?H^8?98G9C>5>3?>?4829312 | | | | ### \) ] - - 39I>4>D@>7JKL&'&K32=&'&'L7>?;>491<>5EH SC>:8D;32EC3?<3718A?8;>73912B5>3?>?>M;1712B39<3718A?=39>?H^8?98G9C>5>3?>?4829312 3A98D39147>2>N358;9182?8G82>\_E>37;>718=?A25>??28914>8G4324>55391821?;78<1=>=@E9C> :8D;32EHSC>:8D;32EC3?>5>49>=9C>?C879\_9>7D5>3?>7>48B219182>M>D;9182G87355 3;;5143@5>8;>73912B`>3?>?H`>3?>?N19C3212191359>7D8GK&D829C?875>??L9C39=8289 1245A=>328;918298;A74C3?>9C>A2=>75E12B3??>99C39N>37>7>3?823@5E4>7931298>M>741?>L 37>2897>487=>=829C>@35324>?C>>9H/?8GI>4>D@>7JKL&'&'<3718A?5>3?>?N>7>129C>17 G12359C7>>\_E>377>2>N35;>718=?H0879C>E>37>2=>=I>4>D@>7JKL&'&K9C>7>N>7>285>3?>? N19C7>D31212B8712191359>7D?12>M4>??8GK&D829C?H.8D>8G9C>5>3?>?C3<>3D121DAD ;3ED>2932=a8737>482912B>2982A?>7?32=89C>7<3713@5>?L9C>?>;3ED>29?37>>M;>2?>=3? 124A77>=HS89357>2935>M;>2?>N3?OTJTLQUW32=OT'TLWX'G879C>E>37?>2=>=I>4>D@>7JKL &'&K32=&'&'L7>?;>491<>5EH 0879C>E>37>2=>=I>4>D@>7JKL&'&K32=&'&'L9C>:8D;32EF?7><>2A>?N>7>?A@?93291355EG78D9N8 ### )b - !"#\$%!" &' ;78=A499E;>?NC14C3448A29>=G873;;78M1D39>5EW&c32=WKc8G7><>2A>?L7>?;>491<>5EH {15}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## DECEMBER 31, 2021 AND 2020 ## 11. RISKS AND UNCERTAINTIES On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recomment and mitigation measures worldwide. COVID-19 continues to spread throughout the U.S. and the world and compliance with the various containment measures implemented by governmental authorities has impacted the Company's business, as well as the businesses of its customers, suppliers and other counterparties, and this impact could last for an indefinite period of time. There are no comparable recents that provide guidance as to the effect of the spread of COVID-19 as a global pandemic, and as a result, the Company is unable to predict the full impact that COVID-19 will have on its results from operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration and severity of the pandemic and containment measures. ## 12. FAIR FUND Pursuant to the terms of a settlement order with the U.S. Securities and Exchange Commission and in exchange for a full and final release of claims, the Company deposited, on August 23, 2021, \$249,456, into a "Fair Fund" as described in Section 308(a) of the Sarbanes-Oxley Act of 2002, which also qualifies as a qualified settlement fund established under Section 468B of the Internal Revenue Code of 1986 as amended, and Treasury Regulations § 1.468B-1 et seq. The Company is the administrator of the Fair Fund. The Fair Fund is a separate taxpayer and will file its own tax return. The balance in the Fair Fund, as of December 31, 2021, was \$249,456, which amount is subject to claims. The Fair Fund balance is recorded in the Statements of Financial Condition and is included in both Cash and Other Accrued Expenses. ## 13. CONTINGENCIES The Company is involved in litigation arising in the ordinary course of business. There is one outstanding claim for which the company is potentially liable. The matter is in the early stages of investigation and document discovery and the amount of liability, if any, cannot be determined with certainty. Due to the uncertainty, management does not express an opinion as to the likely outcome of the matters which is neither probable nor remote. ### 14. SUBSEQUENT EVENTS In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through February 25, 2022, 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.